G.R. No. 203023.
June 17, 2015.
*
PHILIPPINE
COMMUNICATIONS
SATELLITE
CORPORATION
and
PHILCOMSAT
HOLDINGS
CORPORATION, petitioners,
vs.
SANDIGANBAYAN, 5
th
DIVISION
and
PRESIDENTIAL
COMMISSION
ON
GOOD GOVERNMENT, respondents.
Mercantile Law; Corporations; Intra-corporate Controversies; To
determine if a case involves an intra-corporate controversy, the
courts have applied two (2) tests: the relationship test and the nature
of the controversy test.
·To determine if a case involves an intra-
corporate controversy, the courts have applied two tests: the
relationship test
and the
nature of the controversy test
. Under the
relationship test
, the existence of any of the following relationships
makes the conflict intra-corporate: (1) between the corporation,
partnership or association and the public; (2) between the
corporation, partnership or association and the State insofar as its
franchise, permit or license to operate is concerned; (3) between the
corporation, partnership or association and its stockholders,
partners, members or officers; and (4) among the stockholders,
partners or associates themselves. On the other hand, the
nature of
the controversy test
dictates that „the controversy must not only be
rooted in the existence of an intra-corporate relationship, but must
as well pertain to the enforcement of the partiesÊ correlative rights
and obligations under the Corporation Code and the internal and
intra-corporate regulatory rules of the corporation.‰ A combined
application of the
relationship test
and the
nature of the controversy
test
has become the norm in determining whether a case is an intra-
corporate controversy, to be „heard and decided by the [b]ranches of
the RTC specifically designated by the Court to try and decide such
cases.‰
Same; Same; Same; Regional Trial Courts; Section 5 of
Presidential Decree (PD) No. 902-A conferred original and exclusive
jurisdiction over intra-corporate disputes on the Securities and
Exchange Commission (SEC). However, Section 5.2 of Republic Act
(RA) No. 8799, transferred the jurisdiction over such cases to courts
of general
_______________
*
SECOND DIVISION.
243
VOL. 759, JUNE 17, 2015
243
Philippine Communications Satellite Corporation vs.
Sandiganbayan, 5th Division
jurisdiction, or the appropriate Regional Trial Court (RTC).
·
As such, it is clear that the jurisdiction lies with the regular courts
and not with the
Sandiganbayan
. Section 5 of Presidential Decree
No. 902-A conferred original and exclusive jurisdiction over intra-
corporate disputes on the SEC. However, Section 5.2 of R.A. 8799,
transferred the jurisdiction over such cases to courts of general
jurisdiction, or the appropriate RTC. Petitioners, however, further
argue that the case must be decided by the
Sandiganbayan
because
the RTC is coequal to the PCGG and therefore would have no
authority to issue an order to the latter.
