Admininstrative Law 2017

Case Digest Compilation 3

1. ANTONIO A. MECANO, petitioner, vs. FACTS: This case involves three contracts of lease:
COMMISSION ON AUDIT, respondent.
1) Contract A: executed between Civil Aeronautics
FACTS: Mecano, an NBI Director, was hospitalized Administration (lessor) and Rosario Leveriza
for cholecystitis, for which he incurred medical (lessee)
and hospitalization expenses, the total amount of 2) Contract B: executed between Leveriza (lessor)
which he is claiming from the COA, based on sec. and Mobil Oil (lessee)
699 of the RAC. COA contended that the RAC has 3) Contract C: executed between CAA (lessor) and
been repealed by the Administrative Code of Mobil Oil (lessee)
1987, specifically sec. 699 was not restated nor re-
enacted in the Code. When Leveriza subleased the property to Mobil
Oil (Contract B) without permission from the
ISSUE: Whether or not the Administrative Code of lessor, CAA cancelled Contract A and executed
1987 repealed or abrogated Section 699 of the Contract C with Mobil Oil. Leveriza contended that
Revised Administrative Code of 1917 Contract C was invalid not only because it was
entered into by CAA without approval by the
RULING: NO. Respondent was ordered to give due Department Secretary but also because it was not
course on petitioners claim for benefits. executed by the President of the Philippines or
officer duly designated. According to Leveriza, the
The question of whether or not a particular law officer duly designated to cancel the contract is
has been repealed or not by a subsequent law is a not the Airport General Manager but the
matter of legislative intent. The lawmakers may Secretary of Public Works and Communication or
expressly repeal a law by incorporating therein a the Director of the CAA.
repealing provision which expressly and
specifically cites the particular law or laws, and ISSUE: WON the CAA administrator has the
portions thereof, that are intended to be authority to enter to Contract of Lease
repealed. A declaration in a statute, usually in its
repealing clause, that a particular and specific law, HELD: YES. Finally, petitioners contend that the
identified by its number or title, is repealed is an administrator of CAA cannot execute without
express repeal; all others are implied repeals. approval of the Department Secretary, a valid
contract of lease over real property owned by the
Under sec. 27, Bk. VII (Final Provisions) of the Republic of the Philippines, citing the Revised
Administrative Code of 1987, the repealing clause Administrative Code, which provide that Under
states that all laws, decrees, orders, rules and 567 of the Revised Administrative Code, such
regulations, or portions thereof, inconsistent with contract of lease must be executed:
this Code are hereby repealed or modified (1) by the President of the Philippines, or
accordingly. (2) by an officer duly designated by him or
(3) by an officer expressly vested by law.
The question that should be asked is: What is the
nature of this repealing clause? It is certainly not On the other hand, respondent CAA avers that the
an express repealing clause because it fails to CAA Administrator has the authority to lease real
identify or designate the act or acts that are property belonging to the RP under its
intended to be repealed. Rather, it is an example administration even without the approval of the
of a general repealing provision. It is a clause Secretary of Public Works and Communications,
which predicates the intended repeal under the which authority is expressly vested in it by law,
condition that a substantial conflict must be found more particularly Section 32 (24) of Republic Act
in existing and prior acts. The failure to add a 776, which reads: Sec. 32. Powers and Duties of
specific repealing clause indicates the intent was the Administrator. Subject to the general
not to repeal any existing law, unless an control and supervision of the Department Head,
irreconcilable inconsistency and repugnancy exist the Administrator shall have, among others, the
in the terms of the new and old laws. The latter following powers and duties:
situation falls under the category of an implied (24) To administer, operate, manage, control,
repeal. maintain and develop the Manila International
Airport and all government aerodromes except
(NOTA BENE: This means that the RAC, despite the those controlled or operated by the Armed
passage of the Administrative Code of 1987, may Forces of the Philippines including such power
still be a source of administrative law) and duties as: (b) to enter into, make and
execute contracts of any kind with any person,
firm, or public or private corporation or entity;
2. LEVERIZA et al vs. IAC, Mobil oil and CAA (c) to acquire, hold, purchase, or lease any
personal or real property; right of ways, and
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Case Digest Compilation 3
easements which may be proper or necessary: 3. Ignacia Balicas v. Fact-Finding and lntelligence
Provided, that no real property thus acquired Bureau (FFIB)
and any other real property of the Civil
Aeronautics Administration shall be sold FACTS: Respondent BALICAS, PENRO senior
without the approval of the President of the environmental management specialist, monitored
Philippines. the implementation of the CHS Project
Development to check compliance with the terms
There is no dispute that the Revised and conditions in the ECC. She conducted another
Administrative Code is a general law while monitoring on the project for the same purpose.
Republic Act 776 is a special law nor in the fact
that the real property subject of the lease in In both instances, she noted that the project was
Contract C is real property belonging to the still in the construction stage hence, compliance
Republic of the Philippines. with the stipulated conditions could not be fully
assessed, and therefore, a follow-up monitoring is
It is readily apparent that in the case at bar, the proper. It appeared from the records that this
CAA has the authority to enter into Contracts of August 23, 1995 monitoring inspection was the
Lease for the government under the third last one conducted by the DENR.
category (Art. 567. )Thus, as correctly ruled by the
Court of Appeals, the CAA has the power to Immediately after the tragic incident on August 3,
execute the deed or contract involving leases of 1999, a fact-finding investigation was conducted
real properties belonging to the RP, not because it by the Office of the Ombudsman through its Fact-
is an entity duly designated by the President but Finding and Intelligence Bureau (FFIB), which duly
because the said authority to execute the same is, filed an administrative complaint with the Office
by law expressly vested in it, which in this case is of the Ombudsman against several officials of the
RA 776. Housing and Land Use Regulatory Board (HLURB),
Department of Environment and Natural
Under the above-cited Section 32 (par. 24) of Resources(DENR), and the local government of
Republic Act 776, the Administrator (Director) of Antipolo. The charge against petitioner involved a
the CAA by reason of its creation and existence, supposed failure on her part to monitor and
administers properties belonging to the RP and it inspect the development of CHS, which was
is on these properties that the Administrator must assumed to be her duty as DENR
exercise his vast power and discharge his duty to senior environmental management specialist
enter into, make and execute contract of any kind assigned in the province of Rizal.
with any person, firm, or public or private
corporation or entity and to acquire, hold, For her part, petitioner belied allegations that
purchase, or lease any personal or real property, monitoring was not conducted, claiming that she
right of ways and easements which may be proper monitored the development of CHS as evidenced
or necessary. (The exception, however, is the sale by 3 monitoring reports .She further claimed good
of properties acquired by CAA or any other real faith and exercise of due diligence, insisting that
properties of the same which must have the the tragedy was a fortuitous event. She reasoned
approval of the President of the Philippines.) The that the collapse did not occur in Cherry Hills, but
Court of appeals took cognizance of the striking in the adjacent mountain eastern side of the
absence of such proviso in the other transactions subdivision.
contemplated in paragraph (24) and is convinced
as we are, that the Director of the CAA does not ISSUE: WON Balicas is guilty of gross neglect of
need the prior approval of the President or the duty.
Secretary of Public Works and Communications in
the execution of Contract C. RULING: In order to ascertain if there had been
gross neglect of duty, we have to look at the
In this regard, this Court, ruled that another basic lawfully prescribed duties of petitioner.
principle of statutory construction mandates that Unfortunately, DENR regulations are silent on the
general legislation must give way to special specific duties of a senior environmental
legislation on the same subject, and generally be management specialist. Internal regulations
so interpreted as to embrace only cases in which merely speak of the functions of the Provincial
the special provisions are not applicable; that Environment and Natural Resources Office
specific statute prevails over a general ; and that (PENRO) to which petitioner directly reports.
where two statutes are of equal theoretical
application to a particular case, the one designed The responsibility of monitoring of housing and
therefor specially should prevail. land development projects is not lodged with the
DENR but with the HLURB which is the sole
regulatory body for housing and
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development. Hence there is no legal basis for a department framework, vested with special
government employee under DENR be held functions or jurisdiction by law, endowed with
liable for gross neglect of duty pertaining to some if not all corporate powers, administering
another agency. special funds, and enjoying operational autonomy,
usually through a charter. This term includes
Regulatory Agency refers to any agency expressly regulatory agencies, chartered institutions, and
vested with jurisdiction to regulate, administer government-owned or controlled corporations.
or adjudicate matters affecting substantial rights
and interests of private persons, the The same Code describes a chartered institution
principal powers of which are exercised by a thus:
collective body such as a commission, board or Chartered institution - refers to any agency
council organized or operating under a special charter,
and vested by law with functions relating to
specific constitutional policies or objectives.
4. MARIA ELENA MALAGA, doing business under This term includes the state universities and
the name B.E. CONSTRUCTION; JOSIELEEN colleges, and the monetary authority of the
NAJARRO, doing business under the name BEST state.
BUILT CONSTRUCTION; JOSE N. OCCEA, doing
business under the name THE FIRM OF JOSE N. It is clear from the above definitions that ISCOF is
OCCEA; and the ILOILO BUILDERS a chartered institution and is therefore covered by
CORPORATION, Petitioners, v. MANUEL R. P.D. 1818. There are also indications in its charter
PENACHOS, JR., ALFREDO MATANGGA, ENRICO that ISCOF is a government instrumentality.
TICAR AND TERESITA VILLANUEVA, in their
respective capacities as Chairman and Members First, it was created in pursuance of the integrated
of the Pre-qualification Bids and Awards fisheries development policy of the State, a
Committee (PBAC)-BENIGNO PANISTANTE, in his priority program of the government to effect the
capacity as President of Iloilo State College of socio-economic life of the nation.
Fisheries, as well as in their respective personal
capacities; and HON. LODRIGIO L. Second, the Treasurer of the Republic of the
LEBAQUIN, Respondents. Philippines shall also be the ex-officio Treasurer of
the state college with its accounts and expenses
FACTS: The Iloilo State College of Fisheries (ISCOF) to be audited by the Commission on Audit or its
through its Pre-qualifications, Bids and Awards duly authorized representative.
Committee (PBAC) caused the publication in the
November 25, 26 and 28, 1988 issues of the Third, heads of bureaus and offices of the National
Western Visayas Daily an Invitation to Bid for the Government are authorized to loan or transfer to
construction of a Micro Laboratory Building at it, upon request of the president of the state
ISCOF. The notice announced that the last day for college, such apparatus, equipment, or supplies
the submission of pre-qualification requirements and even the services of such employees as can be
was on December 2, 1988, and that the bids spared without serious detriment to public
would be received and opened on December 12, service.
1988 at 3 o'clock in the afternoon.
Lastly, an additional amount of P1.5M had been
Petitioners Malaga and Najarro, doing business appropriated out of the funds of the National
under the name of BE Construction and Best Built Treasury and it was also decreed in its charter that
Construction, respectively, submitted their pre- the funds and maintenance of the state college
qualification documents at two o'clock in the would henceforth be included in the General
afternoon of December 2, 1988. Petitioner Appropriations Law.
Occeana submitted his own PRE-C1 on December
5, 1988. All three of them were not allowed to Nevertheless, it does not automatically follow that
participate in the bidding as their documents were ISCOF is covered by the prohibition in the said
considered late. decree as there are irregularities present
surrounding the transaction that justified the
ISSUE: Whether or not ISCOF is a government injunction issued as regards to the bidding and the
instrumentality subject to the provisions of PD award of the project.
1818

RULING: The 1987 Administrative Code defines a 5. Preclaro vs Sandiganbayan, 247 SCRA 454
government instrumentality as follows:
Instrumentality refers to any agency of the FACTS: Accused is a project manager/consultant
National Government, not integrated within the of the Chemical Mineral Division, Industrial
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Technology Development Institute, Department of merit and fitness utilized for the career service;
Science and Technology, a component of the and 2) tenure which is limited to a period
Industrial Development Institute which is an specified by law, or which is coterminous with
agency of the DOST. that of the appointing authority or subject to his
pleasure, or which is limited to the duration of a
He is to supervise the construction of the ITDI- particular project for which purpose employment
CMD building, while the Jaime Sta. Maria was made.
Construction undertook the construction. The
structure is jointly funded by the Philippine and Section 9(4) of the same provides that Non-Career
Japanese Governments. Service It shall include Contractual personnel or
those employment in the government is in
While the said construction has not yet been accordance with a special contract to undertake a
completed, accused either directly requested specific work or job, requiring special or technical
and/or demanded for himself the sum of skills not available in the employing agency, to be
P200,000.00, claimed as part of the expected accomplished within a specific period, which in no
profit of the contractor. case shall exceed one year, and performs or
accomplishes the specific work or job, under his
Petitioner was charged for violation of the Anti- own responsibility with a minimum of direction
Graft and Corrupt Practices Act for committing and supervision from the hiring agency.
said offense in relation to the performance of his
official duties.
6. LOUIS BAROK C. BIRAOGO, Petitioner vs. THE
Petitioner asserts in a petition for review that he PHILIPPINE TRUTH COMMISSION OF 2010,
is not a public officer because he was neither Respondent.
elected nor appointed to a public office, but x------------------------------x
merely a private individual hired by the ITDI on
contractual basis for a particular project and for a REP. EDCEL C. LAGMAN, REP. RODOLFO B.
specified period. Hence the Sandiganbayan erred ALBANO, JR., REP. SIMEON A.
in taking cognizance of the case. DATUMANONG, and REP. ORLANDO B. FUA, SR.,
Petitioners, vs. EXECUTIVE SECRETARY PAQUITO
Section 2 (b) of RA 3019 defines a public officer to N. OCHOA, JR. and DEPARTMENT OF BUDGET
include elective and appointive officials and AND MANAGEMENT SECRETARY FLORENCIO B.
employees, permanent or temporary, whether in ABAD, Respondents
the classified or unclassified or exemption service
receiving compensation, even nominal, from the FACTS: Pres. Aquino signed E. O. No. 1
government establishing Philippine Truth Commission of 2010
(PTC) dated July 30, 2010.
ISSUE: WON a private individual hired on a
contractual basis by the government is a public PTC is a mere ad hoc body formed under the
officer Office of the President with the primary task to
investigate reports of graft and corruption
HELD: YES. The word includes used in defining a committed by third-level public officers and
public officer indicates that the definition is not employees, their co-principals, accomplices and
restrictive. The terms classified, unclassified or accessories during the previous administration,
exemption service were the old categories of and to submit its finding and recommendations to
position in the civil service which have been the President, Congress and the Ombudsman. PTC
reclassified into Career Service and Non-Career has all the powers of an investigative body. But it
Service by PD 807 providing for the organization is not a quasi-judicial body as it cannot adjudicate,
of the Civil Service Commission by the arbitrate, resolve, settle, or render awards in
Administrative Code of 1987. disputes between contending parties. All it can do
is gather, collect and assess evidence of graft and
A private individual hired on a contractual basis as corruption and make recommendations. It may
Project Manager for a government undertaking have subpoena powers but it has no power to cite
falls under the non-career service category of the people in contempt, much less order their arrest.
Civil Service and thus is a public officer as defined Although it is a fact-finding body, it cannot
by Sec 2(b) of RA 3019. determine from such facts if probable cause exists
as to warrant the filing of an information in our
Under Book V, Title I, Subtitle A, Chapter 2, Sec courts of law.
6(2) of the Administrative Code of 1987, non-
career service in particular is characterized by 1) Petitioners raised in Court that E.O 1 which
entrance other than those of the usual test of created the PTC should be declared
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unconstitutional and to enjoin PTC PCAC, PCAPE, PARGO, the Feliciano Commission,
from performing its functions. the Melo Commission and the Zenarosa
Commission. There being no changes in the
It is their contention that PTC violates separation government structure, the Court is not inclined to
of powers as it encroach the power of congress to declare such executive power as non-existent just
create Public Office and appropriate funds for its because the direction of the political winds have
operation. changed.

