Court of Appeals upholds NPC ownership of contested Manansala mural

MANILA, Philippines - The National Press Club (NPC) has won the tug-of-war with the Government Service Insurance System (GSIS) over a Vicente Manansala mural that was sold to a private gallery in 2007.

The Court of Appeals (CA) upheld in a 20-page decision the NPC’s right over the contested mural, although it did not resolve the issue on the ownership of the NPC building from where it was taken.

“Being the owner of the mural, NPC has all the rights to dispose of the same in whatever manner it desires. NPC cannot be made liable, in any way, in exercising what is merely a propriety act,” ruled the appellate court’s seventh division.

The GSIS had claimed ownership of the mural, saying it is an immovable part of the NPC building which it owns by virtue of Transfer Certificate of Title No. 265236.

The NPC, on the other hand, insisted on its right over the property through Letter of Instructions No. 500 issued by the late strongman Ferdinand Marcos in 1977 directing GSIS to donate to NPC the subject property. The NPC, then under Roy Mabasa as president, sold the mural to Heritage Galleries for P10 million.

The Pasay City regional trial court Branch 112, in a decision on July 16, 2009, sided with NPC and not only granted it ownership of the mural but also directed GSIS to donate the building to the organization. This prompted GSIS to elevate the case before the CA.

In its ruling promulgated last July 25, the appeals court affirmed the findings of the RTC. It upheld the arguments of the NPC that the mural was a movable object not intended to be part of the wall of the building and that its theme, “Freedom of the Press,” shows its connection to the organization.

“It is without doubt that the mural is a movable property – a personal property which can be taken by NPC whether or not it owns the building,” the ruling, penned by Associate Justice Rodil Zalameda, stated. Associate Justice Amelita Tolentino and Normandie Pizarro concurred in this ruling. The CA also pointed out the admission of GSIS that the mural was a personal property donated to the NPC when it sought recovery of personal property and damages by filing a writ of replevin.

The CA, however, granted GSIS’ petition on nullifying the RTC ruling. It stressed that while the RTC was correct in granting NPC the right over the mural, it had erred in handing down the ruling due to a technical ground.

The CA said the lower court lacked jurisdiction and had abused its discretion, explaining that it should have collected the docket fee first before granting the counterclaim of NPC on the mural. The CA said collecting docket fee from NPC was necessary because its counterclaim was permissive in nature – not compulsory – which means its prayer to compel GSIS to donate the building to the press club can be filed in a separate action without constituting res judicata or final judgment.