Chapter 1

General Considerations

Nature

Administrative Law– that branch of modern law under which the executive department of the government,
acting in a quasi-legislative or quasi-judicial capacity, interferes with the conduct of the individual for the
purpose of promoting the well-being of the community. Administrative law is a recent development,
being a consequence of the ever increasing complexities of society and the proliferation of problems of
government that cannot readily or effectively be addressed by the public agencies or solved by other
disciplines of public law. It was felt that the legislative and judicial departments no longer had either the time
or the needed expertise to attend to these new problems. Thus, the obvious solution was delegation of
power.

Two major powers of the administrative agency:

Quasi-legislative authority– or rule making power

Quasi-judicial power – or adjudicatory function

Sources of Administrative Law

Administrative law is derived from four sources or is of four (4) kinds:

1. Constitution or statutory enactments

– e.g. Social Security Act which established the Social Security Commission.

2. Decisions of courts interpreting the charters of administrative bodies

3. Rules and regulations issued by the administrative bodies

– e.g. Omnibus Rules Implementing the Labor Code.

Determinations and orders of the administrative bodies in the settlement of controversies.

Administration

Administration is understood in two senses:

institution– administration as the aggregate of individuals in whose hands the reins of government are for the
time being.

function– administration as the actual running of the government by the executive authorities through the
enforcement of laws and implementation of policies. Government (as distinguished from administration) is the
agency or instrumentality through which the will of the State is formulated, expressed and realized.

Administration Distinguished from Law

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Law -is impersonal command provided with sanctions to be applied in case of violation, while

Administration-is preventive rather punitive and is accepted to be more personal than law. Law maintains a
watchful eye on those who would violate its order. While administration on the other hand seeks to spare
individuals from punishments of the law by persuading him to observe its commands.

Chapter 2

Administrative Agencies

Agency-any department,bureau, office, commission, authority of the National Government authorized by

law/executive order to make rules, issue license/grant rights.

Administrative agency– a body endowed with quasi-legislative and quasi-judicial powers for the purpose of
enabling it to carry out the laws entrusted to it for enforcement or execution. Administrative agency may be
regarded as an arm of the legislature insofar as it is authorize to promulgate rules. It may also be loosely
considered a court because it performs functions of a particular judicial character, as when it decides factual
and sometimes even legal questions as an incident of its general power of regulation.

Creation and Abolition

The administrative body may be created by the Constitution or by a Statute.If created by the Constitution itself,
the administrative body can be altered or abolished only by Constitution. But where the body was created only
by statute, the legislature that breathed life into it can amend or even repeal its charter, thereby resulting in its
abolition which is justified if made in good faith.

Chapter 3

Powers of Administrative Agencies

Quasi-Legislative Power – the authority delegated by the law-making body to the administrative body to adopt
rules and regulations intended to carry out the provisions of a law and implement legislative policy.

Permits the body to promulgate rules intended to carry out the provisions of particular laws.

ᵜ [Rule of the Future]."Little Laws"with same legal force.

ᵜ Rules & Regulations issued by administrative/executive officers, statutes express policies, purposes,
objectives, remedies & sanctions by legislature in general terms.

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ᵜ Administrative Rule=Administrative Code of 1987"Any agency statement of general applicability
implements/interprets law, fixes &describes procedure including regulations. Can be delegated.

Legislative Power- What the law maybe is exclusive &can't be delegated.

Test of delegation - legislative power in general are the completeness test and sufficient standard test.

Permissible delegation itself is valid when:

(a)Complete in itself policy be executed, carried out/implemented by the delegate

(b)Fixes a standard determinate/determinable conform functions.

Quasi-Judicial Power– Power of adjudication/the power of the administrative authorities to make

determinations of facts in the performance of their official duties and to apply the law as they construe it to the
facts so found.

To resolve judicial, factual & sometimes legal questions.[Rule of the past]

Main function -is the enforcement of law & focuses on the question of law

Enabling Power-permit the doing of an act w/c law undertakes to regulate & unlawful without government
approval.

