Republic of the Philippines SUPREME COURT Manila EN BANC G.R. No. 94723 August 21, 1997 KAREN E.

SALVACION, m !o", t#"u $%&%" 'o N. S()*(' o!, +"., ,(t#%" (!& N(tu"() Gu("& (!, (!& S-ous%s $E.ERICO N. SALVACION, +R., (!& EVELINA E. SALVACION, petitioners, vs. CENTRAL /ANK O$ T0E P0ILIPPINES, C0INA /ANKING CORPORATION (!& GREG /ARTELLI 1 NORT0COTT, respondents. TORRES, +R., J.: In our predisposition to discover the "original intent" of a statute, courts beco e the unfeeling pillars of the status quo. !igle do "e reali#e that statutes or even constitutions are bundles of co pro ises thro"n our "a$ b$ their fra ers. %nless "e e&ercise vigilance, the statute a$ alread$ be out of tune and irrelevant to our da$. 'he petition is for declarator$ relief. It pra$s for the follo"ing reliefs( a.) I ediatel$ upon the filing of this petition, an *rder be issued restraining the respondents fro appl$ing and enforcing +ection ,,- of Central Ban. Circular No. /012 b.) After hearing, 3udg ent be rendered( ,.) 4eclaring the respective rights and duties of petitioners and respondents2 5.) Ad3udging +ection ,,- of Central Ban. Circular No. /01 as contrar$ to the provisions of the Constitution, hence void2 because its provision that "6oreign currenc$ deposits shall be e&e pt fro attach ent, garnish ent, or an$ other order or process of an$ court, legislative bod$, govern ent agenc$ or an$ ad inistrative bod$ "hatsoever i.) has ta.en a"a$ the right of petitioners to have the ban. deposit of defendant 7reg Bartelli $ Northcott garnished to satisf$ the 3udg ent rendered in petitioners8 favor in violation of substantive due process guaranteed b$ the Constitution2 ii.) has given foreign currenc$ depositors an undue favor or a class privilege in violation of the e9ual protection clause of the Constitution2 iii.) has provided a safe haven for cri inals li.e the herein respondent 7reg Bartelli $ Northcott since cri inals could escape civil liabilit$ for their "rongful acts b$ erel$ converting their one$ to a foreign currenc$ and depositing it in a foreign currenc$ deposit account "ith an authori#ed ban.. 'he antecedent facts( *n 6ebruar$ :, ,/;/, 7reg Bartelli $ Northcott, an A erican tourist, coa&ed and lured petitioner <aren +alvacion, then ,5 $ears old to go "ith hi to his apart ent. 'herein, 7reg Bartelli detained <aren +alvacion for four da$s, or up to 6ebruar$ =, ,/;/ and "as able to rape the child once on 6ebruar$ :, and three ti es each da$ on 6ebruar$ >, 0, and =, ,/;/. *n 6ebruar$ =, ,/;/, after police en and people living nearb$, rescued <aren, 7reg Bartelli "as arrested and detained at the Ma.ati Municipal ?ail. 'he police en recovered fro Bartelli the follo"ing ite s( ,.) 4ollar Chec. No. -0;, Control No. 15,1110=;@,,00,,,-1-, %+ -,/1-.512 5.) C*C*BAN< Ban. Boo. No. ,1:@,1;=>;@; APeso Acct.)2 -.) 4ollar Account B China Ban.ing Corp., %+CDAE>:,1>15;@52 :.) I4@,55@-1@;;==2 >.) Philippine Mone$ AP5-:.11) cash2 0.) 4oor <e$s 0 pieces2 =.) +tuffed 4oll A'edd$ Bear) used in seducing the co plainant. *n 6ebruar$ ,0, ,/;/, Ma.ati Investigating 6iscal Ed"in 7. Conda$a filed against 7reg Bartelli, Cri inal Case No. ;1, for +erious Illegal 4etention and Cri inal Cases Nos. ;15, ;1-, ;1:, and ;1> for four A:) counts of Rape. *n the sa e da$, petitioners filed "ith the Regional 'rial Court of Ma.ati Civil Case No. ;/@-5,: for da ages "ith preli inar$ attach ent against 7reg Bartelli. *n 6ebruar$ 5:, ,/;/, the da$ there "as a scheduled hearing for Bartelli8s petition for bail the latter escaped fro 3ail. *n 6ebruar$ 5;, ,/;/, the court granted the fiscal8s %rgent E&@Parte Motion for the Issuance of Farrant of Arrest and Gold 4eparture *rder. Pending the arrest of the accused 7reg Bartelli $ Northcott, the cri inal cases "ere archived in an *rder dated 6ebruar$ 5;, ,/;/. Mean"hile, in Civil Case No. ;/@-5,:, the ?udge issued an *rder dated 6ebruar$ 55, ,/;/ granting the application of herein petitioners, for the issuance of the "rit of preli inar$ attach ent. After petitioners gave Bond No. ?C! A:) ,/;, b$ 67% Insurance Corporation in the a ount of P,11,111.11, a Frit of Preli inar$ Attach ent "as issued b$ the trial court on 6ebruar$ 5;, ,/;/. *n March ,, ,/;/, the 4eput$ +heriff of Ma.ati served a Notice of 7arnish ent on China Ban.ing Corporation. In a letter dated March ,-, ,/;/ to the 4eput$ +heriff of Ma.ati, China Ban.ing Corporation invo.ed Republic Act No. ,:1> as its ans"er to the notice of garnish ent served on it. *n March ,>, ,/;/, 4eput$ +heriff of Ma.ati Ar ando de 7u# an sent his repl$ to China Ban.ing Corporation sa$ing that the garnish ent did not violate the secrec$ of ban.