They also asserted the fact that the role of the

President in the 1987 Constitution does not 7. KAPISANAN NG MGA KAWANI NG ENERGY
include the power to create an entirely new public REGULATORY BOARD, Petitioner, - versus -
office. COMMISSIONER FE B. BARIN, DEPUTY
COMMISSIONERS CARLOS R. ALINDADA, LETICIA
Respondents contested that EO 1 did not arrogate V. IBAY, OLIVER B. BUTALID, and MARY ANNE B.
the powers of the Congress to create Public Office COLAYCO, of the ENERGY REGULATORY
because the Presidents executive power and COMMISSION, Respondents.
control necessarily includes the inherent power to
conduct investigation to ensure laws are faithfully
executed. 8. COMMISSION ON HUMAN RIGHTS EMPLOYEES
ASSOCIATION (CHREA) Represented by its
ISSUE: WON the President has the power to President, MARCIAL A. SANCHEZ, JR., petitioner,
create the Philippine Truth Commission vs. COMMISSION ON HUMAN RIGHTS, respondent.
RULING: YES. One of the recognized powers of the FACTS: Congress passed RA 8522, otherwise known
President granted pursuant to this as the General Appropriations Act of 1998. It
constitutionally-mandated duty is the power to provided for Special Provisions Applicable to All
create ad hoc committees. This flows from the Constitutional Offices Enjoying Fiscal Autonomy. On
obvious need to ascertain facts and determine if the strength of these special provisions, the CHR
laws have been faithfully executed. promulgated Resolution No. A98-047 adopting an
upgrading and reclassification scheme among
Thus, in Department of Health v. Camposano, the selected positions in the Commission.
authority of the President to issue Administrative
Order No. 298, creating an investigative By virtue of Resolution No. A98-062, the CHR
committee to look into the administrative charges collapsed the vacant positions in the body to
filed against the employees of the Department of provide additional source of funding for said
Health for the anomalous purchase of medicines staffing modification.
was upheld. In said case, it was ruled:
The Chief Executives power to create the Ad The CHR forwarded said staffing modification and
hoc Investigating Committee cannot be upgrading scheme to the DBM with a request for
doubted. Having been constitutionally granted its approval, but the then DBM secretary denied
full control of the Executive Department, to the request.
which respondents belong, the President has
the obligation to ensure that all executive In light of the DBMs disapproval of the proposed
officials and employees faithfully comply with personnel modification scheme, the CSC-National
the law. With AO 298 as mandate, the legality Capital Region Office, through a memorandum,
of the investigation is sustained. Such validity is recommended to the CSC-Central Office that the
not affected by the fact that the investigating subject appointments be rejected owing to the
team and the PCAGC had the same DBMs disapproval of the plantilla reclassification.
composition, or that the former used the
offices and facilities of the latter in conducting Meanwhile, the officers of petitioner CHR-
the inquiry. employees association (CHREA) in representation
of the rank and file employees of the CHR,
It should be stressed that the purpose of requested the CSC-Central Office to affirm the
allowing ad hoc investigating bodies to exist is to recommendation of the CSC-Regional Office. The
allow an inquiry into matters which the President CSC-Central Office denied CHREAs request in a
is entitled to know so that he can be properly Resolution and reversed the recommendation of
advised and guided in the performance of his the CSC-Regional Office that the upgrading
duties relative to the execution and enforcement scheme be censured. CHREA filed a motion for
of the laws of the land. And if history is to be reconsideration, but the CSC-Central Office denied
revisited, this was also the objective of the the same.
investigative bodies created in the past like the
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CHREA elevated the matter to the CA, SEC. 24. Constitutional Commissions. The
which affirmed the pronouncement of the CSC- Constitutional Commissions, which shall be
Central Office and upheld the validity of the independent, are the Civil Service Commission,
upgrading, retitling, and reclassification scheme in the Commission on Elections, and the
the CHR on the justification that such action is Commission on Audit.
within the ambit of CHRs fiscal autonomy. SEC. 26. Fiscal Autonomy. The Constitutional
Commissions shall enjoy fiscal autonomy. The
ISSUE: Can the CHR validly implement an approved annual appropriations shall be
upgrading, reclassification, creation, and automatically and regularly released.
collapsing of plantilla positions in the Commission SEC. 29. Other Bodies. There shall be in
without the prior approval of the Department of accordance with the Constitution, an Office of
Budget and Management? the Ombudsman, a Commission on Human
Rights, and independent central monetary
HELD: NO The 3 CHR Resolutions, without the authority, and a national police commission.
approval of the DBM are disallowed. Likewise, as provided in the Constitution,
Congress may establish an independent
1. RA 6758, An Act Prescribing a Revised economic and planning agency.
Compensation and Position Classification
System in the Government and For Other From the 1987 Constitution and the
Purposes, or the Salary Standardization Law, Administrative Code, it is abundantly clear that
provides that it is the DBM that shall establish the CHR is not among the class of Constitutional
and administer a unified Compensation and Commissions. As expressed in the oft-repeated
Position Classification System. maxim expressio unius est exclusio alterius, the
express mention of one person, thing, act or
The disputation of the CA that the CHR is exempt consequence excludes all others. Stated
from the long arm of the Salary Standardization otherwise, expressium facit cessare tacitum
Law is flawed considering that the coverage what is expressed puts an end to what is implied.
thereof encompasses the entire gamut of
government offices, sans qualification. Nor is there any legal basis to support the
contention that the CHR enjoys fiscal autonomy.
This power to administer is not purely In essence, fiscal autonomy entails freedom from
ministerial in character as erroneously held by the outside control and limitations, other than those
CA. The word to administer means to control or provided by law. It is the freedom to allocate and
regulate in behalf of others; to direct or utilize funds granted by law, in accordance with
superintend the execution, application or conduct law, and pursuant to the wisdom and dispatch its
of; and to manage or conduct public affairs, as to needs may require from time to time.22 In
administer the government of the state. Blaquera v. Alcala and Bengzon v. Drilon,23 it is
understood that it is only the Judiciary, the CSC,
The CA incorrectly relied on the pronouncement the COA, the COMELEC, and the Office of the
of the CSC-Central Office that the CHR is a Ombudsman, which enjoy fiscal autonomy.
constitutional commission, and as such enjoys
fiscal autonomy. Neither does the fact that the CHR was admitted
as a member by the Constitutional Fiscal
Palpably, the CAs Decision was based on the Autonomy Group (CFAG) ipso facto clothed it with
mistaken premise that the CHR belongs to the fiscal autonomy. Fiscal autonomy is a
species of constitutional commissions. constitutional grant, not a tag obtainable by
membership. We note with interest that the
But the Constitution states in no uncertain terms special provision under Rep. Act No. 8522, while
that only the CSC, the COMELEC, and the COA cited under the heading of the CHR, did not
shall be tagged as Constitutional Commissions specifically mention CHR as among those offices
with the appurtenant right to fiscal autonomy. to which the special provision to formulate and
implement organizational structures apply, but
Along the same vein, the Administrative Code, on merely states its coverage to include
Distribution of Powers of Government, the Constitutional Commissions and Offices enjoying
constitutional commissions shall include only the fiscal autonomy
CSC, the COMELEC, and the COA, which are
granted independence and fiscal autonomy. In All told, the CHR, although admittedly a
contrast, Chapter 5, Section 29 thereof, is silent constitutional creation is, nonetheless, not
on the grant of similar powers to the other bodies included in the genus of offices accorded fiscal
including the CHR. Thus: autonomy by constitutional or legislative fiat.
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Even assuming en arguendo that the CHR enjoys A public office is either created by the
fiscal autonomy, we share the stance of the DBM Constitution, by statute, or by authority of law.
that the grant of fiscal autonomy notwithstanding, Thus, except where the office was created by the
all government offices must, all the same, kowtow Constitution itself, it may be abolished by the
to the Salary Standardization Law. We are of the same legislature that brought it into existence.
same mind with the DBM on its standpoint, thus- The exception, however, is that as far as bureaus,
agencies or offices in the executive department
Being a member of the fiscal autonomy group are concerned, the Presidents power of control
does not vest the agency with the authority to may justify him to inactivate the functions of a
reclassify, upgrade, and create positions without particular office, or certain laws may grant him
approval of the DBM. While the members of the the broad authority to carry out reorganization
Group are authorized to formulate and implement measures. Section 48 of RA 7645 provides that
the organizational structures of their respective Actual scaling down, phasing out or abolition of
offices and determine the compensation of their the activities shall be effected pursuant to
personnel, such authority is not absolute and Circulars or Orders issued for the purpose by the
must be exercised within the parameters of the Office of the President.
Unified Position Classification and Compensation
System established under RA 6758 more popularly
known as the Compensation Standardization Law. 10. NATIONAL LAND TITLES AND DEEDS
REGISTRATION ADMINISTRATION, petitioner, vs.
9. DRIANITA BAGAOISAN, FELY MADRIAGA, CIVIL SERVICE COMMISSION and VIOLETA L.
SHIRLY TAGABAN, RICARDO SARANDI, SUSAN GARCIA, respondents.
IMPERIAL, BENJAMIN DEMDEM, RODOLFO
DAGA, EDGARDO BACLIG, GREGORIO LABAYAN, FACTS: Garcia, a Bachelor of Laws graduate and a
HILARIO JEREZ, and MARIA CORAZON first grade civil service eligible was appointed
CUANANG, petitioners, vs. NATIONAL TOBACCO Deputy Register of Deeds VII under permanent
ADMINISTRATION, represented by ANTONIO DE status. Said position was later reclassified to
GUZMAN and PERLITA BAULA, respondents. Deputy Register of Deeds III pursuant to PD 1529,
to which position, petitioner was also appointed
FACTS: President Estrada issued E.O 29 which under permanent status up to September 1984.
provides for the mandating the streamlining of
NTA and issued E.O 36 thereafter amending E.O. She was for two years, more or less, designated as
29 providing for the increasing of the staffing Acting Branch Register of Deeds of Meycauayan,
pattern from 400 to not exceeding 750 positions Bulacan. By virtue of Executive Order No. 649
affected. (which took effect on February 9, 1981) which
authorized the restructuring of the Land
NTA prepared and adopted a New Organization Registration Commission to National Land Titles
Structure and Staffing Position (OSSP). Petitioners and Deeds Registration Administration and
are from NTA Batac, Ilocos Norte who received regionalizing the Offices of the Registers therein,
individual notices of termination. petitioner Garcia was issued an appointment as
Deputy Register of Deeds II on October 1, 1984,
They filed a position for certiorari, prohibition and under temporary status, for not being a member
mandamus. RTC ordered NTA to appoint of the
petitioners in the new OSSP to positions similar or
comparable to their respective of former In its Resolution 2 dated June 30, 1988, the Civil
assignments. Service Commission directed that private
respondent Garcia be restored to her position as
ISSUE: WON the President, through the issuance Deputy Register of Deeds II or its equivalent in the
of an Executive Order can validly carry out the NALTDRA. It held that "under the vested right
reorganization of the NTA. theory the new requirement of BAR membership
to qualify for permanent appointment as Deputy
RULING: The President, based on existing laws, Register of Deeds II or higher as mandated under
had the authority to carry out a reorganization in said Executive Order, would not apply to her
any branch or agency of the executive (private respondent Garcia) but only to the filling
department. up of vacant lawyer positions on or after February
The general rule has always been that the power 9, 1981, the date said Executive Order took
to abolish a public office is lodged with the effect." 3 A fortiori, since private respondent
legislature. This proceeds from the legal precept Garcia had been holding the position of Deputy
that the power to create includes the power to Register of Deeds II from 1977 to September
destroy. 1984, she should not be affected by the operation
on February 1, 1981 of Executive Order No. 649.
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There is no dispute over the authority to carry out
Petitioner NALTDRA filed the present petition to a valid reorganization in any branch or agency of
assail the validity of the above Resolution of the the Government. Under Section 9, Article XVII of
Civil Service Commission. the 1973 Constitution. The power to reorganize is,
however; not absolute.
NALTDRA Contention: It contends that Sections 8
and 10 of Executive Order No. 649 abolished all We have held in Dario vs. Mison that
existing positions in the LRC and transferred their reorganizations in this jurisdiction have been
functions to the appropriate new offices created regarded as valid provided they are pursued in
by said Executive Order, which newly created good faith. This court has pronounced that if the
offices required the issuance of new newly created office has substantially new,
appointments to qualified office holders. Verily, different or additional functions, duties or powers,
Executive Order No. 649 applies to private so that it may be said in fact to create an office
respondent Garcia, and not being a member of different from the one abolished, even though it
the Bar, she cannot be reinstated to her former embraces all or some of the duties of the old
position as Deputy Register of Deeds II. office it will be considered as an abolition of one
office and the creation of a new or different one.
ISSUE: WON Membership of the Bar is a The same is true if one office is abolished and its
qualification requirement for appointment of duties, for reasons of economy are given to an
Deputy Register of Deeds under EO 649? existing officer or office. Executive Order No. 649
RULING: YES. Executive Order No. 649 authorized was enacted to improve the services and better
the reorganization of the Land Registration systematize the operation of the Land Registration
Commission (LRC) into the National Land Titles Commission. A reorganization is carried out in
and Deeds Registration Administration good faith if it is for the purpose of economy or to
(NALTDRA). make bureaucracy more efficient. To this end, the
requirement of Bar membership to qualify for key
It abolished all the positions in the now defunct positions in the NALTDRA was imposed to meet
LRC and required new appointments to be issued the changing circumstances and new
to all employees of the NALTDRA. The question of development of the times. Private respondent
whether or not a law abolishes an office is one of Garcia who formerly held the position of Deputy
legislative intent about which there can be no Register of Deeds II did not have such
controversy whatsoever if there is an explicit qualification. It is thus clear that she cannot hold
declaration in the law itself. A closer examination any key position in the NALTDRA, The additional
of Executive Order No. 649 which authorized the qualification was not intended to remove her
reorganization of the Land Registration from office. Rather, it was a criterion imposed
Commission (LRC) into the National Land Titles concomitant with a valid reorganization measure.
and Deeds Registration Administration
(NALTDRA), reveals that said law in express terms,
provided for the abolition of existing positions. 11. ELISEO A. SINON, petitioner, vs. CIVIL
SERVICE COMMISSION, DEPARTMENT OF
Thus, without need of any interpretation, the law AGRICULTURE-REORGANIZATION APPEALS
mandates that from the moment an implementing BOARD AND JUANA BANAN, respondents.
order is issued, all positions in the Land
Registration Commission are deemed non- FACTS: Prior to the reorganization of the then
existent. This, however, does not mean removal. Minister of Agriculture and Food (the "MAF"), the
Abolition of a position does not involve or mean private respondent Juana Banan was the
removal for the reason that removal implies that incumbent Municipal Agricultural Officer (MAO) of
the post subsists and that one is merely separated the aforesaid Minister in Region II, Cagayan, while
therefrom. After abolition, there is in law no the petitioner Eliseo Sinon occupied the position
occupant. Thus, there can be no tenure to speak of Fisheries Extension Specialist (FES) II in the
of. It is in this sense that from the standpoint of Bureau of Fisheries and Aquatic Resources (BFAR)
strict law, the question of any impairment of in the same region.
security of tenure does not arise.
However, the reorganization of the MAF into the
Nothing is better settled in our law than that the Department of Agriculture (the "DA"), with the
abolition of an office within the competence of a issuance of Executive Order No. 116 dated 30
legitimate body if done in good faith suffers from January 1987, called for the evaluation of the
no infirmity. Two questions therefore arise: (1) following employees for twenty nine position of
was the abolition carried out by a legitimate MAO in Region II, Cagayan. The list as prepared by
body?; and (2) was it done in good faith? the Placement Committee included the herein
 Admininstrative Law 2017
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petitioner Sinon but excluded the respondent ISSUE: WON CSC committed grave abuse of
Banan discretion in reviewing and re-evaluating the
rating or qualification of petitioner
Thus, respondents Banan filed an appeal with the
DARAB for re-evaluation of the qualification of all RULING: NO. By grave abuse of discretion is
those included in the aforementioned list made by meant such capricious and whimsical exercise of
the Placement Committee. judgment as is equivalent to lack of jurisdiction.
The abuse of discretion must be patent and gross
On August 23, 1989, the DARAB released as to amount to an evasion of positive duty or a
Resolution No. 97 in which the ranking for 29 virtual refusal to perform a duty enjoined by law,
MAO prepared by the Placement Committee was or to act at all in contemplation of law, as where
re-evaluated. the power is exercised in an arbitrary and despotic
manner by reason of passion or hostility.
In this re-evaluation, petitioner Sinon was
displaced by the respondent Banan and this same With the reorganization of the MAF into the DA
resolution was duly approved by the Secretary of with Executive order No. 116, it became
the Department of Agriculture, Carlos G. imperative to "protect the security of tenure of
Dominguez, who also affixed his signature on the Civil Service Officers and employees in the
same date. implementation of government reorganization".
Thus, Congress passed Republic Act No. 6656.
However, on August 30, 1988, Sinon received an
appointment as MAO for Region II in Cagayan as It was under the same law of R.A. 6656 that the
approved by Regional Director Gumersindo D. Placement Committee was created:
Lasam on the basis of the first evaluation made by Section 6. In order that the best qualified and
the Placement Committee. mot deserving persons shall be appointed in
any reorganization, there shall be created a
Thus, Sinon filed an appeal docketed as Civil Placement Committee in each department or
Service Case No. 573 on November 22, 1989 to agency to assist the appointing authority in the
the CSC. This appeal was granted mainly for two judicious selection and placement of personnel.
reasons: first, the respondent DARAB failed to file
its Comment within the period required; and To "assist" mean to lend an aid to, or to
second, the evaluation of the qualification of the contribute effort in the complete accomplishment
employees is a question of fact which the of an ultimate purpose intended to be effected by
appointing authority or the Placement Committee those engaged. In contrast, to "recommend" is to
assisting him is in a better position to determine. present one's advice or choice as having one's
Hence, the Resolution dated 28 February 1989 of approval or to represent or urge as advisable or
the DARAB was set aside. expedient. It involves the Idea that another has
the final decision.
On March 19, 1990, Banan filed a Motion for
Reconsideration in which she pitted her Clearly, the Placement Committee was charged
qualifications against Sinon for the last slot in the with the duty of exercising the same discretionary
29 available MAO positions. At the same time, she functions as the appointing authority in the
pointed out that to allow the findings of the judicious selection and placement of personnel
Placement Committee to supersede the DARAB when the law empowered it to "assist" the
resolution which the Secretary of Agriculture had appointment authority.
approved would be tantamount to giving
precedence to the Placement Committee over the The same law also allows any officer or employee
head of the agency. aggrieved by the appointments to file an appeal
with the appointing authority who shall made a
Finally, on February 8, 1991, CSC, after reviewing decision within thirty (30) days from the filing
the Comment filed by the DARAB which had not thereof. If the same employee is still not satisfied
been considered earlier in the Civil Service Case with the decision of the appointing authority, he
No. 573, the CSC granted respondent Banan's may further appeal within ten (10) days from the
Motion for Reconsideration and gave due course receipt thereof the CSC.
to her appointment by the DARAB.
In the case at bar, the Circular dated October 2,
On March 21, 1991, Sinon filed a Motion for 1987 of the Office of the President created the
Reconsideration of the February 8, 1991 agency Reorganization Appeals Board to address
Resolution which however was denied by the CSC the problem of the employees affected by the
in its assailed Resolution dated July 11, 1991. reorganizations.
 Admininstrative Law 2017
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The foregoing legal measures spell out the petitioner Sinon whose appointment was never
remedies of aggrieved parties which make it confirmed completely. There is no dispute that
impossible to give the status of finality to any the position of MAO in the old staffing pattern is
appointment until all protests or oppositions are most comparable to the MAO in the new staffing
duly heard. pattern.

Thus, while it is true that the appointment paper It must be recalled that the whole purpose of
received by petitioner Sinon on 30 August 1989 reorganization is that is it is a "process of
for the position of MAO had not conferred any restructuring the bureaucracy's organizational and
permanent status and was still subject to the functional set-up, to make it more viable in terms
following conditions attached to any appointment of the economy, efficiency, effectiveness and
in the civil service: make it more responsive to the needs of its public
Provided that there is no pending clientele as authorized by law." For as long as the
administrative case against the appointee, no CSC confines itself within the limits set out by law
pending protest against the appointment, nor and does not encroach upon the prerogatives
any decision by competent authority that will endowed to other authorities, this Court must
adversely affect the approval of the sustain the Commission.
appointment .

Hence, for as long as the re-evaluation of the 12. LUIS B. DOMINGO, petitioner,
qualification filed by Banan was pending, the vs. DEVELOPMENT BANK OF THE PHILIPPINES
petitioner cannot claim that he had been issued and CIVIL SERVICE COMMISSION, respondents.
with a "complete" appointment. Neither is there
any point in asserting that his appointment had FACTS: Petitioner was employed by DBP as Senior
"cured" whatever changes was subsequently Training and Career Development Officer on
recommended by the DARAB. permanent status from Feb. 1979 to Dec. 1986.

