1 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

UASI IUDICIAL CWLk

1LCDCkC C SAN1IAGC Ik M|nor kepresented by h|s Mother Mrs
Ange||ta C Sant|ago peLlLlonerappellanL
vs
MISS IUANI1A 8AU1IS1A kCSALINDA ALAS kL8LCCA MA1UGAS MILkI1A
INAMAC kCMLC AGUS1IN AIDA CAMINC LUNA SAkMAGC AUkCkA
LCkLNA SCLLDAD IkANCISCC and Mk ILCk MAkCLLCrespondenLs
appellees
lacLs Lhe peLlLloner 1eodoro C SanLlago a mlnor Lhru hls moLher soughL
lnvalldaLlon of of Lhe ranklng of honor sLudenLs Lhrough flllng a clvll case
before Lhe courL of flrsL lnsLance of coLabaLo agalnsL Lhe agalnsL Lhe above
named commlLLee members along wlLh Lhe ulsLrlcL Supervlsor and Lhe
Academlc Supervlsor of Lhe place 1he correspondlng complalnL conLalned
Lhe allegaLlons as follows LhaL slnce grades one Lo slx Lhe sLudenLs closely
conLendlng for class honors were Socorro Medlna 1eodoro SanLlago !r
uolores uallcan and aLrlcla LlngaL
Socorro Medlna obLalned flrsL honor Lhrlce (grades l v and vl) once second
honor (grade lv) and Lwlce Lhlrd place (grades ll and lll)
1eodoro SanLlago !r obLalned flrsL place once (grade lv) four Llmes second
place (grades l ll lll and v) and once Lhlrd place (grade vl)
uolores uallcan obLalned Lwlce flrsL place (grades ll lll) once Lhlrd place
(grade l)
aLrlcla LlngaL once Lhlrd place (grade v) and once second place (grade vl)
1haL as now ranked ln Lhe graduaLlon LlngaL ls glven second place whlle
1eodoro SanLlago !r ls glven Lhe Lhlrd place only 1hls ls Lhe ranklng now
dlspuLed by peLlLloner 1eodoro SanLlago !r LhaL Socorro Medlna was
LuLored ln Lhe summer of 1964 by Mrs 8osallnda Alpas who became her
Lngllsh Leacher ln Lhe slxLh grade LhaL as such Mrs Alpas un[usLly favored
Socorro agalnsL her rlvalsLhaL Lhe Leachers who composed Lhe commlLLee on
honor sLudenLs are all grade slx Leachers whlle Lhe Servlce Manual lor
1eachers provldes LhaL Lhe commlLLee shall be composed of Lhe Leachers
from Lhe flfLh and slxLh gradesLhaL Lhere are dlrecL and clrcumsLanLlal
evldence showlng Lhe change of raLlngs of Socorro Medlna and aLrlcla
LlngaL from 80 Lo 83 and Lhe lnLenLlon Lo [unk peLlLloner Lo a lower
rankLhaL Lhe glvlng of dlsLrlcL examlnaLlons upon whlch raLlngs were parLly
based were noL advlsable alleges LhaL Lhe Leachers raLed Socorro Medlna a
perfecL pupll whlch ls unnaLural LhaL on Lhe flrsL grade cerLlflcaLe of Lhe
peLlLloner Lhe word llrsL lace was erased and changed Lo Second lace
alleges LhaL peLlLloner personally appealed Lo Lhe school auLhorlLles buL Lhey
only passed Lhe buck Lo each oLher
lssues WCn Lhe alleged causes acLlon ls sufflclenL for a speclal revlew on
cerLlorarl
WCn Lhe peLloners have formally avalled of Lhe admlnlsLraLlve remedles
provlded for by law
WCn Lhere has been grave abuse of dlscreLlon on Lhe parL of Lhe
respondenLs
Peld
8ule 63 SecLlon 1 of Lhe 8ules of CourL provldes
SecLlon 1 eLlLlon for cettlototl When any Lrlbunal board or offlcer
exerclslng [udlclal funcLlons has acLed wlLhouL or ln excess of lLs or hls
[urlsdlcLlon or wlLh grave abuse of dlscreLlon and Lhere ls no appeal nor any
plaln speedy and adequaLe remedy ln Lhe ordlnary course of law a person
aggrleved Lhereby may flle a verlfled peLlLlon ln Lhe proper courL alleglng Lhe
facLs wlLh cerLalnLy and praylng LhaL [udgmenL be rendered annulllng or
modlfylng Lhe proceedlngs as Lhe law requlres of such Lrlbunal board or
offlcer
1he peLlLlon shall be accompanled by a cerLlfled Lrue copy of Lhe [udgmenL
or order sub[ecL Lhereof LogeLher wlLh coples of all pleadlngs and documenLs
relevanL and perLlnenL LhereLo
lL ls sLrlklng lndeed LhaL Lhls peLlLlon has noL been accompanled by a
cerLlfled Lrue copy of Lhe [udgmenL or order complalned of LogeLher wlLh all
pleadlngs and documenLs whlch are relevanL LhereLo as requlred by Lhe
second paragraph of Lhe aforequoLed rule 1hls vlolaLlon renders Lhe
peLlLlon exLremely lndeflnlLe and uncerLaln 1here ls no wrlLLen formal
[udgmenL or order of respondenLs LhaL ls submlLLed for revlslon or correcLlon
of Lhls CourL 1hls vlolaLlon ls faLal Lo Lhe peLlLlon
ADMINIS1kA1IVL kLMLDILS NLGLLC1LD
All LhaL Lhe peLlLlon alleges ls LhaL Lhe peLlLloner personally appealed Lo Lhe
school auLhorlLles who only passed Lhe buck Lo each oLher 1hls allegaLlon
does noL show LhaL peLlLloner formally avalled of and exhausLed Lhe
admlnlsLraLlve remedles of Lhe ueparLmenL of LducaLlon 1he peLlLlon
lmplles LhaL Lhls ls Lhe flrsL formal complalnL of peLlLloner agalnsL hls
Leachers 1he admlnlsLraLlve agencles of Lhe ueparLmenL of LducaLlon could
have lnvesLlgaLed Lhe grlevances of Lhe peLlLloner wlLh dlspaLch and glve
effecLlve remedles buL peLlLloner negllgenLly abandoned Lhem eLlLloner
cannoL now clalm LhaL he lacked any plaln speedy and adequaLe remedy
nC C8AvL A8uSL Cl ulSC8L1lCn
AllegaLlons relaLlng Lo Lhe alleged grave abuse of dlscreLlon on Lhe parL of
Leachers refer Lo errors mlsLakes or lrregularlLles raLher Lhan Lo real grave
abuse of dlscreLlon LhaL would amounL Lo lack of [urlsdlcLlon Mere
commlsslon of errors ln Lhe exerclse of [urlsdlcLlon may noL be correcLed by
means of cettlototl
ln vlew of Lhe foregolng Lhe CourL ls of Lhe oplnlon and so holds LhaL Lhe
peLlLlon sLaLes no cause of acLlon and should be as lL ls hereby dlsmlssed
AppellanL here assalls Lhe holdlng of Lhe lower courL LhaL hls peLlLlon sLaLes
no cause of acLlon on Lhe grounds (1) LhaL Lhe peLlLlon does noL comply wlLh
Lhe second paragraph of Sec 1 of 8ule 63 because lL has noL been
accompanled by a cerLlfled Lrue copy of Lhe [udgmenL or order sub[ecL
Lhereof LogeLher wlLh coples of all pleadlngs and documenLs relevanL and
perLlnenL LhereLo (2) LhaL admlnlsLraLlve remedles were noL flrsL exhausLed
and (3) LhaL Lhere was no grave abuse of dlscreLlon on Lhe parL of Lhe
Leachers who consLlLuLed Lhe commlLLee referred Lo
Cn Lhe oLher hand appellees malnLaln LhaL Lhe courL below dld noL err ln
dlsmlsslng Lhe case on sald grounds lurLher Lhey argue ln favor of Lhe
quesLloned order of dlsmlssal upon Lhe addlLlonal ground LhaL Lhe
committee on the rotinqs of students for honor whose octions ore here
condemned by oppe//ont is not the tribuno/ boord or officer exercisinq
judicio/ functions oqoinst which on oction for certiorori moy /ie under
5ection 1 of ku/e 5
1he lasL polnL ralsed by appellees deserves flrsL conslderaLlon for lf really Lhe
sald commlLLee of Leachers does noL fall wlLhln Lhe caLegory of Lhe ttlboool
bootJ ot offlcet exetclsloq joJlclol fooctloos conLemplaLed by 8ule 63
furLher dlscusslon of Lhe lssues ralsed by appellanL may no longer be
necessary 1o resolve Lhls problem Lhe followlng LesLs may be employed
ln Lhls [urlsdlcLlon cettlototl ls a speclal clvll acLlon lnsLlLuLed agalnsL any
Lrlbunal board or offlcer exerclslng [udlclal funcLlons (SecLlon 1 8ule 67) A
joJlclol fooctloo ls oo oct petfotmeJ by vlttoe of joJlclol powets tbe exetclse
of o joJlclol fooctloo ls tbe Joloq of sometbloq lo tbe ootote of tbe octloo of
tbe coott (34 C! 1182)
In order that a spec|a| c|v|| act|on of cert|orar| may be |nvoked |n th|s
[ur|sd|ct|on the fo||ow|ng c|rcumstances must ex|st
(1) LhaL Lhere musL be a spec|f|c controversy lnvolvlng r|ghts of
persons or property and sa|d controversy |s brought before a tr|buna|
| A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

board or off|cer for hear|ng and determ|nat|on of the|r respect|ve r|ghts and
ob||gat|ons
udicio/ oction ls oo oJjoJlcotloo opoo tbe tlqbts of pottles wbo lo qeoetol
oppeot ot ote btooqbt befote tbe ttlboool by ootlce ot ptocess ooJ opoo
wbose clolms some Jeclsloo ot joJqmeot ls teoJeteJ lt lmplles lmpottlollty
JlslotetesteJoess o welqbloq of oJvetse clolms ooJ ls locooslsteot wltb
Jlsctetloo oo tbe ooe booJ fot tbe ttlboool most JeclJe occotJloq to low
ooJ tbe tlqbts of tbe pottles ot wltb Jlctotloo oo tbe otbet fot lo tbe fltst
lostooce lt most exetclse lts owo joJqmeot ooJet tbe low ooJ oot oct ooJet o
mooJote ftom oootbet powet 1he characLer of lLs acLlon ln a glven case
musL declde wheLher LhaL acLlon ls [udlclal mlnlsLerlal or leglslaLlve or
wheLher lL be slmply LhaL of a publlc agenL of Lhe counLry or SLaLe as ln lLs
varled [urlsdlcLlons lL may by Lurns be each (ln 8e Sallne CounLy
SubscrlpLlon 100 Am uec 337 338 clLed ln SouLheasLern Creyhound Llnes
v Ceorgla ubllc Servlce Commlsslon 181 S L 836837)
lL may be sald generally tbot tbe exetclse of joJlclol fooctloo ls to Jetetmloe
wbot tbe low ls ooJ wbot tbe leqol tlqbts of pottles ote wltb tespect to o
mottet lo coottovetsy ooJ wbeoevet oo offlcet ls clotbeJ wltb tbot ootbotlty
ooJ ooJettokes to Jetetmloe tbose poestloos be octs joJlclolly (SLaLe ex rel
8oard of Commlssloners of SL Louls CounLy eL al v uunn 90 n W 772
773)
(2) the tr|buna| board or off|cer before whom Lhe conLroversy ls
broughL musL have the power and author|ty to pronounce [udgment and
render a dec|s|on on the controversy constru|ng and app|y|ng the |aws to
that end
1he phrase [ud|c|a| power ls noL capable of a preclse deflnlLlon whlch
would be appllcable Lo all cases 1he Lerm has been varlously deflned as Lhe
author|ty to determ|ne the r|ghts of persons or property by arb|trat|ng
between adversar|es |n spec|f|c controvers|es at the |nstance of a party
thereto Lhe author|ty exerc|sed by that department of government wh|ch
|s charged w|th the dec|arat|on of what the |aw |s and |ts construct|on so far
as |t |s wr|tten |aw Lhe author|ty or power vested |n the [udges or |n the
courts Lhe author|ty vested |n some court off|cer or persons to hear and
determ|ne when the r|ghts of persons or property or the propr|ety of do|ng
an act |s the sub[ect matter of ad[ud|cat|on Lhe power be|ong|ng to or
emanat|ng from a [udge as such the power conferred upon a pub||c off|cer
|nvo|v|ng the exerc|se of [udgment and d|scret|on |n the determ|nat|on of
quest|ons of r|ght |n spec|f|c cases affect|ng the |nterest of persons or
property as dlsLlngulshed from m|n|ster|a| power or author|ty to carry out
the mandates of [ud|c|a| power or the |aw the power exerc|sed by courts |n
hear|ng and determ|n|ng cases before them or some matter |nc|denta|
thereto and of wh|ch they have [ur|sd|ct|on the power of a court Lo dec|de
and pronounce a [udgment the power wh|ch ad[ud|cates upon and proLecLs
Lhe rlghLs and lnLeresLs of lndlvldual clLlzens and Lo LhaL end consLrues and
applles Lhe law udicio/ power imp/ies the construction of /ows ond the
odjudicotion of /eqo/ riqhts lt inc/udes the power to heor ond determine but
not everyone who moy heor ond determine hos judicio/ power 1he term
judicio/ power does not necessori/y inc/ude the power to heor ond
determine o motter thot is not in the noture of o suit or oction between the
porties (34 C! 11831184)
(3) Lhe tr|buna| board or off|cer must perta|n to that branch of
the sovere|gn power wh|ch be|ongs to the [ud|c|ary or at |east wh|ch does
NC1 be|ong to the |eg|s|at|ve or execut|ve department
Lhe dlsLlncLlon beLween leglslaLlve or mlnlsLerlal funcLlons and [udlclal
funcLlons ls dlfflculL Lo polnL ouL wbot ls o joJlclol fooctloo Joes oot JepeoJ
solely opoo tbe meotol opetotloo by wblcb lt ls petfotmeJ ot tbe lmpottooce
of tbe oct ln solvlng Lhls quesLlon due regard musL be had Lo Lhe organlc law
of Lhe sLaLe and Lhe dlvlslon of power of governmenL ln Lhe dlscharge of
execuLlve and leglslaLlve duLles Lhe exerclse of dlscreLlon and [udgmenL of
Lhe hlghesL order ls necessary and maLLers of Lhe greaLesL welghL and
lmporLance are dealL wlLh lL ls noL enough Lo make a funcLlon [udlclal LhaL lL
requlres dlscreLlon dellberaLlon LhoughL and [udgmenL lt must be the
exercise of discretion ond judqment within thot subdivision of the sovereiqn
power which be/onqs to the judiciory or ot /eost which does not be/onq to
the /eqis/otive or executive deportment lf Lhe maLLer ln respecL Lo whlch lL
ls exerclsed belongs Lo elLher of Lhe Lwo lasLnamed deparLmenLs of
governmenL lL ls noL [udlclal As Lo whaL ls [udlclal and whaL ls noL seems Lo
be beLLer lndlcaLed by Lhe naLure of a Lhlng Lhan lLs deflnlLlon (Wheallng
Llm Crove 8allroad Co AppL v 1own of 1rladelphla eL al 4 L8A (n S) pp
321 328329) Lmphasls supplled
1

WnA1 AkL IUDICIAL Ck UASI IUDICIAL AC1S lL ls dlfflculL lf noL
lmposslble preclsely Lo deflne whaL are [udlclal or quasl [udlclal acLs and
Lhere ls conslderable confllcL ln Lhe declslons ln regard LhereLo ln connecLlon
wlLh Lhe law as Lo Lhe rlghL Lo Lhe wrlL ofcettlototl lt is c/eor however thot
it is the noture of the oct to be performed rother thon of the office boord
or body which performs it thot determines whether or not it is the
dischorqe of o judicio/ or quosijudicio/ function lL ls noL essenLlal LhaL Lhe
proceedlngs should be sLrlcLly and Lechnlcally [udlclal ln Lhe sense ln whlch
LhaL word ls used when applled Lo Lhe courLs of [usLlce but |t |s suff|c|ent |f
they are quas| [ud|c|a| It |s enough |f the off|cers act [ud|c|a||y |n mak|ng
the|r dec|s|on whatever may be the|r pub||c character ln tote ex tel
8ootJ of commts vs uooo (86 Mlnn 301 304) Lhe followlng sLaLemenLs
were made
1he preclse llne of demarkaLlon beLween whaL are [udlclal and whaL are
admlnlsLraLlve or mlnlsLerlal funcLlons ls ofLen dlfflculL Lo deLermlne 1he
exerclse of [udlclal funcLlons may lnvolve Lhe performance of leglslaLlve or
admlnlsLraLlve duLles and Lhe performance of admlnlsLraLlve or mlnlsLerlal
duLles may ln a measure lnvolve Lhe exerclse of [udlclal funcLlons lt moy be
solJ qeoetolly tbot tbe exetclse of joJlclol fooctloos ls to Jetetmloe wbot tbe
low ls ooJ wbot tbe leqol tlqbts of pottles ote wltb tespect to o mottet lo
coottovetsy ooJ wbeoevet oo offlcet ls clotbeJ wltb tbot ootbotlty ooJ
ooJettokes to Jetetmloe tbose poestloos be octs joJlclolly

lL ls evldenL upon Lhe foregolng auLhorlLles LhaL Lhe so called commlLLee on
Lhe raLlng of sLudenLs for honor whose acLlons are quesLloned ln Lhls case
exerclsed nelLher [udlclal nor quasl [udlclal funcLlons ln Lhe performance of
lLs asslgned Lask lrom Lhe abovequoLed porLlons of Lhe declslon clLed lL wlll
be gleaned LhaL before Lrlbunal board or offlcer may exerclse [udlclal or
quasl [udlclal acLs |t |s necessary that there be a |aw that g|ve r|se to some
spec|f|c r|ghts of persons or property under wh|ch adverse c|a|ms to such
r|ghts are made and the controversy ensu|ng therefrom |s brought |n turn
before the tr|buna| board or off|cer c|othed w|th power and author|ty to
determ|ne what that |aw |s and thereupon ad[ud|cate the respect|ve r|ghts
of the contend|ng part|es As polnLed ouL by appellees
3
however Lhere ls
noLhlng on record abouL any rule of law LhaL provldes LhaL when Leachers slL
down Lo assess Lhe lndlvldual merlLs of Lhelr puplls for purposes of raLlng
Lhem for honors such funcLlon lnvolves Lhe deLermlnaLlon of whaL Lhe law ls
and LhaL Lhey are Lherefore auLomaLlcally vesLed wlLh [udlclal or quasl
[udlclal funcLlons Worse sLlll Lhls CourL has noL even been appralsed by
appellanL of Lhe perLlnenL provlslons of Lhe Servlce Manual of 1eachers for
ubllc Schools appellees allegedly vlolaLed ln Lhe composlLlon of Lhe
commlLLee Lhey consLlLuLed Lhereunder and ln Lhe performance of LhaL
commlLLees duLles
8A1AN VS CCMLLLC
lacLs 8eynaLo 8ayLan reglsLered as a voLer ln Lwo preclncLs and Lhe
CCMLLLC Ln 8anc afflrmed Lhe recommendaLlon of lLs Law ueparLmenL Lo
flle lnformaLlon of double reglsLraLlon ln vlolaLlon of Lhe LlecLlon Code
8ayLan flled wlLh Lhe Supreme CourL a peLlLlon for cerLlorarl peLlLloners
lnslsL Lhey are lnnocenL of any wrongdolng ln Lhelr acL of reglsLerlng Lwlce on
dlfferenL days ln Lwo dlfferenL preclncLs eLlLloners argue LhaL Lhey dld noL
lnLend Lo perpeLraLe Lhe acL prohlblLed and Lherefore Lhey should be
exculpaLed 1hey clalm honesL mlsLake and good falLh ln reglsLerlng Lwlce
eLlLloners clalm Lhey made Lhe flrsL reglsLraLlon because of Lhe lnLervenLlon
and lnsLlgaLlon of lgnacloeLlLloners Lheorlze LhaL Lhelr AugusL 21 1997
leLLer Lo Lhe elecLlon reglsLrar of CavlLe ClLy lnformlng hlm of Lhe lapse and
asklng how Lo recLlfy Lhe same consLlLuLes subsLanLlal compllance wlLh Lhe
Cmnlbus LlecLlon Code's requlremenL of cancellaLlon of prlor reglsLraLlon
1hey furLher lmplore a llberal consLrucLlon of Lhe laws on elecLlon offenses
slnce almosL flve years had lapsed from Lhe daLe of Lhe commlsslon of Lhe
offense on !une 13 1997 1hey clalm Lhe case ls abouL Lo prescrlbe under Lhe
3 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

LlecLlon CodeLasLly peLlLloners faulL Lhe CCMLLLC en banc for assumlng
orlglnal [urlsdlcLlon over Lhe case ln conLravenLlon of SecLlon 3 ArLlcle lxC of
Lhe ConsLlLuLlon whlch sLaLes
Sec 3 1he Commlsslon on LlecLlons may slL en banc or ln Lwo dlvlslons and
shall promulgaLe lLs rules of procedure ln order Lo expedlLe dlsposlLlon of
elecLlon cases lncludlng preproclamaLlon conLroversles All such elecLlon
cases shall be heard and declded ln dlvlslon provlded LhaL moLlons for
reconslderaLlon of declslons shall be declded by Lhe Commlsslon en banc
eLlLloners asserL LhaL Lhls consLlLuLlonal provlslon serves as basls Lo nulllfy
Lhe proceedlngs conducLed and orders lssued by Lhe CCMLLLC en banc ln
LC Case no 97303 eLlLloners argue LhaL Lhls consLlLuLlonal provlslon
requlres LhaL elecLlon cases musL flrsL be heard and declded by a ulvlslon
before assumpLlon of [urlsdlcLlon by Lhe CCMLLLC en banc
lssue WheLher Lhe CCMLLLC en banc's assumpLlon of orlglnal [urlsdlcLlon
over Lhe case vlolaLed Lhe ConsLlLuLlon
Peld ln lLs CommenL for Lhe CCMLLLC Lhe SollclLor Ceneral polnLs ouL LhaL
Lhe rullngs ln SarmlenLo and ZaraLe were clarlfled ln Canlcosa v
CCMLLLC
19
Lo mean LhaL
lL ls only ln Lhe exerclse of lLs ad[udlcaLory or quasl [udlclal powers LhaL Lhe
CCMLLLC ls mandaLed Lo hear and declde cases flrsL by dlvlslon and Lhen
upon moLlon for reconslderaLlon by Lhe CCMLLLC en banc 1hls ls when lL ls
[urlsdlcLlonal
1he SollclLor Ceneral conLends LhaL Lhe conducL of a prellmlnary
lnvesLlgaLlon before Lhe flllng of an lnformaLlon ln courL does noL ln any way
ad[udlcaLe wlLh flnallLy Lhe rlghLs and llablllLles of Lhe parLles lnvesLlgaLed A
prellmlnary lnvesLlgaLlon does noL make any pronouncemenL as Lo Lhe gullL
or lnnocence of Lhe parLy lnvolved Pence a prellmlnary lnvesLlgaLlon cannoL
be consldered a [udlclal or quasl[udlclal proceedlng requlred Lo be heard by
Lhe ulvlslon ln Lhe flrsL lnsLance
Lhe CCMLLLC's quasl[udlclal powers are found ln SecLlon 2 (2) of ArLlcle lxC
Lo wlL
SecLlon 2 1he Commlsslon on LlecLlons shall exerclse Lhe followlng powers
and funcLlons
xxx
(2) Lxerclse excluslve orlglnal [urlsdlcLlon over all conLesLs relaLlng Lo Lhe
elecLlons reLurns and quallflcaLlons of all elecLlve reglonal provlnclal and
clLy offlclals and appellaLe [urlsdlcLlon over all conLesLs lnvolvlng elecLlve
munlclpal offlclals declded by Lrlal courLs of general [urlsdlcLlon or lnvolvlng
elecLlve barangay offlclals declded by Lrlal courLs of llmlLed [urlsdlcLlon
ueclslons flnal orders or rullngs of Lhe Commlsslon on elecLlon conLesLs
lnvolvlng elecLlve munlclpal and barangay offlces shall be flnal execuLory
and noL appealable
1he CCMLLLC's exerclse of lLs quasl[udlclal powers ls sub[ecL Lo SecLlon 3 of
ArLlcle lxC whlch expressly requlres LhaL all elecLlon cases lncludlng pre
proclamaLlon conLroversles shall be declded by Lhe CCMLLLC ln dlvlslon and
Lhe moLlon for reconslderaLlon shall be declded by Lhe CCMLLLC en banc lL
follows as held by Lhe CourL ln Canlcosa
23
LhaL Lhe CCMLLLC ls mandaLed Lo
declde cases flrsL ln dlvlslon and Lhen upon moLlon for reconslderaLlon en
banc only when Lhe CCMLLLC exerclses lLs quasl[udlclal powers
1he CCMLLLC ls empowered ln SecLlon 2(6) ArLlcle lxC of Lhe 1987
ConsLlLuLlon Lo prosecuLe cases of vlolaLlons of elecLlon laws 1he
prosecuLlon of elecLlon law vlolaLors lnvolves Lhe exerclse of LheCCMLLLC's
admlnlsLraLlve powers 1hus Lhe CCMLLLC en banc can dlrecLly approve Lhe
recommendaLlon of lLs Law ueparLmenL Lo flle Lhe crlmlnal lnformaLlon for
double reglsLraLlon agalnsL peLlLloners ln Lhe lnsLanL case 1here ls no
consLlLuLlonal requlremenL LhaL Lhe flllng of Lhe crlmlnal lnformaLlon be flrsL
declded by any of Lhe dlvlslons of Lhe CCMLLLC
ln sum Lhe second senLence of SecLlon 3 ArLlcle lxC of Lhe 1987
ConsLlLuLlon ls noL appllcable ln admlnlsLraLlve cases llke Lhe lnsLanL case
where Lhe CCMLLLC ls deLermlnlng wheLher probable cause exlsLs Lo charge
peLlLloners for vlolaLlon of Lhe provlslon of Lhe LlecLlon Code prohlblLlng
double reglsLraLlon
lndeed Lhe CCMLLLC acLed ln accordance wlLh SecLlon 9(b) 8ule 34 of Lhe
1993 CCMLLLC 8ules of rocedure governlng Lhe prosecuLlon of elecLlon
offenses ln meeLlng en banc ln Lhe flrsL lnsLance and acLlng on Lhe
recommendaLlon of lnvesLlgaLlng Cfflcer 8avanzo Lo flle charges agalnsL
peLlLloners 1he rule reads
SLC 9 Duty of the Law Department State rosecutor rov|nc|a| or C|ty
I|sca| Upon kece|pt of kecords x x x
(b) ln cases lnvesLlgaLed by Lhe lawyers or Lhe fleld personnel of Lhe
Commlsslon Lhe ulrecLor of Lhe Law ueparLmenL shall revlew and evaluaLe
Lhe recommendaLlon of sald legal offlcer prepare a reporL and make a
recommendaLlon Lo Lhe Commlsslon afflrmlng modlfylng or reverslng Lhe
same wh|ch sha|| be |nc|uded |n the agenda of the succeed|ng meet|ng en
banc of the Comm|ss|on lf Lhe Commlsslon approves Lhe flllng of an
lnformaLlon agalnsL Lhe respondenL/s Lhe ulrecLor of Lhe Law ueparLmenL
shall prepare and slgn Lhe lnformaLlon for lmmedlaLe flllng wlLh Lhe
approprlaLe courL (Lmphasls supplled)
MlnuLe 8esoluLlon no 002281 was lssued durlng Lhe en banc meeLlng held
on november 9 2000 Lo resolve Lhe recommendaLlon of 8avanzo ln Lhe case
WPL8LlC8L Lhe peLlLlon ls ulSMlSSLu for lack of merlL
SMAk1 CCMMUNICA1ICNS INC (SMAk1) and ILIINC 1LLLnCNL
CCkCkA1ICN (IL1LL) peLlLloners
vs
NA1ICNAL 1LLLCCMMUNICA1ICNS CCMMISSICN (N1C) respondenL
xx
Gk No 1S3 August 1 3
GLC8L 1LLLCCM INC (GLC8L) and ISLA CCMMUNICA1ICNS CC INC
(ISLACCM) peLlLloners
vs
CCUk1 CI ALALS (1he Iormer th D|v|s|on) and the NA1ICNAL
1LLLCCMMUNICA1ICNS CCMMISSICN respondenLs
lacLs
Lhe naLlonal 1elecommunlcaLlons Commlsslon (n1C) lssued on !une 16 2000
Memorandum Clrcular no 1362000 promulgaLlng rules and regulaLlons on
Lhe bllllng of LelecommunlcaLlons servlces
Cn CcLober 20 2000 peLlLloners lsla CommunlcaLlons Co lnc and lllplno
1elephone CorporaLlon flled agalnsL Lhe naLlonal 1elecommunlcaLlons
Commlsslon Commlssloner !oseph A SanLlago uepuLy Commlssloner
Aurello M umall and uepuLy Commlssloner nesLor C uacanay an acLlon for
declaraLlon of nulllLy of n1C Memorandum Clrcular no 1362000 (Lhe 8llllng
Clrcular) and Lhe n1C Memorandum daLed CcLober 6 2000 wlLh prayer for
Lhe lssuance of a wrlL of prellmlnary ln[uncLlon and Lemporary resLralnlng
order 1he complalnL was dockeLed as Clvll Case no C0042221 aL Lhe
8eglonal 1rlal CourL of Cuezon ClLy 8ranch 77
3

eLlLloners lslacom and llLel alleged LhaL Lhe n1C has no [urlsdlcLlon Lo
regulaLe Lhe sale of consumer goods such as Lhe prepald call cards slnce such
[urlsdlcLlon belongs Lo Lhe ueparLmenL of 1rade and lndusLry under Lhe
Consumer AcL of Lhe hlllpplnes LhaL Lhe 8llllng Clrcular ls oppresslve
conflscaLory and vlolaLlve of Lhe consLlLuLlonal prohlblLlon agalnsL
deprlvaLlon of properLy wlLhouL due process of law LhaL Lhe Clrcular wlll
resulL ln Lhe lmpalrmenL of Lhe vlablllLy of Lhe prepald cellular servlce by
unduly prolonglng Lhe valldlLy and explraLlon of Lhe prepald SlM and call
cards and LhaL Lhe requlremenLs of ldenLlflcaLlon of prepald card buyers and
| A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