deposits since the disclosure is erel$ incidental to a garnish ent properl$ and legall$ ade b$ virtue of a court order "hich has placed the sub3ect deposits in custodia legis. In ans"er to this letter of the 4eput$ +heriff of Ma.ati, China Ban.ing Corporation, in a letter dated March 51, ,/;/, invo.ed +ection ,,- of Central Ban. Circular No. /01 to the effect that the dollar deposits or defendant 7reg Bartelli are e&e pt fro attach ent, garnish ent, or an$ other order or process of an$ court, legislative bod$, govern ent agenc$ or an$ ad inistrative bod$, "hatsoever. 'his pro pted the counsel for petitioners to a.e an in9uir$ "ith the Central Ban. in a letter dated April 5>, ,/;/ on "hether +ection ,,- of CB Circular No. /01 has an$ e&ception or "hether said section has been repealed or a ended since said section has rendered nugator$ the substantive right of the plaintiff to have the clai sought to be enforced b$ the civil action secured b$ "a$ of the "rit of preli inar$ attach ent as granted to the plaintiff under Rule >= of the Revised Rules of Court. 'he Central Ban. responded as follo"s( Ma$ 50, ,/;/ Ms. Erlinda +. Carolino ,5 Pres. *s ena Avenue +outh Ad iral Hillage Parana9ue, Metro Manila 4ear Ms. Carolino( 'his is in repl$ to $our letter dated April 5>, ,/;/ regarding $our in9uir$ on +ection ,,-, CB Circular No. /01 A,/;-). 'he cited provision is absolute in application. It does not ad it of an$ e&ception, nor has the sa e been repealed nor a ended. 'he purpose of the la" is to encourage dollar accounts "ithin the countr$8s ban.ing s$ste "hich "ould help in the develop ent of the econo $. 'here is no intention to render futile the basic rights of a person as "as suggested in $our sub3ect letter. 'he la" a$ be harsh as so e perceive it, but it is still the la". Co pliance is, therefore, en3oined. Her$ trul$ $ours, A+74) A7API'* +. 6A?AR4* 4irector 1 Mean"hile, on April ,1, ,/;/, the trial court granted petitioners8 otion for leave to serve su ons b$ publication in the Civil Case No. ;/@-5,: entitled "<aren +alvacion, et al. vs. 7reg Bartelli $ Northcott." +u ons "ith the co plaint "as a published in the Manila 'i es once a "ee. for three consecutive "ee.s. 7reg Bartelli failed to file his ans"er to the co plaint and "as declared in default on August =, ,/;/. After hearing the case e&@parte, the court rendered 3udg ent in favor of petitioners on March 5/, ,//1, the dispositive portion of "hich reads( FGERE6*RE, 3udg ent is hereb$ rendered in favor of plaintiffs and against defendant, ordering the latter( ,. 'o pa$ plaintiff <aren E. +alvacion the a ount of P>11,111.11 as oral da ages2 5. 'o pa$ her parents, plaintiffs spouses 6ederico N. +alvacion, ?r., and Evelina E. +alvacion the a ount of P,>1,111.11 each or a total of P-11,111.11 for both of the 2 -. 'o pa$ plaintiffs e&e plar$ da ages of P,11,111.112 and :. 'o pa$ attorne$8s fees in an a ount e9uivalent to 5>I of the total a ount of da ages herein a"arded2 >. 'o pa$ litigation e&penses of P,1,111.112 plus 0. Costs of the suit. +* *R4ERE4. 'he heinous acts of respondent 7reg Bartelli "hich gave rise to the a"ard "ere related in graphic detail b$ the trial court in its decision as follo"s( 'he defendant in this case "as originall$ detained in the unicipal 3ail of Ma.ati but "as able to escape therefro on 6ebruar$ 5:, ,/;/ as per report of the ?ail Farden of Ma.ati to the Presiding ?udge, Gonorable Manuel M. Cosico of the Regional 'rial Court of Ma.ati, Branch ,-0, "here he "as charged "ith four counts of Rape and +erious Illegal 4etention ACri . Cases Nos. ;15 to ;1>). Accordingl$, upon otion of plaintiffs, through counsel, su ons "as served upon defendant b$ publication in the Manila 'i es, a ne"spaper of general circulation as attested b$ the Advertising Manager of the Metro Media 'i es, Inc., the publisher of the said ne"spaper. 4efendant, ho"ever, failed to file his ans"er to the co plaint despite the lapse of the period of si&t$ A01) da$s fro the last publication2 hence, upon otion of the plaintiffs, through counsel, defendant "as declared in default and plaintiffs "ere authori#ed to present their evidence ex parte. In support of the co plaint, plaintiffs presented as "itnesses the inor <aren E. +alvacion, her father, 6ederico N. +alvacion, ?r., a certain ?oseph Aguilar and a certain !iberato Madulio, "ho gave the follo"ing testi on$( <aren too. her first $ear high school in +t. Mar$8s Acade $ in Pasa$ Cit$ but has recentl$ transferred to Arellano %niversit$ for her second $ear. In the afternoon of 6ebruar$ :, ,/;/, <aren "as at the Pla#a 6air Ma.ati Cine a +9uare, "ith her friend Edna 'angile "hiling a"a$ her free ti e. At about -(-1 p. . "hile she "as finishing her snac. on a concrete bench in front of Pla#a

