You are on page 1of 104

NOTES: ADMINISTRATIVE LAW

PAGE - 1 -

2. The body of rules, regulations, and orders issued by


administrative agencies
ADMINISTRATIVE LAW
3. The body of determinations, decisions, and orders of such
administrative authorities made in the settlement of
controversies arising in their respective fields
NATURE AND SCOPE OF ADMINISTRATIVE LAW 4. The body of doctrines and decisions dealing with the
creation, operation and effect of determinations, and
DEFINITION regulations of such administrative agencies
 Embraces all the law that controls, or is intended to
control, the administrative operations of the government CLASSIFICATION
 It includes the law that governs the structure of the 1. Statutes setting up administrative authorities either by
government and prescribes the procedure but not the creating boards and commissions or administrative offices
substantive law which administration is supposed to apply or by confiding the powers and duties to existing boards,
 Part of the public law which fixes the organization and commissions, or officers, to amplify, apply, execute, and
determines the competence of the administrative supervise the operation of and determine controversies
authorities, and indicates to the individual the remedies for arising under particular laws in the enactment of which the
the violation of his rights legislature decided for matters of convenience or for
 Branch of the modern law which the executive department quicker or more efficient administration to withhold the
of the government, acting in a quasi-judicial or quasi- controversies, at least in the first instance, from the courts
legislative capacity, interferes with the conduct of the of law
individual for the purpose of promoting the well-being of 2. Rules, regulations, or orders of such administrative
the community authorities enacted and promulgated in pursuance of the
 Study of the exercise of administrative power purposes for which they were created or endowed
3. The determinations, decisions, and orders of such
ORIGIN AND DEVELOPMENT administrative authorities made in the settlement of
 Origin of administrative law is in legislation and it proceeds controversies arising in their particular fields
from the increased functions of government 4. The body of doctrines and decisions dealing with the
 It became customary to delegate to the particular creation, operation and effect of determinations and
administrative agencies the power to formulate their regulations of such administrative authorities
regulations in implementing the statute enacted3
DISTINGUISHED FROM OTHER BRANCHES OF LAW
SUBJECT MATTER
1. The body of statutes which sets up administrative agencies From the law of public administration—
and endows them with powers and duties

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 2 -

 Where the emphasis is on the different branches of the 200 SCRA 226
government and on their relations, this pertains to public
administration FACTS:
 Where the emphasis is shifted to the problems of Republic Planters Bank together with other sugar producers
administrative regulation rather than those of instituted an action for collection of sum of money and preliminary
administrative management, then this is the field of injunction against the Philippine Sugar Commission. Before an
administrative law answer was filed, a compromise agreement was filed but to the
move of its execution, petitioners were opposed. The CA ruled in
Constitutional law— this case that the SRA doesn't have the authority to represent the
 Constitutional law lays down the general rules of government in any suit against and for it.
government which are fundamental and without which no
governmental organization can hope to stand on its feet HELD:
 Administrative law on the other hand lays down secondary The Court of Appeals correctly ruled that petitioner Sugar
rules which limit and equalify, expand and amplify the Regulatory Administration may not lawfully bring an action on
general precepts of governmental organization behalf of the Republic of the Philippines and that the Office of the
Government Corporate Counsel does not have the authority to
Penal laws— represent said petitioner in this case.
 Penal laws consist really of a body of penal sanctions which
are applied to all the branches of the law Executive Order No. 18, enacted on 28 May 1986 and which took
 Bu a rule of law protected or enforced by a penal sanction effect immediately, abolished the Philippine Sugar Commission
may be really administrative in character for indeed one of (PHILSUCOM) and created the Sugar Regulatory Administration
the most common and efficient means of enforcing a rule of (SRA) which shall be under the Office of the President. However,
administrative law is to give it a penal sanction and the under the third paragraph of Section 13 thereof, the PHILSUCOM
mere fixing of a penalty to a violation of a rule of was allowed to continue as a juridical entity for three (3) years for
administrative law doesn't deprive such rule of its the purpose of prosecuting and defending suits by or against it and
administrative character enabling it to settle and close its affairs, to dispose of and convey its
property and to distribute its assets, but not for the purpose of
International law— continuing the functions for which it was established, under the
 This law cannot be regarded as binding upon the officers of supervision of the SRA.
any government considered in their relation to their own
government except insofar as it has been adopted into the Section 3 of said Executive Order enumerates the powers and
administrative law of the state functions of the SRA; but it does not specifically include the power
to represent the Republic of the Philippines in suits filed by or
1 REPUBLIC V. CA against it, nor the power to sue and be sued although it has the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 3 -

power to "enter, make and execute routinary contracts as may be 4. To regulate certain public callings or business affected with
necessary for or incidental to the attainment of its purposes public interest
between any persons, firms, public or private, and the Government 5. To promote the general welfare through police regulations
of the Philippines" and "[t]o do all such other things, transact such 6. To determine rights of individuals in certain cases where a
other businesses and perform such functions directly or indirectly strong social policy is involved
incidental or conducive to the attainment of the purposes of the
Sugar Regulatory Administration." METHODS OF RE-ORGANIZATION AND ABOLITION
 Experimentation is frequent in the field of administration
It is apparent that its charter does not grant the SRA the power to  The powers of departments, boards, and administrative
represent the Republic of the Philippines in suits filed by or against agencies are subject to expansion, contraction, or abolition
the latter. at the will of the legislative and executive branches of the
government
It is a fundamental rule that an administrative agency has only such  With respect to administrative agencies created by
powers as are expressly granted to it by law and those that are constitutional provisions, they cannot be abolished by
necessarily implied in the exercise thereof. statute
 But with respect to those created by legislative enactments,
The SRA no doubt, is an administrative agency or body. An or authority of the same, the legislature may validly abolish
administrative agency is defined as "[a] government body charged and reorganize them
with administering and implementing particular legislation.
2 CARIÑO V. CHR
CREATION, ORGANIZATION AND ABOLITION OF 204 SCRA 483
ADMINISTRATIVE AGENCIES
FACTS:
LEGAL BASES FOR CREATION This is the classic case of the public school teachers being
1. Constitutional provisions dismissed from service after concerting mass actions during a
2. Legislative enactments school day. They instituted a complaint before the Commission on
3. Authority of law Human Rights against petitioner among others. The Commission
contends to adjudicate the matter.
FORMS AND PURPOSES
1. To dispense certain privileges accorded by the government HELD:
2. To carry on governmental business or functions The threshold question is whether or not the Commission on
3. To carry on or undertake some business service for the Human Rights has the power under the Constitution to do so;
public whether or not, like a court of justice, 19 or even a quasi-judicial
agency, 20 it has jurisdiction or adjudicatory powers over, or the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 4 -

power to try and decide, or hear and determine, certain specific investigation conducted by it or under its authority, it may grant
type of cases, like alleged human rights violations involving civil or immunity from prosecution to any person whose testimony or
political rights. whose possession of documents or other evidence is necessary or
convenient to determine the truth. It may also request the
The Court declares the Commission on Human Rights to have no assistance of any department, bureau, office, or agency in the
such power; and that it was not meant by the fundamental law to be performance of its functions, in the conduct of its investigation or
another court or quasi-judicial agency in this country, or duplicate in extending such remedy as may be required by its findings. 26
much less take over the functions of the latter.
But it cannot try and decide cases (or hear and determine causes) as
The most that may be conceded to the Commission in the way of courts of justice, or even quasi-judicial bodies do. To investigate is
adjudicative power is that it may investigate, i.e., receive evidence not to adjudicate or adjudge. Whether in the popular or the
and make findings of fact as regards claimed human rights technical sense, these terms have well understood and quite
violations involving civil and political rights. But fact finding is not distinct meanings.
adjudication, and cannot be likened to the judicial function of a
court of justice, or even a quasi-judicial agency or official. The The legal meaning of "investigate" is essentially the same: "(t)o
function of receiving evidence and ascertaining therefrom the facts follow up step by step by patient inquiry or observation. To trace or
of a controversy is not a judicial function, properly speaking. To be track; to search into; to examine and inquire into with care and
considered such, the faculty of receiving evidence and making accuracy; to find out by careful inquisition; examination; the taking
factual conclusions in a controversy must be accompanied by the of evidence; a legal inquiry;" "to inquire; to make an investigation,"
authority of applying the law to those factual conclusions to the end "investigation" being in turn describe as "(a)n administrative
that the controversy may be decided or determined authoritatively, function, the exercise of which ordinarily does not require a
finally and definitively, subject to such appeals or modes of review hearing. 2 Am J2d Adm L Sec. 257; . . . an inquiry, judicial or
as may be provided by law. This function, to repeat, the otherwise, for the discovery and collection of facts concerning a
Commission does not have. certain matter or matters."

As should at once be observed, only the first of the enumerated In the legal sense, "adjudicate" means: "To settle in the exercise of
powers and functions bears any resemblance to adjudication or judicial authority. To determine finally. Synonymous with adjudge
adjudgment. The Constitution clearly and categorically grants to in its strictest sense;" and "adjudge" means: "To pass on judicially,
the Commission the power to investigate all forms of human rights to decide, settle or decree, or to sentence or condemn. . . . Implies a
violations involving civil and political rights. It can exercise that judicial determination of a fact, and the entry of a judgment."
power on its own initiative or on complaint of any person. It may
exercise that power pursuant to such rules of procedure as it may Hence it is that the Commission on Human Rights, having merely
adopt and, in cases of violations of said rules, cite for contempt in the power "to investigate," cannot and should not "try and resolve
accordance with the Rules of Court. In the course of any on the merits" (adjudicate) the matters.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 5 -

An administrative agency must be created by law—either by the


Constitution or by statute. HELD:
The question is whether or not the Presidential Anti-Dollar Salting
The organic act is important because it is the basis of the Task Force is, in the first place, a quasi-judicial body, and one
importance of the agency. For example, if it is the Constitution whose decisions may not be challenged before the regular courts,
that sets forth the creation of the agency, then only the amendment other than the higher tribunals the Court of Appeals and this
or revision of the Constitution can affect the creation of the agency. Court.

The powers of the agency must be set forth in the organic act or the A quasi-judicial body has been defined as "an organ of government
Constitution. other than a court and other than a legislature, which affects the rights of
private parties through either adjudication or rule making." The most
In the case of Cariño, the powers of the agency are defined in the common types of such bodies have been listed as follows:
organic act. The reading of the powers of CHR show that it doesn't
have the power to adjudicate but only to investigate or (1) Agencies created to function in situations wherein the government is
recommendatory in nature. offering some gratuity, grant, or special privilege, like the defunct
Philippine Veterans Board, Board on Pensions for Veterans, and
How would we recognize the administrative agency? The name NARRA, and Philippine Veterans Administration.
usually gives off the idea if the office is an administrative agency or
not. (2) Agencies set up to function in situations wherein the government is
seeking to carry on certain government functions, like the Bureau of
Immigration, the Bureau of Internal Revenue, the Board of Special
3 PRESIDENTIAL ANTI-DOLLAR V. CA
Inquiry and Board of Commissioners, the Civil Service
171 SCRA 348
Commission, the Central Bank of the Philippines.
(DEFINITION OF QUASI-JUDICIAL BODY)
(3) Agencies set up to function in situations wherein the government is
FACTS:
performing some business service for the public, like the Bureau of
State Prosecutor Jose B. Rosales, who is assigned with the
Posts, the Postal Savings Bank, Metropolitan Waterworks &
Presidential Anti-Dollar Salting Task Force hereinafter referred to Sewerage Authority, Philippine National Railways, the Civil
as PADS Task Force for purposes of convenience, issued search
Aeronautics Administration.
warrants against many companies allegedly engaged in the dollar
salting industry. The application for the issuance of said search (4) Agencies set up to function in situations wherein the government is
warrants was filed by Atty. Napoleon Gatmaytan of the Bureau of
seeking to regulate business affected with public interest, like the Fiber
Customs who is a deputized member of the PADS Task Force. The
Inspections Board, the Philippine Patent Office, Office of the
companies then sought to declare the warrants null and void.
Insurance Commissioner.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 6 -

operate additional buses. When it was authorized given new


(5) Agencies set up to function in situations wherein the government is conditions, it wasn't amenable to the same, prompting it to file an
seeking under the police power to regulate private business and action against the Commission and to declare the pertinent
individuals, like the Securities & Exchange Commission, Board of provision of CA 454 unconstitutional. It averred that the said
Food Inspectors, the Board of Review for Moving Pictures, and the provision is an unlawful abdication of the legislature of its power to
Professional Regulation Commission. the Commission, giving it unbridled discretion in implementing the
law. The subject provision says that no public service shall
(6) Agencies set up to function in situations wherein the government is operate in the Philippines without possessing a valid and subsisting
seeking to adjust individual controversies because of some strong social certificate of public convenience from the Public Service
policy involved, such as the National Labor Relations Commission, Commission, to the effect that the operation of said service and the
the Court of Agrarian Relations, the Regional Offices of the authorization to do business will promote the public interests in a
Ministry of Labor, the Social Security Commission, Bureau of proper and suitable manner. There is an additional condition that
Labor Standards, Women and Minors Bureau. the government may acquire the business upon payment of proper
costs as well as amend the certifications, etc.
As may be seen, it is the basic function of these bodies to
adjudicate claims and/or to determine rights, and unless its HELD:
decision are seasonably appealed to the proper reviewing There was a valid delegation of powers to the Commission in
authorities, the same attain finality and become executory. A inserting conditions in the issuance of certificates of public
perusal of the Presidential Anti-Dollar Salting Task Force's organic convenience and necessity. The standards set forth in the law
act, Presidential Decree No. 1936, as amended by Presidential giving it authority has expressly allowed for such discretion.
Decree No. 2002, convinces the Court that the Task Force was not However, the imposition of the condition upon petitioner should
meant to exercise quasi-judicial functions, that is, to try and decide be remanded back to the Commission. The act of the Commission
claims and execute its judgments. As the President's arm called to outright impose the condition without affording due process to
upon to combat the vice of "dollar salting" or the blackmarketing petitioner is uncalled for. The Commission took advantage of the
and salting of foreign exchange, it is tasked alone by the Decree to need to augment petitioner’s equipment in its business to impose
handle the prosecution of such activities, but nothing more. the 25-year limitation.

4 PANGASINAN TRANSPORTATION V. PSC 5 PEO. V. MACEREN


70 PHIL. 221 79 SCRA 450

FACTS: FACTS:
Petitioner has been engaged in the transportation business using Accused were charged of violating a Fisheries Administrative
what is known to be TPU buses, in accordance to the certificates of Order, specifically on violating provisions on electro fishing. The
public convenience issued to it. It later applied for authorization to trial court dismissed the complaint and this was affirmed by the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 7 -

CFI on the ground that there electro fishing cannot be penalized as  The most common of the constitutional limitations is the
electric current is not one of those contemplated as obnoxious or separation of powers, with the concomitant non-delegation
poisonous substance as contemplated in the old Fisheries law. of powers

HELD: 6 US V. BARRIAS
The lawmaking body cannot delegate to an executive official the 11 PHIL. 327
power to declare what acts should constitute as an offense. It can
authorize the issuance of regulations and the imposition of the FACTS:
penalty provided for in the law itself. The Secretary of Agriculture The defendant has been charged of violating the circular duly
and Natural Resources and the Commissioner of Fisheries published in the Official Gazette of the Insular Collector of
exceeded their authority in issuing their Administrative Orders, Customs, for being the captain of the boat Maude, and moving and
providing for the punishment for those who practice electro directing her movement, when heavily laden, in the Pasig river, by
fishing. There is nothing provided in the Fisheries law that defines bamboo poles in the hands of the crew and without steam, sail, or
and punishes electro fishing. To declare what shall constitute a other external power. A paragraph in the said circular prohibits
crime and how it shall be punished is a power vested exclusively in the movement of any craft in the Pasig river without being towed by
the legislature, and it may not be delegated to any other body or steam or moved by other adequate power.
agency.
HELD:
CONSTITUTIONAL CONSIDERATIONS By certain sections of Act 1136, the Collector of Customs is
authorized to license craft engaged in the lighterage (loading,
SEPARATION OF POWERS carrying or unloading in a lighter or barge for cargo) or other
 In general, administrative law may be divided into three exclusively harbor business of the ports of the islands, and with
broad segments— certain exceptions, all vessels engaged in lightering are required to
o The transfer of power from the legislature to be so licensed. The Act also provides that any violation of the law
administrative agencies or any rule and regulation promulgated by the Collector shall be
o The exercise of such delegated powers by these guilty of a misdemeanor and be punished upon conviction of
agencies imprisonment and a fine.
o The review of such administrative actions by the
courts Pertaining to the abovementioned law, the regulation of the
 Laws enacted prescribing the powers and functions of Collector should be sustained as coming within the terms of the
administrative agencies should respect constitutional Act. Furthermore, the complaint in this instance was framed in
limitations accordance also with the Philippine Customs Administrative Act.
The collector is not only authorized to promulgate regulations but
also fix penalties for the violation thereof.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 8 -

ground for a motion to dismiss and the court may then proceed
The power conferred upon the legislature to make laws cannot be with the case as if the doctrine had been observed.
delegated by the department to any other body or authority.
Where the sovereign power of the State has located the authority, One of the reasons for the doctrine of exhaustion is the separation
there is must remain; and by the constitutional agency alone the of powers, which enjoins upon the Judiciary a becoming policy of
laws must be made until the constitution itself is changed. This is non-interference with matters coming primarily (albeit not
based on the ethical principle that a delegated power constitutes exclusively) within the competence of the other departments. The
not only a right but also a duty to be performed by the delegate in theory is that the administrative authorities are in a better position
the instrumentality of his own judgment acting immediately upon to resolve questions addressed to their particular expertise and that
the matter of legislation and not through the intervening mind of errors committed by subordinates in their resolution may be
another. rectified by their superiors if given a chance to do so. A no less
important consideration is that administrative decisions are usually
7 SUNVILLE TIMBER V. ABAD questioned in the special civil actions of certiorari, prohibition and
206 SCRA 482 mandamus, which are allowed only when there is no other plain,
speedy and adequate remedy available to the petitioner. It may be
FACTS: added that strict enforcement of the rule could also relieve the
Petitioner was granted a TLA for the cutting of timber in courts of a considerable number of avoidable cases which otherwise
Zamboanga del Sur. Private respondents then filed a complaint for would burden their heavily loaded dockets.
injunction against it. Petitioner moved for the dismissal of the case
for allegedly violating the doctrine on exhaustion of administrative There are a number of instances when the doctrine may be
agencies. This was denied by the judge, averring such doctrine dispensed with and judicial action validly resorted to immediately.
admits of exemptions and the present case comes within the Among these exceptional cases are: 1) when the question raised is
purview of the same. purely legal; 2) when the administrative body is in estoppel; 3)
when the act complained of is patently illegal; 4) when there is
HELD: urgent need for judicial intervention; 5) when the claim involved is
The doctrine of exhaustion of administrative remedies calls for small; 6) when irreparable damage will be suffered; 7) when there
resort first to the appropriate administrative authorities in the is no other plain, speedy and adequate remedy; 8) when strong
resolution of a controversy falling under their jurisdiction before public interest is involved; 9) when the subject of the controversy
the same may be elevated to the courts of justice for review. Non- is private land; and 10) in quo warranto proceedings.
observance of the doctrine results in lack of a cause of action,
which is one of the grounds allowed in the Rules of Court for the The court rules in favor of the petitioner.
dismissal of the complaint. The deficiency is not jurisdictional.
Failure to invoke it operates as a waiver of the objection as a Even if it be assumed that the forestry laws do not expressly require
prior resort to administrative remedies, the reasons for the doctrine

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 9 -

above given, if nothing else, would suffice to still require its asking him to explain himself for the alleged approval of
observance. Even if such reasons were disregarded, there would subdivision plans among others. He then apprised Teehankee that
still be the explicit language of pertinent laws vesting in the DENR he enjoyed the privileges as of a district judge and thus, could only
the power and function "to regulate the development, disposition, be suspended and investigated in the same manner as a Judge of
extraction, exploration and use of the country's forests" and "to the Courts of First Instance, and, therefore, the papers relative to
exercise exclusive jurisdiction" in the "management and disposition his case should be submitted to the Supreme Court, for action
of all lands of the public domain," and in the Forest Management thereon conformably to section 67 of the Judiciary Act (R. A. No.
Bureau (formerly the Bureau of Forest Development) the 296) and Revised Rule 140 of the Rules of Court.
responsibility for the enforcement of the forestry laws aid
regulations here claimed to have been violated. This He then was suspended by order of the President upon finding of a
comprehensive conferment clearly implies at the very least that the prima case against him.
DENR should be allowed to rule in the first instance on any
controversy coming under its express powers before the courts of HELD:
justice may intervene. The petitioner's theory that the grant of "privileges of a Judge of
First Instance" includes by implication the right to be investigated
The argument that the questions raised in the petition are purely only by the Supreme Court and to be suspended or removed upon
legal is also not acceptable. The private respondents have charged, its recommendation, would necessarily result in the same right
both in the administrative case before the DENR and in the civil being possessed by a variety of executive officials upon whom the
case before the Regional Trial Court of Pagadian City, that the Legislature had indiscriminately conferred the same privileges.
petitioner has violated the terms and conditions of the TLA and the
provisions of forestry laws and regulations. The charge involves To adopt petitioner's theory, therefore, would mean placing upon
factual issues calling for the presentation of supporting evidence. the Supreme Court the duty of investigating and disciplining all
Such evidence is best evaluated first by the administrative these officials, whose functions are plainly executive, and the
authorities, employing their specialized knowledge of the consequent curtailment by mere implication from the Legislative
agreement and the rules allegedly violated, before the courts may grant, of the President's power to discipline and remove
step in to exercise their powers of review. administrative officials who are presidential appointees, and which
the Constitution expressly placed under the President's supervision
8 NOBLEJAS V. TEEHANKEE and control (Constitution, Art. VII, sec. 10[i]).
23 SCRA 405
Incidentally, petitioner's stand would also lead to the conclusion
FACTS: that the Solicitor General, another appointee of the President,
Noblejas was appointed as the Commissioner of Land Registration. could not be removed by the latter, since the Appropriation Acts
He enjoyed the same rank and privileges of a district judge. During confer upon the Solicitor General the rank and privileges of a
his tenure as Commissioner, a letter was sent to him by Teehankee,

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 10 -

Justice of the Court of Appeals, and these Justices are only Commissioner under Republic Act No. 1151, sections 3 and 4, will
removable by the Legislature, through the process of impeachment. show that the resolution of consultas are but a minimal portion of
his administrative or executive functions and merely incidental to
The more fundamental objection to the stand of petitioner Noblejas the latter.
is that, if the Legislature had really intended to include in the
general grant of "privileges" or "rank and privileges of Judges of the NON-DELEGATION OF POWERS
Court of First Instance" the right to be investigated by the Supreme  No department of the government, except when authorized
Court, and to be suspended or removed only upon by the constitution, can abdicate authority or escape
recommendation of that Court, then such grant of privileges would responsibility by delegating any of its power to another
be unconstitutional, since it would violate the fundamental doctrine body
of separation of powers, by charging this court with the  Any attempt at such delegation of power is void under the
administrative function of supervisory control over executive maxim potestas delegari non potest delegari
officials, and simultaneously reducing pro tanto the control of the  This principle rests on the ethical principle that a delegated
Chief Executive over such officials. power constitutes not only a right but also a duty to be
performed by the delegated body and through the
Petitioner seeks to be differentiated with the other executive intervening mind of another
officials by averring that he exercises a judicial function, that is,  While the rule of non-delegation is applicable to all three
resolution of a consulta by the Register of Deeds. Serious doubt departments of the government, the doctrine has found
may well be entertained as to whether the resolution of a consulta greater and persistent application to the prohibition against
by a Register of Deeds is a judicial function, as contrasted with the delegation of legislative power
administrative process. It will be noted that by specific provision of  Take note however that this rule isn’t absolute—any power
the section, the decision of the Land Registration Commissioner not legislative in character, which the legislature may
"shall be conclusive and binding upon all Registers of Deeds" exercise, it may delegate.
alone, and not upon other parties. This limitation in effect  What the rule precludes is the delegation of those powers
identifies the resolutions of the Land Registration Commissioner which are strictly or inherently and exclusively legislative
with those of any other bureau director, whose resolutions or and the abdication of the legislation of its own power and
orders bind his subordinates alone. That the Commissioner's conferring such power upon an administrative agency to be
resolutions are appealable does not prove that they are not exercised in its uncontrolled discretion
administrative; any bureau director's ruling is likewise appealable
to the corresponding department head. 9 US V. ANG TANG HO
43 PHIL. 1
But even granting that the resolution of consultas by the Register of
Deeds should constitute a judicial (or more properly quasi judicial) FACTS:
function, analysis of the powers and duties of the Land Registration

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 11 -

The Philippine legislature enacted a law entitled “An Act enforcement or administration of a law, it is essential to forestall a
penalizing the monopoly and hoarding of, and speculation in, violation of the principle of separation of powers, that said law:
palay, rice, and corn under extraordinary circumstances, regulating 1. Be complete in itself—it must set forth therein the policy
the distribution and sale thereof, and authorizing the Governor- to be executed, carried out or implemented by the
General, with the consent of the Council of State, to issue the delegate
necessary rules and regulations therefore, and making an 2. Fix a standard—the limits of which are sufficiently
appropriation for this purpose”. Under the said law, the governor- determined or determinable—to which the delegate
general is authorized whenever, for any cause, conditions arise must conform in performance of his functions.
resulting in the extraordinary rise in the price of palay, rice or corn,
to issue and promulgate, with the consent of the Council of State, Without a statutory declaration of policy, the delegate would in
temporary rules and emergency measures for carrying out the effect, make or formulate such policy, which is the essence of every
purposes of the Act. law; and without the appropriate standard, there would be no
means to determine, with reasonable certainty, whether the
The governor-general, in pursuance of this law, fixed the price at delegate has acted within or beyond the scope of his authority.
which rice should be sold. A few days after, the accused is
charged for violation of such proclamation, charging him of selling 10 PANAMA REFINING CO. V. RYAN
rice at a higher price. He was found guilty and sentenced to 293 U.S. 288 (1935)
imprisonment and payment of a fine.
FACTS:
HELD: One of the economic problems caused by the Great Depression was
By looking at the first section of the subject law, the promulgation faltering oil prices. This was due to overproduction and a general
of temporary rules and emergency measures is left at the discretion economic slowdown. The oil industry sought Congressional
of the governor-general. The legislature doesn’t undertake to intervention to control the situation. The President issued Executive
specify or define under what conditions or for what reasons the Order 6199 on July 11, 1933, banning interstate oil shipments if the
governor-general shall issue the proclamation, but says it may be oil was produced in excess of state quotas. Basis for this EO was
issued “for any cause” and leaves the question as to what is “any section 9(c) of title 1 of the National Industrial Recovery Act, which
cause” to the discretion of the governor-general. There is also no authorizes the President to prohibit transportation of excess oil and
definition to what the phrase “extraordinary rise” means. It doesn’t prescribes punishment of a fine, imprisonment, or both. President
specify what is a temporary rule or an emergency measure or how then issued Executive Order 6204 on July 14, 1933, authorizing the
long these shall remain in force and effect and when they shall be Secretary of the Interior to exercise authority as vested in the
in effect. President in enforcing section 9(c) and EO 6199.

Although the Congress may delegate to another branch of Secretary of the Interior issued regulations to carry out EO 6199 and
government the power to fill in the details in the execution, 6204 on July 15, 1933.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 12 -

 Regulation IV: Every producer of petroleum should file a requirement, no definition of circumstances and conditions in
monthly statement giving information on the company and which the transportation is to be allowed or prohibited.”
oil production.
 Regulation V: Every purchaser/shipper/refiner of petroleum Congress had failed to provide a “primary standard” to guide the
should file a monthly statement giving information on the executive branch. This oversight allowed the president to act as he
company and oil production. pleased rather than within an administrative role.
 Regulation VII: Aforementioned should keep adequate
books and records of all transactions involving the This gives the President “unlimited authority to determine the
production and transportation of petroleum and petroleum policy… as he may see fit. And disobedience to his order is made a
products. crime punishable by fine and imprisonment.”

Further EOs were issued: This “hot oil” provision was seen as an unconstitutional delegation
 President issued “Petroleum Code” (Code of Fair of legislative powers to the executive branch, thus violating the
Competition for the Petroleum Industry) on August 19, doctrine of separation of powers.
1933 regulating the production of petroleum as deemed
necessary by each state’s requirement. 11 YNOT V. IAC
 President issued an EO on August 28, 1933 designating the 148 SCRA 659
Sec. of the Interior as the Administrator and the
Department of the Interior as the federal agency, to FACTS:
exercise on behalf of the President all powers vested in him An Executive Order was issued by the then President Marcos. The
under that Act and Code. said Executive Order prohibited the interprovincial movement of
carabaos and the slaughtering of carabaos not complying with the
The Panama Refining Co. and the Amazon Petroleum Corp. requirements of another Executive Order. Violation of said EO is
pressed suits on October 1933 to restrain the defendants (federal punished by confiscation. Petitioner was found guilty of violating
officials) from enforcing the restrictions on the production and said order when he transported his carabaos from Masbate to Iloilo,
disposition of oil. and his carabaos were subsequently confiscated.

HELD: HELD:
EO 6199, 6204 and the regulations issued by the Sec. of the Interior It is marked that the questionable manner of the disposition of the
are without constitutional authority. confiscated property as prescribed in the questioned executive
order. It is there authorized that the seized property shall "be
In trying to regulate the transportation of oil production in excess distributed to charitable institutions and other similar institutions
of state permission, “the Congress has declared no policy, has as the Chairman of the National Meat Inspection Commission may
established no standard, has laid down no rule. There is no see fit, in the case of carabeef, and to deserving farmers through

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 13 -

dispersal as the Director of Animal Industry may see fit, in the case a. The legislature is not always in session and its
of carabaos." The phrase "may see fit" is an extremely generous and members can agree only on general policies but not
dangerous condition, if condition it is. It is laden with perilous matters of detail. Even if they could agree on
opportunities for partiality and abuse, and even corruption. One details, there is the danger of being too detailed
searches in vain for the usual standard and the reasonable control and regulation may hamper the efficiency
guidelines, or better still, the limitations that the said officers must of the administrative agencies
observe when they make their distribution. There is none. Their 5. Delegation of the power to ascertain facts, contingencies or
options are apparently boundless. Who shall be the fortunate events upon which the applicability or non-applicability of
beneficiaries of their generosity and by what criteria shall they be a law is made to depend
chosen? Only the officers named can supply the answer, they and a. Congress may enact a law the taking effect of which
they alone may choose the grantee as they see fit, and in their own is made to depend upon the happening of future
exclusive discretion. Definitely, there is here a "roving specified contingencies to be determined by the
commission," a wide and sweeping authority that is not "canalized executive or administrative agencies or officers
within banks that keep it from overflowing," in short, a clearly 6. Delegation of power to people at large, when such has been
profligate and therefore invalid delegation of legislative powers. reserved by the Constitution
a. Referendum is an example
EXCEPTIONS: PERMISSIBLE DELEGATION 7. Delegation of power to the executive in the field of
1. When permitted by the Constitution itself international and diplomatic relations
a. Example is the emergency powers granted to the
President ADVANTAGES OF DELEGATION OF POWER TO
2. In case of delegation of legislative power to local ADMINISTRATIVE AGENCIES
governments 1. It relieves the legislature of great burden of work in respect
a. Creation of municipalities exercising local self- to which it has no special competence, and thus, enables it
government more largely to direct its attention to matters of general
b. Following are usually delegated to the local import
governments—police power, eminent domain, and 2. It entrusts the drafting of detailed provisions, which are
taxation usually of highly technical character to the agencies most
3. Delegation of power to fill in the details familiar with the conditions to be met and which will have
a. Matters of detail may be left by the legislature to responsibility for its enforcement
the discretion of the administrative agencies by 3. It permits great flexibility in adopting the regulations to the
filling it with rules and regulations different classes of individuals or interests affected
4. Delegation of rule-making and adjudicatory powers to 4. It makes possible the prompt modification of a provision as
administrative bodies, provided ascertainable standards are soon as experience dictates that it is unsatisfactory
set

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 14 -

12 EDU V. ERICTA on the sides and in the rear shall all be red. Penalties resulting from
35 SCRA 481 a violation thereof could be imposed.