The fact that the DARAB is capable of re- On Dec. 3, 1986 EO 81, the Revised Charter of IBP
evaluating the findings of the Placement was passed authorizing the re-organization of
Committed only to find that Sinon is not qualified DBP. Pursuant to the Executive Order, DBP issued
should no be taken as a grave abuse of discretion. Board Resolution allowing the issuance of
Temporary Appointments to DBP Personnel in
We cannot subscribe to petitioner Sinon's order to fully implement the re-organization. Such
insistence that the public respondent CSC had Temporary Appointments issued had max. period
disregarded the findings of the Placement of 12 months. Petitioner was issued a Temporary
Committee. The truth is, these findings were re- Appointment on Jan. 2, 1987 for a period of 1 year
evaluated and the report after such re-evaluation which was renewed for another period up to
was submitted to and approved by the Secretary Nov.30, 1988.
of Agriculture. The CSC affirmed the findings of
the DARAB. Because of all the foregoing A Memorandum issued by the Final Review
circumstances, the jurisprudence cited by the Committee, Petitioner got a performance rating of
petitioner Sinon appears to be incorrect. Below Average by reason of which his
appointment was made lapse. Petitioner, together
Neither do we find in the Resolution of 8 February with certain Evangeline Javier filed with CSC a
1991, any statement by the CSC directing the joint verified complaint against DBP for illegal
appointment of the respondent Banan. Hence, dismissal.
there was no directive from the CSC that may be
misinterpreted as a usurpation of any appointing ISSUE: Does the validity of the re-organization
power. implemented by DBP violates petitioners right to
Security of Tenure?
Besides, in affirming the appointment of Banan as
recommended by the DARAB and approved by the RULING: NO. Petitioner contends that
Secretary of Agriculture, the CSC is only being government re-organization to terminate the
consistent with the law. Section 4 or R.A. 6656 services of government employees cannot be valid
mandates that officers and employees holding ground pursuant to the ruling of Dario vs. Mison.
permanent appointments shall be given Petitioner also maintains that average and below
preference for appointment to the new positions average efficiency ratings are not valid grounds
in the approved staffing pattern comparable to for his Termination from Service. He also contends
their former positions. Also, the term incumbent that he should be afforded a day in court pursuant
officer and the privileges generally accorded to to the requirements of procedural due process.
them would more aptly refer to Banan and not to
 Admininstrative Law 2017
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The Court held that this statement of petitioner is recommended her CESO Rank IV has been
incomplete and inaccurate, if not outright abolished, petitioner filed the petition at bench to
erroneous. Either petitioner misunderstood or he annul, among others, said resolution.
totally overlooked what was stated in the
aforecited decision which held that ISSUE: Whether or not the CSC given the authority
"reorganizations in this jurisdiction have been to abolish the office of the CESB
regarded as valid provided they are pursued in
good faith." HELD: NO. The petition is granted and Resolution
of the respondent Commission is hereby annulled
Clearly, from our pronouncements and set aside.
in Dario, reorganization is a recognized valid
ground for separation of civil service employees, The controlling fact is that the CESB was created
subject only to the condition that it be done in in PD No. 1 on September 1, 1974. It cannot be
good faith. No less than the Constitution itself in disputed, therefore, that as the CESB was created
Section 16 of the Transitory Provisions, together by law, it can only be abolished by the legislature.
with Sections 33 and 34 of Executive Order No. 81 This follows an unbroken stream of rulings that
and Section 9 of Republic Act No. 6656, support the creation and abolition of public offices is
this conclusion with the declaration that all those primarily a legislative function
not so appointed in the implementation of said
reorganization shall be deemed separated from In the petition at bench, the legislature has not
the service with the concomitant recognition of enacted any law authorizing the abolition of the
their entitlement to appropriate separation CESB. On the contrary, in all the General
benefits and/or retirement plans of the Appropriations Acts from 1975 to 1993, the
reorganized government agency. legislature has set aside funds for the operation of
CESB.
The facts of this case, particularly the evaluation
process adopted by DBP, bear out the existence of Respondent Commission, however, invokes
good faith in the course of reorganization. Section 17, Chapter 3, Subtitle A. Title I, Book V of
the Administrative Code of 1987 as the source of
its power to abolish the CESB. But as well pointed
13. G.R. No. 115863 March 31, 1995 out by petitioner and the Solicitor General,
AIDA D. EUGENIO, petitioner, vs. Section 17 must be read together with Section 16
CIVIL SERVICE COMMISSION, HON. TEOFISTO T. of the said Code which enumerates the offices
GUINGONA, JR. & HON. SALVADOR ENRIQUEZ, under the respondent Commission.
JR., respondents.
As read together, the inescapable conclusion is
FACTS: Eugenio is the Deputy Director of the that respondent Commissions power to
Philippine Nuclear Research Institute. She applied reorganize is limited to offices under its control as
for a Career Executive Service (CES) Eligibility and enumerated in Section 16.
a CESO rank,. She was given a CES eligibility and
was recommended to the President for a CESO From its inception, the CESB was intended to be
rank by the Career Executive Service Board. an autonomous entity, albeit administratively
attached to respondent Commission. As
Then respondent Civil Service Commission passed conceptualized by the Reorganization Committee
a Resolution which abolished the CESB, relying on the CESB shall be autonomous. It is expected to
the provisions of Section 17, Title I, Subtitle A. view the problem of building up executive
Book V of the Administrative Code of 1987 manpower in the government with a broad and
allegedly conferring on the Commission the power positive outlook.
and authority to effect changes in its organization
as the need arises. Said resolution states: The essential autonomous character of the CESB is
Pursuant thereto, the Career Executive Service not negated by its attachment to respondent
Board, shall now be known as the Office for Commission. By said attachment, CESB was not
Career Executive Service of the Civil Service made to fall within the control of respondent
Commission. Accordingly, the existing Commission. Under the Administrative Code of
personnel, budget, properties and equipment 1987, the purpose of attaching one functionally
of the Career Executive Service Board shall now inter-related government agency to another is to
form part of the Office for Career Executive attain policy and program coordination. This is
Service. clearly etched out in Section 38(3), Chapter 7,
Book IV of the aforecited Code, to wit:
Finding herself bereft of further administrative (3) Attachment. (a) This refers to the
relief as the Career Executive Service Board which lateral relationship between the department
 Admininstrative Law 2017
Case Digest Compilation 3
or its equivalent and attached agency or
corporation for purposes of policy and FACTS: Petitioners question the validity of the
program coordination. The coordination may order of then Secretary of Agriculture Hon. Carlos
be accomplished by having the department G. Dominguez which ordered: (1) the take-over by
represented in the governing board of the the Department of Agriculture of the
attached agency or corporation, either as management of the petitioner Kilusang Bayan sa
chairman or as a member, with or without Paglilingkod Ng Mga Magtitinda ng Bagong
voting rights, if this is permitted by the Pamilihang Bayan ng Muntilupa, Inc. (KBMBPM)
charter; having the attached corporation or pursuant to the Departments regulatory and
agency comply with a system of periodic supervisory powers under Section 8 of P.D. No.
reporting which shall reflect the progress of 175, as amended, and Section 4 of Executive
programs and projects; and having the Order No. 13, (2) the creation of a Management
department or its equivalent provide general Committee which shall assume the management
policies through its representative in the of KBMBPM upon receipt of the order, (3) the
board, which shall serve as the framework disbandment of the Board of Directors, and (4)
for the internal policies of the attached the turn over of all assets, properties and records
corporation or agency. of the KBMBPM the Management Committee.

The Order unerringly indicates that its basis is the

14. MAKATI STOCK EXCHANGE, INC., alleged petition of the general membership of the
petitioner, vs. SECURITIES AND EXCHANGE KBMBPM requesting the Department for
COMMISSION and MANILA STOCK EXCHANGE, assistance in the removal of the members of the
respondents. Board of Directors who were not elected by the
general membership of the cooperative and that
FACTS: This is an issue on resolution of the the ongoing financial and management audit of
Securities and Exchange Commission which would the Department of Agriculture auditors shows
deny the Makati Stock Exchange, Inc., permission that the management of the KBMBPM is not
to operate a stock exchange unless it agreed not operating that cooperative in accordance with
to list for trading on its board, securities already P.D. 175, LOI 23, the Circulars issued by
listed in the Manila Stock Exchange. DA/BACOD and the provisions and by-laws of
KBMBPM. It is also professed therein that the
Petitioner contended that the permission Order was issued by the Department in the
provided by law amounted to prohibition, and exercise of its regulatory and supervisory powers
that the commission has no power to impose it. under Section 8 of P.D. 175, as amended, and
Section 4 of Executive Order No. 113.
ISSUE: Whether the SEC has the authority to
promulgate the rule in question. ISSUE: Whether or not the Order issued by the
Secretary of Agriculture is illegal
RULING: No. It is fundamental that an
administrative officer has only such powers as are HELD: Regulation 34 of Letter of Implementation
expressly granted to him by the statute, and those No. 23 (implementing P.D. No. 175) provides the
necessarily implied in the exercise thereof. procedure for the removal of directors or officers
of cooperatives, thus:
The commission cites no provision of law
expressly supporting its rule against double listing. An elected officer, director or committee member
It suggests that the power is necessary for the may be removed by a vote of majority of the
execution of the functions vested in it. It argues members entitled to vote at an annual or special
that said rule was approved by the department general assembly. The person involved shall have
head before the War and it is not in conflict with an opportunity to be heard.
the provisions of securities and exchange act. The
approval of the department, by itself, adds no A substantially identical provision, found in
weight on judicial litigation. The commission Section 17, Article III of the KBMBPMs by-laws,
possesses no power to impose the condition of reads:
the rule which result in discrimination and Sec. 17. Removal of Directors and Committee
violation of constitutional rights. Members. Any elected director or
committee member may be removed from
office for cause by a majority vote of the
15. Kilusang Bayan sa Paglilingkod ng mga members in good standing present at the
Magtitinda ng Bagong Pamilihang Bayan ng annual or special general assembly called for
Muntinlupa, Inc. v. Dominguez the purpose after having been given the
G.R. No. 85439 January 13, 1992 opportunity to be heard at the assembly.
 Admininstrative Law 2017
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including rectification of violations, abuses
Under the same article are found the and other forms of mal-administration;
requirements for the holding of both the annual (4) review and pass upon budget proposals of
general assembly and a special general assembly. such agencies but may not increase or add to
them.
Indubitably then, there is an established
procedure for the removal of directors and The power to summarily disband the board of
officers of cooperatives. It is likewise manifest directors may not be inferred from any of the
that the right to due process is respected by the foregoing as both P.D. No. 175 and the by-laws of
express provision on the opportunity to be heard. the KBMBPM explicitly mandate the manner by
But even without said provision, petitioners which directors and officers are to be removed.
cannot be deprived of that right. The Secretary should have known better than to
disregard these procedures and rely on a mere
The procedure was not followed in this case. petition by the general membership of the
Respondent Secretary of Agriculture arrogated KBMBPM and an on-going audit by Department of
unto himself the power of the members of the Agriculture auditors in exercising a power which
KBMBPM who are authorized to vote to remove he does not have, expressly or impliedly.
the petitioning directors and officers. He cannot
take refuge under Section 8 of P.D. No. 175 which We cannot concede to the proposition of the
grants him authority to supervise and regulate all Office of the Solicitor General that the Secretarys
cooperatives. This section does not give him that power under paragraph (d), Section 8 of P.D. No.
right. 175 above quoted to suspend the operation or
cancel the registration of any cooperative includes
An administrative officer has only such powers as the milder authority of suspending officers and
are expressly granted to him and those necessarily calling for the election of new officers. Firstly,
implied in the exercise thereof. These powers neither suspension nor cancellation includes the
should not be extended by implication beyond take-over and ouster of incumbent directors and
what may to necessary for their just and officers, otherwise the law itself would have
reasonable execution. expressly so stated. Secondly, even granting that
the law intended such as postulated, there is the
Supervision and control include only the authority requirement of a hearing. None was conducted.
to:
(a) act directly whenever a specific function
is entrusted by law or regulation to a 16. JAWORSKI vs. PAGCOR
subordinate; G.R. No. 144463 - January 14, 2004
(b) direct the performance of duty; restrain
the commission of acts; FACTS: The Philippine Amusement and Gaming
(c) review, approve, reverse or modify acts Corporation (PAGCOR) is a government owned
and decisions of subordinate officials or and controlled corporation existing under PD No.
units; 1869 issued on July 11, 1983 by then President
(d) determine priorities in the execution of Ferdinand Marcos.
plans and programs; and
(e) prescribe standards, guidelines, plans and On March 31, 1998, PAGCORs board of directors
programs. approved an instrument denominated as Grant
of Authority and Agreement for the Operation of
Specifically, administrative supervision is limited Sports Betting and Internet Gaming, which
to the authority of the department or its granted Sports and Games and Entertainment
equivalent to: Corporation (SAGE) the authority to operate and
(1) generally oversee the operations of such maintain Sports Betting station in PAGCORs
agencies and insure that they are managed casino locations, and Internet Gaming facilities to
effectively, efficiently and economically but service local and international bettors, provided
without interference with day-to-day that to the satisfaction of PAGCOR, appropriate
activities; safeguards and procedures are established to
(2) require the submission of reports and ensure the integrity and fairness of the games.
cause the conduct of management audit,
performance evaluation and inspection to On September 1, 1998, PAGCOR, represented by
determine compliance with policies, its Chairperson, Alicia LI. Reyes, and SAGE,
standards and guidelines of the department; represented by its Chairman of the Board, Henry
(3) take such action as may be necessary for Sy, Jr., and its President, Antonio D. Lacdao,
the proper performance of official functions, executed the above-named document. Pursuant
to the authority granted by PAGCOR, SAGE
 Admininstrative Law 2017
Case Digest Compilation 3
commended its operations by conducting reserved for public control and administration,
gambling on the Internet on a trial-run basis, either by the government directly, or by public
making pre-paid cards and redemption of agents, under such conditions and regulations as
winnings available at various Bingo Bonanza the government may impose on them in the
outlets. interest of the public. It is Congress that
prescribes the conditions on which the grant of
Petitioner Senator Robert Jaworski, in his capacity the franchise may be made. Thus the manner of
as member of the Senate and Chairman of the granting the franchise, to whom it may be
Senate Committee on Games, Amusement and granted, the mode of conducting the business, the
Sports, filed the instant petition, praying that the charter and the quality of the service to be
grant of authority by PAGCOR in favor of SAGE be rendered and the duty of the grantee to the public
nullified. He maintains that PAGCOR committed in exercising the franchise are almost always
grave abuse of discretion amounting to lack or defined in clear and unequivocal language.
excess of jurisdiction when it authorized SAGE to
operate gambling on the internet. He contends While PAGCOR is allowed under its charter to
that PAGCOR is not authorized under its legislative enter into operators and/or management
franchise, PD No. 1869, to operate gambling on contracts, it is not allowed under the same charter
the internet for the simple reason that the said to relinquish or share its franchise, much less
decree could not have possibly contemplated grant a veritable franchise to another entity such
internet gambling since at the time of its as SAGE. PAGCOR cannot delegate its power in
enactment on July 11, 1983 the internet was yet view of the legal principle of delegata potestas
inexistent and gambling activities were confined delegare non potest, inasmuch as there is nothing
exclusively to real-space. in the charter to show that it has been expressly
authorized to do so. In Lim v. Pacquing, the Court
Further, he argues that the internet, being an clarified that since ADC has no franchise from
international network of computers, necessarily Congress to operate the jai-alai, it may not so
transcends the territorial jurisdiction of the operate even if it has a license or permit from the
Philippines, and the grant to SAGE of authority to City Mayor to operate the jai-alai in the City of
operate internet gambling contravenes the Manila. By the same token, SAGE has to obtain a
limitation of PAGCORs franchise, under Section separate legislative franchise and not ride on
14 of PD No. 1869 which provides: Place. The PAGCORs franchise if it were to legally operate
Corporation [i.e., PAGCOR] shall conduct gambling on-line Internet gambling.
activities or games of chance on land or water
within the territorial jurisdiction of the Republic of
the Philippines. x x x. 17. RADIO COMMUNICATIONS OF THE
PHILIPPINES, INC. (RCPI), petitioner, vs.
Moreover, according to petitioner, internet NATIONAL TELECOMMUNICATIONS
gambling does not fall under any of the categories COMMISSION (NTC) and JUAN A.
of the authorized gambling activities enumerated ALEGRE, respondents.
under Section 10 of PD No. 1869 which grants
PAGCOR the right, privilege and authority to FACTS: Private respondent Juan A. Alegre's wife,
operate and maintain gambling casinos, clubs, and Dr. Jimena Alegre, sent two (2) RUSH telegrams
other recreation or amusement places, sports through petitioner RCPI's facilities to his sister and
gaming pools, within the territorial jurisdiction of brother-in-law in Valencia, Bohol and another
the Republic of the Philippines. He contends that sister-in-law in Espiritu, Ilocos Norte. Both
internet gambling could not have been included telegrams did not reach their destinations on the
within the commonly accepted definition of expected dates. Private respondent filed a letter-
gambling casinos, clubs or other recreation complaint against the RCPI with the National
or amusement places as these terms refer to a Telecommunications Commission (NTC) for poor
physical structure in real-space where people service, with a request for the imposition of the
who intend to bet or gamble go and play games of appropriate punitive sanction against the
chance authorized by law. company.

ISSUE: Whether or not PAGCOR is allowed to Commission finds respondent administratively

contract any of its franchise to another entity such liable for deficient and inadequate service defined
as SAGE. under Section 19(a) of C.A. 146 and hereby
imposes the penalty of FINE.
RULING: No. A legislative franchise is a special
privilege granted by the state to corporations. It is ISSUE: Whether the NTC had the jurisdiction and
a privilege of public concern which cannot be impose fine against petitioner for failure to deliver
exercised at will and pleasure, but should be the letters to the addressee.
 Admininstrative Law 2017
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the petitions for legalization and awarding special
RULING: No. NTC has no jurisdiction to impose a permits to the private respondents. Citing Section
fine. Globe Wireless Ltd. vs. Public Service 4 of PD 101, the petitioners argue that neither the
Commission says so categorically. BOT chairman nor any member thereof had the
power, at the time the petitions were filed (i.e. in
Verily, Section 13 of Commonwealth Act No. 146, 1977), to legitimize the clandestine operations
as amended, otherwise known as the Public under PD 101 as such power had been limited to a
Service Act, vested in the Public Service period of six (6) months from and after the
Commission jurisdiction, supervision and control promulgation of the Decree on January 17, 1973.
over all public services and their franchises, They state that, thereafter, the power lapses and
equipment and other properties. becomes functus officio.