6air, an A erican approached her. +he "as then alone because Edna 'angile had alread$ left, and she "as about to go ho e. A'+N, Aug. ,>, ,/;/, pp. 5 to >) 'he A erican as.ed her na e and introduced hi self as 7reg Bartelli. Ge sat beside her "hen he tal.ed to her. Ge said he "as a Math teacher and told her that he has a sister "ho is a nurse in Ne" Jor.. Gis sister allegedl$ has a daughter "ho is about <aren8s age and "ho "as "ith hi in his house along <ala$aan Avenue. A'+N, Aug. ,>, ,/;/, pp. :@>) 'he A erican as.ed <aren "hat "as her favorite sub3ect and she told hi it8s Pilipino. Ge then invited her to go "ith hi to his house "here she could teach Pilipino to his niece. Ge even gave her a stuffed to$ to persuade her to teach his niece. AId., pp. >@0) 'he$ "al.ed fro Pla#a 6air along Pasong 'a o, turning right to reach the defendant8s house along <ala$aan Avenue. AId., p. 0) Fhen the$ reached the apart ent house, <aren noticed that defendant8s alleged niece "as not outside the house but defendant told her a$be his niece "as inside. Fhen <aren did not see the alleged niece inside the house, defendant told her a$be his niece "as upstairs, and invited <aren to go upstairs. A Id., p. =) %pon entering the bedroo defendant suddenl$ loc.ed the door. <aren beca e nervous because his niece "as not there. 4efendant got a piece of cotton cord and tied <aren8s hands "ith it, and then he undressed her. <aren cried for help but defendant strangled her. Ge too. a pac.ing tape and he covered her outh "ith it and he circled it around her head. A Id., p. =) 'hen, defendant suddenl$ pushed <aren to"ards the bed "hich "as 3ust near the door. Ge tied her feet and hands spread apart to the bed posts. Ge .nelt in front of her and inserted his finger in her se& organ. +he felt severe pain. +he tried to shout but no sound could co e out because there "ere tapes on her outh. Fhen defendant "ithdre" his finger it "as full of blood and <aren felt ore pain after the "ithdra"al of the finger. A Id., p. ;) Ge then got a ?ohnson8s Bab$ *il and he applied it to his se& organ as "ell as to her se& organ. After that he forced his se& organ into her but he "as not able to do so. Fhile he "as doing it, <aren found it difficult to breathe and she perspired a lot "hile feeling severe pain. +he erel$ presu ed that he "as able to insert his se& organ a little, because she could not see. <aren could not recall ho" long the defendant "as in that position. A Id. pp. ;@/) After that, he stood up and "ent to the bathroo to "ash. Ge also told <aren to ta.e a sho"er and he untied her hands. <aren could onl$ hear the sound of the "ater "hile the defendant, she presu ed, "as in the bathroo "ashing his se& organ. Fhen she too. a sho"er ore blood ca e out fro her. In the eanti e, defendant changed the attress because it "as full of blood. After the sho"er, <aren "as allo"ed b$ defendant to sleep. +he fell asleep because she got tired cr$ing. 'he incident happened at about :(11 p. . <aren had no "a$ of deter ining the e&act ti e because defendant re oved her "atch. 4efendant did not care to give her food before she "ent to sleep. <aren "o.e up at about ;(11 o8cloc. the follo"ing orning. AId., pp. /@,1) 'he follo"ing da$, 6ebruar$ >, ,/;/, a +unda$, after a brea.fast of biscuit and co.e at about ;(-1 to /(11 a. . defendant raped <aren "hile she "as still bleeding. 6or lunch, the$ also too. biscuit and co.e. +he "as raped for the second ti e at about ,5(11 to 5(11 p. . In the evening, the$ had rice for dinner "hich defendant had stored do"nstairs2 it "as he "ho coo.ed the rice that is "h$ it loo.s li.e "luga"". 6or the third ti e, <aren "as raped again during the night. 4uring those three ti es defendant succeeded in inserting his se& organ but she could not sa$ "hether the organ "as inserted "holl$. <aren did not see an$ firear or an$ bladed "eapon. 'he defendant did not tie her hands and feet nor put a tape on her outh an$ ore but she did not cr$ for help for fear that she ight be .illed2 besides, all the "indo"s and doors "ere closed. And even if she shouted for help, nobod$ "ould hear her. +he "as so afraid that if so ebod$ "ould hear her and "ould be able to call the police, it "as still possible that as she "as still inside the house, defendant ight .ill her. Besides, the defendant did not leave that +unda$, ruling out her chance to call for help. At nightti e he slept "ith her again. A'+N, Aug. ,>, ,/;/, pp. ,5@,:) *n 6ebruar$ 0, ,/;/, Monda$, <aren "as raped three ti es, once in the orning for thirt$ inutes after a brea.fast of biscuits2 again in the afternoon2 and again in the evening. At first, <aren did not .no" that there "as a "indo" because ever$thing "as covered b$ a carpet, until defendant opened the "indo" for around fifteen inutes or less to let so e air in, and she found that the "indo" "as covered b$ st$rofoa and pl$"ood. After that, he again closed the "indo" "ith a ha er and he put the st$rofoa , pl$"ood, and carpet bac.. A Id., pp. ,:@,>) 'hat Monda$ evening, <aren had a chance to call for help, although defendant left but .ept the door closed. +he "ent to the bathroo and sa" a s all "indo" covered b$ st$rofoa and she also spotted a s all hole. +he stepped on the bo"l and she cried for help through the hole. +he cried( "Maawa no po kayo so akin. Tulungan n'yo akong makalabas dito. Kinidnap akoK" +o ebod$ heard her. It "as a "o an, probabl$ a neighbor, but she got angr$ and said she "as " istorbo". <aren pleaded for help and the "o an told her to sleep and she "ill call the police. +he finall$ fell asleep but no police an ca e. A'+N, Aug. ,>, ,/;/, pp. ,>@,0) +he "o.e up at 0(11 o8cloc. the follo"ing orning, and she sa" defendant in bed, this ti e sleeping. +he "aited for hi to "a.e up. Fhen he "o.e up, he again got so e food but he al"a$s .ept the door loc.ed. As usual, she "as erel$ fed