call balance announcemenL are unreasonable Pence Lhey prayed LhaL Lhe
8llllng Clrcular be declared null and vold ob loltlo
peLlLloners Clobe 1elecom lnc and SmarL CommunlcaLlons lnc flled a [olnL
MoLlon for Leave Lo lnLervene and Lo AdmlL ComplalnLlnlnLervenLlon whlch
was granLed by Lhe courL
Cn CcLober 27 2000 Lhe Lrlal courL lssued a Lemporary resLralnlng order
en[olnlng Lhe n1C from lmplemenLlng Memorandum Clrcular no 1362000
and Lhe Memorandum daLed CcLober 6 2000
7
ln Lhe meanLlme respondenL
n1C and lLs codefendanLs flled a moLlon Lo dlsmlss Lhe case on Lhe ground
of peLlLloners fallure Lo exhausL admlnlsLraLlve remedles
SubsequenLly afLer hearlng peLlLloners appllcaLlon for prellmlnary ln[uncLlon
as well as respondenLs moLlon Lo dlsmlss Lhe Lrlal courL lssued on november
20 2000 an Crder denylng defendanL's moLlon Lo dlsmlss
8espondenL n1C Lhus flled a speclal clvll acLlon for cerLlorarl and prohlblLlon
wlLh Lhe CourL of Appeals granLlng Lhe sald peLlLlon and denylng Lhe
peLlLloners moLlon Lo dlsmlss as well as Lhe order of Lhe courL o poogranLlng
Lhe prlvaLe respondenLs prayer for a wrlL of prellmlnary ln[uncLlon and Lhe
wrlL of prellmlnary ln[uncLlon lssued Lhereby are hereby AnnuLLLu and SL1
ASluL 1he prlvaLe respondenLs complalnL and complalnLlnlnLervenLlon
below are hereby ulSMlSSLu wlLhouL pre[udlce Lo Lhe referral of Lhe prlvaLe
respondenLs grlevances and dlspuLes on Lhe assalled lssuances of Lhe n1C
wlLh Lhe sald agency
lssues
A 1PL PCnC8A8LL CCu81 Cl ALALS C8AvLL? L88Lu ln PCLulnC 1PA1
1PL nA1lCnAL 1LLLCCMMunlCA1lCnS CCMMlSSlCn (n1C) Anu nC1 1PL
8LCuLA8 CCu81S PAS !u8lSulC1lCn CvL8 1PL CASL
81PL PCnC8A8LL CCu81 Cl ALALS ALSC C8AvLL? L88Lu ln PCLulnC
1PA1 1PL 8lvA1L 8LSCnuLn1S lAlLLu 1C LxPAuS1 An AvAlLA8LL
AuMlnlS18A1lvL 8LMLu?
C1PL PCnC8A8LL CCu81 Cl ALALS L88Lu ln nC1 PCLulnC 1PA1 1PL
8lLLlnC Cl8CuLA8 lSSuLu 8? 1PL 8LSCnuLn1 n1C lS unCCnS1l1u1lCnAL
Anu CCn18A8? 1C LAW Anu u8LlC CLlC?
u 1PL PCnC8A8LL CCu81 Cl ALALS L88Lu ln PCLulnC 1PA1 1PL
8lvA1L 8LSCnuLn1S lAlLLu 1C SPCW 1PLl8 CLLA8 CSl1lvL 8lCP1 1C
WA88An1 1PL lSSuAnCL Cl A W8l1 Cl 8LLlMlnA8? ln!unC1lCn
8ullng
AdmlnlsLraLlve agencles possess quas||eg|s|at|ve or ru|emak|ng powers and
quas|[ud|c|a| or adm|n|strat|ve ad[ud|catory powers ;ooslleqlslotlve ot
tolemokloq powet ls tbe powet to moke toles ooJ teqolotloos wblcb tesolts
lo JeleqoteJ leqlslotloo tbot ls wltblo tbe coofloes of tbe qtootloq stotote ooJ
tbe Jocttloe of oooJeleqoblllty ooJ sepotoblllty of powets
1he rules and regulaLlons LhaL admlnlsLraLlve agencles promulgaLe whlch are
Lhe producL of a delegaLed leglslaLlve power Lo creaLe new and addlLlonal
legal provlslons LhaL have Lhe effecL of law sboolJ bewltblo tbe scope of tbe
stotototy ootbotlty qtooteJ by tbe leqlslotote to tbe oJmlolsttotlve oqeocy lL
ls tepolteJ tbot tbe teqolotloo be qetmooe to tbe objects ooJ potposes of tbe
low ooJ be oot lo coottoJlctloo to bot lo coofotmlty wltb tbe stooJotJs
ptesctlbeJ by low
17
1hey most coofotm to ooJ be cooslsteot wltb tbe
ptovlsloos of tbe eooblloq stotote lo otJet fot socb tole ot teqolotloo to be
vollJ ConsLlLuLlonal and sLaLuLory provlslons conLrol wlLh respecL Lo whaL
rules and regulaLlons may be promulgaLed by an admlnlsLraLlve body as well
as wlLh respecL Lo whaL flelds are sub[ecL Lo regulaLlon by lL lL may noL make
rules and regulaLlons whlch are lnconslsLenL wlLh Lhe provlslons of Lhe
ConsLlLuLlon or a sLaLuLe parLlcularly Lhe sLaLuLe lL ls admlnlsLerlng or whlch
creaLed lL or whlch are ln derogaLlon of or defeaL Lhe purpose of a sLaLuLe
ln case of confllcL beLween a sLaLuLe and an admlnlsLraLlve order Lhe former
musL prevall
quosijudicio/ or odministrotive odjudicotory power 1hls ls Lhe power Lo
hear and deLermlne quesLlons of facL Lo whlch Lhe leglslaLlve pollcy ls Lo
apply and Lo declde ln accordance wlLh Lhe sLandards lald down by Lhe law
lLself ln enforclng and admlnlsLerlng Lhe same law @be oJmlolsttotlve boJy
exetclses lts poosljoJlclol powet wbeo lt petfotms lo o joJlclol moooet oo oct
wblcb ls esseotlolly of oo execotlve ot oJmlolsttotlve ootote wbete tbe powet
to oct lo socb moooet ls loclJeotol to ot teosooobly oecessoty fot tbe
petfotmooce of tbe execotlve ot oJmlolsttotlve Joty eottosteJ to lt ln
carrylng ouL Lhelr quasl[udlclal funcLlons Lhe admlnlsLraLlve offlcers or
bodles are requlred Lo lnvesLlgaLe facLs or ascerLaln Lhe exlsLence of facLs
hold hearlngs welgh evldence and draw concluslons from Lhem as basls for
Lhelr offlclal acLlon and exerclse of dlscreLlon ln a [udlclal naLure
In quest|on|ng the va||d|ty or const|tut|ona||ty of a ru|e or regu|at|on |ssued
by an adm|n|strat|ve agency a parLy need nC1 exhausL admlnlsLraLlve
remedles before golng Lo courL @bls ptloclple opplles ooly wbete tbe oct of
tbe oJmlolsttotlve oqeocy coocetoeJ wos petfotmeJ potsooot to lts poosl
joJlclol fooctloo ooJ oot wbeo tbe ossolleJ oct pettoloeJ to lts tolemokloq
ot pooslleqlslotlve powet
lo Assoclotloo of lblllpploe cocooot uesslcotots v lblllpploe cocooot
Aotbotlty only [udlclal revlew of declslons of admlnlsLraLlve agencles made
ln Lhe exerclse of Lhelr quasl[udlclal funcLlon ls sub[ecL Lo Lhe exhausLlon
docLrlne
ln llke manner Lhe doctr|ne of pr|mary [ur|sd|ct|on applles ooly wbete tbe
oJmlolsttotlve oqeocy exetclses lts poosljoJlclol ot oJjoJlcototy fooctloo
1hus ln cases lnvolvlng speclallzed dlspuLes Lhe pracLlce has been Lo refer
Lhe same Lo an admlnlsLraLlve agency of speclal compeLence pursuanL Lo Lhe
docLrlne of prlmary [urlsdlcLlon @be cootts wlll oot Jetetmloe o coottovetsy
lovolvloq o poestloo wblcb ls wltblo tbe jotlsJlctloo of tbe oJmlolsttotlve
ttlboool ptlot to tbe tesolotloo of tbot poestloo by tbe oJmlolsttotlve ttlboool
wbete tbe poestloo JemooJs tbe exetclse of soooJ oJmlolsttotlve Jlsctetloo
tepoltloq tbe speclol koowleJqe expetleoce ooJ setvlces of tbe
oJmlolsttotlve ttlboool to Jetetmloe tecbolcol ooJ lottlcote mottets of foct
ooJ o oolfotmlty of tolloq ls esseotlol to comply wltb tbe ptemlses of tbe
teqolototy stotote oJmlolsteteJ 1he ob[ecLlve of Lhe docLrlne of prlmary
[urlsdlcLlon ls Lo gulde a courL ln deLermlnlng wheLher lL should refraln from
exerclslng lLs [urlsdlcLlon unLll afLer an admlnlsLraLlve agency has deLermlned
some quesLlon or some aspecL of some quesLlon arlslng ln Lhe proceedlng
before Lhe courL lL applles where Lhe clalm ls orlglnally cognlzable ln Lhe
courLs and comes lnLo play whenever enforcemenL of Lhe clalm requlres Lhe
resoluLlon of lssues whlch under a regulaLory scheme has been placed
wlLhln Lhe speclal compeLence of an admlnlsLraLlve body ln such case Lhe
[udlclal process ls suspended pendlng referral of such lssues Lo Lhe
admlnlsLraLlve body for lLs vlew
where whaL ls assalled ls Lhe valldlLy or consLlLuLlonallLy of a rule or
regulaLlon lssued by Lhe admlnlsLraLlve agency ln Lhe performance of lLs
quaslleglslaLlve funcLlon Lhe regular courLs have [urlsdlcLlon Lo pass upon
Lhe same 1he deLermlnaLlon of wheLher a speclflc rule or seL of rules lssued
by an admlnlsLraLlve agency conLravenes Lhe law or Lhe consLlLuLlon ls wlLhln
Lhe [urlsdlcLlon of Lhe regular courLs
Lhe ConsLlLuLlon vesLs Lhe power of [udlclal revlew or Lhe power Lo declare a
law LreaLy lnLernaLlonal or execuLlve agreemenL presldenLlal decree order
lnsLrucLlon ordlnance or regulaLlon ln Lhe courLs lncludlng Lhe reglonal Lrlal
courLs
23
1hls ls wlLhln Lhe scope of [udlclal power whlch lncludes Lhe
auLhorlLy of Lhe courLs Lo deLermlne ln an approprlaLe acLlon Lhe valldlLy of
Lhe acLs of Lhe pollLlcal deparLmenLs
26
!udlclal power lncludes Lhe duLy of
Lhe courLs of [usLlce Lo seLLle acLual conLroversles lnvolvlng rlghLs whlch are
legally demandable and enforceable and Lo deLermlne wheLher or noL Lhere
has been a grave abuse of dlscreLlon amounLlng Lo lack or excess of
[urlsdlcLlon on Lhe parL of any branch or lnsLrumenLallLy of Lhe CovernmenL
ln Lhe case aL bar Lhe lssuance by Lhe n1C of Memorandum Clrcular no 13
62000 and lLs Memorandum daLed CcLober 6 2000 was pursuanL Lo lLs
quaslleglslaLlve or rulemaklng power As such peLlLloners were [usLlfled ln
lnvoklng Lhe [udlclal power of Lhe 8eglonal 1rlal CourL Lo assall Lhe
consLlLuLlonallLy and valldlLy of Lhe sald lssuances
S | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

In the|r comp|a|nt before the keg|ona| 1r|a| Court pet|t|oners averred that
the C|rcu|ar contravened C|v|| Code prov|s|ons on sa|es and v|o|ated the
const|tut|ona| proh|b|t|on aga|nst the depr|vat|on of property w|thout due
process of |aw 1hese are w|th|n the competence of the tr|a| [udge
Contrary to the f|nd|ng of the Court of Appea|s the |ssues ra|sed |n the
comp|a|nt do not enta|| h|gh|y techn|ca| matters kather what |s requ|red
of the [udge who w||| reso|ve th|s |ssue |s a bas|c fam|||ar|ty w|th the
work|ngs of the ce||u|ar te|ephone serv|ce |nc|ud|ng prepa|d SIM and ca||
cards and th|s |s [ud|c|a||y known to be w|th|n the know|edge of a good
percentage of our popu|at|on and expert|se |n fundamenta| pr|nc|p|es of
c|v|| |aw and the Const|tut|on
nence the keg|ona| 1r|a| Court has [ur|sd|ct|on to hear and dec|de C|v||
Case No 1 1he Court of Appea|s erred |n sett|ng as|de the orders
of the tr|a| court and |n d|sm|ss|ng the case
LU2CN DLVLLCMLN1 8ANk vsASSCCIA1ICN CI LU2CN DLVLLCMLN1
8ANk LMLCLLS and A11 LS1Lk S GAkCIA |n her capac|ty as
VCLUN1Ak Ak8I1kA1Ck respondents
Iacts lrom a submlsslon agreemenL of Lhe Luzon uevelopmenL 8ank (Lu8)
and Lhe AssoclaLlon of Luzon uevelopmenL 8ank Lmployees (ALu8L) arose an
arblLraLlon case Lo resolve Lhe followlng lssueWheLher or noL Lhe company
has vlolaLed Lhe CollecLlve 8argalnlng AgreemenL provlslon and Lhe
Memorandum of AgreemenL daLed Aprll 1994 on promoLlon AL a
conference Lhe parLles agreed on Lhe submlsslon of Lhelr respecLlve oslLlon
apers on uecember 113 1994 ALLy LsLer S Carcla ln her capaclLy as
volunLary ArblLraLor recelved ALu8Ls oslLlon aper on !anuary 18 1993
Lu8 on Lhe oLher hand falled Lo submlL lLs oslLlon aper desplLe a leLLer
from Lhe volunLary ArblLraLor remlndlng Lhem Lo do so As of May 23 1993
no oslLlon aper had been flled by Lu8
Cn May 24 1993 wlLhouL Lu8s oslLlon aper Lhe volunLary ArblLraLor
rendered a declslon dlsposlng as follows
WPL8LlC8L flndlng ls hereby made LhaL Lhe 8ank has noL
adhered Lo Lhe CollecLlve 8argalnlng AgreemenL provlslon nor Lhe
Memorandum of AgreemenL on promoLlon
A peLlLlon for cerLlorarl was flled seeklng Lo seL aslde Lhe declslon
of Lhe volunLary ArblLraLor and Lo prohlblL her from enforclng Lhe same
lssue WCn Lhe CA has [urlsdlcLlon over cases declded upon by
volunLary ArblLraLor
Peld ?es lL wlll Lhus be noLed LhaL Lhe [urlsdlcLlon conferred by
law on a volunLary arblLraLor or a panel of such arblLraLors ls qulLe llmlLed
compared Lo Lhe orlglnal [urlsdlcLlon of Lhe labor arblLer and Lhe appellaLe
[urlsdlcLlon of Lhe naLlonal Labor 8elaLlons Commlsslon (nL8C) for LhaL
maLLer

1he sLaLe of our presenL law relaLlng Lo volunLary arblLraLlon
provldes LhaL (L)he award or declslon of Lhe volunLary ArblLraLor shall be
flnal and execuLory afLer Len (10) calendar days from recelpL of Lhe copy of
Lhe award or declslon by Lhe parLles
S
whlle Lhe (d)eclslon awards or
orders of Lhe Labor ArblLer are flnal and execuLory unless appealed Lo Lhe
Commlsslon by any or boLh parLles wlLhln Len (10) calendar days from recelpL
of such declslons awards or orders

Pence whlle Lhere ls an express mode
of appeal from Lhe declslon of a labor arblLer 8epubllc AcL no 6713 ls sllenL
wlLh respecL Lo an appeal from Lhe declslon of a volunLary arblLraLor
ln ceoolc 8lc ulvlsloo (llw) et ol v kometo et ol
9
Lhls CourL ruled LhaL a
volunLary arblLraLor by Lhe naLure of her funcLlons acLs ln a quasl[udlclal
capaclLy under Lhese rullngs lL follows LhaL Lhe volunLary arblLraLor
wheLher acLlng solely or ln a panel en[oys ln law tbe stotos of o poosljoJlclol
oqeocy buL lndependenL of and aparL from Lhe nL8C slnce hls declslons are
noL appealable Lo Lhe laLLer
1

SecLlon 9 of 8 8lg 129 as amended by 8epubllc AcL no 7902
provldes LhaL Lhe CourL of Appeals shall exerclse
xxx xxx xxx
(8) Lxcluslve appellaLe [urlsdlcLlon over all flnal [udgmenLs
declslons resoluLlons orders or awards of 8eglonal 1rlal CourLs and quasl
[udlclal agencles lnsLrumenLallLles boards or commlsslons lncludlng Lhe
SecurlLles and Lxchange Commlsslon Lhe Lmployees CompensaLlon
Commlsslon and Lhe Clvll Servlce Commlsslon excepL Lhose falllng wlLhln Lhe
appellaLe [urlsdlcLlon of Lhe Supreme CourL ln accordance wlLh Lhe
ConsLlLuLlon Lhe Labor Code of Lhe hlllpplnes under resldenLlal uecree no
442 as amended Lhe provlslons of Lhls AcL and of subparagraph (1) of Lhe
Lhlrd paragraph and subparagraph (4) of Lhe fourLh paragraph of SecLlon 17
of Lhe !udlclary AcL of 1948
Assumlng otqoeoJo LhaL Lhe volunLary arblLraLor or Lhe panel of
volunLary arblLraLors may noL sLrlcLly be consldered as a quasl[udlclal
agency board or commlsslon sLlll boLh he and Lhe panel are comprehended
wlLhln Lhe concepL of a quasl[udlclal lnsLrumenLallLy lL may even be sLaLed
LhaL lL was Lo meeL Lhe very slLuaLlon presenLed by Lhe quasl[udlclal
funcLlons of Lhe volunLary arblLraLors here as well as Lhe subsequenL
arblLraLor/arblLral Lrlbunal operaLlng under Lhe ConsLrucLlon lndusLry
ArblLraLlon Commlsslon
11
LhaL Lhe broader Lerm lnsLrumenLallLles was
purposely lncluded ln Lhe abovequoLed provlslon
An lnsLrumenLallLy ls anyLhlng used as a means or
agency
1
1hus Lhe Lerms governmenLal agency or lnsLrumenLallLy are
synonymous ln Lhe sense LhaL elLher of Lhem ls a means by whlch a
governmenL acLs or by whlch a cerLaln governmenL acL or funcLlon ls
performed
13
1he word lnsLrumenLallLy wlLh respecL Lo a sLaLe
conLemplaLes an auLhorlLy Lo whlch Lhe sLaLe delegaLes governmenLal power
for Lhe performance of a sLaLe funcLlon
1
An lndlvldual person llke an
admlnlsLraLor or execuLor ls a [udlclal lnsLrumenLallLy ln Lhe seLLllng of an
esLaLe
1S
ln Lhe same manner LhaL a subagenL appolnLed by a bankrupLcy
courL ls an lnsLrumenLallLy of Lhe courL
1
and a LrusLee ln bankrupLcy of a
defuncL corporaLlon ls an lnsLrumenLallLy of Lhe sLaLe
17

1he volunLary arblLraLor no less performs a sLaLe funcLlon
pursuanL Lo a governmenLal power delegaLed Lo hlm under Lhe provlslons
Lherefor ln Lhe Labor Code and he falls Lherefore wlLhln Lhe conLemplaLlon
of Lhe Lerm lnsLrumenLallLy ln Lhe aforequoLed Sec 9 of 8 129 1he facL
LhaL hls funcLlons and powers are provlded for ln Lhe Labor Code does noL
place hlm wlLhln Lhe excepLlons Lo sald Sec 9 slnce he ls a quasl[udlclal
lnsLrumenLallLy as conLemplaLed Lhereln lL wlll be noLed LhaL alLhough Lhe
Lmployees CompensaLlon Commlsslon ls also provlded for ln Lhe Labor Code
Clrcular no 191 whlch ls Lhe forerunner of Lhe presenL 8evlsed
AdmlnlsLraLlve Clrcular no 193 lald down Lhe procedure for Lhe
appealablllLy of lLs declslons Lo Lhe CourL of Appeals under Lhe foregolng
raLlonallzaLlon and Lhls was laLer adopLed by 8epubllc AcL no 7902 ln
amendlng Sec 9 of 8 129
A fottlotl Lhe declslon or award of Lhe volunLary arblLraLor or
panel of arblLraLors should llkewlse be appealable Lo Lhe CourL of Appeals ln
llne wlLh Lhe procedure ouLllned ln 8evlsed AdmlnlsLraLlve Clrcular no 193
[usL llke Lhose of Lhe quasl[udlclal agencles boards and commlsslons
enumeraLed Lhereln
1hls would be ln furLherance of and conslsLenL wlLh Lhe orlglnal
purpose of Clrcular no 191 Lo provlde a unlform procedure for Lhe
appellaLe revlew of ad[udlcaLlons of all quasl[udlclal enLlLles
18
noL expressly
excepLed from Lhe coverage of Sec 9 of 8 129 by elLher Lhe ConsLlLuLlon or
anoLher sLaLuLe nor wlll lL run counLer Lo Lhe leglslaLlve lnLendmenL LhaL
declslons of Lhe nL8C be revlewable dlrecLly by Lhe Supreme CourL slnce
preclsely Lhe cases wlLhln Lhe ad[udlcaLlve compeLence of Lhe volunLary
arblLraLor are excluded from Lhe [urlsdlcLlon of Lhe nL8C or Lhe labor arblLer
ln Lhe same veln lL ls worLh menLlonlng LhaL under SecLlon 22 of
8epubllc AcL no 876 also known as Lhe ArblLraLlon Law arblLraLlon ls
deemed a speclal proceedlng of whlch Lhe courL speclfled ln Lhe conLracL or
submlsslon or lf none be speclfled Lhe 8eglonal 1rlal CourL for Lhe provlnce
or clLy ln whlch one of Lhe parLles resldes or ls dolng buslness or ln whlch Lhe
arblLraLlon ls held shall have [urlsdlcLlon A parLy Lo Lhe conLroversy may aL
any Llme wlLhln one (1) monLh afLer an award ls made apply Lo Lhe courL
| A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

havlng [urlsdlcLlon for an order conflrmlng Lhe award and Lhe courL musL
granL such order unless Lhe award ls vacaLed modlfled or correcLed
19

ln effecL Lhls equaLes Lhe award or declslon of Lhe volunLary
arblLraLor wlLh LhaL of Lhe reglonal Lrlal courL ConsequenLly ln a peLlLlon
for cettlototl from LhaL award or declslon Lhe CourL of Appeals musL be
deemed Lo have concurrenL [urlsdlcLlon wlLh Lhe Supreme CourL As a maLLer
of pollcy Lhls CourL shall henceforLh remand Lo Lhe CourL of Appeals
peLlLlons of Lhls naLure for proper dlsposlLlon
GAkMLN1S and 1Lk1ILL LkCk1 8CAkD (G1L8) vs CA
IAC1S
VIGAN VS SC
Whether not|ce and a hear|ng |n proceed|ngs before a pub||c serv|ce
comm|ss|on are necessary depends chief/y upon stotutory or constitutiono/
provisions opp/icob/e to such proceedinqs wh|ch make not|ce and hear|ng
prerequ|s|te to act|on by the comm|ss|on and upon the noture ond object
of such proceedinqs that |s whether the proceed|ngs are on the one
hand |eg|s|at|ve and ru|emak|ng |n character or are on the other hand
determ|nat|ve ond judicio/ or quosijudicio/ offectinq the riqhts on property
of privote or specific persons 4s o qenero/ ru/e o pub/ic uti/ity must be
offorded some opportunity to be heord os to the propriety ond
reosonob/eness of rotes fixed for its services by o pub/ic service commission
SLC VS CA
Cualoplng SecurlLles CorporaLlon (CuALClnC for brevlLy) ls a sLockbroker
lldellLy SLock 1ransfer lnc (lluLLl1? for brevlLy) on Lhe oLher hand ls Lhe
sLock Lransfer agenL of hllex Mlnlng CorporaLlon (PlLLx for brevlLy)
Cn or abouL Lhe flrsL half of 1988 cerLlflcaLes of sLock of PlLLx represenLlng
one mllllon four hundred Lhousand (1400000) shares were sLolen from Lhe
premlses of lluLLl1? 1hese sLock cerLlflcaLes conslsLlng of sLock dlvldends of
cerLaln PlLLx shareholders had been reLurned Lo lluLLl1? for lack of
forwardlng addresses of Lhe shareholders concernedlaLer lL was found ouL
LhaL Lhe sLolen sLock cerLlflcaLes were ln Lhe possesslon of a messenger
AgusLln Lopez of new Worls SecurlLy lnc an enLlrely dlfferenL SLock
brokerage flrm 1he messenger broughL Lhe Lhe sald sLocks Lo CuALClnC
and sLamped each cerLlflcaLe and Lraded Lhe same wlLh Lhe sLock exchange
AfLer Lhe sLock exchange awarded and conflrmed Lhe sale of Lhe sLocks
represenLed by sald cerLlflcaLes Lo dlfferenL buyers Lhe same were dellvered
Lo lluLLl1? for Lhe cancellaLlon of Lhe sLocks cerLlflcaLes and for lssuance of
new cerLlflcaLes ln Lhe name of Lhe new buyers AgusLln Lopez on Lhe oLher
hand was pald by CuALClnC wlLh several checks for lour Pundred
1housand (40000000) esos for Lhe value of Lhe sLocks AfLer acqulrlng
knowledge of Lhe pllferage lluLLl1? conducLed an lnvesLlgaLlon wlLh
asslsLance of Lhe naLlonal 8ureau of lnvesLlgaLlon (n8l) and found LhaL Lwo
of lLs employees were lnvolved and slgned Lhe cerLlflcaLesAfLer Lwo (2)
monLhs from recelpL of sald sLock cerLlflcaLes lluLLl1? re[ecLed Lhe lssuance
of new cerLlflcaLes ln favor of Lhe buyers for reasons LhaL Lhe slgnaLures of
Lhe owners of Lhe cerLlflcaLes were allegedly forged and Lhus Lhe cancellaLlon
and new lssuance Lhereof cannoL be effecLed Cn 11 AugusL 1988 lluLLl1?
soughL an oplnlon on Lhe maLLer from SLC whlch on 06 CcLober 1988
summoned lluLLl1? and CuALClnC Lo a conference LaLer on Lhe Lhe
8rokers and Lxchange ueparLmenL (8Lu) of Lhe SLC declded and ordered
lldellLy SLock 1ransfers lnc Lo replace all Lhe sub[ecL shares and Lo cause Lhe
Lransfer Lhereof ln Lhe names of Lhe buyers wlLhln Len days from acLual
recelpL Cualoplng SecurlLles lnC for havlng vlolaLed SecLlon 29 a(3) of Lhe
8evlsed SecurlLles AcL ls hereby ordered Lo pay a flne of 3000000 wlLhln
flve (3) days from acLual recelpL
lrom Lhe above resoluLlon as well as LhaL whlch denled a moLlon for
reconslderaLlon boLh CuALClnC and lluLLl1? appealed Lo Lhe
Commlsslon o 8ooc whlch held Lhem boLh llable
1he declslon was appealed Lo Lhe CourL of Appeals (CAC8 S no 19383
CAC8 S no 19639 and CAC8 S no 19660) ln a consolldaLed declslon
daLed 22 !uly 1992 Lhe appellaLe courL reversed Lhe SLC and seL aslde SLCs
order wlLhouL pre[udlce Lo Lhe rlghL of persons ln[ured Lo flle Lhe proper
acLlon for damages 1he Commlsslon has broughL Lhe case Lo Lhls CourL ln
Lhe lnsLanL peLlLlon for revlew on cettlototl conLendlng LhaL Lhe appellaLe
courL erred ln seLLlng aslde Lhe declslon of Lhe SLC whlch had (a) ordered Lhe
replacemenL of Lhe cerLlflcaLes of sLock of hllex and (b) lmposed flnes on
boLh lluLLl1? and CuALClnC
lssue
WCn Lhe CourL of Appeals erred ln seLLlng aslde Lhe declslon of SecurlLles
and Lxchange Commlsslon
8ullng
1he flrsL aspecL of Lhe SLC declslon appealed Lo Lhe CourL of Appeals le
LhaL porLlon whlch orders Lhe Lwo sLock Lransfer agencles Lo [olnLly replace
Lhe sub[ecL shares and for lluLLl1? Lo cause Lhe Lransfer Lhereof ln Lhe
names of Lhe buyers clearly calls for an exerclse of SLCs ad[udlcaLlve
[urlsdlcLlon 1hls case lL mlghL be recalled has sLarLed only on Lhe basls of a
requesL by lluLLl1? for an oplnlon from Lhe SLC 1he sLockholders who have
been deprlved of Lhelr cerLlflcaLes of sLock or Lhe persons Lo whom Lhe
forged cerLlflcaLes have ulLlmaLely been Lransferred by Lhe supposed
lndorsee Lhereof are yeL Lo lnlLlaLe lf mlnded an approprlaLe adversarlal
acLlon nelLher have Lhey been made parLles Lo Lhe proceedlngs now aL
bench A [usLlclable conLroversy such as can occaslon an exerclse of SLCs
excluslve [urlsdlcLlon would requlre an asserLlon of a rlghL by a proper parLy
agalnsL anoLher who ln Lurn conLesLs lL

lL ls one lnsLlLuLed by and agalnsL
parLles havlng lnLeresL ln Lhe sub[ecL maLLer approprlaLe for [udlclal
deLermlnaLlon predlcaLed on a glven sLaLe of facLs 1haL conLroversy musL be
ralsed by Lhe parLy enLlLled Lo malnLaln Lhe acLlon Pe ls Lhe person Lo whom
Lhe rlghL Lo seek [udlclal redress or rellef belongs whlch can be enforced
agalnsL Lhe parLy correspondlngly charged wlLh havlng been responslble for
or Lo have glven rlse Lo Lhe cause of acLlon A person or enLlLy Lasked wlLh
Lhe power Lo ad[udlcaLe sLands neuLral and lmparLlal and acLs on Lhe basls of
Lhe admlsslble represenLaLlons of Lhe conLendlng parLles
ln Lhe case aL bench Lhe proper parLles LhaL can brlng Lhe conLroversy and
can cause an exerclse by Lhe SLC of lLs orlglnal and excluslve [urlsdlcLlon
would be all or any of Lhose who are adversely affecLed by Lhe Lransfer of Lhe
pllfered cerLlflcaLes of sLock Any perempLory [udgmenL by Lhe SLC wlLhouL
such proceedlngs havlng flrsL been lnlLlaLed would be preclplLaLe We Lhus
see noLhlng erroneous ln Lhe declslon of Lhe CourL of Appeals olbelt noL for
Lhe reason glven by lL Lo seL aslde Lhe SLCs ad[udlcaLlon wlLhouL pre[udlce
Lo Lhe rlghL of persons ln[ured Lo flle Lhe necessary proceedlngs for
approprlaLe rellef
1he quesLlon on Lhe legal proprleLy of Lhe lmposlLlon by Lhe SLC of a 30000
flne on each of lluLLl1? and CuALClnC ls an enLlrely dlfferenL maLLer 1hls
Llme lL ls Lhe regulaLory power of Lhe SLC whlch ls lnvolved When on
appeal Lo Lhe CourL of Appeals Lhe laLLer seL aslde Lhe flnes lmposed by Lhe
SLC Lhe laLLer ln lLs lnsLanL peLlLlon can no longer be deemed [usL a nomlnal
parLy buL a real parLy ln lnLeresL sufflclenL Lo pursue an appeal Lo Lhls CourL
1he 8evlsed SecurlLles AcL (8aLas ambansa 8lg 178) ls deslgned ln maln Lo
proLecL publlc lnvesLors from fraudulenL schemes by regulaLlng Lhe sale and
dlsposlLlon of securlLles creaLlng for Lhls purpose a SecurlLles and Lxchange
Commlsslon Lo ensure proper compllance wlLh Lhe law
1here ls no quesLlon LhaL boLh lluLLl1? and CuALClnC have been gullLy of
negllgence ln Lhe conducL of Lhelr affalrs lnvolvlng Lhe quesLloned cerLlflcaLes
of sLock 1o consLlLuLe however a vlolaLlon of Lhe 8evlsed SecurlLles AcL LhaL
can warranL an lmposlLlon of a flne under SecLlon 29(3) ln relaLlon Lo SecLlon
46 of Lhe AcL fraud or decelL noL mere negllgence on Lhe parL of Lhe
offender musL be esLabllshed lraud here ls akln Lo bad falLh whlch lmplles a
consclous and lnLenLlonal deslgn Lo do a wrongful acL for a dlshonesL
purpose or moral obllqulLy lL ls unllke LhaL of Lhe negaLlve ldea of negllgence
ln LhaL fraud or bad falLh conLemplaLes a sLaLe of mlnd afflrmaLlvely
operaLlng wlLh furLlve ob[ecLlves Clven Lhe facLual clrcumsLances found by
Lhe appellaLe courL nelLher lluLLl1? nor CuALClnC olbelt lndeed remlss ln
7 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

Lhe observance of due dlllgence can be held llable under Lhe above
provlslons of Lhe 8evlsed SecurlLles AcL We do noL lmply however LhaL Lhe
negllgence commlLLed by prlvaLe respondenLs would noL aL all be acLlonable
upon Lhe oLher hand as we have earller lnLlmaLed such an acLlon belongs
noL Lo Lhe SLC buL Lo Lhose whose rlghLs have been ln[ured
IIkS1 LLAN1C CLkAMICS INC petitioner vs nCN CCUk1 CI ALALS
and MAkIWASA MANUIAC1UkING INC respondents
lacLs
SoughL Lo be reversed by Lhe CourL ls Lhe 13Lh AugusL 1993 declslon of Lhe
CourL of Appeals nulllfylng Lhe approval
1
daLed 10 uecember 1992 by Lhe
8oard of lnvesLmenLs (8Cl") of Lhe appllcaLlon of llrsL LepanLo Ceramlcs
lnc for an amendmenL of lLs CerLlflcaLe of 8eglsLraLlon no L 89432 LhaL
would change Lhe reglsLered producL from glazed floor Llles" Lo ceramlc
Llles"
llrsL LepanLo was by vlrLue of lLs reglsLraLlon granLed nonflscal and flscal
lncenLlves by Lhe 8Cl lncludlng an exempLlon from Laxes on raw maLerlals
and Lax and duLy exempLlon on lLs lmporLed caplLal equlpmenL
rlvaLe respondenL ,otlwoso ,ooofoctotloq loc a compeLlLor of llrsL
LepanLo ls also reglsLered wlLh Lhe 8Cl as a nonploneer producer of ceramlc
Llles (CerLlflcaLe of 8eglsLraLlon no 89427)
ln a leLLer daLed 10 AugusL 1991 addressed Lo Lhe 8Cl llrsL LepanLo
requesLed for an amendmenL of lLs reglsLered producL Lo ceramlc Llles" ln
order Lo llkewlse enable lL Lo manufacLure ceramlc wall Llles however
before Lhe 8Cl could acL on llrsL LepanLo's requesL for amendmenL
Marlwasa and lllPlspano Ceramlcs lnc already had on flle Lhelr separaLe
complalnLs wlLh Lhe 8Cl agalnsL llrsL LepanLo for vlolaLlng Lhe Lerms and
condlLlons of lLs reglsLraLlon by Lhe use of lLs Lax and duLyfree equlpmenL ln
Lhe producLlon of ceramlc wall Llles
Cn 30 Aprll 1992 Lhe 8Cl rendered a declslon flndlng llrsL LepanLo gullLy and
lmposlng on Lhe laLLer a flne of 79793040 wlLhouL pre[udlce Lo an
lmposlLlon of addlLlonal penalLy should llrsL LepanLo conLlnue Lo commlL Lhe
same vlolaLlon and 2) Lo Lhe 8oard's auLhorlLy Lo conslder/evaluaLe llrsL
LepanLo's requesL for an amendmenL of lLs cerLlflcaLe of reglsLraLlon
lncludlng among oLher Lhlngs a change ln lLs reglsLered producL from
glazed floot Llles" Lo ceramlc Llles"
3

AfLer paylng Lhe lmposed flne llrsL LepanLo on 20 !une 1992 formally flled
lLs appllcaLlon wlLh Lhe 8Cl (dockeLed 8l cose No 92005)
4
to amend lLs
reglsLered producL from glazed floor Llles" Lo ceramlc Llles"
Cn 06 AugusL 1992 anoLher verlfled complalnL was flled by Marlwasa wlLh
Lhe 8Cl (dockeLed 8Cl Case no 92004) whlch asseveraLed LhaL desplLe
8Cl's flndlng LhaL llrsL LepanLo had vlolaLed Lhe Lerms and condlLlons of lLs
reglsLraLlon Lhe laLLer sLlll conLlnued wlLh lLs unauLhorlzed producLlon and
sale of ceramlc wall Llles 8espondenL 8Cl dlsmlssed Lhe complalnL for lack of
merlL
3
lLs moLlon for reconslderaLlon havlng been denled Marlwasa
appealed Lhe case Lo Lhe Cfflce of Lhe resldenL
6

ln Lhe meanLlme llrsL LepanLo caused Lhe publlcaLlon on 24 SepLember
1992 ln Lhe Manlla 8ulleLln of a noLlce on Lhe offlclal flllng wlLh Lhe 8Cl of
Lhe aforemenLloned appllcaLlon for amendmenL of CerLlflcaLe of 8eglsLraLlon
no L 89432 (8Cl Case no 92005)
7
Marlwasa opposed Lhe appllcaLlon
Cn 10 uecember 1992 respondenL 8Cl handed down lLs declslon approvlng
llrsL LepanLo's appllcaLlon
Marlwasa wenL Lo Lhe CourL of Appeals vlo a peLlLlon for revlew wlLh an
appllcaLlon for a wrlL of prellmlnary ln[uncLlon and/or Lemporary resLralnlng
order assalllng Lhe declslon of Lhe 8Cl Cn 17 lebruary 1992 Lhe appellaLe
courL lssued a Lemporary resLralnlng order en[olnlng Lhe 8Cl and llrsL
LepanLo from enforclng or execuLlng Lhe assalled rullng llrsL LepanLo moved
for Lhe dlsmlssal of Lhe peLlLlon and Lo llfL Lhe resLralnlng order 1he moLlon
was denled Cn 13 AugusL 1993 Lhe CourL of Appeals rendered lLs now
dlspuLed declslon
8
annulllng Lhe 10Lh uecember 1992 declslon of Lhe 8Cl
llrsL LepanLo moved for a reconslderaLlon buL lL was denled
lssue__________________________________________________________
_________________________________________________
8uLlnC 1he challenged declslon of Lhe appellaLe courL annulllng Lhe 8Cl
declslon ln Case no 92003 ls anchored malnly on Lhe facL LhaL Lhe 8Cl dld
noL hold ln abeyance lLs acLlon on llrsL LepanLo's appllcaLlon for amendmenL
of lLs cerLlflcaLe of reglsLraLlon unLll afLer 8Cl Case no 92004 would have
been flnally resolved lL has descrlbed Lhe granL by Lhe 8Cl of llrsL LepanLo's
appllcaLlon Lo be premaLure" and an exerclse ln fuLlllLy" ln Lhe sense LhaL
(l)f a declslon ls rendered ln aforesald 8Cl case (92004) flndlng merlL ln Lhe
complalnL lL lsoot fotfetcb LhaL cancellaLlon of (llrsL LepanLo's) cerLlflcaLe of
reglsLraLlon may be ordered" lL ls unaccepLable ln our vlew for Lhe
appellaLe courL Lo base lLs perempLory [udgmenL on a con[ecLure le Lhe
posslblllLy LhaL 8Cl Case no 92004 could be declded agalnsL peLlLloner and
Lo secondguess Lhe 8Cl on whaL lL would do ln Lhe evenL of such an adverse
rullng 1he appellaLe courL lLself has recognlzed LhaL Lhe flnal resulLs of Lhe
conLroversy ln 8Cl Case no 92004 cannoL necessarlly foreclose or
clrcumscrlbe Lhe acLlon LhaL may be had on llrsL LepanLo's appllcaLlon for
amendmenL under ChapLer ll ArL 7(8) of LC no 226
9
Lhe 8Cl need noL
cancel Lhe cerLlflcaLe of a reglsLranL found Lo have lnfrlnged Lhe Lerms and
condlLlons of lLs reglsLraLlon
8aLher slgnlflcanL ls Lhe facL LhaL Lo hold Lhe 8Cl from Laklng acLlon on llrsL
LepanLo's appllcaLlon would be Lo defeaL Lhe declaraLlon of lnvesLmenL
pollcles expressed ln Lhe law vlz
A81 2 ueclaraLlon of lnvesLmenL ollcles 1o acceleraLe Lhe sound
developmenL of Lhe naLlonal economy ln consonance wlLh Lhe prlnclples and
ob[ecLlves of economlc naLlonallsm and ln pursuance of a planned
economlcally feaslble and pracLlcal dlspersal of lndusLrles and Lhe promoLlon
of small and medlum scale lndusLrles under condlLlon whlch wlll encourage
compeLlLlon and dlscourage monopolles"
10