No substantial change has been brought about by ISSUE: Whether or not BOT can still legalize
Executive Order No. 546 invoked by the Solicitor clandestine and unlawful taxicab operations under
General's Office to bolster NTC's jurisdiction. The Section 1 of PD 101 despite the lapse of six (6)
Executive Order is not an explicit grant of power months after the promulgation of the Decree.
to impose administrative fines on public service
utilities, including telegraphic agencies, which RULING: Yes. A reading of Section 1, PD 101,
have failed to render adequate service to shows a grant of powers to the respondent Board
consumers. Neither has it expanded the coverage to issue provisional permits as a step towards the
of the supervisory and regulatory power of the legalization of colorum taxicab operations without
agency. There appears to be no alternative but to the alleged time limitation. There is nothing in
reiterate the settled doctrine in administrative law Section 4, cited by the petitioners, to suggest the
that: expiration of such powers six (6) months after
Too basic in administrative law to need citation promulgation of the Decree. Rather, it merely
of jurisprudence is the rule that jurisdiction and provides for the withdrawal of the States waiver
powers of administrative agencies, like of its right to punish said colorum operators for
respondent Commission, are limited to those their illegal acts. In other words, the cited section
expressly granted or necessarily implied from declares when the period of moratorium
those granted in the legislation creating such suspending the relentless drive to eliminate illegal
body; and any order without or beyond such operators shall end. Clearly, there is no
jurisdiction is void and ineffective. impediment to the Boards exercise of jurisdiction
under its broad powers under the Public Service
Act to issue certificates of public convenience to
18. MATIENZO VS. ABELLERA achieve the avowed purpose of PD 101 (Sec. 16a,
G.R. No. L-45839 - June 1, 1988 Public Service Act, Nov. 7, 1936).

FACTS: The petitioners and private respondents It is a settled principle of law that in determining
are all authorized taxicab operators in Metro whether a board or commission has a certain
Manila. The respondents, however, admittedly power, the authority given should be liberally
operate colorum or kabit taxicab units. On or construed in the light of the purposes for which it
about the second week of February, 1977, private was created, and that which is incidentally
respondents filed their petitions with the necessary to a full implementation of the
respondent Board of Transportation (BOT) for the legislative intent should be upheld as germane to
legalization of their unauthorized excess taxicab the law. Necessarily, too, where the end is
units citing PD 101, promulgated on January 17, required, the appropriate means are deemed
1973, to eradicate the harmful and unlawful given.
trade of clandestine operators, by replacing or
allowing them to become legitimate and
responsible operators. Within a matter of days, 19. G.R. No. 137489. May 29, 2002
the respondent Board promulgated its orders COOPERATIVE DEVELOPMENT AUTHORITY,
setting the application for hearing and granting petitioner, vs. DOLEFIL AGRARIAN REFORM
applicants provisional authority to operate their BENEFICIARIES COOPERATIVE, INC., ESMERALDO
excess taxicab units for which legalization was A. DUBLIN, ALICIA SAVAREZ, EDNA URETA, ET
sought. AL., respondents.

Opposing the applications and seeking to restrain FACTS: Certain members of the Dolefil Agrarian
the grant of provisional permits or authority, as Reform Beneficiaries Cooperative filed several
well as the annulment of permits already granted complaints alleging mismanagement and/or
under PD 101, the petitioners allege that the BOT misappropriation of funds of DARBCI by the then
acted without jurisdiction in taking cognizance of incumbent officers and members of the board of
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directors of the cooperative, some of whom are FACTS: The instant case stemmed from the filing
herein private respondents. Acting on the of the letter-complaint of Task Force Camarin
complaint, the Cooperative Development Dumpsite with the Laguna Lake Development
Authority (CDA) issued an order freezing the funds Authority seeking to stop the operation of the 8.6-
of DARBCI and creating a management committee hectare open garbage dumpsite in Tala Estate,
to manage the affairs of the said cooperative. Barangay Camarin, Caloocan City due to its
Private respondents questioned the jurisdiction of harmful effects on the health of the residents and
CDA before the RTC of South Cotabato. RTC then the possibility of pollution of the water content of
issued a TRO against CDA. Court of Appeals then the surrounding area. Laguna Lake Development
declared that the order of the CDA was NULL AND Authority (LLDA) issue a cease and desist order
VOID and of no legal force and effect. enjoining the dumping of garbage in Barangay
Camarin, Tala Estate, Caloocan City.
ISSUE: Whether or not the CDA it is vested with
quasi-judicial authority to adjudicate cooperative ISSUE: Whether the LLDA have the power and
disputes in view of its powers, functions and authority to issue a "cease and desist" order
responsibilities under Section 3 of Republic Act under Republic Act No. 4850 and its amendatory
No. 6939. laws.

HELD: No. Section 3(o) of R.A. No. 6939 and RULING: Yes. The cease and desist order issued by
Article 35(4) of R.A. 6938, may not be relied upon the LLDA requiring the City Government of
by the CDA as authority to resolve internal Caloocan to stop dumping its garbage in the
conflicts of cooperatives, they being general Camarin open dumpsite found by the LLDA to
provisions. Nevertheless, this does not preclude have been done in violation of Republic Act No.
the CDA from resolving the instant case. The 4850, as amended, and other relevant
assumption of jurisdiction by the CDA on matters environment laws, cannot be stamped as an
which partake of cooperative disputes is a logical, unauthorized exercise by the LLDA of injunctive
necessary and direct consequence of its authority powers. By its express terms, Republic Act No.
to register cooperatives. 4850, as amended by P.D. No. 813 and Executive
Order No. 927, series of 1983, authorizes the LLDA
It can be gleaned from the above-quoted to "make, alter or modify order requiring the
provision of R.A. No. 6939 that the authority of discontinuance or pollution." Section 4, par. (d)
the CDA is to discharge purely administrative explicitly authorizes the LLDA to make whatever
functions which consist of policy-making, order may be necessary in the exercise of its
registration, fiscal and technical assistance to jurisdiction.
cooperatives and implementation of cooperative
laws. Nowhere in the said law can it be found any Assuming arguendo that the authority to issue a
express grant to the CDA of authority to "cease and desist order" were not expressly
adjudicate cooperative disputes. conferred by law, there is jurisprudence enough
to the effect that the rule granting such authority
At most, Section 8 of the same law provides that need not necessarily be express. While it is a
"upon widest of either or both parties the fundamental rule that an administrative agency
Authority shall mediate and conciliate disputes has only such powers as are expressly granted to
with a cooperative or between cooperatives" it by law, it is likewise a settled rule that an
however, with a restriction "that if no mediation administrative agency has also such powers as are
or conciliation succeeds within 3 months from necessarily implied in the exercise of its express
request thereof, a certificate of non-resolution powers. 26 In the exercise, therefore, of its express
shall be issued by the commission prior to the powers under its charter as a regulatory and
filing of appropriate action before the proper quasi-judicial body with respect to pollution cases
courts". Being an administrative agency, the MA in the Laguna Lake region, the authority of the
has only such powers as are expressly granted to LLDA to issue a "cease and desist order" is,
it by law and those which are necessarily implied perforce, implied. Otherwise, it may well be
in the exercise thereof. reduced to a "toothless" paper agency.

The issuance, therefore, of the cease and desist

20. LAGUNA LAKE DEVELOPMENT order by the LLDA, as a practical matter of
AUTHORITY, petitioner, vs. COURT OF APPEALS, procedure under the circumstances of the case, is
HON. MANUEL JN. SERAPIO, Presiding Judge RTC, a proper exercise of its power and authority under
Branch 127, Caloocan City, HON. MACARIO A. its charter and its amendatory laws. Had the cease
ASISTIO, JR., City Mayor of Caloocan and/or THE and desist order issued by the LLDA been
CITY GOVERNMENT OF CALOOCAN,respondents. complied with by the City Government of
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Case Digest Compilation 3
Caloocan as it did in the first instance, no further agencies upon which the power shall be
legal steps would have been necessary. developed, nor can its substitutes the judgment,
wisdom, and patriotism and of any other body for
those to which alone the people have seen fit to
21. G.R. No. 4349 September 24, 1908 confide this sovereign trust.
THE UNITED STATES, plaintiff-appellee, vs.
ANICETO BARRIAS, defendant-appellant This doctrine is based on the ethical principle that
such a delegated power constitutes not only a
FACTS: In 1904, Congress, through a law (Act No. right but a duty to be performed by the delegate
1136), authorized the Collector of Customs to by the instrumentality of his own judgment acting
regulate the business of lighterage. Lighterage is a immediately upon the matter of legislation and
business involving the shipping of goods by use of not through the intervening mind of another. The
lighters or cascos (small ships/boats). The said law Collector cannot exercise a power exclusively
also provides that the Collector may promulgate lodged in Congress. Hence, Barrias should be
such rules to implement Act No. 1136. Further, penalized in accordance to the penalty being
Act No. 1136 provides that in case a fine is to be imposed by Act No. 1136.
imposed, it should not exceed one hundred
dollars. Pursuant to this, the Collector Having reached the conclusion that Act No. 1136
promulgated Circular No. 397. is valid, so far as sections 5 and 8 are concerned,
and is sufficient to sustain this prosecution, it is
Meanwhile. Aniceto Barrias was caught navigating unnecessary that we should pass on the questions
the Pasig River using a lighter which is manually discussed in the briefs as to the extend and
powered by bamboo poles (sagwan), Such is a validity of the other acts. The reference to them in
violation of Circular No. 397 because under said the complaint is not material, as we have
Circular, only steam powered ships should be frequently held that where an offense is correctly
allowed to navigate the Pasig River. However, in described in the complaint an additional reference
the information against Barrias, it was alleged that to a wrong statute is immaterial.
the imposable penalty against him should be a
fine not exceeding P500.00 at the discretion of the
court - this was pursuant to Circular No. 397 which 22. PEOPLE OF THE PHILIPPINES VS VERA
provides: For the violation of any pan of the G.R. No. L-45685 November 16 1937
foregoing regulations, the persons offending shall
be liable to a fine of not less than P5 and not more FACTS: Cu-Unjieng was convicted of criminal
than P500, in the discretion of the COWS. charges by the trial court of Manila. He filed a
motion for reconsideration and four motions for
Berries now challenged the validity of such new trial but all were denied. He then elevated to
provision of the Circular as it is entirely different the Supreme Court of United States for review,
from the penal provision of Act. No. 1136 which which was also denied. The SC denied the petition
only provided a penalty of not exceeding $100.00 subsequently filed by Cu-Unjieng for a motion for
(Note at that time the peso-dollar exchange was new trial and thereafter remanded the case to
more or less equal). the court of origin for execution of the judgment.
CFI of Manila referred the application for
ISSUE: Whether or not the penal provision in the probation of the Insular Probation Office which
Circular is valid. recommended denial of the same. Later, 7th
branch of CFI Manila set the petition for hearing.
HELD: No The Commissioner cannot impose a
different range of penalty different from that The Fiscal filed an opposition to the granting of
specified by Congress. If the Collector is allowed probation to Cu Unjieng, alleging, among other
to do so, then in effect, it is as if he is being things, that Act No. 4221, assuming that it has not
delegated the power to legislate penalties. One of been repealed by section 2 of Article XV of the
the settled maxims in constitutional law is that the Constitution, is nevertheless violative of section 1,
power conferred upon the legislature to make subsection (1), Article III of the Constitution
laws cannot be delegated by that department to guaranteeing equal protection of the laws. The
anybody or authority. Where the sovereign power private prosecution also filed a supplementary
of the State has located the authority, there it opposition, elaborating on the alleged
must remain: only by the constitutional agency unconstitutionality on Act No. 4221, as an undue
alone the laws must be made until the delegation of legislative power to the provincial
constitution itself is changed. The power to whose boards of several provinces (sec. 1, Art. VI,
judgment, wisdom and patriotism this high Constitution).
prerogative has been entrusted can not relieve
itself of the responsibility by choosing other
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ISSUE: Whether or not there is undue delegation national electrification and provided in detail
of powers. NAPOCORs tax exceptions. PD 380 specified that
NAPOCORs exemption includes all taxes, etc.
RULING: Yes. SC conclude that section 11 of Act imposed directly or indirectly. PD 938 dated
No. 4221 constitutes an improper and unlawful May 27, 1976 further amended the aforesaid
delegation of legislative authority to the provincial provision by integrating the tax exemption in
boards and is, for this reason, unconstitutional general terms under one paragraph.
and void.
ISSUE: Whether or not NPC has ceased to enjoy
The challenged section of Act No. 4221 in section indirect tax and duty exemption with the
11 which reads as follows: "This Act shall apply enactment of PD 938 on May 27, 1976 which
only in those provinces in which the respective amended PD 380 issued on January 11, 1974
provincial boards have provided for the salary of a
probation officer at rates not lower than those RULING: No, it is still exempt. NAPOCOR is a non-
now provided for provincial fiscals. Said probation profit public corporation created for the general
officer shall be appointed by the Secretary of good and welfare, and wholly owned by the
Justice and shall be subject to the direction of the government of the Republic of the Philippines.
Probation Office." From the very beginning of the corporations
existence, NAPOCOR enjoyed preferential tax
The provincial boards of the various provinces are treatment to enable the corporation to pay the
to determine for themselves, whether the indebtedness and obligation and effective
Probation Law shall apply to their provinces or not implementation of the policy enunciated in
at all. The applicability and application of the Section 1 of RA 6395.
Probation Act are entirely placed in the hands of
the provincial boards. If the provincial board does From the preamble of PD 938, it is evident that
not wish to have the Act applied in its province, all the provisions of PD 938 were not intended to be
that it has to do is to decline to appropriate the interpreted liberally so as to enhance the tax
needed amount for the salary of a probation exempt status of NAPOCOR.
officer.
It is recognized that the rule on strict
The clear policy of the law, as may be gleaned interpretation does not apply in the case of
from a careful examination of the whole context, exemptions in favor of government political
is to make the application of the system subdivision or instrumentality. In the case of
dependent entirely upon the affirmative action of property owned by the state or a city or other
the different provincial boards through public corporations, the express exception should
appropriation of the salaries for probation officers not be construed with the same degree of
at rates not lower than those provided for strictness that applies to exemptions contrary to
provincial fiscals. Without such action on the part the policy of the state, since as to such property
of the various boards, no probation officers would exception is the rule and taxation the exception.
be appointed by the Secretary of Justice to act in
the provinces. The Philippines is divided or
subdivided into provinces and it needs no 24. G.R. No. 76633 October 18, 1988
argument to show that if not one of the provinces EASTERN SHIPPING LINES, INC., petitioner, vs.
and this is the actual situation now PHILIPPINE OVERSEAS EMPLOYMENT
appropriate the necessary fund for the salary of a ADMINISTRATION (POEA), MINISTER OF LABOR
probation officer, probation under Act No. 4221 AND EMPLOYMENT, HEARING OFFICER ABDUL
would be illusory. There can be no probation BASAR and KATHLEEN D. SACO, respondents.
without a probation officer. Neither can there be
a probation officer without the probation system. FACTS: Vitaliano Saco was Chief Officer of the
M/V Eastern Polaris when he was killed in an
accident in Tokyo, Japan, March 15, 1985. His
23. MACEDA V MACARAIG widow sued for damages under Executive Order
G.R. No. 88291, May 31, 1991 No. 797 and Memorandum Circular No. 2 of the
POEA. The petitioner, as owner of the vessel,
FACTS: Commonwealth Act 120 created NAPOCOR argued that the complaint was cognizable not by
as a public corporation to undertake the the POEA but by the Social Security System and
development of hydraulic power and the should have been filed against the State Insurance
production of power from other sources. RA 358 Fund.
granted NAPOCOR tax and duty exemption
privileges. RA 6395 revised the charter of the
NAPOCOR, tasking it to carry out the policy of the
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Case Digest Compilation 3
The POEA nevertheless assumed jurisdiction and
after considering the position papers of the Rationale for Delegation of Legislative Power
parties ruled in favor of the complainant. The reason is the increasing complexity of the task
of government and the growing inability of the
The decision is challenged by the petitioner on the legislature to cope directly with the myriad
principal ground that the POEA had no jurisdiction problems demanding its attention. The growth of
over the case as the husband was not an overseas society has ramified its activities and created
worker. peculiar and sophisticated problems that the
legislature cannot be expected to reasonably
ISSUE: Whether or not the issuance of comprehend. Specialization even in legislation has
Memorandum Circular No. 2 is a violation of non- become necessary. Too many of the problems
delegation of powers attendant upon present-day undertakings, the
legislature may not have the competence to
HELD: SC held that there was valid delegation of provide the required direct and efficacious, not to
powers. say, specific solutions. These solutions may,
however, be expected from its delegates, who are
In questioning the validity of the memorandum supposed to be experts in the particular fields.
circular, Eastern Shipping Lines contended that
POEA was given no authority to promulgate the Power of Subordinate Legislation
regulation, and even with such authorization, the The reasons given above for the delegation of
regulation represents an exercise of legislative legislative powers in general are particularly
discretion which, under the principle, is not applicable to administrative bodies. With the
subject to delegation. proliferation of specialized activities and their
attendant peculiar problems, the national
GENERAL RULE: Non-delegation of powers; legislature has found it more and more necessary
exception to entrust to administrative agencies the authority
to issue rules to carry out the general provisions
It is true that legislative discretion as to the of the statute. This is called the power of
substantive contents of the law cannot be subordinate legislation.
delegated. What can be delegated is the
discretion to determine how the law may be With this power, administrative bodies may
enforced, not what the law shall be. The implement the broad policies laid down in statute
ascertainment of the latter subject is a by filling in the details which the Congress may
prerogative of the legislature. This prerogative not have the opportunity or competence to
cannot be abdicated or surrendered by the provide. Memorandum Circular No. 2 is one such
legislature to the delegate. administrative regulation.

