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prohibition would lie since it would be useless and a waste of time to go ahead
with the proceedings. (Philippine International Fair, Inc., Et Al., v. Ibaez, Et Al.,
50 Off. Gaz. 1036; Enrique v. Macadaeg, Et Al., 47 Off. Gaz. 1207; see also San
Beda College v. CIR, 51 Off. Gaz. 5636.) (University of Sto Tomas v. Villanueva, L-
13748, 30 October 1959.)" Similarly, in Edward J. Nell Co. v. Cubacub, L-20843,
EN BANC 23 June 1965. 14 SCRA 419, This Court held:" . . . It is a settled rule that the
[G.R. No. L-28882. May 31, 1971.] jurisdiction of a court over the subject-matter is determined by the allegations in
TIME, INC., Petitioner, v. HON. ANDRES REYES, as Judge of the Court of the complaint; and when a motion to dismiss is filed for lack of jurisdiction those
First Instance of Rizal, ELISEO S. ZARI, as Deputy Clerk of Court, Branch allegations are deemed admitted for purposes of such motion, so that it may be
VI, Court of First Instance of Rizal, ANTONIO J. VILLEGAS and JUAN resolved without waiting for the trial. Thus it has been held that the consideration
PONCE ENRILE, Respondents. thereof may not be postponed in the hope that the evidence may yield other
Sycip, Salazar, Luna, Manalo & Feliciano for Petitioner. qualifying or concurring data which would bring the case under the courts
Angel C. Cruz Law Office for Respondents. jurisdiction."
On motion of the respondents-plaintiffs, the 2. Whether or not Republic Act 4363 is applicable to
respondent judge, on 25 November 1967, granted action against a foreign corporation or non-resident
them leave to take the depositions "of Mr. Anthony defendant.
Gonzales, Time-life International", and "Mr. Cesar B.
Enriquez, Muller & Phipps (Manila) Ltd.", in Provisions of Republic Act No. 4363, which are
connection with the activities and operations in the relevant to the resolution of the foregoing issues,
Philippines of the petitioner, and, on 27 November read, as follows:
1967, issued a writ of attachment on the real and "SECTION 1. Article three hundred sixty of the
personal estate of Time, Inc. Revised Penal Code, as amended by Republic Act
Numbered Twelve hundred and eighty-nine, is further
Petitioner received the summons and a copy of the amended to read as follows:
complaint at its offices in New York on 13 December
2
ARTICLE 360. Persons responsible. Any person public officer, whether his office is in Manila or not in
who shall publish, exhibit, or cause the publication or Manila, at the time of the commission of the offense.
exhibition of any defamation in writing or by similar If the offended party is a public officer with office in
means, shall be responsible for the same. the City of Manila, the proviso limits him to two (2)
choices of venue, namely, "in the Court of First
The author or editor of a book or pamphlet, or the Instance of the City of Manila or in the city or
editor or business manager of a daily newspaper, province where the libelous article is printed and first
magazine or serial publication, shall be responsible published . . ."
for the defamations contained therein to the extent
as if he were the author thereof. The complaint lodged in the court of Rizal by
respondents does not allege that the libelous article
The criminal and civil action for damages in cases of was printed and first published in the province of
written defamations as provided for in this chapter, Rizal and, since the respondents-plaintiffs are public
shall be filed simultaneously or separately with the officers with offices in Manila at the time of the
court of first instance of the province or city where commission of the alleged offense, it is clear that the
the libelous article is printed and first published or only place left for them wherein to file their action is
where any of the offended parties actually resides at the Court of First Instance of Manila.