"ith biscuit and co.e. *n that da$, 6ebruar$ =, ,/;/, she "as again raped three ti es. 'he first at about 0(-1 to =(11 a. ., the second at about ;(-1 B /(11, and the third "as after lunch at ,5(11 noon. After he had raped her for the second ti e he left but onl$ for a short "hile. %pon his return, he caught her shouting for help but he did not understand "hat she "as shouting about. After she "as raped the third ti e, he left the house. A'+N, Aug. ,>, ,/;/, pp. ,0@,=) +he again "ent to the bathroo and shouted for help. After shouting for about five inutes, she heard an$ voices. 'he voices "ere as.ing for her na e and she gave her na e as <aren +alvacion. After a "hile, she heard a voice of a "o an sa$ing the$ "ill 3ust call the police. 'he$ "ere also telling her to change her clothes. +he "ent fro the bathroo to the roo but she did not change her clothes being afraid that should the neighbors call for the police and the defendant see her in different clothes, he ight .ill her. At that ti e she "as "earing a '@shirt of the A erican because the latter "ashed her dress. A Id., p. ,0) After"ards, defendant arrived and he opened the door. Ge as.ed her if she had as.ed for help because there "ere an$ police en outside and she denied it. Ge told her to change her clothes, and she did change to the one she "as "earing on +aturda$. Ge instructed her to tell the police that she left ho e and "illingl$2 then he "ent do"nstairs but he loc.ed the door. +he could hear people conversing but she could not understand "hat the$ "ere sa$ing. A Id., p. ,/) Fhen she heard the voices of an$ people "ho "ere conversing do"nstairs, she .noc.ed repeatedl$ at the door as hard as she could. +he heard so ebod$ going upstairs and "hen the door "as opened, she sa" a police an. 'he police an as.ed her na e and the reason "h$ she "as there. +he told hi she "as .idnapped. 4o"nstairs, he sa" about five police en in unifor and the defendant "as tal.ing to the . " Nakikipag-areglo po sa mga pulis," <aren added. "'he police an told hi to 3ust e&plain at the precinct. A Id., p. 51) 'he$ "ent out of the house and she sa" so e of her neighbors in front of the house. 'he$ rode the car of a certain person she called <u$a Bo$ together "ith defendant, the police an, and t"o of her neighbors "ho she called <u$a Bong !acson and one Ate Nita. 'he$ "ere brought to +ub@+tation I and there she "as investigated b$ a police an. At about 5(11 a. ., her father arrived, follo"ed b$ her other together "ith so e of their neighbors. 'hen the$ "ere brought to the second floor of the police head9uarters. AId., p. 5,) At the head9uarters, she "as as.ed several 9uestions b$ the investigator. 'he "ritten state ent she gave to the police "as ar.ed as E&hibit A. 'hen the$ proceeded to the National Bureau of Investigation together "ith the investigator and her parents. At the NBI, a doctor, a edico@legal officer, e&a ined her private parts. It "as alread$ -(11 in the earl$ orning of the follo"ing da$ "hen the$ reached the NBI. A'+N, Aug. ,>, ,/;/, p. 55) 'he findings of the edico@legal officer has been ar.ed as E&hibit B. +he "as stud$ing at the +t. Mar$8s Acade $ in Pasa$ Cit$ at the ti e of the incident but she subse9uentl$ transferred to Apolinario Mabini, Arellano %niversit$, situated along 'aft Avenue, because she "as asha ed to be the sub3ect of conversation in the school. +he first applied for transfer to ?ose Abad +antos, Arellano %niversit$ along 'aft Avenue near the !ight Rail 'ransit +tation but she "as denied ad ission after she told the school the true reason for her transfer. 'he reason for their denial "as that the$ ight be i plicated in the case. A'+N, Aug. ,>, ,/;/, p. :0) &&& &&& &&& After the incident, <aren has changed a lot. +he does not pla$ "ith her brother and sister an$ ore, and she is al"a$s in a state of shoc.2 she has been absent@ inded and is asha ed even to go out of the house. A'+N, +ept. ,5, ,/;/, p. ,1) +he appears to be restless or sad, AId., p. ,,) 'he father pra$s for P>11,111.11 oral da ages for <aren for this shoc.ing e&perience "hich probabl$, she "ould al"a$s recall until she reaches old age, and he is not sure if she could ever recover fro this e&perience. A'+N, +ept. 5:, ,/;/, pp. ,1@,,) Pursuant to an *rder granting leave to publish notice of decision, said notice "as published in the Manila Bulletin once a "ee. for three consecutive "ee.s. After the lapse of fifteen A,>) da$s fro the date of the last publication of the notice of 3udg ent and the decision of the trial court had beco e final, petitioners tried to e&ecute on Bartelli8s dollar deposit "ith China Ban.ing Corporation. !i.e"ise, the ban. invo.ed +ection ,,- of Central Ban. Circular No. /01. 