VFP vs COMELEC Facts: During May 11, 1998, the party-list election was held simultaneously with the

national election. A total of 123 parties, organizations and coalitions participated but only 13 party-list representatives from 12 parties and organizations which obtained at least 2% of the total number of votes cast for the party-list system were proclaimed. The COMELEC enbanc determined that COCOFED (Philippine Coconut Planters Federation Inc.), was entitled to one party-list seat for having garnered 2.04% of the total votes cast for the part-list system. Thereafter, Thirty-eight defeated parties and organizations promptly filed suit in the COMELEC, pleading for their own proclamations althout they received less than 2% of the votes on the ground that under the Constitution it is mandatory that at least 20% of the members of House of Rep. must come from the party list system. Hence, COMELEC ordered the proclamation of the 38 parties. Such move filled up the 52 seats allotted for the party-list reps. Aggrieved, the proclaimed parties asked the SC to annul the COMELEC action and instead to proclaim additional seats, so that each of them would have three party-list representatives. Issue: 1. Is the twenty percent allocation for party-list representatives mentioned in Section 5 (2), Article VI of the Constitution, mandatory or is it merely a ceiling? In other words, should the twenty percent allocation for party-list solons be filled up completely and all the time? 2. Are the two percent threshold requirement and the three-seat limit provided in Section 11 (b) of RA 7941 constitutional? 3. If the answer to Issue 2 is in the affirmative, how should the additional seats of a qualified party be determined? Ruling:

1. Supreme Court rule that a simple reading of Section 5, Article VI of the Constitution, easily conveys the equally simple message that Congress was vested with the broad power to define and prescribe the mechanics of the party-list system of representation. The Constitution explicitly sets down only the percentage of the total membership in the House of Representatives reserved for party-list representatives. In the exercise of its constitutional prerogative, Congress enacted RA 7941. As said earlier, Congress declared therein a policy to promote "proportional representation" in the election of party-list representatives in order to enable Filipinos belonging to the marginalized and underrepresented sectors to contribute legislation that would benefit them. It however deemed it necessary to require parties, organizations and coalitions participating in the system to obtain at least two percent of the total votes cast for the party-list system in order to be entitled to a party-list seat. Those garnering more than this percentage could have "additional seats in proportion to their total number of votes. Furthermore, no winning party, organization or coalition can have more than three seats in the House of Representatives.

Hence, Section 5(2), Article VI of the Constitution is not mandatory. It merely provides a ceiling for party list seats in the House of Representatives. It is not necessarily be filled up completely & all the time.

2. The two percent threshold requirement and the three-seat limit provided in Section 11 (b) of RA 7941 is constitutional. In imposing a two percent threshold, Congress wanted to ensure that only those parties, organizations and coalitions having a sufficient number of constituents deserving of representation are actually represented in Congress. The two percent threshold is consistent not only with the intent of the framers of the Constitution and the law, but with the very essence of "representation." Under a republican or representative state, all government authority emanates from the people, but is exercised by representatives chosen by them.1[21] But to have meaningful representation, the elected persons must have the mandate of a sufficient number of people. Otherwise, in a legislature that features the party-list system, the result might be the proliferation of small groups which are incapable of contributing significant legislation, and which might even pose a threat to the stability of Congress. Thus, even legislative districts are apportioned according to "the number of their respective inhabitants, and on the basis of a uniform and progressive ratio"2[22] to ensure meaningful local representation. All in all, we hold that the statutory provision on this two percent requirement is precise and crystalline. When the law is clear, the function of courts is simple application, not interpretation or circumvention. An important consideration in adopting the party-list system is to promote and encourage a multiparty system of representation. Consistent with the Constitutional Commission's pronouncements, Congress set the seat-limit to three (3) for each qualified party, organization or coalition. "Qualified" means having hurdled the two percent vote threshold. Such three-seat limit ensures the entry of various interest-representations into the legislature; thus, no single group, no matter how large its membership, would dominate the party-list seats, if not the entire House. 3.As to the method of allocating additional seats, the first step is to rank all the participating parties according to the votes they each obtained. The percentage of their respective votes as against the total number of votes cast for the party-list system is then determined. All those that garnered at least two percent of the total votes cast have an assured or guaranteed seat in the House of Representatives. Thereafter, those garnering more than two percent of the votes shall be entitled to additional seats in proportion to their total number of votes. The formula for additional seats of other qualified parties is: no.of votes of concerned party divided by no.of votes of first party multiplied by no. of additional seats allocated to the first party.

WHEREFORE, the Petitions are hereby partially GRANTED. The assailed Resolutions of the Comelec are SET ASIDE and NULLIFIED. The proclamations of the fourteen (14) sitting party-

list representatives - two for APEC and one each for the remaining twelve (12) qualified parties are AFFIRMED.