Mustang Lumber v CA

Mustang Lumber, Inc., a domestic corporation

Secretary Factoran, DENR Secretary
Atty. Robles, Chief of SAID (Special Actions and Investigation Division)
Ri Chuy Po, President and General Manager of Mustang Lumber

SC decision consolidated:
FIRST CIVIL CASE- petition for certiorari and prohibition with a prayer for a restraining order
or a preliminary injunction against Factoran and Robles
SECOND CIVIL CASE- petition for certiorari and prohibition
CRIMINAL CASE- filed against Ri Chuy Po (President and General Manager of Mustang) for
violation of sec. 68 of PD 705

FACTS
-

Authorities received a tip that Mustang had a huge stockpile of narra

flitches, shorts and slabs (authorities concerned because stockpile
might have been illegally obtained)
1 April 1990: SAID organized a stake out of Mustangs lumberyard
SAID team apprehended a truck coming out of the lumberyard which
contained lauan and almaciga lumber, driver could not produce
pertinent documents for the cargo so truck impounded
3 April 1990: SAID obtained a warrant for the lumberyard, seized four
truckloads of narra shorts, trimmings and slabs; narra lumber; as well
as 200,000 board feet of lumber and shorts of various species
including almaciga and supa
4 April: SAID returned and put under administrative seizure (property
not confiscated, but owner prohibited from disposing until further
notice) what remained of the stockpile (311,000 board feet of
almaciga, supa and lauan lumber)
Owner not able to produce pertinent documents for the stockpile
23 April: Secretary Factoran suspends Mustangs license as per Chief
Robles recommendation
3 May: property put under administrative seizure now confiscated
Mustang files FIRST CIVIL CASE with the RTC of Manila:
o questions 1 April seizure of truck w/o a court order

o questions FActorans 23 April suspension order,

o says May 3 confiscation violative of Sec. 2 Art. 3 of Consti
17 September 1990: Mustang caught by DENR agents still operating,
though license was suspended- DENR effected a constructive seizure
of 20,000 board feet of lauan lumber
Mustang files SECOND CIVIL CASE with the RTC of Manila:
o 17 September seizure is not legal
5 June 1991: Information filed by DOJ against Ri Chuy Po (President
and General Manager of Mustang) for violation of sec. 68 of PD 705CRIMINAL CASE:
o Ri Chuy Po possessed truckloads of almaciga and lauan as well
as 200,000 board feet of lumber of various species w/o the
documents required under our laws
Ri files a motion to quash/suspend proceedings of CRIMINAL CASE
because PD 705 punishes possession of timber, not lumber

LC decisions:
FIRST CIVIL CASE
o Search and seizure of truck was valid although w/o a warrant
because search of a moving vehicle falls under one of the
exceptions for warrantless searches
o 4 April seizure is valid although warrant was issued on 3 April
because warrants are valid for 10 days under the ROC
o Seizure of almaciga, supa and lauan lumber valid although these
were not mentioned in the warrant because the the executing
officer is not required to ignore contraband found during search
o Challenge of the 23 April 1990 suspension order is moot and
academic because the license of Mustang expired on 25
September 1990
SECOND CIVIL CASE
o Warrantless search and seizure justified under law
o Petitioner was unlawfully selling lumber because its license was
suspended
o Petitioner did not exhaust all administrative remedies
CRIMINAL CASE

o Motion to quash is granted

o Possession of lumber is not punishable by law, lumber is not
stated in the law

CA decisions:
FIRST CIVIL CASE
o Petitioners appeal dismissed for lack of merit
SECOND CIVIL CASE
o Petition for certiorari and prohibition dismissed for lack of merit

SC ruling:

Did Ri Chuy Po violate PD 705? YES

o Even if lumber is not contemplated by the law, possession of
lumber is not solely the subject matter of the CRIMINAL CASE,
o Ri did not have the required documents for truckloads of
almaciga and lauan, and 200,000 board feet of lumber and
shorts of various species
o Almaciga and lauan are not lumber and thus fall under the
purview of PD 705 under forest products or timbers

Is possession of lumber penalized under PD 705? YES

o Lumber is included in the term timber
o Basis:
paragraph (aa), section 3, PD 705
websters dictionary
statutory construction:
in the absence of legislative intent to the contrary,
words and phrases should be given their ordinary
meaning
law does not make a distinction between raw
(timber) and processed (lumber), neither should weubi lex non distinguit

FIRST CIVIL CASE- petition w/o merit

SECOND CIVIL CASE- petition w/o merit

CRIMINAL CASE- RTC decision overturned; respondent judge committed
grave abuse of discretion in granting motion to quash