FACTS: HELD:
Edu is the Land Transportation Commissioner. He issued an It is a fundamental principle flowing from the doctrine of
Administrative Order to implement the Reflector Law. Galo filed separation of powers that Congress may not delegate its legislative
for preliminary injunction for the execution of said law and power to the two other branches of the government, subject to the
challenged its constitutionality. The judge issued the injunction exception that local governments may over local affairs participate
against the execution of the Administrative Order and the subject in its exercise. What cannot be delegated is the authority under the
law. Constitution to make laws and to alter and repeal them; the test is
the completeness of the statute in all its term and provisions when
Such administrative order, which took effect on April 17, 1970, has it leaves the hands of the legislature. To determine whether or not
a provision on reflectors in effect reproducing what was set forth in there is an undue delegation of legislative power the inquiry must
the Act. Thus: "No motor vehicles of whatever style, kind, make, be directed to the scope and definiteness of the measure enacted.
class or denomination shall be registered if not equipped with The legislature does not abdicate its functions when it describes
reflectors. Such reflectors shall either be factory built-in-reflector what job must be done, who is to do it, and what is the scope of his
commercial glass reflectors, reflection tape or luminous paint. The authority. For a complex economy, that may indeed be the only way
luminosity shall have an intensity to be maintained visible and in which the legislative process can go forward. A distinction has
clean at all times such that if struck by a beam of light shall be rightfully been made between delegation of power to make the laws
visible 100 meters away at night." Then came a section on which necessarily involves a discretion as to what it shall be, which
dimensions, placement and color. As to dimensions the following is constitutionally may not be done, and delegation of authority or
provided for: "Glass reflectors Not less than 3 inches in diameter or discretion as to its execution to exercised under and in pursuance
not less than 3 inches square; Reflectorized Tape At least 3 inches of the law, to which no valid objection call be made. The
wide and 12 inches long. The painted or taped area may be bigger Constitution is thus not to be regarded as denying the legislature
at the discretion of the vehicle owner." Provision is then made as to the necessary resources of flexibility and practicability.
how such reflectors are to be "placed, installed, pasted or painted."
There is the further requirement that in addition to such reflectors To avoid the taint of unlawful delegation, there must be a standard,
there shall be installed, pasted or painted four reflectors on each which implies at the very least that the legislature itself determines
side of the motor vehicle parallel to those installed, pasted or matters of principle and lay down fundamental policy. Otherwise,
painted in front and those in the rear end of the body thereof. The the charge of complete abdication may be hard to repel. A standard
color required of each reflectors, whether built-in, commercial thus defines legislative policy, marks its limits, its maps out its
glass, reflectorized tape or reflectorized paint placed in the front boundaries and specifies the public agency to apply it. It indicates
part of any motor vehicle shall be amber or yellow and those placed the circumstances under which the legislative command is to be
effected. It is the criterion by which legislative purpose may be

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 15 -

carried out. Thereafter, the executive or administrative office impracticable (if not impossible) to anticipate and proved for the
designated may in pursuance of the above guidelines promulgate multifarious and complex situations that may be met in carrying the
supplemental rules and regulations. law in effect. All that is required is that the regulation should
germane to the objects and purposes of the law; that the regulation
The standard may be either express or implied. If the former, the be not in contradiction with it; but conform to the standards that
non-delegation objection is easily met. The standard though does the law prescribes ... "
not have to be spelled out specifically. It could be implied from the
policy and purpose of the act considered as a whole. In the It bears repeating that the Reflector Law construed together with
Reflector Law, clearly the legislative objective is public safety. the Land Transportation Code. Republic Act No. 4136, of which it
is an amendment, leaves no doubt as to the stress and emphasis on
This is to adhere to the recognition given expression by Justice public safety which is the prime consideration in statutes of this
Laurel in a decision announced not long after the Constitution character. There is likewise a categorical affirmation Of the power
came into force and effect that the principle of non-delegation "has of petitioner as Land Transportation Commissioner to promulgate
been made to adapt itself the complexities of modern governments, rules and regulations to give life to and translate into actuality such
giving rise to the adoption, within certain limits, of the principle of fundamental purpose. His power is clear. There has been no abuse.
"subordinate legislation" not only in the United States and England His Administrative Order No. 2 can easily survive the attack, far-
but in practically all modern governments." He continued: from-formidable, launched against it by respondent Galo.
"Accordingly, with the growing complexity of modern life, the
multiplication of the subjects of governmental regulation, and the 13 CRUZ V. YOUNGBERG
increased difficulty of administering the laws, there is a constantly 56 PHIL. 234
growing tendency toward the delegation of greater powers by the
legislature and toward the approval of the practice by the courts." 45 FACTS:
Consistency with the conceptual approach requires the reminder An action was brought against Youngberg who was then the
that what is delegated is authority non-legislative in character, the Director of Bureau of Animal Industry. The action was against the
completeness of the statute when it leaves the hands of Congress refusal of Youngberg to issue a permit for the landing and
being assumed. subsequent slaughtering of large cattle imported by Cruz. Cruz
averred that the law on which Youngberg was basing his refusal is
Our later decisions speak to the same effect. Thus from, Justice J. unconstitutional. The subject law’s purpose was to prevent the
B. L. Reyes in People vs. Exconde: 46 "It is well establish in this spread of cattle diseases in the country.
jurisdiction that, while the making of laws is a non-delegable
activity that corresponds exclusively to Congress, nevertheless the HELD:
latter may constitutionally delegate authority to promulgate rules In his third assignment of error the petitioner claims that "The
and regulations to implement a given legislation and effectuate its lower court erred in not holding that the power given by Act No.
policies, for the reason that the legislature often finds it

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 16 -

3155 to the Governor-General to suspend or not, at his discretion, acts of these agents must reflect and conform to the will of their
the prohibition provided in the act constitutes an unlawful principal. To test the validity of such acts in the specific case now
delegation of the legislative powers." before us, we apply the particular requisites of a valid ordinance as
laid down by the accepted principles governing municipal
This contention is bereft of any merit. corporations.

The true distinction, therefore, is between the delegation of power According to Elliot, a municipal ordinance, to be valid:
to make the law, which necessarily involves a discretion as to what 1) must not contravene the Constitution or any statute;
it shall be, and conferring an authority or discretion as to its 2) must not be unfair or oppressive;
execution, to be exercised under and in pursuance of the law. The 3) must not be partial or discriminatory;
first cannot be done; to the latter no valid objection can be made. 4) must not prohibit but may regulate trade;
5) must not be unreasonable; and 6) must be general and consistent
14 SOLICITOR GENENRAL V. MMA with public policy.
204 SCRA 837
The measures under consideration do not pass the first criterion
FACTS: because they do not conform to existing law. The pertinent law is
In an earlier case, it was held that the confiscation of license plates PD 1605. PD 1605 does not allow either the removal of license
and driver’s licenses were not part of the sanctions to be imposed plates or the confiscation of driver's licenses for traffic violations
in case of traffic violations. But subsequent developments committed in Metropolitan Manila. There is nothing in the
occurred, wherein there were many incidents of confiscation. An following provisions of the decree authorizing the Metropolitan
ordinance was then enacted for the confiscation of license plates in Manila Commission (and now the Metropolitan Manila Authority) to
case of violations. The court acted on such ordinance. MMA impose such sanctions.
defends itself by saying that the ordinance it promulgated was in
pursuance of an executive order. The solicitor general on the other In fact, the above provisions prohibit the imposition of such
hand contended that the ordinance was null and void for being an sanctions in Metropolitan Manila. The Commission was allowed to
unlawful delegation of legislative power. "impose fines and otherwise discipline" traffic violators only "in
such amounts and under such penalties as are herein prescribed,"
HELD: that is, by the decree itself. Nowhere is the removal of license plates
The problem before us is not the validity of the delegation of directly imposed by the decree or at least allowed by it to be
legislative power. The question we must resolve is the validity of imposed by the Commission. Notably, Section 5 thereof expressly
the exercise of such delegated power. provides that "in case of traffic violations, the driver's license shall
not be confiscated."
The measures in question are enactments of local governments
acting only as agents of the national legislature. Necessarily, the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 17 -

The requirement that the municipal enactment must not violate intending purchaser from an examination of the certificates might
existing law explains itself. Local political subdivisions are able to be assured and know the grade and quality of the hemp offered for
legislate only by virtue of a valid delegation of legislative power sale.
from the national legislature (except only that the power to create
their own sources of revenue and to levy taxes is conferred by the HELD:
Constitution itself). They are mere agents vested with what is called The question here is whether or not the law in question delegates
the power of subordinate legislation. As delegates of the Congress, to the Fiber Board legislative powers or administrative functions to
the local government unit cannot contravene but must obey at all carry out the purpose and intent of the law for its more efficient
times the will of their principal. In the case before us, the administration. It must be conceded that the details, spirit and
enactments in question, which are merely local in origin, cannot intent of the law could only be carried into effect through a board
prevail against the decree, which has the force and effect of a of commission.
statute.
It will be noted that section 1772 of the Administrative Code, as
The measures in question do not merely add to the requirement of amended, provides:
PD 1605 but, worse, impose sanctions the decree does not allow The Fiber Standardization Board shall determine the official
and in fact actually prohibits. In so doing, the ordinances disregard standards for the various commercial grades of Philippine fibers
and violate and in effect partially repeal the law. that are or may hereafter be produced in the Philippine Islands for
shipment abroad. Each grade shall have its proper name and
15 ALLEGRE V. COLLECTOR designation which, together with the basis upon which the several
53 PHILS. 394 grades are determined, shall be defined by the said Board in a
general order. Such order shall have the approval of the Secretary
FACTS: of Agriculture and Natural Resources; and for the dissemination of
The petitioner for a number of years has been and is now engaged information, copies of the same shall be supplied gratis to the
in the production of abaca and its exportation to foreign markets. foreign markets, provincial governors, municipal presidents, and to
He applied to the respondent for a permit to export one hundred such other persons and agencies as shall make request therefor.
bales of abaca to England, which was denied, and advised that he
would not be permitted to export the abaca in question without a If it is considered expedient to change these standards at any time,
certificate of the Fiber Standardization Board. notice shall be given in the local and foreign markets for a period of
at least six months before the new standard shall go into effect.
It be noted that the purpose and intent of the original law, wherein
the respondent based his denial, was to provide in detail for the That is to say, the Legislature has specifically provided for the
inspection grading and baling of abaca, maguey, sisal and other creation of "official standards for commercial grades of fibers," and
fibers, and for a uniform scale for grading, and to issue official that "the Fiber Standardization Board shall determine the official
certificates as to the kind and quality of the hemp, so that an

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 18 -

standards for the various commercial grades of Philippine fibers," 36 PHIL. 547
and that:
FACTS:
All fibers within the purview of this law which are intended for The plaintiff still insists with great vigor that section 1 of Act No.
export shall be pressed in uniform bales. The approximate volume 1748; entitled "An Act authorizing the adjustment of provincial and
and net weight of each bale, together with the manner of binding, municipal boundaries and authorizing the change of capitals of
marking, wrapping, and stamping of the same, shall be defined in a provinces and subprovinces, as may be necessary from time to time
general order by the Fiber Standardization Board. to serve the public convenience and interest," is in violation of the
Act of Congress of July 1, 1902, in that it delegates legislative
And section 1788, as amended, provides that no fiber shall be powers to the Governor-General, whereas the Act of Congress
exported in quality greater than the amount sufficient to make one referred to lodges those powers in the Philippine Legislature.
bale, without being graded, baled, inspected, and certified as in this
law provided. That is to say, the law provides in detail for the Section 1 of the Act referred to provides in substance that,
inspection, grading and bailing of hemp the Fiber Board with the whenever in the judgment of the Governor-General the public
power and authority to devise ways and means for its execution. In welfare requires, he may, by executive order, enlarge, contract, or
legal effect, the Legislature has said that before any hemp is otherwise change the boundary of any province, subprovince,
exported from the Philippine Islands it must be inspected, graded municipality, or township or other political subdivision, or separate
and baled, and has created a board or that purpose and vested it any such subdivision into such portions as may be requires, merge
with the power and authority to do the actual work. That is not a any of such subdivisions with another, divide, any province into
delegation o legislative power. It is nothing more than a delegation one or more subdivisions as may be required, name any new
of administrative power in the Fiber Board, to carry out the subdivision so created, change the seat of government within any
purpose and intent of the law. In the very nature of things, the subdivision existing or created thereunder, to such place therein as
Legislature could not inspect, grade and bale the hemp, and from the public interests require, and shall fix in such executive order
necessity, the power to do that would have to be vested in a board the date when the change, merger, separation or other action shall
of commission. take effect. The section also provides that whenever the Governor-
General creates a new political subdivision he shall appoint such
The petitioner's contention would leave the law, which provides for officers for the new subdivision with such powers and duties as
the inspection, grading and baling of hemp, without any means of may be required by the existing provisions of law applicable to the
its enforcement. If the law cannot be enforced by such a board or case and fix their salaries; and that such appointees shall hold office
commission, how and by whom could it be enforced? The criticism until their successors are appointed or elected and qualify.
that there is partiality or even fraud in the administration of the law Successors to the elective offices shall be elected at the next general
is not an argument against its constitutionality. election following such appointment.

16 MUN. OF CARDONA V. MUN. OF BINANGONAN HELD:

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 19 -

The contention of the plaintiff is not well founded. The delegation National Assembly or by executive orders of the President of the
of the power referred to on the Governor-General does not involve Philippines, the Director of Public Works, with the approval of the
an abdication of legislative functions on the part of the legislature Secretary of Public Works and Communications, shall promulgate
with regard to the particular subject-matter with which it authorizes the necessary rules and regulations to regulate and control the use
the Governor-General to deal. It is simply a transference of certain of and traffic on such roads and streets. Such rules and regulations,
details with respect to provinces, municipalities, and townships, with the approval of the President, may contain provisions
many of them newly created, and all of them subject to more or less controlling or regulating the construction of buildings or other
rapid change both in development and centers of population, the structures within a reasonable distance from along the national
proper regulation of which might require not only prompt action roads. Such roads may be temporarily closed to any or all classes of
but action of such a detailed character as not to permit the traffic by the Director of Public Works and his duly authorized
legislative body, as such, to take it efficiently. representatives whenever the condition of the road or the traffic
thereon makes such action necessary or advisable in the public
17 CALALANG V. WILLIAMS convenience and interest, or for a specified period, with the
70 PHIL. 726 approval of the Secretary of Public Works and Communications.”

FACTS: The above provisions of law do not confer legislative power upon
Calalang filed an action against Williams and several others for the Director of Public Works and the Secretary of Public Works
prohibiting animal-drawn vehicles from passing particular roads. and Communications. The authority therein conferred upon them
He alleged that the law granting the Director of Public Works from and under which they promulgated the rules and regulations now
implementing rules and regulations is unconstitutional as it an complained of is not to determine what public policy demands but
undue delegation of legislative power. merely to carry out the legislative policy laid down by the National
Assembly in said Act, to wit, “to promote safe transit upon and
HELD: avoid obstructions on, roads and streets designated as national
This is untenable. roads by acts of the National Assembly or by executive orders of the
President of the Philippines” and to close them temporarily to any
The true distinction therefore is between the delegation of power to or all classes of traffic “whenever the condition of the road or the
make the law, which necessarily involves a discretion as to what it traffic makes such action necessary or advisable in the public
shall be, and conferring an authority or discretion as to its convenience and interest.” The delegated power, if at all, therefore,
execution, to be exercised under and in pursuance of the law. The is not the determination of what the law shall be, but merely the
first cannot be done; to the latter no valid objection can be made. ascertainment of the facts and circumstances upon which the
application of said law is to be predicated.
Section 1 of Commonwealth Act No. 548 reads as follows:
“SECTION 1. To promote safe transit upon, and avoid obstructions 18 EASTERN SHIPPING V. POEA
on, roads and streets designated as national roads by acts of the 166 SCRA 533

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 20 -

legislature to the delegate. Thus, in Ynot v. Intermediate Apellate


FACTS: Court 12 which annulled Executive Order No. 626, this Court held:
Victoriano Saco was the employee of a vessel who was killed in an We also mark, on top of all this, the questionable manner of the
accident. Pursuant to a Memorandum Circular, his widow filed disposition of the confiscated property as prescribed in the
with the POEA an action against the vessel owner for the burial questioned executive order. It is there authorized that the seized
and funeral expenses of her deceased husband. The vessel owner property shall be distributed to charitable institutions and other
averred that the husband wasn't an overseas contract worker and similar institutions as the Chairman of the National Meat
thus, the claim must have been filed somewhere else. Nonetheless, Inspection Commission may see fit, in the case of carabaos.' (Italics
the POEA acted on the action and ordered that damages be paid to supplied.) The phrase "may see fit" is an extremely generous and
the widow. dangerous condition, if condition it is. It is laden with perilous
opportunities for partiality and abuse, and even corruption. One
Part of what was appealed was that the Memorandum Circular by searches in vain for the usual standard and the reasonable
the POEA was an undue delegation of legislative power. guidelines, or better still, the limitations that the officers must
observe when they make their distribution. There is none. Their
HELD: options are apparently boundless. Who shall be the fortunate
The authority to issue the said regulation is clearly provided in beneficiaries of their generosity and by what criteria shall they be
Section 4(a) of Executive Order No. 797, reading as follows: chosen? Only the officers named can supply the answer, they and
they alone may choose the grantee as they see fit, and in their own
... The governing Board of the Administration (POEA), as exclusive discretion. Definitely, there is here a 'roving commission
hereunder provided shall promulgate the necessary rules and a wide and sweeping authority that is not canalized within banks
regulations to govern the exercise of the adjudicatory functions of that keep it from overflowing,' in short a clearly profligate and
the Administration (POEA). therefore invalid delegation of legislative powers.

Similar authorization had been granted the National Seamen There are two accepted tests to determine whether or not there is a
Board, which, as earlier observed, had itself prescribed a standard valid delegation of legislative power, viz, the completeness test and
shipping contract substantially the same as the format adopted by the sufficient standard test. Under the first test, the law must be
the POEA. complete in all its terms and conditions when it leaves the
legislature such that when it reaches the delegate the only thing he
The second challenge is more serious as it is true that legislative will have to do is enforce it. Under the sufficient standard test,
discretion as to the substantive contents of the law cannot be there must be adequate guidelines or stations in the law to map out
delegated. What can be delegated is the discretion to determine the boundaries of the delegate's authority and prevent the
how the law may be enforced, not what the law shall be. The delegation from running riot.
ascertainment of the latter subject is a prerogative of the legislature.
This prerogative cannot be abdicated or surrendered by the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 21 -

Both tests are intended to prevent a total transference of legislative 220 SCRA 703
authority to the delegate, who is not allowed to step into the shoes
of the legislature and exercise a power essentially legislative. FACTS:
Petitioner seeks to assail the unconstitutionality of a provision of a
The principle of non-delegation of powers is applicable to all the PD with respect to an unlawful delegation of legislative power to
three major powers of the Government but is especially important the Energy Regulatory Board. This is related to the
in the case of the legislative power because of the many instances implementation of the OPSF. Petitioner premises his arguments
when its delegation is permitted. The occasions are rare when that what the OPSF entailed was taxation power which should have
executive or judicial powers have to be delegated by the authorities been lodged with the State and not to the ERB.
to which they legally certain. In the case of the legislative power,
however, such occasions have become more and more frequent, if HELD:
not necessary. This had led to the observation that the delegation of Hence, it seems clear that while the funds collected may be referred
legislative power has become the rule and its non-delegation the to as taxes, they are exacted in the exercise of the police power of
exception. the State. Moreover, that the OPSF is a special fund is plain from
the special treatment given it by E.O. 137. It is segregated from the
The reasons given above for the delegation of legislative powers in general fund; and while it is placed in what the law refers to as a
general are particularly applicable to administrative bodies. With "trust liability account," the fund nonetheless remains subject to
the proliferation of specialized activities and their attendant the scrutiny and review of the COA. The Court is satisfied that
peculiar problems, the national legislature has found it more and these measures comply with the constitutional description of a
more necessary to entrust to administrative agencies the authority "special fund." Indeed, the practice is not without precedent.
to issue rules to carry out the general provisions of the statute. This
is called the "power of subordinate legislation." With regard to the alleged undue delegation of legislative power, the
Court finds that the provision conferring the authority upon the
With this power, administrative bodies may implement the broad ERB to impose additional amounts on petroleum products provides
policies laid down in a statute by "filling in' the details which the a sufficient standard by which the authority must be exercised. In
Congress may not have the opportunity or competence to provide. addition to the general policy of the law to protect the local
This is effected by their promulgation of what are known as consumer by stabilizing and subsidizing domestic pump rates,
supplementary regulations, such as the implementing rules issued Section 8(c) of P.D. 1956 expressly authorizes the ERB to impose
by the Department of Labor on the new Labor Code. These additional amounts to augment the resources of the Fund.
regulations have the force and effect of law.
What petitioner would wish is the fixing of some definite,
Memorandum Circular No. 2 is one such administrative regulation. quantitative restriction, or "a specific limit on how much to tax."
The Court is cited to this requirement by the petitioner on the
19 OSMEÑA V. ORBOS premise that what is involved here is the power of taxation; but as

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 22 -

already discussed, this is not the case. What is here involved is not "Where the standards set up for the guidance of an administrative
so much the power of taxation as police power. Although the officer and the action taken are in fact recorded in the orders of
provision authorizing the ERB to impose additional amounts could such officer, so that Congress, the courts and the public are assured
be construed to refer to the power of taxation, it cannot be that the orders in the judgment of such officer conform to the
overlooked that the overriding consideration is to enable the legislative standard, there is no failure in the performance of the
delegate to act with expediency in carrying out the objectives of the legislative functions."
law which are embraced by the police power of the State.
This Court thus finds no serious impediment to sustaining the
The interplay and constant fluctuation of the various factors validity of the legislation; the express purpose for which the
involved in the determination of the price of oil and petroleum imposts are permitted and the general objectives and purposes of
products, and the frequently shifting need to either augment or the fund are readily discernible, and they constitute a sufficient
exhaust the Fund, do not conveniently permit the setting of fixed or standard upon which the delegation of power may be justified.
rigid parameters in the law as proposed by the petitioner. To do so
would render the ERB unable to respond effectively so as to 20 GUINGONA V. CARAGUE
mitigate or avoid the undesirable consequences of such fluidity. As 196 SCRA 221
such, the standard as it is expressed, suffices to guide the delegate
in the exercise of the delegated power, taking account of the FACTS:
circumstances under which it is to be exercised. Senators are questioning the constitutionality of the automatic
appropriation for debt service in the 1990 budget.
For a valid delegation of power, it is essential that the law
delegating the power must be (1) complete in itself, that is it must Petitioners argue that the said automatic appropriations under the
set forth the policy to be executed by the delegate and (2) it must fix aforesaid decrees of then President Marcos became functus oficio
a standard limits of which are sufficiently determinate or when he was ousted in February, 1986; that upon the expiration of
determinable to which the delegate must conform. the one-man legislature in the person of President Marcos, the
legislative power was restored to Congress on February 2, 1987
The standard, as the Court has already stated, may even be implied. when the Constitution was ratified by the people; that there is a
In that light, there can be no ground upon which to sustain the need for a new legislation by Congress providing for automatic
petition, inasmuch as the challenged law sets forth a determinable appropriation, but Congress, up to the present, has not approved
standard which guides the exercise of the power granted to the any such law; and thus the said P86.8 Billion automatic
ERB. By the same token, the proper exercise of the delegated appropriation in the 1990 budget is an administrative act that rests
power may be tested with ease. It seems obvious that what the law on no law, and thus, it cannot be enforced.
intended was to permit the additional imposts for as long as there
exists a need to protect the general public and the petroleum
industry from the adverse consequences of pump rate fluctuations.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 23 -

Moreover, petitioners contend that assuming arguendo that P.D. No.


81, P.D. No. 1177 and P.D. No. 1967 did not expire with the ouster The automatic appropriation provides the flexibility for the
of President Marcos, after the adoption of the 1987 Constitution, effective execution of debt management policies.
the said decrees are inoperative under Section 3, Article XVIII.
Ideally, the law must be complete in all its essential terms and
They assert that there must be definiteness, certainty and exactness conditions when it leaves the legislature so that there will be
in an appropriation, 11 otherwise it is an undue delegation of nothing left for the delegate to do when it reaches him except
legislative power to the President who determines in advance the enforce it. If there are gaps in the law that will prevent its
amount appropriated for the debt service. enforcement unless they are first filled, the delegate will then have
been given the opportunity to step in the shoes of the legislature
HELD: and exercise a discretion essentially legislative in order to repair the
The Court is not persuaded. omissions. This is invalid delegation.

Section 3, Article XVIII of the Constitution recognizes that "All Although the subject presidential decrees do not state specific
existing laws, decrees, executive orders, proclamations, letters of amounts to be paid, necessitated by the very nature of the problem
instructions and other executive issuances not inconsistent with the being addressed, the amounts nevertheless are made certain by the
Constitution shall remain operative until amended, repealed or legislative parameters provided in the decrees. The Executive is not
revoked." of unlimited discretion as to the amounts to be disbursed for debt
servicing. The mandate is to pay only the principal, interest, taxes
This transitory provision of the Constitution has precisely been and other normal banking charges on the loans, credits or
adopted by its framers to preserve the social order so that indebtedness, or on the bonds, debentures or security or other
legislation by the then President Marcos may be recognized. Such evidences of indebtedness sold in international markets incurred by
laws are to remain in force and effect unless they are inconsistent virtue of the law, as and when they shall become due. No
with the Constitution or, are otherwise amended, repealed or uncertainty arises in executive implementation as the limit will be
revoked. the exact amounts as shown by the books of the Treasury.

An examination of the aforecited presidential decrees show the REQUISITES FOR VALID DELEGATION
clear intent that the amounts needed to cover the payment of the
principal and interest on all foreign loans, including those 21 PELAEZ V. AUDITOR GENERAL
guaranteed by the national government, should be made available 15 SCRA 569
when they shall become due precisely without the necessity of
periodic enactments of separate laws appropriating funds therefor, FACTS:
since both the periods and necessities are incapable of In accordance with the Revised Administrative Code, the President
determination in advance. of the Philippines issued Executive Orders ordering the creation of

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 24 -

new municipalities. This prompted the petitioner, who was then


the vice-president of the country to file a special civil action for a COMPLETENESS
writ of prohibition and preliminary injunction against the auditor-  The law gives the delegated body what to do
general, to restrain him of passing into audit any expenditure of  Usually found in the text of the law
public funds in implementation of said executive orders and/or any
disbursement of said municipalities. Petitioner alleges that the said 22 U.S. V. ANG TANG HO
executive orders are null and void as they constitute undue 43 PHIL. 1
delegation of legislative power.
FACTS:
HELD: The legislature passed a law called “An Act penalizing the
The legislature cannot delegate to the President the power to create monopoly and holding of, and speculation in, palay, rice, and corn
municipalities. Whereas the power to fix such common boundary, under extraordinary circumstances, regulating the distribution and
in order to avoid or settle disputes of jurisdiction between sale thereof, and authorizing the Governor-General, with the
adjoining municipalities, may partake of an administrative nature— consent of the Council of State, to issue the necessary rules and
involving the adoption of ways and means to carry into effect the regulations therefor, and making an appropriation for this
law creating such municipalities—the authority to create municipal purpose.” Subsequently, the governor-general ruled on the price
corporations is essentially legislative in nature. It is strictly a and as consequence thereof, defendant was charged with
legislative function. overcharging. He was convicted and imprisoned. He now assails
the validity of the statute for which he was found guilty of violating.
Although the Congress may delegate to another branch of
government the power to fill in the details in the execution, The question here involves an analysis and construction of Act No.
enforcement or administration of a law, it is essential to forestall a 2868, in so far as it authorizes the Governor-General to fix the price
violation of the principle of separation of powers, that said law: at which rice should be sold. It will be noted that section 1
1. Be complete in itself—it must set forth therein the policy authorizes the Governor-General, with the consent of the Council
to be executed, carried out or implemented by the of State, for any cause resulting in an extraordinary rise in the price
delegate of palay, rice or corn, to issue and promulgate temporary rules and
2. Fix a standard—the limits of which are sufficiently emergency measures for carrying out the purposes of the Act. By its
determined or determinable—to which the delegate very terms, the promulgation of temporary rules and emergency
must conform in performance of his functions. measures is left to the discretion of the Governor-General. The
Without a statutory declaration of policy, the delegate would in Legislature does not undertake to specify or define under what
effect, make or formulate such policy, which is the essence of every conditions or for what reasons the Governor-General shall issue
law; and without the appropriate standard, there would be no the proclamation, but says that it may be issued "for any cause,"
means to determine, with reasonable certainty, whether the and leaves the question as to what is "any cause" to the discretion
delegate has acted within or beyond the scope of his authority. of the Governor-General.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 25 -

The legislature cannot delegate its power to make a law, but it can
HELD: make a law to delegate a power to determine some fact or state of
By the organic law of the Philippine Islands and the Constitution of things upon which the law makes, or intends to make, its own
the United States all powers are vested in the Legislative, Executive action to depend.
and Judiciary. It is the duty of the Legislature to make the law; of
the Executive to execute the law; and of the Judiciary to construe When Act No. 2868 is analyzed, it is the violation of the
the law. The Legislature has no authority to execute or construe the proclamation of the Governor-General which constitutes the crime.
law, the Executive has no authority to make or construe the law, Without that proclamation, it was no crime to sell rice at any price.
and the Judiciary has no power to make or execute the law. In other words, the Legislature left it to the sole discretion of the
Governor-General to say what was and what was not "any cause"
A law must be complete, in all its terms and provisions, when it for enforcing the act, and what was and what was not "an
leaves the legislative branch of the government, and nothing must extraordinary rise in the price of palay, rice or corn," and under
be left to the judgment of the electors or other appointee or certain undefined conditions to fix the price at which rice should
delegate of the legislature, so that, in form and substance, it is a law be sold, without regard to grade or quality, also to say whether a
in all its details in presenti, but which may be left to take effect in proclamation should be issued, if so, when, and whether or not the
futuro, if necessary, upon the ascertainment of any prescribed fact law should be enforced, how long it should be enforced, and when
or event. the law should be suspended. The Legislature did not specify or
define what was "any cause," or what was "an extraordinary rise in
The line of cleavage between what is and what is not a delegation of the price of rice, palay or corn," Neither did it specify or define the
legislative power is pointed out and clearly defined. As the conditions upon which the proclamation should be issued. In the
Supreme Court of Wisconsin says: absence of the proclamation no crime was committed. The alleged
sale was made a crime, if at all, because the Governor-General
That no part of the legislative power can be delegated by the issued the proclamation.
legislature to any other department of the government, executive or
judicial, is a fundamental principle in constitutional law, essential Act No. 2868, in so far as it undertakes to authorized the Governor-
to the integrity and maintenance of the system of government General in his discretion to issue a proclamation, fixing the price of
established by the constitution. rice, and to make the sale of rice in violation of the price of rice,
and to make the sale of rice in violation of the proclamation a
Where an act is clothed with all the forms of law, and is complete crime, is unconstitutional and void.
in and of itself, it may be provided that it shall become operative
only upon some certain act or event, or, in like manner, that its STANDARDS
operation shall be suspended.  Provides the quality that the body must follow the
instruction
 Usually found in the whereas clauses of the law

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 26 -

23 PEO. V. ROSENTHAL
68 PHIL. 328 HELD:
Besides it is certainly apparent that if the conditions are within the
FACTS: power of the State to impose, they can only be ascertained by an
Accused were charged of violations of the Blue Sky Law. The same executive officer. Reputation and character are quite tangible
has the following provision— attributes, but there can be no legislative definition of them that
can automatically attach to or identify individuals possessing them,
Under section 2 of Act No. 2581, every person, partnership, and necessarily the aid of some executive agency must be invoked.
association, or corporation attempting to offer to sell in the The contention of appellees would take from government one of its
Philippines speculative securities of any kind or character most essential instrumentalities, of which the various national and
whatsoever, is under obligation to file previously with the Insular state commissions are instances.
Treasurer the various documents and papers enumerated therein
and to pay the required tax of twenty pesos. Certain securities listed 24 CERVANTES V. AUDITOR GENERAL
in section 3 are exempted from the operation of the Act. Section 5 91 PHIL. 359
imposes upon the Insular Treasurer the mandatory duty to examine
the statements and documents thus filed and the additional duty to FACTS:
make or cause to be made, if deemed advisable by him, a detailed This action commenced from the denial of the Auditor General of
examination of the affairs of the applicant. Section 5 also provides petitioner’s quarters allowance pursuant to being the manager of
that "whatever the said Treasurer of the Philippine Islands is the National Abaca and Other Fibers Corporation (NAFCO).
satisfied, either with or without the examination herein provided,
that any person, partnership, association or corporation is entitled NAFCO was created through special charter and subsequently, a
to the right to offer its securities as above defined and provided for law was passed granting the President authority to effect reforms
sale in the Philippine Islands, he shall issue to such person, and changes in government-controlled and owned corporations.
partnership, association or corporation a certificate or permit He then issued an executive order pursuant to this and formed a
reciting that such person, partnership, association or corporation General Enterprises Council, one of the members composing this is
has complied with the provisions of this Act, and that such person, the President himself, among others. Thereafter, pursuant to the
partnership, association or corporation, its brokers or agents are authority of the General Enterprises Council and the objective of
entitled to offer the securities named in said certificate or permit reforming and improving government-owned and controlled
for sale"; that "said Treasurer shall furthermore have authority, corporations, the GES cancelled the resolution issued in allowing
whenever in his judgment it is in the public interest, to cancel said the quarters allowance. One ground for its cancellation is the
certificate or permit", and that "an appeal from the decision of the illegal increase in salaries.
Insular Treasurer may be had within the period of thirty days to the
Secretary of Finance." HELD:

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 27 -

So long as the Legislature "lays down a policy and a standard is In our opinion, the requirements above-quoted constitute an
established by the statute" there is no undue delegation. (11 Am. adequate standard, to wit, simplicity and dignity of the flag
Jur. 957). Republic Act No. 51 in authorizing the President of the ceremony and the singing of the National Anthem specially when
Philippines, among others, to make reforms and changes in contrasted with other standards heretofore upheld by the Courts:
government-controlled corporations, lays down a standard and "public interest"; "public welfare”; Interest of law and order";
policy that the purpose shall be to meet the exigencies attendant justice and equity and the substantial merits of the case"; or
upon the establishment of the free and independent government of "adequate and efficient instruction". That the Legislature did not
the Philippines and to promote simplicity, economy and efficiency specify the details of the flag ceremony is no objection to the
in their operations. The standard was set and the policy fixed. The validity of the statute, for all that is required of it is the laying down
President had to carry the mandate. This he did by promulgating of standards and policy that will limit the discretion of the
the executive order in question which, tested by the rule above regulatory agency. To require the statute to establish in detail the
cited, does not constitute an undue delegation of legislative power. manner of exercise of the delegated power would be to destroy the
administrative flexibility that the delegation is intended to achieve.
25 PEO. V. JOLIFFE
105 PHIL. 677 27 A.L.A. SCHECTER POULTRY V. U.S.
295 U.S. 495
FACTS:
FACTS:
HELD: Live poultry code was enacted pursuant to the National Industrial
Recovery Act. The law gave the President unbridled discretion
26 BALBUNA V. SEC. OF EDUCATION with respect to regulations and rules that could be implemented in
110 PHIL. 150 preventing unfair competition. Note that there was no standards
specifically set in defining what unfair competition is.
FACTS:
An action seeking to enjoin the enforcement of the Compulsory HELD:
Flag Ceremony law, wherein petitioners aver as one of the grounds To summarize and conclude upon this point: Section 3 of the
against its validity is the violation of delegation of legislative powers Recovery Act is without precedent. It supplies no standards for any
for its failure to lay down any specific and definite standard by trade, industry, or activity. It does not undertake to prescribe rules
which the Secretary of Education may be guided in the preparation of conduct to be applied to particular states of fact determined by
of those rules and regulations which he has been authorized to appropriate administrative procedure. Instead of prescribing rules
promulgate." of conduct, it authorizes the making of codes to prescribe them.
For that legislative undertaking, section 3 sets up no standards,
HELD: aside from the statement of the general aims of rehabilitation,
correction, and expansion described in section 1. In view of the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 28 -

scope of that broad declaration and of the *542 nature of the few
restrictions that are imposed, the discretion of the President in HELD:
approving or prescribing codes, and thus enacting laws for the Court has no recourse but to rule against the legality of the order,
government of trade and industry throughout the country, is the Bureau of Energy Utilization not being empowered to issue it.
virtually unfettered. We think that the code-making authority thus Section 7 of P.D. No. 1206, as amended, is very clear as to the
conferred is an unconstitutional delegation of legislative power. courses of action that the Bureau of Energy Utilization may take in
case of a violation or non- compliance with any term or condition
POWERS AND FUNCTIONS OF ADMINISTRATIVE of any certificate, license or permit issued by the Bureau or any of
AGENCIES its orders, decisions, rules or regulations. The Bureau may: (1)
impose a fine not exceeding P1,000.00; and (2) in case of failure to
SOURCES AND SCOPE pay the fine imposed or to cease and discontinue the violation or
 The powers and functions of administrative agencies are non-compliance, order the suspension, closure or stoppage of
defined either in the Constitution or in legislation or in operations of the establishment of the guilty party. Its authority is
both limited to these two (2) options. It can do no more, as there is
 Where created by statute or where their powers are left to nothing in P.D. No. 1206, as amended, which empowers the Bureau
be defined by legislation, the powers of administrative to issue an order to vacate in case of a violation.
agencies are limited by the statutes creating them to those
conferred expressly or by necessary or fair implication As it is, jurisdiction to order a lessee to vacate the leased premises
is vested in the civil courts in an appropriate case for unlawful
28 GUERZON V. COURT OF APPEALS detainer or accion publiciana [Secs. 19(2) and 33(2), B.P. Blg. 129, as
164 SCRA 182 amended.] There is nothing in P.D. No. 1206, as amended, that
would suggest that the same or similar jurisdiction has been
FACTS: granted to the Bureau of Energy Utilization. It is a fundamental rule
Guerzon entered into a service station lease contract with Basic that an administrative agency has only such powers as are expressly
Landoil Energy Corporation, which was later acquired by Pilipinas granted to it by law and those that are necessarily implied in the
Shell. The said contract contained a provision stating that the exercise thereof.
contract would end at a certain date. Further, respondent wrote
Guerzon that upon the expiration of the contract, it would not be CONSTRUCTION OF GRANT OF POWERS
renewed. The date came and Guerzon still didn't vacate the  General language describing the powers and functions of
premises. Shell wrote him a letter, furnishing the Bureau of an administrative body may be construed to extend no
Energy Utilization a copy thereof. The bureau on the other hand further than the specific duties and powers conferred in the
issued an order against Guerzon to vacate the premises as soon as same statute
possible.  In determining whether a board or commission has a
certain power, the authority given should be liberally

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 29 -

construed in the light of the purposes for which it was In the existence of his power, the Ombudsman is authorized to call
created, and that which is incidentally necessary to a full on prosecutors for assistance. It does not matter that the Office of
exploitation of the legislative intent should be upheld as the Provincial Prosecutor had already conducted the preliminary
being germane to the law investigation and all that remained to be done was for the Office of
the Provincial Prosecutor to file the corresponding case in court.
28 LASTIMOSA V. VASQUEZ Even if the preliminary investigation had been given over to the
243 SCRA 497 Provincial Prosecutor to conduct, his determination of the nature
of the offense to be charged would still be subject to the approval
FACTS: of the Office of the Ombudsman.
A complaint for attempted rape was filed against the municipal
mayor by the public health nurse. This was referred to an 29 MATIENZO V. ABELLERA
investigator who didn't find any prima facie case against the mayor 162 SCRA 1
and recommended the dismissal of the complaint. The
Ombudsman disagreed with the findings and ordered for the FACTS:
corresponding charges to be filed against the mayor. The case was Respondents sought the licensing of their excess taxicab units
referred to the prosecutors who after conducting preliminary pursuant to PD101, which was enacted to prevent the unlawful
investigation, found no probable cause to file a case against the operations of clandestine taxicabs, etc. Petitioners sought the
mayor. This prompted the Ombudsman to preventively suspend annulment of the provisional licenses granted to the respondents
the prosecutors and filed administrative complaints against them. for the operation of their excess taxicab units.