ᵜ Example: issuance of license to engage in particular business/occupation, like operation of liquor.

Directing Power-Doing/performance of particular acts to ensure compliance with law & corrective
purposes

ᵜ Example: Dept. of Transportation may call on common carriers to install specific safety devices to prevent
accidents.

Dispensing Power- allows admin to relax general operation of law/exempt from performance of general
duty.

Summary Power-the use by admin authorities of force upon persons/things w/o necessity of judicial
warrant.

ᵜ Example:padlocking by the mayor's office of filthy restaurants/obscene movie houses.Shooting down mad
dogs.

Examining Power-enables to inspect records & premises/activities of the person

Other powers: issuance of subpoena, swearing in witness, interrogation of witness, calling for books, papers &
records, Requiring written answers, inspection of premises.

Duties of Admin body -are generally considered Discretionary especially in the interpretation/construction
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& enforcement of the law. Merely Ministerial. No judgment allowed in their exercise.

Chapter 4

The Quasi-Legislative Power

It has already been remarked that the rule-making power of the administrative body is intended to enable it to
implement the policy of the law and to provide for the more effective enforcement of its provisions. Through the
exercise of this power of subordinate legislation, it is possible for the administrative body to transmit the “active
power of the state from its source to the point of application,” that is, apply the law and so fulfill the mandate of
the legislature.

[2]Kinds of Administrative Regulations

(a)Legislative 2– the administrative agency is acting in a legislative capacity, supplementing the statute,
filling in the details, or “making the law”, and usually acting pursuant to a specific delegation of legislative power.

(b)Interpretative– are those which purport to do no more than interpret the statute being administered, to
say what it means. They constitute the administrator's construction of a statute. The interpretative regulation is
issued by the administrative body as an incident to its power to enforce the law and is intended merely to clarify
its provisions for proper observance by the people. It is an elementary rule in administrative law that
Administrative regulations and policies enacted by administrative bodies to interpret which they are entrusted to
enforce, have the force of law,are entitled to great respect, and have in their favor a presumption of legality. By
contrast, the legislative regulation is issued by the administrative body pursuant to a valid delegation of
legislative power and is intended to have the binding the force and effect of a law enacted by the legislature
itself.

[2]Classification of Legislative Regulation

(a) Supplementary – intended to fill in the details of the law and “to make explicit what is only general.”

(b) Contingent – issued upon the happening of a certain contingency which theTR administrative body is
given the discretion to determine or to ascertain some circumstances and on the basis thereof may enforce
or suspend the operation of a law.

[4]Requisites of Administrative Regulation

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 (a) Its promulgation must be authorized by the legislature;

(b) It must be within the scope of the authority given by the legislature;

(c) It must be promulgated in accordance with the prescribed procedure;

(d) It must be reasonable.

First Requisite: Promulgation Must Be Authorized by the Legislature

Authority to promulgate the regulation is usually conferred by the Charter itself of the administrative body or
by the law it is supposed to enforce. When Congress authorizes promulgation of administra8tive rules and
regulations to implement given legislation, all that is required is that the regulation be not in contravention with it,
but to conform to the standards that the law prescribes.

Second Requisite: Regulation Must Be Within the Scope of the Authority Given by the Legislature

a valid authorization, it is still necessary that the regulation promulgated must not be ultra vires or beyond the
authority conferred.

Third Requisite: Regulation Must Be Promulgated in Accordance with the Prescribed Procedure

As in the enactment of laws, the promulgation of administrative regulations of general application does not
require previous notice and hearing, the only exception being where the legislature itself requires it .In the
absence of such a requirement, the administrative body can promulgate the regulation in its exclusive
lrdiscretion. But where the regulation is in effect a settlement of a controversy between specific parties, it is
considered an administrative adjudication and so will require notice and hearing As for publication, the
applicable rule is now found in Executive Order No. 200 which provides that laws “shall take effect after fifteen
(15) days following the completion of their publication either in the Official Gazette or in a newspaper of general
circulation in the Philippines, unless it is otherwise provided.” Interpretative regulations and those merely
internal in nature, that is, regulating only the personnel of the administrative agency and not the public, need not
be published.