the time of the commission of the offense; Provided,
however, That where one of the offended parties is a The limitation of the choices of venue, as introduced
public officer whose office is in the City of Manila at into the Penal Code through its amendments by
the time of the commission of the offense, the action Republic Act 4363, was intended "to minimize or limit
shall be filed in the Court of First Instance of the City the filing of out-of-town libel suits" to protect an
of Manila or of the city or province where the libelous alleged offender from "hardships, inconveniences and
article is printed and first published, and in case such harassments" and, furthermore, to protect "the
public officer does not hold office in the City of interest of the public service" where one of the
Manila, the action shall be filed in the Court of First offended parties is a public officer. "4 The intent of
Instance of the province or city where he held office the law is clear: a libeled public official must sue in
at the time of the commission of the offense or where the court of the locality where he holds office, in
the libelous article is printed and first published and order that the prosecution of the action should
in case one of the offended parties is a private interfere as little as possible with the discharge of his
individual, the action shall be filed in the Court of official duties and labors. The only alternative allowed
First Instance of the province or city where he him by law is to prosecute those responsible for the
actually resides at the time of the commission of the libel in the place where the offending article was
offense or where the libelous matter is printed and printed and first published. Here, the law tolerates
first published; Provided, further, That the civil action the interference with the labeled officers duties only
shall be filed in the same court where the criminal for the sake of avoiding unnecessary harassment of
action is filed and vice versa; Provided, furthermore, the accused. Since the offending publication was not
That the court where the criminal action or civil printed in the Philippines, the alternative venue was
action for damages is first filed, shall acquire not open to respondent Mayor Villegas of Manila and
jurisdiction to the exclusion of other courts; And Undersecretary of Finance Enrile, who were the
provided finally, That this amendment shall not apply offended parties.
to cases of written defamations, the civil and/or
criminal actions which have been filed in court at the But respondents-plaintiffs argue that Republic Act No.
time of the effectivity of this law. 4363 is not applicable where the action is against
x x x non-resident defendant, as petitioner Time, Inc., for
several reasons. They urge that, in enacting Republic
"SECTION 3. This Act shall take effect only if and Act No. 4363, Congress did not intend to protect non-
when, within thirty days from its approval, the resident defendants as shown by Section 3, which
newspapermen in the Philippines shall organize, and provides for the effectivity of the statute only if and
elect the members of, a Philippine Press Council, a when the "newspapermen in the Philippines" have
private agency of the said newspapermen, whose organized a "Philippine Press Council" whose function
function shall be to promulgate a Code of Ethics for shall be to promulgate a Code of Ethics for "them"
them and the Philippine press, investigate violations and "the Philippine press" ; and since a non-resident
thereof, and censure any newspaperman or defendant is not in a position to comply with the
newspaper guilty of any violation of the said Code, conditions imposed for the effectivity of the statute,
and the fact that such Philippine Press Council has such defendant may not invoke its provisions; that a
been organized and its members have been duly foreign corporation is not inconvenienced by an out-
elected in accordance herewith shall be ascertained of-town libel suit; that it would be absurd and
and proclaimed by the President of the Philippines." incongruous, in the absence of an extradition treaty,
for the law to give to public officers with office in
Under the first proviso in section 1, the venue of a Manila the second option of filing a criminal case in
civil action for damages in cases of written the court of the place where the libelous article is
defamations is localized upon the basis of, first, printed and first published if the defendant is a
whether the offended party or plaintiff is a public foreign corporation and that, under the "single
officer or a private individual; and second, if he is a publication" rule which originated in the United
3
States and imported into the Philippines, the rule was because the number of causes of action that may be
understood to mean that publications in another available to the respondents-plaintiffs is not here in
state are not covered by venue statutes of the forum. issue. We are here confronted by a specific venue
statute, conferring jurisdiction in cases of libel
The implication of respondents argument is that the against public officials to specified courts, and no
law would not take effect as to non-resident other. The rule is that where a statute creates a right
defendants or accused. We see nothing in the text of and provides a remedy for its enforcement, the
the law that would sustain such unequal protection to remedy is exclusive; and where it confers jurisdiction
some of those who may be charged with libel. The upon a particular court, that jurisdiction is likewise
official proclamation that a Philippines Press Council exclusive, unless otherwise provided. Hence, the
has been organized is made a pre-condition to the venue provisions of Republic Act No 4363 should be
effectivity of the entire Republic Act No. 4363, and no deemed mandatory for the party bringing the action,
terms are employed therein to indicate that the law unless the question of venue should be waived by the
can or will be effective only as to some, but not all, of defendant, which was not the case here. Only thus
those that may be charged with libeling our public can the policy of the Act be upheld and maintained.