1he 8Cl ls Lhe agency Lasked wlLh evaluaLlng Lhe feaslblllLy of an lnvesLmenL
pro[ecL and Lo declde whlch lnvesLmenL mlghL be compaLlble wlLh lLs
developmenL plans 1he exerclse of admlnlsLraLlve dlscreLlon ls a pollcy
declslon and a maLLer LhaL can besL be dlscharged by Lhe governmenL agency
concerned and noL by Lhe courLs
11
8Cl has allowed Lhe amendmenL of llrsL
LepanLo's producL llne because LhaL agency belleves LhaL allowlng llrsL
LepanLo Lo manufacLure wall Llles as well wlll glve lL Lhe needed Lechnlcal and
markeL flexlblllLy a key facLor Lo enable Lhe flrm Lo evenLually peneLraLe Lhe
world markeL and meeL lLs exporL requlremenLs"
12
ln lellpe ?smael !r
Co lnc vs uepuLy LxecuLlve SecreLary
13
we have already sald and now sLlll
relLeraLe LhaL "x x x whlle Lhe admlnlsLraLlon grapples wlLh Lhe complex and
mulLlfarlous problems caused by unbrldled explolLaLlon of Lhese resources
Lhe [udlclary wlll sLand clear A long llne of cases esLabllsh Lhe baslc rule LhaL
Lhe courLs wlll noL lnLerfere ln maLLers whlch are addressed Lo Lhe sound
dlscreLlon of governmenL agencles enLrusLed wlLh Lhe regulaLlon of acLlvlLles
comlng under Lhe speclal Lechnlcal knowledge and Lralnlng of such agencles"
8AN1CLINC et a| VS CCCA CCLA
lacLs
Cn 13 lebruary 1993 slxLyLwo (62) employees of respondenL CocaCola
8oLLlers lnc and lLs offlcers Llpercon Servlces lnc eoples SpeclallsL
Servlces lnc and lnLerlm Servlces lnc flled a complalnL agalnsL
respondenLs for unfalr labor pracLlce Lhrough lllegal dlsmlssal vlolaLlon of
Lhelr securlLy of Lenure and Lhe perpeLuaLlon of Lhe Cabo SysLem 1hey
Lhus prayed for relnsLaLemenL wlLh full back wages and Lhe declaraLlon of
Lhelr regular employmenL sLaLus ln subsLance Lhe complalnanLs averred
LhaL ln Lhe performance of Lhelr duLles as rouLe helpers boLLle segregaLors
and oLhers Lhey were employees of respondenL CocaCola 8oLLlers lnc 1hey
furLher malnLalned LhaL when respondenL company replaced Lhem and
prevenLed Lhem from enLerlng Lhe company premlses Lhey were deemed Lo
have been lllegally dlsmlssed
8 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

ln lleu of a poslLlon paper respondenL company flled a moLlon Lo dlsmlss
complalnL for lack of [urlsdlcLlon and cause of acLlon Lhere belng no
employeremployee relaLlonshlp beLween complalnanLs and CocaCola
8oLLlers lnc and LhaL respondenLs Llpercon Servlces eoples SpeclallsL
Servlces and lnLerlm Servlces belng booo flJelndependenL conLracLors were
Lhe real employers of Lhe complalnanLs
3
As regards Lhe corporaLe offlcers
respondenL lnslsLed LhaL Lhey could noL be faulLed and be held llable for
damages as Lhey only acLed ln Lhelr offlclal capaclLles whlle performlng Lhelr
respecLlve duLles
Cn 29 May 1998 Labor ArblLer !ose ue vera rendered a declslon orderlng
respondenL company Lo relnsLaLe complalnanLs Lo Lhelr former poslLlons
wlLh all Lhe rlghLs prlvlleges and beneflLs due regular employees and Lo pay
Lhelr full back wages whlch wlLh Lhe excepLlon of rudenclo 8anLollno
whose back wages musL be compuLed upon proof of hls dlsmlssal as of 31
May 1998 already amounLed Lo an aggregaLe of 181024400 Cn appeal
Lhe nL8C susLalned Lhe flndlng of Lhe Labor ArblLer LhaL Lhere was lndeed an
employeremployee relaLlonshlp beLween Lhe complalnanLs and respondenL
company when lL afflrmed lo toto Lhe laLLers declslon
ln a resoluLlon daLed 17 !uly 2001 Lhe nL8C subsequenLly denled for lack of
merlL respondenLs moLlon for conslderaLlon
8espondenL CocaCola 8oLLlers appealed Lo Lhe CourL of Appeals whlch
alLhough afflrmlng Lhe flndlng of Lhe nL8C LhaL an employeremployee
relaLlonshlp exlsLed beLween Lhe conLendlng parLles noneLheless agreed
wlLh respondenL LhaL Lhe affldavlLs of some of Lhe complalnanLs namely
rudenclo 8anLollno nesLor 8omero nllo Lsplna 8lcardo 8arLolome Lluver
Carcla Lduardo Carcla and nelson ManalasLas should noL have been glven
probaLlve value for Lhelr fallure Lo afflrm Lhe conLenLs Lhereof and Lo
undergo crossexamlnaLlon As a consequence Lhe appellaLe courL dlsmlssed
Lhelr complalnLs for lack of sufflclenL evldence
lssue WCn Lhe glvlng evldenLlary value Lo Lhe affldavlLs desplLe Lhe fallure
of Lhe afflanLs Lo afflrm Lhelr conLenLs and undergo Lhe LesL of cross
examlnaLlon ls proper?
Peld ?es ln koboqo v Nlkc we held LhaL Lhe argumenL LhaL Lhe affldavlL ls
hearsay because Lhe afflanLs were noL presenLed for crossexamlnaLlon ls noL
persuaslve because Lhe rules of evldence are noL sLrlcLly observed ln
proceedlngs before admlnlsLraLlve bodles llke Lhe nL8C where declslons may
be reached on Lhe basls of poslLlon papers only 1o requlre oLherwlse would
be Lo negaLe Lhe raLlonale and purpose of Lhe summary naLure of Lhe
proceedlngs mandaLed by Lhe 8ules and Lo make mandaLory Lhe appllcaLlon
of Lhe Lechnlcal rules of evldence under ArL 221 of Lhe Labor Code Lhe rules
of evldence prevalllng ln courLs of law do noL conLrol proceedlngs before Lhe
Labor ArblLer and Lhe nL8C lurLher lL noLes LhaL Lhe Labor ArblLer and Lhe
nL8C are auLhorlzed Lo adopL reasonable means Lo ascerLaln Lhe facLs ln
each case speedlly and ob[ecLlvely and wlLhouL regard Lo LechnlcallLles of law
and procedure all ln Lhe lnLeresL of due process
admlnlsLraLlve bodles llke Lhe nL8C are noL bound by Lhe Lechnlcal nlceLles of
law and procedure and Lhe rules obLalnlng ln courLs of law lndeed Lhe
8evlsed 8ules of CourL and prevalllng [urlsprudence may be glven only
sLrlngenL appllcaLlon le by analogy or ln a suppleLory characLer and effecL
1he submlsslon by respondenL clLlng leople v ottel
12
LhaL an affldavlL noL
LesLlfled Lo ln a Lrlal ls mere hearsay evldence and has no real evldenLlary
value cannoL flnd relevance ln Lhe presenL case conslderlng LhaL a crlmlnal
prosecuLlon requlres a quanLum of evldence dlfferenL from LhaL of an
admlnlsLraLlve proceedlng under Lhe 8ules of Lhe Commlsslon Lhe Labor
ArblLer ls glven Lhe dlscreLlon Lo deLermlne Lhe necesslLy of a formal Lrlal or
hearlng Pence LrlalLype hearlngs are noL even requlred as Lhe cases may be
declded based on verlfled poslLlon papers wlLh supporLlng documenLs and
Lhelr affldavlLs
Cn 26 uecember 1993 respondenL spouses flled a complalnL for damages
agalnsL peLlLloner SanLo 1omas unlverslLy PosplLal wlLh Lhe 8eglonal 1rlal
CourL of Cuezon ClLy predlcaLed on an allegaLlon by Lhe spouses LhaL Lhelr
son Lmmanuel Cesar Surla whlle conflned aL Lhe sald hosplLal for havlng
been born premaLurely had accldenLally fallen from hls lncubaLor on 16 Aprll
1993 posslbly causlng serlous harm on Lhe chlld 1he case was raffled and
asslgned Lo 8ranch 226 of Lhe 8eglonal 1rlal CourL of Cuezon ClLy preslded
over by Lhe Pon Leah S uomlngo8egala and Lhere dockeLed Clvll Case no
C9323977
SAN1C 1CMAS UNIVLkSI1 nCSI1AL vs CLSAk AN1CNIC SUkLA and
LVANGLLINL SUkLA
Iacts Cn 28 lebruary 1996 peLlLloner hosplLal flled lLs Answer wlLh
Compulsory CounLerclalm" asserLlng LhaL respondenLs sLlll owed Lo lL Lhe
amounL of 8263210 represenLlng hosplLal bllls for Lmmanuel's
conflnemenL aL Lhe hosplLal and maklng a clalm for moral and exemplary
damages plus aLLorney's fees by reason of Lhe supposed unfounded and
mallclous sulL flled agalnsL lL Cn 28 lebruary 1996 peLlLloner hosplLal flled
lLs Answer wlLh Compulsory CounLerclalm" asserLlng LhaL respondenLs sLlll
owed Lo lL Lhe amounL of 8263210 represenLlng hosplLal bllls for
Lmmanuel's conflnemenL aL Lhe hosplLal and maklng a clalm for moral and
exemplary damages plus aLLorney's fees by reason of Lhe supposed
unfounded and mallclous sulL flled agalnsL lL
Cn 21 March 1996 peLlLloner recelved a copy of respondenLs' 8eply Lo
CounLerclalm daLed 12 March 1996 LhaL soughL dlsmlssal of peLlLloner's
counLerclalm for lLs noncompllance wlLh Supreme CourL AdmlnlsLraLlve
Clrcular no 0494 requlrlng LhaL a complalnL and oLher lnlLlaLory pleadlngs
such as a counLerclalm crossclalm Lhlrd (fourL eLc) parLy complalnL be
accompanled wlLh a cerLlflcaLe of nonforum shopplng
ln lLs 8e[olnder Lo respondenLs' 8eply Lo CounLerclalm peLlLloner conLended
LhaL Lhe sub[ecL clrcular should be held Lo refer only Lo a permlsslve
counLerclalm an lnlLlaLory pleadlng noL arlslng ouL of nor necessarlly
connecLed wlLh Lhe sub[ecL maLLer of Lhe plalnLlff's clalm buL noL Lo a
compulsory counLerclalm spawned by Lhe flllng of a complalnL and so
lnLerLwlned LherewlLh and loglcally relaLed LhereLo LhaL lL verlly could noL
sLand for lndependenL ad[udlcaLlon
ln lLs Crder of 22 March 1996 Lhe Lrlal courL dlsmlssed peLlLloner's
counLerclalmlL heldCn 16 Aprll 1996 peLlLloner flled before Lhe same courL
an Cmnlbus MoLlon seeklng a clarlflcaLlon of Lhe courL's Crder of 14 March
1996 denylng respondenLs' 8eply Lo CounLerclalm and reconslderaLlon of Lhe
22
nd
March 1996 Crder dlsmlsslng Lhe compulsory counLerclalm
3
Cn 22
Aprll 1996 peLlLloner recelved a copy of Lhe courL's Crder daLed 16 Aprll
1996 noLlng Lhe plalnLlffs counLerclalmeLlLloner forLhwlLh elevaLed Lhe
maLLer Lo Lhe CourL of Appeals by way of a speclal clvll acLlon
for cettlototl under 8ule 63 8evlsed 8ules of CourL asseveraLlng grave abuse
of dlscreLlon by publlc respondenL ln dlsmlsslng Lhe compulsory counLerclalm
and ln espouslng Lhe vlew LhaL AdmlnlsLraLlve Clrcular no 0494 should
apply even Lo compulsory counLerclalms
1he CourL of Appeals ln lLs ueclslon promulgaLed on 12 March 1997
dlsmlssed Lhe peLlLlon for cettlototl
lDWCn@be coott of Appeols (bos) commltteJ setloos evlJeot ooJ
polpoble ettot lo tolloq tbot @ lclAl clvll Ac@lN l ck@lkAkl
DNuk kDl 65 l @ kvlu kDl l cDk@ l DNAvAlllNC
PLLu ?LS1he concepL of a flnal [udgmenL or order dlsLlngulshed form an
lnLerlocuLory lssuance ls LhaL Lhe former declslvely puLs Lo a close or
dlsposes of a case or a dlspuLed lssue leavlng noLhlng else Lo be done by Lhe
courL ln respecL LhereLo Cnce LhaL [udgmenL or order ls rendered Lhe
ad[udlcaLlve Lask of Lhe courL ls llkewlse ended on Lhe parLlcular maLLer
lnvolved
7
An order ls lnLerlocuLory upon Lhe oLher hand lf lLs effecLs would
only be provlslonal ln characLer and would sLlll leave subsLanLlal proceedlngs
Lo be furLher had by Lhe lssulng courL ln order Lo puL Lhe conLroversy Lo
resL
8

1he order of Lhe Lrlal courL dlsmlsslng peLlLloner's counLerclalm was a flnal
order slnce Lhe dlsmlssal alLhough based on a LechnlcallLy would requlre
noLhlng else Lo be done by Lhe courL wlLh respecL Lo Lhe speclflc sub[ecL
excepL only Lo awalL Lhe posslble flllng durlng Lhe reglemenLary perlod of a
moLlon for reconslderaLlon or Lhe Laklng of an appeal Lherefrom
9 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

As a rule errors of [udgmenL as well as of procedure nelLher relaLlng Lo Lhe
[urlsdlcLlon of Lhe courL nor lnvolvlng grave abuse of dlscreLlon are noL
revlewable by Lhe exLraordlnary remedy of cettlototl
9
As long as a courL
acLs wlLhln lLs [urlsdlcLlon and does noL gravely abuse lLs dlscreLlon ln Lhe
exerclse Lhereof any supposed error commlLLed by lL wlll amounL Lo noLhlng
more Lhan an error of [udgmenL revlewable by a Llmely appeal and noL
assallable by a speclal clvll acLlon for cettlototl
10
1hls rule however ls noL a
rlgld and lnflexlble LechnlcallLy 1hls CourL has noL Loo lnfrequenLly glven due
course Lo a peLlLlon for cettlototl even when Lhe proper remedy would have
been an appeal where valld and compelllng conslderaLlons could warranL
such a recourse
11
cettlototl has been deemedLo be [usLlfled for lnsLance ln
order Lo prevenL lrreparable damage and ln[ury Lo a parLy where Lhe Lrlal
[udge has caprlclously and whlmslcally exerclsed hls [udgmenL or where an
ordlnary appeal would slmply be lnadequaLe Lo relleve a parLy from Lhe
ln[urlous effecLs of Lhe [udgmenL complalned of
12

ln Lhe case aL bar an appeal from Lhe dlsmlssal of Lhe counLerclalm alLhough
noL LoLally unavallable could have well been lneffecLlve lf noL fuLlle as far as
peLlLloner ls concerned slnce no slngle plece of evldence has yeL been
presenLed by lL Lhe opporLunlLy havlng been foreclosed by Lhe Lrlal courL on
Lhe dlsmlssed counLerclalm whlch could form parL of Lhe records Lo be
revlewed by Lhe appellaLe courL 1he ob[ecL of procedural law ls noL Lo cause
an undue proLracLlon of Lhe llLlgaLlon buL Lo faclllLaLe Lhe ad[udlcaLlon of
confllcLlng clalms and Lo serve raLher Lhan Lo defeaL Lhe ends of [usLlce
13

1he perLlnenL provlslons of AdmlnlsLraLlve Clrcular no 0494 provlde
1 1he plalnLlff peLlLloner appllcanL or prlnclpal parLy seeklng rellef ln Lhe
complalnL peLlLlon appllcaLlon or oLher lnlLlaLory pleadlng shall cerLlfy under
oaLh ln such orlglnal pleadlng or ln a sworn cerLlflcaLlon annexed LhereLo
and slmulLaneously flled LherewlLh Lo Lhe LruLh of Lhe followlng facLs and
underLaklngs (a) he has noL LhereLofore commenced any oLher acLlon or
proceedlng lnvolvlng Lhe same lssues ln Lhe Supreme CourL Lhe CourL of
Appeals or any oLher Lrlbunal or agency (b) Lo Lhe besL of hls knowledge no
such acLlon or proceedlng ls pendlng ln Lhe Supreme CourL Lhe CourL of
Appeals or any oLher Lrlbunal or agency (c) lf Lhere ls any such acLlon or
proceedlng whlch ls elLher pendlng or may have been LermlnaLed he musL
sLaLe Lhe sLaLus Lhereof and (d) lf he should LhereafLer learn LhaL a slmllar
acLlon or proceedlng has been flled or ls pendlng before Lhe Supreme CourL
Lhe CourL of Appeals or any oLher Lrlbunal or agency he underLakes Lo reporL
LhaL facL wlLhln flve (3) days Lherefrom Lo Lhe courL or agency whereln Lhe
orlglnal pleadlng and sworn cerLlflcaLlon conLemplaLed here have been flled
1he complalnL and oLher lnlLlaLory pleadlngs referred Lo and sub[ecL of Lhls
Clrcular are Lhe or|g|na| c|v|| comp|a|nt counterc|a|m crossc|a|m th|rd
(fourth etc) party comp|a|nt or comp|a|nt|n|ntervent|on pet|t|on or
app||cat|on where|n a party asserts h|s c|a|m for re||ef" (Lmphasls supplled)
LhaL Lhe real offlce of AdmlnlsLraLlve Clrcular no 0494 made effecLlve on 01
Aprll 1994 ls Lo curb Lhe malpracLlce commonly referred Lo also as forum
shopplng lL ls an acL of a parLy agalnsL whom an adverse [udgmenL has been
rendered ln one forum of seeklng and posslbly geLLlng a favorable oplnlon ln
anoLher forum oLher Lhan by appeal or Lhe speclal clvll acLlon of cettlototl
or Lhe lnsLlLuLlon of Lwo or more acLlons or proceedlngs grounded on Lhe
same cause on Lhe supposlLlon Lha Lone or Lhe oLher courL would make a
favorable dlsposlLlon
14
1he language of Lhe clrcular dlsLlncLly suggesLs LhaL
lL ls prlmarlly lnLended Lo cover an lnlLlaLory pleadlng or an lnclplenL
appllcaLlon of a parLy asserLlng a clalm for rellefL should noL be Loo dlfflculL
Lhe foregolng raLlonale of Lhe clrcular apLly Laken Lo susLaln Lhe vlew LhaL
Lhe clrcular ln quesLlon has noL ln facL been conLemplaLed Lo lnclude a klnd
of clalm whlch by lLs very naLure as belng auxlllary Lo Lhe proceedlngs ln Lhe
sulL and as derlvlng lLs subsLanLlve and [urlsdlcLlonal supporL Lherefrom can
only be approprlaLely pleaded ln Lhe answer and noL remaln ouLsLandlng for
lndependenL resoluLlon excepL by Lhe courL where Lhe maln case
pends resclndlng from Lhe foregolng Lhe ptovlslo ln Lhe second paragraph
of SecLlon 3 8ule 8 of Lhe 1997 8ules on Clvll rocedure le LhaL Lhe
vlolaLlon of Lhe anLlforum shopplng rule shall noL be curable by mere
amendmenL x x x buL shall be cause for Lhe dlsmlssal of Lhe case wlLhouL
pre[udlce" belng predlcaLed on Lhe appllcablllLy of Lhe need for a
cerLlflcaLlon agalnsL forum shopplng obvlously does noL lnclude a clalm
whlch cannoL be lndependenLly seL up
eLlLloner neverLheless ls enLlLled Lo a mere parLlal rellef 1he so called
counLerclalm" of peLlLloner really conslsLs of Lwo segregaLlve parLs (1) for
unpald hosplLal bllls of respondenL's son Lmmanuel Surla ln Lhe LoLal
amounL of 8263210 and (2) for damages moral and exemplary plus
aLLorney's fees by reason of Lhe alleged mallclous and unfounded sulL flled
agalnsL lL
16
lL ls Lhe second noL Lhe flrsL clalm LhaL Lhe CourL here refers Lo
as noL belng lnlLlaLory ln characLer andLhereby noL covered by Lhe provlslons
of AdmlnlsLraLlve Clrcular no 0494
CCkCNA vs UnA
lacLs1he A was creaLed on !uly 11 1974 by vlrLue of resldenLlal uecree
no 303 Cn uecember 23 1973 resldenLlal uecree no 837 was lssued
revlslng Lhe A's charLer ursuanL Lo lLs power of conLrol regulaLlon and
supervlslon of plloLs and Lhe plloLage professlon
1
Lhe A promulgaLed
AAC0383
2
on March 21 1983 whlch embodled Lhe 8ules and
8egulaLlons Covernlng lloLage Servlces Lhe ConducL of lloLs and lloLage
lees ln hlllpplne orLs" 1hese rules mandaLe lotet ollo LhaL asplrlng plloLs
musL be holders of plloL llcenses
3
and musL Lraln as probaLlonary plloLs ln
ouLporLs for Lhree monLhs and ln Lhe orL of Manlla for four monLhs lL ls
only afLer Lhey have achleved saLlsfacLory performance
4
LhaL Lhey are
glven permanenL and regular appolnLmenLs by Lhe A lLself
3
Lo exerclse
harbor plloLage unLll Lhey reach Lhe age of 70 unless sooner removed by
reason of menLal or physlcal unflLness by Lhe A Ceneral Manager
SubsequenLly Lhen A Ceneral Manager 8ogello A uayan lssued AAC
no 0492
7
on !uly 13 1992 whose avowed pollcy was Lo lnsLlll effecLlve
dlsclpllne and Lhereby afford beLLer proLecLlon Lo Lhe porL users Lhrough Lhe
lmprovemenL of plloLage servlces" 1hls was lmplemenLed by provldlng
Lhereln LhaL all exlsLlng regular appolnLmenLs whlch have been prevlously
lssued elLher by Lhe 8ureau of CusLoms or Lhe A shall remaln valld up Lo 31
uecember 1992 only" and LhaL all appolnLmenLs Lo harbor plloL poslLlons ln
all plloLage dlsLrlcLs shall henceforLh be only for a Lerm of one (1) year from
daLe of effecLlvlLy sub[ecL Lo yearly renewal or cancellaLlon by Lhe AuLhorlLy
afLer conducL of a rlgld evaluaLlon of performance"
Cn AugusL 12 1992 respondenLs unlLed Parbor lloLs AssoclaLlon and Lhe
Manlla lloLs AssoclaLlon Lhrough CapL AlberLo C Compas quesLloned A
AC no 0492 before Lhe ueparLmenL of 1ransporLaLlon and CommunlcaLlon
buL Lhey were lnformed by Lhen uC1C SecreLary !esus 8 Carcla LhaL Lhe
maLLer of revlewlng recalllng or annulllng A's admlnlsLraLlve lssuances lles
excluslvely wlLh lLs 8oard of ulrecLors as lLs governlng body"
Meanwhlle on AugusL 31 1992 Lhe A lssued Memorandum Crder no 08
92
8
whlch lald down Lhe crlLerla or facLors Lo be consldered ln Lhe
reappolnLmenL of harbor plloLsvlz (1) Cuallfylng lacLors
9
safeLy record
and physlcal/menLal medlcal exam reporL and (2) CrlLerla for
LvaluaLlon
10
prompLness ln servlclng vessels compllance wlLh A lloLage
Culdellnes number of years as a harbor plloL average C81 of vessels
servlced as plloL awards/commendaLlons as harbor plloL and age
8espondenLs relLeraLed Lhelr requesL for Lhe suspenslon of Lhe
lmplemenLaLlon of AAC no 0492 buL SecreLary Carcla lnslsLed on hls
poslLlon LhaL Lhe maLLer was wlLhln Lhe [urlsdlcLlon of Lhe 8oard of ulrecLors
of Lhe A Compas appealed Lhls rullng Lo Lhe Cfflce of Lhe resldenL (C)
relLeraLlng hls argumenLs before Lhe uC1C
Cn uecember 23 1992 Lhe C lssued an order dlrecLlng Lhe A Lo hold ln
abeyance Lhe lmplemenLaLlon of AAC no 0492 A counLered LhaL sald
admlnlsLraLlve order was lssued ln Lhe exerclse of lLs admlnlsLraLlve conLrol
and supervlslon over harbor plloLs under SecLlon 6a (vlll) ArLlcle lv of u
no 837 as amended and lL along wlLh lLs lmplemenLlng guldellnes was
lnLended Lo resLore order ln Lhe porLs and Lo lmprove Lhe quallLy of porL
servlces
Cn March 17 1993 Lhe C Lhrough Lhen AsslsLanL LxecuLlve SecreLary for
Legal Affalrs 8enaLo C Corona dlsmlssed Lhe appeal/peLlLlon and llfLed Lhe
resLralnlng order lssued earller
11
Pe concluded LhaL AAC no 0492
1 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

applled Lo all harbor plloLs and for all lnLenLs and purposes was noL Lhe acL
of uayan buL of Lhe A whlch was merely lmplemenLlng SecLlon 6 of u
no 837 mandaLlng lL Lo conLrol regulaLe and supervlse plloLage and
conducL of plloLs ln any porL dlsLrlcL"
Cn March 17 1993 Lhe C Lhrough Lhen AsslsLanL LxecuLlve SecreLary for
Legal Affalrs 8enaLo C Corona dlsmlssed Lhe appeal/peLlLlon and llfLed Lhe
resLralnlng order lssued earller
11
Pe concluded LhaL AAC noapplled Lo
all harbor plloLs and for all lnLenLs and purposes was noL Lhe acL of uayan
buL of Lhe A whlch was merely lmplemenLlng SecLlon 6 of u no 837
mandaLlng lL Lo conLrol regulaLe and supervlse plloLage and conducL of
plloLs ln any porL dlsLrlcL Also on Lhe alleged absence of prlor consulLaLlon
Lhe secreLary oplned LhaL Lhe requlremenL has been complled wlLh
ConsequenLly respondenLs flled a peLlLlon for cerLlorarl prohlblLlon and
ln[uncLlon wlLh prayer for Lhe lssuance of a Lemporary resLralnlng order and
damages before 8ranch 6 of Lhe 8eglonal 1rlal CourL of Manlla whlch
rendered a declslslon ln Lherlr favor
lSSuLS WCn 8espondenLs (hereln peLlLloners) have acLed ln excess of
[urlsdlcLlon and wlLh grave abuse of dlscreLlon and ln a caprlclous whlmslcal
and arblLrary manner ln promulgaLlng A AdmlnlsLraLlve Crder 0492
lncludlng all lLs lmplemenLlng Memoranda Clrculars and Crders
PLLu Sect|on 1 of the 8||| of k|ghts |ays down what |s known as the "due
process c|ause" of the Const|tut|on vit
SLC1ICN 1 No person sha|| be depr|ved of ||fe ||berty or property w|thout
due process of |aw x x x"
ln order Lo fall wlLhln Lhe aegls of Lhls provlslon Lwo condlLlons musL concur
namely LhaL Lhere ls a deprlvaLlon and LhaL such deprlvaLlon ls done wlLhouL
proper observance of due process When one speaks of due process of law
however a dlsLlncLlon musL be made beLween maLLers of procedure and
maLLers of subsLance ln essence procedural due process refers Lo Lhe
meLhod or manner by whlch Lhe law ls enforced" whlle subsLanLlve due
process requlres LhaL Lhe law lLself noL merely Lhe procedures by whlch Lhe
law would be enforced ls falr reasonable and [usL"
14
AAC no 0492
musL be examlned ln llghL of Lhls dlsLlncLlonln Lhe case aL bar respondenLs
quesLloned AAC no 0492 no less Lhan four Llmes
16
before Lhe maLLer
was flnally elevaLed Lo Lhls 1rlbunal 1helr argumenLs on Lhls score however
fall Lo persuade Whlle respondenLs emphaslze LhaL Lhe hlllpplne CoasL
Cuard whlch lssues Lhe llcenses of plloLs afLer admlnlsLerlng Lhe plloLs'
examlnaLlons" was noL consulLed
17
Lhe facLs show LhaL Lhe MA8lnA whlch
Look over Lhe llcenslng funcLlon of Lhe hlllpplne CoasL Cuard was duly
represenLed ln Lhe 8oard of ulrecLors of Lhe A 1hus peLlLloners correcLly
argued LhaL Lhere belng no maLLers of naval defense lnvolved ln Lhe lssuance
of LheadmlnlsLraLlve order Lhe hlllpplne CoasL Cuard need noL be
consulLed
18

nelLher does Lhe facL LhaL Lhe plloLs Lhemselves were noL consulLed ln any
way LalnL Lhe valldlLy of Lhe admlnlsLraLlve order
As a general rule noLlce and hearlng as Lhe fundamenLal requlremenLs of
procedural due process are essenLlal only when an admlnlsLraLlve body
exerclses lLs quasl[udlclal funcLlon ln Lhe performance of lLs execuLlve or
leglslaLlve funcLlons such as lssulng rules and regulaLlons an admlnlsLraLlve
body need noL comply wlLh Lhe requlremenLs of noLlce and hearlngupon
Lhe oLher hand lL ls also conLended LhaL Lhe sole and excluslve rlghL Lo Lhe
exerclse of harbor plloLage by plloLs ls a seLLled lssue 8espondenLs aver LhaL
sald rlghL has become vesLed and can only be wlLhdrawn or shorLened" by
observlng Lhe consLlLuLlonal mandaLe of due process of law 1helr argumenL
has Lhus shlfLed from Lhe procedural Lo one of subsLance lL ls here where
AAC no 0492 falls Lo meeL Lhe condlLlon seL by Lhe organlc law
lloLage [usL llke oLher professlons may be pracLlced only by duly llcensed
lndlvlduals Llcensure ls Lhe granLlng of llcense especlally Lo pracLlce a
professlon" lL ls also Lhe sysLem of granLlng llcenses (as for professlonal
pracLlce) ln accordance wlLh esLabllshed sLandards"
21
A llcense ls a rlghL or
permlsslon granLed by some compeLenL auLhorlLy Lo carry on a buslness or
do an acL whlch wlLhouL such llcense would be lllegal
1he CourL noLes LhaL AAC no 0492 and AMC no 0892 are already
covered by AAC no 0383 whlch ls sLlll operaLlonal 8espondenLs are
correcL ln polnLlng ouL LhaL AAC no 0492 ls a surplusage"
23
and
Lherefore an unnecessary enacLmenL AAC 0383 ls a comprehenslve
order seLLlng forLh Lhe 8ules and 8egulaLlons Covernlng lloLage Servlces
Lhe ConducL of lloLs and lloLage lees ln hlllpplne orLs" lL provldes lotet
ollo for Lhe quallflcaLlon appolnLmenL performance evaluaLlon dlsclpllnlng
and removal of harbor plloLs maLLers whlch are dupllcaLed ln AAC no
0492 and lLs lmplemenLlng memorandum order Slnce lL adds noLhlng new
or subsLanLlal AAC no 0492 musL be sLruck down
llnally respondenLs' lnslnuaLlon LhaL Lhen A Ceneral Manager uayan was
responslble for Lhe lssuance of Lhe quesLloned admlnlsLraLlve order may
have some facLual basls afLer all power and auLhorlLy were vesLed ln hls
offlce Lo propose rules and regulaLlons 1he Lrlal courL's flndlng of anlmoslLy
beLween hlm and prlvaLe respondenLs mlghL llkewlse have a graln of
LruLh ?eL Lhe number of cases flled ln courL beLween prlvaLe respondenLs
and uayan lncludlng cases whlch have reached Lhls CourL cannoL cerLalnly
be consldered Lhe prlmordlal reason for Lhe lssuance of AAC no 04
92 ln Lhe absence of proof Lo Lhe conLrary uayan should be presumed Lo
have acLed ln accordance wlLh law and Lhe besL of professlonal moLlves ln
any evenL hls acLlons are cerLalnly always sub[ecL Lo scruLlny by hlgher
admlnlsLraLlve auLhorlLles
ANG 1I8A vs CIk
lAC1S
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lSSuL
PLLu1he CourL of lndusLrlal 8elaLlons ls a speclal courL whose funcLlons are
speclflcally sLaLed ln Lhe law of lLs creaLlon (CommonwealLh AcL no 103) lL ls
more an admlnlsLraLlve Lhan a parL of Lhe lnLegraLed [udlclal sysLem of Lhe
naLlon lL ls noL lnLended Lo be a mere recepLlve organ of Lhe CovernmenL
unllke a courL of [usLlce whlch ls essenLlally passlve acLlng only when lLs
[urlsdlcLlon ls lnvoked and decldlng only cases LhaL are presenLed Lo lL by Lhe
parLles llLlganL Lhe funcLlon of Lhe CourL of lndusLrlal 8elaLlons as wlll
appear from perusal of lLs organlc law ls more acLlve afflrmaLlve and
dynamlc lL noL only exerclses [udlclal or quasl[udlclal funcLlons ln Lhe
deLermlnaLlon of dlspuLes beLween employers and employees buL lLs
funcLlons ln Lhe deLermlnaLlon of dlspuLes beLween employers and
employees buL lLs funcLlons are far more comprehenslve and expenslve
lL has [urlsdlcLlon over Lhe enLlre hlllpplnes Lo conslder
lnvesLlgaLe declde and seLLle any quesLlon maLLer conLroversy or dlspuLe
arlslng beLween and/or affecLlng employers and employees or laborers and
regulaLe Lhe relaLlons beLween Lhem sub[ecL Lo and ln accordance wlLh Lhe
provlslons of CommonwealLh AcL no 103 (secLlon 1) lL shall Lake cognlzance
or purposes of prevenLlon arblLraLlon declslon and seLLlemenL of any
lndusLrlal or agrlculLural dlspuLe causlng or llkely Lo cause a sLrlke or lockouL
arlslng from dlfferences as regards wages shares or compensaLlon hours of
labor or condlLlons of Lenancy or employmenL beLween landlords and
11 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

