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declared in its decision, in view of the

evidence before it, that his estate was
financially able to maintain and operate
the ice plant. The aforesaid right of P. O.
F. to prosecute said application to its
final conclusion was one which by its

74
777
ANGEL T. LIMJOCO petitioner, vs.
INTESTATE ESTATE OF PEDRO O.
FRAGANTE, deceased, respondent. VOL. 80, APRIL 27, 1948 777

Limjoco vs. Intestate of Fragante

1. PUBLIC SERVICE COMMISSION ;
CERTIFICATE OF PUBLIC nature did not lapse through his death.
CONVENIENCE ; RlGHT OF ESTATE Hence, it constitutes a part of the assets
OF DECEDENT TO PROSECUTE of his estate, f or such a right was
APPLICATION; CASE AT BAR.—If P. property despite the possibility that in
O. F. had not died, there can be no the end the commission might have
question that he would have had the denied the application, although under
right to prosecute his application for a the facts of the case, the commission
certificate of public convenience to its granted the application in view of the
final conclusion. No one would have financial ability of the estate to
denied him that right. As declared by maintain and operate the ice plant.
the commission in its decision, he had Petitioner, in his memorandum of
invested in the ice plant in question March 19, 1947, admits (p. 3) that a
P35,000, and from what the commission certificate of public convenience once
said regarding his other properties and granted "as a rule, should descend to his
business, he would certainly have been estate as an asset." Such certificate
financially able to maintain and operate would certainly be property, and the
said plant had he not died. His right to acquire such a certificate, by
transportation business alone was complying with the requisites of the law,
netting him about P1,440 monthly. He belonged to the decedent in his lifetime,
was a Filipino citizen and continued to
be such till his demise. The commission
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and survived to his estate and judicial citizenship, and for not considering it as
administrator after his death. likewise extended for the purposes of
the aforesaid unfinished proceeding
2. ID.; ID.; ID.; ESTATE OF DECEDENT, before the Public Service Commission.
A PERSON; CASE AT BAR.—Within The outcome of said proceeding, if
the philosophy of the present legal successful, would in the end inure to the
system and within the framework of the benefit of the same creditors and the
constitution, the estate of P. O. F. heirs. Even in that event petitioner
should be considered an artificial or could not allege any prejudice in the
juridical person for the purposes of the legal sense, any more than he could
settlement and distribution of his estate have done if F. had lived longer and
which, of course, include the exercise obtained the desired certificate. The
during the judicial administration fiction of such extension of his
thereof of those rights and the citizenship is grounded upon the same
fulfillment of those obligations of his principle, and motivated by the same
which survived after his death. One of reason, as the fiction of the extension of
those rights was the one involved in his his personality. The fiction is made
pending application before the Public necessary to avoid the injustice of
Service Commission in the instant case, subjecting his estate, creditors and
consisting in the prosecution of said heirs, solely by reason of his death, to
application to its final conclusion. An the loss
injustice would ensue from the opposite
course.
778
3. ID..; ID.; ID.; ID.; CITIZENSHIP OF
DECEDENT EXTENDED TO His
EsTATE; CASE AT BAR.—If by legal 778 PHILIPPINE REPORTS ANNOTATED
fiction the personality of P. O. F. is Limjoco vs. Intestate of Fragante
considered extended so that any debts or
obligations left by, and surviving, him of the investment amounting to P35,000,
may be paid, and any surviving rights which. he already made in the ice plant,
may be exercised for the benefit of his not counting the other expenses
creditors and heirs, respectively, there is occasioned by the instant proceeding,
no sound and cogent reason for denying
the application of the same fiction to his
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from the Public Service Commission to provisions of section 15 of Commonwealth