HELD: HELD:
he office of the Ombudsman has the power to "investigate and Indeed, a reading of Section 1, PD 101, shows a grant of powers to
prosecute on its own or on complaint by any person, any act or the respondent Board to issue provisional permits as a step towards
omission of any public officer or employee, office or agency, when the legalization of colorum taxicab operations without the alleged
such act or omission appears to be illegal, unjust, improper or time limitation. There is nothing in Section 4, cited by the
inefficient." 14 This power has been held to include the petitioners, to suggest the expiration of such powers six (6) months
investigation and prosecution of any crime committed by a public after promulgation of the Decree. Rather, it merely provides for the
official regardless of whether the acts or omissions complained of withdrawal of the State's waiver of its right to punish said colorum
are related to, or connected with, or arise from, the performance of operators for their illegal acts. In other words, the cited section
his official duty 15 It is enough that the act or omission was declares when the period of moratorium suspending the relentless
committed by a public official. Hence, the crime of rape, when drive to eliminate illegal operators shall end. Clearly, there is no
committed by a public official like a municipal mayor, is within the impediment to the Board's exercise of jurisdiction under its broad
power of the Ombudsman to investigate and prosecute. powers under the Public Service Act to issue certificates of public

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 30 -

convenience to achieve the avowed purpose of PD 101 (Sec. 16a,


Public Service Act, Nov. 7, 1936). It is noteworthy that the assailed circulars do not prohibit the
petitioner from engaging in the recruitment and deployment of
It is a settled principle of law that in determining whether a board Filipino landbased workers for overseas employment. A careful
or commission has a certain power, the authority given should be reading of the challenged administrative issuances discloses that
liberally construed in the light of the purposes for which it was the same fall within the "administrative and policing powers
created, and that which is incidentally necessary to a full expressly or by necessary implication conferred" upon the
implementation of the legislative intent should be upheld as being respondents (People vs. Maceren, 79 SCRA 450). The power to
germane to the law. Necessarily, too, where the end is required, the "restrict and regulate conferred by Article 36 of the Labor Code
appropriate means are deemed given involves a grant of police power (City of Naga vs. Court of Appeals,
24 SCRA 898). To "restrict" means "to confine, limit or stop" (p. 62,
30 PASEI V. TORRES Rollo) and whereas the power to "regulate" means "the power to
212 SCRA 298 protect, foster, promote, preserve, and control with due regard for
the interests, first and foremost, of the public, then of the utility
FACTS: and of its patrons" (Philippine Communications Satellite
Due to the numerous stories of Filipino workers being abused in Corporation vs. Alcuaz, 180 SCRA 218).
Hong Kong, the DOLE suspended the recruitment by private
employment agencies of OFW’s for Hong Kong. Pursuant to this Nevertheless, they are legally invalid, defective and unenforceable
department order, the POEA issued a memorandum circular laying for lack of power publication and filing. Administrative rules and
down guidelines for government processing and deployment of regulations must also be published if their purpose is to enforce or
workers. Petitioner sought the annulment of the orders, on the implement existing law pursuant also to a valid delegation.
ground that they are unlawful and oppressive and in excess of the Interpretative regulations and those merely internal in nature, that
rule-making authority of the POEA and DOLE. is, regulating only the personnel of the administrative agency and
not the public, need not be published. Neither is publication
HELD: required of the so-called letters of instructions issued by
The vesture of quasi-legislative and quasi-judicial powers in administrative superiors concerning the rules or guidelines to be
administrative bodies is not unconstitutional, unreasonable and followed by their subordinates in the performance of their duties.
oppressive. It has been necessitated by "the growing complexity of
the modern society" (Solid Homes, Inc. vs. Payawal, 177 SCRA 72, 31 REALTY EXCHANGE VENTURE CORP. V. SENDINO
79). More and more administrative bodies are necessary to help in 233 SCRA 665
the regulation of society's ramified activities. "Specialized in the
particular field assigned to them, they can deal with the problems FACTS:
thereof with more expertise and dispatch than can be expected Sendino entered into a reservation agreement with REVI for a
from the legislature or the courts of justice" (Ibid.). parcel of land in a subdivision. She was able to complete payment

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 31 -

for reservation but REVI wrote to her that the agreement was notice of this pernicious practice, it can only hope that future
cancelled due to non-compliance by Sendino with the submission legislation would address the need to protect the innocent middle
of some requirements. This prompted the respondent to file a or lower class home purchaser. In the case of the individual victim,
complaint for specific performance with the HLURB, which this Court can only go to the extent of awarding such damages as
decided in favor of Sandino. may be proper under the peculiar circumstances of the cases
brought before it.
HELD:
There is no question that a statute may vest exclusive original 32 MKSE V. SECRETARY
jurisdiction in an administrative agency over certain disputes and 14 SCRA 620
controversies falling within the agency's special expertise.
FACTS:
In fine, the HLURB-OAALA acted within the scope of its authority Petitioner is denied authority to operate until it lists and trades
in ordering petitioners to comply and continue with the sale of the stocks not yet traded in the Manila Stock Exchange. The petitioner
house and lot subject of the contract between the original parties. It averred that such is tantamount to prohibition since it is impossible
cannot be gainsaid that the quasi-judicial functions exercised by to do such condition given that Manila Stock Exchange has long
the body are necessary incidents to the proper exercise of its been the primary stock exchange in the country.
powers and functions under E.O. 90 and the laws enacted
delineating the scope of authority of its Board of Commissioners. HELD:
Denying the body those functions so necessary in carrying out its It is fundamental that an administrative officer has only such
power to regulate housing and land use results in its effective powers as are expressly granted to him by the statute, and those
emasculation as an important regulatory body in an area vital to the necessarily implied in the exercise thereof.
national economy.
In its brief and its resolution now subject to review, the
The acute housing shortage problem has prompted thousands of Commission cites no provision expressly supporting its rule.
middle and lower class buyers of houses and lots and condominium Nevertheless, it suggests that the power is "necessary for the
units to enter into all sorts of agreements with private housing execution of the functions vested in it"; but it makes no
developers involving all manner of installment schemes under explanation, perhaps relying on the reasons advanced in support of
contracts drawn exclusively by these developers. Many of these its position that trading of the same securities in two or more stock
virtual contracts of adhesion entrap innocent buyers by requiring exchanges, fails to give protection to the investors, besides
cash deposits under reservation agreements which include, contravening public interest. (Of this, we shall treat later).
sometimes in the fine print, default clauses guaranteeing huge
monetary windfalls for the developers in the event that their buyers EXECUTIVE)/ADMINISTRATIVE FUNCTIONS
(oftentimes for the flimsiest of reasons) default by failing to come  The powers and functions usually granted to and exercised
up with certain requirements. While the Court can take judicial by administrative agencies are the following—rule making,

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 32 -

adjudication, and such incidental powers such as


investigating, supervising, prosecuting, advising, declaring, FACTS:
and informally adjudicating Petitioner was granted a timber license agreement. On a
subsequent act, the boundary covered by the license was
ADMINISTRATIVE RULE-MAKING OR QUASI- established. Thereafter, a timber license agreement was also
LEGISLATIVE POWER granted to respondent, which was adjacent to the land covered by
 It is the power to promulgate rules and regulations or petitioner. Petitioner then complained because of the alleged
general orders which are legally binding and receive encroachment of the area by respondent. Because of this, it was
statutory force upon going into effect and the formulation found out that it was actually petitioner who was depriving the
of interpretative rulings or regulations which don't receive other a certain area of land. The amendment done to the TLA was
statutory force but are accorded great weight when found to be erroneous. To this judgment, the petitioner seeks a
questioned reversal.

TESTS DETERMINING NATURE OF POWER HELD:


 The test as to whether a power is strictly legislative or In reviewing administrative decisions of the Executive branch of
whether it is administrative is to determine its exercise the Government, . . . the findings of fact made therein must be
involves a discretion as to what law shall be or merely the respected, so long as they are supported by substantial evidence,
authority to fix, the details in the execution or enforcement even if not overwhelming or preponderant. It is not for the
of a policy set out in the law itself reviewing court to weigh the conflicting evidence, determine the
 The first is legislative credibility of the witnesses, or otherwise substitute its own
 The second is administrative judgment for that of the administrative agency on the sufficiency of
the evidence.
GENERAL KINDS OF ADMINISTRATIVE RULES AND
REGULATIONS It is a well-recognized principle that purely administrative and
1. Supplementary or detailed legislation—rules and discretionary functions may not be interfered with by the courts. In
regulations by reason of particular delegation of authority general, courts have no supervising power over the proceedings
2. Interpretative rules and regulations—rules and regulations and actions of the administrative departments of the government.
constructing or interpreting the statutes being administered This is generally true with respect to acts involving the exercise of
3. Contingent legislation—rules and regulations involving judgment or discretion, and findings of facts.
determination under a delegated power whether a statute
shall go into effect Public respondents Minister of Natural Resources and Deputy
Executive Secretary, the latter acting for and in behalf and with the
33 PICOP V. DEPUTY EXEC. SECRETARY authority of the President, did not abuse their discretion when they
184 SCRA 606 ordered the amendment or correction of petitioner's TLA No. 43-3.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 33 -

After finding that there was an authorized increase in the including the power to summon witnesses by subpoena or
concession area of PICOP, the correction of its license was a subpoena duces tecum, administer oaths, take testimony or
necessary consequence. evidence relevant to the investigation.

34 EVANGELISTA V. JARENCIO Pursuant to this, a subpoena was issued for the Acting Public
68 SCRA 99 Service Officer Of Manila to assist in the investigation of a case
filed with the agency. Instead of following the subpoena, the
FACTS: officer filed with the court for prohibition among other reliefs.
Pursuant to his special powers and duties under Section 64 of the
Revised Administrative Code, 1 the President of the Philippines HELD:
created the Presidential Agency on Reforms and Government It has been essayed that the life blood of the administrative process
Operations (PARGO) under Executive Order No. 4 of January 7, is the flow of fact, the gathering, the organization and the analysis
1966. 2 Purposedly, he charged the Agency with the following of evidence. 7 Investigations are useful for all administrative
functions and responsibilities: functions, not only for rule making, adjudication, and licensing, but
also for prosecuting, for supervising and directing, for determining
b. To investigate all activities involving or affecting immoral general policy, for recommending, legislation, and for purposes no
practices, graft and corruptions, smuggling (physical or technical), more specific than illuminating obscure areas to find out what if
lawlessness, subversion, and all other activities which are anything should be done. 8 An administrative agency may be
prejudicial to the government and the public interests, and to authorized to make investigations, not only in proceedings of a
submit proper recommendations to the President of the legislative or judicial nature, but also in proceedings whose sole
Philippines. purpose is to obtain information upon which future action of a
legislative or judicial nature may be taken 9 and may require the
c. To investigate cases of graft and corruption and violations of attendance of witnesses in proceedings of a purely investigatory
Republic Acts Nos. 1379 and 3019, and gather necessary evidence nature. It may conduct general inquiries into evils calling for
to establish prima facie, acts of graft and acquisition of unlawfully correction, and to report findings to appropriate bodies and make
amassed wealth ... . recommendations for actions. 10

h. To receive and evaluate, and to conduct fact-finding We recognize that in the case before Us, petitioner Agency draws
investigations of sworn complaints against the acts, conduct or its subpoena power from Executive Order No. 4, para. 5 which, in
behavior of any public official or employee and to file and an effectuating mood, empowered it to "summon witness,
prosecute the proper charges with the appropriate agency. administer oaths, and take testimony relevant to the investigation"
11 with the authority "to require the production of documents
For a realistic performance of these functions, the President vested under a subpoena duces tecum or otherwise, subject in all respects
in the Agency all the powers of an investigating committee to the same restrictions and qualifications as apply in judicial

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 34 -

proceedings of a similar character." 12 Such subpoena power subpoena. Clearly, what the Rules speaks of is a judicial subpoena,
operates in extenso to all the functions of the Agency as laid out in one procurable from and issuable by a competent court, and not an
the aforequoted sub-paragraphs (b),(e), and (h). It is not bordered administrative subpoena. To an extent, therefore, the "restrictions
by nor is it merely exercisable, as respondents would have it, in and qualifications" referred to in Section 580 of the Revised
quasi-judicial or adjudicatory function under sub-paragraph (b). Administrative Code could mean the restraints against
The functions enumerated in all these sub-paragraphs (b), (e), and infringement of constitutional rights or when the subpoena is
(h) interlink or intertwine with one another with the principal aim unreasonable or oppressive and when the relevancy of the books,
of meeting the very purpose of the creation of the Agency, which is documents or things does not appear. 15
to forestall and erode nefarious activities and anomalies in the civil
service. To hold that the subpoena power of the Agency is confined Rightly, administrative agencies may enforce subpoenas issued in
to mere quasi-judicial or adjudicatory functions would therefore the course of investigations, whether or not adjudication is
imperil or inactiviate the Agency in its investigatory functions involved, and whether or not probable cause is shown 16 and even
under sub-paragraphs (e) and (h). More than that, the enabling before the issuance of a complaint. 17 It is not necessary, as in the
authority itself (Executive Order No. 4, para. 5) fixes no distinction case of a warrant, that a specific charge or complaint of violation of
when and in what function should the subpoena power be law be pending or that the order be made pursuant to one. It is
exercised. Similarly, We see no reason to depart from the enough that the investigation be for a lawfully authorized purpose.
established rule that forbids differentiation when the law itself 18 The purpose of the subpoena is to discover evidence, not to
makes none. prove a pending charge, but upon which to make one if the
discovered evidence so justifies. 19 Its obligation cannot rest on a
Nor could We impress upon this subpoena power the alleged trial of the value of testimony sought; it is enough that the
strictures of a subpoena issued under the Rules of Court 13 to proposed investigation be for a lawfully authorized purpose, and
abridge its application. The seeming proviso in Section 580 of the that the proposed witness be claimed to have information that
Revised Administrative Code that the right to summon witnesses might shed some helpful light. 20 Because judicial power is
and the authority to require the production of documents under a reluctant if not unable to summon evidence until it is shown to be
subpoena duces tecum or otherwise shall be "subject in all respects relevant to issues on litigations it does not follow that an
to the same restrictions and qualifications as apply in judicial administrative agency charged with seeing that the laws are
proceedings of a similar character" cannot be validly seized upon to enforced may not have and exercise powers of original inquiry. The
require, in respondents' formulation, that, as in a subpoena under administrative agency has the power of inquisition which is not
the Rules, a specific case must be pending before a court for dependent upon a case or controversy in order to get evidence, but
hearing or trial and that the hearing or trial must be in connection can investigate merely on suspicion that the law is being violated or
with the exercise of the court's judicial or adjudicatory functions 14 even just because it wants assurance that it is not. When
before a non-judicial subpoena can be issued by an administrative investigative and accusatory duties are delegated by statute to an
agency like petitioner Agency. It must be emphasized, however, administrative body, it, too may take steps to inform itself as to
that an administrative subpoena differs in essence from a judicial whether there is probable violation of the law. 21 In sum, it may be

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 35 -

stated that a subpoena meets the requirements for enforcement if pensions to those already receiving from the USVA. After 22 years
the inquiry is (1) within the authority of the agency; (2) the demand from this cancellation, petitioner files for mandamus.
is not too indefinite; and (3) the information is reasonably relevant.
HELD:
ADMINISTRATIVE CONSTRUCTION AND The contention of appellant PVA that the action of appellee Maria
INTERPRETATION U. Español to compel the restoration of her monthly pension and
 This provides a practical guide as to how the agency will that of her children, effective from the date of cancellation on
seek to apply the law and as experienced and informed November 1, 1951, has already prescribed, inasmuch as the same
judgment to which courts and litigants may properly resort was filed more than 10 years from the date of cancellation, is
for guidance without merit.
 One who chooses to rely upon an interpretative regulation
does so at his own peril and stands the risk of its not being Article 1144 of the New Civil Code provides that actions based on
followed by the courts an obligation created by law shall be brought within 10 years from
 An erroneous construction of a statute by an administrative the time the right of action accrues. It is important to reckon the
agency cannot operate to confer a legal right in accordance date, when the right of action accrues, as the same is the beginning
with such construction for counting the 10-year prescriptive period.
 The administrative construction doesn't and cannot control
the court’s decision as to the proper construction of a The right of action accrues when there exists a cause of action,
statute but generally or in particular circumstances it is which consists of 3 elements, namely: a) a right in favor of the
given great weight and has a very persuasive influence and plaintiff by whatever means and under whatever law it arises or is
may actually be regarded by the courts as the controlling created; b) an obligation on the part of defendant to respect such
factor right; and c) an act or omission on the part of such defendant
 A construction is not binding on them or their successors if violative of the right of the plaintiff (Cole vs. Vda. de Gregorio, 116
thereafter they become satisfied that a different SCRA 670 [1982]; Mathay vs. Consolidated Bank & Trust Co., 58
construction should be given SCRA 559 [1974]; Vda. de Enriquez vs. De la Cruz, 54 SCRA 1
[1973]). It is only when the last element occurs or takes place that it
35 ESPAÑOL V. CHAIRMAN, PVA, can be said in law that a cause of action has arisen (Cole vs. Vda. de
137 SCRA 314 Gregorio, supra).

FACTS: The appellee cannot be said to have a cause of action, in


Petitioner was a widow of a military personnel who served during compelling appellant to continue paying her monthly pension on
World War 2. Her application for pension from the PVA was November 1, 1951, because appellant's act of cancellation, being
approved but subsequently, it was cancelled due to the pursuant to an administrative policy, cannot be considered a
administrative policy of the PVA not to grant anymore monthly violation of appellee's right to receive her monthly pension.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 36 -

November 1, 1951, the date of cancellation by appellant of


It is elementary rule in administrative law that administrative appellee's pension. The action of appellee, which was brought on
regulations and policies enacted by administrative bodies to February 25, 1974, is therefore well within the 10-year prescriptive
interpret the law which they are entrusted to enforce, have the period.
force of law, are entitled to great respect (Sierra Madre Trust vs.
Secretary of Agriculture and Natural Resources, 121 SCRA 384 36 VICTORIAS MILLING V. SOCIAL SECURITY SYSTEM
[1983]; Asturias Sugar Central Inc. vs. Commissioner of Customs, 4 SCRA 627
29 SCRA 617 [1969]; Antique Sawmill Inc. vs. Zayco, et al., 17
SCRA 316 [1966]), and have in their favor a presumption of legality. FACTS:
Thus, appellant's act of cancelling appellee's monthly pension
being presumed legal and valid, cannot be taken as a violation of HELD:
appellee's right to receive her monthly pension under R.A. No. 65. A rule is binding on the courts so long as the procedure fixed for its
promulgation is followed and its scope is within the statute granted
In the case of Del Mar vs. The Philippine Veterans Administration by the legislature, even if the courts are not in agreement with the
(51 SCRA 340 [1973]), this Court did not consider prescription in policy stated therein or its innate wisdom ...." On the other hand,
favor of PVA, even though the action of Del Mar was filed on June "administrative interpretation of the law is at best merely advisory,
20, 1964 or more than 10 years from the cancellation of his monthly for it is the courts that finally determine what the law means."
pension in March, 1950; because the action of Del Mar was basically Indeed, it cannot be otherwise as the Constitution limits the
to declare the questioned administrative policy invalid, which authority of the President, in whom all executive power resides, to
action does not prescribe. take care that the laws be faithfully executed. No lesser
administrative, executive office, or agency then can, contrary to the
It is only when this Court declared invalid the questioned express language of the Constitution, assert for itself a more
administrative policy in the case of Del Mar vs. The Philippine extensive prerogative. Necessarily, it is bound to observe the
Veterans Administration, supra, promulgated on June 27, 1973, can constitutional mandate. There must be strict compliance with the
the appellee be said to have a cause of action to compel appellant to legislative enactment.
resume her monthly pension; because it is at that point in time,
when the presumption of legality of the questioned administrative 37 HILADO V. CIR
policy had been rebutted and thus it can be said with certainty that 100 PHIL. 288
appellant's act was in violation of appellee's right to receive her
monthly pension. FACTS:
Emilio Hilado filed his income tax return for 1951 with the
The 10-year prescriptive period, therefore, should be counted from treasurer of Bacolod City, claiming a deductible item of P12,837.65
June 27, 1973 when the case of Del Mar vs. The Philippine from his gross income pursuant to General Circular V-123 issued
Veterans Administration, supra, was promulgated, and not from by the Collector of Internal Revenue. The Secretary of Finance,

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 37 -

through the Collector, issued General Circular V-139 which  There is no constitutional necessity for a hearing as a
revoked and declared void Circular V-123; and laid down the rule[s] prerequisite to the promulgation of a general regulation by
that losses of property which occurred in World War II from fires, an administrative body hence in the absence of any a
storms, shipwreck or other casualty, or from robbery, theft, or statutory restriction an administrative agency may ascertain
embezzlement are deductible in the year of actual loss or in any manner
destruction of said property. The deductions were disallowed.  It sees fit what rules what rules should be made
 When the rule is procedural, no notice is required
HELD:  Notice is also not required in the preparation of substantive
Philippines Internal Revenue Laws are not political in nature and rules affecting the class at large and the questions to be
as such were continued in force during the period of enemy resolved involve the use of wide discretion which has been
occupation and in effect were actually enforced by the occupation committed to the rule-making agency
government. Such tax laws are deemed to be laws of the occupied  But if the rule or order is directed specifically to a party or
territory and not of the occupying enemy. As of the end of 1945, of a compact group and the administrative agency exercises
there was no law which Hilado could claim for the destruction of only a limited degree of discretion, actual notice and
his properties during the battle for the liberation of the opportunity for hearing may be required
Philippines. Under the Philippine Rehabilitation Act of 1948, the
payment of claims by the War Damage Commission depended 39 TAXICAB OPERATORS V. BOT
upon its discretions non-payment of which does not give rise to any 117 SCRA 597
enforceable right. Assuming that the loss (deductible item)
represents a portion of the 75% of his war damage claim, the FACTS:
amount would be at most a proper deduction of his 1950 gross The Board of Transportation issued a memorandum circular
income (not on his 1951 gross income) as the last installment and prohibiting the operation as taxis of cars, which were more than 6
notice of discontinuation of payment by the War Damage years old. Pursuant to the above BOT circular, respondent Director
Commission was made in 1950. of the Bureau of Land Transportation (BLT) issued Implementing
Circular No. 52, dated August 15, 1980, instructing the Regional
38 CO V. CA Director, the MV Registrars and other personnel of BLT, all within
227 SCRA 444 the National Capitol Region, to implement said Circular, and
formulating a schedule of phase-out of vehicles to be allowed and
FACTS: accepted for registration as public conveyances.

HELD: HELD:
Presidential Decree No. 101 grants to the Board of Transportation
PROMULGATION OF RULES the power

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 38 -

4. To fix just and reasonable standards, classification, regulations, It is clear from the provision aforequoted, however, that the leeway
practices, measurements, or service to be furnished, imposed, accorded the Board gives it a wide range of choice in gathering
observed, and followed by operators of public utility motor necessary information or data in the formulation of any policy, plan
vehicles. or program. It is not mandatory that it should first call a conference
or require the submission of position papers or other documents
Section 2 of said Decree provides procedural guidelines for said from operators or persons who may be affected, this being only one
agency to follow in the exercise of its powers: of the options open to the Board, which is given wide discretionary
authority. Petitioners cannot justifiably claim, therefore, that they
Sec. 2. Exercise of powers. In the exercise of the powers granted in were deprived of procedural due process. Neither can they state
the preceding section, the Board shag proceed promptly along the with certainty that public respondents had not availed of other
method of legislative inquiry. sources of inquiry prior to issuing the challenged Circulars.
operators of public conveyances are not the only primary sources of
Apart from its own investigation and studies, the Board, in its the data and information that may be desired by the BOT.
discretion, may require the cooperation and assistance of the
Bureau of Transportation, the Philippine Constabulary, particularly Dispensing with a public hearing prior to the issuance of the
the Highway Patrol Group, the support agencies within the Circulars is neither violative of procedural due process. As held in
Department of Public Works, Transportation and Central Bank vs. Hon. Cloribel and Banco Filipino, 44 SCRA 307
Communications, or any other government office or agency that (1972):
may be able to furnish useful information or data in the
formulation of the Board of any policy, plan or program in the Pevious notice and hearing as elements of due process, are
implementation of this Decree. constitutionally required for the protection of life or vested
property rights, as well as of liberty, when its limitation or loss
The Board may also can conferences, require the submission of takes place in consequence of a judicial or quasi-judicial
position papers or other documents, information, or data by proceeding, generally dependent upon a past act or event which
operators or other persons that may be affected by the has to be established or ascertained. It is not essential to the
implementation of this Decree, or employ any other suitable means validity of general rules or regulations promulgated to govern
of inquiry. future conduct of a class or persons or enterprises, unless the law
provides otherwise. (Emphasis supplied)
In support of their submission that they were denied procedural
due process, petitioners contend that they were not caged upon to Petitioners further take the position that fixing the ceiling at six (6)
submit their position papers, nor were they ever summoned to years is arbitrary and oppressive because the roadworthiness of
attend any conference prior to the issuance of the questioned BOT taxicabs depends upon their kind of maintenance and the use to
Circular. which they are subjected, and, therefore, their actual physical
condition should be taken into consideration at the time of

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 39 -

registration. As public contend, however, it is impractical to subject general applicability” is a mandated by law, and is a requirement of
every taxicab to constant and recurring evaluation, not to speak of due process. Presidential decrees that provide for fines, forfeitures
the fact that it can open the door to the adoption of multiple or penalties for their violation or otherwise impose a burden on the
standards, possible collusion, and even graft and corruption. A people, such as tax and revenue measures fall within this category.
reasonable standard must be adopted to apply to an vehicles Before a person may be bound by law, he must be first be officially
affected uniformly, fairly, and justly. The span of six years supplies and specifically informed of its contents. When not published,
that reasonable standard. The product of experience shows that by such shall have no force and effect. However, the
that time taxis have fully depreciated, their cost recovered, and a implementation/enforcement of the presidential decrees prior to
fair return on investment obtained. They are also generally their publication in the Gazette is an operative facts, which may
dilapidated and no longer fit for safe and comfortable service to the have consequences which cannot be justly ignored.
public specially considering that they are in continuous operation
practically 24 hours everyday in three shifts of eight hours per shift. RATE-FIXING POWERS
With that standard of reasonableness and absence of arbitrariness,  The power to fix or limit the rates or charges exacted by
the requirement of due process has been met. public service corporations may be conferred upon
administrative agencies without involving an unlawful
40 TAÑADA V. TUVERA delegation of legislative power
146 SCRA 446  This also applies to the regulation of prices
 The only standard which the legislature must prescribe for
FACTS: the guidance of the administrative authorities is that the
Invoking the people’s right to be informed on matters of public rate must be reasonable and just
concern as well as the principle that laws to be valid and
enforceable must be published in the Official Gazette or otherwise RATE-FIXING WHEN LEGISLATIVE; WHEN QUASI-
effectively promulgated, Tañada, et.al. seek a writ of mandamus JUDICIAL
to compel public officials to publish presidential decrees, letters of  When rules and/or rates laid down by an administrative
instructions, general orders, proclamation, executive orders, agency are meant to apply to all enterprises of a given kind
letter of implementation and administrative orders. throughout the Philippines, they may partake of a
legislative character
HELD:  If its quasi-judicial in character, then a valid exercise would
The publication in the Official Gazette is required to give the need notice and hearing
general public adequate notice of the various laws which are to  Dean Roy: on the question of whether it is quasi-judicial or
regulate their actins and conduct as citizens. Publication is quasi-legislative, it depends on the circumstances. If the
necessary to apprise the public of the contents of regulations and rates are to be applied industry-wide, then it might be held
make penalties binding on the person affected thereby. The as quasi-legislative but when the consumers assert their
publication of all presidential issuances of a “public nature” or “of right to be heard, then it may be held as quasi-judicial.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 40 -

 Following the latest rebate on electrical costs of rates prescribed by an administrative agency in the exercise of its
MERALCO, it would depend on your present quasi-judicial function, prior notice and hearing are essential to the
consumption. If you would still look on the history of every validity of such rates. When the rules and/or rates laid down by an
consumption, then it would never end. administrative agency are meant to apply to all enterprises of a
 Provisional increase may be withdrawn and doesn't repose given kind throughout the country, they may partake of a legislative
any right—this is subject to return. This is the morale of character. Where the rules and the rates imposed apply exclusively
the story of the MERALCO cases. to a particular party, based upon a finding of fact, then its function
is quasi-judicial in character. 9a
REVIEW ON THE TYPES OF RULES AND THE CRITERIA
FOR THE RULES IMPLEMENTING THE LEGISLATION Is Department Order No. 37 issued by the DECS in the exercise of
 Internal rules its legislative function? We believe so. The assailed Department
 Rules of procedure Order prescribes the maximum school fees that may be charged by
 Rules implementing the legislation all private schools in the country for schoolyear 1987 to 1988. This
o Authority being so, prior notice and hearing are not essential to the validity of
o Scope its issuance.
o Reasonableness
This observation notwithstanding, there is a failure on the part of
41 PHIL. CONSUMERS V . SEC. OF EDUCATION the petitioner to show clear and convincing evidence of such
153 SCRA 622 arbitrariness. As the record of the case discloses, the DECS is not
without any justification for the issuance of the questioned
FACTS: Department Order. It would be reasonable to assume that the
Pursuant to the recommendation of a special task force created for report of the Task Force created by the DECS, on which it based
the purpose of assessing tuition fee increases in private higher its decision to allow an increase in school fees, was made
education institutions, the DECS issued an order authorizing the judiciously. Moreover, upon the instance of the petitioner, as it so
increase of tuition fees by 15-20%. Upon opposition from admits in its Petition, the DECS had actually reduced the original
petitioner, the margin was deducted to 10-15%. Despite this rates of 15% to 20% down to 10% to 15%, accordingly. Under the
however, the petitioner questioned the authorization of this circumstances peculiar to this case, We cannot consider the
increase by the DECS. assailed Department Order arbitrary.

