Hon. Reynaldo M. Laigo, in his capacity as Presiding Judge of the Regional Trial Court, National Capital Region, Makati City, Branch 56, Gliceria Ayad, Sahlee Delos Reyes and Antonio P. Huete, Jr. G.R. No. 188639. September 02, 2015

Securities and Exchange Commission Vs. Hon. Reynaldo M. Laigo, in his capacity as Presiding Judge of the Regional Trial Court, National Capital Region, Makati City, Branch 56, Gliceria Ayad, Sahlee Delos Reyes and Antonio P. Huete, Jr. G.R. No. 188639. September 02, 2015
https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/61219
Mendoza
== Issues ==
I. Whether or not the Trust Funds of Legacy form part of its Corporate Assets.
II. Whether
 or not respondent Trial Court Judge committed grave abuse of discretion
 amounting to lack or excess of jurisdiction in issuing the herein 
assailed Order dated June 26, 2009.
III. Whether or not the claims of planholders are to be treated differently from the claims of other creditors of Legacy. '''
IV. Whether or not Legacy retains ownership over the trust funds assets despite the execution of trust agreements.
V. Whether
 or not the insolvency court, presided by respondent Trial Court Judge, 
has the authority to enjoin petitioner SEC from further validating the 
claims of Legacy's planholders and treating them as if they are ordinary
 creditors of Legacy.
VI. Whether or not the provision of 
the Pre-need Code regarding liquidation is in the nature of a procedural
 law that can be retroactively applied to the case at bar.'''
== Ruling ==
* In effect, Legacy merely agreed to facilitate the payment of the benefits from the trust fund to the intended beneficiaries, acting as a conduit or an agent of the trustee in the enforcement of the trust agreement. Under the general principles of trust, a trustee, by the terms of the agreement may be permitted to delegate to agents or to co-trustees or to other persons the administration of the trust or the performance of act which could not otherwise be properly delegated.
* Enjoining the SEC from validating the claims against the trust fund is grave abuse of discretion for the insolvency court has no authority to order the reversion of properties that do not form part of Legacy's insolvent estate.
* It recognizes the distinction between claims against the pre-need company and those against the trust fund. Section 52 (b) states that liquidation "proceedings in court shall proceed independently of proceedings in the Commission for the liquidation of claims, and creditors of the pre-need company shall have no personality whatsoever in the Commission proceedings to litigate their claims against the trust funds."
* Jurisdiction over claims filed against the trust fund
* The transitory provisions of the Pre-Need Code, however, provide that "[notwithstanding any provision to the contrary, all pending claims, complaints and cases (referring to pre-need contract and trust claims) filed with the SEC shall be continued in its full and final conclusion."
* Pre-Need Code is curative andremedial in character and, therefore,can be applied retroactively
* If the rule takes away a vested right, it is not procedural. If the rule creates a right such as the right to appeal, it may be clarified as a substantive matter; but if it operates as a means of implementing an existing right then the rule deals merely with procedure.
* In sum, improvidently ordering the inclusion of the trust fund in Legacy's insolvency estate without regard to the avowed state policy of protecting the consumer of pre-need plans, as laid down in the SRC, the New Rules, and the Pre-Need Code, constitutes grave abuse of discretion. The RTC should have known, and ought to know, the overarching consideration the Congress intended in requiring the establishment of trust funds - to uphold first and foremost the interest of the planholders.
== Decisions ==
WHEREFORE, the petition is GRANTED. The June 26, 2009 Order of the Regional Trial Court, Branch 56, Makati City, is declared NULL and VOID.
The Securities and Exchange Commission is directed to process the claims of legitimate planholders with dispatch.