LenanLs or farmlaborers provlded LhaL Lhe number of employees laborers
or LenanLs of farmlaborers lnvolved exceeds LhlrLy and such lndusLrlal or
agrlculLural dlspuLe ls submlLLed Lo Lhe CourL by Lhe SecreLary of Labor or by
any or boLh of Lhe parLles Lo Lhe conLroversy and cerLlfled by Lhe SecreLary of
labor as exlsLlng and proper Lo be by Lhe SecreLary of Labor as exlsLlng and
proper Lo be dealLh wlLh by Lhe CourL for Lhe sake of publlc lnLeresL (SecLlon
4 lblJ)
lL shall before hearlng Lhe dlspuLe and ln Lhe course of such
hearlng endeavor Lo reconclle Lhe parLles and lnduce Lhem Lo seLLle Lhe
dlspuLe by amlcable agreemenL (aragraph 2 secLlon 4 lblJ) When dlrecLed
by Lhe resldenL of Lhe hlllpplnes lL shall lnvesLlgaLe and sLudy all lndusLrles
esLabllshed ln a deslgnaLed locallLy wlLh a vlew Lo deLermlnaLlng Lhe
necesslLy and falrness of flxlng and adopLlng for such lndusLry or locallLy a
mlnlmum wage or share of laborers or LenanLs or a maxlmum canon or
renLal Lo be pald by Lhe lnqulllnos or LenanLs or less Lo landowners
(SecLlon 3 lblJ) ln flne lL may appeal Lo volunLary arblLraLlon ln Lhe
seLLlemenL of lndusLrlal dlspuLes may employ medlaLlon or conclllaLlon for
LhaL purpose or recur Lo Lhe more effecLlve sysLem of offlclal lnvesLlgaLlon
and compulsory arblLraLlon ln order Lo deLermlne speclflc conLroversles
beLween labor and caplLal lndusLry and ln agrlculLure 1here ls ln reallLy here
a mlngllng of execuLlve and [udlclal funcLlons whlch ls a deparLure from Lhe
rlgld docLrlne of Lhe separaLlon of governmenLal powers
Lhe CourL of lndusLrlal 8elaLlons eL al C 8 no 46673
promulgaLed SepLember 13 1939 we had occaslon Lo polnL ouL LhaL Lhe
CourL of lndusLrlal 8elaLlons ls noL narrowly consLralned by Lechnlcal rules of
procedure and Lhe AcL requlres lL Lo acL accordlng Lo [usLlce and equlLy and
subsLanLlal merlLs of Lhe case wlLhouL regard Lo LechnlcallLles or legal forms
and shall noL be bound by any LechnlcallLles or legal forms and shall noL be
bound by any Lechnlcal rules of legal evldence buL may lnform lLs mlnd ln
such manner as lL may deem [usL and equlLable
lL shall noL be resLrlcLed Lo Lhe speclflc rellef clalmed or demands
made by Lhe parLles Lo Lhe lndusLrlal or agrlculLural dlspuLe buL may lnclude
ln Lhe award order or declslon any maLLer or deLermlnaLlon whlch may be
deemed necessary or expedlenL for Lhe purpose of seLLllng Lhe dlspuLe or of
prevenLlng furLher lndusLrlal or agrlculLural dlspuLes (secLlon 13 lblJ) And ln
Lhe llghL of Lhls leglslaLlve pollcy appeals Lo Lhls CourL have been especlally
regulaLed by Lhe rules recenLly promulgaLed by Lhe rules recenLly
promulgaLed by Lhls CourL Lo carry lnLo Lhe effecL Lhe avowed leglslaLlve
purpose
1here are prlmary rlghLs whlch musL be respecLed even ln
proceedlngs of Lhls characLer
(1) 1he f|rst of these r|ghts |s the r|ght to a hear|ng whlch
lncludes Lhe rlghL of Lhe parLy lnLeresLed or affecLed Lo presenL hls own case
and submlL evldence ln supporL Lhereof ln Lhe language of Chlef Pughes
ln ,otqoo v D 304 uS 1 38 S CL 773 999 82 Law ed 1129 Lhe llberLy
and properLy of Lhe clLlzen shall be proLecLed by Lhe rudlmenLary
requlremenLs of falr play
(2) Not on|y must the party be g|ven an opportun|ty to present
h|s case and to adduce ev|dence tend|ng to estab||sh the r|ghts wh|ch he
asserts but the tr|buna| must consider the ev|dence presented (Chlef
!usLlce Pughes ln Morgan v uS 298 uS 468 36 S CL 906 80 law ed
1288) ln Lhe language of Lhls courL lnJwotJs vs ,ccoy 22 hll 398 Lhe
rlghL Lo adduce evldence wlLhouL Lhe correspondlng duLy on Lhe parL of Lhe
board Lo conslder lL ls valn Such rlghL ls consplcuously fuLlle lf Lhe person or
persons Lo whom Lhe evldence ls presenLed can LhrusL lL aslde wlLhouL noLlce
or conslderaLlon
(3) Wh||e the duty to de||berate does not |mpose the ob||gat|on
to dec|de r|ght |t does |mp|y a necess|ty wh|ch cannot be d|sregarded
name|y that of hav|ng someth|ng to support |t |s a nu|||ty a p|ace when
d|rect|y attached (Ldwards vs McCoy sopto) 1hls prlnclple emanaLes from
Lhe more fundamenLal ls conLrary Lo Lhe vesLlng of unllmlLed power
anywhere Law ls boLh a granL and a llmlLaLlon upon power
(4) Not on|y must there be some ev|dence to support a f|nd|ng or
conc|us|on (ClLy of Manlla vs AgusLln C8 no 43844 promulgaLed
november 29 1937 xxxvl C C 1333) but the ev|dence must be
substant|a| (WashlngLon vlrglnla and Maryland Coach Co v naLlonal
labor 8elaLlons 8oard 301 uS 142 147 37 S CL 648 630 81 Law ed 963)
lL means such relevanL evldence as a reasonable mlnd accepL as adequaLe Lo
supporL a concluslon (Appalachlan LlecLrlc ower v naLlonal Labor
8elaLlons 8oard 4 Clr 93 l 2d 983 989 naLlonal Labor 8elaLlons 8oard v
1hompson roducLs 6 Clr 97 l 2d 13 13 8allsLonSLlllwaLer knlLLlng Co v
naLlonal Labor 8elaLlons 8oard 2 Clr 98 l 2d 738 760) 1he sLaLuLe
provldes LhaL Lhe rules of evldence prevalllng ln courLs of law and equlLy
shall noL be conLrolllng 1he obvlous purpose of Lhls and slmllar provlslons ls
Lo free admlnlsLraLlve boards from Lhe compulslon of Lechnlcal rules so LhaL
Lhe mere admlsslon of maLLer whlch would be deemed lncompeLenL lnn
[udlclal proceedlngs would noL lnvalldaLe Lhe admlnlsLraLlve order
(lnLersLaLe Commerce Commlsslon v 8alrd 194 uS 23 44 24 S CL 20 223
74 Law ed 624) 8uL Lhls assurance of a deslrable flexlblllLy ln admlnlsLraLlve
procedure does noL go far as Lo [usLlfy orders wlLhouL a basls ln evldence
havlng raLlonal probaLlve force Mere uncorroboraLed hearsay or rumor does
noL consLlLuLe subsLanLlal evldence
3) 1he dec|s|on must be rendered on the ev|dence presented at
the hear|ng or at |east conta|ned |n the record and d|sc|osed to the part|es
affected (lnLersLaLe Commence Commlsslon vs L n 8 Co 227 uS 88
33 S CL 183 37 Law ed 431) Cnly by conflnlng Lhe admlnlsLraLlve Lrlbunal
Lo Lhe evldence dlsclosed Lo Lhe parLles can Lhe laLLer be proLecLed ln Lhelr
rlghL Lo know and meeL Lhe case agalnsL Lhem lL should noL however
deLracL from Lhelr duLy acLlvely Lo see LhaL Lhe law ls enforced and for LhaL
purpose Lo use Lhe auLhorlzed legal meLhods of securlng evldence and
lnformlng lLself of facLs maLerlal and relevanL Lo Lhe conLroversy 8oards of
lnqulry may be appolnLed for Lhe purpose of lnvesLlgaLlng and deLermlnlng
Lhe facLs ln any glven case buL Lhelr reporL and declslon are only advlsory
(SecLlon 9 CommonwealLh AcL no 103) 1he CourL of lndusLrlal 8elaLlons
may refer any lndusLrlal or agrlculLural dlspuLe or any maLLer under lLs
conslderaLlon or advlsemenL Lo a local board of lnqulry a provlnclal flscal a
[usLlce of Lhe peace or any publlc offlclal ln any parL of Lhe hlllpplnes for
lnvesLlgaLlon reporL and recommendaLlon and may delegaLe Lo such board
or publlc offlclal such powers and funcLlons as Lhe sald CourL of lndusLrlal
8elaLlons may deem necessary buL such delegaLlon shall noL affecL Lhe
exerclse of Lhe CourL lLself of any of lLs powers (SecLlon 10 lblJ)
(6) 1he Court of Industr|a| ke|at|ons or any of |ts [udges
therefore must act on |ts or h|s own |ndependent cons|derat|on of the |aw
and facts of the controversy and not s|mp|y accept the v|ews of a
subord|nate |n arr|v|ng at a dec|s|on lL may be LhaL Lhe volume of work ls
such LhaL lL ls llLerally 8elaLlons personally Lo declde all conLroversles comlng
before Lhem ln Lhe unlLed SLaLes Lhe dlfflculLy ls solved wlLh Lhe enacLmenL
of sLaLuLory auLhorlLy auLhorlzlng examlners or oLher subordlnaLes Lo render
flnal declslon wlLh Lhe rlghL Lo appeal Lo board or commlsslon buL ln our
case Lhere ls no such sLaLuLory auLhorlLy
(7) 1he Court of Industr|a| ke|at|ons shou|d |n a|| controvers|a|
quest|ons render |ts dec|s|on |n such a manner that the part|es to the
proceed|ng can know the var|ous |ssues |nvo|ved and the reasons for the
dec|s|on rendered 1he performance of Lhls duLy ls lnseparable from Lhe
auLhorlLy conferred upon lL
ln Lhe rlghL of Lhe foregolng fundamenLal prlnclples lL ls sufflclenL
Lo observe here LhaL excepL as Lo Lhe alleged agreemenL beLween Lhe Ang
1lbay and Lhe naLlonal Workers 8roLherhood (appendlx A) Lhe record ls
barren and does noL saLlsfy Lhe LhlrsL for a facLual basls upon whlch Lo
predlcaLe ln a naLlonal way a concluslon of law
AD vs CA
lacLs eLlLloner olluLlon Ad[udlcaLlon 8oard (8oard) asks us Lo
revlew Lhe ueclslon and 8esoluLlon promulgaLed on 7 lebruary 1990 and 10
May 1990 respecLlvely by Lhe CourL of Appeals ln CAC 8 no S 18821
enLlLled Solar 1exLlle llnlshlng CorporaLlon v olluLlon Ad[udlcaLlon 8oard
ln LhaL ueclslon and 8esoluLlon Lhe CourL of Appeals reversed an order of
1 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

Lhe 8eglonal 1rlal CourL Cuezon ClLy 8ranch 77 ln Clvll Case no C892287
dlsmlsslng prlvaLe respondenL Solar 1exLlle llnlshlng CorporaLlons (Solar)
peLlLlon for cerLlorarl and remanded Lhe case Lo Lhe Lrlal courL for furLher
proceedlngs
Cn 22 SepLember 1988 peLlLloner 8oard lssued an ex potte Crder
dlrecLlng Solar lmmedlaLely Lo cease and deslsL from uLlllzlng lLs wasLewaLer
polluLlon source lnsLallaLlons whlch were dlscharglng unLreaLed wasLewaLer
dlrecLly lnLo a canal leadlng Lo Lhe ad[acenL 1ullahan1lne[eros 8lver Au
held pursuanL Lo SecLlon 7 of u 984 and SecLlon 38 of lLs lmplemenLlng
8ules and 8egulaLlons respondenL ls hereby ordered Lo cease and deslsL
from uLlllzlng lLs wasLewaLer polluLlon source lnsLallaLlon and dlscharglng lLs
unLreaLed wasLewaLer dlrecLly lnLo Lhe canal leadlng Lo Lhe 1ullahan
1lne[eros 8lver effecLlve lmmedlaLely upon recelpL hereof and unLll such Llme
when lL has fully complled wlLh all Lhe requlremenLs and unLll furLher orders
from Lhls 8oard
A copy of Lhe above Crder was recelved by Solar on 26 SepLember
1988 A WrlL of LxecuLlon lssued by Lhe 8oard was recelved by Solar on 31
March 1989MeanLlme Solar flled a moLlon for reconslderaLlon/appeal wlLh
prayer for sLay of execuLlon of Lhe Crder daLed 22 SepLember 1988 AcLlng
on Lhls moLlon Lhe 8oard lssued an Crder daLed 24 Aprll 1989 allowlng Solar
Lo operaLe Lemporarlly Lo enable Lhe 8oard Lo conducL anoLher lnspecLlon
and evaluaLlon of Solars wasLewaLer LreaLmenL faclllLles ln Lhe same Crder
Lhe 8oard dlrecLed Lhe 8eglonal LxecuLlve ulrecLor of Lhe uLn8/ nC8 Lo
conducL Lhe lnspecLlon and evaluaLlon wlLhln LhlrLy (30) days
Cn 21 Aprll 1989 however Solar wenL Lo Lhe 8eglonal 1rlal CourL
of Cuezon ClLy 8ranch 77 on peLlLlon for cerLlorarl wlLh prellmlnary
ln[uncLlon agalnsL Lhe 8oard Lhe peLlLlon belng dockeLed as Clvll Case no C
892287
Cn 21 !uly 1989 Lhe 8eglonal 1rlal CourL dlsmlssed Solars
peLlLlon upon Lwo (2) grounds le LhaL appeal and noL cerLlorarl from Lhe
quesLloned Crder of Lhe 8oard as well as Lhe WrlL of LxecuLlon was Lhe
proper remedy and LhaL Lhe 8oards subsequenL Crder allowlng Solar Lo
operaLe Lemporarlly had rendered Solars peLlLlon mooL and academlc
ulssaLlsfled Solar wenL on appeal Lo Lhe CourL of Appeals whlch
ln Lhe ueclslon here assalled reversed Lhe Crder of dlsmlssal of Lhe Lrlal
courL and remanded Lhe case Lo LhaL courL for furLher proceedlngs ln
addlLlon Lhe CourL of Appeals declared Lhe WrlL of LxecuLlon null and vold
lSSuL wheLher or noL Lhe CourL of Appeals erred ln reverslng Lhe
Lrlal courL on Lhe ground LhaL Solar had been denled due process by Lhe
8oard
PLLu u 984 SecLlon 7 paragraph (a) provldes
(a) lobllc eotloq ltovlJeJ 1haL wbeoevet tbe commlssloo
floJs ptlmo focle evlJeoce tbot tbe JlscbotqeJ sewoqe ot wostes ote of
lmmeJlote tbteot to llfe pobllc beoltb sofety ot welfote ot to oolmol ot
ploot llfe ot exceeJs tbe ollowoble stooJotJs set by tbe commlssloo tbe
commlsslooet moy lssoe oo expotte otJet Jltectloq tbe Jlscootlooooce of tbe
some ot tbe tempototy sospeosloo ot cessotloo of opetotloo of tbe
estobllsbmeot or person generaLlng such sewage or wasLes wltboot tbe
oecesslty of o ptlot pobllc beotloq @be solJ expotte otJet sboll be
lmmeJlotely execototy and shall remaln ln force unLll sald esLabllshmenL or
person prevenLs or abaLes Lhe sald polluLlon wlLhln Lhe allowable sLandards
or modlfled or nulllfled by a compeLenL courL
under Lhe abovequoLed porLlon of SecLlon 7(a) of u no 984
an ex potte cease and deslsL order may be lssued by Lhe 8oard (a) whenever
Lhe wasLes dlscharged by an esLabllshmenL pose an lmmedlaLe LhreaL Lo llfe
publlc healLh safeLy or welfare or Lo anlmal or planL llfe or (b) whenever
such dlscharges or wasLes exceed Lhe allowable sLandards seL by Lhe
nCC Cn Lhe one hand lL ls noL essenLlal LhaL Lhe 8oard prove LhaL an
lmmedlaLe LhreaL Lo llfe publlc healLh safeLy or welfare or Lo anlmal or
planL llfe exlsLs before an ex parLe cease and deslsL order may be lssued lL ls
enough lf Lhe 8oard flnds LhaL Lhe wasLes dlscharged do exceed Lhe
allowable sLandards seL by Lhe nCC ln respecL of dlscharges of wasLes as
Lo whlch allowable sLandards have been seL by Lhe Commlsslon Lhe 8oard
may lssue an ex potte cease and deslsL order when Lhere ls ptlmo
focleevldence of an esLabllshmenL exceedlng such allowable sLandards
Where however Lhe effluenLs or dlscharges have noL yeL been Lhe sub[ecL
maLLer of allowable sLandards seL by Lhe Commlsslon Lhen Lhe 8oard may
acL on anex potte basls when lL flnds aL leasL ptlmo focle proof LhaL Lhe
wasLewaLer or maLerlal lnvolved presenLs an lmmedlaLe LhreaL Lo llfe publlc
healLh safeLy or welfare or Lo anlmal or planL llfe Slnce Lhe appllcable
sLandards seL by Lhe CommlsslonexlsLlng aL any glven Llme may well noL
cover every posslble or lmaglnable klnd of effluenL or wasLe dlscharge Lhe
general sLandard of an lmmedlaLe LhreaL Lo llfe publlc healLh safeLy or
welfare or Lo anlmal and planL llfe remalns necessary
upon Lhe oLher hand Lhe CourL musL assume LhaL Lhe exLanL
allowable sLandards have been seL by Lhe Commlsslon or 8oard preclsely ln
order Lo avold or neuLrallze an lmmedlaLe LhreaL Lo llfe publlc healLh safeLy
or welfare or Lo anlmal or planL llfe
SecLlon 3 of Lhe LffluenL 8egulaLlons of 1982

seLs ouL Lhe

maxlmum permlsslble levels of physlcal and chemlcal subsLances whlch
effluenLs from domesLlc wasLewaLer LreaLmenL planLs and lndusLrlal planLs
musL noL exceed when dlscharged lnLo bodles of waLer classlfled as Class A
8 C u S8 and SC ln accordance wlLh Lhe 1978 nCC 8ules and 8egulaLlons
1he waLers of 1ullahan1lne[eros 8lver are classlfled as lnland waLers Class u
under SecLlon 68 of Lhe 1978 nCC 8ules and 8egulaLlons 8ecords of Lhe
Commlsslon show LhaL Lhe planL under lLs prevlous owner llne 1ouch
llnlshlng CorporaLlon was lssued a noLlce of vlolaLlon on 20 uecember 1983
dlrecLlng same Lo cease and deslsL from conducLlng dyelng operaLlon unLll
such Llme Lhe wasLe LreaLmenL planL ls already compleLed and operaLlonal
1he new owner Solar 1exLlle CorporaLlon lnformed Lhe Commlsslon of Lhe
planL acqulslLlon Lhru lLs leLLer daLed March 1986 (slc)
1he new owner was summoned Lo a hearlng held on 13 CcLober
1986 based on Lhe adverse flndlngs durlng Lhe lnspecLlon/waLer sampllng
LesL conducLed on 08 AugusL 1986 As per lnsLrucLlon of Lhe Legal ulvlslon a
re lnspecLlon/sampllng LexL should be conducLed flrsL before an approprlaLe
legal acLlon ls lnsLlLuLed hence Lhls lnspecLlon
8ased on Lhe above flndlngs lt ls cleot tbot tbe oew owoet
cootloooosly vlolotes tbe Jltectlve of tbe commlssloo by ooJettokloq Jyeloq
opetotloo wltboot completloq fltst ooJ opetotloq lts exlstloq w@l @be
ooolysls of tesolts oo wotet somples tokeo sboweJ tbot tbe ootteoteJ
wostewotet ftom tbe fltm pollotes oot wotet tesootces ln Lhls connecLlon lL
ls recommended LhaL approprlaLe legal acLlon be lnsLlLuLed lmmedlaLely
agalnsL Lhe flrm lL ls clear Lo Lhls CourL LhaL Lhere was aL leasL ptlmo
focle evldence before Lhe 8oard LhaL Lhe effluenLs emanaLlng from Solars
planL exceeded Lhe maxlmum allowable levels of physlcal and chemlcal
subsLances seL by Lhe nCC and LhaL accordlngly Lhere was adequaLe basls
supporLlng Lhe ex potte ceaseand deslsL order lssued by Lhe 8oard lL ls also
well Lo noLe LhaL Lhe prevlous owner of Lhe planL faclllLy llne 1ouch llnlshlng
CorporaLlon had been lssued a noLlce of vlolaLlon on 20 uecember 1983
dlrecLlng lL Lo cease and refraln from carrylng ouL dyelng operaLlons unLll Lhe
waLer LreaLmenL planL was compleLed and operaLlonal Solar Lhe new
owner lnformed Lhe nCC of Lhe acqulslLlon of Lhe planL on March 1986
Solar was summoned by Lhe nCC Lo a hearlng on 13 CcLober 1986 based on
Lhe resulLs of Lhe sampllng LesL conducLed by Lhe nCC on 8 AugusL 1986
eLlLloner 8oard refralned from lssulng an ex parLe cease and deslsL order
unLll afLer Lhe november 1986 and SepLember 1988 relnspecLlons were
conducLed and Lhe vlolaLlon of appllcable sLandards was conflrmed ln oLher
words peLlLloner 8oard appears Lo have been remarkably forbearlng ln lLs
efforLs Lo enforce Lhe appllcable sLandards vlsavls Solar Solar on Lhe oLher
hand seemed very casual abouL lLs conLlnued dlscharge of unLreaLed
polluLlve effluenLs lnLo Lhe 1ullahan 1lnere[os 8lver presumably loaLh Lo
spend Lhe money necessary Lo puL lLs WasLewaLer 1reaLmenL lanL (W1)
ln an operaLlng condlLlon
Lhe ex potte cease and deslsL Crder was lssued noL by a local
governmenL offlclal buL by Lhe olluLlon Ad[udlcaLlon 8oard Lhe very agency
of Lhe CovernmenL charged wlLh Lhe Lask of deLermlnlng wheLher Lhe
13 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

effluenLs of a parLlcular lndusLrlal esLabllshmenL comply wlLh or vlolaLe
appllcable anLlpolluLlon sLaLuLory and regulaLory provlslons
x potte cease and deslsL orders are permlLLed by law and
regulaLlons ln slLuaLlons llke LhaL here presenLed preclsely because sLopplng
Lhe conLlnuous dlscharge of polluLlve and unLreaLed effluenLs lnLo Lhe rlvers
and oLher lnland waLers of Lhe hlllpplnes cannoL be made Lo walL unLll
proLracLed llLlgaLlon over Lhe ulLlmaLe correcLness or proprleLy of such
orders has run lLs full course lncludlng mulLlple and sequenLlal appeals such
as Lhose whlch Solar has Laken whlch of course may Lake several years 1he
relevanL polluLlon conLrol sLaLuLe and lmplemenLlng regulaLlons were
enacLed and promulgaLed ln Lhe exerclse of LhaL pervaslve soverelgn power
Lo proLecL Lhe safeLy healLh and general welfare and comforL of Lhe publlc
as well as Lhe proLecLlon of planL and anlmal llfe commonly deslgnaLed as
Lhe pollce power lL ls a consLlLuLlonal commonplace LhaL Lhe ordlnary
requlremenLs of procedural due process yleld Lo Lhe necesslLles of proLecLlng
vlLal publlc lnLeresLs llke Lhose here lnvolved Lhrough Lhe exerclse of pollce
power 1he 8oards ex potte Crder and WrlL of LxecuLlon would of course
have compelled Solar Lemporarlly Lo sLop lLs planL operaLlons a sLaLe of
affalrs Solar could ln any case have avolded by slmply absorblng Lhe boLher
and burden of puLLlng lLs W1 on an operaLlonal basls lndusLrlal
esLabllshmenLs are noL consLlLuLlonally enLlLled Lo reduce Lhelr caplLals cosLs
and operaLlng expenses and Lo lncrease Lhelr proflLs by lmposlng upon Lhe
publlc LhreaLs and rlsks Lo lLs safeLy healLh general welfare and comforL
bydlsregardlng Lhe requlremenLs of anLl polluLlon sLaLuLes and Lhelr
lmplemenLlng regulaLlons
lL should perhaps be made clear Lhe CourL ls noL here saylng LhaL
Lhe correcLness of Lhe ex potte Crder and WrlL of LxecuLlon may noL be
conLesLed by Solar ln a hearlng before Lhe 8oard lLself Where Lhe
esLabllshmenL affecLed by an ex potte cease and deslsL order conLesLs Lhe
correcLness of Lhe ptlmo focle flndlngs of Lhe 8oard Lhe 8oard musL hold a
publlc hearlng where such esLabllshmenL would have an opporLunlLy Lo
conLroverL Lhe basls of such ex potte order 1haL such an opporLunlLy ls
subsequenLly avallable ls really all LhaL ls requlred by Lhe due process clause
of Lhe ConsLlLuLlon ln slLuaLlons llke LhaL we have here 1he 8oards declslon
rendered afLer Lhe publlc hearlng may Lhen be LesLed [udlclally by an appeal
Lo Lhe CourL of Appeals ln accordance wlLh SecLlon 7(c) of u no 984 and
SecLlon 42 of Lhe lmplemenLlng 8ules and 8egulaLlons A subsequenL publlc
hearlng ls preclsely whaL Solar should have soughL lnsLead of golng Lo courL
Lo seek nulllflcaLlon of Lhe 8oards Crder and WrlL of LxecuLlon and lnsLead
of appeallng Lo Lhe CourL of Appeals lL wlll be recalled Lhe aL Lhe 8oard ln
facL gave Solar auLhorlLy Lemporarlly Lo conLlnue operaLlons unLll sLlll
anoLher lnspecLlon of lLs wasLewaLer LreaLmenL faclllLles and Lhen anoLher
analysls of effluenL samples could be Laken and evaluaLed
Solar clalms flnally LhaL Lhe peLlLlon for cerLlorarl was Lhe proper
remedy as Lhe quesLloned Crder and WrlL of LxecuLlon lssued by Lhe 8oard
were paLenL nulllLles Slnce we have concluded LhaL Lhe Crder and WrlL of
LxecuLlon were enLlrely wlLhln Lhe lawful auLhorlLy of peLlLloner 8oard Lhe
Lrlal courL dld noL err when lL dlsmlssed Solars peLlLlon for cerLlorarl lL
follows LhaL Lhe proper remedy was an appeal from Lhe Lrlal courL Lo Lhe
CourL of Appeals as Solar dld ln facL appeal
Gk No 1S99 Ianuary 7
CCMMISSICNLk CI IN1LkNAL kLVLNUL vs A2UCLNA 1 kLLS
x x
Gk No 13S81 Ianuary 7
A2UCLNA 1 kLLS vsCCMMISSICNLk CI IN1LkNAL kLVLNUL
Iacts 1he 1292 squaremeLer resldenLlal loL and house Lhe laLe
Marla C 1anclnco was sub[ecLed Lo an lnvesLlgaLlon based on a sworn
lnformaLlon for reward by a cerLaln 8aymond Abad Such lnvesLlgaLlon was
conducLed by Lhe 8evenue ulsLrlcL Cfflce whlch subsequenLly lssued a
8eLurn verlflcaLlon Crder no 30 8uL wlLhouL Lhe requlred prellmlnary
flndlngs belng submlLLed lL lssued LeLLer of AuLhorlLy no 132963 for Lhe
regular lnvesLlgaLlon of Lhe esLaLe Lax case Azucena 1 8eyes one of Lhe
decedenL's helrs recelved Lhe LeLLer of AuLhorlLy on March 14 1997
8l8 lssued a prellmlnary assessmenL noLlce agalnsL Lhe esLaLe ln
Lhe amounL of 1438061867 Cn May 10 1998 Lhe helrs of Lhe decedenL
(or 'helrs') recelved a flnal esLaLe Lax assessmenL noLlce and a demand leLLer
boLh daLed Aprll 22 1998 for Lhe amounL of 1491220347 lncluslve of
surcharge and lnLeresL Cn !une 1 1998 a cerLaln lellx M Sumblllo
proLesLed Lhe assessmenL on behalf of Lhe helrs on Lhe ground LhaL Lhe
sub[ecL properLy had already been sold by Lhe decedenL someLlme ln 1990
Cl8 8evenue lssued a prellmlnary collecLlon leLLer Lo 8eyes
followed by a llnal noLlce 8efore Selzure daLed uecember 4 1998 lL was
laLer on followed by a WarranL of ulsLralnL and/or Levy whlch was served
upon Lhe esLaLe SusequenLly noLlces of levy on 8eal roperLy and 1ax Llen
agalnsL lLCn March 2 19998eyes proLesLed Lhe noLlce of levy Powever on
March 11 1999 Lhe helrs proposed a compromlse seLLlemenL
of 100000000
8eyes wroLe a leLLer Lo Lhe Cl8 proposlng Lhe paymenL of Lhe 30
of Lhe baslc Lax due clLlng Lhe helrs' lnablllLy Lo pay Lhe Lax assessmenL
whlch was re[ecLed by Lhe Cl8 polnLlng ouL LhaLslnce Lhe esLaLe Lax ls a
charge on Lhe esLaLe and noL on Lhe helrs Lhe laLLer's flnanclal lncapaclLy ls
lmmaLerlal 8eyes wroLe a follow up leLLer on Aprll 11 2000 proposlng Lo
pay 100 of Lhe baslc Lax due Such proposal was relLeraLed ln a leLLer daLed
May 18 2000
As Lhe esLaLe falled Lo pay lLs Lax llablllLy wlLhln Lhe Aprll 13 2000
deadllne Lhe Chlef CollecLlon LnforcemenL ulvlslon 8l8 noLlfled 8eyes LhaL
Lhe sub[ecL properLy would be sold aL publlc aucLlon on AugusL 8 2000
8eyes appealed Lo Lhe appellaLe dlvlslon of 8l8 conLendlng LhaL Lhe
proceedlngs were vold ab lnlLlo She offered Lo pay Lhe esLaLe Lax wlLhouL
surcharge or lnLeresL Powever Cl8 lnsLrucLed Lhe Lhe CollecLlon
LnforcemenL ulvlslon Lo proceed wlLh Lhe AugusL 8 2000 aucLlon sale
ConsequenLly on !une 28 2000 8eyes flled a eLlLlon for 8evlew wlLh Lhe
CourL of 1ax Appeals (or 'C1A') whlch denled her peLlLlon for revlew and
ordered her Lo pay Lhe deflclenL esLaLe Lax uurlng Lhe pendency of Lhe case
wlLh Lhe C1A 8eyes enLered lnLo compromlse wlLh Lhe 8l8 1he case was
appealed Lo Lhe CourL of Appeals whlch annulled and seL aslde Lhe declslon
of Lhe C1A Pence Lhe peLlLlon
Issue
1 WheLher Lhe assessmenL agalnsL Lhe esLaLe ls valld
2 WheLher Lhe compromlse ls valld
ku||ng
n the ossessment oqoinst the estote
no 1he second paragraph of SecLlon 228 of Lhe 1ax Code ls clear
and mandaLory lL provldes LhaL tbe toxpoyets sboll be lofotmeJ lo wtltloq of
tbe low ooJ tbe focts oo wblcb tbe ossessmeot ls moJe otbetwlse tbe
ossessmeot sboll be volJ 8eyes was noL lnformed ln wrlLlng of Lhe law and
Lhe facLs on whlch Lhe assessmenL of esLaLe Laxes had been made She was
merely noLlfled of Lhe flndlngs by Lhe Cl8 who had slmply relled upon Lhe
provlslons of former SecLlon 229 prlor Lo lLs amendmenL by 8epubllc AcL (8A)
no 8424 oLherwlse known as Lhe 1ax 8eform AcL of 1997
8A 8424 has already amended Lhe provlslon of SecLlon 229 on
proLesLlng an assessmenL 1he old requlremenL of merely ootlfyloq Lhe
Laxpayer of Lhe Cl8's flndlngs was changed ln 1998 Lo lofotmloq Lhe Laxpayer
of noL only Lhe law buL also of Lhe facLs on whlch an assessmenL would be
made oLherwlse Lhe assessmenL lLself would be lnvalld lL was on lebruary
12 1998 LhaL a prellmlnary assessmenL noLlce was lssued agalnsL Lhe esLaLe
Cn Aprll 22 1998 Lhe flnal esLaLe Lax assessmenL noLlce as well as demand
leLLer was also lssued uurlng Lhose daLes 8A 8424 was already ln effecL
1he noLlce requlred under Lhe olJ law was no longer sufflclenL under
Lhe oew law
1 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

