Ekistics Philippines, Inc. vs Bangko Sentral ng Pilipinas

G.R. No. 250440 – 903 Phil. 314 – Political Law – Constitutional Law – The Judicial Department – The Supreme Court – Hierarchy of Courts – Doctrine of Judicial Courtesy

In 2011, Banco Filipino was placed by the Bangko Sentral ng Pilipinas (BSP) under liquidation. The majority stockholders filed a petition with the Court of Appeals to question the validity of BSP’s action; this case was later elevated to the Supreme Court. Meanwhile, Ekistics Philippines, Inc. (EKI), a minority stock holder of Banco Filipino, filed a separate liquidation case with the RTC. It did not implead the BSP. Meanwhile, the BSP made moves to auction the assets of Banco Filipino. EKI filed with the RTC a motion to restrain the BSP from doing so. The RTC granted the motion. The Philippine Deposit Insurance Corporation (PDIC), party in the liquidation case before the RTC, appealed to the CA the grant of the restraining order. The CA initially ruled in favor of the PDIC. But upon motion for reconsideration by EKI, it reversed its original decision and sustained the restraining order issued by the RTC. The CA explained that since the validity of BSP’s action to liquidate the assets of Banco Filipino is being questioned in a separate case pending before the Supreme Court, it was best for the CA to observe judicial courtesy by waiting for the outcome of the case in the Supreme Court.

ISSUE: Whether or not it was proper for the CA to observe judicial courtesy in this case.

HELD: No. The principle of judicial courtesy is applied when the suspension of the proceedings in the lower court is necessary in order to avoid mooting the matter raised in the higher court This principle is the exception rather than the rule.

The case pending before the SC questioning the validity of the placement by the BSP of Banco Filipino under liquidation is a separate and distinct case from that filed by EKI.

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