'hus, petitioners decided to see. relief fro this Court. 'he issues raised and the argu ents articulated b$ the parties boil do"n to t"o( Ma$ this Court entertain the instant petition despite the fact that original 3urisdiction in petitions for declarator$ relief rests "ith the lo"er courtL +hould +ection ,,- of Central Ban. Circular No. /01 and +ection ; of R.A. 0:50, as a ended b$ P.4. ,5:0, other"ise .no"n as the 6oreign Currenc$ 4eposit Act be ade applicable to a foreign transientL Petitioners aver as heretofore stated that +ection ,,- of Central Ban. Circular No. /01 providing that "6oreign currenc$ deposits shall be e&e pt fro attach ent, garnish ent, or an$ other order or process of an$ court, legislative bod$, govern ent agenc$ or an$ ad inistrative bod$ "hatsoever." should be ad3udged as unconstitutional on the grounds that( ,.) it has ta.en a"a$ the right of petitioners to have the ban. deposit of defendant 7reg Bartelli $ Northcott garnished to satisf$ the 3udg ent rendered in petitioners8 favor in violation of substantive due process guaranteed b$ the Constitution2 5.) it has given foreign currenc$ depositors an undue favor or a class privilege in violation of the e9ual protection clause of the Constitution2 -.) it has provided a safe haven for cri inals li.e the herein respondent 7reg Bartelli $ Northcott since cri inals could escape civil liabilit$ for their "rongful acts b$ erel$ converting their one$ to a foreign currenc$

and depositing it in a foreign currenc$ deposit account "ith an authori#ed ban.2 and :.) 'he Monetar$ Board, in issuing +ection ,,- of Central Ban. Circular No. /01 has e&ceeded its delegated 9uasi@legislative po"er "hen it too. a"a$( a.) the plaintiffs substantive right to have the clai sought to be enforced b$ the civil action secured b$ "a$ of the "rit of preli inar$ attach ent as granted b$ Rule >= of the Revised Rules of Court2 b.) the plaintiffs substantive right to have the 3udg ent credit satisfied b$ "a$ of the "rit of e&ecution out of the ban. deposit of the 3udg ent debtor as granted to the 3udg ent creditor b$ Rule -/ of the Revised Rules of Court, "hich is be$ond its po"er to do so. *n the other hand, respondent Central Ban., in its Co ent alleges that the Monetar$ Board in issuing +ection ,,- of CB Circular No. /01 did not e&ceed its po"er or authorit$ because the sub3ect +ection is copied verbati fro a portion of R.A. No. 0:50 as a ended b$ P.4. ,5:0. Gence, it "as not the Monetar$ Board that grants e&e ption fro attach ent or garnish ent to foreign currenc$ deposits, but the la" AR.A. 0:50 as a ended) itself2 that it does not violate the substantive due process guaranteed b$ the Constitution because a.) it "as based on a la"2 b.) the la" see s to be reasonable2 c.) it is enforced according to regular ethods of procedure2 and d.) it applies to all e bers of a class. E&panding, the Central Ban. said2 that one reason for e&e pting the foreign currenc$ deposits fro attach ent, garnish ent or an$ other order or process of an$ court, is to assure the develop ent and speed$ gro"th of the 6oreign Currenc$ 4eposit +$ste and the *ffshore Ban.ing +$ste in the Philippines2 that another reason is to encourage the inflo" of foreign currenc$ deposits into the ban.ing institutions thereb$ placing such institutions ore in a position to properl$ channel the sa e to loans and invest ents in the Philippines, thus directl$ contributing to the econo ic develop ent of the countr$2 that the sub3ect section is being enforced according to the regular ethods of procedure2 and that it applies to all foreign currenc$ deposits ade b$ an$ person and therefore does not violate the e9ual protection clause of the Constitution. Respondent Central Ban. further avers that the 9uestioned provision is needed to pro ote the public interest and the general "elfare2 that the +tate cannot 3ust stand idl$ b$ "hile a considerable seg ent of the societ$ suffers fro econo ic distress2 that the +tate had to ta.e so e easures to encourage econo ic develop ent2 and that in so doing persons and propert$ a$ be sub3ected to so e .inds of restraints or burdens to secure the general "elfare or public interest. Respondent Central Ban. also alleges that Rule -/ and Rule >= of the Revised Rules of Court provide that so e properties are e&e pted fro e&ecutionDattach ent especiall$ provided b$ la" and R.A. No. 0:50 as a ended is such a la", in that it specificall$ provides, a ong others, that foreign currenc$ deposits shall be e&e pted fro attach ent, garnish ent, or an$ other order or process of an$ court, legislative bod$, govern ent agenc$ or an$ ad inistrative bod$ "hatsoever. 6or its part, respondent China Ban.ing Corporation, aside fro giving reasons si ilar to that of respondent Central Ban., also stated that respondent China Ban. is not un indful of the inhu an sufferings e&perienced b$ the inor <aren E. +alvacion fro the beastl$ hands of 7reg Bartelli2 that it is onl$ too "illing to release the dollar deposit of Bartelli "hich a$ perhaps partl$ itigate the sufferings petitioner has undergone2 but it is restrained fro doing so in vie" of R.A. No. 0:50 and +ection ,,- of Central Ban. Circular No. /012 and that despite the harsh effect of these la"s on petitioners, CBC has no other alternative but to follo" the sa e. 