this court. Act No. 146, as amended, a certificate of
public convenience be issued to the
PETITION for review of a judgment of the Intestate Estate of the deceased Pedro
Public Service Commission. Ibañez, Fragante, authorizing said Intestate
Deputy Commissioner. Estate through its Special or Judicial
The facts are stated in the opinion of the Administrator, appointed by the proper
court. court of competent jurisdiction, to maintain
Angel Limjoco, jr. and Delfin L. and operate an ice plant with a daily
Gonzales for petitioner, productive capacity of two and one half
Bienvenido A. Tan for respondent. tons (2-1/2) in the Municipality of San
Juan and to sell the ice produced from said
HILADO, J.: plant in the said Municipality of San Juan
and in the Municipality of Mandaluyong,
Under date of May 21, 1946, the Public
Rizal, and in
Service Commission, through Deputy
Commissioner Fidel Ibañez, rendered its 779
decision in case No. 4572 of Pedro O.
Fragante, as applicant for a certificate of
VOL. 80, APRIL 27, 1948 779
public convenience to install, maintain and
operate an ice plant in San Juan, Rizal, Limjoco vs. Intestate of Fragante
whereby said commission held that the
evidence therein showed that the public Quezon City", subject to the conditions
interest and convenience will be promoted therein set forth in detail (petitioner's
in a proper and suitable manner "by brief, pp. 33-34).
authorizing the operation and maintenance Petitioner makes four assignments of
of another ice plant of two and one-half (2- error in his brief as follows:
1/2) tons in the municipality of San Juan;
that the original applicant Pedro O. "1. The decision of the Public Service
Fragante was a Filipino citizen at the time Commission is not in accordance
of his death; and that his intestate estate is with law.
financially capable of maintaining the "2. The decision of the Public Service
proposed service". The commission, Commission is not reasonably
therefore, overruled the opposition filed in supported by evidence.
the case and ordered "that under the
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"3. The Public Service Commission transportation business alone was netting
erred in not giving petitioner and him about P1,440 monthly. He was a
the Ice and Cold Storage Industries Filipino citizen and continued to be such
of the Philippines, Inc., as existing till his demise. The commission declared in
operators, a reasonable opportunity its decision, in view of the evidence before
to meet the increased demand. it, that his estate was financially able to
"4. The decision of the Public Service maintain and operate the ice plant. The
Commission is an unwarranted aforesaid right of Pedro O.
departure from its announced 780
policy with respect to the
establishment and operation of ice
plant." (Pp. 1-2, petitioner's brief.) 780 PHILIPPINE REPORTS
ANNOTATED
In his argument petitioner contends that it Limjoco vs. Intestate of Fragante
was error on the part of the commission to
allow the substitution of the legal Fragante to prosecute said application to
representative of the estate of Pedro O. its final conclusion was one which by its
Fragante for the latter as party applicant nature did not lapse through his death.
in the case then pending before the Hence, it constitutes a part of the assets of
commission, and in subsequently granting his estate, for such a right was property
to said estate the certificate applied for, despite the possibility that in the end the
which is said to be in contravention of law. commission might have denied the
If Pedro O. Fragante had not died, there application, although under the facts of the
can be no question that he would have had case, the commission granted the
the right to prosecute his application application in view of the financial ability
before the commission to its final of the estate to maintain and operate the
conclusion. No one would have denied him ice plant. Petitioner, in his memorandum
that right. As declared by the commission of March 19, 1947, admits (page 3) that a
in its decision, he had invested in the ice certificate of public convenience once
plant in question P35,000, and from what granted "as a rule, should descend to his
the commission said regarding his other estate as an asset". Such certificate would
properties and business, he would certainly certainly be property, and the right to