Publication must be in full or it is no publication at all since its purpose is to inform the public of the contents
of the law. The Supreme Court, it would seem, requires publication of the administrative regulation only if it is of
general application and penal in nature.

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Fourth Requisite: Regulation Must Be Reasonable

Like statutes, administrative regulations promulgated there under must not be unreasonable or arbitrary as
to violate due process.

Penal Regulations

The power to define and punish crime is exclusively legislative and may not be delegated to the
administrative authorities. While administrative regulations may have the force and effect of law, their violation
cannot give rise to criminal prosecution unless the legislature makes such violation punishable and imposes the
corresponding sanctions.

[3]Special requisites of a valid administrative regulation with a penal sanction:

The law itself must make violation of the administrative regulation punishable;

The law itself must impose and specify the penalty for the violation of the regulation;

The regulation must be published.

Construction and Interpretation-Regulation should be read in harmony with the statute and not in violation of
the authority conferred on the administrative authorities. The administrative regulation that contravenes the
statute is, of course, invalid.

Enforcement-It is established that the power to promulgate administrative regulations carries with it the implied
power to enforce them. This may be effected through judicial action or through sanctions that the statute itself
may allow the administrative body to impose.

Amendment or Repeal-Like the statute, the administrative regulation promulgated there under is subject to
amendment or repeal by the authorities that promulgated them in the first place. Of course, it may be changed
directly by the legislature.

Chapter 5

The Quasi-Judicial Power

Quasi-judicial power – is the power of the administrative agency to determine questions of fact to which the
legislative policy is to apply, in accordance with the standards laid down by the law itself. The proper exercise

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of the quasi-judicial power requires compliance with two conditions, to wit:

Jurisdiction must be properly acquired by the administrative body

Due process must be observed in the conduct of the proceedings

A. Jurisdiction

Jurisdiction – may be simply defined as the competence of an office or body to act on a given matter or decide
a certain question. Without jurisdiction, the determination made by the administrative bodies are absolutely
null and without any legal effect whatsoever. It is the legislature that has the power to confer jurisdiction
upon the administrative body and so limit or expand its authority. It can be said that each administrative body
has its own peculiar jurisdiction as conferred upon it by the specific provisions of its charter. The law may allow
some administrative bodies to award certain kinds of damages while denying the same power, for no
apparent reason, to other administrative bodies.

For example, the SEC and NLRC are allowed to award damages virtually to the same extent as a court of
justice. Yet similar authority has not been conferred by its charter to NTC. It is a well-settled principle that unless
expressly empowered, administrative agencies are bereft of quasi-judicial power.

1. Rules of Procedure

Where an administrative body is expressly granted the power of adjudication, it is deemed also vested with
the implied power to prescribe the rules to be observed in the conduct of its proceedings. But to be valid, the
rules must not violate fundamental rights or encroach upon constitutional prerogatives.

2. The Subpoena Power

The power to issue subpoena and subpoena duces tecum is not inherent in administrative bodies. It is
settled that administrative bodies may summon witnesses and require the production of evidence only when
duly allowed by law, and always only in connection with the matter they are authorized to investigate. Unless
otherwise provided by law, the agency may, in case of disobedience, invoke the aid or Regional Trial Court
within whose jurisdiction the contested case falls. The Court may punish customary or refusal as contempt. The
Supreme Court distinguished between the power to “investigate” and the power to “adjudicate:“ The purpose of
investigation, of course, is to discover, to find out, to learn, obtain information. Nowhere included or intimated is
the notion of settling, deciding or resolving a controversy involve in the facts inquired into by application of the
law xx. In the legal sense, “adjudicate” means to settle in the exercise of judicial authority x x. “Adjudge” x
x implies a judicial determination of a fact, and the entry of judgment.”

