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    George W. Batchelder vs. The Central Bank of The Philippines G.R. No. L-25071 March 29, 1972 Facts

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    Fayda Cariaga
    George Batchelder, an American contractor, surrendered his dollar earnings from construction contracts to the Central Bank of the Philippines as required by law. He sought to reacquire 90% of those dollars from the bank at the preferential exchange rate to import goods, but the bank denied his request. Batchelder argued the bank was legally obligated to resell the dollars at the preferred rate. The Supreme Court ruled that while the bank was intended to achieve currency stability and related objectives, obligations only arise from specific legal provisions, and no law explicitly obligated the bank to resell dollars at a preferential rate in this case. The bank's circulars do not by themselves create legal obligations. Therefore, the bank did

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    George W. Batchelder vs. The Central Bank of The Philippines G.R. No. L-25071 March 29, 1972 Facts

    Uploaded by

    Fayda Cariaga
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    George Batchelder, an American contractor, surrendered his dollar earnings from construction contracts to the Central Bank of the Philippines as required by law. He sought to reacquire 90% of those dollars from the bank at the preferential exchange rate to import goods, but the bank denied his request. Batchelder argued the bank was legally obligated to resell the dollars at the preferred rate. The Supreme Court ruled that while the bank was intended to achieve currency stability and related objectives, obligations only arise from specific legal provisions, and no law explicitly obligated the bank to resell dollars at a preferential rate in this case. The bank's circulars do not by themselves create legal obligations. Therefore, the bank did

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    George Batchelder, an American contractor, surrendered his dollar earnings from construction contracts to the Central Bank of the Philippines as required by law. He sought to reacquire 90% of those dollars from the bank at the preferential exchange rate to import goods, but the bank denied his request. Batchelder argued the bank was legally obligated to resell the dollars at the preferred rate. The Supreme Court ruled that while the bank was intended to achieve currency stability and related objectives, obligations only arise from specific legal provisions, and no law explicitly obligated the bank to resell dollars at a preferential rate in this case. The bank's circulars do not by themselves create legal obligations. Therefore, the bank did

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    3K views1 page

    George W. Batchelder vs. The Central Bank of The Philippines G.R. No. L-25071 March 29, 1972 Facts

    Uploaded by

    Fayda Cariaga
    George Batchelder, an American contractor, surrendered his dollar earnings from construction contracts to the Central Bank of the Philippines as required by law. He sought to reacquire 90% of those dollars from the bank at the preferential exchange rate to import goods, but the bank denied his request. Batchelder argued the bank was legally obligated to resell the dollars at the preferred rate. The Supreme Court ruled that while the bank was intended to achieve currency stability and related objectives, obligations only arise from specific legal provisions, and no law explicitly obligated the bank to resell dollars at a preferential rate in this case. The bank's circulars do not by themselves create legal obligations. Therefore, the bank did

    Copyright:

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    GEORGE W. BATCHELDER vs. THE CENTRAL BANK OF THE PHILIPPINES G.R. No.

    L-25071 March 29, 1972 Facts: Monetary Board Resolution No. 857 requires Filipino and American resident contractors for constructions in U.S. military bases in the Philippines to surrender to the Central Bank their dollar earnings under their respective contracts but were entitled to utilize 90% of their surrendered dollars for importation at the preferred rate of commodities for use within or outside said U.S. military bases. Resolution 695 moreover, denies their right to reacquire at the preferred rate ninety per cent (90%) of the foreign exchange the sold or surrendered earnings to Central Bank for the purpose of determining whether the imports against proceeds of contracts entered into prior to April 25, 1960 are classified as dollar-to-dollar transactions or not. George Batchelder, an American Citizen permanently residing in the Philippines who is engaged in the Construction Business, surrendered to the Central Bank his dollar earnings amounting to U.S. $199,966.00. He compels Central Bank of the Philippines to resell to him $170,210.60 at the preferred rate of exchange of two Philippine pesos for one American dollar, more specifically P2.00375 which was denied by the court. He then contended that said decision failed to consider that if there was no contract obligating the bank to resell to him at the preferred rate, the judgment of the lower court can and should nevertheless be sustained on the basis of there being such an obligation arising from law. Issue: Whether or not Central Bank has the obligation arising from law to resell the US$154,094.56 to Batchelder at the preferred rate. Held: Central Bank was intended to attain basic objectives in the field of currency and finance. It shall be the responsibility of the Central Bank of the Philippines to administer the monetary and banking system of the Republic. It shall be the duty of the Central Bank to use the powers granted to it under this Act to achieve the following objectives: (a) to maintain monetary stability in the Philippines; (b) to preserve the international value of the peso and the convertibility of the peso into other freely convertible currencies; and (c) to promote a rising level of production, employment and real income in the Philippines." It is, of course, true that obligations arise from 1) law; 2) contracts; 3) quasi-contracts; 4) acts or omissions punished by law and 5) quasi-delicts. One of the sources an obligation then is a law. A legal norm could so require that a particular party be chargeable with a prestation or undertaking to give or to deliver or to do or to render some service. It is an indispensable requisite though that such a provision, thus in fact exists. There must be a showing to that effect. As early as 1909 in Pelayo v. Lauron, Court through Justice Torres, categorically declared: "Obligation arising from law are not presumed." For in the language of Justice Street in Leung Ben v. O'Brien, a 1918 decision, such an obligation is "a creation of the positive law." They are ordinarily traceable to code or statute. It is true though, as noted in the motion for reconsideration following People v. Que Po Lay, that a Central Bank circular may have the force and effect of law, especially when issued in pursuance of its quasi-legislative power. That of itself, however, is no justification to conclude that it has thereby assumed an obligation.

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