Chapter 2 – Construction and Interpretation -Tax exemption or relief –

against the person claiming it

A. Nature and Purpose General Welfare Provisions –
liberally interpreted to give more
2.01 Construction defined powers to local government units
-Controversies, no law applies –
-Is the art or process of discovering and refer to customs and traditions
expounding the meaning and intention of the
authors of the law, where that intention is  Rules of Statcon have no binding effect on
rendered doubtful by reason of ambiguity in its the courts. Nor are they controlling in the
language or of the fact that the given case is not interpretation of laws. As instruments of
explicitly provided for in the law. construction, they may only be used to
-Is the drawing of the warranted conclusions clarify, not to defeat, legislative intent.
respecting subjects that lie beyond the direct
expression of the text, conclusions, which are in the 2.04 Purpose or object of construction
spirit, though not within the letter of the text.  The cardinal rule in the interpretation of
-Involves the exercise of choice by the judiciary all laws is to ascertain and give effect to,
the intent of the law.
2.02 Construction and interpretation distinguished  The object of all juridical interpretation of
 Interpretation is the art of finding the true a statute is to determine legislative, what
meaning and sense of any form of words intention is conveyed, either expressly or
 Construction is the process of drawing impliedly, by the language used, so far as
warranted conclusions not always it is necessary for ascertaining whether the
included in the direct expressions or particular case or state of facts presented
determining the application of words to to the court comes within it.
facts in litigation.
 However, in common usage, they are 2.05 Legislative Intent, generally
understood as having the same
signification.  Legislative intent is the essence of the law.
It is the spirit which gives life to
2.03 Rules of construction, generally legislative enactment.
 Courts will not follow the letter of the
 Rules of statutory construction are tools statue when it leads away from the true
used to ascertain legislative intent. intent of the legislature and to conclusions
 In enacting a statute, the legislative is inconsistent with the general purpose of
presumed to know the rules of statutory the act.
construction. The legislature enacts a law  More than one construction: that
with the end in view that it will, in case of construction should be adopted which will
doubt, be construed in accordance with the most tend to give effect to the manifest
settled principles of interpretation. intent of the legislature.
 Where there is ambiguity in the language  Intent defined: (1) Purpose and (2)
of a statute, courts employ canons of Meaning
statutory construction to ascertain its true o The ascertainment of legislative
intent and meaning. intent depends more on a
 Article 10 of New Civil Code: In case of determination of the purpose and
doubt in the interpretation or application object of the law.
of laws, it is presumed that the lawmaking
body intended right and justice to prevail. 2.06 Legislative Purpose
 Section 4 of the labor code: All doubts in
the implementation and interpretation in -It is the reason why a particular statute was
the provisions of this code, including its enacted by the legislature.
implementing rules and regulations, shall - Legislation – is an active instrument of
be resolved in favor of labor. government which, for purposes of interpretation
 Section 5 of the Republic Act No. 7160 means that laws have ends to be achieved and
Power of an LGU -interpreted in statues should be so construed so as not to defeat
its favor but to carry out such ends and purposes.
-Tax Cases – against the
government in favor of taxpayer
2.07 Legislative Meaning was enacted; what was the circumstances
-It is what the law, by its language, means. were under which the action was taken.
What it comprehends, what it covers or embraces, -The court may look to the purpose of the
what its limits or confines are. statute to be sub served, the reason or
-If there is ambiguity in the language used cause which induced the enactment of the
in a statue, its purpose may indicate the meaning of law, the mischief suppressed and the
the language and lead to what the legislative intent policy which dictated its passage.
is.
Last resort: the court may look into the
2.08 Graphical illustration effect of the law, but not otherwise
-Republic Act 809 – Sugar Act of 1952 because then, interpretation becomes
-in the absence of written milling agreements judicial legislation.
between the majority of planters and the millers of
sugarcane in any milling district in the Philippines, Case: Garcia vs Social Security
the unrefined sugar produced in that district from Commission: December 17, 2007
the milling by the sugar central of the sugarcane of Issue: Whether or not the only surviving
any sugarcane planter shall be divided between director of a corporation is liable for the
them in the proportion therein specified. Section9: whole collected and unremitted SSS
60% laborer, 40% planter constitution to the SSS, with penalties.
Ruling: The only surviving director of said
-Does this apply despite having a written corporation is liable, by applying the
agreement? pertinent provisions of the SSS law and
various rules of statutory construction
-Threatened not to plant sugar
Purpose: compel the continuous production of Petitioner: Distinguishes the penalties
sugar and to grant the planter’s laborers a share in from the unremitted or unpaid SSS
the increased participation of the planters in the premium contribution.
sugar produce.
Meaning: If follow literal rendition = defeat Every part of the statute must be
purpose to grant the laborer a share. : To give the interpreted with reference to the context,
laborers a share for as long as sugar is produced that every part of statute must be
and planters receive an increased participation. To considered together with the other parts,
make the act operative irrespective of whether and kept subservient to the general intent
there exists a milling agreement between the of the whole enactment
central and sugar planters.
Section 28(f) does not prevent paying
2.09 Matters Inquired into in construing a statute. unremitted liability sss premiums
-The object of the inquiry is not only to
know what the legislature meant by the language Law is clear – go lang
used, but also to determine whether the language Law is not clear – we need an
used sufficiently expresses that meaning. interpretation
-2 elements: It originates in intention and
is perfected by expression. Failure of the latter may Petitioner: a mere director or officer of an employer
defeat the dormer. corp and not necessarily a managing director or
officer can be held liable for the unpaid SSS
2.10 Where legislative intent is ascertained premium contributions.
-Primary source of legislative intent is the statute
itself Court: Still a director of company
-It has to be extracted from the statute as a whole
and not from an isolated part or particular provision Petitioner: ejusdem generis - denoting a rule for
thereof. interpreting statutes and other writings by assuming
that a general term describing a list of specific
-If the language is not obscure or ambiguous  terms denotes other things that are like the specific
meaning and intention must be determined from the elements.
language employed,
-If the language is ambiguous  -not to be construed in their widest extent, but are
-The court may look into its legislative to be held as applying only to persons or things of
history, in order to ascertain what was in the same kind or class as those specifically
the legislative mind at the time the statute mentioned.
“managing director, managing head, managing Case: Perfecto Vs Meer
partner.”  Art. 8 Sec. 9 1935 Constitution – SC’s
Court: No need to resort to statutory construction. interpretation: “shall receive such
compensation as may be fixed by law,
Petitioner: Section 31 of Corporation code – only which shall not be diminished during their
directors etc who participate in unlawful acts or are continuance in office” – exempt from
guilty of gross negligence and bad faith shall be income tax
personally liable, and that being a mere  Legislative passed RA 590 Sec. 13 – “no
stockholder, she is liable only to the extent of her salary whenever received by any public
subscription. officer of the Republic shall be considered
exempt from the income tax, payment of
Court: Section 31 Situation 4 which is hereby declared not to be a
diminution of his compensation fixed by
Interpretation: SSS is for social justice, it should be the Constitution or by law”
paid.  Source of confusion
 Violative of principle on separation of
B. Power to Construe powers
 RA 590 Sec 13 – unconstitutional
2.11. Construction is a juridical function  Art 8 Sec. 9 1935 – repealed by Art. 15
-The duty and power to interpret or construe a Sec. 6 1973 Constitution – “no salary or
statue or the constitution belong to the judiciary any form of emolument of any public
-While the legislative and executive departments, officer or employee, including
by enacting and enforcing a law, respectively, may constitutional officers, shall be exempt
construe or interpret the law, it is the court that from payment of income tax”
has the final word as to what the law means.  Thus, judiciary is not exempt from
payment of tax anymore.
-SC construes applicable laws in controversies Salaries diminished (NOPE) Legislature cannot
which are ripe for judicial resolution override its interpretation of the Constitution
provision
-Laws are interpreted always in the context of the
peculiar factual situation of each case. 2.13 When judicial interpretation may be set
Circumstances of time, place, event, person and aside
particularly attendant circumstances and actions -Interpretations is not so sacrosanct (can be
before, during and after the operative fact have modified)
taken their totality so that justice can be rationally -The Supreme Court itself may, in appropriate case,
and fairly dispensed change or overrule its previous construction
-Moot and academic
 Purpose has become stale Case: Salaries  Changed Constitution -> Nullify
 No practical relief can be granted o Relief or modify the judicial interpretation of a particular
has no practical effect provision
 General rule (on mootness) – dismiss the
case -The rule that the Supreme Court has the final word
o Exception: in the interpretation or construction of a statute
o If capable of repetition, yet merely means that the legislature cannot, by law or
evading review resolution, modify or annul the judicial
o Public interest requires its construction without modifying or repealing the
resolution very statute which has been the subject of
o Rendering decision on the merits construction
would be of practical value
-It can and it has done so by amending or repealing
the statute, the consequence of which is that the
2.12 Legislature cannot overrule judicial previous judicial construction of the statute is
construction modified or set aside accordingly
-While the legislature may indicate its construction
of a statute in the form of a resolution or 2.14 when court may construe statute
declaratory act, it cannot preclude the courts from
giving the statute a different interpretation. -When the language of statute is ambiguous, which
then leads to doubt as to how it should be
construed.
-Construction is the means by which the court -Administrative Code and LGC – not suppletory to
clarifies the doubt to arrive at the true intent of the Ombudsman Act
law. -An administrative agency tasked to implement a
statute may not construe it by expanding its
2.15 Condition sine qua non (necessary) before meaning where its provisions are clear and
courts can construe statutes; ambiguity defined. unambiguous