HELD: Under the Rules of Court, it is presumed that official duty has been
The function of prescribing rates by an administrative agency may regularly performed. 10 In the absence of proof to the contrary,
be either a legislative or an adjudicative function. If it were a that presumption prevails. This being so, the burden of proof is on
legislative function, the grant of prior notice and hearing to the the party assailing the regularity of official proceedings. In the case
affected parties is not a requirement of due process. As regards

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 41 -

at bar, the petitioner has not successfully disputed the 184 SCRA 517
presumption.
FACTS:
42 PHILCOMSAT V. ALCUAZ PLDT filed an application with respondent for the approval of rates
180 SCRA 218 for Digital Transmission Services. Respondent issued a notice of
hearing and petitioners were not able to receive any notice and they
FACTS: weren’t included in the list of affected parties.
Petitioner was a holder of franchise allowing it to operate stations
and equipment for international satellite communications. It is also HELD:
authorized to construct facilities for the delivery of As to the required notice, it is impossible for the respondent to give
telecommunication services. Under the franchise afforded it, it was personal notice to all parties affected, not all of them being known
exempt from the jurisdiction of the Public Service Commission, to it. More than that, there is no dispute that the notice of hearing
now the NTC. However, in pursuant to a later Executive Order, was published. Petitioners have timely opportunity to oppose the
Petitioner was placed under its jurisdiction. NTC allowed it to petition in question so that the lack of notice is cured. Under the
continue its operations but was ordered to reduce its present circumstances, respondent can be deemed to have substantially
authorized rates by 15%. complied with the requirements. In any event, the provisional
nature of the authority and the fact that the primary application
HELD: shall be given a full hearing are the safeguards against its abuse.
In performance of such act, the respondent performed a function,
which partook of a quasi-judicial character, the valid exercise of 44 REPUBLIC V. MEDINA
which demands previous notice and hearing. Aside from statute, 41 SCRA 643
the necessity of notice and hearing in an administrative proceeding
depends on the character of the proceeding and the circumstances FACTS:
involved. In so far as generalization is possible in view of the great MERALCO filed an application with the Public Service
variety of administrative proceedings, it may be stated as a general Commission seeking approval of revised rate schedules, with
rule that notice and hearing are not essential to the validity of increased charges, claiming that the floating exchange rate and
administrative action where the administrative body acts in the economic conditions resulting therefrom increased its operating
exercise of executive, administrative, legislative functions; but and maintenance expenses by more than 40%, and likewise
where a public administrative body acts in a judicial or quasi- increased the peso cost of servicing its foreign debts, causing it to
judicial matter, and its acts are particular and immediate rather incur an operational deficit and net loss of over one million pesos a
than general and prospective, the person whose rights and property month. Embodied in the application was a motion "for immediate
may be affected by the action is entitled to notice and hearing. provision approval of proposed rates," which, over the opposition
of many was granted by the respondent Commission with a
43 RCPI V. NTC

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 42 -

condition that if after hearing, the application may still be rise to speculation, rumours and gossip by hasty or ill-considered
disapproved. action.

The commissioner ordered the books of accounts of MERALCO to REQUISITES FOR VALIDITY OF RULES
be examined and after hearing on the application, the Commission 1. That the rules and regulations must have been issued on
approved the same with minimal modifications. the authority of law (AUTHORITY)
2. That the rules and regulations must be within the scope
HELD: and purview of the laws (SCOPE)
It is concluded that the claim of denial of due process is unfounded 3. That said rules and regulations must be reasonable
and must be overruled. It is well to note here that the trial and (REASONABLENESS)
hearings were not continuous, and intervals of several days,
sometimes of a week or more, took place. The main outlines of the ISSUED ON AUTHORITY OF LAW
case for respondent Meralco (the adverse effect of the floating rate  The authority should essentially be based upon some
on the cost of operation) appeared from the testimony in chief of legislative act
applicant's witness Antonio Ozaeta, whose cross examination was
lengthy, occupying over 130 pages of the transcript. Hearings were 45 VDA. DE PIÑEDA V. PEÑA
held morning and afternoon, but only once did they proceed 187 SCRA 22
beyond 5 p.m., and most afternoon sessions starting at 2:00 p.m.
ended at 4 or earlier. No undue restrictions were placed on FACTS:
oppositors until the Public Service Commission, apparently The "Ped" mining claim was located by Pedro Sibayan. After his
realizing that its policy to allow even individual consumers to cross death, his heirs Miguela and Aleja Sibayan executed a Deed of
examine independently applicant's witnesses was unworkable and Extra-Judicial Settlement wherein they waived their rights and
would lead only to confusion, decided to limit the number of cross interest over the "Ped" claim, among others, in favor of co-heir
examiners. This lay within the trier's discretion and should not be Feliza Sibayan. Feliza then transferred said claims to Sofia Reyes.
interfered with in the absence of abuse, which is not here shown.
The "Ullmann" mining claim was located by Elvira Carmelo and
The foregoing consider and should not, however, be understood as was subsequently transferred to Joseph Palengaoan.
an approval of the practice of unnecessarily curtailing the
opportunities of parties litigant, barring exceptional circumstances. Thereafter, the Reyes, KM. 21 Mining Association was formed but
Otherwise, suspicion is aroused, and the public confidence eroded, was later converted into the KM. 21 Exploration Corporation, to
to the detriment of the administration of justice. It is the duty of which the members conveyed their respective mining claims,
tribunals, judicial or quasi-judicial, not only to be just but to appear including the "Ped" and "Ullmann" claims. Ultimately, the claims
to be actually so. It is equally their task to sedulously avoid giving were assigned to the Baguio Gold Mining Company for operation.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 43 -

A civil action was filed by the petitioners against Feliza on the Sec. 128. Issues Joined . . .
ground that the deed of extrajudicial settlement executed before
was falsified, wherein an amicable settlement was entered into by The Director, or the Secretary, in case of appeals, may motu
the parties. The Ped claim was returned to the petitioners. proprio look into the validity of mining claims, whether raised as an
Thereafter, a law was passed ordering that existing mining claims issue or not.
should file an application. Petitioners failed to comply.
It is established in jurisprudence that Congress may validly
HELD: delegate to administrative agencies the authority to promulgate
On the issue of jurisdiction…. rules and regulations to implement a given legislation and
effectuate its policies [People v. Exconde, 101 Phil. 1125 (1957);
On the issue of jurisdiction, petitioners contend that public Director of Forestry v. Munoz, G.R. No. L-24796, June 28, 1968, 23
respondents may not validly and legally take cognizance of an issue SCRA 1183]. In order to be valid, the administrative regulation
not raised in the complaint, i.e., the issue of the validity of the must be germane to the objects and purposes of the law, conform
"Ped" mining claim. to the standards that the law prescribes and must relate solely to
carrying into effect the general provisions of the law.
This assertion is mistaken. Petitioners had filed the protest case
pursuant to Pres. Decree No. 463 which vests the Bureau of Mines With these guidelines, Section 128 of the implementing rules
with jurisdiction over protests involving mining claims [Section 48, invoked by public respondents as basis for their jurisdiction cannot
Pres. Decree No. 463]. be tainted with invalidity. First, it was issued by the Department
Head pursuant to validly delegated rule-making powers. Second, it
Under the same Decree, Section 90 confers upon the Secretary of does not contravene the provisions of Pres. Decree No. 463, nor
Natural Resources, upon recommendation of the Director of Mines, does it expand the coverage of the Decree. Section 128 merely
the authority to issue rules, regulations and orders necessary to prescribes a procedural rule to implement the general provisions of
carry out the provisions and purposes of the Decree. In accordance the enabling law. It does not amend or extend the provisions of the
with the statutory grant of rule-making power, the Department statute.
Secretary on May 17, 1975 issued the Consolidated Mines
Administrative Order Implementing Pres. Decree No. 463, which Neither can it be maintained that such an implementing rule results
was published in the Official Gazette on June 16, 1975. in a denial of procedural due process, for it is axiomatic in
administrative law that what the law prohibits is not the absence of
One such implementing rule is Section 128, which respondent previous notice, but the absolute absence thereof and lack of
Minister of Natural Resources relied upon in his decision to dispose opportunity to be heard [Catura v. Court of Industrial Relations,
of the jurisdictional issue raise d by petitioners. Section 128 G.R. No. L-27392, January 30,1971, 37 SCRA 303, citing De Borja v.
provides: Tan, 93 Phil. 167 (1953)]. In this case, petitioners were afforded the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 44 -

opportunity to be heard on the validity of the "Ped" mining claim  It must be germane to the law and conform to the
when they submitted rebuttal evidence on appeal. standards that the law prescribes

Section 128, being a valid implementing rule, has the force and 46 LUZON POLYMERS V. CLAVE
effect of law. Thus, public respondents were duly empowered to 209 SCRA 711
inquire into the validity of the mining claims involved in the protest
case, even if not raised in issue. FACTS:
The emergency allowance of employees in the private sector has its
On the issue of due process… origin in Presidential Decree No. 390, granting said allowance to
government employees. Marcos issued an LOI directing the
As a rule, the courts will not interfere with purely administrative Minister of Labor to do necessary implementations for the private
matters involving the exercise of judgment and discretion, and sector. Under this statutory backdrop, petitioner, a corporation
findings of fact, of the administrative agency. The exception is with an authorized capital stock of P1 million and total assets of
when there is a clear showing that the agency acted arbitrarily or P2,656,793.45 as of December 31, 1974, was named a respondent in
with grave abuse of discretion or when it acted in a capricious a complaint for underpayment of emergency allowance filed before
manner such that its action may amount to an excess or lack of Regional Office No. 4 of the Department of Labor in 1976 by the
jurisdiction. In this case, the findings of the director was solely Luzon Polymers Labor Union (FFW) on behalf of 185 of its
based on the evidence of the private respondents and denied the members. Alleging that since February 1974, regular employees of
evidence presented in rebuttal by petitioners. There was grave petitioner corporation who were members of the union had been
abuse of discretion. receiving P1.15 daily or P30.00 monthly emergency allowance,
complainant-union contended that its members were entitled to
WITHIN SCOPE OF LAW P50.00 monthly emergency allowance in as much as their
 For administrative rules and regulations to be valid, must employer's total assets were over and above P1 million.
be within the authority conferred upon the administrative
agency For its part, petitioner claimed that since it had fully complied with
 The regulations adopted under legislative authority must be LOI No. 174, it had not underpaid its employees.
in execution of or supplementary to, but not in conflict
with, the law itself HELD:
 Such delegated power cannot extend to amending or To start with, paragraph 3 of LOI No. 174 mandates the grant of
adding to the requirements of the statute itself, but it is to P50 a month emergency allowance for employees of "enterprises
be presumed that the recognitions adopted were to carry capitalized at P1 million to P4 million or more" and P30 for
out only the provisions of the statute and not to embrace employees of "enterprises capitalized at P100,000 to P1 million."
matters not covered, nor intended to be covered While the determinative factor for the amount of emergency
allowance is simply the capitalization of the employer concerned,

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 45 -

the problem lies in the fact that the same provision of LOI No. 174 stock, or the total assets in the case of other undertakings." The
categorizes an enterprise capitalized at P1 million as under both the phrase "authorized capital stock" clearly refers to employers which
P50 and the P30 brackets of emergency allowance. are incorporated by law and therefore have authorized capital
stocks to speak of. Total assets as a determinative factor should only
This grey area, however, was clarified by the Interpretative Bulletin refer to "other undertakings."
on LOI No. 174 issued by the Department of Labor. Sec. 5 thereof
which is quoted above states that an employer has to pay the fifty- Sec. 7 of the Rules and Regulations, therefore, introduced a matter
pesos allowance "where the authorized capital stock of the which is not germane to the provisions of P.D. No. 525 by
corporation, or the total assets in the case of other undertakings, considering total assets as a criterion. Moreover, it further
exceeds P1 million or thirty pesos" where the authorized capital complicated the law by the addition of the phrase "whichever is
stock of the corporation, or the total assets in the case of other applicable and higher." In practice, the exercise of the option
undertakings, is not less than P100,000 but not more than P1 expressed in such phrase may lead to absurd situations. As
million." Clearly then, the petitioner falls under the bracket of demonstrated in this case, that which is higher, meaning
employers required to give a thirty-peso monthly emergency petitioner's total assets, may not also be applicable because
allowance under LOI No. 174 in view of the undisputed fact that it petitioner is not an "undertaking" within the purview of the
is a "domestic corporation duly organized and existing under Interpretative Bulletin and the Rules and Regulations
Philippine laws" with an authorized capital stock of one million Implementing P.D. No. 525.
pesos.
Sec. 7 of the Rules has not conformed with the standards that P.D.
What seems to have muddled the matter are the provisions of Sec. No. 525 prescribes. Having been based on an erroneous decision of
7 of the Rules and Regulations Implementing P.D. No. 525. Under the Office of the President, it is further rendered obnoxious by the
that section, petitioner appears to have been covered by the fifty- principle that an administrative agency like the Department of
peso bracket for it states that a monthly emergency allowance of Labor cannot amend the law it seeks to implement.
fifty pesos is required "where the authorized capital stock or total
assets, whichever is applicable and higher, is P1 million or more." 47 LINA V. CARIÑO
It should be observed that this provision not only injects a new 221 SCRA 515
determinative factor, i.e., the total assets of the employer, but also
provides a choice for the determinative factor: whichever is higher FACTS:
between the employer's authorized capital stock and its total assets. The Secretary issued an order fixing the allowed percentage
increases in tuition fees of private schools. This was assailed by the
An examination of the issuances of the Department of Labor, petitioner on the grounds that the Secretary didn't have any
however, reveals that said option is more apparent than real. In its authority to order such parameters. He averred that the amending
Interpretative Bulletin aforementioned, the Department uses as a laws withdrew the power from the Secretary.
basis for granting the emergency allowance the "authorized capital

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 46 -

HELD: FACTS:
The power to fix the prescribed rates for tuition fee increases of the PRC issued a resolution, therein was stated that no examinee shall
Secretary of Education should be sustained. Under the relevant attend any review class, briefing, conference or the like conducted
law, the private schools are authorized to fix at first instance the by, or shall receive any hand-out, review material, or any tip from
increase in fees. Nonetheless it should be in accordance with the any school, college or university, or any review center or the like or
rules and regulations promulgated. There is nothing in the any reviewer, lecturer, instructor official or employee of any of the
subsequent laws that withdrew this. In case of the SAC, which is aforementioned or similars institutions during the three days
said to be the one authorized to fix the rates of allowable increase, immediately proceeding every examination day including
its power is limited to the granting of government assistance to examination day. It was also mentioned that any violation shall
teachers and students. warrant a sanction in accordance with the rules. The petitioners
were reviewees preparing for the licensure examination in
REASONABLENESS accountancy. They filed with the RTC for prohibition against the
 Administrative authorities may not act arbitrarily and commission.
capriciously in the enactment of rules and regulations in
the exercise of their delegated powers and whether HELD:
required by statute or judicial decisions, their regulations to There is no law providing for the next course of action for a party
be valid must be reasonable who wants to question a ruling or order of the Professional
 They must be reasonably adapted to secure the end in view Regulation Commission. Unlike Commonwealth Act No. 83 and
and are invalid if shown to bear no reasonable relation to Presidential Decree No. 902-A, there is no provision in Presidential
the purposes for which they are authorized to be made Decree No. 223, creating the Professional Regulation Commission,
 The reasonableness of rules and regulations and that orders or resolutions of the Commission are appealable either
exemptions therein is determined by their relationship to to the Court of Appeals or to the Supreme Court. Consequently,
the statutory scheme they are designed to supplement, Civil Case No. 86-37950, which was filed in order to enjoin the
protect and enforce enforcement of a resolution of the respondent Professional
 Reasonableness under the law is different as it has a Regulation Commission alleged to be unconstitutional, should fall
technical meaning within the general jurisdiction of the Court of First Instance, now
 Reasonableness under the law is within the law or within the Regional Trial Court.
its limits
 Reasonableness is never beyond the law—interpretation What is clear from Presidential Decree No. 223 is that the
that may extend the law but never exceeds the law Professional Regulation Commission is attached to the Office of the
President for general direction and coordination.
48 LUPANGCO V. CA
160 SCRA 848 The questioned resolution was adopted for a commendable
purpose. However, its good aim cannot be a cloak to conceal its

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 47 -

constitutional infirmities. On its face, it can be readily seen that it is The three-flunk rule is intended to insulate the medical schools
unreasonable in that an examinee cannot even attend any review and ultimately the medical profession from the intrusion of those
class, briefing, conference or the like, or receive any hand-out, not qualified to be doctors. While every person is entitled to aspire
review material, or any tip from any school, college or university, or as a doctor, he doesn’t have the constitutional right to be a doctor.
any review center or the like or any reviewer, lecturer, instructor, This is true of any other calling in which the public interest is
official or employee of any of the aforementioned or similar involved; and the closer the link, the longer the bridge to one’s
institutions. The unreasonableness is more obvious in that one ambition. The State has the responsibility to harness its human
who is caught committing the prohibited acts even without any ill resources and to see to it that they are not dissipated or, no less
motives will be barred from taking future examinations conducted worse, not used at all. These resources must be applied in a
by the respondent PRC. Furthermore, it is inconceivable how the manner that will best promote the common good while also giving
Commission can manage to have a watchful eye on each and every the individual a sense of satisfaction.
examinee during the three days before the examination period.
ADMINISTRATIVE RULES WITH PENAL SANCTIONS
It is an axiom in administrative law that administrative authorities should  Administrative authorities may be empowered to enact
not act arbitrarily and capriciously in the issuance of rules and rules and regulations having the force and effect of law, but
regulations. To be valid, such rules and regulations must be reasonable any criminal or penal sanction for the violation of rules and
and fairly adapted to the end in view. If shown to bear no reasonable regulations must come from the legislature itself
relation to the purposes for which they are authorized to be issued, then  Executive Order 200 was enacted referring to publication in
they must be held to be invalid. newspapers of general circulation. But what constitutes
newspapers of general circulation?
Resolution No. 105 is not only unreasonable and arbitrary, it also  The enactments of administrative agencies must also be
infringes on the examinees' right to liberty guaranteed by the deposited in the UP Law Center. Failure to do may not
Constitution as well as the school’s academic freedom. render invalid the law but it may be questioned for efficacy.
 Previously, the publication in the Official Gazette would be
49 DECS V. DIEGO sufficient but the EO200 added the requirement of
180 SCRA 533 publication in the newspapers of general circulation

FACTS: REQUISITES FOR THE VALIDITY OF ADMINISTRATIVE


San Diego was prohibited from taking the NMAT again after failing REGULATIONS WITH PENAL SANCTIONS
the said exam thrice already. He assails the constitutionality of the 1. The law authorizing administrative authorities to issue rules
said rule. and regulations must itself declare as punishable the
violation of rules and regulations issued under its authority
HELD: 2. The law should define or fix the penalty for the violation of
rules and regulations

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 48 -

3. Publication in the official gazette should be made The word "laws" in article 2 (article 1 of the old Civil Code)
includes circulars and regulations, which prescribe penalties.
50 PESIGAN V. ANGELES Publication is necessary to apprise the public of the contents of the
129 SCRA 174 regulations and make the said penalties binding on the persons
affected thereby.
FACTS:
At issue in this case is the enforceability, before publication in the 51 PEO. V. VERIDIANO II
Official Gazette of June 14, 1982, of Presidential Executive Order 132 SCRA 523
No. 626-A dated October 25, 1980, providing for the confiscation
and forfeiture by the government of carabaos transported from one FACTS:
province to another. Go Bio was charged with violating BP22. He moved for the
quashing of the information on the ground that when he issued the
Petitioners were carabao dealers transporting carabaos. They had check, the law wasn't in effect yet. This was opposed by the
with them not only health certificates but also the permit to petitioners saying that the date material is the dishonor of the
transport as well as certifications of inspection. Despite this check, which happened after the effectivity of the law. The judge
however, while passing an inspection point, the carabaos were granted the motion to quash and hence, this case.
confiscated pursuant to an executive order. This provided "that
henceforth, no carabao, regardless of age, sex, physical condition or It was Go Bio’s contention that although Batas Pambansa Bilang 22
purpose and no carabeef shall be transported from one province to was published in the Official Gazette issue of April 9, 1979,
another. The carabaos or carabeef transported in violation of this nevertheless, the same was released only on June 14, 1979 and,
Executive Order as amended shall be subject to confiscation and considering that the questioned check was issued about the second
forfeiture by the government to be distributed ... to deserving week of May 1979, then he could not have violated Batas Pambansa
farmers through dispersal as the Director of Animal Industry may Bilang 22 because it was not yet released for circulation at the time.
see fit, in the case of carabaos"
HELD:
HELD: The dismissal of the case was upheld.
The said executive order should not be enforced against the
Pesigans on April 2, 1982 because, as already noted, it is a penal It is therefore, certain that the penal statute in question was made
regulation published more than two months later in the Official public only on June 14, 1979 and not on the printed date April 9,
Gazette dated June 14, 1982. It became effective only fifteen days 1979. Differently stated, June 14, 1979 was the date of publication
thereafter as provided in article 2 of the Civil Code and section 11 of Batas Pambansa Bilang 22. Before the public may be bound by
of the Revised Administrative Code. its contents especially its penal provisions, the law must be
published and the people officially informed of its contents and/or
its penalties. For, if a statute had not been published before its

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 49 -

violation, then in the eyes of the law there was no such law to be  The rule should be construed and applied to make it
violated and, consequently, the accused could not have committed conform to the powers conferred upon the administrative
the alleged crime. body, rather than as being an assumption of power not so
conferred
The effectivity clause of Batas Pambansa Bilang 22 specifically  A regulation cannot be construed to operate retroactively
states that "This Act shall take effect fifteen days after publication unless intention to have it to operate clearly appears
in the Official Gazette." The term "publication" in such clause  Dean Roy: administrative rules and regulations may be
should be given the ordinary accepted meaning, that is, to make regarded to be at the bottom of the totem pole. You may
known to the people in general. If the Batasang Pambansa had be guided by the rules on amendment.
intended to make the printed date of issue of the Gazette as the  The rules of procedures of administrative agencies may also
point of reference in determining the effectivity of the statute in be respected in adjudicating claims of a person
question, then it could have so stated in the special effectivity
provision of Batas Pambansa Bilang 22. 52 D. M. CONSUNJI V. COA
199 SCRA 549
When private respondent Go Bio, Jr. committed the act,
complained of in the Information as criminal, in May 1979, there FACTS:
was then no law penalizing such act. Following the special MWSS made an advertisement for public bidding with respect to a
provision of Batas Pambansa Bilang 22, it became effective only on Contract for Pump/Lift Stations and Rehabilitation: Tondo Pump
June 29, 1979. As a matter of fact, in May 1979, there was no law to Station" or "Contract No. PS-1." The project was partly financed
be violated and, consequently, respondent Go Bio, Jr. did not through a loan from the Asian Development Bank. The bidding
commit any violation thereof. was held and the contract was granted to Erectors. The contract
was finalized and was sent to the President for approval. Before the
With respect to the allegation of petitioner that the offense was approval however, Erectors backed out from the contract and was
committed on September 26, 1979 when the check was presented later substituted with petitioner. The contract was made and duly
for encashment and was dishonored by the bank, suffice it to say approved. The project was finished earlier and pursuant to this,
that the law penalizes the act of making or drawing and issuance of there was demand for an incentive bonus and also the escalation
a bouncing check and not only the fact of its dishonor. clause payment. MWSS paid the petitioner but later demanded for
reimbursement because of notice of disallowance by the
CONSTRUCTION OF ADMINISTRATIVE RULES AND Commission on Audit due to overpayment. Petitioner alleges that
REGULATIONS the reckoning date for escalation should be the date for bidding
 Rules in the exercise of a power delegated by statute should and not otherwise. It mentioned that the contract was a bid
be construed together with the statute to make contract and not a negotiated contract. A contrary stance was
 If possible, an effectual piece of legislation in harmony with adopted by the respondent.
common sense and sound reason

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 50 -

HELD:
No less than the Constitution has ordained that the COA shall have 53 PHIL. PETROLEUM V. MUN. OF PILILIA
exclusive authority to define the scope of its audit and examination, 198 SCRA 82
establish the techniques and methods required therefore, and
promulgate accounting and auditing rules and regulations, FACTS:
including those for the prevention and disallowance of irregular, Under the NIRC, manufactured oils and other fuels was subject to
unnecessary, excessive, extravagant, or unconscionable specific tax. PPC was engaged in such business and was holding
expenditures, or use of government funds and properties. Even so, operations in respondent municipality.
this auditing procedure is not of absolute discretion since it should
be done within legal constraints. The local tax code provides for the taxing power of the
municipalities, provinces, and cities. It is provided in Sections 19
Parenthetically, P.D. 1594 and its implementing rules are clear to and 19 (a) thereof, provide among others, that the municipality may
the effect that infrastructure projects are awarded in the order of impose taxes on business, except on those for which fixed taxes are
priority as follows: First, by public bidding and second by a provided on manufacturers, importers or producers of any article of
negotiated contract. However, resort to negotiated contract is only commerce of whatever kind or nature, including brewers, distillers,
after a failure of public bidding. Furthermore, the implementing rectifiers, repackers, and compounders of liquors, distilled spirits
rules are clear as to when there is a failure of public bidding after and/or wines in accordance with the schedule listed therein. This
which a negotiated contract may be availed of. Thus, if no bid is was further bolstered by the Circulars of the Secretary of Finance
acceptable in accordance with the implementing rules during the directed to all provincial, city and municipal treasurers to refrain
first bidding, the project should again be advertised for a second from collecting any local tax imposed in old or new tax ordinances
bidding and in the event the second bidding fails anew, a in the business of manufacturing, wholesaling, retailing, or dealing
negotiated contract may be under-taken. in petroleum products subject to the specific tax under the National
Internal Revenue Code and to refrain from collecting any local tax
It follows from the law and the rules that the subject Contract PS-1 imposed in tax ordinances enacted before or after the effectivity of
No. 1 was a bidded contract. The petitioner was one of the three the Local Tax Code on July 1, 1973, on the businesses of
bidders in the initial bidding of the Contract for Pump/Lift Station manufacturing, wholesaling, retailing, or dealing in, petroleum
and Rehabilitation: Tondo Pump Station. Although the petitioner products subject to the specific tax under the National Internal
was the highest bidder, it got the contract after the lowest bidder Revenue Code.
A.L. Sarmiento was disqualified and the second lowest bidder
Erectors Inc. withdrew its contract before it could be approved by The municipality enacted its own tax code through an ordinance
the President. A suggestion from the Solicitor General that there and in its relevant sections provided for the imposition of a tax on
was failure of the first public bidding when the second lowest business, except for those for which fixed taxes are provided in the
bidder withdrew its contract paving the way for an award of a Local Tax Code on manufacturers, importers, or producers of any
negotiated contract to the petitioner is without basis. article of commerce of whatever kind or nature, including brewers,

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 51 -

distillers, rectifiers, repackers, and compounders of liquors, Code as amended by P.D. No. 426." It conforms with the mandate
distilled spirits and/or wines in accordance with the schedule found of said law.
in the Local Tax Code, as well as mayor's permit, sanitary
inspection fee and storage permit fee for flammable, combustible or But P.D. No. 426 amending the Local Tax Code is deemed to have
explosive substances. repealed Provincial Circular Nos. 26-73 and 26 A-73 issued by the
Secretary of Finance when Sections 19 and 19 (a), were carried over
Thereafter, was an amendatory PD on the tax code increasing the into P.D. No. 426 and no exemptions were given to manufacturers,
amount of specific tax on lubricating oils, diesel oils, and the like. wholesalers, retailers, or dealers in petroleum products.

The NIRC was then enacted and it stated that a specific tax was Well-settled is the rule that administrative regulations must be in
imposable on the manufacture of mineral oils and motor fuels. harmony with the provisions of the law. In case of discrepancy between
the basic law and an implementing rule or regulation, the former prevails.
HELD:
The crucial issue in this case is whether or not petitioner PPC Furthermore, while Section 2 of P.D. 436 prohibits the imposition
whose oil products are subject to specific tax under the NIRC, is of local taxes on petroleum products, said decree did not amend
still liable to pay (a) tax on business and (b) storage fees, Sections 19 and 19 (a) of P.D. 231 as amended by P.D. 426, wherein
considering Provincial Circular No. 6-77; and mayor's permit and the municipality is granted the right to levy taxes on business of
sanitary inspection fee unto the respondent Municipality of Pililla, manufacturers, importers, producers of any article of commerce of
Rizal, based on Municipal Ordinance No. 1. whatever kind or nature. A tax on business is distinct from a tax on
the article itself. Thus, if the imposition of tax on business of
PC No. 26-73 and PC No. 26 A-73 suspended the effectivity of local manufacturers, etc. in petroleum products contravenes a declared
tax ordinances imposing a tax on business under Section 19 (a) of national policy, it should have been expressly stated in P.D. No.
the Local Tax Code (P.D. No. 231), with regard to manufacturers, 436.
retailers, wholesalers or dealers in petroleum products subject to
the specific tax under the National Internal Revenue Code NIRC, in Provincial Circular No. 6-77 enjoining all city and municipal
view of Section 22 (b) of the Code regarding non-imposition by treasurers to refrain from collecting the so-called storage fee on
municipalities of taxes on articles, subject to specific tax under the flammable or combustible materials imposed in the local tax
provisions of the NIRC. ordinance of their respective locality frees petitioner PPC from the
payment of storage permit fee.
There is no question that Pililla's Municipal Tax Ordinance No. 1
imposing the assailed taxes, fees and charges is valid especially The storage permit fee being imposed by Pililla's tax ordinance is a
Section 9 (A) which according to the trial court "was lifted in toto fee for the installation and keeping in storage of any flammable,
and/or is a literal reproduction of Section 19 (a) of the Local Tax combustible or explosive substances. Inasmuch as said storage
makes use of tanks owned not by the municipality of Pililla, but by

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 52 -

petitioner PPC, same is obviously not a charge for any service questions raised in this petition are questions of law. Hence, the
rendered by the municipality as what is envisioned in Section 37 of failure to exhaust administrative remedies cannot be considered
the same Code. fatal to this petition.

