JOAQUIN SO, PETITIONER, VS. HON GAUDENCIO CLORIBEL, JUDGE OF THE COURT OF FIRST INSTANCE OF MANILA (BRANCH VI), HON. FRANCISCO ARCA, JUDGE OF THE COURT OF FIRST INSTANCE OF MANI…

Petition for certiorari to annul:

(1)  
the Order of May 20, 1964, issued by the
respondent Judge Gaudencio Cloribel
in Civil Case No. 54912 of the Court of First Instance of Manila, ordering the
respondent Reparations Commission to deliver the photographic materials
involved in this case to the receiver, Atty. Ramon M. Velayo,
in order that the said receiver shall distribute the same to the persons or
parties entitled thereto, subject to the approval of the court;

(2)  
the Order of June 1, 1964, issued by the
respondent Judge Gaudencio Cloribel
in Civil Case No. 54912 of the Court of First Instance of Manila, approving the
Compromise Agreement of May 13, 1964, executed by and between the respondents
Joseph Cochingyan Jr., Cesar A. Eguia,
Vicente B. Magno, Panay
Legionnaires Enterprises, Inc., Worldwide Trading & Development Corporation,
Keyser Mercantile Co., Inc., and the Legionnaires Enterprises, Inc., and
directing the receiver to implement said compromise agreement in accordance
with the terms and conditions thereof;

(3)  
the Order of June 1, 1964, issued by the
respondent Judge Francisco Arca in Civil Case No.
55250 of the Court of First Instance of Manila, approving the Compromise
Agreement entered into by and between the respondents Joseph Cochingyan, Jr., Cesar A. Eguia,
Vicente B. Magno, Panay
Legionnaires Enterprises, Inc., Worldwide Trading & Development
Corporation, Keyser Mercantile Co., Inc., and the Legionnaires Enterprises,
Inc.; and

(4)  
the Order of June 1, 1964, issued by the
respondent Judge Gaudencio Cloribel
in Civil Case No. 54912 of the Court of First Instance of Manila, ordering,
among others, the respondent Reparations Commission to deliver to the
respondent Ramon M. Velayo, in his capacity as
receiver of Legionnaires Enterprises, Inc., the photographic supplies with the
total value of US $120,000.00 upon payment of the invoice value thereof and the
other charges of the respondent Reparations Commission at the rate of P2.00 to
$1.00; the filing of a bond in favor of the said Commission to answer for the
payment of the difference between the free market rate of exchange and the
P2.00 to $1.00 rate of exchange; and the payment to petitioner Joaquin So, by
the said receiver, of the amount of US $37,016.00, as reimbursement for the
amount previously paid by the said petitioner to the Reparations Commission;

with a prayer
for the issuance of a writ of preliminary injunction to restrain the said
respondent courts from enforcing the same.

As prayed for, a temporary restraining order was issued by this
Court on June 8, 1964,
“effective immediately but expiring July 1.”^[1]

The record shows that on February
3, 1959, the Reparations Commission, in its Resolution No. 88,
awarded to the Philippine Veterans Legion US $4 million worth of reparation
goods, pursuant to Section 2 (d) of Republic Act No. 1789, to generate a trust
fund for the benefit and rehabilitation of World War II veterans, their widows,
parents, and orphans.

On March 12, 1959, the Reparations Commission, in its Resolution
No. 91, recognized and authorized the Legionnaires Enterprises, Inc., to act as
the business arm of the Philippine Veterans Legion to handle the goods or commodities
to be Procured by the Reparations Commission in Japan for the Philippine
Veterans Legion.

On March 13, 1961,
by Resolution No. 396, the Reparations Commission set aside for the Philippine
Veterans Legion US $1 million worth of reparation consumer goods,^[2]
and subsequently issued the corresponding Procurement Order No. 9, dated June 16, 1961, cover­ing said
allocation.

Thereafter, the Philippine Mission in Japan
contracted with Japanese suppliers for the consumer goods to meet the
requirements of the Philippine Veterans Legion under its allocation.  Among the reparations contracts executed by
the Mission were contracts for US
$120,000.00 worth of photographic materials with the Fuji Photo Film Co. and
Mitsubishi Kaisha.

