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CARMELO F. LAZATIN v. ANIANO A. DESIERTO AS OMBUDSMAN

FACTS:

The Fact-Finding and Intelligence Bureau of the Office of the Ombudsman filed a Complaint-Affidavit charging the petitioners with Illegal Use of Public Funds and violation of Republic Act No. 3019. The complaint alleged irregularities in the use of Congressman Lazatin's Countrywide Development Fund (CDF) for the year 1996. Preliminary investigation was conducted and a Resolution recommending the filing of criminal charges was approved by the Ombudsman. Informations for the criminal cases were filed against the petitioners before the Sandiganbayan. The petitioners filed Motions for Reconsideration/Reinvestigation, which were granted by the Sandiganbayan. The Office of the Special Prosecutor submitted a resolution recommending the dismissal of the cases for lack of evidence, but the Ombudsman disapproved the resolution and ordered the prosecution to proceed. The petitioners filed a petition for certiorari challenging the Ombudsman's disapproval.

ISSUES:

  1. Whether the inclusion of the Office of the Special Prosecutor (OSP) under the Office of the Ombudsman in Section 3 of R.A. No. 6770 is constitutional.

  2. Whether the principle of stare decisis should be set aside and the Court's ruling on the constitutionality of R.A. No. 6770 revisited.

  3. Whether the doctrine of stare decisis should be applied to this case.

  4. Whether the Ombudsman's disapproval of the OSP Resolution was based on misapprehension of facts, speculations, surmises, and conjectures.

  5. Whether or not the auction sale conducted by the BIR was valid.

  6. Whether or not the auction purchaser is entitled to the possession of the properties sold.

RULING:

  1. The inclusion of the OSP under the Office of the Ombudsman in Section 3 of R.A. No. 6770 is constitutional. Congress has the power to place the OSP under the Office of the Ombudsman and to remove or grant additional powers to the OSP, as long as it does not go beyond the powers conferred by the Constitution on the Office of the Ombudsman.

  2. The principle of stare decisis should be upheld. The doctrine of stare decisis requires adherence to judicial precedents and is embodied in the Civil Code of the Philippines. Once a question of law has been examined and decided by the Supreme Court, it should be deemed settled and closed to further argument, promoting certainty and stability in judicial decisions.

  3. The Court held that the doctrine of stare decisis should be applied to this case. The petitioners failed to show any strong or compelling reason to justify setting aside the doctrine. The Court emphasized that the doctrine of stare decisis is important in maintaining predictability and the public's confidence in the stability of court decisions.

  4. The Court ruled that the Ombudsman's disapproval of the OSP Resolution, based on a finding of probable cause, is not a jurisdictional error. According to the Court, certiorari is only intended to correct errors of jurisdiction, not errors of judgment. The Court stated that the Ombudsman's finding of probable cause involves an error of judgment, which is not a ground for certiorari.

  5. The auction sale conducted by the BIR was valid. The law clearly provides that the Commissioner of Internal Revenue has the authority to collect all national internal revenue taxes, which includes the power to sell properties levied upon to satisfy the taxpayer's outstanding liability. In this case, the taxpayer failed to settle the assessed deficiency taxes, hence the BIR properly conducted the auction sale to satisfy the tax obligation.

  6. The auction purchaser is entitled to the possession of the properties sold. The Supreme Court held that once the auction sale of properties is made in accordance with law and the rules on public auctions, the purchaser acquires a vested right over the property sold, and the transfer of ownership becomes absolute upon full payment of the purchase price. As such, the auction purchaser is entitled to the possession and enjoyment of the properties sold.

PRINCIPLES:

  • Congress has the power to place the OSP under the Office of the Ombudsman and to grant or remove powers from the OSP, as long as it does not go beyond the powers conferred by the Constitution on the Office of the Ombudsman.

  • The doctrine of stare decisis requires adherence to judicial precedents and promotes certainty and stability in judicial decisions. Once a question of law has been examined and decided, it should be deemed settled and closed to further argument.

  • Stare Decisis: The Court emphasized the significance of the doctrine of stare decisis in maintaining predictability and the public's confidence in the stability of court decisions. It stated that the doctrine can only be abandoned based on strong and compelling reasons.

  • Certiorari: Certiorari is a remedy that corrects errors of jurisdiction, not errors of judgment. It does not include an inquiry into the correctness of the evaluation or weight of evidence. An error of judgment is one that the court may commit within its jurisdiction.

  • Ombudsman's Independence: The Ombudsman has wide latitude in exercising investigatory and prosecutory powers and is free from intervention from the three branches of government. The Court does not interfere with the Ombudsman's exercise of powers as long as these rulings are supported by substantial evidence.

  • Grave Abuse of Discretion: To overturn the Ombudsman's finding of probable cause, it is necessary to prove that the official acted with grave abuse of discretion, which implies a capricious and whimsical exercise of judgment tantamount to lack of jurisdiction.

  • The Commissioner of Internal Revenue has the authority to sell properties levied upon to satisfy the taxpayer's outstanding tax liability.

  • The auction sale of properties conducted in accordance with law and the rules on public auctions gives the purchaser a vested right over the property sold.

  • The transfer of ownership of the properties sold in an auction sale becomes absolute upon full payment of the purchase price.