54 CEBU OXYGEN AND ACETYLENE CORP. V. DRILON As to the issue of the validity of Section 8 of the rules
176 SCRA 24 implementing Republic Act No. 6640, which prohibits the employer
from crediting the anniversary wage increases provided in collective
FACTS: bargaining agreements, it is a fundamental rule that implementing rules
Petitioner and its employee’s union entered into a collective cannot add or detract from the provisions of law it is designed to
bargaining agreement. One of the provisions in said agreement was implement. The provisions of Republic Act No. 6640, do not prohibit
the increase in the employee’s salaries every certain period. the crediting of CBA anniversary wage increases for purposes of
Thereafter, a law was passed amending the Labor Code with compliance with Republic Act No. 6640. The implementing rules
respect to salary increases. The minister issued rules implementing cannot provide for such a prohibition not contemplated by the law.
the same. Section 8 of the implementing rules prohibits the Administrative regulations adopted under legislative authority by a
employer from crediting anniversary wage increases negotiated particular department must be in harmony with the provisions of the law,
under a collective bargaining agreement against such wage and should be for the sole purpose of carrying into effect its general
increases mandated by Republic Act No. 6640. Petitioner provisions. The law itself cannot be expanded by such regulations. An
accordingly credited the first year increase of P200.00 under the administrative agency cannot amend an act of Congress. Thus
CBA and added the difference of P61.66 (rounded to P62.00) and petitioner's contention that the salary increases granted by it
P31.00 to the monthly salary and the 13th month pay, respectively, pursuant to the existing CBA including anniversary wage increases
of its employees from the effectivity of Republic Act No. 6640. should be considered in determining compliance with the wage
Nonetheless, upon inspection, it was found that petitioner increase mandated by Republic Act No. 6640, is correct. However,
committed underpayments of basic salaries and 13th month pays. It the amount that should only be credited to petitioner is the wage
was ordered to pay the deficiency. increase for 1987 under the CBA when the law took effect. The
wage increase for 1986 had already accrued in favor of the
HELD: employees even before the said law was enacted. Petitioner therefor
Public respondents aver that petitioner should have first appealed correctly credited its employees P62.00 for the differential of two (2)
to the Secretary of Labor before going to court. It is fundamental months increase and P31.00 each for the differential in 13th month
that in a case where only pure questions of law are raised, the pay, after deducting the P200.00 anniversary wage increase for 1987
doctrine of exhaustion of administrative remedies cannot apply under the CBA. Indeed, it is stipulated in the CBA that in case any
because issues of law cannot be resolved with finality by the wage adjustment or allowance increase decreed by law, legislation
administrative officer. Appeal to the administrative officer of orders or presidential edict in any particular year shall be higher than the
involving questions of law would be an exercise in futility since foregoing increase in that particular year, then the company
administrative officers cannot decide such issues with finality. The (petitioner) shall pay the difference.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 53 -

destroyed by fire, storm, shipwreck or other casualty, robbery, theft


REPEAL OF ADMINISTRATIVE RULES AND REGULATIONS or embezzlement during the World War 2 were deductible in the
 An administrative body doesn't as a general rule exhaust its year of actual loss or destruction of said property. As a
power to make rules and regulations by having made a consequence of this, Hilado was disallowed the deduction and was
particular regulation doesn't revoke an earlier one by demanded to pay the deficiency. To this he appealed but was
implication, if there is nothing in the second one denied.
inconsistent with the continuance of the first
 Where the commission has made an order having a dual HELD:
aspect as legislative in one respect and judicial in another, In this case, the regulation was just an interpretation rendered and
it may not in subsequent proceedings act in its quasi- it doesn't create a binding right. This is different from filing a
legislative capacity and retroactively repeal its own claim and a decision is reach which subsequently becomes final.
enactment
 This follows the rules on repeals of statutes As the regulation or interpretative opinion is concerned, it wasn't
 Express repeal is favored while otherwise for implied repeal final in adjudicating what the rights of the claimant was and thus, it
 Even if there is apparent inconsistency, no repeal will be could be legally revoked or changed by the administrative agency.
regarded to have taken place if they can still co-exist
 An administrative agency may not repeal its rules and EXTENT OF THE ACTS OF ADMINISTRATIVE AGENCY
regulations using another of its powers. Ergo, a rule in  The duly executed acts of an administrative body can have
exercise of quasi-judicial powers may not be repealed in the legal effects even beyond the lifespan of that body
exercise of quasi-legislative powers  Rules and regulations issued under a law expressly
 Note that a quasi-judicial decision is not a subject of repeal providing that they shall be in full force and effect until the
Congress of the Philippines shall otherwise provides, are
56 HILADO V. CIR good only up to the life of the law itself
100 PHIL. 288 (TAKEN WITH CO V. CA)
ADMINISTRATIVE ADJUDICATION
FACTS:
Hilado filed his income tax return wherein from other things, he DEFINITION OF QUASI-JUDICIAL POWER
deducted from his total gross income an amount pursuant to a  Power to hear and determine, or ascertain facts and decide
General Circular issued by the Collector of Internal Revenue, by the application of rules of law to the ascertained facts in
which was GC 123. This deducted amount was pursuant to a war the enforcement and administration of law
damage claim duly approved by the War Damage Commission. He  Any power of the administrative agency aside from rule-
was assessed for a deficiency in his payment of income tax later on. making but including licensing
Thereafter, the Collector issued a Circular declaring null and void
his previous circular and declared that property which were

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 54 -

 The thought process is the same as of a judge’s except that 58 TORRES V. HIBIONADA
the administrative agency has limited type of classes being 191 SCRA 268
adjudicated
FACTS:
57 LUPANGCO V. CA The petitioner as agent of private respondent Pleasantville
160 SCRA 848 Development Corporation sold a subdivision lot on installment to
private respondent. The installment payments having been
FACTS: completed, Diongon demanded the delivery of the certificate of
The PRC issued a resolution regarding the taking of handouts, title to the subject land. When neither the petitioner nor
reviewers, and attending review classes 3 days before the licensure Pleasantville complied, he filed a complaint against them for
exam. (Same case as above) specific performance and damages in the Regional Trial Court of
Negros Occidental. It was then that C.T. Torres Enterprises filed a
HELD: motion to dismiss for lack of jurisdiction, contending that the
In order to invoke the exclusive appellate jurisdiction of the Court of competent body to hear and decide the case was the Housing and
Appeals, there has to be a final order or ruling which resulted from Land Use Regulatory Board.
proceedings wherein the administrative body involved exercised its quasi-
judicial functions. In Black's Law Dictionary, quasi-judicial is HELD:
defined as a term applied to the action, discretion, etc., of public P.D. No. 1344 empowered the National Housing Authority to issue
administrative officers or bodies required to investigate facts, or writs of execution in the enforcement of its decisions under P.D.
ascertain the existence of facts, hold hearings, and draw No. 957, specified the quasi-judicial jurisdiction of the agency as
conclusions from them, as a basis for their official action, and to follows:
exercise discretion of a judicial nature. To expound thereon, quasi-
judicial adjudication would mean a determination of rights, privileges In the exercise of its functions to regulate the real estate trade and
and duties resulting in a decision or order which applies to a specific business and in addition to its powers provided for in Presidential
situation . This does not cover rules and regulations of general Decree No. 957, the National Housing Authority shall have
applicability issued by the administrative body to implement its exclusive jurisdiction to hear and decide cases of the following
purely administrative policies and functions like Resolution No. 105 nature:
which was adopted by the respondent PRC as a measure to 1. Unsound real estate business practices;
preserve the integrity of licensure examinations. 2. Claims involving refund and any other claims filed by
subdivision lot or condominium unit buyer against the
In the subject resolution, it was issued not in the PRC’s quasi- project owner developer, dealer, broker or salesman; and
judicial function but merely as an incident to its administrative 3. Cases involving specific performance of contractual and
functions. Thus, appeal was properly made to the RTC. statutory obligations filed by buyers of subdivision lots or

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 55 -

condominium units against the owner, developer, dealer, incidental only when the class is
broker or salesman. affexted

Under a subsequent law, the regulatory functions conferred on the


59 CARIÑO V. CHR
National Housing Authority were transferred to the Human
204 SCRA 483
Settlements Regulatory Commission, which was renamed Housing
and Land Use Regulatory Board.
FACTS:
The CHR issued a cease and desist order against petitioner for
It is clear that the complaint for specific performance with damages
issuing a return-to-work order to public teachers who abandoned
filed by Diongon with the Regional Trial Court of Negros
their classes to do mass concerted actions.
Occidental comes under the jurisdiction of the Housing and Land
Use Regulatory Board. Diongon is a buyer of a subdivision lot
HELD:
seeking specific performance of the seller's obligation to deliver to
The CHR doesn’t have any jurisdiction on adjudicatory powers
him the corresponding certificate of title.
over certain types of cases like alleged human rights violations
involving civil and political rights. The most that may be conceded
QUASI-JUDICIAL POWER DISTINGUISHED FROM
to the Commission in the way of adjudicative power is that it may
JUDICIAL POWER
investigate. It cannot try and decide cases as courts of justice or
Quasi-judicial power Judicial power even quasi-judicial bodies do.
Where the function of an officer Primarily to decide questions of
or body is primarily legal rights between private CONFERMENT OF QUASI-JUDICIAL POWERS
administrative and the power to parties, such decision being the  The legislature may confer on administrative bodies quasi-
hear and determine primary object and not merely judicial powers involving the exercise of judgment and
controversies is granted as an incidental to regulation on some discretion as incident to the performance of administrative
incident to the administrative other administrative function functions
duty  But in so doing, the legislature must state its intention in
express terms that would leave no doubt, as even such
QUASI-JUDICIAL COMPARED WITH QUASI-LEGISLATIVE quasi-judicial prerogatives must be limited if they are to be
POWER valid, up to those incidental or in connection with the
Quasi-judicial Quasi-legislative performance of administrative duties, which don't amount
Exercise needs the requirements No need for notices and hearing to conferment of jurisdiction over a matter exclusively
of due process—notice and when making rules vested in the courts
hearing
Binding on the parties and it is 60 MAGPALE V. CSC

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 56 -

215 SCRA 398 notice of appeal to the appellate authority within fifteen days from
filing of the notice of appeal, with its comments, if any.
FACTS:
Magpale was charged with failing to account for equipment and Under Section 47 of the same Code, the CSC shall decide on
liquidate cash advances given to him. He was charged with appeal all administrative disciplinary cases involving the imposition
dishonesty, pursuit of private business, among others. The case of:
remained unacted upon for 4 years but he was consequently found
guilty. (a) a penalty of suspension for more than thirty days; or

HELD: (b) fine in an amount exceeding thirty days salary; or


While it is true, as contended by respondent Civil Service
Commission that under Section 12 (par. 11), Chapter 3, Subtitle A, c) demotion in rank or salary or transfer; or
Book V of Executive Order 292, the CSC does have the power to
hear and decide administrative cases instituted by or brought (d) removal or dismissal from office.
before it directly or on appeal, including contested appointments,
and review decisions and actions of its offices and of the agencies The February 5, 1990 decision of the MSPB did not involve
attached to it, the exercise of the power is qualified by and should dismissal or separation from office, rather, the decision exonerated
be read together with the other sections of the same sub-title and petitioner and ordered him reinstated to his former position.
book of Executive Order 292, particularly Section 49 which Consequently, the MSPB decision was not a proper subject of
prescribes the following requisites for the exercise of the power of appeal to the CSC.
appeal, to wit:
Settled is the rule that a tribunal, board, or officer exercising judicial
(a) the decision must be appealable; functions acts without jurisdiction if no authority has been conferred by
law to hear and decide the case.
(b) the appeal must be made by the party adversely affected by the
decision; 61 ANTIPOLO REALTY V. NHA
153 SCRA 399
(c) the appeal must be made within fifteen days from receipt of the
decision, unless a petition for the reconsideration is seasonably FACTS:
filed; and Through a contract to sell, Hernando acquired prospective and
beneficial ownership over a subdivision lot. With the consent of
(d) the notice of appeal must be filed with the disciplining office, the petitioner, he transferred his rights to Yuson. However,
which shall forward the records of the case, together with the petitioner wasn't able to develop the subdivision project in
accordance with the contract to sell. It later was able construct the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 57 -

improvements in the subdivision and through a letter, informed specified period of two years from the date of the execution of the
Yuson about it and was asking for resume in payment but the latter Contract to Sell, petitioner was not entitled to exercise its options
refused to do so. After another notice with no payment from under Clause 7 of the Contract. Hence, petitioner could neither
Yuson, the contract was rescinded. Yuson filed then a complaint rescind the Contract to Sell nor treat the installment payments
with the NHA and the petitioner was ordered to reinstate the made by the private respondent as forfeited in its favor. Indeed,
contract. under the general Civil Law, in view of petitioner's breach of its
contract with private respondent, it is the latter who is vested with
HELD: the option either to rescind the contract and receive
It is by now commonplace learning that many administrative reimbursement of an installment payments (with legal interest)
agencies exercise and perform adjudicatory powers and functions, made for the purchase of the subdivision lot in question, or to
though to a limited extent only. Limited delegation of judicial or suspend payment of further purchase installments until such time
quasi-judicial authority to administrative agencies (e.g., the as the petitioner had fulfilled its obligations to the buyer. The NHA
Securities and Exchange Commission and the National Labor was therefore correct in holding that private respondent's prior
Relations Commission) is well recognized in our jurisdiction, installment payments could not be forfeited in favor of petitioner.
basically because the need for special competence and experience
has been recognized as essential in the resolution of questions of Neither did the NHA commit any abuse, let alone a grave abuse of
complex or specialized character and because of a companion discretion or act in excess of its jurisdiction when it ordered the
recognition that the dockets of our regular courts have remained reinstatement of the Contract to Sell between the parties. Such
crowded and clogged. reinstatement is no more than a logical consequence of the NHA's
correct ruling, just noted, that the petitioner was not entitled to
In general the quantum of judicial or quasi-judicial powers which an rescind the Contract to Sell. There is, in any case, no question that
administrative agency may exercise is defined in the enabling act of such under Presidential Decree No. 957, the NHA was legally
agency. In other words, the extent to which an administrative entity may empowered to determine and protect the rights of contracting
exercise such powers depends largely, if not wholly, on the provisions of parties under the law administered by it and under the respective
the statute creating or empowering such agency. In the exercise of such agreements, as well as to ensure that their obligations thereunder
powers, the agency concerned must commonly interpret and apply are faithfully performed.
contracts and determine the rights of private parties under such contracts.
One thrust of the multiplication of administrative agencies is that the 62 MILLER V. MARDO
interpretation of contracts and the determination of private rights 2 SCRA 898
thereunder is no longer a uniquely judicial function, exercisable only by
our regular courts. FACTS:
This case involves one identical question of law, namely, the
Having failed to comply with its contractual obligation to complete validity of the Reorganization Plan, prepared and submitted by the
certain specified improvements in the subdivision within the Government Survey and Reorganization Commission presumably

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 58 -

under the authority of Republic Act 997, insofar as it confers If a statute itself actually passed by the Congress must be clear in its terms
exclusive and original jurisdiction to a regional office to decide the when clothing administrative bodies with quasi-judicial functions, then
claims of laborers for wages, backwages, underpayment of wages, certainly such conferment can not be implied from a mere grant of power
overtime and separation pay, etc. to a body such as the Government Survey and Reorganization Commission
to create "functions" in connection with the reorganization of the
HELD: Executive Branch of the Government.
It is true that in Republic Act No. 1241, amending Section 4 of
Republic Act 997, which created the Government Survey and CLASSIFICATION OF ADJUDICATING POWERS
Reorganization Commission, the latter was empowered
63 SALAZAR V. ACHACOSO
(2) To abolish departments, offices, agencies, or functions which 183 SCRA 145
may not be necessary, or create those which way be necessary for
the efficient conduct of the government service, activities, and FACTS:
functions. A complaint was lodged with the POEA for alleged illegal
recruitment activities of petitioner. In connection with this,
But these "functions" which could thus be created, obviously refer Administrator Achacoso issued a closure and seizure order against
merely to administrative, not judicial functions. For the petitioner.
Government Survey and Reorganization Commission was created
to carry out the reorganization of the Executive Branch of the HELD:
National Government, which plainly did not include the creation of For the guidance of the bench and the bar, we reaffirm the
courts. And the Constitution expressly provides that "the Judicial following principles:
power shall be vested in one Supreme Court and in such inferior
courts as may be established by law. Thus, judicial power rests 1. Under Article III, Section 2, of the l987 Constitution, it is only
exclusively in the judiciary. It may be conceded that the legislature judges, and no other, who may issue warrants of arrest and search:
may confer on administrative boards or bodies quasi-judicial
powers involving the exercise of judgment and discretion, as 2. The exception is in cases of deportation of illegal and
incident to the performance of administrative functions. But in so undesirable aliens, whom the President or the Commissioner of
doing, the legislature must state its intention in express terms that Immigration may order arrested, following a final order of
would leave no doubt, as even such quasi-judicial prerogatives must deportation, for the purpose of deportation.
be limited, if they are to be valid, only to those incidental to or in
connection with the performance of jurisdiction over a matter 64 RCPI V. NTC
exclusively vested in the courts. 215 SCRA 455

FACTS:

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 59 -

The wife of private respondent sent two rush telegrams to his sister be no alternative but to reiterate the settled doctrine in
and brother-in-law through petitioner’s facilities but such didn't administrative law that:
reach the supposed to be recipients. This prompted the private
respondent to file a complaint with the NTC against RCPI for poor Too basic in administrative law to need citation of jurisprudence is
service. Accordingly, NTC ordered RCPI to answer the complaint the rule that jurisdiction and powers of administrative agencies, like
and set the case for hearing. respondent Commission, are limited to those expressly granted or
necessarily implied from those granted in the legislation creating such
HELD: body; and any order without or beyond such jurisdiction is void and
E. O. 546, it will be observed, is couched in general terms. The ineffective.
NTC stepped "into the shoes" of the Board of Communications
which exercised powers pursuant to the Public Service Act. The 65 BOISER V. CA
power to impose fines should therefore be read in the light of the 122 SCRA 945
Francisco Santiago case because subsequent legislation did not
grant additional powers to the Board of Communications. The FACTS:
Board in other words, did not possess the power to impose The petitioner has been operating a telephone system in Tagbilaran
administrative fines on public services rendering deficient service City and other municipalities in the province of Bohol. Sometime
to customers, ergo its successor cannot arrogate unto itself such later, the petitioner and private respondent Philippine Long
power, in the absence of legislation. It is true that the decision in Distance Telephone Company (PLDT) entered into a contract
RCPI vs. Board of Communications seems to have modified the denominated as "Interconnecting Agreement" whereby PLDT
Santiago ruling in that the later case held that the Board of bound itself to provide Premiere with long distance and overseas
Communications can impose fines if the public service entity facilities through the use of the PLDT relay station in Mandaue
violates or fails to comply with the terms and conditions of any City, Province of Cebu. The arrangement enabled subscribers of
certificate or any order, decision or regulation of the Commission. Premiere in Bohol to make or receive long distance and overseas
But can private respondent's complaint be similarly treated when calls to and from any part of the Philippines and other countries of
the complaint seeks redress of a grievance against the company? 8 the world. Petitioner on the other hand had the obligation to
NTC has no jurisdiction to impose a fine. preserve and maintain the facilities provided by respondent PLDT,
provide relay switching services and qualified radio operators, and
No substantial change has been brought about by Executive Order otherwise maintain the required standards in the operation of
No. 546 invoked by the Solicitor General's Office to bolster NTC's facilities under the agreement.
jurisdiction. The Executive Order is not an explicit grant of power
to impose administrative fines on public service utilities, including Later, without any prior notice to the petitioner, respondent PLDT
telegraphic agencies, which have failed to render adequate service issued a "circuit authorization order" to its co- respondents, PLDT
to consumers. Neither has it expanded the coverage of the employees Roman Juezan and Wilson Morrell to terminate the
supervisory and regulatory power of the agency. There appears to connection of PLDT's relay station with the facilities of the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 60 -

petitioner's telephone system in the province of Bohol. Petitioner


avers that this order was in gross violation of the aforecited " 66 DEIPARINE V. CA
Interconnecting Agreement." To avert serious consequences to the 221 SCRA 503
public and private hours resulting from any disruption of the
petitioner's telephone network and, of course, to the long distance FACTS:
and overseas aspects of its business, the petitioner was compelled Spouses Carungay entered into an agreement with Deiparine to
to seek judicial relief. construct a three-story dormitory. On a report of the civil engineer,
Deiparine was deviating from the specifications and plans, thus
HELD: impairing the strength and safety of the building. The spouses sent
The case before the trial court is for injunction arising from breach a memorandum to petitioner, complaining that the building was
of contract. Premiere asks for compliance with the terms of the being done haphazardly and they suggested core testing.
contract and for the payment of P100,000.00 exemplary and moral Consequently, it was found out that the building was structurally
damages in addition to attorney's fees. defective. This prompted the spouses to file an action for
rescission and damages.
PLDT has cited in full the authority and powers given to the Board
of Communications, now National Telecommunications HELD:
Commission. There is nothing in the Commission's powers which PD 176 created the Construction Industry Authority of the
authorizes it to adjudicate breach of contract cases, much less to Philippines as the umbrella organization which shall exercise
award moral and exemplary damages. The two authorities cited by jurisdiction and supervision over certain administrative bodies
the private respondents in the bid to dissolve the CFI restraining acting as its implementing branches. The body in this case is the
order do not appear adequate to disregard the thirty (30) day prior Philippine Domestic Construction Board and not the Philippine
notice provided by the Interconnecting Agreement. But even if they Construction Development Board.
were, this question is one which should be clarified in the civil case
for breach of contract. However, the wording of the law is clear that the jurisdiction of the
Philippine Domestic Construction Board are meant to apply only to
Clearly, therefore, what the petitioner is questioning is an order public construction contracts. It power over private construction
which does not merely involve "a purely internal transaction of a contracts is limited to the formulation and recommendation of
telecommunications company" but one which would necessary rules and procedure for the adjudication and settlement of disputes
affect rights guaranteed it by the contract allegedly violated. involving such private contracts.

The Board of Communications has been renamed National SOURCES OF JURISDICTION


Telecommunications Commission. The NTC has no jurisdiction,
and the PLDT has made no showing of any, not even by necessary ESTOPPEL
implication, to decide an issue involving breach of contract.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 61 -

67 TIJAM V. SIBONGHANOY plaintiffs, filed a second motion for execution of counter-bond,


23 SCRA 29 such motion was eventually granted and the corresponding writ
was issued.
FACTS:
On July 19, 1948—barely one month after the effectivity of Subsequently, the Surety appealed to the Court of Appeals raising
Republic Act 296 known as the Judiciary Act of 1948, Section 88 of the following assignment of errors and not one of the assignment of
which placed within the original exclusive jurisdiction of inferior errors raises the question of lack of jurisdiction, neither directly
courts all civil actions where the value of the subject-matter or the nor indirectly. Although the appellees failed to file their brief, the
amount of demand does not exceed P2,000.00, exclusive of interest Court of Appeals, decided the case affirming the orders appealed
and cost—the Spouses Serafin Tijam and Felicitas Tagalog from. The Surety filed a Motion for Reconsideration and thereafter
commenced Civil Case No. R-660 in the Court of First Instance of filed a pleading entitled MOTION TO DISMISS, alleging
Cebu against Spouses Magdaleno Sibonghanoy and Lucia Baguio substantially the appellees action was filed in the Court of First
to recover from them the sum of P1,908.00 with legal interest plus Instance of Cebu on July 19, 1948 for the recovery of the sum of
costs. As prayed for in the complaint, a writ of attachment was P1,908.00 only; that a month before that said date, Republic Act
issued by the court against defendants’ properties, but the same 292, has already become effective, section 88 of which placed
was soon dissolved upon the filing of a counter-bond by defendants within the original exclusive jurisdiction of inferior courts all civil
and the Manila Surety and Fidelity Co., Inc., hereinafter referred to actions where the value of the subject matter or the amount of the
as the Surety. demand does not exceed P2,000.00; that the Court of First Instance
had no jurisdiction to try and decide the case. The Court of
After trial upon the issues, the Court rendered judgment in favor of Appeals resolved to set aside its decision and certified the case to
the plaintiffs and, after the same had become final and executory, the Supreme Court.
upon motion of the latter, the court issued a writ of execution
against the defendants. The writ having been returned unsatisfied, HELD:
the plaintiffs moved for the issuance of a writ of execution against It is undisputed fact that the action commenced by appellees in the
the Surety’s bond, against which the Surety filed a written Court of First Instance of Cebu against the Sibonghanoy was for
opposition upon two grounds, namely (1) Failure to prosecute, recovery of sum of P1,908.00 only – an amount within the original
and (2) Absence of a demand upon the Surety for the payment of exclusive jurisdiction of the inferior courts. True also is the rule
the amount due under the judgment. The Surety prayed the Court that jurisdiction over the subject matter is conferred upon the court
not only to deny the motion for execution against its counter-bond exclusively by law, and as the lack of it affects the very authority of
but also to relieve the company of its liability, under the bond in the court to take cognizance of the case, the objection may be
question. The Court denied this motion on the ground solely that raised at any stage of the proceedings. However, considering the
no previous demand had been made on the Surety for the facts and circumstances of the present case, the Supreme Court is
satisfaction of the judgment. After the necessary demand was made, of the opinion that the Surety is now barred by laches from
and upon failure of the Surety to satisfy the judgment, the invoking this plea at this late hour for the purpose of annulling

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 62 -

everything done in the case with its active participation. As already HELD:
stated, the action was commenced almost fifteen years before the The decision of the collerctor was appealed in due time and the
Surety filed its motion to dismiss raising the question of lack of case reached the office of the Commissioner of Customs also in due
jurisdiction for the first time. time while RA 650 was still in force. The commissioner acquired
jurisdiction over the case and he was duty bound to act thereon.
Laches, in a general sense, is failure or neglect, for an unreasonable Petitioner contends that at the expiration of the law, the
and unexplained length of time , to do that which, by exercising commissioner loss his jurisdiction. This is untenable because it is a
due diligence , could or should have been done earlier; it is settled rule that a court, be it judicial or administrative, that has
negligence or omision to assert a right within a reasonable time, acquired jurisdiction over a case, retains it after the expiration of
warranting a presumption that the party entitled to assert it either the law governing the case. Herein, once the Commissioner has
has abandoned it or declined to assert it. acquired jurisdiction over the case, the mere expiration of the law
doesn't divest him of his jurisdiction thereon duly acquired while
The doctrine of laches or of stale demands is based upon grounds the law was still in force. He retained jurisdiction and should
of public policy which requires, for the peace of society, the continue to take cognizance of the case until final determination
discouragement of stale claims, and unlike the statue of limitations, thereof.
is not a mere question of time but is principally a question of
inequity or unfairness of permitting a right or claim to be enforced DUE PROCESS
or asserted. It has been held that a party can not invoke the 69 RIVERA V. CSC
jurisdiction of the court to secure affirmative relief against his 240 SCRA 43
opponent and, after obtaining or failing to obtain such relief,
repudiate or question the same jurisdiction. FACTS:
Rivera was the manager of the corporate banking unit of Landbank.
EFFECT OF EXPIRATION OF LAW He was charged with many things—dishonesty among others. He
68 ROXAS V. SAYOC was alleged to acting as fixer and financial consultant to some of the
100 PHIL. 448 clients of the bank. Upon the complaint, he was placed under
preventive suspension. He was found guilty for grave misconduct,
FACTS: acting prejudicial to the interest of the service, and violations of the
Roxas was issued an import control license to import cotton Anti-Graft and Corrupt Practices act. Upon appeal to the MPSB,
counterpanes. With this, she imported from Japan bales of cotton he was exonerated for the rest and was only found guilty for acting
counterpanes. However, the license was issued in violation of the prejudicial to the interest of the service.
Import Control Law. She tried to recover the cotton counterpanes
but the Collector of Customs decided to forfeit said merchandise Rivera filed a motion for reconsideration of the Court's dismissal of
for being imported in violation of the law. the petition, now strongly asserting that he was denied due process
when Hon. Thelma P. Gaminde, who earlier participated in her

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 63 -

capacity as the Board Chairman of the MSPB when the latter had ruled that the doctrine that employees of government-owned
taken action on LBP's motion for reconsideration, also took part, and/or con controlled corporations, whether created by special law
this time as a CSC Commissioner, in the resolution of petitioner's or formed as subsidiaries under the General Corporation law are
motion for reconsideration with the CSC. The Court, in its governed by the Civil Service Law and not by the Labor Code, has
resolution of 05 July 1994, resolved to grant the motion, to reinstate been supplanted by the present Constitution. "Thus, under the
the petition and to require respondents to comment thereon. present state of the law, the test in determining whether a
government-owned or controlled corporation is subject to the Civil
HELD: Service Law are the manner of its creation, such that government
In order that the review of the decision of a subordinate officer corporations created by special charter are subject to its provisions
might not turn out to be a farce, then reviewing officer must while those incorporated under the General Corporation Law are
perforce be other than the officer whose decision is under review; not within its coverage."
otherwise, there could be no different view or there would be no
real review of the case. The decision of the reviewing officer would Specifically, the PNOC-EDC having been incorporated under the
be a biased view; inevitably, it would be the same view since being General Corporation Law was held to be a government owned or
human, he would not admit that he was mistaken in his first view of controlled corporation whose employees are subject to the
the case. provisions of the Labor Code.

70 PNOC V. NLRC The fact that the case arose at the time when the 1973 Constitution
201 SCRA 487 was still in effect, does not deprive the NLRC of jurisdiction on the
premise that it is the 1987 Constitution that governs because it is
FACTS: the Constitution in place at the time of the decision.
Private respondent Danilo Mercado was first employed by herein
petitioner Philippine National Oil Company-Energy Development On the issue of due process, indisputably, the requirements of due
Corporation (PNOC-EDC for brevity) on August 13, 1979. He held process are satisfied when the parties are given an opportunity to
various positions ranging from clerk, general clerk to shipping clerk submit position papers. What the fundamental law abhors is not
during his employment at its Cebu office until his transfer to its the absence of previous notice but rather the absolute lack of
establishment at Palimpinon, Dumaguete, Oriental Negros. opportunity to ventilate a party's side. There is no denial of due
process where the party submitted its position paper and flied its
The grounds for the dismissal of Mercado are allegedly serious acts motion for reconsideration. Petitioner's subsequent Motion for
of dishonesty. Reconsideration and/or Appeal has the effect of curing whatever
irregularity might have been committed in the proceedings below.
HELD: Furthermore, it has been consistently held that findings of
This issue has already been laid to rest in a previous case of administrative agencies which have acquired expertise because
involving the same petitioner and the same issue, where this Court their jurisdiction is confined to specific matters are accorded not

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 64 -

only respect but even finality. Judicial review by this Court does counsel except in writing and in the presence of counsel and
not go so far as to evaluate the sufficiency of the evidence but is during the trial of the accused, who has the right "to be heard by
limited to issues of jurisdiction or grave abuse of discretion. A himself and counsel, either retained by him or provided for him by
careful study of the records shows no substantive reason to depart the government at its expense. These guarantees are embodied in
from these established principles. the Constitution, along with the other rights of the person facing
criminal prosecution, because of the odds he must contend with to
71 NERA V. AUDITOR-GENERAL defend his liberty (and before even his life) against the awesome
164 SCRA 1 authority of the State.

FACTS: In other proceedings, however, the need for the assistance of


The petitioner was retired on January 4, 1951, with the rank of counsel is not as urgent nor is it deemed essential to their validity.
lieutenant colonel in the Armed Forces of the Philippines. He There is nothing in the Constitution that says a party in a non-
applied for retirement gratuity under R.A. No. 340, otherwise criminal proceeding is entitled to be represented by counsel and
known as the Armed Forces Retirement Act, but in the that without such representation he will not be bound by such
computation of the total amount due him, he was not credited with proceedings. The assistance of lawyers, while desirable, is not
the sums of P 12,324.41 and P 983.01 which he claimed represented indispensable. The legal profession was not engrafted in the due
his longevity pay under a later enacted law. His claims were denied process clause such that without the participation of its members
on the ground that the law cannot be applied retroactively to him. the safeguard is deemed ignored or violated. The ordinary citizen is
not that helpless that he cannot validly act at all except only with a
HELD: lawyer at his side.
Under the petitioner's theory, even the rulings he sought to have
reconsidered would have to be disregarded because they were In the case at bar, the petitioner acted for and by himself quite
rendered when he was acting on his own and therefore, as he ably, arguing knowledgeably on what he considered the applicable
contends, acting invalidly. In effect, following this logic, all laws to justify his claim.
proceedings where a person is not represented by counsel are null
and void ab initio for violation of due process because he could not 72 DIZON V. PSC
legally act by himself alone. Yet, magically, they become valid and 50 SCRA 500
may be reconsidered the moment and provided such person retains
the services of a lawyer and starts acting through such counsel. FACTS:

The right to the assistance of counsel is not indispensable to due HELD:


process unless required by the Constitution or a law. Exception is
made in the charter only during the custodial investigation of a 73 DORMITORIO V. FERNANDEZ
person suspected of a crime, who may not waive his right to 72 SCRA 388

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 65 -

one of the witnesses presented by the company was their counsel.


FACTS: Defense lawyer has failed three times to cross-examine the witness
In a case involving petitioner as plaintiff and Lazatina as defendant, however. Alas, the lawyer-witness succumbed to a heart attack.
judgment was rendered in favor of the former but execution wasn't The defense then moved that his testimony be stricken out for
pursued in furtherance of an agreement between the parties that failure to rebut. This was subsequently granted by the court.
Lazatina should be reimbursed for incurred expenses in
transferring her house to another lot. The court rendering HELD:
judgment was then misled by the petitioners by averring The right of a party to confront and cross-examine opposing
fraudulently that the judgment was still in place and execution of witnesses in a judicial litigation, be it criminal or civil in nature, or
the judgment was proper. However, after knowledge that there was in proceedings before administrative tribunals with quasi-judicial
a compromise agreement between the parties, the court took no powers, is a fundamental right which is part of due process.
delay in setting aside the issued writ of execution and thereafter, However, the right is a personal one which may be waived expressly
stayed the compromise agreement. or impliedly by conduct amounting to a renunciation of the right of
cross-examination. Thus, where a Party has had the opportunity to
HELD: cross-examine a witness but failed to avail himself of it, he
There is no merit to the point raised by petitioners that they were necessarily forfeits the rights to cross-examine and the testimony
not informed by respondent Judge of the petition by private given on direct examination of the witness will be received or
respondent to set aside the writ of execution. The order granting allowed to remain in the record.
such petition was the subject of a motion for reconsideration. 16
The motion for reconsideration was thereafter denied. 17 Under The conduct of a party which may be construed as an implied
the circumstances, the failure to give notice to petitioners had been waiver of the right to cross-examine may take various forms. But the
cured. That is a well-settled doctrine. 18 Their complaint was that common basic principle underlying the application of the rule on
they were not heard. They were given the opportunity to file a implied waiver is that the party was given the opportunity to
motion for reconsideration. So they did. That was to free the order confront and cross-examine an opposing witness but failed to take
from the alleged infirmity. Petitioners then cannot be heard to advantage of it for reasons attributable to himself alone.
claim that they were denied procedural due process.
Private respondents through their counsel, Atty. Amante, were
74 SAVORY V. LAKAS NG MANGGAGAWA given not only one but five opportunities to cross-examine the
62 SCRA 258 witness, Atty. Morabe, but despite the warning and admonitions of
respondent court for Atty. Amante to conduct the cross-
FACTS: examination or else it will be deemed waived and despite the
Savory filed an action for unfair labor practice against Lakas readiness, willingness, and insistence or the witness that he be
Pilipino. It averred that latter has committed strikes and mass cross-examined, said counsel by his repeated absence and/or
action, in contravention of the collective bargaining agreement. unpreparedness failed to do so until death sealed the witness's lips

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 66 -

forever. By such repeated absence and lack of preparation on the  While the power to decide resides solely in the
part of the counsel of private respondents, the latter lost their right administrative agency, this doesn't preclude a delegation of
to examine the witness, Atty. Morabe, and they alone must stiffer power to hold a hearing
the consequences. The mere fact that the witness died after giving  The rule that requires an administrative officer to exercise
his testimony is no ground in itself for excluding his from the his own judgment and discretion doesn't preclude him
record so long as the adverse party was afforded an adequate from utilizing as a matter of practical administrative
opportunity for cross-examination but through fault of his own procedure, the aid of subordinates to investigate and report
failed to cross-examine the witness. to him the facts on the basis of which the officer makes his
decisions.
DUE PROCESS IN QUASI-CRIMINAL PROCEEDINGS  It is sufficient that the judgment and discretion finally
exercised are those of the officer authorized by law
75 ASPREC V. ITCHON
16 SCRA 921 76 AMERICAN CYANAMID V. DIR. OF PATENT
76 SCRA 568
FACTS:
Petitioner claims among others that he was denied his day in court FACTS:
by the board of examiners for surveyors which found him guilty as Petitioner filed a complaint with the Philippine Patent Office to
charged for unprofessional conduct and ordered the revocation of cancel the certificate of registration of Tiu Chian’s Sulmetine on
his certificate of resignation as a private land surveyor. From the the ground that it is confusingly similar to its own trademark
records it appears that the board proceeded in petitioner’s and his Sulmet on a veterinary product used for the same purpose, a
counsel’s absence as he and counsel didn't appear at the last and trademark it has long been using both in the US and the
stipulated date of hearing without cause or reason, without any Philippines. The Director denied the petition. Petitioner appealed
excuse at all. This, is in spite of the fact that petitioner had notice from the said decision and among others, assigned as error the
of trial. Will the petitioner be sustained? delegation made by the Director of the authority to hear and
receive the evidence in the said case to a hearing officer.
HELD:
Presence of a party is not always of the essence of due process. All HELD:
that the law requires to satisfy adherence to the constitutional The director has the authority to designate a ranking official of the
precepts is that the parties are given notice of the trial. The patent’s office to hear inter partes proceedings in the registration of
petitioner cannot charge now that he received less than a fair trademarks and tradenames.
treatment. He has forfeited his right to be heard.
It is well settled that while the power to decide resides solely in the
DELEGATION OF AUTHORITY TO HEAR AND RECEIVE administrative agency vested by law, this doesn't preclude a
EVIDENCE