In the meanwhile, the Philippine Veterans Legion and Legionnaires
Enterprises, Inc. entered into an agreement, whereby from the category of a
mere business arm of the former, the latter was converted into that of a
commission agent of the aforestated US $1 million worth of reparations goods,
in consideration of the sum of P300,000.00,
representing 15% of the invoice dollar value of the allocation to the
Philippine Veterans Legion, pegged at P2.00 per US $1.00.  As such agent, the Legionnaires Enterprises,
Inc. was vested with authority to handle the procurement of the goods from
Japan in the name of the Philippine Veterans Legion, and the sale and
disposition of the same in favor of whomsoever it may choose and at such price
as it may deem fit to fix, with the right to retain whatever profit it may
realize from such sale and disposition.^[3]

On October 12, 1959, Francisco B. Offemaria,
president of the Legionnaires Enterprises, Inc., and National Commander of the
Philippine Veterans Legion, constituted Cesar P. Roces
as his attorney-in-fact “to make all necessary representations, acts and
transactions in Japan regarding the implementation or carrying out the intents
and purposes of the award embodied in Resolutions No. 88 and 91 of the
Philippine Reparations Commission in relation to Republic Act No. 1789”
and “to Make, sign, execute and deliver contracts, documents, agreements
and other writings of whatever nature and kind, with any and all government
offices concerned and any and all third persons, concerns or entities upon such
terms and conditions acceptable to the said Attorney, within the scope and
sphere of the above-mentioned Resolutions Nos. 88 and 91 and Republic Act No.
1789.”^[4]

On August 31, 1961,
Cesar P. Roces, acting in behalf of the Legionnaires
Enterprises, Inc. by virtue of the general power of attorney heretofore
conferred upon him, sold to the Worldwide Trading & Development
Corporation, US $500,000.00 worth of reparation goods of the US $1 million
awarded to the Philippine Veterans Legion under Resolution No. 396 of the Reparations
Commission.^[5]
On September 6, 1961, the
said Cesar P. Roces sold US $150,000.00 worth of
reparation goods to Joaquin So,^[6]
and on September 15, 1961,
the said Cesar P. Roces, sold the remaining US
$350,000.00 worth of reparations consumer goods to Roman Baldovino.^[7]

On August 30, 1963, the Worldwide Trading & Development
Corporation, Roman Baldovino, and Joaquin So,
realizing that their respective purchases would be arriving at different times
and would be so commingled that it would be extremely difficult to separate
what pertains respectively to each of them, executed an agreement captioned
“Deed of Assignment”, whereby the Worldwide Trading & Development
Corporation and Roman Baldovino assigned and
transferred their rights and interests in the aforementioned reparation goods
to Joaquin So.^[8]

On September 6, 1963,
Joaquin So, in his own behalf, and as assignee of Worldwide
Trading & Development Corporation and Roman Baldovino,
filed a complaint against the Legionnaires Enterprises, Inc., Philippine
Reparations Commission, and Cesar P. Roces, for
Specific Performance with Preliminary Injunction.  The case was docketed as Civil Case No. 54912
and assigned to Branch VI of the Court of First Instance of Manila, presided by
the respondent Judge Gaudencio Cloribel.  The substance of the complaint is that the
reparation goods, subject matter of the contracts executed by Cesar P. Roces in favor of the Worldwide Trading & Development
Corporation, Roman Baldovino, and Joaquin So, have
been procured under Resolution No. 396 of the Reparations Commission and have
already left Japan on August 25, 1963, and due to arrive in the Philippines on
or about the first week of September, 1963, but that the Legionnaires
Enterprises, Inc. and Cesar P. Roces refused to comply
with the terms thereof.  Joaquin So
prayed for a writ of preliminary injunction restraining the defendant
Reparations Commission, its officers, representative, or agent from releasing
the goods to the defendant Legionnaires Enterprises, Inc. or anyone else until
further orders; the defendants Legionnaires Enterprises, Inc. and Cesar P. Roces from selling the allocation granted to the Philippine
Veterans Le­gion or any part thereof, and from taking deliveries of the
reparation goods covered by said allocation.^[9]

On November 7, 1963, the respondent Judge Gaudencio
Cloribel issued a writ of preliminary mandatory
injunction “requiring defendant Reparations Commission to endorse all the
shipping documents pertaining to the photographic materials with an invoice
value of some $120,000.00 to plaintiff Joaquin So, and to deliver to him
immediately the photographic materials with an invoice value of $37,016.00 upon
the filing by said plaintiff of a bond in the amount of P74,032.00 in favor of
the defendant Reparations Commission, and the payment to the said defendant of
the invoice value of the goods and such other fees and charges computed at the
preferred rate of exchange of 2 to 1 per invoice dollar; also requiring that
thereafter the said defendant Reparations Commission make the deliveries of the
other photographic materials that will arrive upon Joaquin So’s
posting additional bonds equivalent in amount to P2.00 per invoice dollar, and
upon his payment of the invoice value of the goods and other fees and charges
at the preferred rate of 2 to 1 per invoice dollar.”^[10]

