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ADMIN&LAW&CASES&

I. NON.&DELEGATION&
A. EASTERN& SHIPPING& LINES& v& POEA,& Minister& of& Labor& Employment,&
Hearing&Officer&Abdul&Basar&and&Kathleen&Saco&
DOCTRINE:&
There%are%two%accepted%tests%to%determine%whether%or%not%there%is%a%valid%
delegation% of% legislative% power,% viz,% the% completeness% test% and% the%
sufficient%standard%test.%Under%the%first%test,%the%law%must%be%complete%in%
all%its%terms%and%conditions%when%it%leaves%the%legislature%such%that%when%
it% reaches% the% delegate% the% only% thing% he% will% have% to% do% is% enforce% it.%
Under%the%sufficient%standard%test,%there%must%be%adequate%guidelines%or%
limitations% in% the% law% to% map% out% the% boundaries% of% the% delegates%
authority%and%prevent%the%delegation%from%running%riot.%
The% reasons% given% above% for% the% delegation% of% legislative% powers% in%
general% are% particularly% applicable% to% administrative% bodies.% With% this%
power,% administrative% bodies% may% implement% the% broad% policies% laid%
down% in% a% statute% by% filling% in% the% details% which% the% Congress% may% not%
have%the%opportunity%or%competence%to%provide.%This%is%effected%by%their%
promulgation%of%what%are%known%as%supplementary%regulations%
FACTS:&
1. Vitaliano%Saco%was%C/O%of%the%M/V%Eastern%Polaris%when%he%was%killed%in%an%
accident%in%Tokyo,%Japan.%
2. %His%widow%sued%for%damages%under%E.O%797%and%MC%No.%2%of%the%POEA.%
EO%797R%%
MC% No.2% of% POEAR% This% circular% prescribed% a% standard% contract% to% be%
adopted% by% both% foreign% and% domestic% shipping% companies% in% the%
hiring%of%Filipino%seamen%for%overseas%employment.%
3. Eastern%Shipping%Lines,%as%owner%of%the%vessel%argued%that%the%complaint%was%
not%cognizable%by%the%POEA%but%by%SSS%and%should%have%been%filed%against%the%
State%Insurance%Fund.%
4. POEA%assumed%jurisdiction%and%ruled%in%favor%of%the%complainant.%
POEA%found%that%Vitaliano%Saco%was%an%overseas%employee%of%Eastern%
at%the%time%of%the%accident.%%
5. Hence,%this%petition.%
Petitioners%contend%that%POEA%has%no%jurisdiction%over%the%case,%as%the%
husband%was%not%an%overseas%worker%but%a%domestic%employee.%Thus,%
the% claim% should% have% been% filed% with% the% SSS,% subject% appeal% to% the%
Employees%Compensation%System.%
Petitioner% questions% the% validity% of% MC% No.% 2% is% violative% of% the%
principles%of%the%nonRdelegation%of%legislative%power.%%It%contends%that%
no% authority% had% been% given% the% POEA% to% promulgate% the% said%
regulation;% and% even% with% such% authorization,% the% regulation%
represents% an% exercise% of% legislative% discretion% which,% under% the%
principle,%is%not%subject%to%delegation.%
ISSUE:& W/N& MC& No.2& is& violative& of& the& principles& of& the& non.delegation& of&
legislative&power&
HELD:&&&&
1. NO.%%The%principle%of%nonRdelegation%of%powers%is%applicable%to%all%the%three%
major% powers% of% the% Government% but% is% especially% important% in% the% case% of%
the% legislative% power% because% of% the% many% instances% when% its% delegation% is%
permitted%In%the%case%of%the%legislative%power,%however,%such%occasions%have%
become% necessary.% This% had% led% to% the% observation% that% the% delegation% of%
legislative%power%has%become%the%rule%and%its%nonRdelegation%the%exception.%
The% reason% is% the% increasing% complexity% of% the% task% of% government% and% the%
growing%inability%of%the%legislature%to%cope%directly%with%the%myriad%problems%
demanding%its%attention.%The%solution%to%the%problem%may%be%expected%from%
its%delegates,%who%are%supposed%to%be%experts%in%the%particular%field%assigned%
to%them.%%The%reasons%given%above%for%the%delegation%of%legislative%powers%in%