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 67 -

delegation of the power to hold a hearing on the bsiss of which the HELD:
decision of the administrative agency will be made. The petitioner essentially questions the authority of Mr. Ruiz to
decide. It was Mr. Ruiz who was assigned the case of PED No. 88-
This rule that requires an administrative officer to exercise his own 0418 for investigation and prosecution. Accordingly, Mr. Ruiz filed
judgment and discretion doesn't preclude him from utilizing as a a petition (SEC No. 3601) before the Securities Investigation and
matter of practical administrative procedure the aid of subordinates Clearance Department (SICD) of the SEC. It is argued that Mr.
to investigate and report to him the facts, on the basis of which the Ruiz acted as prosecutor and judge over the case, hence, he issued
officer makes his decision. It is sufficient that the judgment and the resolution without authority and with grave abuse of discretion.
discretion finally exercised are those of the officer authorized by He allegedly went beyond the duties required of a member of the
law. PED which are limited to investigation and prosecution of civil and
criminal cases as well as other actions involving violation of laws,
77 SKYWORLD V. SEC rules and regulations enforced by the SEC. The petitioner adds
211 SCRA 565 that the presentation for approval of the resolution of Mr. Ruiz to
the Commission, en banc was irregular, null and void for being
FACTS: done without the knowledge of the petitioner. Thus, the petitioner
Inter Realty obtained a loan from the CBC as security for which it was allegedly deprived of the benefit of an appeal from the
mortgaged three (3) parcels of land and the improvements thereon. resolution to the Commission, en banc.
Inter-Realty eventually failed to pay its debt and thus, the condo
project was foreclosed and CBC was the highest bidder for the The contentions are without merit. Pres. Decree No. 902-A vests on
project. A compromise agreement was then forged between the the Commission the original and exclusive jurisdiction to hear and
two and the redemption period was extended. Meanwhile, Inter- decide cases involving, among others, disputes between the
Realty made a written authorization in favor of Bautista to buy or corporation and the state regarding its legal right to exist, and the
sell the condominium units to buyers. CBC was notified by power to hear and decide on the suspension or revocation of a
petitioner SCOAI through Angel Bautista, who was the latter's certificate of registration of a corporation.
president, of the organization and official incorporation of the
SCOAI. Ultimately, there was failure to redeem the foreclosed The Commission can validly delegate the authority to exercise the
properties. As the new owner and with the aim of recovering the specific powers assigned to it by law. In the consolidated cases,
unpaid debt, it authorized Bautista to sell the unsold condo units the Commission empowered the PED to conduct the hearing and
but this was revoked later on for discovering the latter’s violation of to decide on the revocation of a certificate of registration. The task
his fiduciary obligations as an agent. Two petitions were filed was assigned to Mr. Ruiz for and in behalf of the Commission.
against the petitioner SCOAI, one of them contesting the existence
of the petitioner as an entity, and the other, for a writ of It is true that Mr. Ruiz signed a petition with the BSCC as a relator
preliminary injunction praying that the petitioner be stopped from prior to the consolidation of the two cases. However, that petition
exercising the prerogatives of a condominium corporation was apparently disregarded. Mr. Ruiz was validly authorized to

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 68 -

handle the two cases simultaneously filed by the private parties 78 SUNTAY V. PEOPLE
themselves against each other. It must be recalled that in PED No. 101 PHIL. 833
88-0418, BSCC pursued its case by itself and not as a mere relator
suing through the help of the PED. A private entity is not FACTS:
prohibited from prosecuting its action for revocation of registration The first charge of seduction filed against the accused was made by
by itself. Otherwise, the petition of SCOAI against the BSCC also the victim’s father but this was dismissed for lack of merit. Another
seeking the revocation of the latter's registration would not have charge was filed but this time by the victim herself. The NBI and
been taken cognizance of by the SEC on the ground that the case the Department of Foreign Affairs were notified to take proper
should have been prosecuted by the Commission upon the relation steps to bring back the accused so that he can be dealt with in
of SCOAI. accordance with law. His passport was then cancelled without
notice and hearing.
In judging the merits of the case at the instance of the Commission,
Mr. Ruiz acted only as a trier of the facts presented to him and not HELD:
as a prosecutor at the same time. The resolution arrived at was True, the discretion granted, to the Secretary for Foreign Affairs to
adopted by the Commission, en banc as its own decision, upon its withdraw or cancel a passport already issued may not be exercised
approval. at whim. But here the petitioner was hailed to Court to answer a
criminal charge for seduction and although at first all Assistant City
ADMINISTRATIVE DETERMINATIONS WITHOUT NOTICE Attorney recommended the dismissal of the complaint previously
AND HEARING subscribed and sworn to by the father of the offended girl, yet the
 Notice and hearing are only necessary in order to comply petitioner knew that no final action had been taken by the City
with due process of law only when some constitutional Attorney of Quezon City as the case was still under study. And as
right is claimed to be invaded the Solicitor General puts it, "His suddenly leaving the country in
 Where the purpose of the administrative agency is to such a convenient time, can reasonably be interpreted to mean as a
decide whether a right or privilege which an applicant deliberate attempt on his part to flee from justice, and, therefore,
doesn't possess shall be granted to him or withheld, or he cannot now be heard to complain if the strong arm of the law
where the power exercised is either legislative or executive, should join together to bring him back to justice." In issuing the
notice and hearing is not necessary in the absence of an order in question, the respondent Secretary was convinced that a
express or implied statutory provision therefor, and a miscarriage of justice would result by his inaction and as he issued
statute may provide for such determination without it in the exercise of his sound discretion, he cannot be enjoined
requiring notice and hearing from carrying it out.
 Even though the power exercised is quasi-judicial, notice
and hearing may not be essential to due process of law if no Counsel for the petitioner insists that his client should have been
personal or property rights are involved granted a "quasi-judicial hearing" by the respondent Secretary
before withdrawing or cancelling the passport issued to him.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 69 -

Hearing would have been proper and necessary if the reason for the As to the first issue, we agree with the CSC that petitioner was
withdrawal or cancellation of the passport were not clear but afforded due process and opportunity to be heard.
doubtful. But where the holder of a passport is facing a criminal a
charge in our courts and left the country to evade criminal Petitioner insists that he was never furnished a copy of the letter-
prosecution, the Secretary for Foreign Affairs, in the exercise of his complaint of March 10, 1989, which directed him to answer the
discretion to revoke a passport already issued, cannot be held to charges contained therein within 72 hours from receipt thereof.
have acted whimsically or capriciously in withdrawing and
The CSC believed otherwise, relying on the evidence on record
cancelling such passport. Due process does not necessarily mean or
showing that the letter-complaint was sent by registered mail to
require a hearing. When discretion is exercised by an officer vested
petitioner's address at the Office of the Municipal Treasurer of
with it upon an undisputed fact, such as the filing of a serious
Tarlac as shown by the Tarlac Post Office Registry Receipt No. 5151
criminal charge against the passport holder, hearing maybe
and was received by someone in that office on March 17, 1989 as
dispensed with by such officer as a prerequisite to the cancellation
shown by the registry return card. It is a common practice that
of his passport; lack of such hearing does not violate the due
letters addressed to an official or employee in a government office
process of law clause of the Constitution; and the exercise of the
are received by an employee assigned to handle mail matters.
discretion vested in him cannot be deemed whimsical and
capricious of because of the absence of such hearing. If hearing In his motion for reconsideration, petitioner did not question the
should always be held in order to comply with the due process of failure of respondent Mayor to serve him the letter-complaint.
clause of the Constitution, then a writ of preliminary injunction Instead, he claimed that while the letter-complaint directed him "to
issued ex parte would be violative of the said clause. answer the adverse allegations contained therein," it did not
apprise him of his right to counsel and therefore was
RULES OF PROCEDURE constitutionally defective. Another telling point in his motion for
79 MENDOZA V. CSC reconsideration is his admission therein that he may be deemed to
233 SCRA 657 have waived his right to answer the complaint.

FACTS: 80 MANGUBAT V. DE CASTRO


Petitioner, was a Senior Revenue Inspector serving under a 163 SCRA 608
permanent appointment in the Office of the Treasurer of Tarlac,
Tarlac. On a relevant date, the city mayor sent him a notice asking FACTS:
for explanation regarding his falsification of real estate tax receipts The mayor filed with the provincial board a complaint against the
and for unlawful collection of taxes. Failing to render an answer, petitioner for misconduct and dishonesty. The board conducted its
he was dismissed from his position. investigation and accordingly submitted the case for decision. No
memorandum was ever submitted by the petitioner even though he
HELD: was required to do so. Before the decision, the charter of the city

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 70 -

came into being. It was the legal opinion of the fiscal that he their causes. But as earlier stated, the findings of the Fiscal that
should take cognizance of the case and thus records were there was no prima facie case were not finalized with the requested
transmitted to him. Again, investigation was done and he later brief statement of materials and relevant facts on which a
recommended the dismissal of the complaint. Somewhere down conclusion could be based. Without the requested resolution, the
the line, the case was remanded to the board of investigators who City Mayor was unable to issue the corresponding administrative
did not conduct additional evidence gathering or the like. The order. Verily, the respondent Commission can not be bound by the
board found the petitioner guilty. findings of the City Fiscal, much less was it prohibited from making
findings of its own on the basis of the records which both the
HELD: Commission and the Board of Investigators considered sufficient
Petitioner contends that the absorption or taking over by the Police for purposes of rendering a decision. Neither was the Board's
Commissioner of pending cases should take place only after the discretion not to conduct a new investigation foreclosed by such
publication of the Manual as explicitly and clearly provided by findings.
Section 26 of the Police Act of 1966.
Furthermore, apart from the fact that the uniform requirements of
Petitioner insists that the action of the Police Commission was due process were all complied with under Republic Act No. 557,
highly irregular when it took over the case and thereafter made its Republic Act No. 3857 (the Revised Charter of Cebu City) and
own findings, contrary to the findings of the City Fiscal acquitting Republic Act No. 4864 by the investigating officials, there is
petitioner of the charges, apart from the fact that its decision was nothing in the records indicative of any act on the part of subject
based on the records which were forwarded by the Board of administrative bodies amounting to a deprivation of petitioner's
Investigators without the latter making its own investigation, and its right to administrative process.
own findings and recommendation.
At this juncture, the oft-repeated rule that findings of
This argument misconceives the meaning of due process. The administrative agencies are generally accorded not only respect but
proceeding provided for is merely administrative and summary in also finality where the decision and the order of execution issued
character, in line with the principle that "administrative rules of by public respondents are not tainted with unfairness or
procedure should be construed liberally in order to promote their arbitrariness that would amount to abuse of discretion or lack of
object and to assist the parties in obtaining just, speedy and jurisdiction deserves reiteration. The findings of fact must be
inexpensive determination of their respective claims and defenses." respected, so long as they are supported by substantial evidence
Otherwise stated, where due process is present, the administrative even if not overwhelming or preponderant.
decision is generally sustained.
Indeed, if the Police Commission were to accede to the suggestion
The records show that the case at bar was exhaustively heard both of petitioner that the Board of Investigators be directed to conduct
in the Municipal Board and in the Fiscal's Office, with both parties its own investigation and give the parties a chance to present their
afforded ample opportunity to adduce their evidence and argue evidence and not merely rely on the result of the investigation

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 71 -

conducted by the Municipal Board and by the City Fiscal's Office,


this would be favoring technicalities over substantial justice. The Labor Arbiter held that they are not entitled to the
reimbursement of cash bond and were not entitled to the holiday
Clearly, petitioner was given his "day in court" and there is no pay except for the five complainants.
occasion to impute deprivation of due process. On the contrary, the
rendition of the questioned decision by the Police Commission HELD:
actually promoted and served the interests of justice. As the Court sees it, the wage orders do not apply to the direct
employees of PTS who in fact are members of the Government
In addition, there is no denial of due process if the decision was
Service Insurance System. The complainants in G.R. No. 82868
rendered on the evidence presented at the hearing, or at least
unquestionably belong to the private sector and for this reason are
contained in the record and disclosed to the parties affected.
covered by the Social Security System. They are the indirect
employees of the PTS and as such are entitled to hold it liable,
EVIDENCE IN ADMINISTRATIVE PROCEEDINGS
solidarity with their direct employer, for their unpaid wage
81 RABAGO V. NLRC
differentials. In this sense, the PTS is correctly classified as an
200 SCRA 158 employer coming under the private sector. The reference to it as
belonging to the public sector relates only to its direct employees
FACTS: "for purposes of coverage under the Employees' Compensation
Ace Building Care and the Philippine Tuberculosis Society entered Commission," not to its indirect employees coming from the private
into a contract under which the former would provide the latter sector.
with janitorial and allied services for a stipulated consideration,
subject to such adjustment as might be subsequently required by The issues regarding the separation pay and the service incentive
law. The contract was renewed yearly until 1985, when the services leave pay are factual. It is often enough said that the findings of fact
were placed under public bidding and a new contract was awarded of quasi-judicial agencies which have acquired expertise on the
to another company, which then took over from ABC. specific matters entrusted to their jurisdiction are accorded by this
Court not only respect but even finality if they are supported by
On a relevant date, 41 janitors ABC had earlier detailed to PTS substantial evidence.
filed a complaint with the National Labor Relations Commission
against both ABC and PTS for unpaid wage differentials under We are satisfied that the complainants were able to establish by
Wage Order Nos. 5 and 6, holiday premium pay, damages and Exhibit "B" their length of service to entitle them to service
attorney's fees, reimbursement of cash bond, incentive leave pay incentive leave with pay. The argument that the affidavit is hearsay
and bonus and separation pay. ABC filed a cross-claim against PTS, because the affiants were not presented for cross-examination is
contending that the latter was liable for the statutory increases, not persuasive because the rules of evidence are not strictly
while PTS moved to dismiss on the ground that it belonged to the observed in proceedings before administrative bodies like the
public sector and was not covered by the Labor Code. NLRC, where decisions may be reached on the basis of position

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 72 -

papers only. It is also worth noting that ABC has not presented any their differential pay under Wage Orders Nos. 5 and 6, PTS being
evidence of its own to disprove the complainant's claim. As the considered in the circumstances of this case to be the indirect
Solicitor General correctly points out, it would have been so easy to employer of workers in the private sector. ABC is liable for the
submit the complainants' employment records, which were in the payment of the separation pay and incentive leave pay of the
custody of ABC, to show that they had served for less than one complainants mentioned in the challenged decisions, with the
year. modification only that Norma Moreno Mangabat shall also be
entitled to service incentive leave with pay:
A slight modification must be made, though, in the case of Norma
Moreno Mangabat, who was denied the service incentive leave with In view of the above findings, it is no longer necessary to resolve
pay, possibly through an oversight. Exhibit "B" shows that her the motion of the complainants that the supersedeas bond fixed by
employment was from "7/79 to 12/81 and 3/84 to 7/84." Section 3 of the Court for the issuance of the temporary restraining order on
Rule V, Book III of the Omnibus Rules Implementing the Labor May 11, 1988, be increased to P500,000.00.
Code, provides that the term "at least one year service" shall mean
service within 12 months, whether continuous or broken, reckoned 82 MACEDA V. ERB
from the date the employee started working. 199 SCRA 454

The submission that the five complainants awarded separation pay FACTS:
were not entitled thereto because their terms expired it with the Due to the Persian war conflict, the oil companies have filed their
contract with PTS is also not acceptable. ABC never offered any respective applications for oil price increase. The ERB granted
evidence that the employment of the claimants was co-terminal provisional increases. Maceda assailed this preliminarily on the
with the janitorial contract. We agree that the termination of ABC's ground that no hearing was held in granting provisional increases.
contract with PTS resulted in a partial closure or cessation of Hearing was conducted and during the proceedings, the ERB
operations of ABC that called for the application (if only by ordered that testimonies shall be in affidavit-form, among other
analogy) of Article 283 of the Labor Code providing in part as changes in the trial proper. This was assailed once again on the
follows: allegation of denial of due process by not being able to finish cross-
examination.
... In case of retrenchment to prevent losses and in cases of closures
or cessation of operations of establishment or undertaking not due
HELD:
to serious business losses or financial reverses, the separation pay
The Solicitor General has pointed out that aside from the increase
shall be equivalent to one (1) month pay or at least one-half (1/2)
in crude oil prices, all the applications of the respondent oil
month pay for every year of service, whichever is higher. A fraction
companies filed with the ERB covered claims from the OPSF.
of at least six (6) months shall be considered one (1) whole year.

Our conclusion is that Ace Building Care and the Philippine We shall thus respect the ERB's Order of December 5, 1990
Tuberculosis Society are solidarily liable to the complainants for granting a provisional price increase on petroleum products

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 73 -

premised on the oil companies' OPSF claims, crude cost peso The following day, prior to the payment of the ABH withdrawal,
differentials, forex risk for a subsidy on sale to NPC, since the oil Veloso presented another undated withdrawal slip for P60,000.00.
companies are "entitled to as much relief as the fact alleged This was the third P60,000.00 withdrawal. The withdrawal slip was
constituting the course of action may warrant." Nonetheless, it is received by Dorado, who handed it to Dadubo. At that time, Cidro
relevant to point out that on December 10, 1990, the ERB, in was encashing the check at PNB to satisfy the ABH withdrawal.
response to the President's appeal, brought back the increases in When she returned from the bank, she paid this withdrawal to
Premium and Regular gasoline to the levels mandated by the Veloso, who thought that what she was collecting was the
December 5, 1990 Order (P6.9600 and P6.3900, respectively). P60,000.00 corresponding to the withdrawal slip she presented that
morning.
FORM OF ADMINISTRATIVE DETERMINATIONS
83 DADUBO V. CSC When Dadubo informed Cidro about the third withdrawal, till
223 SCRA 747 money of P100,000.00 was made to service it. Prior to the payment
of the third P60,000.00 withdrawal, Veloso came back and
FACTS: presented another withdrawal slip for P40,000.00. The petitioner
Dadubo, Senior Accounts Analyst and Cidro, Cash Supervisor, of claimed she disbursed P100,000.00 to Veloso, covering the third
the DBP were administratively charged with conduct prejudicial to P60,000.00 and the P40,000.00 withdrawals. On the other hand,
the best interest of the service. The charges were based on reports Veloso testified that she received only P40,000.00 from the
on the unposted withdrawal of P60,000.00 from a certain Savings petitioner. She acknowledged receipt of the amount by signing the
Account. withdrawal slip and indicating opposite her signature the amount
of P40,000.00.
Veloso, an authorized representative of the Tius, presented an
undated withdrawal slip for P60,000.00. Dadubo, as acting teller, That left the balance of P60,000.00 unaccounted for and directly
prepared the needed preliminaries and the money was imputable to Dadubo. She was then charged and subsequently
subsequently released to Veloso. The Received payment portion of found guilty for embezzlement of bank funds.
the withdrawal slip was signed Veloso but Cidro, who disbursed
the amount, failed to initial the passbook. HELD:
Appreciation of the evidence submitted by the parties was, to
After banking hours, another withdrawal slip was presented by repeat, the prerogative of the administrative body, subject to
another employee of the Tius. This was the second P60,000.00 reversal only upon a clear showing of arbitrariness. The rejection of
withdrawal. Veloso did not know about it. The withdrawal slip was the affidavit of Ballicud, for example, was not improper because
processed and approved on the same day. It was indicated in the there was nothing in that document showing that the petitioner did
slip that it was posted but it wasn't actually made, absent not embezzle the P60,000.00.
presentation of passbook.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 74 -

It is true that the petitioner was formally charged with conduct irregularities, grafts and acts of corruption in the department.
prejudicial to the best interest of the bank and not specifically with Therafter, complaints were filed against numerous officers with the
embezzlement. Nevertheless, the allegations and the evidence AAB. These officers eventually questioned the jurisdiction over
presented sufficiently proved her guilt of embezzlement of bank them.
funds, which in unquestionably prejudicial to the best interest of
the bank. HELD:
Management of personnel, an attached agency is to a certain extent
The charge against the respondent in an administrative case need free from departmental interference and control. Although the
not be drafted with the precision of an information in a criminal pertinent provisions don't expressly provide for a mechanism for an
prosecution. It is sufficient that he is apprised of the substance of administrative investigation of personnel, by vesting power to
the charge against him; what is controlling is the allegation of the remove erring employees on the general manager, with the
acts complained of, not the designation of the offense. approval of the board of directors, the law impliedly grants said
officials the power to investigate its personnel below the rank of
The petitioner's complaint was rightfully dismissed, when it assistant general manager who may be charged with an
averred that CSC Resolution No. 92-878 failed to comply with the administrative offense. During such investigation, the PPA general
constitutional requirement to state clearly and distinctly the facts manager may subject the employee concerned to preventive
and the law on which a decision is based. This provision applies suspension. The investigation should be conducted in accordance
only to courts of justice and not to administrative bodies like the with the procedure set by law. Only after gathering sufficient facts
Civil Service Commission. In any event, there was an earlier may the PPA general manager impose the proper penalty in
statement of the facts and the law involved in the decision rendered accordance with law. It is the latter action which requires the
by the MSPB dated February 28, 1990, which affirmed DBP's approval of the PPA board of directors.
decision to dismiss the petitioner. In both decisions, the facts and
the law on which they were based were clearly and distinctly stated. The DOTC secretary as an alter ego has jurisdiction over PPA
personnel like the private respondents herein, is correct only to a
ADMINISTRATIVE APPEAL AND REVIEW certain extent.
84 CORONA V. CA
214 SCRA 378 What is prescribed by the law is that all complaints against a PPA
official or employee below the rank of assistant general manager
FACTS: shall be filed before the PPA general manager by the proper
President Aquino issued an AO creating a President Committee on officials. The aggrieved party shouldn't however be one and the
Public Ethics and Accountability, which vested also powers to the same official upon whose lap the complaint the has filed may
department secretary to discipline offices, agencies, and others eventually fall on appeal.
attached to its department. Pursuant to this, the Secretary created
the AAB to act and decide on cases of administrative malfeasance, 85 DEL CASTILLO V. CSC

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 75 -

241 SCRA 317 company and this prompted them to file for illegal dismissal. The
labor arbiter noted the previous decision and dismissed the
FACTS: complaint. But the NLRC reversed this, averred that there was no
Professor del Castillo was an employee of the PRC. He was res judicata.
assigned as a watcher in the Optometry Licensure Examination. A
report was filed by his fellow watchers that saw him answering the HELD:
test papers of an examiner. He was dismissed from the service Decisions and orders of administrative agencies, rendered pursuant
because of this. He appealed this to the MPSB and it reversed the to their quasi-judicial authority, have upon their finality the force
decision of the PRC. This was reversed by the CSC. and binding effect of a final judgment within the purview of the
doctrine of res judicata.
Petitioner averred that the CSC didn't have jurisdiction in
reversing his acquittal. Upon the grant of his appeal by the MPSB, It is undisputed that the finding of the non-existence of employer-
he averred that the same became final and executory. employee relationship is with finality.

HELD: NOTE:
It is axiomatic that the right to appeal is merely a statutory privilege There was vested right because the ruling affected their status as
and may be exercised only in the manner and in accordance with employees.
the provisions of law and the same contemplates that a review of
decisions exonerating officers or employees from administrative Res judicata is applicable only when there is exercise of quasi-
charges. judicial powers.

RES JUDICATA AND REOPENING OF CASES 87 SY HONG V. COMM. OF IMMIGRATION


86 VDA FISH BROKER V. NLRC L-10224, 11 MAY 1957
228 SCRA 681
FACTS:
FACTS: Prior to February 1940, petitioners were permanent residents in
VDA is a licensed fish broker. It engaged the services of Bula and this country. Sometime in February 1940, they went to China for a
Salac, among others as batilyos to arrange the fish in the banera. temporary sojourn. They were unable to return to the Philippines
On a relevant date, a complaint against VDA was filed for non- within the period of validity of their special return certificate, and
payment of service incentive pay, emergency cost of living the Pacific War had caught up with them in China. They were
allowance, thirteenth month pay, legal holiday and premium pay admitted to this temporary visitors expired on January 20, 1950.
for rest day and holiday was filed against VDA. The labor arbiter After proper investigation, petitioners were ordered deported for
dismissed the case and ruled that there was no employer-employee violation of Philippine Immigration Act, as amended, on April 19,
relationship. The two employees were eventually dismissed by the 1950. Petitioners requested for the correction of their status from

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 76 -

temporary visitors to returning residents, and the first deputy sanction is the force of public opinion invoked by the
commissioner, who was then acting commissioner of Immigration, fairness of a full hearing
ordered the correction of their status into returning residents. On
a later date however, the Commissioner of Immigration set aside METHODS OF ENFORCEMENT
the aforesaid order and proceeded to enforce the warrants of 1. Investigation
deportation issued against petitioners as overstaying temporary 2. Summary action
visitors. On the basis of these facts, the Court below held that 3. Imposition of administrative sanctions
petitioners, having accepted the status of temporary visitors in 4. Judicial action
entering this country, must first abandon the Philippines before
seeking permanent admission thereto, and denied the petitioner for INVESTIGATION
certiorari.  The life blood of the administrative process is the flow of
fact, the gathering, the organization and analysis of
HELD: evidence
The petitioners having lost their right of re-entry as permanent  Investigations are useful for all administrative functions,
residents, and having been admitted as temporary visitors or non- not only for rule-making, adjudication and licensing, but
immigrants and the period allowed for their temporary sojourn in also for prosecuting, for supervising and directing for
these islands having already expired, they are under the law, determining general policy, for recommending legislation,
subject to deportation by the Commissioner of Immigration. and for purposes no more specific than illuminating
obscure areas to find out what if anything should be done.
NOTE:  An administrative agency may be authorized to make
There was no vested right because the subject matter was a investigations, not only in proceedings of a legislative and
privilege. It was the correction of a status by the Commissioner of judicial nature, but also in proceedings whose sole purpose
Immigration. is to obtain information upon which future action of a
legislative and judicial nature may be taken and may
ADMINISTRATIVE ENFORCEMENT AND SANCTIONS require the attendance of witnesses in proceedings of a
purely investigatory nature
ENFORCEMENT OF ADMINISTRATIVE DETERMINATIONS  Investigatory or inquisitorial powers—power to inspect or
 Administrative determinations are enforceable only in the to secure or to require the disclosure of information by
manner provided by statute means of accounts, records or otherwise
 If the state has failed to provide a remedy for their  This power may include the following—
enforcement, they are unenforceable o Of subpoena
 Some determinations are not to be enforced at all, in the o Of swearing witnesses
ordinary sense of the term—in such cases, their only o Of interrogating of witnesses before them

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 77 -

o Of calling the production of books, records and judicial functions insofar as controversies that by express provision
papers law come under its jurisdiction. The difficulty lies in drawing the
o Of requiring books, records and papers to be made demarcation line between the duty which inherently is
available for inspection administrative in character and a function which calls for the
o Of inspecting premises exercise of the quasi-judicial function of the Commission.
o Of requiring written answers to questionnaires
o Of requiring reports, periodic or special In the instant case, the resolutions which the Commission tried to
o Of requiring the filing of statements enforce and for whose violation the charge for contempt was filed
against petitioner Masangcay merely call for the exercise of an
88 MASANKAY V. COMELEC administrative or ministerial function for they merely concern the
6 SCRA 27 procedure to be followed in the distribution of ballots and other
election paraphernalia among the different municipalities. In fact,
FACTS: Masangcay, who as provincial treasurer of Aklan was the one
Masangcay was being punished with contempt by the COMELEC designated to take charge of the receipt, custody and distribution of
for violating its resolution prohibiting the opening of ballot boxes election supplies in that province, was charged with having opened
without the presence of the required authorized officers. three boxes containing official ballots for distribution among
Masangcay questions the constitutionality of the pertinent statutory several municipalities in violation of the instructions of the
provision, questioning the exercise of the COMELEC of the power Commission which enjoin that the same cannot be opened except
to punish acts of contempt against said body under the same in the presence of the division superintendent of schools, the
procedure and with the same penalties provided for in Rule 64 of provincial auditor, and the authorized representatives of the
the Rules of Court in that the portion of said section which grants Nacionalista Party, the Liberal Party, and the Citizens' Party, for he
to the Commission and members the power to punish for contempt ordered their opening and distribution not in accordance with the
is unconstitutional for it infringes the principle underlying the manner and procedure laid down in said resolutions. And because
separation of powers that exists among the three departments of of such violation he was dealt as for contempt of the Commission
our constitutional form of government. and was sentenced accordingly. In this sense, the Commission has
exceeded its jurisdiction in punishing him for contempt, and so its
HELD: decision is null and void.
Commission on Elections has only the duty to enforce and
administer all laws to the conduct of elections, but also the power JUDICIAL REVIEW
to try, hear and decide any controversy that may be submitted to it
in connection with the elections. In this sense, said, the JUDICIAL REVIEW OF OR RELIEF AGAINST
Commission, although it cannot be classified a court of justice ADMINISTRATIVE ACTIONS
within the meaning of the Constitution (Section 30, Article VIII),
for it is merely an administrative body, may however exercise quasi- 89 FIRST LEPANTO V. CA

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 78 -

231 SCRA 30 respondents. Petitioners sat as directors and officers of the subject
corporation. Private respondents averred that these petitioners
90 FIRST LEPANTO V. CA violate their duties of loyalty and diligence by unlawfully refusing
237 SCRA 519 the private respondents from participating in the management of
the corporation. Meanwhile, the US court issued a temporary
91 LIBORO V. CA restraining order prohibiting the private respondents from being
218 SCRA 193 proxies for the American corporation. This order was unheeded.
They were elected as the new directors in an annual stockholders’
WHERE REVIEW IS NOT GRANTED BY STATUTE meeting and yet they averred that they were prohibited unlawfully
by the sitting directors from assuming office. They sought thereby
92 MACAILING V. ANDRADA a temporary restraining order against the petitioners. Hence, these
31 SCRA 126 petition by the petitioners against it.

93 DABUET V. ROCHE PHARMACEUTICALS HELD:


149 SCRA 386 The petitioners do not question the jurisdiction of the SEC over
the case between them and the private respondents. What they
94 LUPANGCO V. CA challenge is the continuance of the temporary restraining order
160 SCRA 848 (JURISDICTIONAL ISSUE ONLY) issued by the respondent SEC and the apparent delay of the latter's
en banc division in resolving their main and supplemental petitions
95 BOARD OF MEDICAL EDUCATION V. ALFONSO which also pray for the lifting of the questioned restraining order.
176 SCRA 304
The SEC "in order to effectively exercise such jurisdiction," is
conferred the power, inter alia, "to issue preliminary or permanent
96 ALMINE V. CA
injunctions, whether prohibitory or mandatory, in all cases in
177 SCRA 796
which it has jurisdiction, and in which cases the pertinent
provisions of the Rules of Court shall apply."
FINALITY OF ADMINISTRATIVE ACTION FOR PURPOSES
OF REVIEW
Since the SEC is at least a co-equal body of the Regional Trial
97 AGUINALDO V. SEC
Court when it adjudicates controversies over which it has
163 SCRA 262
jurisdiction, it follows that the temporary restraining order issued
by SEC must have the same life-span as that issued by the trial
FACTS:
court. It is a well-settled rule that a temporary restraining order
NAMECOR was a corporation with shares owned by a foreign
issued by a trial court has a life of only twenty (20) days—under
corporation which in turn has some of its shares owned by private
Section 5, Batas Pambansa Blg. 224, a judge may issue a temporary

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 79 -

restraining order with a limited life of twenty (20) days from date of
issue. If before the expiration of the 20-day period the application HELD:
for preliminary injunction is denied, the temporarily restraining A cursory examination of the two (2) letters in question shows that
order would thereby be deemed automatically vacated. If no action the same are not a "final award, order or decision" within the
is taken by the judge on the application for preliminary injunction meaning of the aforequoted provisions. Respondent Commission in
within the said 20 days, the temporary restraining order would the said letters did not decide the issue. It did not render a
automatically expire on the 20th day by the sheer force of law, no decision, order or final award. It merely expressed an opinion.
judicial declaration to that effect being necessary. A temporary
restraining order can no longer exist indefinitely for it has become Even assuming that the "opinion" of respondent Commission
truly temporary. expressed in its two (2) letters is proper subject for review, the same
is in accordance with the law.
To the extent, therefore, that the enforcement of the temporary
restraining order issued by the respondent SEC exceeded twenty In construing the "most favored treatment clause" of Republic Act
(20) days, this Court rules that the said respondent committed grave No. 5048, it has been held that the principle behind such provision
abuse of discretion. However, although the questioned order no is that of "fair play" � "to place both competing groups or entities
longer has any force and effect, the respondent SEC still has the on equal footing and not to give one an advantage over the other."
jurisdiction and obligation to proceed with the hearing of the case (Davao Light and Power Co., Inc. vs. The Commissioner of
on the merits and to issue the appropriate orders pursuant thereto Customs, 44 SCRA 127). An examination of the franchises of
subject to review by the Court of Appeals and eventually this Court. petitioner PT & T and DOMSAT discloses that while they are both
engaged in telecommunication activities, they are not necessarily in
EXCEPTIONS TO DOCTRINE OF FINALITY competition with each other. DOMSAT is a "carrier's carrier". It is
98 PT & T V. COA a communications outfit that provides services to other
146 SCRA 190 communication petitions outfits. It was formed for the exploitation
of the benefits of the communications satellite system. It is
FACTS: principally a "middleman" between the operators of the
Petitioner was granted a franchise whereby he was given a communications satellite system and the domestic carriers such as
preferential tax rate. A subsequent law was passed whereby it was petitioner. Thus, its franchise states that petitioner shall have "the
ruled that any grant of a similar franchise which extends benefits to right and authority ... to construct, maintain and operate such
another not mentioned with the franchise of petitioner shall ground and other facilities, as needed to deliver
likewise be given to petitioner. Thereafter, a franchise was granted telecommunications services to and from the communications
to another provider and had a smaller tax rate. The COA satellite system and the telephone, telegraph, telex and other
conducted an audit and found out the deficiency tax payment of networks and terminals of specialized telecommunications network
petitioner. It then sought exception averring that it applied the tax of government and/or private persons and/or corporations such as
rate given to DOMSAT.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 80 -

computer-data communications systems and point-to-point or


switched voice networks. FACTS:
Petitioner Industrial Enterprises Inc. (IEI) was granted a coal
On the other hand, petitioner was granted a franchise to render operating contract by the Government through the Bureau of
communications services to end users. It was not licensed to Energy Development (BED) for the exploration of two coal blocks
operate as a "carrier's carrier." Thus, its franchise states that it has in Eastern Samar. Subsequently, IEI also applied with the then
authority to install and operate facilities for "international and Ministry of Energy for another coal operating contract for the
domestic public communications." Therefore, since DOMSAT exploration of three additional coal blocks which, together with the
caters to other carriers while petitioner caters to end users, they are original two blocks, comprised the so-called "Giporlos Area."
not competitors. Stated otherwise, there can be no business rivalry
between the two firms inasmuch as the customers of one are not IEI was later on advised that in line with the objective of
the customers of the other and vice-versa. rationalizing the country's over-all coal supply-demand balance . . .
the logical coal operator in the area should be the Marinduque
Another reason why DOMSAT and petitioner cannot be Mining and Industrial Corporation (MMIC), which was already
considered competing firms is the fact that the former principally developing the coal deposit in another area (Bagacay Area) and that
provides communications services through the communications- the Bagacay and Giporlos Areas should be awarded to MMIC. Thus,
satellite system, while the latter-does so principally through its own IEI and MMIC executed a Memorandum of Agreement whereby IEI
facilities. assigned and transferred to MMIC all its rights and interests in the
two coal blocks which are the subject of IEI's coal operating
Since petitioner and DOMSAT are not competitors, petitioner contract.
cannot avail itself of the privilege of paying its franchise tax at the
rate of 1/2% instead of 1-1/2% as provided in its franchise. Subsequently, IEC sought the rescission of the memorandum of
agreement due to several raised issues and strangely enough, the
Moreover, what petitioner is claiming in effect, is a reduction of its president of the IEC and MMIC is one and the same person.
taxes due the Government. The rule is that, as the power of taxation Anyway, the trial court through a summary judgment held that the
is a high prerogative of sovereignty, its relinquishment is never rescission was valid but this was reversed by the appellate court.
presumed and any reduction or dimunition thereof with respect to
its mode or its rate must be strictly construed and the same must be HELD:
couched in clear and unmistakable terms in order that it may be The decisive issue in this case is whether or not the civil court has
applied. jurisdiction to hear and decide the suit for rescission of the
Memorandum of Agreement concerning a coal operating contract
DOCTRINE OF PRIOR RESORT/PRIMARY JURISDICTION over coal blocks. A corollary question is whether or not respondent
99 INDUSTRIAL ENTERPRISES V. CA Court of Appeals erred in holding that it is the Bureau of Energy
184 SCRA 426