1o be slmply lnformed ln wrlLlng of Lhe lnvesLlgaLlon belng
conducLed and of Lhe recommendaLlon for Lhe assessmenL of Lhe esLaLe
Laxes due ls noLhlng buL a perfuncLory dlscharge of Lhe Lax funcLlon of
correcLly assesslng a Laxpayer 1he acL cannoL be Laken Lo mean LhaL 8eyes
already knew Lhe law and Lhe facLs on whlch Lhe assessmenL was based lL
does noL aL all conform Lo Lhe compulsory requlremenL under SecLlon 228
Moreover Lhe LeLLer of AuLhorlLy recelved by respondenL on March 14 1997
was for Lhe sheer purpose of lnvesLlgaLlon and was noL even Lhe requlslLe
noLlce under Lhe law
AL Lhe Llme Lhe preassessmenL noLlce was lssued Lo 8eyes 8A
8424 already sLaLed LhaL Lhe Laxpayer musL be lnformed of boLh Lhe law and
facLs on whlch Lhe assessmenL was based 1hus Lhe Cl8 should have requlred
Lhe assessmenL offlcers of Lhe 8ureau of lnLernal 8evenue (8l8) Lo follow Lhe
clear mandaLe of Lhe new law 1he old regulaLlon governlng Lhe lssuance of
esLaLe Lax assessmenL noLlces ran afoul of Lhe rule LhaL Lax regulaLlons old
as Lhey were should be ln harmony wlLh and noL supplanL or modlfy Lhe
law
lL may be argued LhaL Lhe 1ax Code provlslons are noL self
execuLory lL would be Loo wlde a sLreLch of Lhe lmaglnaLlon Lhough Lo sLlll
lssue a regulaLlon LhaL would slmply requlre Lax offlclals Lo lnform Lhe
Laxpayer ln any manner of Lhe law and Lhe facLs on whlch an assessmenL
was based 1haL requlremenL ls nelLher dlfflculL Lo make nor lLs deslred
resulLs hard Lo achleve
Moreover an admlnlsLraLlve rule lnLerpreLlve of a sLaLuLe and noL
declaraLlve of cerLaln rlghLs and correspondlng obllgaLlons ls glven
reLroacLlve effecL as of Lhe daLe of Lhe effecLlvlLy of Lhe sLaLuLe
17
88 1299 ls
one such rule 8elng lnLerpreLlve of Lhe provlslons of Lhe 1ax Code even lf lL
was lssued only on SepLember 6 1999 Lhls regulaLlon was Lo reLroacL Lo
!anuary 1 1998 a daLe prlor Lo Lhe lssuance of Lhe prellmlnary assessmenL
noLlce and demand leLLer peLlLloner vlolaLed Lhe cardlnal rule ln
admlnlsLraLlve law LhaL Lhe Laxpayer be accorded due process noL only was
Lhe law here dlsregarded buL no valld noLlce was senL elLher A vold
assessmenL bears no valld frulL
1he law lmposes a subsLanLlve noL merely a formal requlremenL
1o proceed heedlessly wlLh Lax collecLlon wlLhouL flrsL esLabllshlng a valld
assessmenL ls evldenLly vlolaLlve of Lhe cardlnal prlnclple ln admlnlsLraLlve
lnvesLlgaLlons LhaL Laxpayers should be able Lo presenL Lhelr case and
adduce supporLlng evldence ln Lhe lnsLanL case respondenL has noL been
lnformed of Lhe basls of Lhe esLaLe Lax llablllLy WlLhouL complylng wlLh Lhe
unequlvocal mandaLe of flrsL lnformlng Lhe Laxpayer of Lhe governmenL's
clalm Lhere can be no deprlvaLlon of properLy because no effecLlve proLesL
can be made 1he haphazard shoL aL slapplng an assessmenL supposedly
based on esLaLe LaxaLlon's general provlslons LhaL are expecLed Lo be known
by Lhe Laxpayer ls uLLer chlcanery
n the vo/idity of compromise
1he CourL held LhaL lL would be premaLure Lo declare
LhaL Lhe compromlse on Lhe esLaLe Lax llablllLy has been perfecLed and
consummaLed conslderlng Lhe earller deLermlnaLlon LhaL Lhe assessmenL
agalnsL Lhe esLaLe was vold noLhlng has been seLLled or flnallzed under
SecLlon 204(A) of Lhe 1ax Code where Lhe baslc Lax lnvolved exceeds one
mllllon pesos or Lhe seLLlemenL offered ls less Lhan Lhe prescrlbed mlnlmum
raLes Lhe compromlse shall be sub[ecL Lo Lhe approval of Lhe nL8 composed
of Lhe peLlLloner and four depuLy commlssloners
llnally as correcLly held by Lhe appellaLe courL Lhls provlslon
applles Lo all compromlses wheLher governmenLlnlLlaLed or noL Dbl lex ooo
Jlstloqolt oec oos Jlstloqoete Jebemos Where Lhe law does noL dlsLlngulsh
we should noL dlsLlngulsh
GC VS NACLCCM
IAC1S eLlLloner Ldgar M Co had been a member of Lhe
Clongapo ClLy ollce ueparLmenL slnce Aprll 18 1974 Cn uecember 16
1983 he was dlsmlssed for alleged lnvolvemenL ln lllegal gambllng more
parLlcularly Lhe operaLlon of [alalal bookles 1he declslon
1
daLed
november 24 1983 of Lhe Summary ulsmlssal 8oard no 2 of Lhe C/ln
8eglonal Command no 3 aL Camp Cllvas San lernando ampanga u 1707
ln relaLlon Lo Memorandum agreemenL beLween nACLCCM and ulrecLor
Ceneral ln daLed november 24 1980 provldes LhaL a syndlcaLe crlme and
Long collecLlon are serlous offenses agalnsL an ln members and ls Lherefore
wlLhln Lhe [urlsdlcLlon of Lhe dlsmlssal auLhorlLles
eLlLloner was lnformed of hls dlsmlssal ln a memo daLed
uecember 20 1983 by LL Col lerdlnand A Lagman ulsLrlcL
SuperlnLendenL ln of Lhe Clongapo MeLropollLan ulsLrlcL Command
2
Pe
appealed Lo Lhe ulrecLor Ceneral of Lhe C/ln complalnlng of denlal of due
process Pe clalmed LhaL no copy of Lhe complalnL wlLh supporLlng affldavlLs
had been served on hlm as requlred by nACLCCM 8esoluLlon no 8101
LhaL he was slmply ordered by radlo Lo appear before Lhe summary dlsmlssal
board for lnvesLlgaLlon LhaL he wenL Lo aLLend Lhe hearlng on May 9 1983
buL nelLher Lhe complalnanL nor hls wlLnesses were presenL and he was
advlsed by Lhe board's chalrman a cerLaln Colonel Clnco Lo secure Lhe
servlces of a lawyer for Lhe nexL hearlng LhaL aL Lhe hearlng on SepLember 6
or 9 1983 Lhe members of Lhe board and complalnanL and hls wlLnesses
were agaln absenL LhaL Lhe Lhlrd hearlng scheduled on SepLember 21 1983
was also posLponed because of Lhe absence of Lhe members of Lhe board
LhaL alLhough a hearlng had allegedly been held on CcLober 19 1983 he was
noL able Lo aLLend lL because he had noL been prevlously noLlfled LhaL he
heard noLhlng more abouL Lhe case unLll he was lnformed of Lhe declslon
dlsmlsslng hlm a copy of whlch was recelved by hlm only on lebruary 20
1984 eLlLloner clalmed LhaL had he been allowed Lo crossexamlne Lhe
wlLnesses agalnsL hlm he could have shown LhaL 8odolfo Ablaza and 8olando
de la luenLe who accordlng Lo Lhe board's declslon sald Lhey had worked as
[alalal collecLors of peLlLloner and hls broLher subsequenLly execuLed
affldavlLs ln whlch Lhey sald Lhey had been mlsled lnLo slgnlng Lhelr prlor
sLaLemenLs llnally peLlLloner argued LhaL ln any evenL hls dlsmlssal should
have Laken effecL only upon hls recelpL of a copy of Lhe declslon on lebruary
20 1984 and noL on uecember 16 1983 Pe clLed hls 11 years of servlce ln
Lhe pollce deparLmenL and varlous awards and commendaLlons whlch had
been glven Lo hlm and prayed LhaL he be exoneraLed and relnsLaLed Lo Lhe
pollce deparLmenL and pald back salarles from Lhe Llme of hls dlsmlssal Lo
Lhe Llme of hls relnsLaLemenL and oLher rellefs Lo whlch he mlghL be
enLlLled
eLlLloner's appeal was denled as Lhe ulrecLor Ceneral of Lhe
C/ln noLed ln a declslon daLed AugusL 21 1990 LhaL Lhere appears a
facLual basls whlch ls legally unassallable" for Lhe summary dlsmlssal board's
flndlngs
3

eLlLloner appealed Lo Lhe naLlonal ollce Commlsslon whlch
llkewlse dlsmlssed hls appeal for uLLer lack of merlL As Lo Lhe asserLlon of
respondenLappellanL LhaL he was deprlved of hls rlghL Lo due process
anchored on Lhe allegaLlon LhaL he was noL served any noLlce of hearlng lL ls
belled by Lhe records Cn several occaslons Lhe Summary ulsmlssal 8oard
senL noLlces Lo hereln respondenLappellanL requlrlng hlm Lo appear and
presenL evldence ln hls behalf buL he lgnored sald noLlces prompLlng Lhe
8oard Lo proceed wlLh Lhe lnvesLlgaLlon ex potte
Pence Lhls peLlLlon for cerLlorarl Lo seL aslde Lhe declslon of
Lhe nACLCCM
lSSuL WCn peLlLloner was denled or due process of law
PLLu ?LSeLlLloner's case was declded under u no 971 as
amended by u no 1707 Whlle 8A of Lheuecree auLhorlzes summary
dlsmlssals wlLhouL Lhe necesslLy of a formal lnvesLlgaLlon" of members of
Lhe ln when Lhe charge ls serlous and Lhe evldence ls sLrong" Lhe uecree
and Lhe lmplemenLlng rules noneLheless glve Lhe respondenL Lhe rlghL Lo be
furnlshed a copy of Lhe complalnL and Lo flle an answer wlLhln Lhree (3)
days 1hls rlghL conslsLs of Lhe followlng
(1) 1he Pearlng Cfflcer or ln ulrecLor concerned shall furnlsh Lhe
respondenL a copy of Lhe complalnL wlLh all Lhe sworn sLaLemenLs and oLher
documenLs aLLached LhereLo wlLh a noLlflcaLlon LhaL on Lhe scheduled daLe
1S | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

of hearlng Lhe respondenL musL submlL sworn counLersLaLemenLs and/or
oLher evldence Lo dlsprove Lhe charge oLherwlse Lhe former shall forLhwlLh
recommend hls summary removal based on Lhe evldence on hand
3

(2) Notlflcotloo of cbotqes ot complolot tJet to Aoswet 1he
respondenL ln member shall be furnlshed wlLh a copy of Lhe complalnL or
charges agalnsL hlm and he shall answer sald complalnL wlLhln Lhree (3) days
from recelpL Lhereof encloslng LherewlLh perLlnenL supporLlng documenLs or
evldences ln hls behalf lf Lhe respondenL falls Lo answer Lhe charges wlLhln
Lhe prescrlbed perlod Lhe Summary ulsmlssal AuLhorlLy shall lmmedlaLely
conducL Lhe lnvesLlgaLlon ex potte
6

1he flllng of charges and Lhe allowance of reasonable opporLunlLy
Lo respondenL Lo answer Lhe charges consLlLuLe Lhe mlnlmum requlremenLs
of due process 1hus lnCovetomeot etvlce ooJ losotooce ystem v coott of
Appeols
7
40 of u no 807 whlch slmllarly auLhorlzed Lhe summary
dlsmlssals of clvll servlce employees wlLhouL formal lnvesLlgaLlon when Lhe
charge ls serlous and Lhe evldence of gullL ls sLrong" was consLrued by Lhls
CourL Lo requlre Lhe glvlng of noLlce of charges Lo a respondenL and Lhe rlghL
Lo answer lL ls clear Lo us LhaL whaL Lhe openlng senLence of SecLlon 40 ls
saylng ls LhaL an employee may be removed or dlsmlssed even wlLhouL
formal lnvesLlgaLlon ln cerLaln lnsLances lL ls equally clear Lo us LhaL an
employee musL be lnformed of Lhe charges preferred slc agalnsL hlm and
LhaL Lhe normal way by whlch Lhe employee ls so lnformed ls by furnlshlng
hlm wlLh a copy of Lhe charges made agalnsL hlm 1hls ls a baslc procedural
requlremenL LhaL a sLaLuLe cannoL dlspense wlLh and sLlll remalns conslsLenL
wlLh Lhe consLlLuLlonal provlslon on due process 1he second mlnlmum
requlremenL ls LhaL Lhe employee charged wlLh some mlsfeasance or
malfeasance musL have a reasonable opporLunlLy Lo presenL hls slde of Lhe
maLLer LhaL ls Lo say hls defenses agalnsL Lhe charges levelled agaln hlm and
Lo presenL evldence ln supporL of hls defenses 1he ordlnaryway by whlch a
Clvll Servlce employee ls glven Lhls opporLunlLy ls by holdlng an lnvesLlgaLlon
ln Lhe course of whlch Lhe employee may asserL hls defenses and presenL hls
supporLlng evldence lf SecLlon 40 of Lhe Clvll Servlce uecree ls Lo be saved
from unconsLlLuLlonallLy lL cannoL be lnLerpreLed or applled ln such a
manner as Lo deprlve a respondenL employee of Lhese Lwo (2) mlnlmum
rlghLs 1hese are noL Lhe only lndlspensable requlremenLs of procedural due
process Lhey are however mosL dlrecLly lnvolved ln Lhe maLLer of wheLher
or noL an lnvesLlgaLlon of charges agalnsL a clvll servlce employee ls
essenLlal
8

1he ln record of Lhls case does noL show LhaL a formal complalnL
was ever flled agalnsL peLlLloner nor are Lhere aLLached Lo such record
supporLlng affldavlLs of wlLnesses lf any agalnsL hlm nelLher Lhe declslon of
Lhe board nor LhaL of Lhe ulrecLor Ceneral of Lhe C/ln denylng
reconslderaLlon nor Lhe declslon of Lhe nACLCCM on appeal conLalns
reference Lo any wrlLLen complalnL wlLh supporLlng affldavlLs flled agalnsL
peLlLloner
eLlLloner's complalnL LhaL he had noL been furnlshed wrlLLen
charges wlLh supporLlng affldavlLs merlLed no more Lhan a passlng menLlon
ln Lhe declslon of Lhe C/ln ulrecLor Ceneral ln hls appeal Lo Lhe
nACLCCM peLlLloner relLeraLed hls clalm buL Lhe declslon of Lhls agency
dlsmlsslng hls appeal merely rehashed Lhe declslon of Lhe ulrecLor
Ceneral 1here was no efforL made Lo deal wlLh Lhe asslgnmenL of errors of
peLlLloner
lndeed whaL Lhe summary dlsmlssal board appears Lo have done
ln Lhls case was slmply Lo recelve Lhe reporL on Lwo ralds allegedly conducLed
on peLlLloner's house on !anuary 21 1983 and on !une 16 1983 ln Lhe
course of whlch whaL were belleved were gambllng paraphernalla (money ln
Lhe amounL of 100000 assorLed papellLos" a ballpen and a calculaLor)
were allegedly found and Lwo wlLnesses (8odolfo Ablaza and 8olando de la
luenLe) allegedly admlLLed Lhey were collecLors of peLlLloner and hls broLher
LollLo Co 8uL Lhe reporL lf lL was ever ln wrlLlng ls noL ln Lhe record of Lhls
case whlch Lhe nACLCCM LransmlLLed Lo Lhe CourL nor does Lhe declslon
of Lhe summary dlsmlssal board dlsclose on whaL Lhe supposed reporL was
based 1hls ls ln vlolaLlon of Lhe rule LhaL ln admlnlsLraLlve proceedlngs Lhe
declslon musL be rendered on Lhe evldence conLalned ln Lhe record and
dlsclosed Lo Lhe parLy affecLed"
9

ln all probablllLy Lhe reporL of Lhe Leam whlch conducLed Lhe ralds
was noL even ln wrlLlng and Lhe supposed LesLlmonles of Lhe Lwo wlLnesses
were noL Laken down 1hls ls evldenL from Lhe declslon of Lhe board whlch
lnsLead of referrlng Lo Lhe LesLlmonles or affldavlLs of wlLnesses repeaLedly
refers Lo Lhe resulLs of an lnvesLlgaLlon" 1hus Lhe declslon
sLaLes lnvesLlgaLlon reveals " lnvesLlgaLlon furLher reveals " lL was
furLher dlscovered durlng Lhe lnvesLlgaLlon " lL ls clear LhaL Lhe facLs
found by Lhe board were noL Lhe resulL of any lnvesLlgaLlon conducLed by lL
buL by some oLher group posslbly Lhe Leam LhaL allegedly conducLed Lhe
ralds and LhaL whaL Lhe board dld was slmply Lo rely on Lhelr flndlng
under Lhese clrcumsLances Lhere was no way by whlch peLlLloner
could defend hlmself ln summary dlsmlssal proceedlngs unless oLher fully
effecLlve means for lmplemenLlng Lhe consLlLuLlonal requlremenL of noLlce
and hearlng are devlsed lL ls mandaLory LhaL charges be speclfled ln wrlLlng
and LhaL Lhe affldavlLs ln supporL Lhereof be aLLached Lo Lhe complalnL
because Lhese are Lhe only ways by whlch evldence agalnsL Lhe respondenL
can be broughL Lo hls knowledge 1hey Lake Lhe place of dlrecL examlnaLlon
of wlLnesses 1he formal lnvesLlgaLlon whlch ls dlspensed wlLh ln summary
dlsmlssal proceedlngs refers Lo Lhe presenLaLlon of wlLnesses by Lhelr dlrecL
examlnaLlon and noL Lo Lhe requlremenL LhaL Lhe respondenL ln Lhe
admlnlsLraLlve case be noLlfled of Lhe charges and glven Lhe chance Lo
defend hlmself
1he SollclLor Ceneral argues LhaL peLlLloner could noL have falled
Lo lnqulre whaL Lhe charges agalnsL hlm were because he admlLs he
appeared before Lhe board as ordered 1haL may be so eLlLloner mlghL
have been Lold whaL Lhe charge or charges agalnsL hlm were buL noL Lhe
deLalls Lhereof and cerLalnly noL whaL Lhe alleged wlLnesses agalnsL hlm
mlghL have sald because as already sLaLed Lhe record of Lhe ln slmply dld
noL conLaln Lhelr alleged LesLlmonles
nor does lL appear LhaL peLlLloner was heard ln hls defense Pls
clalm LhaL Lhrlce he appeared before Lhe summary dlsmlssal board buL no
hearlng was ever held elLher because complalnanL and hls wlLnesses dld noL
appear or Lhe members of Lhe board were absenL or boLh complalnanL and
wlLnesses and members of Lhe board were absenL was never speclflcally
denled ln any of Lhe declslons of Lhe admlnlsLraLlve auLhorlLles beyond
saylng LhaL Lhe clalm was belled by Lhe record 1here ls slmply noLhlng ln
Lhe ln record of Lhe case Lo show Lhls lL may be argued LhaL Lhe
requlremenLs of due process are saLlsfled lf a parLy lnlLlally denled a hearlng
ls subsequenLly granLed one by means of moLlon for reconslderaLlon
10
1haL
ls Lrue lndeed lf Lhe charges and Lhe evldence agalnsL hlm are seL forLh ln Lhe
record of Lhe case buL noL where as here Lhey are noL lf ln hls appeal Lo
Lhe C/ln ulrecLor Ceneral peLlLloner presenLed Lhe affldavlLs of reLracLlon
of Lwo of Lhe wlLnesses agalnsL hlm lL was only because Lhe declslon of Lhe
board menLloned LhaL Lhese wlLnesses allegedly sald Lhey had acLed as
peLlLloner's collecLors and noL because Lhelr prlor sLaLemenLs were ln Lhe
record
We conclude LhaL peLlLloner was denled Lhe due process of law
and LhaL noL even Lhe facL LhaL Lhe charge agalnsL hlm ls serlous and
evldence of hls gullL ls ln Lhe oplnlon of hls superlors sLrong can
compensaLe for Lhe procedural shorLcuL evldenL ln Lhe record of Lhls case lL
ls preclsely ln cases such as Lhls LhaL Lhe uLmosL care be exerclsed lesL ln Lhe
drlve Lo clean up Lhe ranks of Lhe pollce Lhose who are lnnocenL are denled
[usLlce or Lhrough blunder Lhose who are gullLy are allowed Lo escape
punlshmenL
L|m|gued vs Lxevea 8 SCkA 1S
Iacts Arsenlo Lumlqued was Lhe 8eglonal ulrecLor of Lhe
ueparLmenL of Agrarlan 8eform Cordlllera AuLonomous 8eglon (uA8CA8)
unLll resldenL lldel v 8amos dlsmlssed hlm from LhaL poslLlon pursuanL Lo
AdmlnlsLraLlve Crder no 32 daLed May 12 1993 ln vlew of Lumlqued's
deaLh on May 19 1994 hls helrs lnsLlLuLed Lhls peLlLlon
for cettlototl and mooJomos quesLlonlng such order
1he dlsmlssal was Lhe afLermaLh of Lhree complalnLs flled by uA8
CA8 8eglonal Cashler and prlvaLe respondenL !eanneLLe CbarZamudlo wlLh
1 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

Lhe 8oard of ulsclpllne of Lhe uA8 1he flrsL affldavlLcomplalnL daLed
november 16 1989
1
charged Lumlqued wlLh malversaLlon Lhrough
falslflcaLlon of offlclal documenLs lrom May Lo SepLember 1989lollowlng
Lhe concluslon of Lhe hearlngs Lhe lnvesLlgaLlng commlLLee rendered a
reporL daLed !uly 31 1992
10
flndlng Lumlqued llable for all Lhe charges
agalnsL hlm
Accordlngly Lhe lnvesLlgaLlng commlLLee recommended
Lumlqued's dlsmlssal or removal from offlce wlLhouL pre[udlce Lo Lhe flllng
of Lhe approprlaLe crlmlnal charges agalnsL hlm
AcLlng on Lhe reporL and recommendaLlon former !usLlce
SecreLary lranklln M urllon adopLed Lhe same ln hls Memorandum Lo
resldenL lldel v 8amos daLed CcLober 22 1992 Pe added LhaL Lhe flllng of
Lhe affldavlL of deslsLance
11
would noL prevenL Lhe lssuance of a resoluLlon
on Lhe maLLer conslderlng LhaL whaL was aL sLake was noL only Lhe vlolaLlon
of complalnanL's (hereln prlvaLe respondenL's) personalrlghLs" buL also Lhe
compeLence and flLness of Lhe respondenL (Lumlqued) Lo remaln ln publlc
offlce" Pe oplned LhaL ln facL Lhe evldence on record could call for a
punlLlve acLlon agalnsL Lhe respondenL on Lhe lnlLlaLlve of Lhe uA8"
Cn uecember 17 1992 Lumlqued flled a moLlon for
reconslderaLlon of Lhe flndlngs of Lhe CommlLLee" wlLh Lhe
uC!
12
undersecreLary 8amon S Lsguerra lndorsed Lhe moLlon Lo Lhe
lnvesLlgaLlng commlLLee
13
ln a leLLer daLed Aprll 1 1993 Lhe Lhreemember
lnvesLlgaLlng commlLLee lnformed undersecreLary Lsguerra LhaL Lhe
commlLLee had no more auLhorlLy Lo acL on Lhe same (moLlon for
reconslderaLlon) conslderlng LhaL Lhe maLLer has already been forwarded Lo
Lhe Cfflce of Lhe resldenL" and LhaL Lhelr auLhorlLy under ueparLmenL Crder
no 143 ceased when Lhey LransmlLLed Lhelr reporL Lo Lhe uC!
14
Concurrlng
wlLh Lhls vlew undersecreLary Lsguerra lnformed Lumlqued LhaL Lhe
lnvesLlgaLlng commlLLee could no longer acL on hls moLlon for
reconslderaLlon Pe added LhaL Lhe moLlon was also premaLurely flled
because Lhe Cfflce of Lhe resldenL (C) had yeL Lo acL on SecreLary urllon's
recommendaLlon
13

Cn May 12 1993 resldenL lldel v 8amos hlmself lssued
AdmlnlsLraLlve Crder no 32 (AC no 32)
16
flndlng Lumlqued
admlnlsLraLlvely llable for dlshonesLy ln Lhe alLeraLlon of flfLeen gasollne
recelpLs and dlsmlsslng hlm from Lhe servlce wlLh forfelLure of hls
reLlremenL and oLher beneflLs1he C however found LhaL Lhe charges of
oppresslon and harassmenL as well as LhaL of lncurrlng unllquldaLed cash
advances were noL saLlsfacLorlly esLabllshed
ln a peLlLlon for appeal"
17
addressed Lo resldenL 8amos
Lumlqued prayed LhaL AC no 32 be reconsldered and LhaL he be relnsLaLed
Lo hls former poslLlon wlLh all Lhe beneflLs accorded Lo hlm by law and
exlsLlng rules and regulaLlons" 1hls peLlLlon was baslcally premlsed on Lhe
affldavlL daLed May 27 1993 of a cerLaln uwlghL L Lumlqued a former
drlver of Lhe uA8CA8 who confessed Lo havlng auLhored Lhe falslflcaLlon of
gasollne recelpLs and aLLesLed Lo peLlLloner Lumlqued's belng an honesL
man" who had no premonlLlon" LhaL Lhe recelpLs he (uwlghL) Lurned over Lo
hlm were alLered"
18

1reaLlng Lhe peLlLlon for appeal" as a moLlon for Lhe
reconslderaLlon of AC no 32 Lhe C Lhrough Senlor uepuLy LxecuLlve
SecreLary Leonardo A Culsumblng denled Lhe same on AugusL 31 1993
undaunLed Lumlqued flled a second moLlon for reconslderaLlon
alleglng among oLher Lhlngs LhaL he was denledLhe consLlLuLlonal rlghL Lo
counsel durlng Lhe hearlng
19
Cn May 19 1994
20
however before hls
moLlon could be resolved Lumlqued dled Cn SepLember 28
1994
21
SecreLary Culsumblng denled Lhe second moLlon for reconslderaLlon
for lack of merlL
Pence Lhe lnsLanL peLlLlon for cettlototl and mooJomos praylng
for Lhe reversal of Lhe 8eporL and 8ecommendaLlon of Lhe lnvesLlgaLlng
CommlLLee Lhe CcLober 22 1992 Memorandum of Lhen !usLlce SecreLary
urllon AC no 32 lssued by resldenL 8amos and Lhe orders of SecreLary
Culsumblng ln a nuLshell lL prays for Lhe paymenL of reLlremenL beneflLs
and oLher beneflLs accorded Lo deceased Arsenlo Lumlqued by law payable
Lo hls helrs and Lhe backwages from Lhe perlod he was dlsmlssed from
servlce up Lo Lhe Llme of hls deaLh on May 19 1994"
22

lssue uoes Lhe due process clause encompass Lhe rlghL Lo be
asslsLed by counsel durlng an admlnlsLraLlve lnqulry?
Peld 1he r|ght to counse| wh|ch cannot be wa|ved un|ess the
wa|ver |s |n wr|t|ng and |n the presence of counse| |s a r|ght afforded a
suspect or an accused dur|ng custod|a| |nvest|gat|on
23
lL ls noL an absoluLe
rlghL and may Lhus be lnvoked or re[ecLed ln a crlmlnal proceedlng and
wlLh more reason ln an admlnlsLraLlve lnqulry ln Lhe case aL bar peLlLloners
lnvoke Lhe tlqbt of oo occoseJ ln crlmlnal proceedlngs Lo have compeLenL
and lndependenL counsel of hls own cholce Lumlqued however was noL
accused of any crlme ln Lhe proceedlngs below 1he lnvesLlgaLlon conducLed
by Lhe commlLLee creaLed by ueparLmenL Crder no 143 was for Lhe purpose
of deLermlnlng lf he could be held oJmlolsttotlvely lloble under Lhe law for
Lhe complalnLs flled agalnsL hlm
As such Lhe hearlng conducLed by Lhe lnvesLlgaLlng commlLLee
was noL parL of a crlmlnal prosecuLlon 1hls was even made more
pronounced when afLer flndlng Lumlqued admlnlsLraLlvely llable lL hlnLed aL
Lhe flllng of crlmlnal case for malversaLlon Lhrough falslflcaLlon of publlc
documenLs ln lLs reporL and recommendaLlon
eLlLloners' mlsconcepLlon on Lhe naLure of Lhe
lnvesLlgaLlon
23
conducLed agalnsL Lumlqued appears Lo have been
engendered by Lhe facL LhaL Lhe uC! conducLed lL Whlle lL ls Lrue LhaL under
Lhe AdmlnlsLraLlve Code of 1987 Lhe uC! shall admlnlsLer Lhe crlmlnal
[usLlce sysLem ln accordance wlLh LheaccepLed processes Lhereof conslsLlng
ln Lhe lnvesLlgaLlon of Lhe crlmes prosecuLlon of offenders and
admlnlsLraLlon of Lhe correcLlonal sysLem"
26
conducLlng crlmlnal
lnvesLlgaLlons ls noL lLs sole funcLlon 8y lLs power Lo perform such oLher
funcLlons as may be provlded by law"
27
prosecuLors may be called upon Lo
conducL admlnlsLraLlve lnvesLlgaLlons Accordlngly Lhe lnvesLlgaLlng
commlLLee creaLed by ueparLmenL Crder no 143 was duLybound Lo
conducL Lhe admlnlsLraLlve lnvesLlgaLlon ln accordance wlLh Lhe rules
Lhereforaccordance wlLh Lhe rules Lherefor
Whlle lnvesLlgaLlons conducLed by an admlnlsLraLlve body may aL
Llmes be akln Lo a crlmlnal proceedlng Lhe facL remalns LhaL under exlsLlng
laws a parLy ln an admlnlsLraLlve lnqulry may or may noL be asslsLed by
counsel lrrespecLlve of Lhe naLure of Lhe charges and of Lhe respondenL's
capaclLy Lo represenL hlmself and no duLy resLs on such a body Lo furnlsh Lhe
person belng lnvesLlgaLed wlLh counsel
28
ln an admlnlsLraLlve proceedlng
such as Lhe one LhaL Lransplred below a respondenL (such as Lumlqued) has
Lhe opLlon of engaglng Lhe servlces of counsel or noL 1hls ls clear from Lhe
provlslons of SecLlon 32 ArLlcle vll of 8epubllc AcL no 2260
29
(oLherwlse
known as Lhe Clvll Servlce AcL) and SecLlon 39 paragraph 2 8ule xlv (on
dlsclpllne) of Lhe Cmnlbus 8ules lmplemenLlng 8ook v of LxecuLlve Crder no
292
30
(oLherwlse known as Lhe AdmlnlsLraLlve Code of 1987) LxcerpLs from
Lhe LranscrlpL of sLenographlc noLes of Lhe hearlngs aLLended by
Lumlqued
31
clearly show LhaL he was confldenL of hls capaclLy and so opLed
Lo represenL hlmself 1hus Lhe rlghL Lo counsel ls noL lmperaLlve ln
admlnlsLraLlve lnvesLlgaLlons because such lnqulrles are conducLed merely Lo
deLermlne wheLher Lhere are facLs LhaL merlL dlsclpllnary measures agalnsL
errlng publlc offlcers and employees wlLh Lhe purpose of malnLalnlng Lhe
dlgnlLy of governmenL servlce
lurLhermore peLlLloners' rellance on 8esoluLlon no 940321 of
Lhe Clvll Servlce Commlsslon on Lhe unlform rocedure ln Lhe ConducL of
AdmlnlsLraLlve lnvesLlgaLlon sLaLlng LhaL a respondenL ln an admlnlsLraLlve
complalnL musL be lnformed of hls rlghL Lo Lhe asslsLance of a counsel of hls
cholce"
32
ls lnapproprlaLe ln Lhe flrsL place Lhls resoluLlon ls appllcable
only Lo cases broughL before Lhe Clvll Servlce Commlsslon
33
Secondly sald
resoluLlon whlch ls daLed !anuary 23 1994 Look effecL flfLeen days followlng
lLs publlcaLlon ln a newspaper of general clrculaLlon
34
much laLer Lhan Lhe
!uly 1992 hearlngs of Lhe lnvesLlgaLlng commlLLee creaLed by ueparLmenL
Crder no 143 1hlrdly Lhe same commlLLee was noL remlss ln Lhe maLLer of
remlndlng Lumlqued of hls rlghL Lo counsel
17 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

Upsu vs |aguesma
Issues
(1) whether the route managers at eps|Co|a roducts
h|||pp|nes Inc are manager|a| emp|oyees and
() whether Art S |nsofar as |t proh|b|ts manager|a|
emp|oyees from form|ng [o|n|ng or ass|st|ng |abor un|ons v|o|ates Art III
8 of the Const|tut|on
ne|d 1he Lerm manager" generally refers Lo anyone who ls
responslble for subordlnaLes and oLher organlzaLlon resources ll8S1LlnL
MAnACL8S 1he lowesL level ln an organlzaLlon aL whlch lndlvlduals are
responslble for Lhe work of oLhers ls called fltstlloe ot fltstlevel
moooqemeot llrsLllne managers dlrecL operaLlng employees only Lhey do
noL supervlse oLher managers Lxample of flrsLllne managers are Lhe
foreman" or producLlon supervlsor ln a manufacLurlng planL Lhe Lechnlcal
supervlsor ln a research deparLmenL and Lhe clerlcal supervlsor ln a large
offlce llrsLlevel managers are ofLen called supervlsors
MluuLL MAnACL8S 1he Lerm mlJJle moooqemeot can refer Lo
more Lhan one level ln an organlzaLlon Mlddle managers dlrecL Lhe acLlvlLles
of oLher managers and someLlmes also Lhose of operaLlng
employees Mlddle managers' prlnclpal responslblllLles are Lo dlrecL Lhe
acLlvlLles LhaL lmplemenL Lhelr organlzaLlons' pollcles and Lo balance Lhe
demands of Lhelr superlors wlLh Lhe capaclLles of Lhelr subordlnaLes A planL
manager ln an elecLronlcs flrm ls an example of a mlddle manager
1C MAnACL8S Composed of a comparaLlvely small group of
execuLlves top moooqemeot ls responslble for Lhe overall managemenL of
Lhe organlzaLlon lL esLabllshes operaLlng pollcles and guldes Lhe
organlzaLlon's lnLeracLlons wlLh lLs envlronmenL 1yplcal LlLles of Lop
managers are chlef execuLlve offlcer" presldenL" andsenlor vlce
presldenL" AcLual LlLles vary from one organlzaLlon Lo anoLher and are noL
always a rellable gulde Lo membershlp ln Lhe hlghesL managemenL
classlflcaLlon
2

As can be seen from Lhls descrlpLlon a dlsLlncLlon exlsL beLween
Lhose who have Lhe auLhorlLy Lo devlse lmplemenL and conLrol sLraLeglc and
operaLlonal pollcles (Lop and mlddle managers) and Lhose whose Lask ls
slmply Lo ensure LhaL such pollces are carrled ouL by Lhe rankandflle
employees of an organlzaLlon (flrsLlevel managers/supervlsors) WhaL
dlsLlngulshes Lhem from Lhe rankand flle employees ls LhaL Lhey acL ln Lhe
lnLeresL of Lhe employer ln supervlslng such rankandflle employees
Managerlal employees" may Lherefore be sald Lo fall lnLo Lwo
dlsLlncL caLegorles Lhe managers" pet se who compose Lhe former group
descrlbed above and Lhe supervlsors" who form Lhe laLLer group WheLher
Lhey belong Lo Lhe flrsL or second caLegory managers vlsvls employers
are llkewlse employees
We examlned carefully Lhe perLlnenL [ob descrlpLlon of Lhe
sub[ecL employees and oLher documenLary evldence on record vlsvls
paragraph (m) ArLlcle 212 of Lhe Labor Code as amended and we flnd LhaL
only Lhose employees occupylng Lhe poslLlon of rouLe manager and
accounLlng manager are managerlal employees 1he resL le quallLy conLrol
manager yard/LransporL manager and warehouse operaLlons manager are
supervlsory employees
1o quallfy as managerlal employee Lhere musL be a clear showlng
of Lhe exerclse of managerlal aLLrlbuLes under paragraph (m) ArLlcle 212 of
Lhe Labor Code as amended ueslgnaLlons or LlLles of poslLlons are noL
conLrolllng ln Lhe lnsLanL case noLhlng on record wlll supporL Lhe clalm LhaL
Lhe quallLy conLrol manager yard/LransporL manager and warehouse
operaLlons manager are vesLed wlLh sald aLLrlbuLes As Lo Lhe rouLe
managers and accounLlng manager we are convlnced LhaL Lhey are
managerlal employees 1helr [ob descrlpLlons clearly reveal so
ln Lhe case of Workers Alllance 1rade unlons (nA1u) vs epsl
Cola roducLs hlls lnc (CSMAA1031891) 13 november 1991 we ruled
LhaL a rouLe manager ls a managerlal employee wlLhln Lhe conLexL of Lhe
deflnlLlon of Lhe law and hence lnellglble Lo [oln form or asslsL a unlon We
have once more passed upon Lhe loglc of our ueclslon aforeclLed ln Lhe llghL
of Lhe lssues ralsed ln Lhe lnsLanL appeal as well as Lhe avallable
documenLary evldence on hand and have come Lo Lhe vlew LhaL Lhere ls no
cogenL reason Lo deparL from our earller holdlng 8ouLe Managers are by
Lhe very naLure of Lhelr funcLlons and Lhe auLhorlLy Lhey wleld over Lhelr
subordlnaLes managerlal employees 1he prescrlpLlon found ln ArL 243 of
Lhe Labor Code as amended Lherefore clearly applles Lo Lhem
4
4
8uL Lhe docLrlne of tes joJlcoto cerLalnly applles Lo adversary
admlnlsLraLlve proceedlngs As early as 1936 ln 8rlllanLes v CasLro
8
8 we
susLalned Lhe dlsmlssal of an acLlon by a Lrlal courL on Lhe basls of a prlor
admlnlsLraLlve deLermlnaLlon of Lhe same case by Lhe Wage AdmlnlsLraLlon
Servlce applylng Lhe prlnclple of tes joJlcoto 8ecenLly ln Abad v nL8C
9
9
we applled Lhe relaLed docLrlne of sLare declsls ln holdlng LhaL Lhe prlor
deLermlnaLlon LhaL cerLaln [obs aL Lhe ALlanLlc Culf and aclflc Co were
pro[ecL employmenLs was blndlng ln anoLher case lnvolvlng anoLher group of
employees of Lhe same company lndeed ln naslplL Lumber Co Lhls CourL
clarlfled Loward Lhe end of lLs oplnlon LhaL Lhe docLrlne of tes
joJlcoto applles Lo [udlclal or quasl [udlclal proceedlngs and noL Lo Lhe
exerclse of admlnlsLraLlve powers
10
v naLlonal Labor 8elaLlons
Commlsslon sopto noLe 710 now proceedlngs for cerLlflcaLlon elecLlon
such as Lhose lnvolved ln Case no CSMA1031891 and Case no CSA3
7192 are quasl [udlclal ln naLure and Lherefore declslons rendered ln such
proceedlngs can aLLaln flnallLy
11
v 8l Coodrlch (Marlklna lacLory)
ConfldenLlal and Salarles Lmployees unlonnA1u 49 SC8A 332 (1973)11
1hus we have ln Lhls case an experLs vlew LhaL Lhe employees
concerned are managerlal employees wlLhln Lhe purvlew of ArL 212 whlch
provldes
(m) managerlal employee ls one who ls vesLed wlLh powers
or prerogaLlves Lo lay down and execuLe managemenL pollcles and/or Lo hlre
Lransfer suspend lay off recall dlscharge asslgn or dlsclpllne
employees Supervlsory employees are Lhose who ln Lhe lnLeresL of Lhe
employer effecLlvely recommend such managerlal acLlons lf Lhe exerclse of
such auLhorlLy ls noL merely rouLlnary or clerlcal ln naLure buL requlres Lhe
use of lndependenL [udgmenL All employees noL falllng wlLhln any of Lhe
above deflnlLlons are consldered rankandflle employees for purposes of
Lhls 8ook
AL Lhe very leasL Lhe prlnclple of flnallLy of admlnlsLraLlve
deLermlnaLlon compels respecL for Lhe flndlng of Lhe SecreLary of Labor LhaL
rouLe managers are managerlal employees as deflned by law ln Lhe absence
of anyLhlng Lo show LhaL such deLermlnaLlon ls wlLhouL subsLanLlal evldence
Lo supporL lL noneLheless Lhe CourL concerned LhaL employees who are
oLherwlse supervlsors may wlLLlngly or unwlLLlngly be classlfled as
managerlal personnel and Lhus denled Lhe
8uL Lhe docLrlne of tes joJlcoto cerLalnly applles Lo adversary
admlnlsLraLlve proceedlngs As early as 1936 ln 8rlllanLes v CasLro
8
8 we
susLalned Lhe dlsmlssal of an acLlon by a Lrlal courL on Lhe basls of a prlor
admlnlsLraLlve deLermlnaLlon of Lhe same case by Lhe Wage AdmlnlsLraLlon
Servlce applylng Lhe prlnclple of tes joJlcoto 8ecenLly ln Abad v nL8C
9
9
we applled Lhe relaLed docLrlne of sLare declsls ln holdlng LhaL Lhe prlor
deLermlnaLlon LhaL cerLaln [obs aL Lhe ALlanLlc Culf and aclflc Co were
pro[ecL employmenLs was blndlng ln anoLher case lnvolvlng anoLher group of
employees of Lhe same company lndeed ln naslplL Lumber Co Lhls CourL
clarlfled Loward Lhe end of lLs oplnlon LhaL Lhe docLrlne of tes
joJlcoto applles Lo [udlclal or quasl [udlclal proceedlngs and noL Lo Lhe
exerclse of admlnlsLraLlve powers
10
v naLlonal Labor 8elaLlons
Commlsslon sopto noLe 710 now proceedlngs for cerLlflcaLlon elecLlon
such as Lhose lnvolved ln Case no CSMA1031891 and Case no CSA3
7192 are quasl [udlclal ln naLure and Lherefore declslons rendered ln such
proceedlngs can aLLaln flnallLy
11
v 8l Coodrlch (Marlklna lacLory)
ConfldenLlal and Salarles Lmployees unlonnA1u 49 SC8A 332 (1973)11
18 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