Two Tests of Valid Delegation of Legislative

Power 25. DIONISIO M. RABOR, petitioner,
There are two accepted tests to determine vs. CIVIL SERVICE COMMISSION, respondent.
whether or not there is a valid delegation of
legislative power, viz, the completeness test and FACTS: Sometime in May 1991,[1] Alma D.
the sufficient standard test. Under the first test, Pagatpatan, an official in the Office of the Mayor
the law must be complete in all its terms and of Davao City, advised Dionisio M. Rabor to apply
conditions when it leaves the legislature such that for retirement, considering that he had already
when it reaches the delegate the only thing he will reached the age of sixty-eight (68) years and
have to do is to enforce it. Under the sufficient seven (7) months, with thirteen (13) years and
standard test, there must be adequate guidelines one (1) month of government service. Rabor
or stations in the law to map out the boundaries responded to this advice by exhibiting a
of the delegates authority and prevent the "Certificate of Membership"[2] issued by the
delegation from running riot. Government Service Insurance System ("GSIS")
and dated 12 May 1988. At the bottom of this
Both tests are intended to prevent a total "Certificate of Membership" is a typewritten
transference of legislative authority to the statement of the following tenor:
delegate, who is not allowed to step into the "Service extended to comply 15
shoes of the legislature and exercise a power years service reqts." This statement is followed by
essentially legislative. a non-legible initial with the following date
"2/28/91."
Xxx The delegation of legislative power has
become the rule and its non-delegation the
exception.
 Admininstrative Law 2017
Case Digest Compilation 3
In a letter dated 26 July 1991, Director Filemon B. regulations to implement a given legislation and
Cawad of CSRO-XI advised Davao City. Mayor effectuate its policies, for the reason that the
Rodrigo R. Duterte as follows: legislature often finds it impracticable (if not
impossible) to anticipate and provide for the
"Please be informed that the extension of services multifarious and complex situations that may be
of Mr. Rabor is contrary to M.C. No. 65 of the met in carrying the law into effect. All that is
Office of the President, the relevant portion of required is that the regulation should be
which is hereunder quoted: germane to the objects and purposes of the law;
'Officials and employees who have reached the that the regulation be not in contradiction with
compulsory retirement age of 65 years shall not it, but conform to the standards that the law
be retained in the service, except for extremely prescribes."
meritorious reasons in which case the retention
shall not exceed six (6) months.' IN VIEW The Civil Service Commission Memorandum
WHEREFORE, please be advised that the Circular No. 27 being in the nature of an
services of Mr. Dominador Rabor as Utility administrative regulation, must be governed by
Worker in that office, is already non- the principle that administrative regulations
extendible." adopted under legislative authority by a particular
department must be in harmony with the
Accordingly, on 8 August 1991, Mayor Duterte provisions of the law, and should be for the sole
furnished a copy of the 26 July 1991 letter of purpose of carrying into effect its general
Director Cawad to Rabor and advised him "to stop provisions (People v. Maceren, G.R. No. L-32166,
reporting for work effective August 16, 1991." October 18, 1977, 79 SCRA 450; Teoxon v.
Members of the Board of Administrators, L-25619,
Decision: We find it very difficult to suppose that June 30, 1970, 33 SCRA 585; Manuel v. General
the limitation of permissible extensions Auditing Office, L-28952, December 29, 1971, 42
of service after an employee has reached sixty- SCRA 660; Deluao v. Casteel, L-21906, August 29,
five (65) years of age has no reasonable 1969, 29 SCRA 350). x x x. The rule on limiting to
relationship or is not germane to the foregoing one year the extension of service of an employee
provisions of the present Civil Service Law. who has reached the compulsory retirement age
of 65 years, but has less than 15 years
"Worth pondering also are the points raised by of service under Civil Service Memorandum
the Civil Service Commission that extending Circular No. 27, S. 1990, cannot likewise be
the service of compulsory retirees for longer than accorded validity because it has no relationship or
one (1) year would: (1) give apremium to late- connection with any provision of P.D. 1146
comers in the government service and in effect supposed to be carried into effect. The rule was an
discriminate against those who enter the addition to or extension of the law, not merely a
service at a younger age; (2) delay the promotion mode of carrying it into effect. The Civil
of the latter and of next-in-rank employees; and Service Commission has no power to supply
(3) prejudice the chances for employment of perceived omissions in P.D. 1146."
qualified young civil service applicants who have
already passed the various government
examinations but must wait for jobs to be vacated 26. ALVADOR A. ARANETA vs. THE HON. MAGNO
by 'extendees' who have long passed the S. GATMAITAN.
mandatory retirement age but are enjoying
extension of their government service to FACTS: The President issued EO 22 - prohibiting
complete 15 years so they may qualify for old-age the use of trawls in San Miguel Bay, and the EO 66
pension." and 80 as amendments to EO 22, as a response for
the general clamor among the majority of people
Applying now the results of our reexamination living in the coastal towns of San Miguel Bay that
of the instant case, we believe and so hold the said resources of the area are in danger of
that Civil Service Resolution No. 92-594 dated 28 major depletion because of the effects of trawl
April 1992 dismissing the appeal of petitioner fishing.
Rabor and affirming the action of CSRO-XI Director
Cawad dated 26 July 1991, must be upheld and A group of Otter trawl operators took the matter
affirmed. to the court by filing a complaint for injunction
and/or declaratory relief with preliminary
"It is well established in this jurisdiction that, injunction with the Court of First Instance of
while the making of laws is a non-delegable Manila, docketed as Civil Case No. 24867, praying
activity that corresponds exclusively to Congress, that a writ of preliminary injunction be issued to
nevertheless, the latter may constitutionally restrain the Secretary of Agriculture and Natural
delegate authority and promulgate rules and Resources and the Director of Fisheries from
 Admininstrative Law 2017
Case Digest Compilation 3
enforcing said executive order; to declare the preliminary injunction directed against
same null and void, and for such other relief as Administrative Order No. 2 of petitioner for the
may be just and equitable in the premises. enforcement of the aforesaid statute, in a pending
suit in his court for certiorari and prohibition, filed
ISSUE: Whether Executive Orders Nos. 22, 66 and by the other respondent Teddy C. Galo assailing;
80 were valid, for the issuance thereof was not in the validity of such enactment as well as such
the exercise of legislative powers unduly administrative order.
delegated to the President.
Such administrative order, which took effect on
RULING: Yes. As already held by this Court, the April 17, 1970, has a provision on reflectors in
true distinction between delegation of the power effect reproducing what was set forth in the Act.
to legislate and the conferring of authority or Thus: "No motor vehicles of whatever style, kind,
discretion as to the execution of law consists in make, class or denomination shall be registered if
that the former necessary involves a discretion as not equipped with reflectors. Such reflectors shall
to what the law shall be, while in the latter the either be factory built-in-reflector commercial
authority or discretion as to its execution has to glass reflectors, reflection tape or luminous paint.
be exercised under and in pursuance of the law. The luminosity shall have an intensity to be
The first cannot be done; to the latter no valid maintained visible and clean at all times such that
objection can be made. if struck by a beam of light shall be visible 100
meters away at night." 35 Then came a section on
In the case of U. S. vs. Ang Tang Ho, 43 Phil. 1, We dimensions, placement and color.
also held, the power to delegate - the Legislature
cannot delegate legislative power to enact any As to dimensions the following is provided for:
law. If Act No. 2868 is a law unto itself, and it does "Glass reflectors Not less than 3 inches in
nothing more than to authorize the Governor- diameter or not less than 3 inches square;
General to make rules and regulations to carry it Reflectorized Tape At least 3 inches wide and
into effect, then the Legislature created the law. 12 inches long. The painted or taped area may be
There is no delegation of power and it is valid. On bigger at the discretion of the vehicle owner."
the other hand, if the act within itself does not Provision is then made as to how such reflectors
define a crime and is not complete, and some are to be "placed, installed, pasted or painted."
legislative act remains to be done to make it a law
or a crime, the doing of which is vested in the There is the further requirement that in addition
Governor-General, the act is delegation of to such reflectors there shall be installed, pasted
legislative power, is unconstitutional and void. or painted four reflectors on each side of the
motor vehicle parallel to those installed, pasted or
Congress provided under the Fisheries Act that a.) painted in front and those in the rear end of the
it is unlawful to take or catch fry or fish eggs in the body thereof. The color required of each
waters of the Philippines and b.) it authorizes Sec. reflectors, whether built-in, commercial glass,
of Agriculture and Natural Resources to provide reflectorized tape or reflectorized paint placed in
regulations/ restrictions as may be deemed the front part of any motor vehicle shall be amber
necessary. The Act was complete in itself and or yellow and those placed on the sides and in the
leaves it to the Sec. to carry into effect its rear shall all be red.
legislative intent. The President did nothing but
show an anxious regard for the welfare of the Penalties resulting from a violation thereof could
inhabitants and dispose of issues of general be imposed. Thus: "Non-compliance with the
concern which were in consonance and strict requirements contained in this Order shall be
conformity with law. sufficient cause to refuse registration of the motor
vehicle affected and if already registered, its
registration maybe suspended in pursuance of the
27. ROMEO F. EDU, in his capacity as Land provisions of Section 16 of RA 4136; Provided,
Transportation Commissioner, petitioner, vs. however, that in the case of the violation of
Honorable Vicente G. Ericta Section 1 (a) and (b) and paragraph (8) Section 3
hereof, a fine of not less than ten nor more than
FACTS: Petitioner Romeo F. Edu, the Land fifty pesos shall be imposed.
Transportation Commissioner, would have us rule
squarely on the constitutionality of the Reflector ISSUE: Whether or not Administrative Order No. 2
Law in this proceeding for certiorari and is contrary to the principle of non-delegation of
prohibition against respondent Judge, the legislative power
Honorable Vicente G. Ericta of the Court of First
Instance of Rizal, Quezon City Branch, to annul RULING: No. It is thus obvious that the challenged
and set aside his order for the issuance of a writ of statute is a legislation enacted under the police
 Admininstrative Law 2017
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power to promote public safety. a given legislation and effectuate its policies, for
the reason that the legislature often finds it
To determine whether or not there is an undue impracticable (if not impossible) to anticipate and
delegation of legislative power the inquiry must proved for the multifarious and complex
be directed to the scope and definiteness of the situations that may be met in carrying the law in
measure enacted. The legislature does not effect. All that is required is that the regulation
abdicate its functions when it describes what job should germane to the objects and purposes of
must be done, who is to do it, and what is the the law; that the regulation be not in
scope of his authority. For a complex economy, contradiction with it; but conform to the
that may indeed be the only way in which the standards that the law prescribes.
legislative process can go forward.
Delegation to Administrative Agencies. The
To avoid the taint of unlawful delegation, there legislature must declare a policy and fix a
must be a standard, which implies at the very standard in enacting a statute conferring
least that the legislature itself determines matters discretionary power upon an administrative
of principle and lay down fundamental policy. agency, but the agency may be authorized to "fill
Otherwise, the charge of complete abdication up the details" in promoting the purposes of the
may be hard to repel. A standard thus defines legislation and carrying it into effect. When the
legislative policy, marks its limits, its maps out its legislature laid down the fundamentals of a law, it
boundaries and specifies the public agency to may delegate to administrative agencies the
apply it. It indicates the circumstances under authority to exercise such legislative power as is
which the legislative command is to be effected. It necessary to carry into effect the general
is the criterion by which legislative purpose may legislative purpose. The rule-making power must
be carried out. Thereafter, the executive or be confined to details for regulating the mode of
administrative office designated may in pursuance proceedings to carry into effect the law as it has
of the above guidelines promulgate supplemental been enacted and it cannot be extended to amend
rules and regulations. or expand the statutory requirements or to
embrace matters not covered by the statute.
The standard may be either express or implied. If
the former, the non-delegation objection is easily
met. The standard though does not have to be 28. ABAKADA GURO PARTY LIST (formerly
spelled out specifically. It could be implied from AASJS) OFFICERS/MEMBERS SAMSON S.
the policy and purpose of the act considered as a ALCANTARA, ED VINCENT S. ALBANO, ROMEO R.
whole. In the Reflector Law, clearly the legislative ROBISO, RENE B. GOROSPE and EDWIN R.
objective is public safety. SANDOVAL, petitioners, vs.
HON. CESAR V. PURISIMA, in his capacity as
This is to adhere to the recognition given Secretary of Finance, HON. GUILLERMO L.
expression by Justice Laurel in a decision PARAYNO, JR., in his capacity as Commissioner of
announced not long after the Constitution came the Bureau of Internal Revenue, and HON.
into force and effect that the principle of non- ALBERTO D. LINA, in his Capacity as
delegation "has been made to adapt itself the Commissioner of Bureau of
complexities of modern governments, giving rise Customs, respondents.
to the adoption, within certain limits, of the
principle of "subordinate legislation" not only in FACTS: This petition for prohibition seeks to
the United States and England but in practically all prevent respondents from implementing and
modern governments." enforcing RA 9335 (Attrition Act of 2005).

Accordingly, with the growing complexity of RA 9335 was enacted to optimize the revenue-
modern life, the multiplication of the subjects of generation capability and collection of the Bureau
governmental regulation, and the increased of Internal Revenue (BIR) and the Bureau of
difficulty of administering the laws, there is a Customs (BOC). The law intends to encourage BIR
constantly growing tendency toward the and BOC officials and employees to exceed their
delegation of greater powers by the legislature revenue targets by providing a system of rewards
and toward the approval of the practice by the and sanctions through the creation of a Rewards
courts. and Incentives Fund (Fund) and a Revenue
Performance Evaluation Board (Board). It covers
It is well establish in this jurisdiction that, while all officials and employees of the BIR and the BOC
the making of laws is a non-delegable activity that with at least six months of service, regardless of
corresponds exclusively to Congress, nevertheless employment status
the latter may constitutionally delegate authority
to promulgate rules and regulations to implement
 Admininstrative Law 2017
Case Digest Compilation 3
Petitioners, invoking their right as taxpayers filed Thus, any post-enactment congressional measure
this petition challenging the constitutionality of such as this should be limited to scrutiny and
RA 9335, a tax reform legislation. They contend investigation. In particular, congressional
that, by establishing a system of rewards and oversight must be confined to the following:
incentives, the law "transform[s] the officials and (1) scrutiny based primarily on Congress' power of
employees of the BIR and the BOC into appropriation and the budget hearings conducted
mercenaries and bounty hunters" as they will do in connection with it, its power to ask heads of
their best only in consideration of such rewards. departments to appear before and be heard by
Petitioners also assail the creation of a either of its Houses on any matter pertaining to
congressional oversight committee on the their departments and its power of confirmation;
ground that it violates the doctrine of separation and
of powers, for it permits legislative participation (2) investigation and monitoring of the
in the implementation and enforcement of the implementation of laws pursuant to the power of
law. Congress to conduct inquiries in aid of legislation.

ISSUE: WON the joint congressional committee is Any action or step beyond that will undermine
valid and constitutional the separation of powers guaranteed by the
Constitution. Legislative vetoes fall in this class.
HELD: No. It is unconstitutional. In the case of Legislative veto is a statutory provision requiring
Macalintal, in the discussion of J. Puno, the power the President or an administrative agency to
of oversight embraces all activities undertaken present the proposed implementing rules and
by Congress to enhance its understanding of and regulations of a law to Congress which, by itself or
influence over the implementation of legislation through a committee formed by it, retains a
it has enacted. Clearly, oversight concerns post- "right" or "power" to approve or disapprove such
enactment measures undertaken by Congress: regulations before they take effect. As such, a
(a) to monitor bureaucratic compliance with legislative veto in the form of a congressional
program objectives, (b) to determine whether oversight committee is in the form of an inward-
agencies are properly administered, (c) to turning delegation designed to attach a
eliminate executive waste and dishonesty, (d) to congressional leash (other than through scrutiny
prevent executive usurpation of legislative and investigation) to an agency to which Congress
authority, and (d) to assess executive conformity has by law initially delegated broad powers. It
with the congressional perception of public radically changes the design or structure of the
interest. The power of oversight has been held to Constitution's diagram of power as it entrusts to
be intrinsic in the grant of legislative power itself Congress a direct role in enforcing, applying or
and integral to the checks and balances inherent implementing its own laws.
in a democratic system of government

With this backdrop, it is clear that congressional 29.