have been financially able to maintain and acquire such a certificate, by complying
operate said plant had he not died. His with the requisites of the law, belonged to
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the decedent in his lifetime, and survived VOL. 80, APRIL 27, 1948 781
to his estate and judicial administrator Limjoco vs. Intestate of Fragante
after his death.
If Pedro O. Fragante had in his lifetime
Rule 88, section 2, provides that the
secured an option to buy a piece of land
executor or administrator may bring or
and during the life of the option he died, if
defend actions, among other cases, for the
the option had been given him in the
protection of the property or rights of the
ordinary course of business and not out of
deceased which survive, and it says that
special consideration for his person, there
such actions may be brought or defended
would be no doubt that said option and the
"in the right of the deceased",
right to exercise it would have survived to
Rule 82, section 1, paragraph (a),
his estate and legal representatives. In
mentions among the duties of the executor
such a case there would also be the
or administrator, the making of an
possibility of failure to acquire the property
inventory of all goods, chattels, rights,
should he or his estate or legal
credits, and estate of the deceased which
representative fail to comply with the
shall come to his possession or knowledge,
conditions of the option. In the case at bar
or to the possession of any other person f or
Pedro O. Fragante's undoubted right to
him.
apply for and acquire the desired
In his commentaries on the Rules of
certificate of public convenience—the
Court (Volume II, 2nd ed., pages 366, 367),
evidence established that the public
the present Chief Justice of this Court
needed the ice plant—was under the law
draws the following conclusion from the
conditioned only upon the requisite
decisions cited by him:
citizenship and economic ability to
maintain and operate the service. Of "Therefore, unless otherwise expressly provided
course, such right to acquire or obtain such by law, any action affecting the property or
certificate of public convenience was rights (underscoring supplied) of a deceased
subject to failure to secure its objective person which may be brought by or against him
through nonfulfillment of the legal if he were alive, may likewise be instituted and
conditions, but the situation here is no prosecuted by or against the administrator,
different from the legal standpoint from unless the action is for recovery of money, debt
that of the option in the illustration just or interest thereon, or unless, by its very
given. nature, it cannot survive, because death
extinguishes the right * * *".
781
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It is true that a proceeding upon an which are not material. The same eminent
application for a certificate of public commentator says in the cited volume (p.
convenience before the Public Service 45) that article 336 of the Civil
Commission is not an "action". But the He has been deficiently drafted in that
foregoing provisions and citations go to it is not sufficiently expressive of all
prove that the decedent's rights which by incorporeal rights which are also property
their nature are not extinguished by death for juridical purposes.
go to make up a part and parcel of the Corpus Juris (Vol. 50, p. 737) states that
assets of his estate which, being placed in the broad sense of the term, property
under the control and management of the includes, among other things, "an option",
executor or administrator, can not be and "the certificate of the railroad
exercised but by him in representation of commission permitting the operation of a
the estate for the benefit of the creditors, bus line", and on page 748 of the same
devisees, or legatees, if any, and the heirs volume we read:
of the decedent. And if the right involved
happens to consist in the prosecution of an "However, these terms (real property, as estate
unfinished proceeding upon an application or interest) have also been declared to include
for a certificate of public convenience of the every species of title, inchoate or complete, and
deceased before the Public Service embrace rights which lie in contract, whether
Commission, it is but logical that the legal executory or executed." (Italics supplied.)