'his Court finds the petition to be partl$ eritorious. Petitioner deserves to receive the da ages a"arded to her b$ the court. But this petition for declarator$ relief can onl$ be entertained and treated as a petition for mandamus to re9uire respondents to honor and co pl$ "ith the "rit of e&ecution in Civil Case No. ;/@-5,:. 'his Court has no original and e&clusive 3urisdiction over a petition for declarator$ relief. 2 Go"ever, e&ceptions to this rule have been recogni#ed. 'hus, "here the petition has far@reaching i plications and raises 9uestions that should be resolved, it a$ be treated as one for mandamus. 3 Gere is a child, a ,5@$ear old girl, "ho in her belief that all A ericans are good and in her gesture of .indness b$ teaching his alleged niece the 6ilipino language as re9uested b$ the A erican, trustingl$ "ent "ith said stranger to his apart ent, and there she "as raped b$ said A erican tourist 7reg Bartelli. Not once, but ten ti es. +he "as detained therein for four A:) da$s. 'his A erican tourist "as able to escape fro the 3ail and avoid punish ent. *n the other hand, the child, having received a favorable 3udg ent in the Civil Case for da ages in the a ount of ore than P,,111,111.11, "hich a ount could alleviate the hu iliation, an&iet$, and bes irched reputation she had suffered and a$ continue to suffer for a long, long ti e2 and .no"ing that this person "ho had "ronged her has the one$, could not, ho"ever get the a"ard of da ages because of this unreasonable la". 'his 9uestioned la", therefore a.es futile the favorable 3udg ent and a"ard of da ages that she and her parents full$ deserve. As stated b$ the trial court in its decision, Indeed, after hearing the testi on$ of <aren, the Court believes that it "as undoubtedl$ a shoc.ing and trau atic e&perience she had undergone "hich could haunt her ind for a long, long ti e, the ere recall of "hich could a.e her feel so hu iliated, as in fact she had been actuall$ hu iliated once "hen she "as refused ad ission at the Abad +antos Gigh +chool, Arellano %niversit$, "here she sought to transfer fro another school, si pl$ because the school authorities of the said Gigh +chool learned about "hat happened to her and allegedl$ feared that the$ ight be i plicated in the case.

&&& &&& &&& 'he reason for i posing e&e plar$ or corrective da ages is due to the "anton and bestial anner defendant had co itted the acts of rape during a period of serious illegal detention of his hapless victi , the inor <aren +alvacion "hose onl$ fault "as in her being so naive and credulous to believe easil$ that defendant, an A erican national, could not have such a bestial desire on her nor capable of co itting such a heinous cri e. Being onl$ ,5 $ears old "hen that unfortunate incident happened, she has never heard of an old 6ilipino adage that in ever$ forest there is a sna.e, . . . . 4 If <aren8s sad fate had happened to an$bod$8s o"n .in, it "ould be difficult for hi to fatho ho" the incentive for foreign currenc$ deposit could be ore i portant than his child8s rights to said a"ard of da ages2 in this case, the victi 8s clai for da ages fro this alien "ho had the gall to "rong a child of tender $ears of a countr$ "here he is a ere visitor. 'his further illustrates the fla" in the 9uestioned provisions. It is "orth entioning that R.A. No. 0:50 "as enacted in ,/;- or at a ti e "hen the countr$8s econo $ "as in a sha bles2 "hen foreign invest ents "ere ini al and presu abl$, this "as the reason "h$ said statute "as enacted. But the realities of the present ti es sho" that the countr$ has recovered econo icall$2 and even if not, the 9uestioned la" still denies those entitled to due process of la" for being unreasonable and oppressive. 'he intention of the 9uestioned la" a$ be good "hen enacted. 'he la" failed to anticipate the ini9uitous effects producing outright in3ustice and ine9ualit$ such as the case before us. It has thus been said that B But I also .no", 2 that la"s and institutions ust go hand in hand "ith the progress of the hu an ind. As that beco es ore developed, ore enlightened, as ne" discoveries are ade, ne" truths are disclosed and anners and opinions change "ith the change of circu stances, institutions ust advance also, and .eep pace "ith the ti es. . . Fe ight as "ell re9uire a an to "ear still the coat "hich fitted hi "hen a bo$, as civili#ed societ$ to re ain ever under the regi en of their barbarous ancestors. In his Co ent, the +olicitor 7eneral correctl$ opined, thus( 'he present petition has far@reaching i plications on the right of a national to obtain redress for a "rong co itted b$ an alien "ho ta.es refuge under a la" and regulation pro ulgated for a purpose "hich does not conte plate the application thereof envisaged b$ the alien. More specificall$, the petition raises the 9uestion "hether the protection against attach ent, garnish ent or other court process accorded to foreign currenc$ deposits b$ P4 No. ,5:0 and CB Circular No. /01 applies "hen the deposit does not co e fro a lender or investor but fro a ere transient or tourist "ho is not e&pected to aintain the deposit in the ban. for long. 