Cited Laws
TL;DR — Ruling
WHEREFORE, finding the Motion for Reconsideration to be of merit, the assailed Decision is hereby SET ASIDE, without prejudice to the filing of similar petition by PHIVIDEC though (sic) a proper legal officer or counsel." [15] In the petition, petitioners maintain that PHIVIDEC has secured the written concurrences of the COA and the OGCC to its engagement of Atty. Adaza as its counsel in the expropriation case, substantially complying with the requirements of COA Circular No.
WHEREFORE, finding the Motion for Reconsideration to be of merit, the assailed Decision is hereby SET ASIDE, without prejudice to the filing of similar petition by PHIVIDEC though (sic) a proper legal officer or counsel." [15] In the petition, petitioners maintain that PHIVIDEC has secured the written concurrences of the COA and the OGCC to its engagement of Atty. Adaza as its counsel in the expropriation case, substantially complying with the requirements of COA Circular No. 86-255 and Memorandum Circular No. 9. Petitioners also argue that the subsequent filing of the certification of non-forum shopping before the RTC constituted substantial compliance with the law. A review of the laws involving the role of the OGCC as official counsel of all GOCCs from the time the office was made separate and distinct from the Office of the Solicitor General is in order. This is necessary to determine the nature and extent of the OGCC's legal representation in behalf of GOCCs and the public policy, if any, as regards the engagement by GOCCs of the services of private lawyers. In 1959, Republic Act No. 2327, which declared the position of Government Corporate Counsel separate and distinct from that of the Solicitor General, was enacted. Four years later, it was amended by Republic Act No. 3838. The amendatory law made the Government Corporate Counsel the principal law officer of GOCCs. It also imposed the prohibition on GOCCs from hiring private counsels. The full text of the amendments reads: "Section 1. x x x [ The Government Corporate Counsel ] shall be the principal law office of all government-owned or controlled corporations. To enable him to discharge, his functions as such, it shall be the duty of all said corporations to refer to him all important legal questions for opinion, advice and determination, all proposed contracts, and all important court cases for his services. He shall, moreover, exercise control and supervision over all the legal divisions maintained separately by said corporations. No government-owned or controlled corporation shall hire a private law practitioner to handle any of its legal cases without the written consent of the Government Corporate Counsel or of the Secretary of Justice ." (Emphasis supplied) Thus, beginning with the year 1963, the general rule disallowing GOCCs from hiring private lawyers was put in place, subject to the exception that the GOCC may do so with the written consent of the Government Corporate Counsel or the Secretary of Justice. Republic Act No. 2327 was further amended by Republic Act No. 6000, [16] but it did not change the general rule and the exception thereto. Then, in 1978, President Marcos in the exercise of his legislative powers [17] promulgated Presidential Decree No. 1415 (P.D. No. 1415), which further delineated the powers and functions of the Office of the Government Corporate Counsel. This time, the previously established exception to the rule prohibiting the hiring of private lawyers was