-Ambiguity -> Construed Land Bank vs CA

-Ambiguity means a condition of admitting two or • DAR interpreted “deposits” to include trust
more meanings, of being understood in more than accounts”
one way, or of referring to two or more things at
the same time. • SC held that “deposits” is limited only to cash
-A statute is ambiguous if it is susceptible of more and LBP bonds
than one interpretation.
-In such a case, the court should construe the •
statute and give it a meaning that is in accord with
its intent.

Case: Garcia Vs Social Security Commission

-The court cannot be made to accept an
interpretation that would defeat the intent of the
law and its legislators

2.16 Court may not construe where statute is

clear

- A statute that is clear and unambiguous is not

susceptible of interpretations.
-The first and fundamental duty of the court is to
apply the law
-Construction – very last function, which the court
should exercise
-Law is clear – no room for interpretation, only
room for application
- Courts cannot enlarge or limit the law if it is clear
and free from ambiguity (even if law is harsh or
onerous)
- A meaning that does not appear nor is intended or
reflected in the very language of the statute cannot
be placed therein by construction
Case: Manikan v. Tanodbayan
 Sec. 7 PD 1716-A – “sole police
authority” of EPZA officials may not be
construed as an exception to, or limitation
on, the authority of the Tanodbayan to
investigate complaints for violation of the
anti-graft law committed by the EPZA
officials
 EPZA’s power – not exclusive; “sole”
refers to police authority not employed to
describe its other power
Case: Lapid vs Ca
-Issue: Whether or not the decision of the
Ombudsman imposing a penalty of suspension of
one year without pay is immediately executor and
is not stayed by a timely appeal to the CA.
-In pari material – insofar as three laws related or
deal with public officers, the similarity ends there.