Around noon on 9 July 1999, a civilian informer told the 14th Regional Narcotics Office in Baguio City that Ruel Eugenio and Jimmy Tan were selling marijuana and could be contacted at Hilltop Road in the City Market.[1][2] The regional chief formed a buy-bust team led by Police Inspector Edgar Apalla, with Juan Piggangay as poseur-buyer and two back-up officers, and coordinated with the Baguio City police.[1][2]

About 3:30 p.m. the two men arrived by jeepney, and Tan handed Piggangay a blue plastic bag; asked in Ilocano whether it was his order, Eugenio confirmed it and demanded 1,000 pesos.[1][2] Piggangay opened the bag, saw a dried marijuana brick, and gave the pre-arranged handkerchief signal, at which the back-up team rushed in, introduced themselves as narcotics agents, arrested both men and informed them of their rights.[1][2]

The information filed on 12 July 1999 charged both men with selling and delivering about 1,000 grams of dried marijuana leaves wrapped in gift wrapper inside the blue bag, and both pleaded not guilty at arraignment on 9 September 1999.[1][2] On 29 November 2000 the Baguio regional trial court, Branch 6, found them guilty of violating Section 4 of the Dangerous Drugs Act and sentenced each to reclusion perpetua plus a 500,000-peso fine, forfeiting the 1,034.5-gram brick for destruction.[1][2]

Appeal denied

On 16 January 2003 the Supreme Court denied the appeal and affirmed the conviction, holding that presenting the buy-bust money in court is not indispensable and that prior surveillance is unnecessary where credible witnesses prove the sale.[1][2]