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GREGORIO R. CASTILLO v. SANDIGANBAYAN

FACTS:

Petitioner Gregorio R. Castillo filed a petition for certiorari to annul the Resolutions of the Sandiganbayan denying his motion to dismiss a complaint filed by the Republic of the Philippines. The complaint sought various forms of relief, including reconveyance, reversion, accounting, restitution, and damages. The Republic alleged that Castillo acted as a dummy, nominee, and/or agent of several defendants, including Ferdinand and Imelda Marcos, in establishing Hotel Properties Inc. to acquire beneficial interest and control of Silahis International Hotel while concealing ownership. The case was filed in 1987, and an expanded complaint was subsequently filed, which included allegations of Castillo and other defendants acquiring the controlling interest in Silahis International Hotel through the purchase of stocks from the Development Bank of the Philippines. Castillo denied knowledge or participation in the wrongful acts of other defendants. After filing an answer and a counterclaim, Castillo passed away in 1992. His counsel filed a motion to dismiss, arguing that the complaint did not survive his death as it sought recovery of money, debt, or interest. The Sandiganbayan denied the motion, stating that the cause of action included claims for recovery of real and personal property and damages for tortuous misconduct. Castillo's heirs later filed another motion to dismiss based on lawyer-client confidentiality privilege, which was also denied by the Sandiganbayan.

ISSUES:

  1. Whether the complaint against petitioner survives his death.

  2. Whether the lawyer-client confidentiality privilege applies to dismiss the complaint against petitioner.

RULING:

  1. The cause of action against petitioner does not abate upon his death. The complaint is not only for recovery of money, debt, or interest, but also for recovery of real and personal property and includes a claim for damages for tortuous misconduct.

  2. The lawyer-client confidentiality privilege does not apply to dismiss the complaint against petitioner. Petitioner is being sued as a principal defendant in conspiracy with other defendants in the commission of the acts complained of.

PRINCIPLES:

  • A complaint that is not only for recovery of money, debt, or interest, but also for recovery of real and personal property, and includes a claim for damages for tortuous misconduct, does not abate upon the death of the defendant.

  • The lawyer-client confidentiality privilege does not apply to dismiss a complaint if the defendant is being sued as a principal defendant in conspiracy with other defendants in the commission of the acts complained of.