oversight is not unconstitutional per se, meaning,
it neither necessarily constitutes an encroachment
on the executive power to implement laws nor 30. BPI LEASING CORPORATION petitioner,
undermines the constitutional separation of THE HONORABLE COURT OF APPEALS, COURT OF
powers. Rather, it is integral to the checks and TAX APPEAL AND COMMISSIONER OF
balances inherent in a democratic system of INTERNAL REVENUE respondents.
government. It may in fact even enhance the
separation of powers as it prevents the over- FACTS: For the calendar year 1986, BPI Leasing
accumulation of power in the executive branch. Corporation, Inc. (BLC) paid the Commissioner of
Internal Revenue (CIR) a total of P1,139,041.49
However, to forestall the danger of congressional representing 4% "contractors percentage tax"
encroachment "beyond the legislative sphere," then imposed by Section 205 of the National
the Constitution imposes two basic and related Internal Revenue Code (NIRC), based on its gross
constraints on Congress. It may not vest itself, any rentals from equipment leasing for the said year
of its committees or its members with either amounting to P27,783,725.42.
executive or judicial power. And, when it exercises
its legislative power, it must follow the "single, On November 10, 1986, the CIR issued RR 19-86.
finely wrought and exhaustively considered, Section 6.2 thereof provided that finance and
procedures" specified under the Constitution leasing companies registered under Republic Act
including the procedure for enactment of laws 5980 shall be subject to gross receipt tax of 5%-
and presentment. 3%-1% on actual income earned. This means that
companies registered under Republic Act 5980,
such as BLC, are not liable for "contractors
 Admininstrative Law 2017
Case Digest Compilation 3
percentage tax" under Section 205 but are, it cannot be disputed that RR 19-86 was issued
instead, subject to "gross receipts tax" under pursuant to the rule-making power of the
Section 260 (now Section 122) of the NIRC. Since Secretary of Finance, thus making it legislative,
BLC had earlier paid the aforementioned and not interpretative as alleged by BLC.
"contractors percentage tax," it re-computed its
tax liabilities under the "gross receipts tax" and BLC further posits that, it is invalid for want of due
arrived at the amount of P361,924.44. BLC filed a process as no prior notice, publication and public
claim for a refund with the CIR for the amount of hearing attended the issuance thereof. To support
P777,117.05, representing the difference between its view, BLC cited CIR v. Fortune Tobacco, et
the P1,139,041.49 it had paid as "contractors al., wherein the Court nullified a revenue
percentage tax" and P361,924.44 it should have memorandum circular which reclassified certain
paid for "gross receipts tax." cigarettes and subjected them to a higher tax rate,
holding it invalid for lack of notice, publication and
The CTA dismissed the petition and denied BLCs public hearing. In this case, RR 19-86 would be
claim of refund and held that RR 19-86, may only beneficial to the taxpayers as they are subjected
be applied prospectively such that it only covers to lesser taxes. Petitioner, in fact, is invoking RR
all leases written on or after January 1, 1987. The 19-86 as the very basis of its claim for refund. If it
CTA ruled that, since BLCs rental income was all were invalid, then petitioner all the more has no
received prior to 1986, it follows that this was right to a refund.
derived from lease transactions prior to January 1,
1987, and hence, not covered by the RR. 2ND ISSUE The Court now resolves whether its
application should be prospective or retroactive.
A motion for reconsideration of the CTAs decision Statutes, including administrative rules and
was filed, but was denied. BLC then appealed the regulations, operate prospectively only, unless the
case to the Court of Appeals. BLC submits that the legislative intent to the contrary is manifest by
Court of Appeals and the CTA erred in not ruling express terms or by necessary implication. In the
that RR 19-86 may be applied retroactively so as present case, there is no indication that the RR
to allow BLCs claim for a refund of P777,117.05. may operate retroactively. Furthermore, there is
an express provision stating that it "shall take
Respondents, on the other hand, maintain that effect on January 1, 1987," and that it "shall be
the provision on the date of effectivity of RR 19-86 applicable to all leases written on or after the said
is clear and unequivocal, leaving no room for date." Thus, BLC is not in a position to invoke the
interpretation on its prospective application. provisions of RR 19-86 for lease rentals it received
prior to January 1, 1987.
ISSUES:
WON RR 19-86 is legislative or interpretative in 3RD ISSUE Tax refunds are in the nature of tax
nature. exemptions. As such, these are to be strictly
WON RR 19-86 is prospective or retroactive in construed against the person or entity claiming
nature. the exemption. The burden of proof is upon him
WON BPI failed to meet the quantum of evidence who claims the exemption and he must be able to
required in refund cases. justify his claim by the clearest grant under
Constitutional or statutory law, and he cannot be
RULE: permitted to rely upon vague
1ST ISSUE BLC attempts to convince the Court implications. Nothing that BLC has raised justifies
that RR 19-86 is legislative rather than a tax refund.
interpretative in character and hence, should
retroact to the date of effectivity of the law it
seeks to interpret. A legislative rule is in the 31. THE BOARD OF TRUSTEES OF THE
matter of subordinate legislation, designed to GOVERNMENT SERVICE INSURANCE SYSTEM and
implement a primary legislation by providing the WINSTON F. GARCIA, in his capacity as GSIS
details thereof. An interpretative rule, on the President and General Manager, Petitioners, v.
other hand, is designed to provide guidelines to ALBERT M. VELASCO and MARIO I. MOLINA,
the law which the administrative agency is in Respondents.
charge of enforcing. The Court finds the
questioned RR to be legislative in nature. Section FACTS: Petitioners charged respondents
1 of RR 19-86 plainly states that it was administratively with grave misconduct for their
promulgated pursuant to Section 277 of the NIRC alleged participation in the demonstration held by
(now Section 244), an express grant of authority some GSIS employees, and placed them under
to the Secretary of Finance to promulgate all preventive suspension for 90 days.
needful rules and regulations for the effective
enforcement of the provisions of the NIRC. Verily,
 Admininstrative Law 2017
Case Digest Compilation 3
Respondents asked that they be allowed to avail CESAR AZURIN, WEITONG LIM, MA. TERESA
of certain employee privileges but were denied TRINIDAD, MA. CARMELITA
because of their pending administrative case. FLORENTINO, Petitioners, vs. PHILIPPINE RACING
COMMISSION, MANILA JOCKEY CLUB, INC., and
Petitioner promulgated Resolutions 372 and 197 PHILIPPINE RACING CLUB, INC., Respondents.
disqualifying employees with pending
administrative case from step increment and FACTS: Aug. 11, 2004- Philracom issued a directive
other benefits and privileges. Respondents directing the Manila Jockey Club, Inc. (MJCI) and
claimed that the denial of the employee benefits Philippine Racing Club, Inc. (PRCI) to immediately
due them on the ground of their pending come up with their respective Clubs House Rule
administrative cases violates their right to be to address Equine Infectious Anemia (EIA)
presumed innocent and that they are being problem and to rid their facilities of horses
punished without hearing. infected with EIA.

In its 24 September 2004 Decision, the trial court Said directive was issued pursuant to
granted respondents petition for prohibition, Administrative Order No. 5 dated 28 March
restraining petitioners from implementing the 1994 by the Department of Agriculture declaring it
above resolutions. unlawful for any person, firm or corporation to
ship, drive, or transport horses from any locality or
ISSUE: Whether or not the resolution is valid. place except when accompanied by a certificate
issued by the authority of the Director of the
HELD: NO. Not all rules and regulations adopted Bureau of Animal Industry (BAI). In compliance
by every government agency are to be filed with with the directive, MJCI and PRCI ordered the
the UP Law Center. Only those of general or of owners of racehorses stable in their
permanent character are to be filed. establishments to submit the horses to blood
Interpretative regulations and those merely sampling and administration of the Coggins Test to
internal in nature, that is, regulating only the determine whether they are afflicted with the EIA
personnel of the Administrative agency and not virus. Subsequently, on 17 September 2004,
the public, need not be filed with the UP Law Philracom issued copies of the guidelines for the
Center. The assailed resolutions pertained only to monitoring and eradication of EIA.
internal rules meant to regulate the personnel of Petitioners refused to comply with the directives.
the GSIS. There was no need for the publication or Despite resistance from petitioners, the blood
filing of these resolutions with the UP Law Center. testing proceeded. The horses, whose owners
refused to comply were banned from the races,
If an employee who was suspended as a penalty were removed from the actual day of race,
will be treated like an employee on approved prohibited from renewing their licenses or evicted
vacation leave without pay, then it is only fair and from their stables.
reasonable to apply the same rules to an
employee who was preventively suspended, more Racehorse owners complained before the Office of
so considering that preventive suspension is not a the President (OP) which in turn issued a directive
penalty. An employee who was preventively instructing Philracom to investigate the matter.
suspended will still be entitled to step increment
after serving the time of his preventive suspension Petitioners filed for a TRO with the RTC- granted.
even if the pending administrative case against RTC however dismissed their petition for
him has not yet been resolved or dismissed. injunction because: 1. The issue is already moot
since almost all racehorse owners complied with
Also, the trial court was correct in declaring that the directives; and 2. It is a valid exercise of police
respondents had the right to be presumed power. Upon appeal, CA affirmed the RTC decision
innocent until proven guilty. in toto.

Therefore, after serving the period of their ISSUE: WON there is a valid delegation of
preventive suspension and without the legislative power to Philracom
administrative case being finally resolved,
respondents should have been reinstated and, RULING: YES. The validity of an administrative
after serving the same number of days of their issuance, such as the assailed guidelines, hinges
suspension, entitled to the grant of step on compliance with the following requisites:
increment.
(1) Its promulgation must be authorized by
the legislature
32. WILLIAM C. DAGAN, CARLOS H. REYES, (2) It must be promulgated in accordance
NARCISO MORALES, BONIFACIO MANTILLA, with the prescribed procedure;
 Admininstrative Law 2017
Case Digest Compilation 3
(3) It must be within the scope of the devices, drugs, stimulants or other means to
authority given by the legislature; enhance or diminish the speed of horse or
(4) It must be reasonable. materially harm their condition;

All the prescribed requisites are met as regards No delegation of rule-making power to MJCI and
the questioned issuances. Philracoms authority is PRCI
drawn from P.D. No. 420. The delegation made in The philtracom directive is merely instructive in
the presidential decree is valid. Philracom did not character. Compliance with the Philracoms
exceed its authority. And the issuances are fair directive is part of the mandate of PRCI and MJCI
and reasonable. under Sections 1[33] of R.A. No. 7953[34] and
Sections 1[35] and 2[36] of 8407.[As correctly
FIRST REQUISITE: proferred by MJCI, its duty is not derived from
The rule is that what has been delegated cannot the delegated authority of Philracom but arises
be delegated, or as expressed in the Latin from the franchise granted to them by Congress
maxim: potestas delegate non delegare
potest. This rule is based upon the ethical SECOND REQUISITE:
principle that such delegated power constitutes While it is conceded that the guidelines were
not only a right but a duty to be performed by the issued a month after Philracoms directive, this
delegate by the instrumentality of his own circumstance does not render the directive nor
judgment acting immediately upon the matter of the guidelines void. Philracom has every right to
legislation and not through the intervening mind issue directives to MJCI and PRCI with respect to
of another. This rule however admits of the conduct of horse racing, with or without
recognized exceptions such as the grant of rule- implementing guidelines.
making power to administrative agencies. They
have been granted by Congress with the authority Lack of publication:As a rule, the issuance of rules
to issue rules to regulate the implementation of a and regulations in the exercise of an
law entrusted to them. However, in every case of administrative agency of its quasi-legislative
permissible delegation, there must be a showing power does not require notice and hearing.
that the delegation itself is valid. It is valid only if InAbella, Jr. v. Civil Service Commission, this Court
the law (a) is complete in itself, setting forth had the occasion to rule that prior notice and
therein the policy to be executed, carried out, or hearing are not essential to the validity of rules
implemented by the delegate; and (b) fixes a or regulations issued in the exercise of quasi-
standardthe limits of which are sufficiently legislative powers since there is no
determinate and determinableto which the determination of past events or facts that have to
delegate must conform in the performance of his be established or ascertained.
functions.
THIRD REQUISITE:
P.D. No. 420 hurdles the tests of completeness The administrative body may not make rules and
and standards sufficiency. Complete: Philracom regulations which are inconsistent with the
was created for the purpose of carrying out the provisions of the Constitution or a statute,
declared policy in Section 1 which is to promote particularly the statute it is administering or which
and direct the accelerated development and created it, or which are in derogation of, or defeat,
continued growth of horse racing not only in the purpose of a statute.The assailed guidelines
pursuance of the sports development program but prescribe the procedure for monitoring and
also in order to insure the full exploitation of the eradicating EIA. These guidelines are in accord
sport as a source of revenue and employment. with Philracoms mandate under the law to
Philracom was granted exclusive jurisdiction and regulate the conduct of horse racing in the
control over every aspect of the conduct of horse country.
racing, including the framing and scheduling of
races, the construction and safety of race tracks, FOURTH REQUISITE:
and the security of racing. The assailed guidelines do not appear to be
unreasonable or discriminatory. In fact, all horses
Sufficient Standards: Section 9 provides for stabled at the MJCI and PRCIs premises
Specific Powers: To register race horses, horse underwent the same procedure. The guidelines
owners or associations or federations thereof, implemented were undoubtedly reasonable as
and to regulate the construction of race tracks they bear a reasonable relation to the purpose
and to grant permit for the holding of races; To sought to be accomplished, i.e., the complete
issue, suspend or revoke permits and riddance of horses infected with EIA.
licenses;order the suspension of any racing event
in case of violation of any law, ordinance or rules Horse-owners were also informed beforehand.
and regulations; To prohibit the use of improper The lease contract executed between petitioner
 Admininstrative Law 2017
Case Digest Compilation 3
and MJC contains a proviso reserving the right of authority granted by the legislature to the
the lessor, MJCI in this case, the right to determine administrative agency. It is required that the
whether a particular horse is a qualified horse. In regulation be germane to the objects and
addition, Philracoms rules and regulations on purposes of the law, and be not in contradiction
horse racing provide that horses must be free to, but in conformity with, the standards
from any contagious disease or illness in order to prescribed by law. They must conform to and be
be eligible as race entries. consistent with the provisions of the enabling
statute in order for such rule or regulation to be
valid. Constitutional and statutory provisions
33. SMART COMMUNICATIONS, INC. (SMART) control with respect to what rules and regulations
and PILIPINO TELEPHONE CORPORATION (PILTEL) may be promulgated by an administrative body,
vs. NATIONAL TELECOMMUNICATIONS as well as with respect to what fields are subject
COMMISSION to regulation by it. It may not make rules and
regulations which are inconsistent with the
FACTS: Pursuant to its rule-making and regulatory provisions of the Constitution or a statute,
powers, the National Telecommunications particularly the statute it is administering or which
Commission issued a Memorandum Circulars on created it, or which are in derogation of, or
the billing of telecommunications services and on defeat, the purpose of a statute. In case of conflict
measures in minimizing, if not eliminating, the between a statute and an administrative order,
incidence of stealing of cellular phone unit. Isla the former must prevail.
Communications Co., Inc. (IslaCom) and Pilipino
Telephone Corporation (PilTel) filed an action for Not to be confused with the quasi-legislative or
the declaration of nullity of the memorandum rule-making power of an administrative agency is
circulars, alleging that NTC has no jurisdiction to its quasi-judicial or administrative adjudicatory
regulate the sale of consumer goods as stated in power. This is the power to hear and determine
the subject memorandum circulars. Such questions of fact to which the legislative policy is
jurisdiction belongs to the DTI under the to apply and to decide in accordance with the
Consumer Acts of the Philippines. Soon standards laid down by the law itself in enforcing
thereafter, Globe Telecom, Inc. and Smart and administering the same law. The
Communications, Inc. filed a joint motion for leave administrative body exercises its quasi-judicial
to intervene and to admit complaint-in- power when it performs in a judicial manner an
intervention. This was granted by the trial court. act which is essentially of an executive or
administrative nature, where the power to act in
The trial court issued a TRO enjoining NTC from such manner is incidental to or reasonably
implementing the MCs. NTC filed a Motion to necessary for the performance of the executive or
Dismiss, on the ground that petitioners failed to administrative duty entrusted to it. In carrying out
exhaust administrative remedies. The defendant's their quasi-judicial functions, the administrative
MD is denied for lack of merit. NTC filed a MR but officers or bodies are required to investigate facts
was later on denied by the trial court. The CA, or ascertain the existence of facts, hold hearings,
upon NTC's filing of a special action for certiorari weigh evidence, and draw conclusions from them
and prohibition, reversed the decision of the as basis for their official action and exercise of
lower court. Hence this petition. discretion in a judicial nature.

ISSUE: W/N the CA erred in holding that the The doctrine of primary jurisdiction applies only
private respondents failed to exhaust where the administrative agency exercises its
administrative remedies? quasi-judicial or adjudicatory function. Thus, in
cases involving specialized disputes, the practice
RULING: Administrative agencies possess quasi- has been to refer the same to an administrative
legislative or rule-making powers and quasi- agency of special competence pursuant to the
judicial or administrative adjudicatory powers. doctrine of primary jurisdiction. The courts will
Quasi-legislative or rule-making power is the not determine a controversy involving a question
power to make rules and regulations which results which is within the jurisdiction of the
in delegated legislation that is within the confines administrative tribunal prior to the resolution of
of the granting statute and the doctrine of non- that question by the administrative tribunal,
delegability and separability of powers. where the question demands the exercise of
sound administrative discretion requiring the
The rules and regulations that administrative special knowledge, experience and services of the
agencies promulgate, which are the product of a administrative tribunal to determine technical and
delegated legislative power to create new and intricate matters of fact, and a uniformity of ruling
additional legal provisions that have the effect of is essential to comply with the premises of the
law, should be within the scope of the statutory regulatory statute administered.
 Admininstrative Law 2017
Case Digest Compilation 3
under RA 1616, less what he was entitled to under
The objective of the doctrine of primary RA 660.
jurisdiction is to guide a court in determining
whether it should refrain from exercising its Thereafter, COA issued a ruling disallowing in
jurisdiction until after an administrative agency audit all such claims for financial assistance
has determined some question or some aspect of under SSS Resolution No. 56 for the reason that
some question arising in the proceeding before it results in the increase of benefits beyond what
the court. It applies where the claim is originally is allowed under existing retirement laws.
cognizable in the courts and comes into play
whenever enforcement of the claim requires the ISSUES:
resolution of issues which, under a regulatory 1. Whether or not public respondent abused its
scheme, has been placed within the special discretion when it disallowed in audit
competence of an administrative body; in such petitioners claims for benefits under SSS
case, the judicial process is suspended pending Res. 56; and
referral of such issues to the administrative body 2. Whether or not SSS Resolution No. 56 is
for its view. valid.

However, where what is assailed is the validity or HELD:

constitutionality of a rule or regulation issued by 1. No. The Commission bears stress that the
the administrative agency in the performance of financial assistance contemplated under SSS
its quasi-legislative function, the regular courts Resolution No. 56 is granted to SSS employees
have jurisdiction to pass upon the same. The who opt to retire under R.A. No. 660. It is clear
determination of whether a specific rule or set of that petitioners applied for benefits under RA 660
rules issued by an administrative agency only because of the incentives offered by Res. 56,
contravenes the law or the constitution is within and that absent such incentives, they would have
the jurisdiction of the regular courts. Indeed, the without fail availed of RA 1616 instead. The
Constitution vests the power of judicial review or petition is dismissed for lack of merit, there having
the power to declare a law, treaty, international been no grave abuse of discretion on the part of
or executive agreement, presidential decree, respondent Commission.
order, instruction, ordinance, or regulation in the
courts, including the regional trial courts. This is 2. No. The said financial assistance partakes of
within the scope of judicial power, which includes the nature of a retirement benefit that has the
the authority of the courts to determine in an effect of modifying existing retirement laws
appropriate action the validity of the acts of the particularly R.A. No. 660. It is simply beyond
political departments. Judicial power includes the dispute that the SSS had no authority to maintain
duty of the courts of justice to settle actual and implement such retirement plan and in the
controversies involving rights which are legally guise of rule-making, legislate or amend laws or
demandable and enforceable, and to determine worse, render them nugatory. Hence, SSS
whether or not there has been a grave abuse of Resolution No. 56 is hereby illegal, void and no
discretion amounting to lack or excess of effect.
jurisdiction on the part of any branch or
instrumentality of the Government.
35. THE PEOPLE OF THE PHILIPPINE
ISLANDS, plaintiff-appellant, vs.
34. CONTE VS COA AUGUSTO A. SANTOS, defendant-appellee.