general%are%particularly%applicable%to%administrative%bodies.%With%this%power,%
administrative% bodies% may% implement% the% broad% policies% laid% down% in% a%
statute% by% filling% in% the% details% which% the% Congress% may% not% have% the%
opportunity%or%competence%to%provide.%This%is%effected%by%their%promulgation%
of%what%are%known%as%supplementary%regulations%
There% are% two% accepted% tests% to% determine% whether% or% not% there% is% a%
valid% delegation% of% legislative% power,% viz,% the% completeness% test% and% the%
sufficient%standard%test.%Under%the%first%test,%the%law%must%be%complete%in%all%
its% terms% and% conditions% when% it% leaves% the% legislature% such% that% when% it%
reaches%the%delegate%the%only%thing%he%will%have%to%do%is%enforce%it.%Under%the%
sufficient% standard% test,% there% must% be% adequate% guidelines% or% limitations% in%
the%law%to%map%out%the%boundaries%of%the%delegates%authority%and%prevent%the%
delegation%from%running%riot.%
In%the%case%at%bar,%MC%No.%2%is%one%such%administrative%regulation.%The%
power%of%the%POEA%in%requiring%the%model%contract%is%not%unlimited%as%there%
is% a% sufficient% standard% guiding% the% delegate% in% the% exercise% of% the% said%
authority.%That%standard%is%discoverable%in%the%executive%order%itself%which,%in%
creating%the%Philippine%Overseas%Employment%Administration,%mandated%it%to%
protect% the% rights% of% overseas% Filipino% workers% to% fair% and% equitable%
employment% practices.% The% provisions% mandated% in% MC% No.2% are%
manifestations%of%the%concern%of%the%State%for%the%working%class,%consistently%
with% the% social% justice% policy% and% the% specific% provisions% in% the% Constitution%
calling% for% the% protection% of% the% working% class% and% the% promotion% of% its%
interest.% Thus,% MC.% No.2% passed% the% second% test% of% valid% delegation% of%
legislative%power:%sufficient%standard%test.%%
%
II. QUASI.&JUDICIAL&
1. C.T.& Torres& Enterprises,& Inc.& v& Hon.& Hibionada,& Efren& Diongon& and&
Pleasantville&Development&Corporation&
FACTS:&
1. C.T% Torres% as% agent% of% private% respondent% Pleasantville% Development%
Corporation%sold%a%subdivision%lot%on%installment%to%Efren%Diogonon.%
2. After%completing%payments,%Diogonon%demanded%deliver%of%the%certificate%of%
title%to%the%subject%land.%
3. Neither%C.T%nor%Pleasantville%complied.%
4. Thus,% Diogonon% filed% a% complaint% for% specific% performance% and% damages% in%
RTC.%
5. C.T%filed%a%motion%to%dismiss%for%the%ground%of%lack%of%jurisdiction,%contending%
that%the%competent%body%to%hear%and%decide%the%case%was%HLURB.%
6. RTC%denied%the%Motion%to%Dismiss.%
RTC% has% jurisdiction% for% the% issue% to% be% determined% are% governed% by%
the% provisions% of% NCC% particularly% on% contracts.% The% jurisdiction% to%
hear% the% issue% of% specific% performance% with% damages% is% conferred% on%
the%regular%courts%pursuant%to%BP.%129.%
7. Hence,%this%petition.%
ISSUE:&W/N&RTC&has&the&jurisdiction&to&hear&the&case.&
HELD:&NO.&
RTC%erred%in%supposing%that%only%the%regular%courts%can%interpret%and%apply%
the%provisions%of%the%Civil%Code,%to%the%exclusion%of%the%quasiRjudicial%bodies.%PD%No.%
957% (The% Subdivision% and% Condominium% Buyers% Protective% Decree)% provides% that%
the% National% Housing% Authority% shall% have% exclusive% authority% to% regulate% the% real%
estate%trade%and%business.%NHAs%2nd%and%3rd%paragraph%of%the%preamble%states%that%
failure%to%deliver%titles%to%the%buyers%or%titles%are%within%the%scope%of%the%regulatory%
authority%lodged%in%the%NHA.%
Under% E.O.% No.% 648% dated% February% 7,% 1981,% the% regulatory% functions%
conferred% on% the% National% Housing% Authority% under% P.D.% Nos.% 957,% 1344% and% other%
related% laws% were% transferred% to% the% Human% Settlements% Regulatory% Commission,%
