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DANTE V. LIBAN v. RICHARD J. GORDON

FACTS:

Petitioners, who are officers of the Board of Directors of the Quezon City Red Cross Chapter, filed a Petition to Declare Senator Richard J. Gordon as Having Forfeited His Seat in the Senate. They allege that by accepting the chairmanship of the Philippine National Red Cross (PNRC) Board of Governors, Senator Gordon has forfeited his seat in the Senate as provided in Section 13, Article VI of the Constitution. Petitioners argue that the PNRC is a government-owned or controlled corporation and therefore, Senator Gordon's acceptance of the chairmanship of the PNRC Board of Governors violates the constitutional prohibition on holding another office or employment in the government during his term in the Senate. Senator Gordon, on the other hand, asserts that the PNRC is not a government-owned or controlled corporation and that his service as Chairman of the PNRC Board of Governors does not constitute holding another office or employment in the government.

ISSUES:

  1. Whether the Philippine National Red Cross (PNRC) is a government-owned or controlled corporation.

  2. Whether Section 13, Article VI of the Philippine Constitution applies to the case of respondent who is Chairman of the PNRC and at the same time a Member of the Senate.

  3. Whether respondent should be automatically removed as a Senator pursuant to Section 13, Article VI of the Philippine Constitution.

  4. Whether petitioners may legally institute this petition against respondent.

RULING:

  1. The office of the Chairman of the PNRC is not a government office or an office in a government-owned or controlled corporation for purposes of the prohibition in Section 13, Article VI of the 1987 Constitution.

  2. Petitioners have no standing to file the petition as it constitutes an action for quo warranto, which only the government or an individual claiming entitlement to the office can file.

  3. The PNRC Charter, insofar as it creates the PNRC as a private corporation, is void for being unconstitutional because it violates the constitutional prohibition against the creation of private corporations by special law.

PRINCIPLES:

  • Quo Warranto An action challenging a person's right to hold a public office, which typically must be initiated by the government or an individual who claims entitlement to the office.

  • Standing Legal standing is required to file a petition and typically requires that the petitioner must have a direct, personal interest in the controversy.

  • Autonomy and Independence of the PNRC The PNRC must maintain autonomy from the government to be perceived as neutral and independent, especially in conflict situations.

  • Government-Owned or Controlled Corporation (GOCC) For an entity to be considered a GOCC, it must be either wholly owned by the government or, in the case of a stock corporation, at least 51% of the stock must be government-owned.

  • Constitutional Prohibition on Special Laws Creating Private Corporations The Constitution prohibits the creation of private corporations by special law. Private corporations must be created under a general law, such as the Corporation Code.

  • Effects of an Unconstitutional Law Portions of a statute creating an unconstitutional private corporation by special charter are void; however, sections implementing treaty obligations can remain valid.