Question

C. Retroactivity of Laws (Civil Code, Art. 4), Vested Rights Principle

Question:

1. Ms. Reyes purchased a piece of property from Mr. Santos on January 1, 2020. However, on June 30, 2021, a new law was passed prohibiting the transfer of property within the first two years of acquisition. Unfortunately, Ms. Reyes was unaware of this law and sold the property to Mr. Gomez on July 1, 2021. Mr. Gomez, upon finding out about the new law, wants to know if he can still claim ownership over the property he bought from Ms. Reyes. Discuss the effect and application of laws, specifically the principle of retroactivity and the vested rights principle, in this scenario.
2. A group of individuals filed a class-action lawsuit against a pharmaceutical company for producing a drug that was later found to have harmful side effects. The lawsuit was filed on January 1, 2020. On June 30, 2021, a new law was enacted stating that class-action lawsuits filed prior to its enactment shall be dismissed and individual lawsuits shall be filed instead. The pharmaceutical company argues that the new law should apply retroactively to dismiss the ongoing class-action lawsuit. Analyze the effect and application of laws, particularly the principle of retroactivity and the vested rights principle, in this situation.