3. The Contempt Power

Like the subpoena power, the power to punish for contempt is essentially judicial and cannot be claimed as
an inherent right by the administrative body. To be validly exercised, it must be expressly conferred upon the
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body and, additionally, must be used only in connection with its quasi-judicial as distinguished from its purely
administrative or routinary functions. As a rule, where, say, a subpoena of the administrative body is
disregarded, the person summoned may not be directly discipline by that body. The proper remedy id for the
administrative body to seek assistance of the courts of justice for the enforcement of its order. The power to
hold in contempt must be exercised not on the vindictive, but on the preservative principle.

B. Notice and Hearing

The right to notice and hearing is essential to due process and its non-observance will as a rule invalidate
the administrative proceedings. Persons are entitled to be notified of any pending case affecting their interests
so that, if they are minded, they may claim the right to appear therein and present their side or refute the
position of opposing parties. Nevertheless, there are instances when notice and hearing can validly be
omitted. Among the justifications for such omissions are the urgency of immediate action (which does not
preclude the enjoyment of the right at a later time without prejudice to the person affected) and the fact that the
right had previously been offered but not claimed.

1. Administrative Due Process

While administrative determinations of contested case are by their nature judicial, there is no requirement for
strict adherence to technical rules as are observed in truly judicial proceedings. It is a general rule that they are
unrestricted by the technical or formal rules of procedure which govern trials before a court. This rule is applied
to questions of evidence, pleading and other matters. Nevertheless, it is essential that due process must be
observed, for the requirements of fair play are not applicable to judicial proceedings only.

[7]Cardinal rights or principles to be observed in administrative proceedings:

a. the first of these rights is the right to a hearing;

b. the tribunal must consider the evidence presented;

c. the tribunal must have something to support its decision;

d. evidence must be substantial evidence–relevant evidence that

a reasonable mind may accept as adequate to support a conclusion

e. the decision must be rendered on the evidence presented at the

hearing, or at least contained in the record and disclosed to the parties;

f. the court must act on its or their own independent consideration of the law and facts of controversy,
and not simply accept the views of a subordinate in arriving at a decision;

g. the court should render its decision in such a manner that the
parties to the proceeding can know the various issues involved, and the reasons for the decisions rendered It is
basic to due process that the tribunal considering the administrative question be impartial, to ensure a fair
decision. The law does not require another notice and hearing for a review of the decision of the board. In M.F.
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Violago Oiler Tank Trucks vs. NLRC, there was no denial of due process where the petitioners received notice
of the scheduled investigation the day before said date of the hearing or investigation but failed
to present evidence. On the other hand, there was clearly such a denial where it appears that a decision
rendered against a person who was not a party to or even notified of the proceedings taken before a labor
arbiter.

C. Administrative Appeals and review

Unless otherwise provided by law or executive order, an appeal from a final decision of the administrative
agency may be taken to the department head, whose decision may further be brought to the regular courts of
justice, in accordance with the procedure specified by law.

D. Enforcement of Decision

In the absence of any statute providing for the enforcement of an administrative determination, the same
cannot be enforced except possibly by appeal to the force of public opinion. Usually, however, the administrative
body is allowed certain sanctions that it may impose directly for the enforcement of its own decisions, i.e.
revocation of or refusal to renew licenses, destruction of unlawful articles, summary closure of stores, refusal to
grant clearances, issuance of cease and desist orders, detention and deportation of aliens, and imposition of
fines. Significantly, many administrative bodies, such as the SEC and the NLRC, have been vested with
authority to grant provisional reliefs, such as writs of preliminary attachment or injunction, intended to ensure the
enforcement of their adjudications. It is established that administrative agencies who have not been conferred
the power to enforce their quasi-judicial decisions may invoke court action for the purpose.