Meanwhile, on October 2,
1963, Keyser Mercantile Co., Inc., claiming to have an interest in
the matter under litigation, sought to intervene in said Civil Case No. 54912.^[11]
However, before its motion to intervene could be resolved by the court, Keyser
Mercantile Co., Inc. withdrew the same.^[12]
In its stead, Keyser Mercantile Co., Inc. filed a complaint before the Court of
First Instance of Manila against the Legionnaires Enterprises, Inc. for specific
performance with injunction, which case was docketed therein as Civil Case No.
55250 and assigned to Branch I, presi­ded by the respondent Judge Francisco Arca.  In this
independent action, Keyser Mercantile Co., Inc. sought to compel specific
performance of the contract executed in its favor by the Legionnaires
Enterprises, Inc.  It prayed for a writ
of preliminary injunction restraining the defendant Legionnaires Enterprises,
Inc. from releasing and/or disposing of the photographic materials subject of
the complaint.^[13]

On October 19, 1963,
the respondent Judge Francisco Arca issued an order
restraining the defendant Legionnaires Enterprises, Inc., from releasing and/or
disposing of the photographic supplies subject-matter of the complaint, which
are now in Manila ports, until further orders of the
court.^[14]

On December 3, 1963, the Reparations Commission filed a pleading
captioned “Petitionary Manifestation”
calling the attention of Judge Arca to the fact that
its order of November 27, 1963,^[15]
restraining the delivery of photographic materials to anybody except Keyser
Mercantile Co., Inc.^[16]
was in conflict with the mandatory injunction issued on November 7, 1963 by
Judge Cloribel in Civil Case No. 54912 which ordered
the delivery of the same photographic materials to Joaquin So.^[17]

On December 6, 1963, Joaquin So filed a motion in Civil Case No.
55250 seeking, among others, the consolidation of Civil Case No. 55250 with
Civil Case No. 54912.^[18]

On January 24, 1964,
the respondent Judge Francisco Arca, in an Omnibus
Order, denied the aforementioned Petitionary Manifestation
and the petition to consolidate Civil Cases Nos. 55250 and 54912, upon the
grounds that the parties in said cases are not the same and that there is no
showing that the goods involved in both cases are, also the same.  In said order, the respondent judge also
approved the motions to intervene filed by Vicente B. Magno
and Cesar A. Eguia.^[19]

Thereafter, the Panay Legionnaires
Enterprises, Inc., Joseph Cochingyan, Jr., and the
Worldwide Trading & Development Corporation, all claiming to be the vendees
of the reparations goods in question, were allowed to intervene in Civil Cases
Nos. 55250 and 54912.^[20]

On February 29, 1964, the Panay
Legionnaires Enterprises, Inc. filed a petition in Civil Case No. 55250 asking
that a receiver be appointed for the defendant Legionnaires Enterprises, Inc.
and of the properties in litigation, claiming that the appointment of a
receiver is indispensable for the protection of the interests of the parties
concerned in view of the inherent perishable nature of the photographic films
and materials; the number of overlapping claims which may drag the
determination of the case for several years; and the insolvency of the
Legionnaires Enterprises, Inc. or the imminent danger of its insolvency due to
gross mismanagement of its officials as eloquently manifested by the
overlapping contracts with several parties which they have executed over the
same reparations goods,^[21]
and on April 22, 1964, Atty. Ramon M. Velayo was
appointed receiver of the Legionnaires Enterprises, Inc.^[22]

On April 24, 1964, the said receiver filed an urgent omnibus
motion in Civil Case No. 54912, seeking permission to intervene in said case
and asking the court to set aside its order of November 7, 1963, granting the
writ of preliminary mandatory injunction and thereafter, to direct the
Reparations Commission to deliver to him all the photographic materials
previously ordered to be delivered to Joaquin So.^[23]

On May 20, 1964,
the respondent Judge Gaudencio Cloribel
issued an order directing the Reparations Commission “to deliver the
photographic materials involved in this case to the receiver Atty. Ramon M. Velayo, in order that said receiver shall distribute the
same to the persons or parties entitled thereto, subject to the approval of the
Court.  Provided, however, that those who
had already paid for them or advanced expenses in connection herewith, should
be reimbursed for their money.”^[24]