officers. Nor is there any reason why the inapplicability of one
alternative venue should result in rendering the other
The assertion that a foreign corporation or a non- alternative also inapplicable.
resident defendant is not inconvenienced by an out-
of-town suit is irrelevant and untenable, for venue The dismissal of the present petition is asked on the
and jurisdiction are not dependent upon convenience ground that the petitioner foreign corporation failed
or inconvenience to a party; and moreover, venue to allege its capacity to sue in the courts of the
was fixed under Republic Act No. 4363, pursuant to Philippines. Respondents rely on Section 69 of the
the basic policy of the law that is, as previously Corporation law, which provides:
stated, to protect the interest of the public service "SECTION 69. No foreign corporation or corporations
when the offended party is a public officer, by formed, organized, or existing under any laws other
minimizing as much as possible any interference with than those of the Philippines shall be permitted to . . .
the discharge of his duties. maintain by itself or assignee any suit for the
recovery of any debt, claim, or demand whatever,
That respondents-plaintiffs could not file a criminal unless it shall have the license prescribed in the
case for libel against a non-resident defendant does section immediately preceding . . .." . .;
not make Republic Act No. 4363 incongruous of
absurd, for such inability to file a criminal case They also invoke the ruling in Marshall-Wells Co. v.
against a non-resident natural person equally exists Elser & Co., Inc.7 that no foreign corporation may be
in crimes other than libel. It is a fundamental rule of permitted to maintain any suit in the local courts
international jurisdiction that no state can by its laws, unless it shall have the license required by the law,
and no court which is only a creature of the state, can and the ruling in Atlantic Mutual Ins. Co., Inc. v. Cebu
by its judgments or decrees, directly bind or affect Stevedoring Co., Inc.8 that "where . . . the law denies
property or persons beyond the limits of that state.5 to a foreign corporation the right to maintain suit
Not only this, but if the accused is a corporation, no unless it has previously complied with a certain
criminal action can lie against it,6 whether such requirement, then such compliance or the fact that
corporation be resident or non-resident. At any rate, the suing corporation is exempt therefrom, becomes
the case filed by respondents-plaintiffs is not a a necessary averment in the complaint." We fail to
criminal cases but a civil case for damages. see how these doctrines can be a propos in the case
at bar, since the petitioner is not "maintaining any
50 Am. Jur. 2d 659 differentiates the "multiple suit" but is merely defending one against itself; it did
publication" and "single publication" rules (invoked not file any complaint but only a corollary defensive
by private respondents) to be as follows: petition to prohibit the lower court from further
"The common law as to causes of action for tort proceeding with a suit that it had no jurisdiction to
arising out of a single publication was to the effect entertain.
that each communication of written or printed matter
was a distinct and separate publication of a libel Petitioners failure to aver its legal capacity to
contained therein, giving rise to a separate cause of institute the present petition is not fatal, for . . .
action. This rule (multiple publication rule) is still
followed in several American jurisdictions, and seems "A foreign corporation may, by writ of prohibition,
to be favored by the American Law Institute. Other seek relief against the wrongful assumption of
jurisdictions have adopted the single publication jurisdiction. And a foreign corporation seeking a writ
rule which originated in New York, under which any of prohibition against further maintenance of a suit,
single integrated publication, such as one edition of a on the ground of want of jurisdiction, is not bound by
newspaper, book, or magazine, or one broadcast, is the ruling of the court in which the suit was brought,
treated as a unit, giving rise to only one cause of on a motion to quash service of summons, that it has
action, regardless of the number of times it is jurisdiction. "9
exposed to different people. . ."