E. Res Judicata

The general rule is that an administrative decision is not considered res judicata so as to preclude its
subsequent reconsideration or revocation. Decisions of the previous incumbents of the administrative body may
be modified or reversed by their successors in the exercise of their own powers of adjudication.

Where the administrative decision has been affirmed by a court decision, the doctrine of res judicata is
applicable. The effect of res judicata attaches to the judgment of the reviewing court rather than to the
administrative judgment. This rule has however been modified in this jurisdiction. It is now well-settled in our
jurisprudence that the decisions and orders of administrative agencies, rendered pursuant to their quasi-judicial
authority, have upon their finality, the force and binding effect of a final judgment within the purview of the
doctrine of res judicata.

This principle is, however, not applicable to all administrative proceedings, such proceedings that are
non-litigious and summary in nature without regard to legal technicalities obtaining in courts of law.

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 Chapter 6

Judicial Review

General Rules

An administrative decision may be appealed to the courts of justice only if the Constitution or the law permits it
or if the question to be reviewed is a question of law. However, jurisprudence is replete with cases where the
Supreme Court has applied the exceptions rather than the rule. In the case of the constitutional commission, i.e.,
the Commission on Elections, the Commission on Audit, and the Civil Service Commission, it is provided that
“any decision order or ruling of each Commission may be brought to the Supreme Court on certiorari by the
aggrieved party within30 days from receipt of a copy thereof.” On the basis of Sec. 16 of the Interim Rules and
Guideline implementing Sec. 9 (3) of BP Blg. 129, the Court of Appeals may “review final decisions, orders,
awards or resolutions or regional trial courts and of all quasi-judicial bodies, except the Commission on
Elections, the Commission on Audit, the Sandiganbayan, and decisions issued under the Labor Code of the
Philippines and by the Central Board of Assessment Appeals.” Other appeals are prescribed by special laws,
such as RA No. 1125,providing for appeal to the Court of Tax Appeals of any decision rendered by the
Commissioner of Internal Revenue, the Commissioner of Customs, or any provincial or city board of
assessment appeals.

Methods of review

The methods of judicial review are prescribed by the Constitution, statutes or the Rules of the Court. These
methods may be specific or general.

It is provided in RA No. 5434 that an appeal from a final award, order or decisions of the Patent Office shall be
taken by filing with said body and with the Court of Appeals a notice of appeal within 15 days from notice of such
award, order or ruling, copies being served on all interested parties. The Administrative Code generally provides
that an appeal from an agency decision shall be perfected by filing with the agency within 15days from receipt of
a copy thereof a notice of appeal, and with their viewing court a petition for review of the order.

Copies of the petition shall be served upon the agency and all parties of record. The petition shall contain a
statement of the issues involved and the grounds relied upon for the review, and shall be accompanied with a
true copy of the order appealed from, together with copies of such material portions of the records as are
referred to therein and other supporting papers. The Supreme Court instructed certain universally accepted
axioms governing judicial review through the extraordinary actions of certiorari or prohibition of determinations
of administrative officers or agencies:

First, before said actions may be entertained, it must be shown that all the administrative remedies prescribed
by law or ordinance have been exhausted; and, second, that the administrative decision may properly be
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annulled or set aside only upon a clear showing that the administrative official or tribunal has acted without or in
excess of jurisdiction, or with a grave abuse of discretion.

Doctrine of Primary Jurisdiction or Prior Resort

There are two doctrines that must be considered in connection with the judicial review of
administrative decisions:

doctrine of primary jurisdiction or prior resort; and

the doctrine of exhaustion of administrative remedies.

The doctrine of primary jurisdiction simply calls for the determination of administrative questions, which
ordinarily questions of fact, by administrative agencies rather courts of justice. If the case is such that its
determination requires the expertise, specialized skills and knowledge of the proper administrative bodies
because technical matters or intricate questions of facts are involved, relief must first be obtained in an
administrative proceeding before a remedy will be supplied by the courts even though the matter is within the
proper jurisdiction of the court.