In the meantime, the receiver used his good offices to bring
about a settlement of the conflicting claims of the parties.  On May 13, 1964, the parties, claiming to
have executed contracts with the Legionnaires Enterprises, Inc. for the
purchase of reparations goods under Resolution No. 396 of the Reparations
Commission, namely:  Joseph Cochingyan, Jr., Cesar A. Eguia,
Vicente B. Magno, Panay
Legionnaires En­terprises, Inc., Worldwide Trading & Development
Corporation, Keyser Mercantile Co., Inc., and Legionnaires Enterprises, Inc.,
executed a Compromise Agreement, the principal feature of which is that Cesar
A. Eguia, Vicente B. Magno,
Panay Legionnaires Enterprises, Inc., and Worldwide
Trading & Development Corporation have agreed to postpone the
implementation of their respective contracts with the Legionnaires Enterprises,
Inc. in consideration of certain undertakings and obligations assumed by Joseph
Cochingyan, Jr. the most notable of which is that the
said Joseph Cochingyan, Jr. shall file a bond to
answer for any damages that may be sustained by Joaquin So arising from breach
of contract, should his contract with the Legionnaires Enterprises, Inc. be
adjudged to be valid.^[25]

Upon motion of the receiver,^[26]
the respondent courts, in their respective orders of June 1, 1964, approved the aforementioned
Compromise Agreement.^[27]

On June 1, 1964,
the respondent Judge Gaudencio Cloribel
also granted the motion of the receiver seeking the delivery of the
photographic materials with a total value of $120,000.00 upon payment or the
invoice value thereof and other charges of the Reparations Commission.^[28]

Claiming that the respondent judges, in issuing the questioned
orders of May 20, 1964 and June 1, 1964, have acted without or in excess of
their jurisdiction or with grave abuse of discretion in gross violation of his
rights and to his grave and irreparable damage, and that there is no appeal,
nor any plain and adequate remedy in the ordinary course of law, Joaquin So
instituted the instant cases.

The Philippine Veterans Legion and Cesar P. Roces,
thereafter, sought leave,^[29]
and was allowed by this Court to intervene as
petitioners in the above-entitled cases.^[30]

As heretofore stated, the petitioner seeks the annulment of
certain orders of the respondent courts, ordering the Reparations Commission to
deliver the photographic materials involved in these cases to the receiver of
the Legionnaires Enterprises, Inc., who shall, in turn, distribute the same to
the parties, pursuant to the Compromise Agreement dated May 13, 1964, and to
enjoin the respondent courts from enforcing said orders.

Although a temporary restraining order was issued by this Court
on June 8, 1964, the said
temporary restraining order expired on July
1, 1964 and has not been renewed despite several motions filed by
the petitioner.^[31]
Such being the case, the receiver did in fact take delivery of the photographic
materials involved in these cases and delivered the same to Joseph Cochingyan, Jr. pursuant to the Compromise Agreement and
the order of the respondent Judge Gaudencio Cloribel, dated June 1, 1964,^[32]
so that this Court, on September 27, 1973, required the “petitioner and
all other affected parties, if any, to show cause, within ten (10) days from
notice, why the case at bar should not be dismissed for having become moot and
academic.”^[33]

The delivery of the photographic materials to the receiver and
the distribution of the same pursuant to the compromise agreement being an
accomplished fact, there is no other recourse but to dismiss the petitions
herein filed.

WHEREFORE, the above-entitled cases are hereby dismissed,
without costs.

SO ORDERED.

Barredo, (Acting Chairman), Antonio, Muñoz Palma, and
Martin, JJ., concur.

Fernando and Aquino, JJ., no part.

^[1]
p. 184, rollo.

^[2]
p. 359, rollo.

^[3]
p. 558, rollo.

^[4]
p. 562, rollo.

^[5]
p. 563, rollo.

^[6]
p. 514, rollo.

^[7]
p. 522, rollo.

^[8]
p. 54, rollo.

^[9]
p. 43, rollo.

^[10]
p. 65, rollo.

^[11]
p. 497, rollo.

^[12]
p. 58, rollo.

^[13]
p. 499, rollo.

^[14]
p. 419, rollo.

^[15] the complaint having been amended in the meantime, another
restraining order was issued by the court on November 27, 1963.

^[16]
p. 68, rollo.

^[17]
p. 69, rollo.

^[18]
p. 71, rollo.

^[19]
p. 74, rollo.

^[20]
pp. 89, 90, 535, rollo.

^[21]
pp. 376, 605, rollo.

^[22]
p. 384, rollo.

^[23]
p. 96, rollo.

^[24]
p. 107, rollo.

^[25]
p. 233, rollo.

^[26]
p. 118, rollo.

^[27]
pp. 160, 164, rollo.

^[28]
p. 166, rollo.

^[29]
p. 313, rollo.

^[30] See
petition, p. 582, rollo.

^[31]
See resolution of this Court, pp. 654, 845, rollo.

^[32]
See pp. 696, 817, rollo.

^[33]
p. 854, rollo.