which%was%renamed%Housing%and%Land%Use%Regulatory%Board.%It%is%clear%from%Section%
1(c)% of% the% above% quoted% PD% No.% 1344% that% the% complaint% for% specific% performance%
with% damages% filed% by% Diongon% with% the% Regional% Trial% Court% of% Negros% Occidental%
comes% under% the% jurisdiction% of% the% Housing% and% Land% Use% Regulatory% Board.%
Diongon%is%a%buyer%of%a%subdivision%lot%seeking%specific%performance%of%the%sellers%
obligation%to%deliver%to%him%the%corresponding%certificate%of%title.%
There% are% hundreds% of% administrative% bodies% now% performing% this% function%
by%virtue%of%a%valid%authorization%from%the%legislature.%This%quasiRjudicial%function,%as%
it%is%called,%is%exercised%by%them%as%an%incident%of%the%principal%power%entrusted%to%
them%of%regulating%certain%activities%falling%under%their%particular%expertise.%
As% a% result% of% the% growing% complexity% of% the% modern% society,% it% has% become%
necessary%to%create%more%and%more%administrative%bodies%to%help%in%the%regulation%
of% its% ramified% activities.% Specialized% in% the% particular% fields% assigned% to% them,% they%
can% deal% with% the% problems% thereof% with% more% expertise% and% dispatch% than% can% be%
expected% from% the% legislature% or% the% courts% of% justice.% This% is% the% reason% for% the%
increasing%vesture%of%quasiRlegislative%and%quasiR%judicial%powers%in%what%is%now%not%
unreasonably%called%the%fourth%department%of%the%government.%%
The%ever%increasing%variety%of%powers%and%functions%given%to%administrative%
agencies%recognizes%the%need%for%the%active%intervention%of%administrative%agencies%
in% matters% calling% for% technical% knowledge% and% speed% in% countless% controversies%
which%cannot%possibly%be%handled%by%regular%courts.%
%
SUNVILLE&TIMBER&PRODUCTS&v&HON.&ABAD&
DOCTRINE:&
FACTS:&
1. Sunville% was% granted% a% Timber% License% Agreement% (TLA)% for% its%
lumber%business%for%a%period%of%10%years.%
2. Private%respondents%filed%a%petition%with%DENR%for%the%cancellation%
of% Sunvilles% TLA% on% the% ground% of% serious% violations% of% its%
conditions%and%the%provisions%of%forestry%laws%and%regulations.%
3. Sunville% moved% to% dismiss% the% case% on% the% ground% that:% (1)% Court%
has% no% jurisdiction% over% the% complaint;% % (2)% Sunville% had% not% yet%
exhausted%administrative%remedies%
4. Judge%Abad%dismissed%the%motion%to%dismiss.%
5. Upon% appeal,% CA% held% that% the% doctrine% of% the% exhaustion% of%
administrative%remedies%was%not%without%exception.%In%the%case%at%
bar,%due%to%the%damage%caused%by%the%lumber%business%of%Sunville,%it%
should%be%stopped.%%
o That% the% exhaustion% of% administrative% remedies% exception% is%
appliacable,%where%there%is%irreparable%damage%and%injury%%ad%
the%strong%public%interest%in%having%the%matter%settled,%as%cited%
in% the% case% of% De% Lara% v% Cloribel% v% Arrow% Transportation%
Coorporation%v%Board%of%Transportation.%
6. Hence,%this%petition.%
%
ISSUE:&W/N&the&doctrine&of&exhaustion&of&administrative&remedies&was&
not&correctly&applied.&
&
HELD:&YES.&&
1. The% doctrine% of% exhaustion% of% administrative% remedies% calls% for% resort%
first% to% the% appropriate% administrative% authorities% in% the% resolution% of% a%
controversy% failing% under% their% jurisdiction% before% the% same% may% be%
elevated% to% the% courts% of% justice% for% review.% NonRobservance% of% the%
doctrine%results%in%lack%of%cause%of%action.%
2. One% of% the% reasons% for% the% doctrine% of% exhaustion% is% the% separation% of%
powers,% which% enjoins% upon% the% Judiciary% a% becoming% policy% of% nonR
interference% with% matters% coming% primarily% (albeit% not% exclusively)%