FACTS: Petitioners Avelina B. Conte and Leticia fACTS: Augusto Santos is an owner of fishing boat
Boiser-Palma were former employees of the Social Malabon II and III, who ordered his fishermen to
Security System (SSS) who retired from fish, loiter and anchor with the 3km U.S. Military
government service. They availed of compulsory jurisdiction near the island of Corregidor without
retirement benefits under Republic Act No. 660. In permission from Sec. of Agriculture and
addition, petitioners also claimed benefits granted Commerce. The fiscal filed against Augusto Santos
under SSS Resolution No. 56, series of 1971 that a violation of sec. 28 Admin. Order 2; provides
provides financial incentive and inducement to that boat licensed under Act 4003 are prohibited
SSS employees qualified to retire to avail of to gather, collect and catch fish and other sea
retirement benefits under RA 660 as amended, products, to anchor or loiter within the 3km
rather than the retirement benefits under RA jurisdiction of US military authorities. Sec 28
1616 as amended, by giving them financial Admin Order 2was issued by the Sec. Of
assistance equivalent in amount to the difference Agriculture & commerce by virtue of an authority
between what a retiree would have received vested in him by Sec 4 Act. 4003: that he shall
issue instructions, orders, rules and regulations to
 Admininstrative Law 2017
Case Digest Compilation 3
carry into effect provisions in Act 4003 and HELD: It was held by the Supreme Court, in an en
conduct proceedings under such provisions. banc decision, that as a rule, circular and
regulations of the Central Bank in question
ISSUES: prescribing a penalty for its violation should be
1. Whether or not Sec. of Agri & Commerce published before becoming effective. This is based
exercise an excess of regulatory power as vested on the theory that before the public is bound by
by Sec. 4 Act 4003. its contents especially its penal provisions, a law,
2. Whether or not Sec. Of Agri & Commerce can regulation or circular must first be published for
exercise legislative power in issuing an Admin the people to be officially and specifically
Order 2. informed of such contents including its penalties.
3. Whether or not Sec. 28 of Admin Order 2 is null
and void. Thus, the Supreme Court reversed the decision
appealed from and acquit the appellant, with
HELD: Act 4003 does not contain any conditional costs de oficio.
clause quoted in sec 28 AO 2 such clause supplies
a defect if the law. In Sec 4 Act 4003 he shall issue
from time to time instructions, orders, rules and 37. G.R. No. L-32166 October 18, 1977
regulations consistent with this the Act as may be THE PEOPLE OF THE PHILIPPINES, plaintiff-
necessary to carry into effect the provisions appellant, vs. HON. MAXIMO A. MACEREN CFI,
thereof and conduct of proceedings arising from Sta. Cruz, Laguna, JOSE BUENAVENTURA,
such provisions. Therefore such act constitutes GODOFREDO REYES, BENJAMIN REYES, NAZARIO
excess regulatory power conferred to him because AQUINO and CARLO DEL ROSARIO, accused-
it is beyond the scope provisions of Act 4003. appellees.

The Secretary has no power to legislate on the FACTS: This is a case involving the validity of a
matter because such power cannot be delegated 1967 regulation, penalizing electro fishing in fresh
to him which is exclusive for Phil. Legislature. water fisheries, promulgated by the Secretary of
Therefore sec 28 is null and void. Santos charges Agriculture and Natural Resources and the
does not constitute a crime or a violation of some Commissioner of Fisheries under the old Fisheries
criminal law within the jurisdiction of the civil Law and the law creating the Fisheries
courts, information DISMISSED. Commission.

On March 7, 1969 Jose Buenaventura, Godofredo

36. THE PEOPLE OF THE PHILIPPINES, plaintiff- Reyes, Benjamin Reyes, Nazario Aquino and
appellee, vs. QUE PO LAY, defendant-appellant. Carlito del Rosario were charged for having
Prudencio de Guzman for appellant. violated Fisheries Administrative Order No. 84-1.
It was alleged in the complaint that the five
FACTS: The appellant was in possession of foreign accused in the morning of March 1, 1969 resorted
exchange consisting of US dollars, US checks and to electro fishing in the waters of Barrio San Pablo
US money orders amounting to about $7000 but Norte, Sta. Cruz by "using their own motor banca,
failed to sell the same to the Central Bank as equipped with motor; with a generator colored
required under Circular No. 20. green with attached dynamo colored gray or
somewhat white; and electrocuting device locally
Circular No. 20 was issued in the year 1949 but known as sensored with a somewhat webbed
was published in the Official Gazette only on Nov. copper wire on the tip or other end of a bamboo
1951 after the act or omission imputed to Que Po pole with electric wire attachment which was
Lay. attached to the dynamo direct and with the use of
these devices or equipments catches fish thru
Que Po Lay appealed from the decision of the electric current, which destroy any aquatic
lower court finding him guilty of violating Central animals within its cuffed reach, to the detriment
Bank Circular No. 20 in connection with Sec 34 of and prejudice of the populace" (Criminal Case No.
RA 265 sentencing him to suffer 6 months 5429).
imprisonment, pay fine of P1,000 with subsidiary
imprisonment in case of insolvency, and to pay It is noteworthy that the Fisheries Law does not
the costs. expressly punish .electro fishing."
Notwithstanding the silence of the law, the
ISSUE: Whether or not publication of Circular 20 Secretary of Agriculture and Natural Resources,
in the Official Gazette is needed for it to become upon the recommendation of the Commissioner
effective and subject violators to corresponding of Fisheries, promulgated Fisheries Administrative
penalties. Order No. 84 (62 O.G. 1224), prohibiting electro
fishing in all Philippine waters.
 Admininstrative Law 2017
Case Digest Compilation 3
On June 28, 1967 the Secretary of Agriculture and carrying into effect its general provisions. By such
Natural Resources, upon the recommendation of regulations, of course, the law itself cannot be
the Fisheries Commission, issued Fisheries extended. An administrative agency cannot
Administrative Order No. 84-1, amending section amend an act of Congress.
2 of Administrative Order No. 84, by restricting
the ban against electro fishing to fresh water The rule-making power must be confined to
fisheries (63 O.G. 9963). details for regulating the mode or proceeding to
carry into effect the law as it his been enacted.
ISSUE: WON the Administrative Orders Nos. 84 The power cannot be extended to amending or
and 84-1 are valid. expanding the statutory requirements or to
embrace matters not covered by the statute.
RULING: NO. We are of the opinion that the Rules that subvert the statute cannot be
Secretary of Agriculture and Natural Resources sanctioned.
and the Commissioner of Fisheries exceeded their
authority in issuing Fisheries Administrative There is no question that the Secretary of
Orders Nos. 84 and 84-1 and that those orders are Agriculture and Natural Resources has rule-
not warranted under the Fisheries Commission, making powers. Section 4 of the Fisheries law
Republic Act No. 3512. provides that the Secretary "shall from time to
time issue instructions, orders, and regulations
The lawmaking body cannot delegate to an consistent" with that law, "as may be and proper
executive official the power to declare what acts to carry into effect the provisions thereof." That
should constitute an offense. It can authorize the power is now vested in the Secretary of Natural
issuance of regulations and the imposition of the Resources by on 7 of the Revised Fisheries law,
penalty provided for in the law itself. Presidential December No. 704.

An examination of the rule-making power of Section 4(h) of Republic Act No. 3512 empower
executive officials and administrative agencies the Co of Fisheries "to prepare and execute upon
and, in particular, of the Secretary of Agriculture the approval of the Secretary of Agriculture and
and Natural Resources (now Secretary of Natural Natural Resources, forms instructions, rules and
Resources) under the Fisheries Law sustains the regulations consistent with the purpose" of that
view that he ex his authority in penalizing electro enactment "and for the development of fisheries."
fishing by means of an administrative order. Section 79(B) of the Revised Administrative Code
provides that "the Department Head shall have
Administrative agent are clothed with rule-making the power to promulgate, whenever he may see
powers because the lawmaking body finds it fit do so, all rules, regulates, orders,
impracticable, if not impossible, to anticipate and memorandums, and other instructions, not
provide for the multifarious and complex contrary to law, to regulate the proper working
situations that may be encountered in enforcing and harmonious and efficient administration of
the law. All that is required is that the regulation each and all of the offices and dependencies of his
should be germane to the defects and purposes of Department, and for the strict enforcement and
the law and that it should conform to the proper execution of the laws relative to matters
standards that the law prescribes. The lawmaking under the jurisdiction of said Department; but
body cannot possibly provide for all the details in none of said rules or orders shall prescribe
the enforcement of a particular statute. penalties for the violation thereof, except as
expressly authorized by law."
The grant of the rule-making power to
administrative agencies is a relaxation of the Administrative regulations issued by a
principle of separation of powers and is an Department Head in conformity with law have the
exception to the non-delegation of legislative, force of law. As he exercises the rule-making
powers. Administrative regulations or power by delegation of the lawmaking body, it is a
"subordinate legislation calculated to promote the requisite that he should not transcend the bound
public interest are necessary because of "the demarcated by the statute for the exercise of that
growing complexity of modem life, the power; otherwise, he would be improperly
multiplication of the subjects of governmental exercising legislative power in his own right and
regulations, and the increased difficulty of not as a surrogate of the lawmaking body.
administering the law" .
Article 7 of the Civil Code embodies the basic
Administrative regulations adopted under principle that administrative or executive acts,
legislative authority by a particular department orders and regulations shall be valid only when
must be in harmony with the provisions of the they are not contrary to the laws or the
law, and should be for the sole purpose of Constitution."
 Admininstrative Law 2017
Case Digest Compilation 3
FACTS: Peralta was appointed Trade-Specialist II
"Rules and regulations when promulgated in on 25 September 1989 in the Department of
pursuance of the procedure or authority Trade and Industry (DTI). His appointment was
conferred upon the administrative agency by law, classified as "Reinstatement/Permanent".
partake of the nature of a statute, and compliance
therewith may be enforced by a penal sanction On 8 December 1989, petitioner received his
provided in the law. This is so because statutes initial salary, covering the period from 25
are usually couched in general terms, after September to 31 October 1989. Since he had no
expressing the policy, purposes, objectives, accumulated leave credits, DTI deducted from his
remedies and sanctions intended by the salary the amount corresponding to his absences
legislature. The details and the manner of carrying during the covered period.
out the law are oftentimes left to the
administrative agency entrusted with its Petitioner then sent a latter to Civil Service
enforcement. In this sense, it has been said that Commission (CSC) Chairman Patricia A. Sto. Tomas
rules and regulations are the product of a raising the following question:
delegated power to create new or additional legal Is an employee who was on leave of absence
provisions that have the effect of law." The rule or without pay on a day before or on a day time
regulation should be within the scope of the immediately preceding a Saturday, Sunday or
statutory authority granted by the legislature to Holiday, also considered on leave of absence
the administrative agency. without pay on such Saturday, Sunday or
Holiday?
In case of discrepancy between the basic law and
a rule or regulation issued to implement said law, Petitioner in his said letter to the CSC Chairman
the basic law prevails because said rule or argued that a reading of the General Leave Law as
regulation cannot go beyond the terms and contained in the Revised Administrative Code, as
provisions of the basic law. well as the old Civil Service Law (Republic Act No.
2260), the Civil Service Decree (Presidential
The rule is that the violation of a regulation Decree No. 807), and the Civil Service Rules and
prescribed by an executive officer of the Regulation fails to disclose a specific provision
government in conformity with and based upon a which supports the CSC rule at issue. That being
statute authorizing such regulation constitutes an the case, the petitioner contented that he cannot
offense and renders the offender liable to be deprived of his pay or salary corresponding to
punishment in accordance with the provisions of the intervening Saturdays, Sundays or Holidays (in
the law. the factual situation posed), and that the
withholding (or deduction) of the same is
In the instant case the regulation penalizing tantamount to a deprivation of property without
electro fishing is not strictly in accordance with due process of law.
the Fisheries Law, under which the regulation was
issued, because the law itself does not expressly On 25 May 1990, respondent Commission
punish electro fishing. promulgated Resolution No. 90-497, ruling that
the action of the DTI in deducting from the salary
As the said law does not penalize the act of petitioner, a part thereof corresponding to six
mentioned in section 28 of the administrative (6) days (September 29, 30, October 1, 20, 21, 22,
order, the promulgation of that provision by the 1989) is in order.
Secretary "is equivalent to legislating on the
matter, a power which has not been and cannot ISSUE: WON the CSC Resolution is valid.
be delegated to him, it being expressly reserved"
to the lawmaking body. "Such an act constitutes RULING: NO
not only an excess of the regulatory power The Civil Service Act of 1959 (R.A. No. 2260)
conferred upon the Secretary but also an exercise conferred upon the Commissioner of Civil Service
of a legislative power which he does not have, and the following powers and duties:
therefore" the said provision "is null and void and
without effect". Hence, the charge against Santos Sec. 16 (e) with the approval by the President
was dismiss. to prescribe, amend and enforce suitable rules
and regulations for carrying into effect the
provisions of this Civil Service Law, and the
38. G.R. No. 95832 August 10, 1992 rules prescribed pursuant to the provisions of
MAYNARD R. PERALTA, petitioner, vs. CIVIL this law shall become effective thirty days after
SERVICE COMMISSION, respondent. publication in the Official Gazette;
xxx xxx xxx
 Admininstrative Law 2017
Case Digest Compilation 3
(k) To perform other functions that properly Furthermore, before their amendment by R.A.
belong to a central personnel agency. 2625, Sections 284 and 285-A of the Revised
Administrative Code applied to all government
When an administrative or executive agency employee without any distinction. It follows that
renders an opinion or issues a statement of policy, the effect of the amendment similarly applies to
it merely interprets a pre-existing law; and the all employees enumerated in Sections 284 and
administrative interpretation of the law is at best 285-A, whether or not they have accumulated
advisory, for it is the courts that finally determine leave credits.
what the law means. 8 It has also been held that
interpretative regulations need not be published. As the questioned CSC policy is here declared
invalid, we are next confronted with the question
The Civil Service Commission in its here of what effect such invalidity will have. Will all
questioned Resolution No. 90-797 construed R.A. government employees on a monthly salary basis,
2625 as referring only to government employees deprived of their salaries corresponding to
who have earned leave credits against which their Saturdays, Sundays or legal holidays (as herein
absences may be charged with pay, as its letters petitioner was so deprived) since 12 February
speak only of leaves of absence with full pay. The 1965, be entitled to recover the amounts
respondent Commission ruled that a reading of corresponding to such non-working days?
R.A. 2625 does not show that a government
employee who is on leave of absence without pay The general rule vis-a-vis legislation is that an
on a day before or immediately preceding a unconstitutional act is not a law; it confers no
Saturday, Sunday or legal holiday is entitled to rights; it imposes no duties; it affords no
payment of his salary for said days. protection; it creates no office; it is in legal
contemplation as inoperative as though it had
Administrative construction, if we may repeat, is never been passed.
not necessarily binding upon the courts. Action of
an administrative agency may be disturbed or set WHEREFORE, SC Resolutions No. 90-497 and 90-
aside by the judicial department if there is an 797 are declared NULL and VOID. The respondent
error of law, or abuse of power or lack of Commission is directed to take the appropriate
jurisdiction or grave abuse of discretion clearly action so that petitioner shall be paid the amounts
conflicting with either the letter or the spirit of a previously but unlawfully deducted from his
legislative enactment. monthly salary as above indicated.