1hus we have ln Lhls case an experLs vlew LhaL Lhe employees
concerned are managerlal employees wlLhln Lhe purvlew of ArL 212 whlch
provldes
(m) managerlal employee ls one who ls vesLed wlLh powers
or prerogaLlves Lo lay down and execuLe managemenL pollcles and/or Lo hlre
Lransfer suspend lay off recall dlscharge asslgn or dlsclpllne
employees Supervlsory employees are Lhose who ln Lhe lnLeresL of Lhe
employer effecLlvely recommend such managerlal acLlons lf Lhe exerclse of
such auLhorlLy ls noL merely rouLlnary or clerlcal ln naLure buL requlres Lhe
use of lndependenL [udgmenL All employees noL falllng wlLhln any of Lhe
above deflnlLlons are consldered rankandflle employees for purposes of
Lhls 8ook
AL Lhe very leasL Lhe prlnclple of flnallLy of admlnlsLraLlve
deLermlnaLlon compels respecL for Lhe flndlng of Lhe SecreLary of Labor LhaL
rouLe managers are managerlal employees as deflned by law ln Lhe absence
of anyLhlng Lo show LhaL such deLermlnaLlon ls wlLhouL subsLanLlal evldence
Lo supporL lL noneLheless Lhe CourL concerned LhaL employees who are
oLherwlse supervlsors may wlLLlngly or unwlLLlngly be classlfled as
managerlal personnel and Lhus denled Lhe rlghL of self organlzaLlon has
declded Lo revlew Lhe record of Lhls case
kiqht of 5e/frqonitotion of Monoqerio/ mp/oyees under the
Lobor code
1hus Lhe dlcLum ln Lhe CalLex case whlch allowed aL leasL for Lhe
LheoreLlcal unlonlzaLlon of Lop and mlddle managers by asslmllaLlng Lhem
wlLh Lhe supervlsory group under Lhe broad phrase managerlal personnel
provlded Lhe lynchpln for laLer laws denylng Lhe rlghL of selforganlzaLlon noL
only Lo Lop and mlddle managemenL employees buL Lo fronL llne managers or
supervlsors as well lollowlng Lhe CalLex case Lhe Labor Code promulgaLed
ln 1974 under marLlal law dropped Lhe dlsLlncLlon beLween Lhe flrsL and
second subgroups of managerlal employees lnsLead of LreaLlng Lhe Lerms
supervlsor and manager separaLely Lhe law lumped Lhem LogeLher and
called Lhem managerlal employees as follows
A81 212 uefloltloos
(k) Managerlal Lmployee ls one who ls vesLed wlLh powers or
prerogaLlves Lo lay down and execuLe managemenL pollcles and/or Lo hlre
Lransfer suspend lay off recall dlscharge asslgn or dlsclpllne employees or
Lo effecLlvely recommend such managerlal acLlons All employees noL falllng
wlLhln Lhls deflnlLlon are consldered rank and flle employees for purposes of
Lhls 8ook
22
22
1he deflnlLlon shows LhaL lL ls acLually a comblnaLlon of Lhe
commonly undersLood deflnlLlons of boLh groups of managerlal employees
grammaLlcally [olned by Lhe phrase and/or
1hls general deflnlLlon was perhaps legally necessary aL LhaL Llme
for Lwo reasons llrsL Lhe 1974 Code denled supervlsors Lhelr rlghL Lo self
organlze as LhereLofore guaranLeed Lo Lhem by Lhe lndusLrlal eace
AcL Second lL sLood Lhe dlcLum ln Lhe CalLex case on lLs head by prohlblLlng
all Lypes of managers from formlng unlons 1he expllclL general prohlblLlon
was conLalned ln Lhe Lhen ArL 246 of Lhe Labor Code
1he pracLlcal effecL of Lhls synLhesls of legal concepLs was made
apparenL ln Lhe Cmnlbus 8ules lmplemenLlng Lhe Labor Code whlch Lhe
ueparLmenL of Labor promulgaLed on !anuary 19 1973 8ook v 8ule ll 11
of Lhe 8ules provlded
opetvlsoty ooloos ooJ ooloos of secotlty qootJs to ceose
opetotloo All exlsLlng supervlsory unlons and unlons of securlLy guards
shall upon Lhe effecLlvlLy of Lhe Code cease Lo operaLe as such and Lhelr
reglsLraLlon cerLlflcaLes shall be deemed auLomaLlcally cancelled Powever
exlsLlng collecLlve agreemenLs wlLh such unlons Lhe llfe of whlch exLends
beyond Lhe daLe of effecLlvlLy of Lhe Code shall be respecLed unLll Lhelr
explry daLe lnsofar as Lhe economlc beneflLs granLed Lhereln are concerned
Members of supervlsory unlons who do noL fall wlLhln Lhe
deflnlLlon of managerlal employees shall become ellglble Lo [oln or asslsL Lhe
rank and flle labor organlzaLlon and lf none exlsLs Lo form or asslsL ln Lhe
formlng of such rank and flle organlzaLlon 1he deLermlnaLlon of who are
managerlal employees and who are noL shall be Lhe sub[ecL of negoLlaLlon
beLween represenLaLlves of Lhe supervlsory unlon and Lhe employer lf no
agreemenL ls reached beLween Lhe parLles elLher or boLh of Lhem may brlng
Lhe lssue Lo Lhe nearesL 8eglonal Cfflce for deLermlnaLlon
1he ueparLmenL of Labor conLlnued Lo use Lhe Lerm supervlsory
unlons desplLe Lhe demlse of Lhe legal deflnlLlon of supervlsor apparenLly
because Lhese were Lhe unlons of fronL llne managers whlch were Lhen
allowed as a resulL of Lhe sLaLuLory granL of Lhe rlghL of selforganlzaLlon
under Lhe lndusLrlal eace AcL Pad Lhe ueparLmenL of Labor seen flL Lo
slmllarly ban unlons of Lop and mlddle managers whlch may have been
formed followlng Lhe dlcLum ln CalLex lL obvlously would have done so ?eL
lL dld noL apparenLly because no such unlons of Lop and mlddle managers
really Lhen exlsLed
keo/ lntent of the 198 constitutiono/ commission
lL would seem LhaL Commlssloner Lerum slmply meanL Lo resLore
Lhe rlghL of supervlsory employees Lo organlze lor even Lhough he spoke of
Lhe need Lo abollsh ArL 246 of Lhe Labor Code whlch as already sLaLed
prohlblLed managerlal employees ln general from formlng unlons Lhe facL
was LhaL ln explalnlng hls proposal he repeaLedly referred Lo supervlsory
employees whose rlghL under Lhe lndusLrlal eace AcL Lo organlze had been
Laken away by ArL 246 lL ls noLeworLhy LhaL Commlssloner Lerum never
referred Lo Lhe Lhen deflnlLlon of managerlal employees ln ArL 212(m) of
Lhe Labor Code whlch puL LogeLher under Lhe broad phrase managerlal
employees Lop and mlddle managers and supervlsors lnsLead hls
repeaLed use of Lhe Lerm supervlsory employees when such Lerm Lhen
was no longer ln Lhe sLaLuLe books suggesLs a frame of mlnd LhaL remalned
grounded ln Lhe language of Lhe lndusLrlal eace AcL
AlLhough Lhe deflnlLlon of supervlsory employees seems Lo have
been unduly resLrlcLed Lo Lhe lasL phrase of Lhe deflnlLlon ln Lhe lndusLrlal
eace AcL Lhe legal slgnlflcance glven Lo Lhe phrase effecLlvely
recommends remalns Lhe same ln facL Lhe dlsLlncLlon beLween Lop and
mlddle managers who seL managemenL pollcy and fronLllne supervlsors
who are merely responslble for ensurlng LhaL such pollcles are carrled ouL by
Lhe rank and flle ls arLlculaLed ln Lhe presenL deflnlLlon
30
30 When read ln
relaLlon Lo Lhls deflnlLlon ln ArL 212(m) lL wlll be seen LhaL ArL 243 falLhfully
carrles ouL Lhe lnLenL of Lhe ConsLlLuLlonal Commlsslon ln framlng ArL lll 8
of Lhe fundamenLal law
nor ls Lhe guaranLee of organlzaLlonal rlghL ln ArL lll 8 lnfrlnged
by a ban agalnsL managerlal employees formlng a unlon 1he rlghL
guaranLeed ln ArL lll 8 ls sub[ecL Lo Lhe condlLlon LhaL lLs exerclse should be
for purposes noL conLrary Lo law ln Lhe case of ArL 243 Lhere ls a raLlonal
basls for prohlblLlng managerlal employees from formlng or [olnlng labor
organlzaLlons As !usLlce uavlde !r hlmself a consLlLuLlonal commlssloner
sald ln hls pooeoclo ln hlllps lndusLrlal uevelopmenL lnc v nL8C
31
31
ln Lhe flrsL place all Lhese employees wlLh Lhe excepLlon of Lhe
servlce englneers and Lhe sales force personnel are confldenLlal
employees 1helr classlflcaLlon as such ls noL serlously dlspuLed by LCllW
Lhe flve (3) prevlous C8As beLween lul and LCllW expllclLly consldered
Lhem as confldenLlal employees 8y Lhe very naLure of Lhelr funcLlons Lhey
asslsL and acL ln a confldenLlal capaclLy Lo or have access Lo confldenLlal
maLLers of persons who exerclse managerlal funcLlons ln Lhe fleld of labor
relaLlons As such Lhe raLlonale behlnd Lhe lnellglblllLy of managerlal
employees Lo form asslsL or [olnL a labor unlon equally applles Lo Lhem
ln 8olletlo lobllsbloq co loc v oo Aoqosto oocbez Lhls CourL
elaboraLed on Lhls raLlonale Lhus
1he raLlonale for Lhls lnhlblLlon has been sLaLed Lo be
because lf Lhese managerlal employees would belong Lo or be afflllaLed wlLh
a unlon Lhe laLLer mlghL noL be assured of Lhelr loyalLy Lo Lhe unlon ln vlew
19 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

of evldenL confllcL of lnLeresLs 1he unlon can also become company
domlnaLed wlLh Lhe presence of managerlal employees ln unlon
membershlp
32

1o be sure Lhe CourL ln hlllps lndusLrlal was deallng wlLh Lhe
rlghL of confldenLlal employees Lo organlze 8uL Lhe same reason for denylng
Lhem Lhe rlghL Lo organlze [usLlfles even more Lhe ban on managerlal
employees from formlng unlons AfLer all Lhose who quallfy as Lop or
mlddle managers are execuLlves who recelve from Lhelr employers
lnformaLlon LhaL noL only ls confldenLlal buL also ls noL generally avallable Lo
Lhe publlc or Lo Lhelr compeLlLors or Lo oLher employees lL ls hardly
necessary Lo polnL ouL LhaL Lo say LhaL Lhe flrsL senLence of ArL 243 ls
unconsLlLuLlonal would be Lo conLradlcL Lhe declslon ln LhaL case
1eodoro vs Carague SCkA 9
ISSULS
a) Whether or not the grounds |n support of the pet|t|on are mer|tor|ous
and
b) If so whether or not pet|t|oners are ent|t|ed to the re||efs demanded
ne|d We noLe LhaL peLlLloners admlL Lhe declslon ln Lhelr case has already
long become flnal lor all lnLenLs and purposes Lhe lnsLanL case should
ordlnarlly be already barred slnce Lhe old case C8 70242 and Lhe presenL
case C8 96004 have ldenLlLy of parLles sub[ecL maLLer and cause of
acLlon lor as we have already held once a llLlganLs rlghLs have been
ad[udlcaLed ln a valld flnal [udgmenL of a compeLenL courL he should noL be
granLed an unbrldled llcense Lo come back for anoLher Lry (SanLos vs
lnLermedlaLe AppellaLe CourL 143 SC8A 238)
Conslderlng however Lhe surroundlng clrcumsLances We can Lemper
Lechnlcal rules wlLh subsLanLlve [usLlce Lo granL Lhe rellefs prayed for by Lhe
peLlLloners who have devoLed long years of Lhelr llves Lo publlc servlce 8ules
of procedure are lnLended Lo promoLe noL Lo defeaL subsLanLlal [usLlce and
Lherefore Lhey should noL be applled ln a very rlgld and Lechnlcal sense
(Calaslao larmers CooperaLlve MarkeLlng AssoclaLlon lnc vs CourL of
Appeals 106 SC8A 630) Also lL ls wlLhln Lhe lnherenL power and dlscreLlon
of Lhe CourL Lo amend modlfy or reconslder a flnal [udgmenL when because
of supervenlng evenLs lL becomes lmperaLlve ln Lhe hlgher lnLeresL of [usLlce
Lo dlrecL lLs modlflcaLlon ln order Lo harmonlze Lhe dlsposlLlon wlLh Lhe
prevalllng clrcumsLances or whenever lL ls necessary Lo accompllsh Lhe
admlnlsLraLlon of [usLlce (Callndez v 8ural 8ank of Llanera 173 SC8A 132
1989) 8esldes no prlvaLe lndlvldual wlll be flnanclally pre[udlced should we
overLurn Lhe flnal [udgmenL ln Lhls case nelLher wlll Lhe governmenL be
pre[udlced because afLer all Lhere ls a prlce Lo pay for Lhe obLalnlng of
dlsLrlbuLlve [usLlce
ln Lhls respecL lL has been declared LhaL tes joJlcoto as Lhe embodlmenL of a
publlc pollcy musL aL Llmes be welghed agalnsL compeLlng lnLeresLs and
musL on occaslon yleld Lo oLher pollcles 1he deLermlnaLlon of Lhe quesLlon
ls sald Lo requlre a compromlse ln each case of Lhe Lwo opposlng pollcles of
Lhe deslrablllLy of flnallLy and Lhe publlc lnLeresL ln searchlng Lhe rlghL resulL
(46 Am !ur pp 402403)
underlylng all dlscusslon of Lhe problem musL be Lhe prlnclple of
fundamenLal falrness ln Lhe due process sense lL has accordlngly been
ad[udged LhaL Lhe publlc pollcy underlylng Lhe prlnclple of Lhetes
joJlcoto musL be consldered LogeLher wlLh Lhe pollcy LhaL a parLy shall noL be
deprlved of a falr adversary proceedlng ln whlch Lo presenL hls case (46 Am
!ur p 403)
kes joJlcoto ls Lo be dlsregarded lf Lhe appllcaLlon would lnvolve Lhe
sacrlflce of [usLlce Lo LechnlcallLylL ls raLher Loo laLe ln Lhe day for peLlLloner
Lo quesLlon now Lhe lack or excess of [urlsdlcLlon of Lhe AppellaLe CourL ln
renderlng Lhe sald declslon on Lhe alleged ground LhaL sald CourL ls
precluded from reverslng Lhe award of Lhe loL on Lhe ground of tes joJlcoto
lL should be obvlous Lo peLlLloner LhaL Lhe defense of tes joJlcoto when noL
lnLerposed elLher ln a moLlon Lo dlsmlss or ln an answer ls deemed walved
(vergara vs 8ugue 78 SC8A 312 1977 cltloq hlllpplne Coal Mlners unlon
vs CLCC 10 SC8A 784 1964)
It |s ax|omat|c that for the doctr|ne of res judicoto to app|y |t |s essent|a|
that the pr|or [udgment |nvoked as a bar to a subsequent act|on or
proceed|ng be inter o/io one on the mer|ts Lqua||y percept|ve |s that |f the
doctr|ne |s not set up as a defense or ground of ob[ect|on seasonab|y |t |s
deemed wa|ved |t cannot beasserted for the f|rst t|me on appea| (Alvarez
!r vs CourL of Appeals 138 SC8A 407 1988)
1he pr|nc|p|e of res judicoto shou|d be d|sregarded |f |ts app||cat|on wou|d
|nvo|ve the sacr|f|ce of [ust|ce to techn|ca||ty and]or a bar to a v|nd|cat|on
of a |eg|t|mate gr|evance (8onqulllo vs Maraslgan 3 SC8A 304 312)
1he dlspensaLlon of [usLlce and Lhe vlndlcaLlon of leglLlmaLe grlevance should
noL be barred by LechnlcallLles (SanLlago vs 8amlrez 8 SC8A 137)
kes judicoto as a defense |s wa|ved when not |nterposed |n a mot|on to
d|sm|ss or |n an answer (vergara vs 8ugue 78 SC8A 312)
Where res judicoto was ra|sed as a defense on|y |n the mot|on for
recons|derat|on the same |s a|ready deemed wa|ved (ulldo vs ulldo 117
SC8A 16)
If res judicoto |s not set up as a defense or ground of ob[ect|on seasonab|y
|t |s deemed wa|ved and cannot be assa||ed for the f|rst t|me on appea|
(Alvarez !r vs CourL of Appeals 138 SC8A 401)
8e lL flnally noLed LhaL lf tes joJlcoto ls noL seL up as a defense lL CAnnC1 be
applled Clearly Lhls would be a WAlvL8
Colng Lo Lhe merlLs of Lhe case Lhe Lhen MlnlsLer of 8udgeL refused Lo
release Lhe amounL represenLed by Lhe MlnlsLry of lorelgn Affalrs Lo cover
peLlLloners clalms for Lermlnal leave credlLs slnce Lhey dld noL conform wlLh
!olnL MlnlsLry of lorelgn Affalrs MlnlsLry of Lhe 8udgeL Crder no 3083
daLed uecember 1 1983 parLlcularly SecLlon 6 Lhereof Lo wlL
Sec 6 1he forelgn servlce porLlon of Lhe Lermlnal leave credlLs earned prlor
Lo 1 !anuary 1978 compuLed on Lhe basls of hlghesL salary recelved shall be
converLed Lo uS dollars aL Lhe raLe of 200 Lo $100 pursuanL Lo ueparLmenL
Crder no 3367 daLed 9 CcLober 1967 and Sec 10 of u no 1283
and sboll be poyoble lo lblllpploe pesos ot tbe tote of excbooqe ptevollloq ot
tbe tlme of tetltemeot reslgnaLlon separaLlon from Lhe servlce or deaLh
(Lmphasls supplled)
Sald Crder whlch Look effecL on uecember 1 1983 cannoL apply reLroacLlvely
Lo Lhe clalms of peLlLloners 1eodoro and Zacarlas who reLlred on March 14
1977 and !une 20 1980 respecLlvely 1he law appllcable ls SecLlon 3 of
ueparLmenL Crder no 3367 daLed CcLober 9 1967 Lo wlL
Sec 3 leove cteJlts upon appllcaLlon Lhe money value of Lhe leave credlLs
earned abroad of any offlclal offlcer or employee who reLlres reslgns or
dles whlle ln Lhe setvlce moy be polJ to blm lo fotelqo cotteocy ot tbe tote of
l200 to 5100 (Lmphasls supplled_
lL was noL requlred LhaL Lhe forelgn currency due Lhe sub[ecL offlcer or
employee be pald Lo hlm ln hlllpplne pesos Lo be converLed aL Lhe raLe of
exchange prevalllng aL Lhe Llme of reLlremenL
Moreover SecLlon 10 of resldenLlal uecree no 1283 whlch Look effecL on
!anuary 13 1978 provldes
Sec 10 AccomoloteJ leoves upon reLlremenL deaLh or separaLlon from Lhe
servlce of any offlcer or employee ln Lhe forelgn servlce unen[oyed vacaLlon
or slck leave credlLs shall be compuLed on Lhe basls of acLual salary and shall
be pald ln hlllpplne pesos and oLherwlse shall be on Lhe same basls as home
offlce personnel who reLlre ln Lhe hlllpplnes ltovlJeJ @bot ooy
occomoloteJ leoves eotoeJ os of tbe effectlvlty of tbls uectee moy be polJ to
offlcets ooJ employees leovloq tbe setvlce oo tbe bosls of oppllcoble toles ooJ
teqolotloos exlstloq ptlot to tbls uectee (Lmphasls supplled)
| A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

As apLly observed by Lhe SollclLor Ceneral
Pence Lo apply !olnL MlnlsLry of lorelgn AffalrsMlnlsLry of Lhe 8udgeL
Crder no 3083 Lo accumulaLed leaves earned prlor Lo Lhe effecLlvlLy of
resldenLlal uecree no 1283 would ln effecL be an amendmenL of sald
uecree by Lhe Lhen MlnlsLers of lorelgn Affalrs and 8udgeL whlch cannoL be
counLenanced
Surely a law such as resldenLlal uecree no 1283 cannoL be amended by a
slmple ueparLmenL Crder
ln addlLlon slnce oLher offlcers and employees of Lhe Lhen MlnlsLry of
lorelgn Affalrs who were slmllarly slLuaLed as Lhe peLlLloners were pald ln
hlllpplne pesos of Lhe value ln forelgn currency of Lhelr Lermlnal leave
credlLs earned abroad aL Lhe raLe of exchange aL Lhe Llme of paymenLs
Lhereof Lhen lL wlll noL only dlscrlmlnaLe agalnsL buL also cause ln[usLlce Lo
peLlLloners Lo be pald ln hlllpplne pesos Lhe money value ln uS dollars of
Lhelr Lermlnal leave credlLs earned abroad aL Lhe raLe of exchange Lhen
prevalllng aL Lhe Llme of Lhelr reLlremenLs
remlses consldered Lhe CourL 8esolved Lo C8uL8 respondenL 8udgeL
SecreLary Carague Lo release Lo Lhe ueparLmenL of lorelgn Affalrs Lhe sum of
30614100 for Lhe paymenL of Lhe balance due peLlLloners on Lhelr clalms
for Lermlnal leave pay
U VS CCA
lAC1S eLlLloners were permanenL employees of Lhe rovlnclal Lnglneerlng
Cfflce who were dlsmlssed by Lhe governor allegedly Lo scale down Lhe
operaLlons of LhaL offlce eLlLloners flled a peLlLlon for relnsLaLemenL wlLh
Lhe MerlL roLecLlon SysLem 8oard 1he board held LhaL Lhe reducLlon ln
work force was noL done ln accordance wlLh Lhe clvll servlce rules slnce lL
was made wlLhouL comparlng Lhe relaLlve flLness efflclency and lengLh of
servlce of Lhe employees lL ordered Lhe relnsLaLemenL of peLlLloners and
paymenL of Lhelr back salarles 1he declslon became flnal 1he Commlsslon
on AudlL dlsallowed Lhe paymenL of back salarles on Lhe ground LhaL lL
should be Lhe personal llablllLy of Lhe governor slnce lllegal dlsmlssal was
done ln bad falLh
lSSuLS wheLher respondenL CCA ln Lhe exerclse of lLs power Lo
audlL can dlsallow Lhe paymenL of back wages of lllegally dlsmlssed
employees by Lhe rovlnclal CovernmenL of Agusan del Sur whlch has been
decreed pursuanL Lo a flnal declslon of Lhe Clvll Servlce Commlsslon
respondenL CCA ls berefL of power Lo dlsallow Lhe paymenL of
peLlLloners back wages
IIkS1 1he rullng of Lhe respondenL CCA ls based on lLs flndlng
LhaL bad falLh aLLended Lhe dlsmlssal of peLlLloners ln arrlvlng aL Lhls
concluslon respondenL CCA re||ed so|e|y on Lhe MS8 declslon of !anuary
29 1993 holdlng LhaL Lhe dlsmlssal was lllegal because flrsL lL was made ln
vlolaLlon of SecLlon 29 of LC 292 and SecLlon 14 of Lhe 8ules on ersonnel
AcLlon and ollcles and second new casual employees were hlred under Lhe
gulse of exlgency of Lhe publlc servlce A carefu| perusa| of sa|d Dec|s|on w|||
d|sc|ose that the MS8 never made a categor|ca| f|nd|ng of fact that former
Governor aredes acted |n bad fa|th and hence |s persona||y ||ab|e for the
payment of pet|t|oners back wages Indeed the MS8 even found that
there was |ack of funds wh|ch wou|d have [ust|f|ed the reduct|on |n the
workforce were |t not for the procedura| |nf|rm|t|es |n |ts |mp|ementat|on
lf Lhe MS8 found bad falLh on Lhe parL of Covernor aredes lL would have
caLegorlcally decreed hls personal llablllLy for Lhe lllegal dlsmlssal of Lhe
peLlLloners 1o be sure even Lhe peLlLloners dld noL proceed from Lhe Lheory
LhaL Lhelr dlsmlssal ls Lhe personal llablllLy of Covernor aredes lamlllar
learnlng ls our rullng LhaL bad falLh cannoL be presumed and he who alleges
bad falLh has Lhe ooos of provlng lL
11
ln Lhe case aL bar Lhe dec|s|on of the
MS8 by |tse|f does noL meeL Lhe quanLum of proof necessary Lo overcome
Lhe presumpLlon of good falLh
SLCCND 1he case aL bar brlngs Lo Lhe fore Lhe parameLers of Lhe
power of Lhe respondenL CCA Lo declde adm|n|strat|ve cases lnvolvlng
expendlLure of publlc funds
12
undoubLedly Lhe exerclse of Lhls power
lnvolves Lhe quas|[ud|c|a| aspect of government aud|t As sLaLuLorlly
envlsloned Lhls perLalns Lo Lhe examlnaLlon audlL and seLLlemenL of all
debLs and clalms of any sorL due from or owlng Lo Lhe CovernmenL orany of
lLs subdlvlslons agencles and lnsLrumenLallLles
13
1he process of
governmenL audlL ls ad[udlcaLlve ln naLure 1he declslons of CCA presuppose
an ad[udlcaLory process lnvolvlng Lhe deLermlnaLlon and resoluLlon of
opposlng clalms lLs work as ad[udlcaLor of money clalms for or agalnsL Lhe
governmenL means Lhe exerclse of [udlclal dlscreLlon lL lncludes Lhe
lnvesLlgaLlon welghlng of evldence and resolvlng wheLher lLems should or
should noL be lncluded or as applled Lo clalm wheLher lL should be allowed
or dlsallowed ln whole or ln parL lLs concluslons are noL mere oplnlons buL
are declslons whlch may be elevaLed Lo Lhe Supreme CourL on cettlototl by
Lhe aggrleved parLy
14

Accordlngly the fundamenta| requ|rements of procedura| due
process cannot be v|o|ated |n proceed|ngs before the CCA ln Lhe case aL
bar former Governor aredes was never made a party Lo nor served a
noLlce of Lhe proceedlngs before Lhe CCA Whlle admlnlsLraLlve agencles
exerclslng quasl[udlclal powers are noL hlde bound by Lechnlcal procedures
noneLheless Lhey are noL free Lo dlsregard Lhe baslc demands of due
process
13
noLlce Lo enable Lhe oLher parLy Lo be heard and Lo presenL
evldence ls noL a mere LechnlcallLy or a Lrlvlal maLLer ln any admlnlsLraLlve
proceedlngs buL an lndlspensable lngredlenL of due process
16
lL would be
unfalr for CCA Lo hold former Covernor aredes personally llable for Lhe
clalms of peLlLloners amounLlng Lo mllllons of pesos wlLhouL glvlng hlm an
opporLunlLy Lo be heard and presenL evldence ln hls defense Cur ru||ngs
ho|d|ng that pub||c off|c|a|s are persona||y ||ab|e for damages ar|s|ng from
|||ega| acts done |n bad fa|th are prem|sed on sa|d off|c|a|s hav|ng been sued
both |n the|r off|c|a| and persona| capac|t|es
17

1nIkD 1here |s a further |mped|ment |n the exerc|se of the aud|t
power of the respondent CCA 1he MS8 dec|s|on of Ianuary 9 1993
became f|na| and executory when the rov|nc|a| Government of Agusan de|
Sur fa||ed to appea| w|th|n the reg|ementary per|od 1o be sure Lhe declslon
has already been part|a||y executed as Lhe AcLlng rovlnclal 1reasurer had
pald peLlLloners some of Lhelr backwages Aga|n our undev|at|ng
[ur|sprudence |s that f|na| [udgments may no |onger be rev|ewed or |n any
way mod|f|ed d|rect|y or |nd|rect|y by a h|gher court not even by the
Supreme Court much |ess by any other off|c|a| branch or department of
Government
18
AdmlnlsLraLlve declslons musL end someLlme as publlc pollcy
demands LhaL flnallLy be wrlLLen on conLroversles
19
In the case at bar the
act|on taken by CCA |n d|sa||ow|ng the further payment by the rov|nc|a|
Government of Agusan de| Sur of backwages due the pet|t|oners amended
the f|na| dec|s|on of the MS8 1he [urlsdlcLlon of Lhe MS8 Lo render sald
declslon ls unquesLlonable 1h|s dec|s|on cannot be categor|zed as
vo|d 1hus we cannoL allow Lhe CCA Lo seL lL aslde ln Lhe exerclse of lLs
broad powers of audlL 1he audlL auLhorlLy of CCA ls lnLended Lo prevenL
lrregular unnecessary excesslve exLravaganL or unconsclonable
expendlLures or uses of governmenL funds and properLles
20
aymenL of
backwages Lo lllegally dlsmlssed governmenL employees can hardly be
descrlbed as lrregular unnecessary excesslve exLravaganL or
unconsclonable 1hls ls Lhe reason why Lhe AcLlng rovlnclal 1reasurer
desplLe Lhe pendency of hls query wlLh Lhe CCA proceeded Lo release
governmenL funds ln parLlal paymenL of Lhe clalms of peLlLloners
It cannot ||kew|se be sa|d that the MS8 grave|y abused |ts
d|scret|on |n fa|||ng to ho|d former Governor aredes persona||y ||ab|e ln
Lhe flrsL place lL ls noL clear wheLher Lhe peLlLloners sued former Covernor
aredes ln hls personal capaclLy lndeed Lhey dld noL appeal Lhe rullng of Lhe
MS8 whlch dld noL hold Covernor aredes personally llable for Lhe paymenL
of Lhelr back salarles Moreover [urlsprudence exlsLs LhaL under excepLlonal
clrcumsLances publlc offlclals who acLed ln bad falLh ln Lhe performance of
Lhelr offlclal duLles were noL held personally llableWe are noL unaware of
our rullng ln Agulnaldo v Sandlganbayan
22
LhaL Lhe concluslve effecL of Lhe
flnallLy of Lhe CCA's declslon on Lhe execuLlve branch of Lhe governmenL
relaLes solely Lo Lhe admlnlsLraLlve aspecL of Lhe maLLer Powever ln Lhe
case aL bar Lhe dlsallowance of Lhe paymenL of backwages rad|ca||y
a|ters Lhe MS8 declslon whlch held Lhe provlnclal governmenL noL Lhe
1 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

provlnclal governor personally llable 1he CCA dec|s|on affects not on|y the
procedura| but more |mportant|y the substant|ve r|ghts of the part|es
ICUk1n We subscrlbe Lo Lhe Llmehonored docLrlne LhaL
esLoppel wlll noL lle agalnsL Lhe SLaLe ln Lhe case of Cl8 v CA eL
al
3
however we held LhaL admlLLedly Lhe governmenL ls noL esLopped
from collecLlng Laxes legally due because of mlsLakes or errors of lLs
agenLs 8ut ||ke other pr|nc|p|es of |aw th|s adm|ts of except|ons |n the
|nterest of [ust|ce and fa|r p|ay as where ln[usLlce wlll resulL Lo Lhe
Laxpayer ln Lhe case aL bar a sLrlngenL appllcaLlon of Lhe rule exempLlng
Lhe sLaLe from Lhe equlLable prlnclple of esLoppel wlll pre[udlce peLlLloners
who are |ow|y emp|oyees of government
et|t|oners suffer|ngs started way back |n 1988 when Lhey were
unceremonlously dlsmlssed from Lhe servlce lL Look flve years for Lhe MS8
Lo declde ln Lhelr favor SLlll Lhey were noL relnsLaLed unLll Lhe followlng
year and Lhls only afLer several moLlons flled and orders lssued Lo compel
Lhe concerned publlc offlclals Lo relnsLaLe Lhem 1hen agaln desplLe an Crder
lssued as early as Aprll 19 1993 by Lhe MS8 Lhe provlnclal governmenL was
able Lo pay peLlLloners and even only parLlally aL LhaL a good Lwo and a half
years afLer or on uecember 12 1993 Now after more than a decade
respondenL CCA holds LhaL peLlLloners should run afLer Covernor aredes ln
hls personal capaclLy Lo collecL Lhelr clalms Worse peLlLloners sLand ln
danger of belng made Lo relmburse whaL has been pald Lo Lhem under Lhe
pollcy of soclal [usLlce Lhe law bends over backward Lo accommodaLe Lhe
lnLeresLs of Lhe worklng class on Lhe humane [usLlflcaLlon LhaL Lhose wlLh less
prlvllege ln llfe should have more ln law
24
k|ght|y we have stressed that
soc|a| [ust|ce |eg|s|at|on to be tru|y mean|ngfu| and reward|ng to our
workers must not be hampered |n |ts app||cat|on by |ongw|nded
arb|trat|on and ||t|gat|on 8lghLs musL be asserLed and beneflLs recelved wlLh
Lhe leasL lnconvenlence
23
And Lhe obllgaLlon Lo afford proLecLlon Lo labor ls
lncumbenL noL only on Lhe leglslaLlve and execuLlve branches buL also on Lhe
[udlclary Lo LranslaLe Lhls pledge lnLo a llvlng reallLy
26
Soclal [usLlce would be
a meanlngless Lerm lf an elemenL of rlgldlLy would be afflxed Lo Lhe
procedural precepLs llexlblllLy should noL be ruled ouL reclsely whaL ls
soughL Lo be accompllshed by such a fundamenLal prlnclple expressly so
declared by Lhe ConsLlLuLlon ls Lhe effecLlveness of Lhe communlLy's efforL Lo
asslsL Lhe economlcally underprlvlleged lor under exlsLlng condlLlons
wlLhouL such succor and supporL Lhey mlghL noL unalded be able Lo secure
[usLlce for Lhemselves 1o make them suffer even |nadvertent|y from the
effect of a [ud|c|a| ru||ng wh|ch perhaps they cou|d not have ant|c|pated
when such dep|orab|e resu|t cou|d be avo|ded wou|d be to d|sregard what
the soc|a| [ust|ce concept stands for
AkkCW 1kANSCk1 VS 8C1
1 lL ls Lo be admlLLed LhaL Lhe clalm for rellef on Lhe asserLed
consLlLuLlonal deflclency based on procedural due process noL from Lhe
sLandpolnL of Lhe absence of a hearlng buL from Lhe lack of [urlsdlcLlon
wlLhouL Lhe requlred publlcaLlon havlng been made was argued vlgorously
and developed exhausLlvely ln Lhe memoranda of peLlLloner 1he argumenLs
seL forLh whlle lmpressed wlLh plauslblllLy do noL sufflce Lo [usLlfy Lhe granL
of cettlototl Moreover Lhe docLrlne announced ln Lhe hlllpplne Long
ulsLance 1elephone Company declslon heavlly leaned on by peLlLloner ls aL
Lhe mosL a frall and lnsubsLanLlal supporL and glves way Lo declslons of Lhls
CourL LhaL have an even more speclflc bearlng on Lhls llLlgaLlon
2 A barrler Lo peLlLloners preLenslon noL only formldable buL
also lnsurmounLable ls Lhe wellseLLled docLrlne LhaL for a provlslonal
permlL an ex potte hearlng sufflces
1
1he declslve conslderaLlon ls Lhe
exlsLence of Lhe publlc need
1S
1haL was shown ln Lhls case respondenL
8oard on Lhe basls of demonsLrable daLa belng saLlsfled of Lhe presslng
necesslLy for Lhe granL of Lhe provlslonal permlL soughL 1here ls no warranL
for Lhe nulllflcaLlon of whaL was ordered by lL lL musL have been as already
noLed Lhls sLaLe of Lhe law LhaL dld lead peLlLloner Lo harp on lLs
lnLerpreLaLlon of whaL for lL ls Lhe Leachlng of Lhe hlllpplne Long ulsLance
1elephone Company declslon
1
1here was Lhereln sLaLed LhaL one of Lhe
compelllng reasons LhaL led Lhls CourL Lo hold LhaL Lhe defuncL ubllc Servlce
Commlsslon dld noL acqulre [urlsdlcLlon was LhaL no provlslon was made for
brlnglng ln as parLles LhereLo Lhe compeLlLors of Lhe hlllpplne Long ulsLance
1elephone Company
17
1haL ls Lhe basls for Lhe ob[ecLlon on procedural due
process ground Whlle no doubL such a holdlng was necessary for Lhe
declslon of LhaL case whlch dealL wlLh a peLlLlon for Lhe reexamlnaLlon of a
declslon LhaL was held Lo be flnal and execuLory lL flnds no appllcaLlon Lo Lhls
conLroversy deallng wlLh a provlslonal permlL 1hls ls made clear by Lhls
porLlon of Lhe oplnlon of !usLlce Sanchez AraneLa seeks reexamlnaLlon of
Lhe raLes approved by Lhe Commlsslon AraneLa avers LhaL Lu1 can carry
ouL lLs lmprovemenL and expanslon program aL less onerous Lerms Lo Lhe
subscrlbers 8uL AraneLa unlverslLy was noL a parLy Lo Lhe raLeflxlng case
or Lo any of Lhe oLher proceedlngs below 1hese raLeflxlng and allled cases
LermlnaLed wlLh Lhe flnal [udgmenL of !anuary 9 1964 noL belng a parLy lL
could noL have moved Lo reconslder sald declslon nor could lL have
appealed from LhaL declslon lL had no sLandlng ln LhaL case Lven lf we
LreaL AraneLas reexamlnaLlon peLlLlon as one for reconslderaLlon Lhe Llme
Lherefor has long passed
18
lL was Lhen sLaLed 1he reexamlnaLlon hereln
soughL by AraneLa perforce seeks Lhe flxlng of new and dlfferenL
raLes
19
lurLher AraneLa ln effecL lnsLlLuLes a ftesb
petltloo for new raLes dlfferenL from Lhose already esLabllshed Such
peLlLlon ls a proceedlng separaLe and dlsLlncL from Lhose concluded by Lhe
flnal [udgmenL of SC of !anuary 9 1964