within% the% competence% of% the% other% departments.% The% theory% is% that% the%
administrative% authorities% are% in% a% better% position% to% resolve% questions%
addressed% % to% their% particular% expertise% and% that% errors% committed% by%
subordinates% in% their% resolution% may% be% rectified% by% their% superiors% if%
given% a% chance% to% do% so.% It% may% be% added% that% strict% enforcement% of% the%
rule%could%also%relieve%the%courts%of%a%considerable%number%of%avoidable%
cases%
3. In% the% case% at% bar,% while% forestry% laws% do% not% expressly% require% prior%
resort% to% administrative% remedies,% the% explicit% language% of% laws% vesting%
DENR%the%power%and%function%to%regulate%the%development,%disposition,%
extraction% and% use% of% the% countrys% forest% and% to% exercise% exclusive%
jurisdiction%in%the%management%and%disposition%of%all%lands%of%the%public%
domain,% clearly% implies% that% the% DENR% should% be% allowed% to% rule% in% the%
first%instance%on%any%controvercy%coming%under%its%express%powers%before%
the%courts%of%justice%may%intervene.%
%
%
VICTORIAS&MILLING&COMPANY&V&SSS&
FACTS:&
1. SSS% issued% Circular% No.% 22% wherein% it% provides% that% employers% in%
computing% premiums% due% to% the% system% will% include% in% the% Employees%
renumenation%all%bonuses%and%overtime%pay.%
2. Petitioner% protested% against% the% circular% as% contradictory% to% a% previous%
Circular% No.% 7,% expressly% excluding% overtime% pay% and% bonus% in% the%
computation%of%the%employees%premium%contributitons.%%
3. Counsel% further% questioned% the% validity% of% the% circular% for% lack% of%
authority%on%the%part%of%the%Social%Security%Commission%to%promulgate%it%
without% the% approval% of% the% President% and% for% lack% of% publication% in% the%
Official%Gazette.%
4. Overruling% these% objections,% the% Social% Security% Commission% ruled% that%
Circular%No.%22%is%not%a%rule%or%regulation%that%needed%the%approval%of%the%
President% and% publication% in% the% Official% Gazette% to% be% effective,% but% a%
mere% administrative% interpretation% of% the% statute,% a% mere% statement% of%
general%policy%or%opinion%as%to%how%the%law%should%be%construed.%
%
ISSUE:%W/N%Circular%No.%22%is%a%rule%or%regulation%
%
HE:D%%
%
There%can%be%no%doubt%that%there%is%a%distinction%between%an%administrative%rule%or%
regulation% and% an% administrative% interpretation% of% a% law% whose% enforcement% is%
entrusted% to% an% administrative% body.% When% an% administrative% agency% promulgates%
rules%and%regulations,%it%"makes"%a%new%law%with%the%force%and%effect%of%a%valid%law,%
while%when%it%renders%an%opinion%or%gives%a%statement%of%policy,%it%merely%interprets%
a% preRexisting% law.% Rules% and% regulations% when% promulgated% in% pursuance% of% the%
procedure%or%authority%conferred%upon%the%administrative%agency%by%law,%partake%of%
the% nature% of% a% statute,% and% compliance% therewith% may% be% enforced% by% a% penal%
sanction% provided% therein.% The% details% and% the% manner% of% carrying% out% the% law% are%
often%times%left%to%the%administrative%agency%entrusted%with%its%enforcement.%In%this%
sense,% it% has% been% said% that% rules% and% regulations% are% the% product% of% a% delegated%
power% to% create% new% or% additional% legal% provisions% that% have% the% effect% of% law.%
Therefore,% Circular% No.% 22% purports% merely% to% advise% employersRmembers% of% the%
System% of% what,% in% the% light% of% the% amendment% of% the% law,% they% should% include% in%
determining% the% monthly% compensation% of% their% employees% upon% which% the% social%
security% contributions% should% be% based,% and% that% such% circular% did% not% require%
presidential%approval%and%publication%in%the%Official%Gazette%for%its%effectivity.%