782 Another important question raised by

petitioner is whether the estate of Pedro O.
Fragante is a "person" within the meaning
782 PHILIPPINE REPORTS of the Public Service Act.
ANNOTATED Words and Phrases, First Series, (Vol. 6,
Limjoco vs. Intestate of Fragante p. 5325), states the following doctrine in
the jurisdiction of the State of Indiana:
representative be empowered and entitled
"As the estate of a decedent is in law regarded
in behalf of the estate to make the right
as a person, a forgery committed after the death
effective in that proceeding.
of the man whose name purports to be signed to
Manresa (Vol. III, 6th ed., p. 11) says
the instrument may be prosecuted as with the
that No. 10 of article 334 and article 336 of
intent to defraud the estate. Billings vs. State,
the Civil Code, respectively, consider as
immovable and movable things rights
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107 Ind., 54, 55, 6 N. E. 914, 7 N. E. 763, 57 the law attributes the capacity of having rights
Am. Rep. 77." and duties. The latter class of artificial persons
is recognized only to a limited extent in our law.
The Supreme Court of Indiana in the Examples are the estate of a bankrupt or
decision cited above had before it a case of deceased person.' 2 Rapalje & L. Law Dict. 954.
forgery committed after the death of one Our own cases inferentially recognize the
Morgan for the purpose of defrauding his correctness of the definition given by the
estate. The objection was urged that the authors from whom we have quoted, for they
information did not aver that the forgery declare that it is sufficient, in pleading a claim
was committed with the intent to defraud against a decedent's estate, to designate the
any person. The Court, per Elliott, J., defendant as the estate of the deceased person,
disposed of this objection as follows: naming him. Ginn vs. Collins, 43 Ind. 271.
Unless we accept this definition as correct,
"* * * The reason advanced in support of this
there would be a failure of justice in cases
proposition is that the law does not regard the
where, as here, the forgery is committed after
estate of a decedent as a person.
the death of the person whose name is forged;
783 and this is a result to be avoided if it can be
done consistent with principle. We perceive no
difficulty in avoiding such a result; for, to our
VOL. 80, APRIL 27, 1948 783
minds, it seems reasonable that the estate of a
Limjoco vs. Intestate of Fragante decedent should be regarded as an artificial
person. It is the creation of law for the purpose
This intention (contention) cannot prevail. The of enabling a disposition of the assets to be
estate of a decedent is a person in legal properly made, and, although natural persons
contemplation. 'The word "person", says Mr. as heirs, devisees, or creditors, have an interest
Abbot, 'in its legal signification, is a generic in the property, the artificial creature is a
term, and includes artificial as well as natural distinct legal entity. The interest which natural
persons,' 2 Abb. Dict. 271; Douglas vs. Pacific, persons have in it is not complete until there
etc., Co., 4 Cal. 304; Planters', etc., Bank vs. has been a due administration; and one who
Andrews, 8 Port. (Ala.) 404. It is said in another forges the name of the decedent to an
work that 'persons are of two kinds: natural and instrument purporting to be a promissory note
artificial. A natural person is a human being. must be regarded as having intended to def
Artificial persons include (1) a collection or raud the estate of the decedent, and not the
succession of natural persons forming a natural persons having diverse interests in it,
corporation; (2) a collection of property to which since he cannot be presumed to have known
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who those persons were, or what was the nature deceased Lazaro Mota, and this Court gave
of their respective interests. The fraudulent judgment in favor of said estate along with
intent is against the artificial person,—the the other plaintiffs in these words:
estate,—and not the natural persons who have
direct or contingent interests in it." (107 Ind. "* * * the judgment appealed from must be
54, 55, 6 N. E. 914-915.) affirmed so far as it holds that defendants
Concepcion and Whitaker are indebted to the
In the instant case there would also be a plaintiffs in the amount of P245,804.69 * * *."
failure of justice unless the estate of Pedro
O. Fragante is considered a "person", for Under the regime of the Civil Code and
the quashing of the proceedings for no before the enactment of the Code of Civil
other reason than his death would entail Procedure, the heirs of a deceased person
prejudicial results to his investment were considered in contemplation of law as
amounting to P35,000.00 the continuation of his personality by
virtue of the provision of article 661 of the
784 first Code that the heirs succeed to all the
rights and obligations of the decedent by
the mere fact of his death. It was so held by
784 PHILIPPINE REPORTS
ANNOTATED this Court in Barrios vs. Dolor, 2 Phil., 44,
46. However, after the enactment of the
Limjoco vs. Intestate of Fragante Code of Civil Procedure, article 661 of the
Civil Code was abrogated, as held in
as found by the commission, not counting Suiliong & Co. vs. Chio-Taysan, 12 Phil. 13
the expenses and disbursements which the 22. In that case, as well as in many others
proceeding can be presumed to have decided by this Court after the innovations
occasioned him during his lifetime, let introduced by the Code of Civil Procedure
alone those defrayed by the estate in the matter of estates of deceased
thereafter. In this jurisdiction there are persons, it has been the constant doctrine
