In Re: Atty. Fernando Arguelles Jr. vs Maj. Balajadia

In Re: Atty. Fernando Arguelles Jr. vs Maj. Balajadia Jr.

G.R. No. 167211

March 14, 2006

Facts:

  The Senate Committee scheduled a hearing on March 15, 2005 at 10:30 a.m. to conduct an investigation, in aid of legislation, regarding the alleged illegal sale of unregistered and high risk securities by the Standard Chartered Bank.

 The officers of Standard Chartered Bank were subpoenaed to appear before the Senate Committee hearing scheduled on March 15, 2005. At the hearing, Atty. Fernando Arguelles, Jr. and Atty. Reynaldo Geronimo were present as their counsel.

The minutes of the hearing show that Standard Chartered Bank’s counsel provided the Senate Committee with a copy of the petition for prohibition. The bank’s counsel also filed an urgent motion to suspend or defer the proceedings of the Senate Committee apparently to await the action of the Court on the petition for prohibition.

During the hearing, Senator Juan Ponce Enrile declared that “there is one portion of this petition that casts a slur on this Committee and the proceedings of the Committee.”  He asked Paul Simon Morris, Chief Executive Officer of the Standard  Chartered Bank, who verified the petition for prohibition, whether he endorsed this allegation, thus:      

THE COMMITTEE ACTED IN GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OF JURISDICTION BY CONDUCTING AN INVESTIGATION, PURPORTEDLY ‘IN AID OF LEGISLATION,’ BUT IN REALITY IN AID OF COLLECTION OF A HANDFUL OF CLIENTS OF THE STANDARD CHARTERED BANK FOR LOSSES WHICH WERE FOR THEIR ACCOUNT AND RISK WHICH COLLECTION IS WITHIN THE PROVINCE OF THE COURT RATHER THAN OF THE LEGISLATURE.^[1]

Morris admitted that he endorsed the allegation that the investigation was “in aid of collection” upon the advice of their lawyers.  He stated that he acted in good faith, and apologized for his error of judgment.

Senator Juan Ponce Enrile moved to cite the officers of Standard Chartered Bank and their counsel, Atty. Fernando Arguelles, Jr. and Atty. Reynaldo Geronimo, for contempt for making the allegation.

The Senate Committee took two breaks and resumed at 12:00nn. Senator Edgardo Angara, Chairperson of the Senate Committee, issued an Order directing respondent Major General Jose Balajadia, Jr., sergeant-at-arms of the Senate, to detain for direct contempt of the Committee the officers of Standard Chartered Bank and their counsel, Atty. Fernando Arguelles, Jr. and Atty. Reynaldo Geronimo, for a period of not more than six hours.

  The  persons who were  detained in a room at the Senate then filed this petition for habeas corpus, alleging that the Committee acted in violation of the Constitution and without jurisdiction. They reasoned that any comment on, or criticism of, the conduct of the Committee is protected by freedom of expression  as guaranteed in Section 4, Article III of the Constitution

   On March 18, 2005, petitioners filed a Manifestation and Motion stating that they were released from the custody of the Senate by the Office of the Sergeant-at-Arms on March 15, 2005 at 5:56 p.m. Notwithstanding their release, petitioners submitted that it is imperative that the issues involved in this case be resolved, because they are of unprecedented and transcendental importance and they involve the impact of the exercise of the powers of Congress upon human rights.

ISSUE:

            Whether or not filing of Petition for habeas corpus is still necessary.

RULING:

           

No. The Petition has become moot.

The singular function of a petition for habeas corpus is to protect and secure the basic freedom of physical liberty.  Petitioners have been released.  The SC ruled that while the issues raised by petitioners are important, it is not appropriate to resolve them now in these proceedings.    This is all the more so considering that the only respondent here is Maj. Gen. Jose Balajadia, Jr., the Senate sergeant-at-arms, impleaded in that capacity for holding petitioners in custody.  The Senate Committee itself has not been made a respondent and, therefore, has not been given the opportunity to be heard on the issues sought to be resolved.