It is also advanced that the present petition is
These rules are not pertinent in the present case, premature, since respondent court has not definitely
4
ruled on the motion to dismiss, nor held that it has (1) The under Article 360 of the Revised Penal Code,
jurisdiction, but only argument is untenable. The as amended by Republic Act No. 4363, actions for
motion to dismiss was predicated on the respondent damages by public officials for libelous publications
courts lack of jurisdiction to entertain the action; and against them can only be filed in the courts of first
the rulings of this Court are that writs of certiorari or instance of the city or province where the offended
prohibition, or both, may issue in case of a denial or functionary held office at the time of the commission
deferment of action on such a motion to dismiss for of the offense, in case the libelous article was first
lack of jurisdiction. printed or published outside the Philippines.
"If the question of jurisdiction were not the main (2) That the action of a court in refusing to rule, or
ground for this petition for review by certiorari, it deferring its ruling, on a motion to dismiss for lack of
would be premature because it seeks to have a jurisdiction over the subject matter, or for improper
review of an interlocutory order. But as it would be venue, is in excess of jurisdiction and correctible by
useless and futile to go ahead with the proceedings if writ of prohibition or certiorari sued out in the
the court below had no jurisdiction this petition was appellate Court, even before trial on the merits is
given due course. (San Beda v. CIR, 51 O.G. 5636, had.
5638).
WHEREFORE, the writs applied for are granted: the
While it is true that action on a motion to dismiss respondent Court of First Instance of Rizal is declared
may be deferred until the trial and an order to that without jurisdiction to take cognizance of its Civil
effect is interlocutory, still where it clearly appears Case No. 10403; and its orders issued in connection
that the trial judge or court is proceeding in excess or therewith are hereby annulled and set aside.
outside of its jurisdiction, the remedy of prohibition Respondent court is further commanded to desist
would lie since it would be useless and a waste of from further proceedings in Civil Case No. 10403
time to go ahead with the proceedings. (Philippine aforesaid. Costs against private respondents, Antonio
International Fair, Inc., Et. Al. v. Ibaez, Et Al., 50 Off. J. Villegas and Juan Ponce Enrile.
Gaz. 1036; Enrique v. Macadaeg, Et Al., 47 Off. Gaz.
1207; see also San Beda College v. CIR, 51 Off. Gaz. The writ of preliminary injunction heretofore issued
5636.) (University of Sto. Tomas v. Villanueva, L- by this Supreme Court is made permanent.
13748, 30 October 1959.)"
Concepcion, C.J., Dizon, Makalintal, Zaldivar,
Similarly, in Edward J. Nell Co. v. Cubacub, L-20843, Fernando, Teehankee, Barredo, Villamor and
23 June 1965, 14 SCRA 419, this Court held: Makasiar, JJ., concur.
Castro, J., took no part.
". . . It is a settled rule that the jurisdiction of a court Endnotes:
over the subject-matter is determined by the
allegations in the complaint; and when a motion to 1. It informs that Time-Life International is not made
dismiss is filed for lack of jurisdiction those a co-petitioner for the reason that it is not a juridical
allegations are deemed admitted for purposes of person but a mere division of Time, Inc. (Petition,
such motion, so that it may be resolved without footnote at page 6).
waiting for the trial. Thus It has been held that the 2. Petitioner alleged that it had offered to stipulate in
consideration thereof may not be postponed in the the court below that its "activities in the Philippines
hope that the evidence may yield other qualifying or could be considered doing business" but respondents
concurring data which would bring the case under the refused to stipulate (Petition, page 6), although it
courts jurisdiction." stated in its memorandum in lieu of oral argument,
that it is "a corporation not doing business in the
To the same effect are the rulings in, Ruperto v. Philippines." (Memorandum, dated 31 July 1968, page
Fernando, 83 Phil. 943; Administrator of Hacienda 1).
Luisita Estate v. Alberto, L-12133, 21 October 1958.