ample precedents to show that the estate of that it is the estate or the mass of property,
a deceased person is also considered as rights and assets left by the decedent,
having legal personality independent of the instead of the heirs directly, that becomes
heirs. Among the most recent cases may be vested and charged with his rights and
mentioned that of "Estate of Mota vs. obligations which survive after his demise.
Concepcion, 56 Phil., 712, 717, wherein the The heirs were formerly considered as
principal plaintiff was the estate of the the continuation of the decedent's
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personality simply by legal fiction, for they Fragante can be considered a "citizen of
might not be even of his flesh and blood— the Philippines" within the meaning of sec-
the reason tion 16 of the Public Service Act, as
amended, particularly the proviso thereof
785
expressly and categorically limiting the
power of the commission to issue
VOL. 80, APRIL 27, 1948 785 certificates of public convenience or
certificates of public convenience and
Limjoco vs. Intestate of Fragante
necessity "only to citizens of the
Philippines or of the United States or to
was one in the nature of a legal exigency corporations, copartnerships, associations,
derived from the principle that the heirs or joint-stock companies constituted and
succeeded to the rights and obligations of organized under the laws of the
the decedent. Under the present legal Philippines", and the further proviso that
system, such rights and obligations as sixty per centum of the stock or paid-up
survive after death have to be exercised capital of such entities must belong
and f ulfilled only by the estate of the entirely to citizens of the Philippines or of
deceased. And if the same legal fiction the United States.
were not indulged, there would be no Within the philosophy of the present
juridical basis for the estate, represented legal system, the underlying reason for the
by the executor or administrator, to legal fiction by which, for certain purposes,
exercise those rights and to fulfill those the estate of a deceased person is
obligations of the deceased. The reason and considered a "person" is the avoidance of
purpose for indulging the fiction is injustice or prejudice resulting from the
identical and the same in both cases. This impossibility of exercising such legal rights
is why according to the Supreme Court of and fulfilling such legal obligations of
Indiana in Billings vs. State, supra, citing
2 Rapalje & L. Dictionary, 954, among the 786
artificial persons recognized by law figures
"a collection of property to which the law
786 PHILIPPINE REPORTS
attributes the capacity of having rights and
ANNOTATED
duties", as for instance, the estate of a
bankrupt or deceased person. Limjoco vs. Intestate of Fragante
Petitioner raises the decisive question of
whether or not the estate of Pedro O.
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the decedent as survived after his death Fragante should be considered an artificial
unless the fiction is indulged. Substantially or juridical person for the purposes of the
the same reason is assigned to support the settlement and distribution of his estate
same rule In the jurisdiction of the State of which, of course, include the exercise
Indiana, as announced in Billings vs. State, during the judicial administration thereof
supra, when the Supreme Court of said of those rights and the f ulfillment of those
State said: obligations of his which survived after his
death. One of those rights was the one
"* * * It seems reasonable that the estate of a involved in his pending application before
decedent should be regarded as an artificial the Public Service Commission in the
person. It is the creation of law for the purpose instant case, consisting in the prosecution
of enabling a disposition of the assets to be of said application to its final conclusion.
properly made * * *." As stated above, an injustice would ensue
from the opposite course.
Within the framework and principles of the
How about the point of citizenship? If by
constitution itself, to cite just one example,
legal fiction his personality is considered
under the bill of rights it seems clear that
extended so that any debts
while the civil rights guaranteed therein in
the majority of cases relate to natural 787
persons, the term "person" used in section
1 (1) and (2) must be deemed to include
artificial or juridical persons, for otherwise VOL. 80, APRIL 27, 1948 787
these latter would be without the Limjoco vs. Intestate of Fragante
constitutional guarantee against being
deprived of property without due process of or obligations left by, and surviving, him
law, or the immunity from unreasonable may be paid, and any surviving rights may
searches and seizures. We take it that it be exercised for the benefit of his creditors
was the intendment of the framers to and heirs, respectively, we find no sound
include artificial or juridical, no less than and cogent reason for denying the
natural, persons in these constitutional application of the same fiction to his
immunities and in others of similar nature. citizenship, and for not considering it as
Among these artificial or juridical persons likewise extended for the purposes of the
figure estates of deceased persons. Hence, aforesaid unfinished proceeding before the
we hold that within the framework of the Public Service Commission. The outcome of
constitution, the estate of Pedro O. said proceeding, if successful, would in the
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end inure to the benefit of the same obtained from the commission the