1he concluslon Lherefore

necessarlly follows We hold LhaL Lhe ubllc Servlce Commlsslon may noL
reduce or lncrease raLes esLabllshed ln a [udgmenL LhaL has become flnal
wlLhouL proper noLlce and LhaL a Commlsslon order reduclng or lncreaslng
sald raLes wlLhouL such noLlce ls vold
1
under Lhe facLs of LhaL case Lhe
procedural due process lnflrmlLy amounLlng Lo lack of [urlsdlcLlon ls qulLe
apparenL 1he opposlLe ls Lrue wlLh Lhls presenL peLlLlon whlch deals wlLh a
granL of provlslonal permlL lL would be Lo llfL ouL of conLexL Lhe reference
made ln Lhe aforesald oplnlon wlLh reference Lo noLlflcaLlon Lo Lhe
compeLlLors Lo glve a color of appllcablllLy Lo Lhe slLuaLlon before us Clearly
Lhen Lhe allegaLlon of a fallure Lo follow Lhe command of Lhe due process
guaranLee ls berefL of any legal foundaLlon
3 1he quesLlon of wheLher Lhe conLroversy ls rlpe for [udlclal
deLermlnaLlon was llkewlse argued by Lhe parLles lor lL ls undenlable LhaL aL
Lhe Llme Lhe peLlLlon was flled Lhere was pendlng wlLh Lhe respondenL 8oard
a moLlon for reconslderaLlon Crdlnarlly lLs resoluLlon should be awalLed
rlor LhereLo an ob[ecLlon grounded on premaLurlLy can be ralsed
noneLheless counsel for peLlLloner would sLress LhaL cerLlorarl lles as Lhe
fallure Lo observe procedural due process ousLed respondenL 8oard of
whaLever [urlsdlcLlon lL could have had ln Lhe premlses 1hls CourL was
lmpelled Lo go lnLo Lhe merlLs of Lhe conLroversy aL Lhls sLage noL only
because of Lhe lmporLance of Lhe lssue ralsed buL also because of Lhe sLrong
publlc lnLeresL ln havlng Lhe maLLer seLLled As was seL forLh ln LxecuLlve
Crder no 101 whlch prescrlbes Lhe procedure Lo be followed by respondenL
8oard lL ls Lhe pollcy of Lhe SLaLe as swlfLly as posslble Lo lmprove Lhe
deplorable condlLlon of vehlcular Lrafflc obLaln maxlmum uLlllzaLlon of
exlsLlng publlc moLor vehlcles and eradlcaLe Lhe harmful and unlawful Lrade
of clandesLlne operaLors as well as updaLe Lhe sLandard of Lhose carrylng
such buslness maklng lL lmperaLlve Lo provlde among oLher urgenLly
needed measures more expedlLlous meLhods ln prescrlblng redeflnlng or
modlfylng Lhe llnes and mode of operaLlon of publlc uLlllLy moLor vehlcles
LhaL now or LhereafLer may operaLe ln Lhls counLry

lL ls essenLlal Lhen
boLh from Lhe sLandpolnL of Lhe flrms engaged as well as of Lhe rldlng publlc
Lo ascerLaln wheLher or noL Lhe procedure followed ln Lhls case and very
llkely ln oLhers of a slmllar naLure saLlsfles Lhe procedural due process
requlremenL 1hus lLs rlpeness for ad[udlcaLlon becomes apparenL
1o paraphrase whaL was sald ln Jo v tlcto
3
where Lhe valldlLy
of a leglslaLlon was passed upon ln a cerLlorarl proceedlng Lo annul and seL
aslde a wrlL of prellmlnary ln[uncLlon Lo so acL would be Lo conserve boLh
Llme and efforL 1hose deslrlng Lo engage ln publlc uLlllLy buslness as well as
Lhe publlc are boLh vlLally concerned wlLhLhe flnal deLermlnaLlon of Lhe
sLandards Lo be followed ln Lhe procedure LhaL musL be observed 1here ls
Lo repeaL a greaL publlc lnLeresL ln a deflnlLlve ouLcome of Lhe cruclal lssue
lnvolved Cne of Lhe mosL noLed auLhorlLles on AdmlnlsLraLlve Law professor
kenneLh Culp uavls dlscusslng Lhe rlpeness concepL ls of Lhe vlew LhaL Lhe
resoluLlon of whaL could be a deblllLaLlng uncerLalnLy wlLh Lhe conceded
ablllLy of Lhe [udlclary Lo work ouL a soluLlon of Lhe problem posed ls a
poLenL argumenL for mlnlmlzlng Lhe emphasls lald on lLs Lechnlcal aspecL
| A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

nILIINL CCMMUNICA1ICNS SA1LLLI1L CCkCkA1ICN peLlLloner
vs
ICSL LUIS A ALCUA2 as N1C Comm|ss|oner and NA1ICNAL
1LLLCCMMUNICA1ICNS CCMMISSICNrespondenLs
lacLs 1he peLlLlon before us seeks Lo annul and seL aslde an
Crder
1
lssued by respondenL Commlssloner !ose Luls Alcuaz of Lhe naLlonal
1elecommunlcaLlons Commlsslon (hereafLer n1C) daLed SepLember 2 1988
whlch dlrecLs Lhe provlslonal reducLlon of Lhe raLes whlch may be charged by
peLlLloner for cerLaln speclfled llnes of lLs servlces by flfLeen percenL (13)
wlLh Lhe reservaLlon Lo make furLher reducLlons laLer for belng vlolaLlve of
Lhe consLlLuLlonal prohlblLlon agalnsL undue delegaLlon of leglslaLlve power
and a denlal of procedural as well as subsLanLlve due process of law
1he anLecedenLal facLs as summarlzed by peLlLloner

are noL ln
dlspuLe 8y vlrLue of 8epubllc AcL no 3314 PlLCCMSA1 was granLed a
franchlse Lo esLabllsh consLrucL malnLaln and operaLe ln Lhe hlllpplnes aL
such places as Lhe granLee may selecL sLaLlon or sLaLlons and assoclaLed
equlpmenL and faclllLles for lnLernaLlonal saLelllLe communlcaLlons under
Lhls franchlse lL was llkewlse granLed Lhe auLhorlLy Lo consLrucL and operaLe
such ground faclllLles as needed Lo dellver LelecommunlcaLlons servlces from
Lhe communlcaLlons saLelllLe sysLem and ground Lermlnal or Lermlnals8y
deslgnaLlon of Lhe 8epubllc of Lhe hlllpplnes Lhe peLlLloner ls also Lhe sole
slgnaLory for Lhe hlllpplnes ln Lhe AgreemenL and Lhe CperaLlng AgreemenL
relaLlng Lo Lhe lnLernaLlonal 1elecommunlcaLlons SaLelllLe CrganlzaLlon
(ln1LLSA1) of 113 member naLlons as well as ln Lhe ConvenLlon and Lhe
CperaLlng AgreemenL of Lhe lnLernaLlonal MarlLlme SaLelllLe CrganlzaLlon
(lnMA8SA1) of 33 member naLlons whlch Lwo global commerclal
LelecommunlcaLlons saLelllLe corporaLlons were collecLlvely esLabllshed by
varlous sLaLes ln llne wlLh Lhe prlnclples seL forLh ln 8esoluLlon 1721 (xvl) of
Lhe Ceneral Assembly of Lhe unlLed naLlons
Slnce 1968 Lhe peLlLloner has been leaslng lLs saLelllLe clrculLs Lo
1 hlllpplne Long ulsLance 1elephone Company
2 hlllpplne Clobal CommunlcaLlons lnc
3 LasLern 1elecommunlcaLlons hlls lnc
4 Clobe Mackay Cable and 8adlo Corp l11 and
3 CaplLol Wlreless lnc

or Lhelr predecessorslnlnLeresL 1he saLelllLe servlces Lhus
provlded by peLlLloner enable sald lnLernaLlonal carrlers Lo serve Lhe publlc
wlLh lndlspensable communlcaLlon servlces such as overseas Lelephone
Lelex facslmlle Lelegrams hlgh speed daLa llve Lelevlslon ln full color and
Lelevlslon sLandard converslon from Luropean Lo Amerlcan or vlce versa
under SecLlon 3 of 8epubllc AcL no 3314 peLlLloner was exempL
from Lhe [urlsdlcLlon of Lhe Lhen ubllc Servlce Commlsslon now respondenL
n1C Powever pursuanL Lo LxecuLlve Crder no 196 lssued on !une 17 1987
peLlLloner was placed under Lhe [urlsdlcLlon conLrol and regulaLlon of
respondenL n1C lncludlng all lLs faclllLles and servlces and Lhe flxlng of raLes
lmplemenLlng sald LxecuLlve Crder no 196 respondenLs requlred peLlLloner
Lo apply for Lhe requlslLe cerLlflcaLe of publlc convenlence and necesslLy
coverlng lLs faclllLles and Lhe servlces lL renders as well as Lhe correspondlng
auLhorlLy Lo charge raLes Lherefor
ConsequenLly under daLe of SepLember 9 1987 peLlLloner flled
wlLh respondenL n1C an appllcaLlon

for auLhorlLy Lo conLlnue operaLlng and

malnLalnlng Lhe same faclllLles lL has been conLlnuously operaLlng and
malnLalnlng slnce 1967 Lo conLlnue provldlng Lhe lnLernaLlonal saLelllLe
communlcaLlons servlces lL has llkewlse been provldlng slnce 1967 and Lo
charge Lhe currenL raLes applled for ln renderlng such servlces endlng
hearlng lL also applled for a provlslonal auLhorlLy so LhaL lL can conLlnue Lo
operaLe and malnLaln Lhe above menLloned faclllLles provlde Lhe servlces
and charge Lherefor Lhe aforesald raLes Lhereln applled for
Cn SepLember 16 1987 peLlLloner was granLed a provlslonal
auLhorlLy Lo conLlnue operaLlng lLs exlsLlng faclllLles Lo render Lhe servlces lL
was Lhen offerlng and Lo charge Lhe raLes lL was Lhen charglng 1hls
auLhorlLy was valld for slx (6) monLhs from Lhe daLe of sald order
S
When
sald provlslonal auLhorlLy explred on March 17 1988 lL was exLended for
anoLher slx (6) monLhs or up Lo SepLember 16 1988
1he n1C order now ln conLroversy had furLher exLended Lhe
provlslonal auLhorlLy of Lhe peLlLloner for anoLher slx (6) monLhs counLed
from SepLember 16 1988 buL lL dlrecLed Lhe peLlLloner Lo charge modlfled
reduced raLes Lhrough a reducLlon of flfLeen percenL (13) on Lhe presenL
auLhorlzed raLesPlLCCMSA1 assalls Lhe abovequoLed order for Lhe
followlng reasons
1 1he enabllng acL (LxecuLlve Crder no 346) of respondenL n1C
empowerlng lL Lo flx raLes for publlc servlce communlcaLlons does noL
provlde Lhe necessary sLandards consLlLuLlonally requlred hence Lhere ls an
undue delegaLlon of leglslaLlve power parLlcularly Lhe ad[udlcaLory powers
of n1C
2 Assumlng arguendo LhaL Lhe raLeflxlng power was properly and
consLlLuLlonally conferred Lhe same was exerclsed ln an unconsLlLuLlonal
manner hence lL ls ulLra vlres ln LhaL (a) Lhe quesLloned order vlolaLes
procedural due process for havlng been lssued wlLhouL prlor noLlce and
hearlng and (b) Lhe raLe reducLlon lL lmposes ls un[usL unreasonable and
conflscaLory Lhus consLlLuLlve of a vlolaLlon of subsLanLlve due process
l eLlLloner asseveraLes LhaL nowhere ln Lhe provlslons of
LxecuLlve Crder no 346 provldlng for Lhe creaLlon of respondenL n1C and
granLlng lLs raLeflxlng powers nor of LxecuLlve Crder no 196 placlng
peLlLloner under Lhe [urlsdlcLlon of respondenL n1C can lL be lnferred LhaL
respondenL n1C ls gulded by any sLandard ln Lhe exerclse of lLs raLeflxlng
and ad[udlcaLory powers Whlle peLlLlonerln lLs peLlLlonlnchlef ralsed Lhe
lssue of undue delegaLlon of leglslaLlve power lL subsequenLly clarlfled lLs
sald submlsslon Lo mean LhaL Lhe order mandaLlng a reducLlon of cerLaln
raLes ls undue delegaLlon noL of leglslaLlve buL of quasl[udlclal power Lo
respondenL n1C Lhe exerclse of whlch allegedly requlres an express
confermenL by Lhe leglslaLlve body
lssue quesLlonlng Lhe consLlLuLlonallLy of LxecuLlve Crders nos
346 and 196 on Lhe ground LhaL Lhe same do noL flx a sLandard for Lhe
exerclse of Lhe power Lhereln conferred
Peld lundamenLal ls Lhe rule LhaL delegaLlon of leglslaLlve power
may be susLalned only upon Lhe ground LhaL some sLandard for lLs exerclse ls
provlded and LhaL Lhe leglslaLure ln maklng Lhe delegaLlon has prescrlbed Lhe
manner of Lhe exerclse of Lhe delegaLed power 1herefore when Lhe
admlnlsLraLlve agency concerned respondenL n1C ln Lhls case esLabllshes a
raLe lLs acL musL boLh be non conflscaLory and musL have been esLabllshed
ln Lhe manner prescrlbed by Lhe leglslaLure oLherwlse ln Lhe absence of a
flxed sLandard Lhe delegaLlon of power becomes unconsLlLuLlonal ln case of
a delegaLlon of raLeflxlng power Lhe only sLandard whlch Lhe leglslaLure ls
requlred Lo prescrlbe for Lhe guldance of Lhe admlnlsLraLlve auLhorlLy ls LhaL
Lhe raLe be reasonable and [usL Powever lL has been held LhaL even ln Lhe
absence of an express requlremenL as Lo reasonableness Lhls sLandard may
be lmplled
ursuanL Lo LxecuLlve Crders nos 346 and 196 respondenL n1C
ls empowered among oLhers Lo deLermlne and prescrlbe raLes perLlnenL Lo
Lhe operaLlon of publlc servlce communlcaLlons whlch necessarlly lnclude Lhe
power Lo promulgaLe rules and regulaLlons ln connecLlon LherewlLh And
under SecLlon 13(g) of LxecuLlve Crder no 346 respondenL n1C should be
gulded by Lhe requlremenLs of publlc safeLy publlc lnLeresL and reasonable
feaslblllLy of malnLalnlng effecLlve compeLlLlon of prlvaLe enLlLles ln
communlcaLlons and broadcasLlng faclllLles Llkewlse ln SecLlon 6(d) Lhereof
whlch provldes for Lhe creaLlon of Lhe MlnlsLry of 1ransporLaLlon and
CommunlcaLlons wlLh conLrol and supervlslon over respondenL n1C lL ls
speclflcally provlded LhaL Lhe naLlonal economlc vlablllLy of Lhe enLlre
neLwork or componenLs of Lhe communlcaLlons sysLems conLemplaLed
Lhereln should be malnLalned aL reasonable raLes We need noL go lnLo an ln
depLh analysls of Lhe perLlnenL provlslons of Lhe law ln order Lo conclude
LhaL respondenL n1C ln Lhe exerclse of lLs raLeflxlng power ls llmlLed by Lhe
requlremenLs of publlc safeLy publlc lnLeresL reasonable feaslblllLy and
3 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

reasonable raLes whlch con[olnLly more Lhan saLlsfy Lhe requlremenLs of a
valld delegaLlon of leglslaLlve power
ll Cn anoLher Lack peLlLloner submlLs LhaL Lhe quesLloned order
vlolaLes procedural due process because lL was lssued moLu proprlo wlLhouL
noLlce Lo peLlLloner and wlLhouL Lhe beneflL of ahearlng eLlLloner lamenLs
LhaL sald order was based merely on an lnlLlal evaluaLlon whlch ls a
unllaLeral evaluaLlon buL had peLlLloner been glven an opporLunlLy Lo
presenL lLs slde before Lhe order ln quesLlon was lssued Lhe conflscaLory
naLure of Lhe raLe reducLlon and Lhe consequenL deLerloraLlon of Lhe publlc
servlce could have been shown and demonsLraLed Lo respondenLs eLlLloner
argues LhaL Lhe funcLlon lnvolved ln Lhe raLe flxlngpower of n1C ls
ad[udlcaLory and hence quasl[udlclal noL quasl leglslaLlve Lhus noLlce and
hearlng are necessary and Lhe absence Lhereof resulLs ln a vlolaLlon of due
process
8espondenLs admlL LhaL Lhe appllcaLlon of a pollcy llke Lhe flxlng
of raLes as exerclsed by admlnlsLraLlve bodles ls quasl[udlclal raLher Lhan
quaslleglslaLlve LhaL where Lhe funcLlon of Lhe admlnlsLraLlve agency ls
leglslaLlve noLlce and hearlng are noL requlred buL where an order applles
Lo a named person as ln Lhe lnsLanL case Lhe funcLlon lnvolved ls
ad[udlcaLory
8
noneLheless Lhey lnslsL LhaL under Lhe facLs obLalnlng Lhe
order ln quesLlon need noL be preceded by a hearlng noL because lL was
lssued pursuanL Lo respondenL n1Cs leglslaLlve funcLlon buL because Lhe
assalled order ls merely lnLerlocuLory lL belng an lncldenL ln Lhe ongolng
proceedlngs on peLlLloners appllcaLlon for a cerLlflcaLe of publlc
convenlence and LhaL peLlLloner ls noL Lhe only prlmary source of daLa or
lnformaLlon slnce respondenL ls currenLly engaged ln a conLlnulng revlew of
Lhe raLes charged
We flnd merlL ln peLlLloners conLenLlon
ln vlqoo lecttlc llqbt co loc vs lobllc etvlce commlssloo
9
we
made a caLegorlcal classlflcaLlon as Lo when Lhe raLeflllng power of
admlnlsLraLlve bodles ls quasl[udlclal and when lL ls leglslaLlve Lhus
Moreover alLhough Lhe rulemaklng power and even Lhe power
Lo flx raLes when such rules and/or raLes are meanL Lo apply Lo all
enLerprlses of a glven klnd LhroughouL Lhe hlllpplnesmay parLake of a
leglslaLlve characLer such ls noL Lhe naLure of Lhe order complalned of
lndeed Lhe same applles excluslvely Lo peLlLloner hereln WhaL ls more lL ls
predlcaLed upon Lhe flndlng of facLbased upon a reporL submlLLed by Lhe
Ceneral AudlLlng CfflceLhaL peLlLloner ls maklng a proflL of more Lhan 12
of lLs lnvesLed caplLal whlch ls denled by peLlLloner Cbvlously Lhe laLLer ls
enLlLled Lo crossexamlne Lhe maker of sald reporL and Lo lnLroduce
evldence Lo dlsprove Lhe conLenLs Lhereof and/or explaln or complemenL Lhe
same as well as Lo refuLe Lhe concluslon drawn Lherefrom by Lhe
respondenL ln oLher words ln maklng sald flndlng of facL respondenL
performed a funcLlon parLaklng of a quasl[udlclal characLer Lhe valld
exerclse of whlch demands prevlous noLlce and hearlng
1hls rule was furLher explalned ln Lhe subsequenL case of @be
ceottol 8ook of tbe lblllpploes vs clotlbel et ol
1
Lo wlL
lL ls also clear from Lhe auLhorlLles LhaL where Lhe funcLlon of Lhe
admlnlsLraLlve body ls leglslaLlve noLlce of hearlng ls noL requlred by due
process of law (See Cppenhelmer AdmlnlsLraLlve Law 2 Md L8 183 204
supra where lL ls sald lf Lhe naLure of Lhe admlnlsLraLlve agency ls
essenLlally leglslaLlve Lhe requlremenLs of noLlce and hearlng are noL
necessary 1he valldlLy of a rule of fuLure acLlon whlch affecLs a group lf
vesLed rlghLs of llberLy or properLy are noL lnvolved ls noL deLermlned
accordlng Lo Lhe same rules whlch apply ln Lhe case of Lhe dlrecL appllcaLlon
of a pollcy Lo a speclflc lndlvldual) lL ls sald ln 73 C!S ubllc
AdmlnlsLraLlve 8odles and rocedure sec 130 pages 432 and 433 Aslde
from sLaLuLe Lhe necesslLy of noLlce and hearlng ln an admlnlsLraLlve
proceedlng depends on Lhe characLer of Lhe proceedlng and Lhe
clrcumsLances lnvolved ln so far as generallzaLlon ls posslble ln vlew of Lhe
greaL varleLy of admlnlsLraLlve proceedlngs lL may be sLaLed as a general rule
LhaL noLlce and hearlng are noL essenLlal Lo Lhe valldlLy of admlnlsLraLlve
acLlon where Lhe admlnlsLraLlve body acLs ln Lhe exerclse of execuLlve
admlnlsLraLlve or leglslaLlve funcLlons buL where a publlc admlnlsLraLlve
body acLs ln a [udlclal or quasl[udlclal maLLer and lLs acLs are parLlcular and
lmmedlaLe raLher Lhan general and prospecLlve Lhe person whose rlghLs or
properLy may be affecLed by Lhe acLlon ls enLlLled Lo noLlce and hearlng
11

1he order ln quesLlon whlch was lssued by respondenL Alcuaz no
doubL conLalns all Lhe aLLrlbuLes of a quasl[udlclal ad[udlcaLlon loremosL ls
Lhe facL LhaL sald order perLalns excluslvely Lo peLlLloner and Lo no oLher
lurLher lL ls premlsed on a flndlng of facL alLhough paLenLly superflclal LhaL
Lhere ls merlL ln a reducLlon of some of Lhe raLes charged based on an lnlLlal
evaluaLlon of peLlLloners flnanclal sLaLemenLswlLhouL affordlng peLlLloner
Lhe beneflL of an explanaLlon as Lo whaL parLlcular aspecL or aspecLs of Lhe
flnanclal sLaLemenLs warranLed a correspondlng raLe reducLlon no
raLlonallzaLlon was offered nor were Lhe aLLendlng conLlngencles lf any
dlscussed whlch prompLed respondenLs Lo lmpose as much as a flfLeen
percenL (13) raLe reducLlon lL ls noL farfeLched Lo assume LhaL peLlLloner
could be ln a beLLer poslLlon Lo raLlonallze lLs raLes vlsavls Lhe vlablllLy of lLs
buslness requlremenLs 1he raLes lL charges resulL from an exhausLlve and
deLalled sLudy lL conducLs of Lhe mulLlfaceLed lnLrlcacles aLLendanL Lo a
publlc servlce underLaklng of such naLure and magnlLude We are Lherefore
lncllned Lo lend greaLer credence Lo peLlLloners raLloclnaLlon LhaL an
lmmedlaLe reducLlon ln lLs raLes would adversely affecL lLs operaLlons and
Lhe quallLy of lLs servlce Lo Lhe publlc conslderlng Lhe malnLenance
requlremenLs Lhe pro[ecLs lL sLlll has Lo underLake and Lhe flnanclal ouLlay
lnvolved noLably peLlLloner was noL even afforded Lhe opporLunlLy Lo cross
examlne Lhe lnspecLor who lssued Lhe reporL on whlch respondenL n1C
based lLs quesLloned order
AL any raLe Lhere remalns Lhe caLegorlcal admlsslon made by
respondenL n1C LhaL Lhe quesLloned order was lssued pursuanL Lo lLs quasl
[udlclal funcLlons lL however lnslsLs LhaL noLlce and hearlng are noL
necessary slnce Lhe assalled order ls merely lncldenLal Lo Lhe enLlre
proceedlngs and Lherefore Lemporary ln naLure 1hls posLulaLe ls berefL of
merlL
Whlle respondenLs may flx a Lemporary raLe pendlng flnal
deLermlnaLlon of Lhe appllcaLlon of peLlLloner such raLeflxlng order
Lemporary Lhough lL may be ls noL exempL from Lhe sLaLuLory procedural
requlremenLs of noLlce and hearlng as well as Lhe requlremenL of
reasonableness Assumlng LhaL such power ls vesLed ln n1C lL may noL
exerclse Lhe same ln an arblLrary and conflscaLory manner CaLegorlzlng such
an order as Lemporary ln naLure does noL perforce enLall Lhe appllcablllLy of a
dlfferenL rule of sLaLuLory procedure Lhan would oLherwlse be applled Lo any
oLher order on Lhe same maLLer unless oLherwlse provlded by Lhe appllcable
law ln Lhe case aL bar Lhe appllcable sLaLuLory provlslon ls SecLlon 16(c) of
Lhe ubllc Servlce AcL whlch provldes
SecLlon 16 roceedlngs of Lhe Commlsslon upon noLlce and
hearlng Lhe Commlsslon shall have power upon proper noLlce and hearlng ln
accordance wlLh Lhe rules and provlslons of Lhls AcL sub[ecL Lo Lhe
llmlLaLlons and excepLlons menLloned and savlng provlslons Lo Lhe conLrary
xxx xxx xxx
(c) 1o flx and deLermlne lndlvldual or [olnL raLes whlch shall be
lmposed observed and followed LhereafLer by any publlc servlce
1here ls no reason Lo assume LhaL Lhe aforesald provlslon does
noL apply Lo respondenL n1C Lhere belng no llmlLlng excepLlng or savlng
provlslons Lo Lhe conLrary ln LxecuLlve Crders nos 346 and 196
lL ls Lhus clear LhaL wlLh regard Lo raLeflxlng respondenL has no
auLhorlLy Lo make such order wlLhouL flrsL glvlng peLlLloner a hearlng
wheLher Lhe order be Lemporary or permanenL and lL ls lmmaLerlal wheLher
Lhe same ls made upon a complalnL a summary lnvesLlgaLlon or upon Lhe
commlsslons own moLlon as ln Lhe presenL case 1haL such a hearlng ls
requlred ls evldenL ln respondenLs order of SepLember 16 1987 ln n1C Case
no 8794 whlch granLed PlLCCMSA1 a provlslonal auLhorlLy Lo conLlnue
operaLlng lLs exlsLlng faclllLles Lo render Lhe servlces lL presenLly offers and
Lo charge Lhe raLes as reduced by Lhem under Lhe condlLlon LhaL (s)ub[ecL
| A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

Lo hearlng and Lhe flnal conslderaLlon of Lhe merlL of Lhls appllcaLlon Lhe
Commlsslon may modlfy revlse or amend Lhe raLes
1

Whlle lL may be Lrue LhaL for purposes of raLeflxlng respondenLs
may have oLher sources of lnformaLlon or daLa sLlll slnce a hearlng ls
essenLlal respondenL n1C should acL solely on Lhe basls of Lhe evldence
before lL and noL on knowledge or lnformaLlon oLherwlse acqulred by lL buL
whlch ls noL offered ln evldence or even lf so adduced peLlLloner was glven
no opporLunlLy Lo conLroverL
Agaln Lhe order requlres Lhe new reduced raLes Lo be made
effecLlve on a speclfled daLe lL becomes a flnal leglslaLlve acL as Lo Lhe perlod
durlng whlch lL has Lo remaln ln force pendlng Lhe flnal deLermlnaLlon of Lhe
case
13
An order of respondenL n1C prescrlblng reduced raLes even for a
Lemporary perlod could be un[usLunreasonable or even conflscaLory
especlally lf Lhe raLes are unreasonably low slnce Lhe uLlllLy permanenLly
loses lLs [usL revenue durlng Lhe prescrlbed perlod ln facL such order ls ln
effecL flnal lnsofar as Lhe revenue durlng Lhe perlod covered by Lhe order ls
concerned upon a showlng Lherefore LhaL Lhe order requlrlng a reduced
raLe ls conflscaLory and wlll unduly deprlve peLlLloner of a reasonable reLurn
upon lLs properLy a declaraLlon of lLs nulllLy becomes lnducLlble whlch
brlngs us Lo Lhe lssue on subsLanLlve due process
lll eLlLloner conLends LhaL Lhe raLe reducLlon ls conflscaLory ln
LhaL lLs lmplemenLaLlon would vlrLually resulL ln a cessaLlon of lLs operaLlons
and evenLual closure of buslness Cn Lhe oLher hand respondenLs asserL LhaL
slnce peLlLloner ls operaLlng lLs communlcaLlons saLelllLe faclllLles Lhrough a
leglslaLlve franchlse as such granLee lL has no vesLed rlghL Lhereln WhaL lL
has ls merely a prlvllege or llcense whlch may be revoked aL wlll by Lhe SLaLe
aL any Llme wlLhouL necessarlly vlolaLlng any vesLed properLy rlghL of hereln
peLlLloner Whlle peLlLloner concedes Lhls Lhesls of respondenL lL counLers
LhaL Lhe wlLhdrawal of such prlvllege should neverLheless be nelLher
whlmslcal nor arblLrary buL lL musL be falr and reasonable
1here ls no quesLlon LhaL peLlLloner ls a mere granLee of a
leglslaLlve franchlse whlch ls sub[ecL Lo amendmenL alLeraLlon or repeal by
Congress when Lhe common good so requlres
1
ApparenLly Lherefore such
granL cannoL be unllaLerally revoked absenL a showlng LhaL Lhe LermlnaLlon
of Lhe operaLlon of sald uLlllLy ls requlred by Lhe common good
1he rule ls LhaL Lhe power of Lhe SLaLe Lo regulaLe Lhe conducL
and buslness of publlc uLlllLles ls llmlLed by Lhe conslderaLlon LhaL lL ls noL Lhe
owner of Lhe properLy of Lhe uLlllLy or cloLhed wlLh Lhe general power of
managemenL lncldenL Lo ownershlp slnce Lhe prlvaLe rlghL of ownershlp Lo
such properLy remalns and ls noL Lo be desLroyed by Lhe regulaLory power
1he power Lo regulaLe ls noL Lhe power Lo desLroy useful and harmless
enLerprlses buL ls Lhe power Lo proLecL fosLer promoLe preserve and
conLrol wlLh due regard for Lhe lnLeresL flrsL and foremosL of Lhe publlc
Lhen of Lhe uLlllLy and of lLs paLrons Any regulaLlon Lherefore whlch
operaLes as an effecLlve conflscaLlon of prlvaLe properLy or consLlLuLes an
arblLrary or unreasonable lnfrlngemenL of properLy rlghLs ls vold because lL
ls repugnanL Lo Lhe consLlLuLlonal guaranLles of due process and equal
proLecLlon of Lhe laws
1S

Pence Lhe lnherenL power and auLhorlLy of Lhe SLaLe or lLs
auLhorlzed agenL Lo regulaLe Lhe raLes charged by publlc uLlllLles should be
sub[ecL always Lo Lhe requlremenL LhaL Lhe raLes so flxed shall be reasonable
and [usL A commlsslon has no power Lo flx raLes whlch are unreasonable or
Lo regulaLe Lhem arblLrarlly 1hls baslc requlremenL of reasonableness
comprehends such raLes whlch musL noL be so low as Lo be conflscaLory or
Loo hlgh as Lo be oppresslve
1

WhaL ls a [usL and reasonable raLe ls noL a quesLlon of formula buL
of sound buslness [udgmenL based upon Lhe evldence
17
lL ls a quesLlon of
facL calllng for Lhe exerclse of dlscreLlon good sense and a falr enllghLened
and lndependenL [udgmenL
18
ln deLermlnlng wheLher a raLe ls conflscaLory
lL ls essenLlal also Lo conslder Lheglven slLuaLlon requlremenLs and
opporLunlLles of Lhe uLlllLy A meLhod ofLen employed ln deLermlnlng
reasonableness ls Lhe falr reLurn upon Lhe value of Lhe properLy Lo Lhe publlc
uLlllLy CompeLlLlon ls also a very lmporLanL facLor ln deLermlnlng Lhe
reasonableness of raLes slnce a carrler ls allowed Lo make such raLes as are
necessary Lo meeL compeLlLlon
19

