When the North Reclamation Area Project was implemented, Mariano Ponce, the owner of an island, adjacent to the project became an enemy of the builder of the project, Sergio "Serging" Osmeña Jr., the Mayor of Cebu City.
The project began in 1962 and was completed in 1969, it was undertaken by the Cebu Development Corporation & Essel Inc. Mariano Ponce opposed the idea of constructing a replica of the project in his island as demanded by Serging.
Mariano Ponce filed a case against Serging Osmeña, the civil case was dismissed by the Court of First Instance of Cebu. The criminal case for Violation of the Anti-Graft and Corrupt Practices or Republic Act 3019 however prospered, when the City Fiscal filed the information or the case before the Court of First Instance.
The allegations contained in the Information, among others are: (1.) Ponce claimed that the prosecution of cases against him like violation of a city ordinance and the non-issuance of a building permit was orchestrated by Serging. (2) That the exhumation of the cadaver of the wife of Mariano Ponce buried in his island on orders of Dr. Manuel Cuenco, the Secretary of Health, was upon orders of Serging, who was allegedly influential in the appointment of Cuenco. (3) That the man-made island of Ponce was buried under silt and mud because of the dredging operation of the Dilingham Drainage Machine rented by the Cebu Development Corporation and Essel Inc.
The Fiscals Office filed the case before the court on March 1, 1966 and was raffled to the sala of Court of First Instance Judge Amador E. Gomez of Branch II. Judge Gomez on April 22, 1968 voluntarily disqualified himself from hearing the case on the ground that he handled the civil case of the parties involved, which he ruled in favor of Serging.
It was re-raffled, and landed in the sala of Judge Guillermo P. Villasor. However, the Circuit Criminal Court was organized by virtue of Administrative Order 258 of the Secretary of the Department of Justice. On September 19, 1969 Judge Villasor inhibited himself, thus the case went to the Criminal Circuit Court of Cebu presided by Judge Francisco RO. Cupin on January 30, 1970. Serging opposed the raffling of the case and the move of Fiscal Jose Amadora of having the case handled by the new court.
Judge Cupin set the hearing of the case and the reception of evidence on June 1,2,3, and 9 in 1970. Serging filed a petition before the Supreme Court against the city fiscal and all the judges except Judge Gomez. He also opposed the appearance of Atty. Vicente del Rosario, the counsel of Mariano Ponce who acted as Private Prosecutor.
The Supreme Court on September 30, 1970 declared that the rulings of lowers courts as null and void and ordered Judge Cupin to turn over the case and have it re-raffled.