creditors and the heirs. Even in that event certificate for which he was applying. The
petitioner could not allege any prejudice in situation has suffered but one change, and
the legal sense, any more than he could that is, his death. His estate was that of a
have done if Fragante had lived longer and Filipino citizen. And its economic ability to
obtained the desired certificate. The fiction
788
of such extension of his citizenship is
grounded upon the same principle, and
motivated by the same reason, as the 788 PHILIPPINE REPORTS
fiction of the extension of his personality. ANNOTATED
The fiction is made necessary to avoid the
Limjoco vs. Intestate of Fragante
injustice of subjecting his estate, creditors
and heirs, solely by reason of his death, to
appropriately and adequately operate and
the loss of the investment amounting to
maintain the service of an ice plant was
P35,000, which he had already made .in
the same that it received from the decedent
the ice plant, not counting the other
himself. In the absence of a contrary
expenses occasioned by the instant
showing, which does not exist here, his
proceeding, from the Public Service
heirs may be assumed to be also Filipino
Commission to this Court.
citizens; and if they are not, there is the
We can perceive no valid reason for
simple expedient of revoking the certificate
holding that within the intent of the
or enjoining them from inheriting it.
Constitution (Article IV), its provisions on
Upon the whole, we are of opinion that
Philippine citizenship exclude the legal
for the purposes of the prosecution of said
principle of extension above adverted to. If
case No. 4572 of the Public Service
for reasons already stated our law indulges
Commission to its final conclusion, both
the fiction of extension of personality, if for
the personality and citizenship of Pedro O.
such reasons the estate of Pedro O.
Fragante must be deemed extended, within
Fragante should be considered an artificial
the meaning and intent of the Public
or juridical person herein, we can find no
Service Act, as amended, in harmony with
justification for refusing to declare a like
the constitution: it is so adjudged and
fiction as to the extension of his citizenship
decreed.
for the purposes of this proceeding.
Decision affirmed, without costs. So
Pedro O. Fragante was a Filipino
ordered.
citizen, and as such, if he had lived, in view
of the evidence of record, he would have
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Moran, C. J., Parás, Pablo, Bengzon, VOL. 80, APRIL 27, 1948 789
Briones, Padilla, and Tuason, JJ., concur. Limjoco vs. Intestate of Fragante
PARÁS, J.:
The main question in this case is whether
I hereby certify that Mr. Justice Feria the estate of Pedro O. Fragante fulfills the
voted with the majority. citizenship requirement. To our mind, the
question can be restated by asking whether
PERFECTO, J., dissenting: the heirs of Pedro O. Fragante fulfill the
citizenship requirement of the law.
Commonwealth Act No. 146 reserves to The estate is an abstract entity. As
Filipino citizens the right to obtain a such, its legal value depends on what it
certificate of public convenience to operate represents. It is a device by which the law
an ice plant in San Juan, Rizal. The gives a kind of personality and unity to
limitation is in accordance with section 8 of undetermined tangible persons, the heirs.
Article XIV of the Constitution which They inherit and replace the deceased at
provides the very moment of his death. As there are
"No franchise, certificate, or any other form of procedural requisites for their
authorization for the operation of a public identification and determination that need
utility shall be granted except to citizens of the time for their compliance, a legal fiction
Philippines or to corporations or other entities has been devised to represent them. That
organized under the laws of the Philippines, legal fiction is the estate, a liquid condition
sixty per centum of the capital of which is in process of solidification.
owned by citizens of the Philippines, nor shall The estate, therefore, has only a
such franchise, certificate, or authorization be representative value. What the law calls
exclusive in character or for a longer period estate is, as a matter of fact, intended to
than fifty years. No franchise or right shall be designate the heirs of the deceased. The
granted to any individual, firm, or corporation, question, therefore, in this case, boils down
except under the condition that it shall be to the citizenship of the heirs of Fragante.
subject to amendment, alteration, or repeal by There is nothing in the record to show
the Congress when the public interest so conclusively the citizenship of the heirs of
requires." Fragante. If they are Filipino citizens, the
action taken by the Public Service
789 Commission should be affirmed. If they are
not, it should be reversed.
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Petitioner alleges that the estate is just

a front or dummy for aliens to go around
the citizenship constitutional provision. It
is alleged that Gaw Suy, the special
administrator of the estate, is an alien.
We are of opinion that the citizenship of
the heirs of Fragante should be determined
by the Commission upon evidence that the
party should present. It should also
determine the dummy question raised by
petitioner.
We are of opinion and so vote that the
decision of the Public Service Commission
of May 21, 1946, be set aside and that the
Commission be instructed to receive

790

790 PHILIPPINE REPORTS

ANNOTATED
Gil vs. Gil III

evidence on the above factual questions

and render a new decision accordingly.
Decision affirmed.

______________

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