Doctrine of Exhaustion of Administrative Remedies

Under the doctrine of exhaustion of administrative remedies, an administrative decision must first be
appealed to the administrative superior up to the highest level before it may be elevated to a court of justice for
review then relief must first be obtained in an administrative proceeding before a remedy will be supplied by the
courts even though the matter is within the proper jurisdiction of the court Doctrine of Exhaustion of
Administrative Remedies Under the doctrine of exhaustion of administrative remedies, an administrative
decision must first be appealed to the administrative superior up to the highest level before it may be elevated to
a court of justice for review.

A. Reasons

(1)The administrative superiors, if given the opportunity, can correct the error committed by their
subordinates;

(2)Courts should as much as possible refrain from disturbing the findings of administrative bodies in
deference to the doctrine of separation of powers;

(3)On practical grounds, it is best that the courts should not be saddled with the review of administrative
cases;

(4)Judicial review of administrative cases is usually effected through the special civil actions of certiorari,
mandamus and prohibition, which are available only if there is no other plain, speedy and adequate remedy.

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B. Exceptions

(1)When the question raised is purely legal (question of law is involved);

(2)When the administrative body is estoppel;

(3)When the act complained of is patently illegal;

(4)When there is urgent need for judicial intervention;

(5)When the claim involved is small

(6)When irreparable damage will be suffered;

(7)When there is no other plain, speedy and adequate remedy;

(8)When strong public interest is involved;

(9)When the subject of the controversy is private land;

In quo warranto proceedings

C. Appeal

to the President Of special interest is the question of whether or not a decision of the cabinet member has
to be appealed first to the President before it may be brought to a court of justice. Jurisprudence on this matter
is rather indecisive. In the early case of Demaisip vs. Court of Appeals, the Court held that appeal to the
President was not necessary because the Cabinet member was after all his alter ego and, under the doctrine of
qualified political agency, the acts of the secretary were the acts of the President. This view was abandoned in
Calo vs. Fuertes, where it was held that appeal to the President was the final step in the administrative process
and therefore a condition precedent to appeal to the courts. In Bartulata vs. Peralta, however, the
court reinstated the Demaisip doctrine, again on the basis of alter ego justification. Tan vs. Director of Forestry,
thereafter revived Calo and again required appeal to the President as a prerequisite to an appeal of a Cabinet
member's decision to the courts of Justice.

D. Effect of Non-compliance

The failure to exhaust administrative remedies does not affect the jurisdiction of the court and merely
results in the lack of a cause of action which may be invoked in a motion to dismiss. If this ground to dismiss the
court action is not properly or reasonably invoked, the court may proceed to hear the case. As previously noted,
the court has the discretion to require the observance of the doctrine of exhaustion of administrative remedies
and may, if it sees fit, dispense with it and proceed with the disposition of the case.

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Questions Reviewable

Two kinds of questions are reviewable by the courts of justice, to wit:

the question of fact and the question of law . On the question of fact, review of the administrative decision lies in
the discretion of the legislature, which may or may not permit it as it sees fit. But when it comes to the question
of law , the administrative decision may be appealed to the courts of justice independently of legislative
permission or even against legislative prohibition. The reason is that the judiciary cannot be deprived of its
inherent power to review all decisions on questions of law, whether made initially by lower courts and more so
by an administrative body.

A. Questions of fact

Even if allowed to review administrative decisions on questions of fact, courts of justice generally defer to
such decisions and will decline to disturb them except only where there is a clear showing of arbitrariness or
grave abuse of discretion.

The Supreme Court ruled in Osias Academy vs. DOLE that “findings of administrative agencies which have
acquired expertise because their jurisdiction is confined to specific matters are generally accorded not only
respect but finality.”

B. Questions of Law

Administrative bodies may be allowed to resolve questions of law in the exercise of their quasi-judicial
function as an incident of their primary power of regulation.

However as a rule, it is only the judicial tribunal that can interpret and decide the question of law with finality.

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