'he resolution of this 9uestion is i portant for the protection of nationals "ho are victi i#ed in the foru b$ foreigners "ho are erel$ passing through. &&& &&& &&& . . . Respondents China Ban.ing Corporation and Central Ban. of the Philippines refused to honor the "rit of e&ecution issued in Civil Case No. ;/@-5,: on the strength of the follo"ing provision of Central Ban. Circular No. /01( +ec. ,,-. Exemption from attac ment. B 6oreign currenc$ deposits shall be e&e pt fro attach ent, garnish ent, or an$ other order or process of an$ court, legislative bod$, govern ent agenc$ or an$ ad inistrative bod$ "hatsoever. Central Ban. Circular No. /01 "as issued pursuant to +ection = of Republic Act No. 0:50( +ec. =. !ules and !egulations. 'he Monetar$ Board of the Central Ban. shall pro ulgate such rules and regulations as a$ be necessar$ to carr$ out the provisions of this Act "hich shall ta.e effect after the publication of such rules and regulations in the *fficial 7a#ette and in a ne"spaper of national circulation for at least once a "ee. for three consecutive "ee.s. In case the Central Ban. pro ulgates ne" rules and regulations decreasing the rights of depositors, the rules and regulations at the ti e the deposit "as ade shall govern. 'he aforecited +ection ,,- "as copied fro +ection ; of Republic Act N*. 0:50, as a ended b$ P.4. ,5:0, thus( +ec. ;. "ecrecy of #oreign $urrency %eposits. B All foreign currenc$ deposits authori#ed under this Act, as a ended b$ Presidential 4ecree No. ,1->, as "ell as foreign currenc$ deposits authori#ed under Presidential 4ecree No. ,1-:, are hereb$ declared as and considered of an absolutel$ confidential nature and, e&cept upon the "ritten per ission of the depositor, in no instance shall such foreign currenc$ deposits be e&a ined, in9uired or loo.ed into b$ an$ person, govern ent official, bureau or office "hether 3udicial or ad inistrative or legislative or an$ other entit$ "hether public or private( &ro'ided( owe'er( t at said foreign currency deposits s all be exempt from attac ment( garnis ment( or any ot er order or process of any court( legislati'e body( go'ernment agency or any administrati'e body w atsoe'er . 'he purpose of P4 ,5:0 in according protection against attach ent, garnish ent and other court process to foreign currenc$ deposits is stated in its "hereases, 'i).( FGEREA+, under Republic Act No. 0:50, as a ended b$ Presidential 4ecree No. ,1->, certain Philippine ban.ing institutions and branches of foreign ban.s are authori#ed to accept deposits in foreign currenc$2

FGEREA+, under the provisions of Presidential 4ecree No. ,1-: authori#ing the establish ent of an offshore ban.ing s$ste in the Philippines, offshore ban.ing units are also authori#ed to receive foreign currenc$ deposits in certain cases2 FGEREA+, in order to assure the develop ent and speed$ gro"th of the 6oreign Currenc$ 4eposit +$ste and the *ffshore Ban.ing +$ste in the Philippines, certain incentives "ere provided for under the t"o +$ste s such as confidentialit$ of deposits sub3ect to certain e&ceptions and ta& e&e ptions on the interest inco e of depositors "ho are nonresidents and are not engaged in trade or business in the Philippines2 FGEREA+, a.ing absolute the protective cloa. of confidentialit$ over such foreign currenc$ deposits, e&e pting such deposits fro ta&, and guaranteeing the vested rights of depositors "ould better encourage the inflo" of foreign currenc$ deposits into the ban.ing institutions authori#ed to accept such deposits in the Philippines thereb$ placing such institutions ore in a position to properl$ channel the sa e to loans and invest ents in the Philippines, thus directl$ contributing to the econo ic develop ent of the countr$2 'hus, one of the principal purposes of the protection accorded to foreign currenc$ deposits is "to assure the develop ent and speed$ gro"th of the 6oreign Currenc$ 4eposit s$ste and the *ffshore Ban.ing in the Philippines" A-rd Fhereas). 'he *ffshore Ban.ing +$ste "as established b$ P4 No. ,1-:. In turn, the purposes of P4 No. ,1-: are as follo"s( FGEREA+, conditions conducive to the establish ent of an offshore ban.ing s$ste , such as political stabilit$, a gro"ing econo $ and ade9uate co unication facilities, a ong others, e&ist in the Philippines2 FGEREA+, it is in the interest of developing countries to have as "ide access as possible to the sources of capital funds for econo ic develop ent2 FGEREA+, an offshore ban.ing s$ste based in the Philippines "ill be advantageous and beneficial to the countr$ b$ increasing our lin.s "ith foreign lenders, facilitating the flo" of desired invest ents into the Philippines, creating e plo$ ent opportunities and e&pertise in international finance, and contributing to the national develop ent effort. FGEREA+, the