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 81 -

Development (BED) which has jurisdiction over said action and not
the civil court. FACTS:
PLDT filed an application with respondent Commission for the
While the action filed by IEI sought the rescission of what appears Approval of Rates for Digital Transmission Service Facilities under
to be an ordinary civil contract cognizable by a civil court, the fact NTC Case No. 84-003. The respondent Commission provisionally
is that the Memorandum of Agreement sought to be rescinded is approved and set the case for hearing within the prescribed 30-day
derived from a coal-operating contract and is inextricably tied up period allowed by law. The petitioners except PT&T were
with the right to develop coal-bearing lands and the determination informed of the hearing. They moved to oppose and file a reply to
of whether or not the reversion of the coal operating contract over the application of PLDT but was denied.
the subject coal blocks to IEI would be in line with the integrated
national program for coal-development and with the objective of HELD:
rationalizing the country's over-all coal-supply-demand balance, The Public Service Commission found that the application
IEI's cause of action was not merely the rescission of a contract but involved in the present petition is actually an application for
the reversion or return to it of the operation of the coal blocks. approval of rates for digital transmission service facilities which it
Thus it was that in its Decision ordering the rescission of the may approve provisionally and without the necessity of any notice
Agreement, the Trial Court, inter alia, declared the continued and hearing as provided in the above-quoted provision of law.
efficacy of the coal-operating contract in IEI's favor and directed
the BED to give due course to IEI's application for three (3) IEI Well-settled is the rule that the Public Service Commission now is
more coal blocks. These are matters properly falling within the empowered to approve provisionally rates of utilities without the
domain of the BED. necessity of a prior hearing. Under the Public Service Act, as
amended (CA No. 146), the Board of Communications then, now
For the BED, as the successor to the Energy Development Board the NTC, can fix a provisional amount for the subscriber's
(abolished by Sec. 11, P.D. No. 1206, dated 6 October 1977) is investment to be effective immediately, without hearing makes no
tasked with the function of establishing a comprehensive and distinction between initial or revised rates. These rates are
integrated national program for the exploration, exploitation, and necessarily proposed merely, until the Commission approves them.
development and extraction of fossil fuels, such as the country's Moreover, the Commission can hear and approve revised rates
coal resources; adopting a coal development program; regulating all without published notices or hearing. The reason is easily
activities relative thereto; and undertaking by itself or through discerned from the fact that provisional rates are by their nature
service contracts such exploitation and development, all in the temporary and subject to adjustment in conformity with the
interest of an effective and coordinated development of extracted definitive rates approved after final hearing (Republic v. Medina,
resources. supra; Cordero v. Energy Regulatory Board, G.R. No. 83931,
November 3, 1988, En Banc, Minute Resolution) and it was so
100 RCPI V. NTC stated in the case at bar, in the National Telecommunications
184 SCRA 517 Commission's order of January 25, 1984.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 82 -

A group of public school teachers held a strike against the non-


The Commission did not grant the PLDT any authority to engage payment of their salaries by the Department of Budget as well as
in new communication service, but merely in any new proved against the corruption allegedly existing in the DECS. This
provisionally PLDT's proposed revision of its then authorized prompted a return-to-work order and following circumstances.
schedule of rates for the lease on availment by endusers of the Afterwards, the teachers filed a petition for prohibition.
digital full period leased lines or channels for data transmission
which said company acquired, installed, and presently maintain in HELD:
serviceable condition, a relief well within its power to grant. It should be conceded that the various complaints against the
Undoubtedly, a public utility is entitled to a just compensation and DECS officials have prescinded from the administrative actions
a fair return upon the value of its property while it is being used in taken, and contemplated to be yet taken, against public school
public service. teachers, the plaintiffs in the cases pending with the court a quo.
The said complaints charge the defendants, all government
Finally, there is a legal presumption that the rates are reasonable officials, with having illegally withheld their salaries, having
and it must be conceded that the fixing of rates by the government wrongfully filed administrative charges against the plaintiffs, having
through its authorized agent, involves the exercise of reasonable unjustifiably refused to inform the latter of the nature and accuse of
discretion, and unless there is an abuse of that discretion, the accusation upon which the charges were initiated, having
courts will not interfere. Likewise, as a rule, the court does not inexcusably violated elemental due process, and having erroneously
interfere with administrative action prior to its completion on applied the law. The school teachers pray for actual and moral
finality. damages, plus attorney's fees, as well as for an order restraining the
defendants from further proceeding with the administrative
A doctrine long recognized is that where the law confines in an investigations.
administrative office the power to determine particular questions or
matters upon the facts presented, the jurisdiction of such office The contention of the school teachers that the DECS officials are
shall prevail over the courts. Hence, findings of administrative being sued solely in their private capacity certainly is not borne out
officials and agencies who have acquired expertise because their by their above allegations and prayers. The root of the cases filed
jurisdiction is confined to specific matters are generally accorded below deals, in fact, on the performance of official functions by the
not only respect but at times even finality if such findings are DECS officials. Whether the actions they have taken were proper
supported by substantial evidence. or improper, or whether they have acted in good faith or bad faith,
cannot, pending a full hearing that would aptly afford all parties an
101 VIDAD V. RTC opportunity to ventilate their respective contentions, be yet
227 SCRA 271 determined. Until then, we must presume that official duties have
been regularly performed.
FACTS:

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 83 -

We accordingly hold that the Solicitor General did not act in the verification that he is the president of the PPI. A complaint
improperly in deciding to represent the DECS officials in the above for perjury was filed against him. Probable cause was found to exist
cases. for perjury. Petitioner sought the reversal of this finding.

The defendants' motion to dismiss the complaints have likewise HELD:


been precipitately sought, and we see no reversible error in the Under the doctrine of primary jurisdiction, courts cannot and will
denial thereof by the lower court. The various complaints filed by not determine a controversy involving a question which is within
the public school teachers allege bad faith on the part of the DECS the jurisdiction of an administrative tribunal having been so placed
officials. It cannot be pretended this early that the same could be within its special competence under a regulatory scheme. In such
impossible of proof. On the assumption that the plaintiffs are able instances the judicial process is suspended pending referral to the
to establish their allegations of bad faith, a judgment for damages administrative body for its view on the matter in dispute. 13
can be warranted. Public officials are certainly not immune from
damages in their personal capacities arising from the acts done in Consequently, if the courts cannot resolve a question which is
bad faith; in these and similar cases, the public officials may not be within the legal competence of an administrative body prior to the
said to have acted within the scope of their official authority, and resolution of that question by the administrative tribunal, especially
no longer are they protected by the mantle of immunity for official where the question demands the exercise of sound administrative
actions. 12 discretion requiring the special knowledge, experience and services
of the administrative agency to ascertain technical and intricate
It was, nonetheless, inopportune for the lower court to issue the matters of fact, and a uniformity of ruling is essential to comply
restraining orders. The authority of the DECS Regional Director to with the purposes of the regulatory statute administered, 14 much
issue the return to work memorandum, to initiate the less can the Provincial Prosecutor arrogate to himself the
administrative charges and to constitute the investigating panel can jurisdiction vested solely with the SEC.
hardly be disputed.
In the case at bar, the applicable regulatory statute is P.D. No. 902-
102 SAAVEDRA V. DOJ A conferring upon the SEC the legal competence to rule on
226 SCRA 438 intracorporate disputes, which competence had already been
upheld by us in a number of cases. 15 Considering that it was
FACTS: definitely settled in Saavedra, Jr. v. SEC that the issues of
The owners of shares of stock of PPI sold the same to petitioner. A ownership and automatic rescission are intracorporate in nature,
memorandum of agreement and deed of assignment was drafted to then the Provincial Prosecutor, clearly, has no authority whatsoever
evidence the transaction. There was however non-payment of to rule on the same. In fact, if we were to uphold the validity of the
balance by petitioner and that is why the private respondents filed DOJ Resolutions brought before us, as respondents suggest, we
with the SEC for rescission. The petitioner in turn filed a would be sanctioning a flagrant usurpation or preemption of that
complaint for damages against the private respondents. He alleged primary and exclusive jurisdiction which SEC already enjoys.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 84 -

Obviously, it cannot be done. Thus, the Provincial Prosecutor upon case, to wit: (a) that the accused made a statement under oath or
being confronted with the issue of whether the sale of stocks to executed an affidavit upon a material matter; (b) that the statement
petitioner was automatically cancelled while in the course of or affidavit was made before a competent officer, authorized to
determining probable cause for perjury, should have withheld filing receive and administer oath; (c) that in that statement or affidavit,
any information against the accused. the accused made a willful and deliberate assertion of a falsehood;
and, (d) that the sworn statement or affidavit containing the falsity
Public respondent DOJ in attempting to justify the action of the is required by law or made for a legal purpose. 17
Provincial Prosecutor avers that the latter is empowered to make a
preliminary ruling on the matter for the purpose of finding Clearly, mere assertion of a falsehood is not enough to amount to
probable cause against petitioner, and that petitioner may raise the perjury. The assertion must be deliberate and willful. While there
pendency of the issue before the SEC as his defense at the trial may have been a falsehood asserted, which we are not prepared to
proper. accept, no evidence exists to show that the same was done
deliberately and wilfully. On the contrary, the records tend to show
We are not persuaded. The duty of a prosecutor during preliminary that the assertion was done in good faith, in the belief that the non-
investigation is not only to find evidence to warrant continuation of payment of the last installment price was justified by the sellers'
the criminal process against an accused. Of equal importance, and non-compliance with their warranties. Besides, petitioner alleges
it has been repeated often enough, is his duty to protect the that he has deposited the balance in escrow, which is not disputed.
innocent from hasty, expensive and useless trials. 16 This duty, in Consequently, a finding of probable cause does not follow as a
addition to the "primary and exclusive" jurisdiction of the SEC, matter of course even if SEC decides adversely against petitioner,
demands the outright termination of the criminal prosecution of for an essential element of the crime appears to be wanting in the
petitioner which, at the very outset, was already bereft of factual case before us, i.e., that the falsehood is willful and deliberate.
and legal bases. Indeed, the prosecution of petitioner cannot be
based on a mere Secretary's Certificate which cannot attest to the Moreover, as a rule, pleadings need not be verified unless otherwise
validity of the automatic rescission, hence, cannot likewise settle required by the Rules of Court, and no rule requires complaints for
the question as to who between petitioner and private respondent damages, as in the case before us, to be under oath. Since the
is the lawful President of PPI. complaint filed by petitioner against private respondent is not
required to be verified, another essential element of the crime of
Be that as it may, the outcome of SEC Case No. 3257 is not perjury is absent, i.e., that the sworn statement containing the
determinative of whether or not the charge for perjury against falsity is required by law. Consequently, petitioner cannot be
petitioner can prosper. Even if private respondent Ramos succeeds prosecuted on the basis of an alleged falsehood made in a verified
in proving the validity of the automatic rescission of the sale before pleading which is not mandated by law to be verified.
the SEC, it does not necessarily mean that the criminal prosecution
has basis. There are four (4) elements of the crime of perjury to be 103 FREEMAN V. SEC
taken into account in determining whether there is a prima facie 233 SCRA 735

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 85 -

denying their motion for reconsideration. There is no doubt that


FACTS: this petition was seasonably filed.
Corporation secured loans from Equitable Bank and these was
evinced by promissory notes. Due to the failure to pay, the bank SEC Case No. 3577 arose from the action filed by private
instituted collection suits against the corporation. The minority respondents as minority shareholders of petitioner FREEMAN for
shareholders moved to intervene but was denied by the court. The the dissolution of the corporation and reconveyance of the
collection suit was later terminated due to a compromise properties conveyed to another petitioner FREEMAN
agreement, wherein properties were conveyed to be sold in public MANAGEMENT in a public auction. The SEC maintained that it
auction for the corporation to pay its debts. Later, the minority had jurisdiction to issue the writ of injunction preventing the
shareholders moved the dissolution of the corporation and consolidation of ownership in FREEMAN MANAGEMENT on the
liquidation of its properties. They were denied once again. basis of our ruling in Saw v. Court of Appeals. We denied the
intervention of private respondents in the trial court in Civil Case
HELD: No. 88-44404 which had already been terminated. As we stated
We sustain petitioners. The present petition seeks to annul and set therein, even with the denial of herein private respondents' motion
aside the order of the SEC for want of jurisdiction to issue the writ to intervene nothing could really be lost to them as their rights
of injunction, a provisional remedy to the principal action pending were being litigated before the SEC and would be fully asserted
in the SEC for the dissolution of petitioner FREEMAN. Hence, the and protected in that separate proceeding.
petition is not an appeal from a final order of the SEC but a special
civil action questioning the legal competence of the latter to issue Our ruling in Saw v. Court of Appeals should be understood in the
such interlocutory order. It is covered by Sec. 1, Rule 65, of the light of two(2) basic legal principles. First, that administrative
Rules of Court which allow a person aggrieved to file a verified agencies like the SEC are tribunals of limited jurisdiction and as
petition in the proper court praying that judgment be rendered such can exercise only those powers which are specifically granted
annulling or modifying the proceedings, as the law requires, of the to them by their enabling statutes. 14 Section 5 of P.D. No. 902-A,
tribunal, board or officer when the latter, exercising judicial as amended, provides the cases over which the SEC has original
functions, has acted without or in excess of its or his jurisdiction or and exclusive jurisdiction to hear and decide. These include
with grave abuse of discretion and there is no appeal, nor any plain, controversies arising out of intra-corporate or partnership relations
speedy and adequate remedy in the ordinary course of law. between and among stockholders, members or associates; between
any or all of them and the corporation, partnership or association
We have consistently ruled that petitions for certiorari must be of which they are stockholders, members or associates, respectively;
filed within a reasonable time. In the instant case, the records show and, between such corporation, partnership or association and the
that the petition at bench was filed on 4 June 1993, or two (2) state insofar as it concerns their individual franchise or right to
months and nineteen (19) days from 17 March 1993, which was the exist as such entity. Section 6 of the same decree empowers the
date when petitioners received copy of the order of the SEC SEC to issue preliminary or permanent injunction, whether
prohibitory or mandatory, in all cases in which it has jurisdiction.

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 86 -

once and for all. 17 It cannot be modified or altered. Hence, the


The action for dissolution of FREEMAN filed by its minority properties sold to FREEMAN MANAGEMENT are now considered
stockholders is well within the jurisdiction of the SEC to resolve in excluded from the corporate assets of FREEMAN and can no
accordance with P.D. No. 902-A. However, the inclusion in the longer be the subject of the proceedings in the SEC for the
SEC case of FREEMAN MANAGEMENT of which private dissolution of the latter. Therefore SEC exceeded its jurisdiction
respondents are not stockholders for the purpose of compelling it when it issued a writ of injunction enjoining FREEMAN
to reconvey to FREEMAN the properties originally owned by the MANAGEMENT from consolidating its ownership over the two (2)
latter but were levied upon and sold to FREEMAN parcels of land it acquired as highest bidder in the execution sale.
MANAGEMENT in a public auction is a matter outside of the
limited jurisdiction of the SEC. The petition for reconveyance of DOCTRINE OF EXHAUSTION OF ADMINISTRATIVE
properties against FREEMAN MANAGEMENT is not an intra- REMEDIES
corporate controversy since private respondents have no shares or 104 FERNANDO V. STO. TOMAS
interests whatsoever in FREEMAN MANAGEMENT, a corporation 234 SCRA 546
separate and distinct from FREEMAN, which is undergoing
dissolution proceedings in the SEC. FACTS:
Petitioners were mediation arbiters and discharging their duties as
The second basic principle is the doctrine of non-interference such. A memorandum circular was issued causing the
which should be regarded as highly important in judicial stability reassignment of officers and some of those affected were the
and in the administration of justice whereby the judgment of a petitioners. They didn't follow the said circular given that it was
court of competent jurisdiction may not be opened, modified or allegedly a transfer and was made without their consent. The
vacated by any court or tribunal of concurrent jurisdiction. 15 The Secretary clarified in a subsequent circular that such wasn't a
SEC is at the very least co-equal with the Regional Trial Court. As transfer and again made the reassignment clear. Again, they didn't
such, one would have no power to control the other. 16 Moreover, comply which caused a complaint for gross insubordination to be
in the instant case, judgment was rendered by the trial court in filed against them.
Civil Case No. 88-44404 approving the compromise agreement
between EQUITABLE on one hand, and FREEMAN and Saw HELD:
Chiao Lian on the other. A writ of execution was issued against the Finally, we do not deem it appropriate to rule on the merits of the
defendants to enforce the judgment and two (2) properties of order issued on July 26, 1993 by respondent Secretary preventively
FREEMAN were levied upon and sold to FREEMAN suspending petitioners for ninety (90) days, as well as her
MANAGEMENT as highest bidder in the public auction. subsequent order dated October 25, 1993 finding petitioners guilty
of insubordination and imposing on them the penalty of
Finally, the judgment was fully satisfied and a certificate of sale was suspension of one (1) year. Evidently, herein petitioners, in asking
issued to FREEMAN MANAGEMENT. It is axiomatic that after a us to resolve the issues thereon in their present recourse, have
judgment has been fully satisfied, the case is deemed terminated

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 87 -

overlooked or deliberately ignored the fact that the same are clearly private respondent, he reversed himself and chose private
dismissible for non-exhaustion of administrative remedies. respondent. Petitioner opposed this. The Secretary found the
reversal irregular and thus, held the affirmance of the earlier
On the first aspect, petitioners allowed the 90-day period of decision. The District Superintendent was then ordered to prepare
preventive suspension to lapse without appealing from the Order of the necessary documents for the appointment of petitioner. Private
July 26, 1993. In fact, the investigation which necessitated such respondent then after defeat with the court, sought an action for
suspension has long since been concluded and thereafter resulted quo warranto against the DECS Regional Director of Region VI,
in the condemnatory Order of October 25, 1993. Hence, they are the Civil Service Commission Regional Director of Region VI, the
now clearly estopped from invoking the certiorari jurisdiction of Schools Division Superintendent of San Carlos City (Negros
this Court in a belated attempt to seek redress from the first Order. Occidental), the Administrative Officer of DECS, Region VII and
the petitioner. Private respondent prayed for judgment (a)
Secondly, as stated earlier, the Order dated October 25, 1993 annulling the 17 April 1985 Memorandum-Report of the
imposing a punitive suspension of one year on herein petitioners Complaints Committee of DECS, the letter of Minister Laya of the
cannot be the proper subject of a petition for certiorari for their same date expressing concurrence with the findings and
failure to exhaust administrative remedies. Presidential Decree No. recommendation therein and the letter of the MECS Regional
807 and Executive Order No. 292 explicitly provide that Director of 17 September 1985 directing the Schools Division
administrative disciplinary cases involving the imposition of a Superintendent to issue to the private respondent an appointment
penalty of suspension for more than thirty (30) days are appealable back to his former position as Elementary School Principal I and
to the Civil Service Commission. 13 Not having fully exhausted the (b) ordering defendants therein to pay him P10,000.00 as attorney's
remedy available to them, petitioners cannot resort to their present fees, litigation expenses and costs of the suit. He also sought the
judicial action which is both premature at this juncture and issuance of a restraining order or preliminary injunction to prevent
proscribed by Rule 65 of the Rules of Court. Neither do we find any the enforcement of the abovestated rulings and directives. The case
of the exceptions to the doctrine of exhaustion of administrative was docketed as Civil Case No. 162 and was assigned to Branch 57
remedies which could be applicable to the instant case, nor have of the court below.
petitioners essayed any submission on that score.
HELD:
105 BAGUIORO V. BASA It is equally clear that private respondent had not exhausted the
214 SCRA 437 administrative remedies provided by law to set aside the promotion
extended to the petitioner. In this regard, therefore, the complaint
FACTS: in Civil Case No. 162 fails to state a cause of action. A dismissal on
Petitioner and private respondent were the elementary teacher the ground of failure to exhaust administrative remedies is
head and elementary principal respectively. They both sought the tantamount to a dismissal based on lack of cause of action. 12
promotion as division head. The petitioner was subsequently What private respondent should have done was to appeal the 17
chosen for the position but through a motion for reconsideration of April 1985 decision of the then MECS Minister Jaime Laya to the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 88 -

Merit Systems Board (now Merit System Protection Board). Under Unfortunately, both the trial court and the Court of Appeals skirted
present procedure, a next-in-rank employee who is competent and that legal issue and simply dismissed Rosario's petition for review
qualified and feels aggrieved by the promotion of another may filed of the Resolution of the City Tenants' Security Commission on the
a protest with the department or agency head who shall render a grounds of non-exhaustion of administrative remedies and
decision thereon within thirty (30) days from receipt of the protest. tardiness.
Such decision may be appealed by an aggrieved party within fifteen
(15) days from receipt thereof to the Merit Systems Protection Failure to exhaust administrative remedies is not, however,
Board which, in turn, shall render its decision thereon within sixty necessarily fatal to an action. Failure to observe the doctrine of
(60) days from the time the case is submitted for decision. The exhaustion of administrative remedies does not affect the
decision of the Board is final unless it involves a division chief or an jurisdiction of the court. We have repeatedly stressed this in a long
official of higher rank; in such a situation, the decision may be line of decisions. The only effect of non-compliance with this rule
appealed to the Civil Service Commission. On the other hand, is that it will deprive the complainant of a cause of action, which is
decisions involving positions below division chief may be reviewed a ground for a motion to dismiss. If not invoked at the proper time,
by the Commission. this ground is deemed waived and the court can then take
cognizance of the case and try it.
106 ROSARIO V. CA
211 SCRA 384 It does not appear in this case that a motion to dismiss based on
non-exhaustion of administrative remedies had been filed. We
FACTS: therefore feel, as we did in a number of cases before this, that
Pursuant to the Land for the Landless program of the city "where the equities warrant such extraordinary recourse," the
government, Cruz and Rosario sought the conveyance of particular petition may be given due course.
lands to them. Previously, Cruz built a residential house and
rented it out to Rosario. Upon their application, the two lots were 107 ROSALES V. CA
given to them. Averring that Rosario was merely a lessee of the 165 SCRA 344
lots, Cruz sought reconsideration and was granted such. Rosario
then filed a complaint with the trial court but it was sought to be FACTS:
dismissed since there was no exhaustion of administrative A list of honor students were released in an elementary school.
remedies. Rosales was a candidate for valedictorian and yet his name wasn't
reflected in the list. This prompted his parents to question such
HELD: and ask for a recomputation. It is said that the action was belated,
The main issue raised by the petitioner is whether or not being the having the commencement exercises to be held the next day. On
sublessee and "actual occupant" of Lot 3-A, he has the preferential April 20, 1972, the Chief of the Legal Division of the Bureau of
right to buy said lot. Private Schools sent a copy of the complaint by first indorsement to
the Rector of herein respondent school. Said comment was made

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 89 -

on April 21, 1972, stating, among others, that the complaint had HELD:
lost its validity because the same was filed on the eve of the Subject complaint, Civil Case No. 16998, was filed with the trial
commencement exercises of the school, in violation of the court on November 29,1972, showing beyond dispute that the
provision of paragraph 176, Section XI of the Manual of Regulation request for reconsideration judicially admitted to have been filed by
for Private Schools requiring complaints of the kind to be filed not the petitioners on February 7, 1973 with the Secretary of Education
later than ten (10) days before commencement exercises. However, and Culture had not yet been resolved at the time of the filing of
defendant Rector indicated that he would welcome an investigation Civil Case No. 16998.
in order to erase any doubt as to the selection of the honor students
of the grade school concerned. Hence, the said civil case which is an action for damages is
premature. The finality of the administrative case which gives life to
On May 5, 1972, the Director of Private Schools rendered a petitioners' cause of action has not yet been reached. This was still
decision holding that Rommel Rosales was the rightful pending as evidenced in the certificate issued by the agency trying
valedictorian. the same (Record on Appeal, pp. 53-54; Rollo, p. 14). The court a
quo was thus correct in acting upon the motion to dismiss filed by
On November 29, 1972, Rosales filed a complaint for damages the respondents on the ground that plaintiffs failed to exhaust
itemized as follows: P25,000.00 for moral damages; P15,000.00 for administrative remedies.
correctional damages and P5,000.00 for attorney's fees, in view of
the failure of the school to graduate Rommel Rosales as Under the doctrine of exhaustion of administrative remedies,
valedictorian of his class. recourse through court action, as a general rule, cannot prosper
until all the remedies have been exhausted at the administrative
In its answer, respondent school prayed that the complaint be level. When an adequate remedy may be had within the Executive
dismissed on the ground that the Director of Private Schools acting Department of the government, but nevertheless, a litigant fails or
on its motion dated May 11, 1972 reconsidered and set aside his refuses to avail himself of the same, the judiciary shall decline to
decision of May 5, 1972 and instead "approved and/or confirmed interfere. This traditional attitude of the courts is based not only on
the selection and award of honors to the students concerned for the convenience but likewise on respect; convenience of the party
school year 1971-1972 as effected by the school." (p. 14, Rollo [R.A., litigants and respect for a co-equal office in the government. If a
p. 31]) remedy is available within the administrative machinery, this
should be resorted to before resort can be made to (the) court.
Petitioners, in their reply, averred that said motion for
reconsideration was mysteriously filed, there being no original APPEAL TO THE PRESIDENT
copies of the same in the Office of the Director of Private Schools 108 FEDERATION OF FREE WORKERS V. INCIONG
which would show the date of filing thereof and their 161 SCRA 295
corresponding receipt of a copy thereof by the petitioners.
FACTS:

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 90 -

Federation of Free Workers is a labor organization registered with Sometime thereafter, the respondent Chairman of the Wage
the Department of Labor and Employment. It is the certified Commission submitted her report to the Secretary of Labor
collective bargaining agent of all the rank and file employees of the recommending the approval of the said application. 3 On
herein private respondent, the Allied Sugar Centrals Company, a November 21, 1977, the herein respondent Acting Secretary of
registered partnership. Labor Amado Inciong wrote to the private respondent informing it
that its application was approved for a period of one year, effective
Presidential Decree No. 1123 was promulgated requiring all May 1, 1977. The letter of approval recited therein that the same is
employers in the private sector to pay their employees an across- final and unappealable. 4 A notice of the order of approval was
the-board increase of P60.00 in their existing monthly emergency sent to both the president of the petitioner labor organization and
allowance as provided for in an earlier law, Presidential Decree No. the private respondent.
525. The increase was to take effect on May 1, 1977. The Decree
also authorizes the Secretary of Labor to issue the appropriate rules On December 2, 1977, Chairman Fidelino received a letter from the
necessary to implement the provisions of the said law, including petitioner dated November 17, 1977 again inquiring on the
such regulations to govern the procedure through which financially existence of any application on the part of the private respondent.
distressed employers may be exempted from the requirements of Chairman Fidelino did not send any reply.
the same.
On December 15, 1977, the petitioner filed with the Office of the
Sometime in May, 1977, the private respondent was about to pay Secretary a motion for reconsideration seeking a reversal of the
the increase in emergency living allowance mandated by the approval of the said application on the grounds that the exemption
Decree. Preparations were made in order to effectuate the payment granted to the private respondent is discriminatory and that the
but the attempt to do so was short-lived. The private respondent firm is not in unsound financial condition. 5
decided against the payment and the plan was, therefore, aborted.
On March 3, 1978, the private respondent filed another application
Meanwhile, on August 2, 1977, the petitioner wrote to the Secretary for exemption, this time for the year 1978. In a letter addressed to
of Labor inquiring if the private respondent filed an application for the Secretary of Labor dated May 31, 1978, the petitioner opposed
exemption in accordance with the abovecited Section 6. The the application and reiterated its objection to the exemption
petitioner also requested that it be furnished a copy of such granted to the firm for 1977 for the same reasons earlier mentioned.
application if one had indeed been filed by the private respondent. 6
On August 30,1977, the herein respondent Chairman of the Wage
Commission of the Department of Labor Rachel Fidelino sent her On June 5,1978, Chairman Fidelino overruled the opposition and
reply to the petitioner stating therein that there was no application motion for reconsideration which stressed that the private
in the name of the private respondent in the records of their office. respondent does not appear to be in distressed financial condition
as observed by a financial analyst of the Commission. 7 Thus, on
June 9, 1 978, Acting Secretary Inciong issued an order approving

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 91 -

the second application for exemption covering 1978, for a period of Inasmuch as no grave abuse of discretion appears to have been
one year effective May 1 thereof. The approval also recited therein committed by the herein public respondents, the writ of certiorari
that the same is final and unappealable. sought by the petitioner cannot issue,

HELD: 109 TESORERO V. MATHAY


For their part, the respondents argue that the petitioner did not 185 SCRA 124
exhaust all administrative remedies available before it sought
judicial review. They are of the view that the rulings of the FACTS:
respondent Acting Secretary of Labor can still be elevated to the DALIGHT sought the appraisal of its properties. At first
President of the Philippines for review. This view is traversed by application, it was held to be disqualified. On the second
the fact that, as stated by the respondent Acting Secretary in application, it was granted the appraisal. The petitioners sought
approving both applications, such approval is final and reconsideration of this decision.
unappealable. Moreover, in the absence of a constituttional
provision or a statute to the contrary, the official acts of a HELD:
Department Secretary are deemed the acts of the President himself Certiorari is not the proper remedy to be sought. The law creating
unless disapproved or reprobated by the latter. This is the doctrine the BOE provided for the remedy of appeal to the office of the
of qualified political agency, to wit—under the presidential type of President within a certain period. It will be noted that the
government which we have adopted and considering the petitioners belatedly filed their motion for reconsideration, after
departmental organization established and continued in force by ... the decision has become long final and executory. Nonetheless,
our Constitution, all executive and administrative organizations are while there was an error in the remedy sought, the court has
adjuncts of the Executive Department, the heads of the various numerously given due course to a petition for certiorari in the
executive departments are assistants and agents of the Chief interest of justice, although the proper remedy is appeal especially
Executive, and, except in cases where the Chief Executive is where the equities warrant such recourse and considering that
required by the Constitution or the law ta act in person or the dismissals on technicalities are viewed with disapproval.
agencies of the situation demand that he act personally, the
multifarious executive and administrative functions of the Chief EXCEPTIONS TO THE DOCTRINE OF EXHAUSTION
Executive are performed by and through the executive 110 AQUINO-SARMIENTO V. MORATO
departments, and the acts of the secretaries of such departments, 203 SCRA 515 (QUESTION OF LAW)
performed and promulgated in the regular course of business, are,
unless disapproved or reprobated by the Chief Executive, FACTS:
presumptively the acts of the Chief Executive. ... In February 1989, petitioner, herself a member of respondent
Movie and Television Review and Classification Board (MTRCB),
wrote its records officer requesting that she be allowed to examine

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 92 -

the board's records pertaining to the voting slips accomplished by courts, he is required to comply with all administrative remedies
the individual board members after a review of the movies and available under the law (Rosales v. Court of Appeals, 165 SCRA 344
television productions. It is on the basis of said slips that films are [1988]). The rationale behind this salutory principle is that for
either banned, cut or classified accordingly. reasons of practical considerations, comity and convenience, the
courts of law will not entertain a case until all the available
Acting on the said request, the records officer informed petitioner administrative remedies provided by law have been resorted to and
that she has to secure prior clearance from respondent Manuel the appropriate authorities have been given ample opportunity to
Morato, as chairman of MTRCB, to gain access to the records act and to correct the errors committed in the administrative level.
sought to be examined. If the error is rectified, judicial intervention would then be
unnecessary.
Petitioner's request was eventually denied by respondent Morato
on the ground that whenever the members of the board sit in Nonetheless, the doctrine of exhaustion of administrative remedies
judgment over a film, their decisions as reflected in the individual is not absolute. The applicability of the principle admits of certain
voting slips partake the nature of conscience votes and as such, are exceptions, such as: 1) when no administrative review is provided
purely and completely private and personal. It is the submission of by law; 2) when the only question involved is one of law (Valmonte
respondents that the individual voting slips is the exclusive v. Valmonte, 170 SCRA 256 [1989], citing Aguilar v. Valencia, 40
property of the member concerned and anybody who wants access SCRA 210 [1971]; Malabanan v. Ramento, 129 SCRA 359 [1984];
thereto must first secure his (the member's) consent, otherwise, a Bagatsing v. Ramirez, 74 SCRA 306; Del Mar v. Philippine Veterans
request therefor may be legally denied. Administration, 51 SCRA 340 [1973]; Pascual v. Provincial Board,
106 Phil. 466 [1959]; 3) where the party invoking the doctrine is
Petitioner argues, on the other hand, that the records she wishes to guilty of estoppel (Vda. de Tan v. Veterans' Backpay Commission
examine are public in character and other than providing for [1969]; 4) where the challenged administrative action is patently
reasonable conditions regulating the manner and hours of illegal, arbitrary and oppressive (Azur v. Provincial Board, 27 SCRA
examination, respondents Morato and the classification board have 50 [1969]; National Development Co. v. Collector of Customs of
no authority to deny any citizen seeking examination of the board's Manila, 9 SCRA 429 [1963]; 5) where there is unreasonable delay or
records. official inaction that would greatly prejudice the complainant
(Gravador v. Mamigo, 20 SCRA 742 [1967]; Azuelo v. Arnaldo, 108
HELD: Phil. 293 [1960]; 6) where to exhaust administrative review is
Respondents argue at the outset that the instant petition should be impractical and unreasonable (Cipriano v. Marcelino, 43 SCRA
dismissed outright for having failed to comply with the doctrine of 291); and 7) where the rule of qualified political agency applies
exhaustion of administrative remedies. (Demaisip v. Court of Appeals, 106 Phil. 237 [1906]).