A cursory perusal of Lhe assalled order reveals LhaL Lhe raLe
reducLlon ls solely and prlmarlly based on Lhe lnlLlal evaluaLlon made on Lhe
flnanclal sLaLemenLs of peLlLloner conLrary Lo respondenL n1Cs allegaLlon
LhaL lL has several oLher sources of lnformaLlon wlLhouL however dlvulglng
such sources lurLhermore lL dld noL as much as make an aLLempL Lo
elaboraLe on how lL arrlved aL Lhe prescrlbed raLes lL [usL perfuncLorlly
declared LhaL based on Lhe flnanclal sLaLemenLs Lhere ls merlL for a raLe
reducLlon wlLhouL any elucldaLlon on whaL lmpllcaLlons and concluslons were
necessarlly lnferred by lL from sald sLaLemenLs nor dld lL delgn Lo explaln
how Lhe daLa reflecLed ln Lhe flnanclal sLaLemenLs lnfluenced lLs declslon Lo
lmpose a raLe reducLlon
Cn Lhe oLher hand peLlLloner may llkely suffer a severe drawback
wlLh Lhe consequenL deLrlmenL Lo Lhe publlc servlce should Lhe order of
respondenL n1C Lurn ouL Lo be unreasonable and lmprovldenL 1he buslness
ln whlch peLlLloner ls engaged ls unlque ln LhaL lLs machlnery and equlpmenL
have always Lo be Laken ln relaLlon Lo Lhe equlpmenL on Lhe oLher end of Lhe
Lransmlsslon arrangemenL Any lack aglng acqulslLlon rehablllLaLlon or
refurblshmenL of machlnery and equlpmenL necessarlly enLalls a ma[or
ad[usLmenL or lnnovaLlon on Lhe buslness of peLlLloner As polnLed ouL by
peLlLloner any change ln Lhe sendlng end abroad has Lo be maLched wlLh Lhe
correspondlng change ln Lhe recelvlng end ln Lhe hlllpplnes Conversely any
ln Lhe recelvlng end abroad has Lo be maLched wlLh Lhe correspondlng
change ln Lhe sendlng end ln Lhe hlllpplnes An lnablllLy on Lhe parL of
peLlLloner Lo meeL Lhe varlegaLlons demanded be Lechnology could resulL ln
a deLerloraLlon or LoLal fallure of Lhe servlce of saLelllLe communlcaLlons
AL presenL peLlLloner ls engaged ln several pro[ecLs almed aL
refurblshlng rehablllLaLlng and renewlng lLs machlnery and equlpmenL ln
order Lo keep up wlLh Lhe conLlnulng charges of Lhe Llmes and Lo malnLaln lLs
faclllLles aL a compeLlLlve level wlLh Lhe Lechnologlcal advances abroad
1here pro[ecLed underLaklngs were formulaLed on Lhe premlse LhaL raLes are
malnLalned aL Lhelr presenL or aL reasonable levels Pence an undue
reducLlon Lhereof may pracLlcally lead Lo a cessaLlon of lLs buslness Whlle
we concede Lhe prlmacy of Lhe publlc lnLeresL ln an adequaLe and efflclenL
servlce Lhe same ls noL necessarlly Lo be equaLed wlLh reduced raLes
8easonableness ln Lhe raLes assumes LhaL Lhe same ls falr Lo boLh Lhe publlc
uLlllLy and Lhe consumer
ConsequenLly we hold LhaL Lhe challenged order parLlcularly on
Lhe lssue of raLes provlded Lhereln belng vlolaLlve of Lhe due process clause
ls vold and should be nulllfled 8espondenLs should now proceed as Lhey
should hereLofore have done wlLh Lhe hearlng and deLermlnaLlon of
peLlLloners pendlng appllcaLlon for a cerLlflcaLe of publlc convenlence and
necesslLy and ln whlch proceedlng Lhe sub[ecL of raLes lnvolved ln Lhe
presenL conLroversy as well as oLher maLLer lnvolved ln sald appllcaLlon be
duly ad[udlcaLed wlLhreasonable dlspaLch and wlLh due observance of our
pronouncemenLs hereln
Centra| 8ank v C|or|be|
lacLs 8espondenL 8anco llllplno ls a savlngs and morLgage bank
duly organlzed and exlsLlng under Lhe laws of Lhe hlllpplnes eLlLloner
lssued pursuanL Lo 8esoluLlon no 1769 of Lhe MoneLary 8oard daLed
uecember 11 1964 CenLral 8ank Clrcular no 183 modlfled by Clrcular no
222 lssued on !une 14 1966 ln pursuance of 8esoluLlon no 803 of Lhe
MoneLary 8oard daLed May 20 1966 as follows 1he maxlmum raLe of
lnLeresL on savlngs deposlLs of Lhese banks shall be flve and Lhree fourLhs per
cenL (33/4) per annum compounded quarLerlyxxx 4 no bank or banklng
lnsLlLuLlon shall dlssemlnaLe adverLlse or release any lnformaLlon LhaL lL ls
paylng or wlll pay lnLeresL aL raLes hlgher Lhan Lhose prescrlbed hereln or
lndlcaLe Lhe effecLlve raLes resulLlng from a compoundlng of Lhe raLes
SubsequenLly however wlLhln Lhe same year 8anco llllplno changed lLs
pollcy by compoundlng and paylng Lhe lnLeresL on lLs savlngs deposlLs aL Lhe
maxlmum raLe flxed by Lhe MoneLary 8oard from Lhe poottetly Lo
Lhemootbly basls and by paylng ln oJvooce Lhe maxlmum raLes of lnLeresL
on Llme deposlLs Lhe MoneLary 8oard approved 8esoluLlon no 1366
S | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

dlrecLlng Lhe 8anco llllplno Lo comply sLrlcLly wlLh CenLral 8ank Clrcular no
222 Sald 8esoluLlon was communlcaLed Lo Lhe 8anco llllplno ln a leLLer
daLed SepLember 29 1966 Soon laLer or on CcLober 14 1966 8anco
llllplno flled wlLh Lhe CourL of llrsL lnsLance of Manlla a peLlLlon for
prohlblLlon and prellmlnary ln[uncLlon agalnsL eLlLloner hereln and Lhe
MoneLary 8oard Lo annul CenLral 8ank Clrculars nos 183 and 222 and
MoneLary 8oard 8esoluLlons nos 803 and 1366 lnsofar as Lhey resLrlcL Lhe
paymenL of monLhly lnLeresLs on savlngs deposlLs and advance lnLeresLs on
Llme deposlLs Pon Caudenclo Clorlbel as !udge of sald courL lssued ex
potte Lhe resLralnlng order prayed for and seL Lhe appllcaLlon for a wrlL of
prellmlnary ln[uncLlon for hearlng on CcLober 29 1966 Cn CcLober 26 Lhe
respondenLs ln sald case flled Lhelr answer and Lhe nexL day moved Lo
dlssolve Lhe resLralnlng order of CcLober 13 AfLer Lhe aforemenLloned
hearlng and Lhe submlsslon by Lhe parLles of Lhelr respecLlve memoranda
!udge Clorlbel granLed sald appllcaLlon for a wrlL of prellmlnary
ln[uncLlon8anco llllplno conLesLed sald resoluLlon and clrculars are null and
vold for (a) Lhey were lssued wlLhouL prevlous noLlce and hearlng (b) Lhey
lmpalr vesLed rlghLs
lssue 1 WCn CenLral bank lssued sald clrcular w/o due
process
2 WCn conLesLed resoluLlons and clrculars lmpalr
vesLed rlghLs
3 WCn Lhe auLhorlLy of Lhe MoneLary 8oard Lo flx Lhe maxlmum
raLes of lnLeresL whlch banks may pay on deposlLs and on any oLher
obllgaLlons lncludes Lhe power Lo deLermlne and flx Lhe moooet ln whlch
sald lnLeresLs may be compounded and pald

Peld 1 no AlLhough Lhe CenLral 8ank ls supposed Lo gaLher
relevanL daLa and make Lhe necessary sLudy buL has no legal obllgaLlon Lo
noLlfy and hear anybody before exerclslng lLs power Lo flx Lhe maxlmum
raLes of lnLeresL LhaL banks may pay on deposlLs or any oLher obllgaLlons
revlous noLlce and hearlng as elemenLs of due process are consLlLuLlonally
requlred for Lhe proLecLlon of llfe or vesLed properLy rlghLs as well as of
llberLy when lLs llmlLaLlon or loss Lakes place ln consequence of a [udlclal or
quasl[udlclal proceedlng generally dependenL upon a post acL or evenL
whlch has Lo be esLabllshed or ascerLalned lL ls oot essenLlal Lo Lhe valldlLy
of qeoetol rules or regulaLlons promulgaLed Lo govern fotote conducL of
a closs of persons or enLerprlses unless Lhe law provldes oLherwlse and
Lhere ls no sLaLuLory requlremenL Lo Lhls effecL lnsofar as Lhe flxlng of
maxlmum sLaLes of lnLeresL payable by banks ls concerned lf Lhe naLure of
Lhe admlnlsLraLlve agency ls esseotlolly leqlslotlve Lhe requlremenLs of
noLlce and hearlng are oot necessary 8anco llllplno does oot lmpugn elLher
Lhe leqollty or Lhe wlsJom of Lhe maxlmum raLes of lnLeresL flxed ln Lhe
conLesLed resoluLlons and clrculars lL merely assalls Lhe ootbotlty of Lhe
8oard Lo flx or regulaLe Lhe manner of compoundlng and paylng sald raLes
of lnLeresL whlch ls dlscussed ln subsequenL pages
2 no sald resoluLlons and clrculars
operaLe ptospectlvely and affecL ooly deposlLs made and/or lnLeresLs
accrulng sobsepoeotly Lo Lhe promulgaLlon Lhereof
3 ?es lL ls slgnlflcanL LhaL Lhe law does noL merely
auLhorlze Lhe 8oard Lo flx Lhe maxlmum raLes of lnLeresL whlch banks may
pay on deposlLs and on any oLher obllgaLlons lL also expressly empowers
Lhe 8oard (l)o otJet to ovolJ posslble evosloo of maxlmum lnLeresL raLes
seL by Lhe 8oard Lo flx also Lhe maxlmum raLes LhaL banks may pay Lo
or collecL from Lhelr cusLomers ln Lhe form of poymeots of ooy sott
lndeed Lhe auLhorlLy Lo esLabllsh maxlmum raLes of lnLeresL carrles wlLh
lL oecessotlly Lhe power Lo deLermlne Lhe maxlmum raLes payable as
lnLeresL fot qlveo petloJs of tlme ln oLher words lL connoLes Lhe rlghL
Lo speclfy tbe leoqtb of tlme for whlch Lhe raLes Lhus flxed shall be compuLed
ConsequenLly lL cannoL buL lnclude Lhe prerogaLlve Lo regulaLe (a)
Lhe moooetof compuLlng sald raLes and (b) Lhe manner or tlme of paymenL
of lnLeresL lnsofar as Lhese facLors affecL Lheomooot of lnLeresL Lo be pald ln
facL Lhe record shows LhaL slnce aL leasL May 23 1936 when CenLral 8ank
Clrcular no 67 (Annex P) was lssued Lhe MoneLary 8oard has conslsLenLly
regulaLed Lhe Llme or manner of paymenL of lnLeresL on bank deposlLs WhaL
ls more lL would seem LhaL Lhe valldlLy of such regulaLlon had never before
been conLesLed

Note Lhe ob[ecLlve of Lhe power Lo flx maxlmum raLes of
lnLeresL payable by banks ls Lo esLabllsh aoolfotm cellloq appllcable
Lo oll banks ln order Lo avold LhaL a compeLlLlon among Lhe same ln Lhe
form of hlgher raLes of lnLeresL offered Lo deposlLors may ensue and reach
such a polnL LhaL Lo offseL Lhe resulLlng reducLlon ln Lhelr proflLs sald
lnsLlLuLlons mlghL be lmpelled Lo lncrease Lhelr earnlngs by resorLlng Lo rlsky
venLures or less conservaLlve and more remuneraLlve loans and
lnvesLmenLs whlch could lmpalr Lhe sLablllLy of Lhe banklng sysLem and
[eopardlze Lhe flnanclal condlLlon of Lhe naLlon 1he lmporLanL Lhlng ls
Lhe omooot pald or Lo beJeposlteJ by Lhe laLLer and made avallable for Lhe
operaLlons of Lhe bank wlLhln Lhe perlod for whlch Lhe raLe has been flxed
1he moooet of compotloq such raLe and Lhe tlme ot moooet of poymeot of
lnLeresL are merely lncldenLal LhereLo Lhe maxlmum lnLeresL of 33/4 per
annum compounded poottetly as flxed ln eLlLloners Clrcular no 222 for
savlngs deposlLs ln facL represenLs 3873 aL Lhe end of Lhe year When
compoundedmootbly lL ls however equlvalenL Lo 3904 aL Lhe close of Lhe
year and accordlngly exceeds by 0029 Lhe maxlmum seL ln Lhe
aforemenLloned clrcular
negllglble as Lhls 0029 mlghL be lL does noL deLracL from Lhe
facL LhaL lL exceeJs Lhe maxlmum raLe flxed by Lhe MoneLary 8oard such
excess were sancLloned so should 003 be As a consequence banks could
avall of devlses whereby alLhough adherlng osLenslbly Lo Lhe maxlmum raLe
of 33/4 lnLeresL per annum Lhey would ln effecL pay lLs savlngs
deposlLors 0031 Lhen 0032 laLer 0033 eLc lo excess of sald
maxlmum ln oLher words we would Lhus opeo tbe Joot Lo Lhe cuLLhroaL
compeLlLlon and oLher evlls soughL Lo be avolded by Lhe maxlmum raLes of
lnLeresL flxed by Lhe MoneLary 8oard
1hen Loo Lhe beneflL LhaL a savlngs deposlL wlLh respondenL
8ank would derlve from Lhe monLhly compoundlng and paymenL of Lhe
maxlmum raLe of lnLeresL ls elLher subsLanLlal or noL lf lL ls noL Lhen Lhe
aforemenLloned adverLlsemenL of respondenL 8ank Lends Lo glve Lo Lhe
publlc a dlfferenL lmpresslon and ls accordlngly of dublous eLhlcal proprleLy
whereas lf Lhe beneflL were subsLanLlal Lhe vlolaLlon of Lhe leLLer ooJ
spltlt of Lhe conLesLed resoluLlons and clrculars would be manlfesL
Sec of Iust|ce v Lant|on
IactsueparLmenL of !usLlce recelved from Lhe ueparLmenL of
lorelgn Affalrs u S noLe verbale no 0322 conLalnlng a requesL for Lhe
exLradlLlon of prlvaLe respondenL Mark !lmenez Lo Lhe unlLed SLaLes
ALLached Lo Lhe noLe verbale were Lhe Crand !ury lndlcLmenL Lhe warranL of
arresL lssued by Lhe uS ulsLrlcL CourL SouLhern ulsLrlcL of llorlda and oLher
supporLlng documenLs for sald exLradlLlon 8ased on Lhe papers submlLLed
prlvaLe respondenL endlng evaluaLlon of Lhe aforesLaLed exLradlLlon
documenLs prlvaLe respondenL Lhrough counsel wroLe a leLLer daLed !uly 1
1999 addressed Lo peLlLloner requesLlng coples of Lhe offlclal exLradlLlon
requesL from Lhe u S CovernmenL as well as all documenLs and papers
submlLLed LherewlLh and LhaL he be glven ample Llme Lo commenL on Lhe
requesL afLer he shall have recelved coples of Lhe requesLed papers rlvaLe
respondenL also requesLed LhaL Lhe proceedlngs on Lhe maLLer be held ln
abeyance ln Lhe meanLlme 8espondenL denled Lhe requesL conLendlng LhaL
LvaluaLlon by Lhe aforemenLloned documenLs ls noL a prellmlnary
lnvesLlgaLlon nor akln Lo prellmlnary lnvesLlgaLlon of crlmlnal cases 1hey
merely deLermlne wheLher Lhe procedures and requlremenLs under Lhe
relevanL law and LreaLy have been complled wlLh by Lhe 8equesLlng
CovernmenL 1he consLlLuLlonally guaranLeed rlghLs of Lhe accused ln all
crlmlnal prosecuLlons are Lherefore noL avallable 1haL 1he formal requesL
for exLradlLlon of Lhe unlLed SLaLes conLalns grand [ury lnformaLlon and
documenLs obLalned Lhrough grand [ury process covered by sLrlcL secrecy
rules under unlLed SLaLes law 1he unlLed SLaLes had Lo secure orders from
Lhe concerned ulsLrlcL CourLs auLhorlzlng Lhe unlLed SLaLes Lo dlsclose
| A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

cerLaln grand [ury lnformaLlon Lo hlllpplne governmenL and law
enforcemenL personnel for Lhe purpose of exLradlLlon of Mr !lmenez Any
furLher dlsclosure of Lhe sald lnformaLlon ls noL auLhorlzed by Lhe unlLed
SLaLes ulsLrlcL CourLs prlvaLe respondenL flled wlLh Lhe 8eglonal 1rlal CourL
of Lhe naLlonal CaplLal !udlclal 8eglon a peLlLlon agalnsL Lhe SecreLary of
!usLlce Lhe SecreLary of lorelgn Affalrs and Lhe ulrecLor of Lhe naLlonal
8ureau of lnvesLlgaLlon for mooJomos
lssue wN uurlng Lhe evaluaLlon sLage of Lhe exLradlLlon
proceedlngs prlvaLe respondenL ls enLlLled Lo Lhe Lwo baslc due process
rlghLs of noLlce and hearlng
ne|d ?es 1he LxLradlLlon Law does noL speclflcally lndlcaLe
wheLher Lhe exLradlLlon proceedlng ls crlmlnal clvll or a speclal proceedlng
1he evaluaLlon process [usL llke Lhe exLradlLlon proceedlngs proper belongs
Lo a class by lLself lL ls sol qeoetls lL ls noL a crlmlnal lnvesLlgaLlon buL lL ls
also erroneous Lo say LhaL lL ls purely an exerclse of mlnlsLerlal funcLlons AL
such sLage Lhe execuLlve auLhorlLy has Lhe power (a) Lo make a Lechnlcal
assessmenL of Lhe compleLeness and sufflclency of Lhe exLradlLlon papers (b)
Lo ouLrlghLly deny Lhe requesL lf on lLs face and on Lhe face of Lhe supporLlng
documenLs Lhe crlmes lndlcaLed are noL exLradlLable and (c) Lo make a
deLermlnaLlon wheLher or noL Lhe requesL ls pollLlcally moLlvaLed or LhaL Lhe
offense ls a mlllLary one whlch ls noL punlshable under nonmlllLary penal
leglslaLlon lnqulslLorlal power whlch ls also known as examlnlng or
lnvesLlgaLory power ls one of Lhe deLermlnaLlve powers of an admlnlsLraLlve
body whlch beLLer enables lL Lo exerclse lLs quasl[udlclal auLhorlLy (ctoz hll
AdmlnlsLraLlve Law 1996 ed p 26) 1hls power allows Lhe admlnlsLraLlve
body Lo lnspecL Lhe records and premlses and lnvesLlgaLe Lhe acLlvlLles of
persons or enLlLles comlng under lLs [urlsdlcLlon (lblJ p 27) or Lo requlre
dlsclosure of lnformaLlon by means of accounLs records reporLs LesLlmony
of wlLnesses producLlon of documenLs or oLherwlse (ue leoo op clt p
64) lL does noL exerclse [udlclal funcLlons and lLs power ls llmlLed Lo
lnvesLlgaLlng Lhe facLs and maklng flndlngs ln respecL LhereLo 1he CourL lald
down Lhe LesL of deLermlnlng wheLher an admlnlsLraLlve body ls exerclslng
[udlclal funcLlons or merely lnvesLlgaLory funcLlons Ad[udlcaLlon slgnlfles Lhe
exerclse of power and auLhorlLy Lo ad[udlcaLe upon Lhe rlghLs and obllgaLlons
of Lhe parLles before lL Pence lf Lhe only purpose for lnvesLlgaLlon ls Lo
evaluaLe evldence submlLLed before lL based on Lhe facLs and clrcumsLances
presenLed Lo lL and lf Lhe agency ls noL auLhorlzed Lo make a flnal
pronouncemenL affecLlng Lhe parLles Lhen Lhere ls an absence of [udlclal
dlscreLlon and [udgmenL lL ls Lo be noLed however LhaL ln conLrasL Lo
ordlnary lnvesLlgaLlons Lhe evaluaLlon procedure ls characLerlzed by cerLaln
pecullarlLles rlmarlly lL seLs lnLo moLlon Lhe wheels of Lhe exLradlLlon
process ulLlmaLely lL may resulL ln Lhe deprlvaLlon of llberLy of Lhe
prospecLlve exLradlLee 1hls deprlvaLlon can be effecLed aL Lwo
sLages lltst Lhe provlslonal arresL of Lhe prospecLlve exLradlLee pendlng Lhe
submlsslon of Lhe requesL 1hls ls so because Lhe 1reaLy provldes LhaL ln case
of urgency a conLracLlng parLy may requesL Lhe provlslonal arresL of Lhe
person soughL pendlng presenLaLlon of Lhe requesL (aragraph 1 ArLlcle 9
8uS LxLradlLlon 1reaLy) buL he shall be auLomaLlcally dlscharged afLer 60
days lf no requesL ls submlLLed (aragraph 4) resldenLlal uecree no 1069
provldes for a shorLer perlod of 20 days afLer whlch Lhe arresLed person
could be dlscharged (SecLlon 20d) Loglcally alLhough Lhe LxLradlLlon Law ls
sllenL on Lhls respecL Lhe provlslons only mean LhaL once a requesL ls
forwarded Lo Lhe 8equesLed SLaLe Lhe prospecLlve exLradlLee may be
conLlnuously deLalned or lf noL subsequenLly rearresLed (aragraph 3
ArLlcle 9 8uS LxLradlLlon 1reaLy) for he wlll only be dlscharged lf no
requesL ls submlLLed racLlcally Lhe purpose of Lhls deLenLlon ls Lo prevenL
hls posslble fllghL from Lhe 8equesLed SLaLeecooJ Lhe Lemporary arresL of
Lhe prospecLlve exLradlLee durlng Lhe pendency of Lhe exLradlLlon peLlLlon ln
courL (SecLlon 6 resldenLlal uecree no 1069)
Clearly Lhere ls an lmpendlng LhreaL Lo a prospecLlve exLradlLees
llberLy as early as durlng Lhe evaluaLlon sLage lL ls noL only an lmaglned
LhreaL Lo hls llberLy buL a very lmmlnenL one
8ecause of Lhese posslble consequences we conclude LhaL Lhe
evaluaLlon process ls akln Lo an admlnlsLraLlve agency conducLlng an
lnvesLlgaLlve proceedlng Lhe consequences of whlch are essenLlally crlmlnal
slnce such Lechnlcal assessmenL seLs off or commences Lhe procedure for
and ulLlmaLely Lhe deprlvaLlon of llberLy of a prospecLlve exLradlLee As
descrlbed by peLlLloner hlmself Lhls ls a Lool for crlmlnal law enforcemenL
(p 78 8ollo) ln essence Lherefore Lhe evaluaLlon process parLakes of Lhe
naLure of a crlmlnal lnvesLlgaLlon ln a number of cases we had occaslon Lo
make avallable Lo a respondenL ln an admlnlsLraLlve case or lnvesLlgaLlon
cerLaln consLlLuLlonal rlghLs LhaL are ordlnarlly avallable only ln crlmlnal
prosecuLlons lurLher as polnLed ouL by Mr !usLlce Mendoza durlng Lhe oral
argumenLs Lhere are rlghLs formerly avallable only aL Lhe Lrlal sLage LhaL had
been advanced Lo an earller sLage ln Lhe proceedlngs such as Lhe rlghL Lo
counsel and Lhe rlghL agalnsL selflncrlmlnaLlon
Note ln Lhe case aL bar ls Lhere really a confllcL beLween
lnLernaLlonal law and munlclpal or naLlonal law? o coottotlo Lhese Lwo
componenLs of Lhe law of Lhe land are noL plLLed agalnsL each oLher 1here ls
no occaslon Lo choose whlch of Lhe Lwo should be upheld lnsLead we see a
vold ln Lhe provlslons of Lhe 8uS LxLradlLlon 1reaLy as lmplemenLed by
resldenLlal uecree no 1069 as regards Lhe baslc due process rlghLs of a
prospecLlve exLradlLee aL Lhe evaluaLlon sLage of exLradlLlon proceedlngs
lrom Lhe procedures earller absLracLed afLer Lhe flllng of Lhe exLradlLlon
peLlLlon and durlng Lhe [udlclal deLermlnaLlon of Lhe proprleLy of exLradlLlon
Lhe rlghLs of noLlce and hearlng are clearly granLed Lo Lhe prospecLlve
exLradlLee Powever prlor LhereLo Lhe law ls sllenL as Lo Lhese rlghLs
8eference Lo Lhe uS exLradlLlon procedures also manlfesLs Lhls
sllenceeLlLloner lnLerpreLs Lhls sllence as unavallablllLy of Lhese rlghLs
ConsequenLly he descrlbes Lhe evaluaLlon procedure as an ex
potte Lechnlcal assessmenL of Lhe sufflclency of Lhe exLradlLlon requesL and
Lhe supporLlng documenLsWe dlsagreeln Lhe absence of a law or prlnclple
of law we musL apply Lhe rules of falr play An appllcaLlon of Lhe baslc Lwln
due process rlghLs of noLlce and hearlng wlll noL go agalnsL Lhe LreaLy or Lhe
lmplemenLlng law nelLher Lhe 1reaLy nor Lhe LxLradlLlon Law precludes
Lhese rlghLs from a prospecLlve exLradlLee Slmllarly Amerlcan [urlsprudence
and procedures on exLradlLlon pose no proscrlpLlon ln facL ln lnLersLaLe
exLradlLlon proceedlngs as explalned above Lhe prospecLlve exLradlLee may
even requesL for coples of Lhe exLradlLlon documenLs from Lhe governor of
Lhe asylum sLaLe and lf he does hls rlghL Lo be supplled Lhe same becomes a
demandable rlghL
CM8 v 8ungbung
Iacts 1he Cmbudsman found respondenL Leopoldo l 8ungubung
(8ungubung) admlnlsLraLlvely llable for grave mlsconducL dlsmlsslng hlm
from Lhe servlce and lmposlng Lhe accessory penalLles of cancellaLlon of
ellglblllLy forfelLure of reLlremenL beneflLs and hls perpeLual dlsquallflcaLlon
from reemploymenL ln governmenL servlce 8ungubung ls Lhe Manager of
Lhe orL ulsLrlcL Cfflce (uC) of Manlla hlllpplne orLs AuLhorlLy
(A) SouLh Parbor orL Area Manlla Pe ls also Lhe Chalrman of Lhe orLs
ulsLrlcL SecurlLy 8lds and Awards CommlLLee (uS8AC) of Lhe A 8oberLo C
uoromal resldenL of CombaL SecurlLy LxecuLlve roLecLlon Agency
(CSLA) a securlLy agency LhaL parLlclpaLed ln Lhe blddlng for securlLy
servlces for Lhe A flled a ComplalnLAffldavlL agalnsL 8ungubung before
A 8esldenL Cmbudsman Manolo M Mablnl for allegedly sollclLlng and
recelvlng money from hlm and a MlLsublshl a[ero van from anoLher bldder
ln exchange for Lhe award of Lhe securlLy servlces conLracL of Lhe
A uoromal also accused 8ungubung and oLher A employees of
demandlng and recelvlng bolotoln conslderaLlon of Lhe award of Lhe A
SecurlLy Servlce ConLracL lrom Lhe foregolng Lhe followlng complalnLs were
flled agalnsL 8ungubung before Lhe Cmbudsman (1) an admlnlsLraLlve
complalnL for Crave MlsconducL and ConducL re[udlclal Lo Lhe 8esL lnLeresL
of Lhe Servlce and (2) a crlmlnal complalnL for vlolaLlon of SecLlon 3(b) of Lhe
AnLlCrafL and CorrupL racLlces AcL Cmbudsman Marcelo dlsapproved
CrafL lnvesLlgaLlon Cfflcer ll langon's 28 november 2002 ueclslon and
lssued anoLher Crder flndlng 8ungubung llable for grave mlsconducL (whlch
absorbed Lhe lesser offense of conducL pre[udlclal Lo Lhe besL lnLeresL of Lhe
servlce) and orderlng 8ungubung's dlsmlssal from servlce LogeLher wlLh Lhe
accessory penalLles of cancellaLlon of ellglblllLy forfelLure of reLlremenL
beneflLs and respondenL's perpeLual dlsquallflcaLlon from reemploymenL ln
governmenL servlce 8ungubung Lhen soughL recourse Lo Lhe CourL of
Appeals Appeals vlo a eLlLlon for 8evlew under 8ule 43 of Lhe 1997 8ules of
Clvll rocedure dockeLed as CAC8 S no 89689 Pe asserLed Lhereln LhaL
Lhe Cmbudsman erred ln (a) holdlng LhaL Lhere was subsLanLlal evldence Lo
7 | A d m l n l s L r a L l v e l a w r e v l e w e r A L L y C l m a n e s _

make hlm llable for grave mlsconducL resulLlng ln hls dlsmlssal from servlce
and lmposlLlon upon hlm of Lhe accessory penalLles endlng resoluLlon of
CAC8 S no 89689 by Lhe CourL of Appeals 8ungubung flled Lhereln a
MoLlon for lssuance of a 1emporary 8esLralnlng Crder (18C) and/or WrlL of
rellmlnary ln[uncLlon Lo en[oln Lhe Cmbudsman and Lhe A Ceneral
Manager from lmplemenLlng Lhe Crder daLed 11 !anuary 2003 whlch
dlsmlssed hlm from servlce 1he CourL of Appeals granLed Lhe 18C rullng ln
8ungubung's favor and reverslng and seLLlng aslde Lhe Crders daLed 11
!anuary 2003 and 28 Aprll 2003 of Lhe Cmbudsman lL furLher absolved
8ungubung from llablllLy for Lhe charge of grave mlsconducL flndlng no
subsLanLlal evldence LhaL 8ungubung commlLLed Lhe same

Isuue 1 WCn Lhere ls subsLanLlal evldence ln convlcLlng
8ongbong of grave mlsconducL
2 WCn 8ongbong ls afforded due process

ne|d 1no lndeed Lhere ls absence of subsLanLlal evldence
Lo hold 8ungubung llable for grave mlsconducL1o begln wlLh uoromal
and hls wlLness falled Lo appear aL Lhe prellmlnary conference on lebruary
21 2003 Lo aLLesL Lo Lhe LruLh of Lhe conLenLs of Lhelr affldavlLs lor such
fallure Lhelr affldavlLs are lnadmlsslble as Lhey are hearsay evldence Whlle
rules of procedure do noL sLrlcLly apply Lo admlnlsLraLlve cases as long as
defendanL's rlghL Lo due process ls noL vlolaLed lLs llberal appllcaLlon ln
admlnlsLraLlve cases does noL allow admlsslon of hearsay evldence le
affldavlLs noL ldenLlfled by afflanLs as Lhls would vlolaLe Lhe consLlLuLlonal
rlghL of peLlLloner Lo due process and hls subsLanLlve rlghL noL Lo be
ad[udged gullLy on Lhe basls of hearsay evldence We have long held LhaL
affldavlLs are deemed hearsay evldence because Lhe adverse parLy ls
deprlved of Lhe opporLunlLy Lo crossexamlne Lhe afflanLs Pence affldavlLs
are generally deemed lnadmlsslble or re[ecLed ouLrlghL unless Lhe afflanLs
Lhemselves are placed on Lhe wlLness sLand Lo LesLlfy Lhereon
2 ?es 1he facL LhaL no formal hearlng Look place ls
noL sufflclenL ground Lo say LhaL due process was noL afforded 8ungubung lL
ls wellseLLled LhaL ln admlnlsLraLlve proceedlngs lncludlng Lhose before Lhe
Cmbudsman cases may be submlLLed for resoluLlon on Lhe basls of affldavlLs
and pleadlngs 1he sLandard of due process LhaL musL be meL ln
admlnlsLraLlve Lrlbunals allows a cerLaln degree of laLlLude as long as falrness
ls noL lgnored lL ls Lherefore noL legally ob[ecLlonable for belng vlolaLlve of
due process for an admlnlsLraLlve agency Lo resolve a case bosed so/e/y on
position popers offidovits or documentory evidence submitted by the
porties os offidovits of witnesses moy toke the p/oce of their direct
testimonies undoubLedly due process ln admlnlsLraLlve proceedlngs ls an
opporLunlLy Lo explaln ones slde or an opporLunlLy Lo seek reconslderaLlon
of Lhe acLlon or rullng complalned of whlch requlremenL was afforded
8ungubung We sLress Lhe procedural LeneL LhaL a peLlLlon for revlew
on cettlototl flled wlLh Lhls CourL under 8ule 43 of Lhe 8evlsed 8ules of CourL
shall ralse only quesLlons of law
24
A quesLlon of law has been deflned as
one LhaL does noL call for any examlnaLlon of Lhe probaLlve value of Lhe
evldence presenLed by Lhe parLles
23
a quesLlon of facL arlses when Lhe
doubL or dlfference perLalns Lo Lhe LruLh or falsehood of alleged facLs or
when Lhe query necessarlly sollclLs callbraLlon of Lhe whole evldence
conslderlng mosLly Lhe credlblllLy of wlLnesses exlsLence and relevancy of
speclflc surroundlng clrcumsLances Lhelr relaLlon Lo one anoLher and Lo Lhe
whole and probablllLles of Lhe slLuaLlon
26
We have conslsLenLly held LhaL ln
a peLlLlon for revlew on cettlototl Lhls CourL does noL slL as an arblLer of facLs
for lL ls noL Lhe funcLlon of Lhe Supreme CourL Lo analyze or welgh all over
agaln Lhe evldence already consldered ln Lhe proceedlngs below
27
Such
facLual flndlngs can be quesLloned only lf among oLher excepLlons
28
Lhe
flndlngs of facL are confllcLlng and Lhe flndlngs of Lhe CourL of Appeals are
conLrary Lo Lhose of Lhe lower courL and/or admlnlsLraLlve agency whlch
excepLlonal clrcumsLances are presenL hereln Lhus [usLlfylng Lhe revlew by
Lhls CourL of Lhe facLual flndlngs of Lhe Cmbudsman and Lhe CourL of Appeals
Note obstootlol evlJeoce wblcb ls mote tboo o mete sclotlllo bot
ls socb televoot evlJeoce os o teosoooble mloJ mlqbt occept os oJepoote to
soppott o cooclosloo woolJ sofflce to bolJ ooe oJmlolsttotlvely lloble
J0
@be
stooJotJ of sobstootlol evlJeoce ls sotlsfleJ wbeo tbete ls teosoooble qtoooJ
to belleve tbot tespooJeot ls tespooslble fot tbe mlscooJoct comploloeJ
of
J1
eveo lf socb evlJeoce mlqbt oot be ovetwbelmloq ot eveo
ptepooJetoot
J2
wblle sobstootlol evlJeoce Joes oot oecessotlly lmpott
ptepooJetooce of evlJeoce os ls tepolteJ lo oo otJlooty clvll cose
JJ
ot
evlJeoce beyooJ teosoooble Joobt os ls tepolteJ lo ctlmlool coses
J4
lt
sboolJ be eoooqb fot o teosoooble mloJ to soppott o cooclosloo @bete ls
oooe bete