geographical location, ph$sical and hu an resources, and other positive factors provide the Philippines "ith the clear potential to develop as another financial center in Asia2 *n the other hand, the 6oreign Currenc$ 4eposit s$ste "as created b$ P4. No. ,1->. Its purposes are as follo"s( FGEREA+, the establish ent of an offshore ban.ing s$ste in the Philippines has been authori#ed under a separate decree2 FGEREA+, a nu ber of local co ercial ban.s, as depositor$ ban. under the 6oreign Currenc$ 4eposit Act ARA No. 0:50), have the resources and anagerial co petence to ore activel$ engage in foreign e&change transactions and participate in the grant of foreign currenc$ loans to resident corporations and fir s2 FGEREA+, it is ti el$ to e&pand the foreign currenc$ lending authorit$ of the said depositor$ ban.s under RA 0:50 and appl$ to their transactions the sa e ta&es as "ould be applicable to transaction of the proposed offshore ban.ing units2 It is evident fro the above MFhereas clausesN that the *ffshore Ban.ing +$ste and the 6oreign Currenc$ 4eposit +$ste "ere designed to dra" deposits fro foreign lenders and in'estors AHide second Fhereas of P4 No. ,1-:2 third Fhereas of P4 No. ,1->). It is these deposits that are induced b$ the t"o la"s and given protection and incentives b$ the . *bviousl$, the foreign currenc$ deposit ade b$ a transient or a tourist is not the .ind of deposit encouraged b$ P4 Nos. ,1-: and ,1-> and given incentives and protection b$ said la"s because such depositor sta$s onl$ for a fe" da$s in the countr$ and, therefore, "ill aintain his deposit in the ban. onl$ for a short ti e. Respondent 7reg Bartelli, as stated, is 3ust a tourist or a transient. Ge deposited his dollars "ith respondent China Ban.ing Corporation onl$ for safe.eeping during his te porar$ sta$ in the Philippines. 6or the reasons stated above, the +olicitor 7eneral thus sub its that the dollar deposit of respondent 7reg Bartelli is not entitled to the protection of +ection ,,- of Central Ban. Circular No. /01 and P4 No. ,5:0 against attach ent, garnish ent or other court processes. 3 In fine, the application of the la" depends on the e&tent of its 3ustice. Eventuall$, if "e rule that the 9uestioned +ection ,,- of Central Ban. Circular No. /01 "hich e&e pts fro attach ent, garnish ent, or an$ other order or process of an$ court, legislative bod$, govern ent agenc$ or an$ ad inistrative bod$ "hatsoever, is applicable to a foreign transient, in3ustice "ould result especiall$ to a citi#en aggrieved b$ a foreign guest li.e accused 7reg Bartelli. 'his "ould negate Article ,1 of the Ne" Civil Code "hich provides that "in case of doubt in the interpretation or application of la"s, it is presu ed that the la" a.ing bod$ intended right and 3ustice to prevail. " Ninguno non deue enriquecerse torti)eramente con dano de otro." +i pl$ stated, "hen the statute is silent or a biguous, this is one of those funda ental solutions that "ould respond to the vehe ent urge of conscience. APadilla vs. Padilla, =: Phil. -==). It "ould be unthin.able, that the 9uestioned +ection ,,- of Central Ban. No. /01 "ould be used as a device b$ accused 7reg Bartelli for "rongdoing, and in so doing, ac9uitting the guilt$ at the e&pense of the innocent. Call it "hat it a$ B but is there no conflict of legal polic$ hereL 4ollar against PesoL %pholding the final and e&ecutor$ 3udg ent of the lo"er court against the Central Ban. Circular protecting the foreign depositorL +hielding or protecting the

dollar deposit of a transient alien depositor against in3ustice to a national and victi of a cri eL 'his situation calls for fairness against legal t$rann$. Fe definitel$ cannot have both "a$s and rest in the belief that "e have served the ends of 3ustice. IN HIEF FGERE*6, the provisions of +ection ,,- of CB Circular No. /01 and P4 No. ,5:0, insofar as it a ends +ection ; of R.A. No. 0:50 are hereb$ held to be INAPP!ICAB!E to this case because of its peculiar circu stances. Respondents are hereb$ REO%IRE4 to C*MP!J "ith the "rit of e&ecution issued in Civil Case No. ;/@-5,:, "<aren +alvacion, et al. vs. 7reg Bartelli $ Northcott, b$ Branch CP!IH, R'C Ma.ati and to RE!EA+E to petitioners the dollar deposit of respondent 7reg Bartelli $ Northcott in such a ount as "ould satisf$ the 3udg ent. +* *R4ERE4. Nar'asa( $*+*( !egalado( %a'ide( +r*( !omero( ,ellosillo( Melo( &uno( -itug( Kapunan( #rancisco and &anganiban( ++*( concur* &adilla( +*( took no part* Mendo)a and .ermosisima( +r*( ++*( are on lea'e* $oot!ot%s , Anne& "R", Petition. 5 Alliance of 7overn ent For.ers AA7F) v. Ministr$ of !abor and E plo$ ent, ,5: +CRA , - Nationalista Part$ vs. Angelo Bautista, ;> Phil. ,1,2 A9uino vs. Co elec, 05 +CRA 5=>2 and Alliance of 7overn ent For.ers vs. Minister of !abor and E plo$ ent, supra. : 4ecision, Regional 'rial Court, Civil Case No. ;/@-5,:, pp. / Q ,5, !ollo, pp. 00 Q 0/. > 'ho as ?efferson, 4e ocrac$, ed. +aul <. Padover, ANe" Jor., Penguin, ,/:0) p. ,=,. 0 Co ent of the +olicitor 7eneral, !ollo, pp. ,5;@,5/2 ,->@,-0. 'he !a"phil Pro3ect @ Arellano !a" 6oundation