We disagree. The doctrine of exhaustion of administrate remedies The issue raised in the instant petition is one of law, hence the
simply provides that before a party litigant is allowed resort to the doctrine of non-exhaustion of administrative remedy relied upon by

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 93 -

respondents is inapplicable and cannot be given any effect. At any


rate, records are replete with events pointing to the fact that On August 4, 1975, Madrigal sent a letter to the Provincial Board
petitioner adhered to the administrative processes in the requesting implementation of the resolution of the Commission
disposition of the assailed resolutions of public respondents prior and consequently, reinstatement to his former posistion.
to filing the instant petition by, among others, writing the Executive
Secretary and bringing the matter to the attention of the Office of On August 18, 1975, the Provincial Board, through Resolution No.
the President (Rollo, pp. 145-147). Respondents' claim that 93, denied Madrigal's request for reinstatement because his former
petitioner failed to exhaust administrative remedies must therefore posistion no longer exists. In the same resolution, it ordered the
fail. appropriation of the amount of P4,200.00 as his back salaries
covering the preiod December 1, 1971 up to June 30, 1973 (p. 47,
111 MADRIGAL V. LECAROZ Records).
191 SCRA 20 (QUESTION OF LAW)
On December 15, 1975, Madrigal filed a petition before the Court
FACTS: of First Instance (now Regional Trial Court) of Marinduque against
Governor Aristeo M. Lecaroz, Vice-Governor Celso Zoleta, Jr., public respondents Governor Aristeo M. Lecaroz, Vice-Governor
Provincial Board of Marinduque members Domingo Riego and Celso Zoleta, Jr., Provincial Board Members Domingo Riego and
Marcial Principe abolished petitioner-appellat Joventino Madrigal's Marcial Principe, Provincial Engineer Enrique M. Isidro, Abraham
position as a permanent construction capataz in the office of the I. Taduran and the Province of Marinduque for mandamus and
Provincial Engineer from the annual Roads Bridges Fund Budget damages seeking, inter alia, (1) restoration of his abolished position
for fiscal year 1971-1972 (p.2, Records) by virtue of Resolution No. in the Roads and Bridges Fund Budget of the Province; (2)
204. The abolition was allegedly due to the poor financial condition reinstatement to such position; and (3) payment of his back salaries
of the province and it appearing that his position was not essential plus damages (pp. 1-5, Records).
(p. 6, Records).
On March 16, 1976, the trial court issued an order dismissing the
On April 22, 1972, Madrigal appealed to the Civil Service petition on the ground that Madrigal's cause of action was barred
Commission. On August 7, 1973, he transmitted a follow-up letter by laches.
to the Commission regarding his appela. On January 7, 1974, the
Commission in its 1st Indorsement declared the removal of HELD:
Madrigal from the service illegal (pp. 7-8, Records). The unbending jurisprudence in this jurisdiction is to the effect
that a petition for quo warranto and mandamus affecting titles to
On April 26, 1974, public respondent Governor Aristeo M. Lecaroz public office must be filed within one (1) year from the date the
moved for a reconsideration of said resolution. On February 10, petitioner is ousted from his position.
1975, the Commission denied the motion for reconsideration (pp.
9-10, Records).

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 94 -

[W]e note that in actions of quo warranto involving right to an thereon situated at Sitio Igbolo, Barangay Cabiawan, San Remigio,
office, the action must be instituted within the period of one year. Antique with an area of 60,000 square meters more or less. He has
This has been the law in the island since 1901, the period having since then been in possession thereof.
been originally fixed in Section 216 of the Code of Civil Procedure
(Act No. 190). We find this provision to be an expression of policy On or about April 21, 1977, private respondent, claiming that the
on the part of the State that persons claiming a right to an office of northern portion of said parcel of land is included in his Original
which they are illegally dispossessed should immediately take steps Certificate of Title No. N-1889 (Free Patent No. 319059), caused a
to recover said office and that if they do not do so within a period technical survey of said portion over the vehement opposition and
of one year, they shall be considered as having lost their right objection of petitioner. Petitioner thereafter filed with the District
thereto by abandonment. There are weighty reasons of public Officer, Bureau of Lands, San Jose, Antique a protest under oath,
policy and convenience that demand the adoption of a similar praying that the original certificate of title issued in private
period for persons claiming rights to positions in the civil service. respondent's favor be annulled on the ground of fraud. An
There must be stability in the service so that public business may investigation was forthwith commenced by the District Land
(sic) be unduly retarded; delays in the statement of the right to Officer.
positions in the service must be discouraged.
In the meantime, on September 20, 1978, petitioner filed before the
And this one (1) year period is not interrupted by the prosecution then Court of First Instance (now Regional Trial Court) of Capiz an
of any administrative remedy. Actually, the recourse by Madrigal to action for Injunction with Preliminary Prohibitory Injunction with
the Commission was unwarranted. It is fundamental that in a case Damages.
where pure questions of law are raised, the doctrine of exhaustion
of administrative remedies cannot apply because issues of law HELD:
cannot be resolved with finality by the administrative officer. We grant the petition. The court a quo misapplied the rule on
Appeal to the administrative officer of orders involving questions of exhaustion of administrative remedies. This misapplication
law would be an exercise in futility since administrative officers stemmed primarily from its characterization of petitioner's action as
cannot decide such issues with finalitY. In the present case, only a one for annulment of private respondent's original certificate of
legal question is to be resolved, that is, whether or not the abolition title which included the area in dispute. Since a protest aimed
of Madrigal's position was in accordance with law. precisely at this relief had been previously filed by petitioner in the
Bureau of Lands District Office, the trial court readily concluded
112 PAINAGA V. CORTES that the action in court was premature, following the
202 SCRA 245 (DIFFERENT ISSUE INVOLVED) pronouncement in Pestanas vs. Dyogi, supra.

FACTS: A reading of the complaint in Civil Case No. 1539 however shows
On December 29, 1962, petitioner purchased from Bonifacio that the same is, as its caption states, an original action for
Merendad a parcel of corn and pasture land with improvements injunction brought to protect and preserve petitioner's right of

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 95 -

possession over the subject land in accordance with the provision The protest filed by petitioner before the Bureau of Lands seeking
of the New Civil Code which recognizes a possessor's right to be the cancellation of private respondent's original certificate of title
respected in his possession, thus: on the ground of fraud differs from Civil Case No. 1549 in terms of
their nature, the causes of action upon which they rest as well as in
Art. 539. Every possessor has a right to be respected in his the reliefs sought. The administrative protest boils down to the
possession; and should he be disturbed therein he shall be question of ownership of the area in controversy, while the court
protected in or restored to said possession by the means action is concerned merely with possession. That ownership and
established by the laws and the Rules of Court. possession are two entirely different legal concepts is illustrated in
the case of German Management Services, Inc. vs. Court of
In the very recent case of Maximo Solis, et al. vs. Hon. Intermediate Appeals, 4 in this wise:
Appellate Court, et al., G.R. No. 72486, June 19, 1991, this Court
ruled that the "power and authority given to the Director of Lands ... It must be stated that regardless of the actual condition of the
to alienate and dispose of public lands does not divest the regular title to the property, the party in peaceable quiet possession shall
courts of their jurisdiction over possessory actions instituted by not be turned out by a strong hand, violence or terror. Thus, a
occupants or applicants against others to protect their respective party who can prove prior possession can recover (or retain) such
possessions and occupations. While the jurisdiction of the Bureau possession even against the owner himself. Whatever may be the
of Lands is confined to the determination of the respective rights of character of his prior possession, if he had in his favor priority in
rival claimants to public lands or to cases which involve disposition time, he has the security that entitles him to remain on the property
of public lands, the power to determine who has the actual, until he is lawfully ejected by a person having a better light by
physical possession or occupation or the better right of possession accion publiciana or accion reivindicatoria.
over public lands remains with the courts."
Whatever decision the trial court may render in Civil Case No. 1539
The rationale for this ruling was given, thus: will not encroach on the primary jurisdiction of the Bureau of
Lands over the question of who between petitioner and private
The rationale is evident. The Bureau of Lands does not have the respondent is entitled to the ownership of the land in question.
wherewithal to police public lands. Neither does it have the means Thus, the principle of exhaustion of administrative remedies does
to prevent disorders or breaches of peace among the occupants. Its not find application in the case at bar.
power is clearly limited to disposition and alienation and while it
may decide disputes over possession, this is but in aid of making Indeed, the case at bar is easily distinguishable from Pestanas vs.
the proper awards. The ultimate power to resolve conflicts of Dyogi, supra, so heavily relied upon by the trial court. There is no
possession is recognized to be within the legal competence of the doubt that the principle of exhaustion of administrative remedies
civil courts and its purpose is to extend protection to the actual obtained in that case as the plaintiffs-appellants therein, after filing
possessors and occupants with a view to quell social unrest. with the Bureau of Lands a petition for cancellation of free patent
No. V-166124 issued to Josefa Dyogi, filed with the Court of First

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 96 -

Instance of Quezon a complaint to have the identical free patent with. If the reorganization plan results in abolishing the position of
No. V-166124 declared null and void, praying that they be declared the plaintiff and in putting in his place another one, with
the owners of the portions of land possessed by them and/or that substantially the same duties, not to say qualifications, in the name
they be declared as having the preferential right to acquire the said of leadership, it will surely be considered a device to unseat the
land. In the case at bar, the action in court brought by petitioner incumbent and to circumvent the constitutional and statutory
did not seek that the title of private respondent be annulled, which prohibition of removal from office of a civil service officer even
issue was already before the administrative agency, but merely without cause provided by law. Plaintiffs position should not
asked that petitioner be respected in his prior possession of the therefore be deemed abolished by mere implication.
piece of land in controversy.
HELD:
113 U.P. V. RASUL Anent the issue regarding respondent Estrella's failure to exhaust
200 SCRA 685 (IRREPARABLE DAMAGE) all administrative remedies, We hold that this case has special
circumstances that made it fall under the jurisprudentially accepted
FACTS: exceptions to the rule. As the facts show, respondent Dr. Estrella
The principal issue in this case is whether or not respondent Dr. was about to be replaced by the Nomination Committee. He must
Felipe A. Estrella who holds the position of Director of the have believed that airing his protest with the Board of Regents
Philippine General Hospital (PGH) can invoke security of tenure would only be fruitless and that unless he goes to the courts,
during his term of office notwithstanding the abolition of the said irreparable damage or injury on his part will be caused by the
position by the University of the Philippines Board of Regents. implementation of the proposed reorganization.

Estrella was appointed as the director of the PGH. After the new 114 QUISUMBING V. GUMBAN
president of the PGH assumed office, he recommended the 193 SCRA 520 (WHIMSICAL USE OF POWER)
reorganization of the whole UP Manila and PGH, which included
the position of Estrella. The Board of Regents acted on this FACTS:
proposal and formed a nomination committee to replace Estrella. On or before 1979, private respondent Esther B. Yap was appointed
To this, Estrella sought injunction. District Supervisor of the Bureau of Public Schools and assigned to
the District of Glan, South Cotabato (Rollo, p. 2).
The trial court held that aside from some changes and
combinations of functionaries, the structure remains substantially On February 11, 1987, in view of the agitation of teachers and
the same. The leadership element, which the defendant Abueva concerned citizens of Glan, then Secretary Lourdes Quisumbing
wants to impress upon this Court, encourages reorganization and issued a Memorandum Order, directing Regional Director Teofilo
justifies abolition of positions. But the whole reorganization set-up E. Gomez to reassign or transfer Esther B. Yap to another district
under our law cannot or should not have the effect of abolishing (Rollo, p. 24), which was effected by Director Teofilo E. Gomez in
the position of the plaintiff unless legal requirements are complied his Memorandum Order dated February 12, 1987, ordering the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 97 -

transfer of private respondent Esther B. Yap as a public school The rule does not apply where insistence on its observance would
district supervisor from Glan District to Malapatan District and for result in nullification of the claim being asserted; and when the
Crisanto B. Delamin, another public school district supervisor, to rule does not provide a plain, speedy and adequate remedy
assume that of respondent's position at Glan (Rollo p. 25). The
latter in turn issued a Memorandum Order to the principals and 115 ESTUERTE V. CA
headteachers of different public schools at Glan informing them of 193 SCRA 541 (NO REMEDY AVAILABLE)
his assumption of office (Rollo, p. 26).
FACTS:
However, private respondent Esther B. Yap defied the orders of her Tan, a Junior Resident Physician of Corazon Locsin-Montelibano
superiors and she continued to perform the functions of public Memorial Hospital, Bacolod City, without any justifiable reason
school district supervisor of Glan. shouted at, humiliated and insulted the petitioner, Patria Esuerte,
Head Nurse, Medicare Department of the said hospital and as a
HELD: result of the said incident, said petitioner complained to the Chief
After a careful scrutiny of the records, it is to be underscored that of the Hospital, Dr. Teodoro P. Motus, in writing. The other
the appointment of private respondent Yap is simply that of a petitioner, Herminia Jayme, who was one of those who were
District Supervisor of the Bureau of Public Schools which does not present at the time of the incident also sent a letter to the Chief of
indicate a specific station (Rollo, p. 13). As such, she could be the Hospital, Dr. Teodoro Motus, informing the latter of what she
assigned to any station and she is not entitled to stay permanently had witnessed. As a result thereof, private respondent was advised
at any specific station (Bongbong v. Parado, 57 SCRA 623 [1974]; to explain in writing by the Chief of the Hospital, but private
Department of Education Culture and Sports v. Court of Appeals respondent instead of explaining only her side of the incident also
(G.R. 81032, March 22,1990), citing Brillantes v. Guevarra (27 SCRA complained against the petitioners. The Discipline and Grievance
138 [1969]). Committee, Corazon Locsin-Montelibano Memorial Hospital,
conducted a fact-finding investigation and later, the Chief of the
Finally, the lower court did not err in taking cognizance of the case. Hospital, Dr. Teodoro P. Motus, issued a resolution dated
The doctrine of exhaustion of administrative remedies is not a hard November 8, 1978, transmitting the records of the case to the
and fact rule. It has been repeatedly held that the requiring Regional Health Office, No. 6, Jaro, Iloilo City for appropriate
previous exhaustion of administrative remedies is not applicable action. The opposite parties sought the dismissal of the complaint
where the question in dispute is purely a legal one: where the for not exhausting administrative remedies.
controverted act is patently illegal or was performed without
jurisdiction or in excess of jurisdiction; where the respondent is a HELD:
department secretary, whose acts as an alter ego of the President, The second ground raised by petitioners is devoid of merit. The
bear the implied or assumed approval of the latter; where there are alleged need by private respondent Tan to exhaust administrative
circumstances indicating the urgency of judicial intervention; or remedies before filing the complaint for damages does not apply to
where the respondent has acted in utter disregard of due process. the instant case. Private respondent as plaintiff in the civil Case for

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 98 -

damages has no administrative remedy available to her. It is true


that the same incident complained of in the administrative case About the middle of 1973, petitioner-lessee filed a complaint for
filed by petitioners against Tan is the subject of the action for "Injunction with Writ of Possession with Preliminary and
damages filed by Tan against the petitioners in the trial court. Prohibitory Injunction, with Damages" before the Court of First
However, the cause of action in the administrative case is different Instance (now Regional Trial Court) of Zamboanga del Sur, and
from that of the civil case for damages. While the complainant in docketed as Civil Case No. 1389, against herein private respondents
the administrative case may be a private person, it is the Jesus Deypalubos and Daniel Cabdieza. 3 Said court action was
government who is the aggrieved party and no award for damages alleged to have been resorted to after the vehement refusal of the
may be granted in favor of private persons. In the civil action for respondents to obey the orders of the then Philippine Fisheries
damages, the trial court's concern is whether or not damages, Commission and Bureau of Fisheries 4 (now Bureau of Fisheries
personal to the plaintiff, were caused by the acts of the defendants. and Aquatic Resources) to vacate that portion of the area covered
The civil action for damages can proceed notwithstanding the by FLA No. 1902 which they (private respondents) were occupying
pendency of the administrative action. without a fishpond permit and the knowledge and consent of
petitioner.
116 BRETT V. IAC
191 SCRA 687 (PATENTLY ILLEGAL) To the accusation of their unlawful entry, private respondents set
up the defense of good faith at the time of their entry and
FACTS: occupation of the land which they described as forested and
uncultivated.
HELD:
Thereafter, or on 2 June 1974, the Barrio Council of Batu, Slay,
117 DATILES V. SUCALDITO Zamboanga del Sur prepared and submitted to the Bureau of
186 SCRA 704 (NO ORDER) Fisheries a resolution 9 which attests that the 49 hectare
controverted fishpond area was never occupied by the Datiles
FACTS: family (herein petitioner company's predecessor) and that it was
Petitioner Datiles and Company has in its favor a fishpond lease Mr. Deypalubos (herein private co-respondent) who cleared the
agreement 1 whereby the Republic of the Philippines, thru the same and constructed all the improvements therein.
Secretary of Agriculture and Natural Resources, agreed to lease to
the company one hundred seventy five hectares, ninety nine ares HELD:
and fifty-nine centares (175.9959 has.) of public land located in It is a well-settled rule that, for prohibition to lie against an
Batu, Siay, Zamboanga del Sur, for fishpond purposes. Fishpond executive officer, the petitioner must first exhaust administrative
Lease Agreement (FLA) No. 1902 was executed on 16 June 1971, remedies. This doctrine rests upon the assumption that the
with an original period of ten (10) years, later extended to twenty administrative body, board or officer, if given the chance to correct
five (25) years, or up to year 2002. 2 its/his mistake or error, may amend its/his decision on a given

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 99 -

matter. 20 It follows therefore that there has to be some sort of a and the protest ... and not touched upon in Civil Case No. 1389. 21
decision, order or act, more or less final in character, that is ripe for (Emphasis supplied)
review and properly the subject of an appeal to a higher
administrative body or officer, for the principle of exhaustion of The situation, therefore, called for a determination of whether or
administrative remedies to operate. In the present case, however, not the proposed investigation was indeed an over-exercise of
there is no administrative order or act as above described, that can authority by respondent Regional Director as claimed by the
be appealed from. The respondent Regional Director has not petitioner; and if this was resolved in the negative, the investigation
rendered any decision, or made any final finding of any sort, and is would have been allowed to proceed. The respondent court was
in fact just about to conduct an investigation which happens to be called upon to look only into the propriety of the investigation
the very act sought to be prevented. Consequently, administrative regardless of the fact that the investigation could result in the
remedies that must be exhausted, although available, cannot be issuance and/or revocation of fishpond lease permits of the
resorted to. There being urgency in stopping public respondent contending parties.
Guieb's investigation but no plain, speedy and adequate remedy in
the ordinary course of law, petitioner's recourse to the respondent As to the prohibition dictated by PD No. 605, the same pertains to
court for relief by way of a petition for prohibition was proper. the issuance by courts of injunctions or restraining orders against
administrative acts on controversies which involve facts or exercise
We now look into PD No. 605. Its evident purpose is to prevent the of discretion in technical cases, because to allow courts to judge
substitution of judicial judgments for those of public administrative these matters could disturb the smooth functioning of the
officials in disputes involving the disposition or utilization of administrative machinery. But on issues definitely outside of this
natural resources of the country. The decree seeks to leave to dimension and involving questions of law, courts are not prevented
administrative agencies the authority to decide controversies by PD No. 605 from exercising their power to restrain or prohibit
involving licenses, permits, patents or public grants in connection administrative acts.
with natural resources, obviously because of the expertise of such
administrative officials in dealing with such problems. 118 AQUINO V. LUNTOK
184 SCRA 177 (URGENCY)
The issuance of said decree (No. 605) does not, however, mean that
courts cannot exercise jurisdiction where questions of law are FACTS:
involved, as in the case at bar. Here, what was assailed before Reduced to its essential terms, the present petition raises a
respondent judge is Regional Director Guieb's move to conduct an question, apparently of first impression, concerning the validity of a
investigation on Deypalubos' formal protest, the petitioner's theory writ of preliminary injunction issued beyond the 20-day period of
being that to investigate the matter is to go beyond what the the effectivity of a restraining order and during the extended
Director of the Bureau of Fisheries had authorized in his 3 January efficacy of such order. Indeed, in the cases treating on the matter of
1975 Memorandum, which is "to cause an immediate formal TROs, it appears that only the propriety of orders extending the
investigation of those issues involved in the foregoing resolution efficacy of the initial TRO, or the issuance of another TRO after the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 100 -

first had automatically expired after the twentieth day of its On September 24, 1987, likewise upon motion of private
issuance, have been squarely ruled upon, but not the question of respondent, respondent judge issued an order directing petitioners
the validity of a writ of preliminary injunction issued to restrain the to return to private respondent the cash, books and other papers
same act complained of after the lapse of the 20-day period of the they had seized. Thereupon, petitioner Aquino filed a motion for
TRO. the reconsideration of said order, to which private respondent filed
his opposition. Under date of October 5, 1987, petitioners also filed
The records show that petitioners, in their capacity as Provincial their answer to the petition, with an opposition to the application
Auditor of Camarines Sur, State Auditor I of the Provincial for preliminary injunction. 8
Auditor's Office and State Examiner of the Provincial Auditor's
Office, respectively, conducted an audit of private respondent's On October 6, 1987, the last day of the extended effectivity of the
accounts as Municipal Treasurer of Libmanan, Camarines Sur and TRO, private respondent filed another motion for extension of the
found a cash shortage of P274,011.17 under his accountability. 3 efficacy of the restraining order. On the same date, respondent
judge issued an order directing petitioners to refrain from taking
Allegedly pursuant to Section 157, Batas Pambansa Blg. 337, any action against private respondent until the motion is resolved. 9
petitioners seized private respondent's cash, books, papers and
accounts and the latter was suspended from office. As a HELD:
consequence, private respondent requested reinvestigation by the Petitioners asseverate that the questioned writ of preliminary
Commission on Audit. 4 Pending action on the request, private injunction is null and void, it being in reality a fourth restraining
respondent filed a petition dated August 26, 1987 with the trial order issued beyond the 20-day effectivity of the preceeding TRO.
court, presided over by respondent judge, for prohibition with 15 Further, petitioners claim that the injunction was issued in utter
injunction and with a prayer for a restraining order and damages. 5 disregard of the doctrine of exhaustion of administrative remedies,
private respondent having brought the action below pending his
Forthwith, respondent judge issued the TRO of August 27, 1987, request for reinvestigation with the Commission on Audit. 16
enjoining all respondents therein, their agents and/or
representatives, for a period of twenty (20) days from date thereof, On the charge of non-exhaustion of administrative remedies,
to desist from proceeding or taking action against private although it is well-settled in our jurisdiction that, unless otherwise
respondent based on petitioner Yumang's report and from provided by law or required by public interest, before bringing an
exercising such derivative powers and functions. 6 action in or resorting to the courts of justice all remedies of
administrative character affecting or determinative of the
On September 16, 1987, which was the last day of effectivity of the controversy at that level should first be exhausted by the aggrieved
TRO, respondent judge, on motion filed by private respondent, party, 17 this doctrine is not a hard and fast rule. In the present
issued an order extending the efficacy of the TRO for another case, we are inclined to subscribe to private respondent's
period of twenty (20) days, or until October 6, 1987. 7 invocation of the urgency of judicial intervention, as one of the
admitted exceptions to the rule, 18 which likewise would be in

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 101 -

keeping with the court's broad discretion in granting injunctions.


Whatever circumstances warranted the grant of injunction in the FACTS:
court below would be no different than the circumstances which Petitioner, was the Elementary School Principal of Talisay and also
created the urgency, and there can ordinarily be no better judge to the Assistant Principal of the Talisay Barangay High School of the
determine the existence thereof than the trial court itself. Division of Gingoog City. The barangay high school was in deficit
at that time due to the fact that the students could hardly pay for
Thus, it has been said that the court which is to exercise the their monthly tuition fees. Since at that time also, the President of
discretion of granting an injunction is the court of original the Philippines who was earnestly campaining was giving aid in the
jurisdiction and not the appellate court; 19 and a preliminary amount of P 2,000.00 for each barrio, the barrio council through
injunction will usually be granted when it is made to appear that proper resolutions alloted the amount of P 840.00 to cover up for
there is a substantial controversy between the parties and one of the salaries of the high school teachers, with the honest thought in
them is committing an act or threatening the immediate mind that the barrio high school was a barrio project and as such
commission of an act that will cause irreparable injury or destroy therefore, was entitled to its share of the RICD fund in question.
the status quo of the controversy before a full hearing can be had The only part that the herein petitioner played was his being
on the merits of the case. The only limitations to such discretion authorized by the said barrio council to withdraw the above amount
would be that it must have been exercised upon the grounds and in and which was subsequently deposited in the City Treasurer's
the manner provided by law, 20 an inquiry into which is precisely Office in the name of the Talisay Barrio High School. That was a
part of the subject of our immediately succeeding discussion on the grave error on the part of the herein petitioner as it involves the
matter of the status of the injunction in controversy. very intricacies in the disbursement of government funds and of its
technicalities. Thus, the herein petitioner, together with the barrio
Contrary to petitioners' position, we are disposed to sustain the captain, were charged of the violation of Republic Act 3019, and
validity of the writ of preliminary injunction in question. A both were convicted to suffer a sentence of one year and
temporary restraining order, while being in effect a species of disqualification to hold public office. The herein petitioner
injunction, is in some respects to be distinguished therefrom. It is appealed his case to the Court of appeals, Manila. The Court of
an interlocutory order or writ issued by the court as a restraint on appeals modified the decision by eliminating the subsidiary
the defendant until the propriety of granting a preliminary imprisonment in case of insolvency in the payment of one-half of
injunction can be determined, thus going no further in its the amount being involved. The herein petitioner, being financially
operation than to preserve the status quo until that determination. battered, could no longer hire a lawyer to proceed to the highest
When such determination is made, the whole force of the order court of the land.
ceases by its own limitations and become functus officio, having by
then served its purpose. Finally, the herein petitioner was granted an ABSOLUTE
PARDON by the President of the Republic of the Philippines,
119 SABELLO V. DECS, restoring him to 'full civil and political rights.' With this instrument
180 SCRA 623 (POVERTY) on hand, the herein petitioner applied for reinstatement to the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 102 -

government service, only to be reinstated to the wrong position of a part of the punishment prescribed under the penal code and that
mere classroom teacher and not to his former position as pardon frees the individual from all the penalties and legal
Elementary School Principal I. disabilities and restores him to all his civil rights. Although such
pardon restores his eligibility to a public office it does not entitle
HELD: him to automatic reinstatement. He should apply for
This is not a hypothetical or abstract dispute. It is not academic or reappointment to said office.
moot for, to our mind, there is a definite and concrete controversy
touching the legal relations of parties having adverse legal relations. In the present case after his absolute pardon, petitioner was
This is a real and substantial controversy admitting of specific relief reinstated to the service as a classroom teacher by the Department
through a court decree that is conclusive in character. The case of Education, Culture and Sports.
does not call for a mere opinion or advise, but for affirmative relief .
As there are no circumstances that would warrant the diminution
As a general rule, the question of whether or not petitioner should in his rank, justice and equity dictate that he be returned to his
be reappointed to his former position is a matter of discretion of former position of Elementary School Principal I and not to that of
the appointing authority, but under the circumstances of this case, a mere classroom teacher.
if the petitioner had been unfairly deprived of' what is rightfully
his, the discretion is qualified by the requirements of giving justice However, the Court cannot grant his prayer for backwages from
to the petitioner. It is no longer a matter of discretion on the part of September 1, 1971 to November 23, 1982 since in Monsanto 4 this
the appointing power, but discretion tempered with fairness and Court said he is not entitled to automatic reinstatement. Petitioner
justice. was lawfully separated from the government service upon his
conviction for an offense. Thus, although his reinstatement had
As to the argument that the Department of Education, Culture and been duly authorized, it did not thereby entitle him to backwages.
Sports cannot be sued, the only answer is that its officials can be Such right is afforded only to those who have been illegally
sued for alleged grave errors in their official acts. Again, We ignore dismissed and were thus ordered reinstated or to those otherwise
technicality by considering this a suit against the officials of this acquitted of the charge against them.
government agency.
In the same light, the Court cannot decree that his government
Taking into consideration that this petition is filed by a non-lawyer, service be made continuous from September 10, 1948 to the
who claims that poverty denies him the services of a lawyer, We present when it is not. At any rate when he reaches the compulsory
also set aside the requirement of exhaustion of administrative age of retirement, he shall get the appropriate retirement benefits
remedies and resolved to go direct to the merits of the petition. as an Elementary School Principal I and not as a mere classroom
teacher.
In Monsanto vs. Factoran, Jr., 3 this Court held that the absolute
disqualification from office or ineligibility from public office forms 120 ROCAMORA V. RTC

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 103 -

167 SCRA 615 (USELESS) illegal, amounting to lack of jurisdiction; 17 where there is
unreasonable delay or official inaction that will irretrievably
FACTS: prejudice the complainant; 18 where the amount involved is
In order to impress the Pope, petitioners sought the widening of relatively small so as to make the rule impractical and oppressive;
the road where the Pope would pass. This entailed however the 19 and where the question involved is purely legal and will
expropriation of private respondent’s properties. ultimately have to be decided anyway by the courts of justice. 20 At
least two of these exceptions are applicable to the case at bar.
HELD:
On the second ground, we affirm the salutary rule that decisions of In the first place, it appears that the administrative officers have sat
administrative authorities must first be appealed to their superiors on this case for as long as nine months, during which as many as
in the executive department before resort to judicial review may be eight endorsements were made from office to office in an
permitted; otherwise, the case may be dismissed for lack of a cause apparently endless discussion and denial of the complainants'
of action. 15 This is based on sound public policy and practical claims for compensation. 21 Even the supposed adjustment of the
grounds. One reason is that the administrative superiors, if given a appraisals to be made by the Ministry of Public Highways was still
chance, can and will correct the mistakes of their subordinates, pending after the complaint was filed and when the defendants
thus rendering judicial intervention unnecessary. Another is that submitted their answer. 22 The matter was apparently hibernating
administrative authorities are presumed to be experts in their in the doldrums of bureaucratic indecision and inaction. In the
respective fields of specialization and their decisions should as a meantime, the complainants remained unpaid despite their
rule not be disturbed by the courts of justice, which cannot claim repeated demands.
similar knowledgeability. A third justification is that these decisions
are usually reviewable only in the special civil actions of certiorari, In the second place, the other issue raised was a question of law, to
prohibition and mandamus, which are not accepted except only wit, the applicable criterion in the determination of the
where there is no plain, speedy and adequate remedy available to compensation to be paid the plaintiffs for the loss they had
the petitioner. No less important is the consideration that by sustained. More specifically, the legal question presented was
withholding action until the administrative remedies have been whether or not P.D. 76 should dictate the amount of the
exhausted, the judiciary will be observing the doctrine of separation compensation to be paid the owners as against the price they
of powers and according deference to the acts of a coordinate negotiated with the Ministry of Public Highways.
department of the government.
121 PALMA V. DE LA PAZ
But the doctrine of exhaustion of administrative remedies is not an 160 SCRA 751 (SUBSTANTIAL COMPLIANCE)
inflexible rule. In fact, it yields to many accepted exceptions. As we
have noted in a number of cases, exhaustion is not necessary where FACTS:
inter alia there is estoppel on the part of the party invoking the
doctrine; 16 where the challenged administrative act is patently HELD:

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010
NOTES: ADMINISTRATIVE LAW
PAGE - 104 -

The doctrine on exhaustion of administrative remedies does not controversy revolves around the interpretation of a contractual
preclude petitioner from seeking judicial relief This rule is not a stipulation. 2
hard and fast one but admits of exceptions among which are that (1)
the question in dispute is "purely a legal one" and (2) the We agree with the Appellate Court that the stipulation in the deed
controverted act is 'patently illegal" (Carino vs. ACCFA, No. L- of mortgage that the mortgagee PINOY "is the one to transplant"
19808, September 29,1966,18 SCRA 183). The questions involved on the Landholding is tantamount to a prohibition against the
here are purely legal. The subject Hospital Orders violated institution of a tenant. Although transplanting is merely one of the
petitioner's constitutional right to security of in tenure and were, phases of farming and cultivation, it is evident that what was really
therefore, "patently illegal." Judicial intervention was called for to meant was that the mortgagee himself was to cultivate the
enjoin the implementation of the controverted acts. Landholding personally. That such was the intendment is shown by
the fact that since 1957 when the verbal mortgage was constituted,
There was substantial compliance by petitioner with the it was the mortgagee, PINOY, who had been cultivating the
requirement of exhaustion of administrative remedies since she had Landholding personally although through hired laborers, one of
filed a letter-protest With the respondent Secretary of Health, with whom was PETITIONER. The requirement of personal cultivation
copies furnished the Commissioner of Civil Service, and the was documented in 1975.
Chairman of the Government Reorganization Commission, but the
same remained unacted upon and proved an inadequate remedy. PETITIONER's alleged institution as tenant by PINOY in 1973,
Besides, an action for quo warranto must be filed within one year and as agricultural lessee in 1976, was in violation of the mortgage
after the cause of action accrues (Sec. 16, Rule 66, Rules of Court), contract, aside from the fact that the institution as agricultural
and the pendency of administrative remedies does not operate to lessee was apparently made in bad faith inasmuch as prior to the
suspend the running of the one-year period (Cornejo vs. Secretary execution of the agricultural lease contract on August 18, 1976, and
of Justice L-32818, June 24, 1974, 57 SCRA 663). its registration on August 24, 1976, SALAMANQUE had already
notified PINOY of his (SALAMANQUE's) intention to redeem the
122 ADRISOLA V. CA Landholding. The institution of tenancy having been prohibited,
133 SCRA 245 (INTERPRETATION OF CONTRACT) PINOY, as the mortgagee, could not be considered as an
"agricultural lessor" or a "legal possessor" within the meaning of
FACTS: Section 10 3 and 166(3) 4 of the Code of Agrarian Reforms (RA No.
3844) such that by reason of the redemption, SALAMANQUE
HELD: would be subrogated to the rights and substituted to the obligations
We sustain the Appellate Court on the second ground inasmuch as of the agricultural lessor. It will have to be held, therefore, that the
the requirement that no recourse to Courts can be had until all institution of respondent Sabio as the tenant by the landowner,
administrative remedies have been exhausted, is not absolute. It is SALAMANQUE, was valid as within the latter's right.
subject to certain exceptions. It is not applicable where the
question involved is essentially judicial, as in this case where the

MA. ANGELA LEONOR C. AGUINALDO


ATENEO LAW 2D BATCH 2010