Philippine Supreme Court Resolutions > Year 2007 > August 2007 Resolutions > [G.R. No. 178088 : August 07, 2007] REPUBLIC OF THE PHILIPPINES, PETITIONER, VERSUS SUBIC INTERNATIONAL AIR CHARTER, INC., RESPONDENT. :

Quoted hereunder, for your information, is a resolution of the Court En Banc dated August 7, 2007

G.R. No. 178088 - REPUBLIC OF THE PHILIPPINES, petitioner, versus SUBIC INTERNATIONAL AIR CHARTER, INC., respondent.

The Republic of the Philippines, petitioner, through the Solicitor General, filed the instant Petition for Review on Certiorari assailing the Resolutions dated February 10, 2006 and May 29, 2007 of the Sandiganbayan (First Division) in Civil Case No. 0033-A, entitled "REPUBLIC OF THE PHILIPPINES, petitioner, versus EDUARDO M. COJUANGCO, JR., FERDINAND E. MARCOS, IMELDA R. MARCOS, JOSE R. ELEAZAR, JR., MARIA CLARA LOBREGAT, JUAN PONCE-ENRILE, DANILO URSUA, HERMINIGILDO C. ZAYCO, respondents; SUBIC INTERNATIONAL AIR CHARTER, INC., petitioner-in-intervention; COCOFED, ET AL. AND BALLARES, ET AL., class action movants."

The petition alleges that on July 31, 1987, petitioner, through the Philippine Commission on Good Government (PCGG), with the assistance of the Solicitor General, filed with the Sandiganbayan a complaint for reconveyance, reversion, accounting, and restitution of ill-gotten wealth of the late former President Ferdinand E. Marcos, his family, relatives, business partners, dummies, factotums, and associates, consisting of assets obtained through the use of coconut levy funds. The complaint was docketed as Civil Case No. 0033.

Upon the Sandiganbayan's suggestion, petitioner subdivided Civil Case No. 0033 into eight (8) complaints. Accordingly, on March 7, 1995, petitioner filed with the Sandiganbayan, among others, its Third Amended Complaint, docketed as Civil Case No. 0033-A. Included in the assets involved in this case is a Learjet allegedly belonging to Eduardo M. Cojuangco, Jr.

On October 11, 2004, Subic International Air Charter, Inc. (Subic Air), respondent herein, filed with the Sandiganbayan a motion for intervention alleging that an aircraft described as "Gates Learjet Model 35-A, Serial No. 338, Registry No. N61063" was erroneously sequestered by the PCGG for being an ill-gotten wealth of Eduardo M. Cojuangco, Jr.; that the sequestration order is void as the aircraft is actually owned by Hemix International, Ltd. (Hemix), a corporation organized under Hong Kong law; that the aircraft was leased by Hemix to UCPB under a Lease Agreement dated January 10, 1984; that prior to the expiration of the lease, the aircraft was sequestered by the PCGG as part of the ill-gotten wealth of Eduardo Conjuangco, Jr.; that in August of 2000, UCPB, with the conformity of the PCGG, engaged the services of Subic Air for the repair and rehabilitation of the aircraft; that Subic Air undertook such services and spent its own money in the total sum of US$2,461,355.90; that Subic Air was never paid for its services, thus it has a mechanic's lien on the aircraft.

Petitioner opposed Subic Air's motion for intervention, contending that (a) the subject matter of Civil Case No. 0033-A is the ownership of UCPB shares in which Subic Air has no actual, material and direct legal interest; (b) the motion was filed more than a year from the time the Sandiganbayan rendered its Partial Summary Judgment, in violation of Section 2, Rule 19 of the 1997 Rules of Civil Procedure, as amended, providing that the motion to intervene "may be filed at any time before rendition of judgment by the trial court"; and (c) movant did not pay the required docket fees.

On February 10, 2006, the Sandiganbayan issued a Resolution granting Subic Air's motion for intervention.

Petitioner filed a motion for reconsideration but it was denied by the Sandiganbayan in its Resolution dated May 29, 2007.

On July 11, 2003, the Sandiganbayan rendered a Partial Summary Judgment declaring that the disputed UCPB shares are owned by the government.

In its Resolution of June 5, 2007, the Sandiganbayan considered its Partial Summary Judgment "final and appealable."

Petitioner contends that respondent Subic Air has no legal interest in the subject matter of Civil Case No. 0033-A and that its motion for intervention was filed late. Hence, the Sandiganbayan erred in granting the motion.

The petition must fail.

Sections 1 and 2, Rule 19 of the 1997 Rules of Civil Procedure, as amended, provide:

Section 1. Who may intervene. - A person who has a legal interest in the matter in litigation, or in the success of either of the parties, or an interest against both, or is so situated as to be adversely affected by a distribution or other disposition of property in the custody of the court or of an officer thereof may, with leave of court, be allowed to intervene in the action. The court shall consider whether or not the intervention will unduly delay or prejudice the adjudication of the rights of the original parties, and whether or not the intervenor's rights may be fully protected in a separate proceeding.

Section 2. Time to intervene. - The motion to intervene may be filed at any time before rendition of judgment by the trial court. A copy of the pleading-in-intervention shall be attached to the motion and served on the original parties.

Contrary to petitioner's contention, respondent Subic Air has legal interest in the subject matter of Civil Case No. 0033-A. The aircraft itself � over which respondent claims to have a valid and existing mechanic's lien � is among the assets involved in the litigation. In fact, petitioner admitted in the instant petition that the assets include, not only the questioned UCPB shares, but also the Learjet owned by Eduardo M. Cojuangco, Jr.

Moreover, records show that respondent filed its motion for intervention with the Sandiganbayan during the course of the proceedings in Civil Case No. 0033A.

Indeed, we find no reversible error committed by the Sandiganbayan in its assailed Resolutions.

WHEREFORE, we DENY the instant petition.