The construction by the respondent Commission

of R.A. 2625 is not in accordance with the 39. G.R. No. 102549 August 10, 1992
legislative intent. R.A. 2625 specifically provides EDWIN B. JAVELLANA, petitioner, vs.
that government employees are entitled to fifteen DEPARTMENT OF INTERIOR AND LOCAL
(15) days vacation leave of absence with full pay GOVERNMENT AND LUIS T. SANTOS, SECRETARY,
and fifteen (15) days sick leave with full pay, respondents.
exclusive of Saturdays, Sundays and Holidays in
both cases. FACTS: This petition for review on certiorari
involves the right of a public official to engage in
Thus, the law speaks of the granting of a right and the practice of his profession while employed in
the law does not provide for a distinction between the Government.
those who have accumulated leave credits and
those who have exhausted their leave credits in City Engineer Ernesto C. Divinagracia filed
order to enjoy such right. Ubi lex non distinguit Administrative Case No. C-10-90 against Javellana
nec nos distinguere debemus. The fact remains for: violation of Department of Local Government
that government employees, whether or not they (DLG) Memorandum Circular No. 80-38 dated
have accumulated leave credits, are not required June 10, 1980 in relation to DLG Memorandum
by law to work on Saturdays, Sundays and Circular No. 74-58.
Holidays and thus they can not be declared absent
on such non-working days. They cannot be or are Divinagracia's complaint alleged that Javellana, an
not considered absent on non-working days; they incumbent member of the City Council or
cannot and should not be deprived of their salary Sanggunian Panglungsod of Bago City, and a
corresponding to said non-working days just lawyer by profession, has continuously engaged in
because they were absent without pay on the day the practice of law without securing authority for
immediately prior to, or after said non-working that purpose from the Regional Director,
days. A different rule would constitute a Department of Local Government, as required by
deprivation of property without due process. DLG Memorandum Circular No. 80-38 in relation
to DLG Memorandum Circular No. 74-58 of the
 Admininstrative Law 2017
Case Digest Compilation 3
same department; that on July 8, 1989, Javellana,
as counsel for Antonio Javiero and Rolando Petitioner's contention that Section 90 of the
Catapang, filed a case against City Engineer Local Government Code of 1991 and DLG
Ernesto C. Divinagracia of Bago City for "Illegal Memorandum Circular No. 90-81 violate Article
Dismissal and Reinstatement with Damages" VIII, Section 5 of the Constitution is completely off
putting him in public ridicule; that Javellana also tangent. Neither the statute nor the circular
appeared as counsel in several criminal and civil trenches upon the Supreme Court's power and
cases in the city, without prior authority of the authority to prescribe rules on the practice of law.
DLG Regional Director. The Local Government Code and DLG
Memorandum Circular No. 90-81 simply prescribe
On September 21, 1991, Secretary Luis T. Santos rules of conduct for public officials to avoid
issued Memorandum Circular No. 90-81 setting conflicts of interest between the discharge of
forth guidelines for the practice of professions by their public duties and the private practice of their
local elective officials. profession, in those instances where the law
allows it.
On March 25, 1991, Javellana filed a Motion to
Dismiss the administrative case against him on the
ground mainly that DLG Memorandum Circulars 40. G.R. No. 119761 August 29, 1996
Nos. 80-38 and 90-81 are unconstitutional COMMISSIONER OF INTERNAL REVENUE,
because the Supreme Court has the sole and petitioner, vs. HON. COURT OF APPEALS, HON.
exclusive authority to regulate the practice of law. COURT OF TAX APPEALS and FORTUNE TOBACCO
CORPORATION, respondents.
ISSUE: WON DLG Circulars Nos. 80-30 and 90-81
are valid. FACTS: Fortune Tobacco Corporation ("Fortune
Tobacco") is engaged in the manufacture of
RULING: YES. As a matter of policy, this Court different brands of cigarettes. The Philippine
accords great respect to the decisions and/or Patent Office issued to the corporation separate
actions of administrative authorities not only certificates of trademark registration over
because of the doctrine of separation of powers "Champion," "Hope," and "More" cigarettes. In a
but also for their presumed knowledgeability and letter, dated 06 January 1987, of then
expertise in the enforcement of laws and Commissioner of Internal Revenue Bienvenido A.
regulations entrusted to their jurisdiction. With Tan, Jr., to Deputy Minister Ramon Diaz of the
respect to the present case, we find no grave Presidential Commission on Good Government,
abuse of discretion on the part of the respondent, "the initial position of the Commission was to
Department of Interior and Local Government classify 'Champion,' 'Hope,' and 'More' as foreign
(DILG), in issuing the questioned DLG Circulars brands since they were listed in the World
Nos. 80-30 and 90-81 and in denying petitioner's Tobacco Directory as belonging to foreign
motion to dismiss the administrative charge companies.
against him.
A bill, which later became Republic Act ("RA") No.
In the first place, complaints against public 7654, was enacted, on 10 June 1993, by the
officers and employees relating or incidental to legislature and signed into law, on 14 June 1993,
the performance of their duties are necessarily by the President of the Philippines. The new law
impressed with public interest for by express became effective on 03 July 1993. It amended
constitutional mandate, a public office is a public Section 142(c)(1) of the National Internal Revenue
trust. The complaint for illegal dismissal filed by Code ("NIRC").
Javiero and Catapang against City Engineer
Divinagracia is in effect a complaint against the About a month after the enactment and two (2)
City Government of Bago City, their real employer, days before the effectivity of RA 7654, Revenue
of which petitioner Javellana is a councilman. Memorandum Circular No. 37-93 ("RMC 37-93"),
Hence, judgment against City Engineer was issued by the BIR, with regard to reclassifying
Divinagracia would actually be a judgment against the brands of cigarettes.
the City Government. By serving as counsel for the
complaining employees and assisting them to It states that "HOPE," "MORE" and "CHAMPION"
prosecute their claims against City Engineer cigarettes, being manufactured by Fortune
Divinagracia, the petitioner violated Tobacco Corporation are hereby considered
Memorandum Circular No. 74-58 (in relation to locally manufactured cigarettes bearing a foreign
Section 7[b-2] of RA 6713) prohibiting a brand subject to the 55% ad valorem tax on
government official from engaging in the private cigarettes.
practice of his profession, if such practice would
represent interests adverse to the government.
 Admininstrative Law 2017
Case Digest Compilation 3
Upon filing by Fortune Tobacco of a Petiton for (3) In case of opposition, the rules on contested
Review to the Court of Tax Appeals, it ruled that cases shall be observed.
the Revenue Memorandum Circular No. 37-93 is In addition such rule must be published. On the
found to be defective, invalid and unenforceable, other hand, interpretative rules are designed to
such that when R.A. No. 7654 took effect on July provide guidelines to the law which the
3, 1993, the brands in question were not administrative agency is in charge of enforcing.
CURRENTLY CLASSIFIED AND TAXED at 55%
pursuant to Section 1142(c)(1) of the Tax Code, as It should be understandable that when an
amended by R.A. No. 7654 and were therefore administrative rule is merely interpretative in
still classified as other locally manufactured nature, its applicability needs nothing further than
cigarettes and taxed at 45% or 20% as the case its bare issuance for it gives no real consequence
may be. more than what the law itself has already
prescribed. When, upon the other hand, the
In fine, petitioner opines that RMC 37-93 is merely administrative rule goes beyond merely providing
an interpretative ruling of the BIR which can thus for the means that can facilitate or render least
become effective without any prior need for cumbersome the implementation of the law but
notice and hearing, nor publication, and that its substantially adds to or increases the burden of
issuance is not discriminatory since it would apply those governed, it behooves the agency to accord
under similar circumstances to all locally at least to those directly affected a chance to be
manufactured cigarettes. heard, and thereafter to be duly informed, before
that new issuance is given the force and effect of
ISSUE: WON the RMC 37-93 is valid. law.

RULING: NO. Petitioner stresses on the wide and A reading of RMC 37-93, particularly considering
ample authority of the BIR in the issuance of the circumstances under which it has been issued,
rulings for the effective implementation of the convinces us that the circular cannot be viewed
provisions of the National Internal Revenue Code. simply as a corrective measure (revoking in the
Let it be made clear that such authority of the process the previous holdings of past
Commissioner is not here doubted. Like any other Commissioners) or merely as construing Section
government agency, however, the CIR may not 142(c)(1) of the NIRC, as amended, but has, in fact
disregard legal requirements or applicable and most importantly, been made in order to
principles in the exercise of its quasi-legislative place "Hope Luxury," "Premium More" and
powers. "Champion" within the classification of locally
manufactured cigarettes bearing foreign brands
Let us first distinguish between two kinds of and to thereby have them covered by RA 7654.
administrative issuances a legislative rule and Specifically, the new law would have its
an interpretative rule. amendatory provisions applied to locally
manufactured cigarettes which at the time of its
In Misamis Oriental Association of Coco Traders, effectivity were not so classified as bearing foreign
Inc., vs. Department of Finance Secretary, the brands. Prior to the issuance of the questioned
Court expressed: circular, "Hope Luxury," "Premium More," and
. . . a legislative rule is in the nature of "Champion" cigarettes were in the category of
subordinate legislation, designed to implement locally manufactured cigarettes not bearing
a primary legislation by providing the details foreign brand subject to 45% ad valorem tax.
thereof . In the same way that laws must have Hence, without RMC 37-93, the enactment of RA
the benefit of public hearing, it is generally 7654, would have had no new tax rate
required that before a legislative rule is adopted consequence on private respondent's products.
there must be hearing. In this connection, the Evidently, in order to place "Hope Luxury,"
Administrative Code of 1987 provides: "Premium More," and "Champion" cigarettes
Public Participation. If not otherwise within the scope of the amendatory law and
required by law, an agency shall, as far as subject them to an increased tax rate, the now
practicable, publish or circulate notices of disputed RMC 37-93 had to be issued. In so doing,
proposed rules and afford interested parties the BIR not simply intrepreted the law; verily, it
the opportunity to submit their views prior to legislated under its quasi-legislative authority. The
the adoption of any rule. due observance of the requirements of notice, of
(2) In the fixing of rates, no rule or final order hearing, and of publication should not have been
shall be valid unless the proposed rates shall then ignored.
have been published in a newspaper of general
circulation at least two (2) weeks before the Not insignificantly, RMC 37-93 might have likewise
first hearing thereon. infringed on uniformity of taxation.
 Admininstrative Law 2017
Case Digest Compilation 3
Article VI, Section 28, paragraph 1, of the 1987
Constitution mandates taxation to be uniform and RULING: YES. There can be no doubt that there is
equitable. Uniformity requires that all subjects or a distinction between an administrative rule or
objects of taxation, similarly situated, are to be regulation and an administrative interpretation of
treated alike or put on equal footing both in a law whose enforcement is entrusted to an
privileges and liabilities. Thus, all taxable articles administrative body. When an administrative
or kinds of property of the same class must be agency promulgates rules and regulations, it
taxed at the same rate and the tax must operate "makes" a new law with the force and effect of a
with the same force and effect in every place valid law, while when it renders an opinion or
where the subject may be found. gives a statement of policy, it merely interprets a
pre-existing law.
Apparently, RMC 37-93 would only apply to "Hope
Luxury," "Premium More" and "Champion" Rules and regulations when promulgated in
cigarettes. In its decision, the CTA has keenly pursuance of the procedure or authority
noted that other cigarettes bearing foreign brands conferred upon the administrative agency by law,
have not been similarly included within the scope partake of the nature of a statute, and compliance
of the circular. therewith may be enforced by a penal sanction
provided in the law. This is so because statutes
All taken, the Court is convinced that the hastily are usually couched in general terms, after
promulgated RMC 37-93 has fallen short of a valid expressing the policy, purposes, objectives,
and effective administrative issuance. remedies and sanctions intended by the
legislature. The details and the manner of carrying
out the law are often times left to the
41. G.R. No. L-16704 March 17, 1962 administrative agency entrusted with its
VICTORIAS MILLING COMPANY, INC., petitioner enforcement. In this sense, it has been said that
appellant, vs. SOCIAL SECURITY COMMISSION, rules and regulations are the product of a
respondent-appellee. delegated power to create new or additional legal
provisions that have the effect of law.
FACTS: Circular No. 22 was issued by the Social
Security Commission, in view of the amendment A rule is binding on the courts so long as the
of the provisions of the Social Security Law procedure fixed for its promulgation is followed
defining the term "compensation" contained in and its scope is within the statutory authority
Section 8 (f) of Republic Act No. 1161. Republic granted by the legislature, even if the courts are
Act No. 1792 changed the definition of not in agreement with the policy stated therein or
"compensation". its innate wisdom (Davis, op. cit., 195-197). On the
other hand, administrative interpretation of the
It will thus be seen that whereas prior to the law is at best merely advisory, for it is the courts
amendment, bonuses, allowances, and overtime that finally determine what the law means.
pay given in addition to the regular or base pay
were expressly excluded, or exempted from the We find, therefore, that Circular No. 22 purports
definition of the term "compensation", such merely to advise employers-members of the
exemption or exclusion was deleted by the System of what, in the light of the amendment of
amendatory law. It thus became necessary for the the law, they should include in determining the
Social Security Commission to interpret the effect monthly compensation of their employees upon
of such deletion or elimination. Circular No. 22 which the social security contributions should be
was, therefore, issued to apprise those concerned based, and that such circular did not require
of the interpretation or understanding of the presidential approval and publication in the
Commission, of the law as amended, which it was Official Gazette for its effectivity.
its duty to enforce. It did not add any duty or
detail that was not already in the law as amended.
It merely stated and circularized the opinion of 42. G.R. No. 163448 March 08, 2005
the Commission as to how the law should be NATIONAL FOOD AUTHORITY (NFA), and
construed. JUANITO M. DAVID, in his capacity as Regional
Director, NFA Regional Office No. 1, San Juan, La
Victorias Milling Company questioned the validity Union, Petitioners, vs. MASADA SECURITY
of the circular for lack of authority on the part of AGENCY, INC., represented by its Acting
the Social Security Commission to promulgate it President & General Manager, COL. EDWIN S.
without the approval of the President and for lack ESPEJO (RET.), Respondents.
of publication in the Official Gazette.
FACTS: MASADA Security Agency, Inc., entered
ISSUE: WON Circular No. 22 is valid. into a one year contract to provide security
 Admininstrative Law 2017
Case Digest Compilation 3
services to the various offices, warehouses and made to pay the corresponding wage increase in
installations of NFA Region I. the overtime pay, night shift differential, holiday
and rest day pay, premium pay and other benefits
Meanwhile, the Regional Tripartite Wages and granted to workers. While basis of said
Productivity Board issued several wage orders remuneration and benefits is the statutory
mandating increases in the daily wage rate. minimum wage, the law cannot be unduly
Accordingly, MASADA Security Agency requested expanded as to include those not stated in the
NFA for a corresponding upward adjustment in subject provision.
the monthly contract rate consisting of the
increases in the daily minimum wage of the The general rule is that construction of a statute
security guards as well as the corresponding raise by an administrative agency charged with the task
in their overtime pay, holiday pay, 13th month of interpreting or applying the same is entitled to
pay, holiday and rest day pay. It also claimed great weight and respect. The Court, however, is
increases in Social Security System (SSS) and Pag- not bound to apply said rule where such executive
ibig premiums. interpretation, is clearly erroneous, or when there
is no ambiguity in the law interpreted, or when
NFA, however, granted the request only with the language of the words used is clear and plain,
respect to the increase in the daily wage by as in the case at bar. Besides, administrative
multiplying the amount of the mandated increase interpretations are at best advisory for it is the
by 30 days and denied the same with respect to Court that finally determines what the law means.
the adjustments in the other benefits and
remunerations computed on the basis of the daily Hence, the interpretation given by the labor
wage. agencies in the instant case which went as far as
supplementing what is otherwise not stated in the
MASADA sought the intervention of the Office of law cannot bind this Court.
the Regional Director, Regional Office No. I, La
Union, as Chairman of the Regional Tripartite
Wages and Productivity Board and the DOLE 43. G.R. No. 159694 January 27, 2006
Secretary. Despite the advisory5 of said offices COMMISSIONER OF INTERNAL REVENUE,
sustaining the claim of respondent that the Petitioner, vs. AZUCENA T. REYES, Respondent.
increase mandated by Republic Act No. 6727 (RA
6727) and the wage orders issued by the RTWPB is FACTS: On July 8, 1993, Maria C. Tancinco
not limited to the daily pay, NFA maintained its (decedent) died, leaving a 1,292 square-meter
stance that it is not liable to pay the residential lot and an old house thereon (subject
corresponding adjustments in the wage related property).
benefits of respondents security guards.
On February 12, 1998, the Chief, Assessment
ISSUE: WON the interpretation given by the labor Division, Bureau of Internal Revenue (BIR), issued
agencies that the wage orders issued by RTWPB is a preliminary assessment notice against the estate
not limited to the daily pay is binding to the Court. in the amount of P14,580,618.67. On May 10,
1998, the heirs of the decedent (heirs) received a
RULING: NO. The term "wage" as used in Section final estate tax assessment notice and a demand
6 of RA 6727 pertains to no other than the letter, both dated April 22, 1998, for the amount
"statutory minimum wage" which is defined under of P14,912,205.47, inclusive of surcharge and
the Rules Implementing RA 6727 as the lowest interest.
wage rate fixed by law that an employer can pay
his worker.26 The basis thereof under Section 7 of As the estate failed to pay its tax liability within
the same Rules is the normal working hours, the April 15, 2000 deadline, the Chief, Collection
which shall not exceed eight hours a day. Hence, Enforcement Division, BIR, notified [Reyes] on
the prescribed increases or the additional liability June 6, 2000 that the subject property would be
to be borne by the principal under Section 6 of RA sold at public auction on August 8, 2000.
6727 is the increment or amount added to the
remuneration of an employee for an 8-hour work. During the appeal to the CA, it said that Section
Expresio unius est exclusio alterius. 228 of the Tax Code and RR 12-99 were
mandatory and unequivocal in their requirement.
Where a statute, by its terms, is expressly limited The assessment notice and the demand letter
to certain matters, it may not, by interpretation or should have stated the facts and the law on which
construction, be extended to others.27 Since the they were based; otherwise, they were deemed
increase in wage referred to in Section 6 pertains void. The appellate court held that while
to the "statutory minimum wage" as defined administrative agencies, like the BIR, were not
herein, principals in service contracts cannot be bound by procedural requirements, they were still
 Admininstrative Law 2017
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required by law and equity to observe substantive taxpayer must be informed of both the law and
due process. The reason behind this requirement, facts on which the assessment was based. Thus,
said the CA, was to ensure that taxpayers would the CIR should have required the assessment
be duly apprised of -- and could effectively protest officers of the BIR to follow the clear mandate of
-- the basis of tax assessments against them. Since the new law. The old regulation governing the
the assessment and the demand were void, the issuance of estate tax assessment notices ran
proceedings emanating from them were likewise afoul of the rule that tax regulations -- old as they
void, and any order emanating from them could were -- should be in harmony with, and not
never attain finality. supplant or modify, the law.

Reyes argued that she, as well as the other heirs, It may be argued that the Tax Code provisions are
was not aware of the facts and the law on which not self-executory. It would be too wide a stretch
the assessment in question is based, after she had of the imagination, though, to still issue a
opted to propose several compromises on the regulation that would simply require tax officials
estate tax due, and even prematurely acting on to inform the taxpayer, in any manner, of the law
such proposal by paying 20% of the basic estate and the facts on which an assessment was based.
tax due. That requirement is neither difficult to make nor
its desired results hard to achieve.
ISSUE: WON CIRs assessment against the estate is
valid. Moreover, an administrative rule interpretive of a
statute, and not declarative of certain rights and
RULING: NO. Section 228 of the Tax Code corresponding obligations, is given retroactive
provides that, "The taxpayers shall be informed in effect as of the date of the effectivity of the
writing of the law and the facts on which the statute.17 RR 12-99 is one such rule. Being
assessment is made: otherwise, the assessment interpretive of the provisions of the Tax Code,
shall be void." even if it was issued only on September 6, 1999,
this regulation was to retroact to January 1, 1998 -
In the present case, Reyes was not informed in - a date prior to the issuance of the preliminary
writing of the law and the facts on which the assessment notice and demand letter.
assessment of estate taxes had been made. She
was merely notified of the findings by the CIR, Third, neither Section 229 nor RR 12-85 can
who had simply relied upon the provisions of prevail over Section 228 of the Tax Code.
former Section 229 prior to its amendment by
Republic Act (RA) No. 8424, otherwise known as No doubt, Section 228 has replaced Section 229.
the Tax Reform Act of 1997. The provision on protesting an assessment has
been amended. Furthermore, in case of
First, RA 8424 has already amended the provision discrepancy between the law as amended and its
of Section 229 on protesting an assessment. The implementing but old regulation, the former
old requirement of merely notifying the taxpayer necessarily prevails. Thus, between Section 228 of
of the CIRs findings was changed in 1998 to the Tax Code and the pertinent provisions of RR
informing the taxpayer of not only the law, but 12-85, the latter cannot stand because it cannot
also of the facts on which an assessment would be go beyond the provision of the law. The law must
made; otherwise, the assessment itself would be still be followed, even though the existing tax
invalid. regulation at that time provided for a different
procedure. The regulation then simply provided
Second, the non-retroactive application of that notice be sent to the respondent in the form
Revenue Regulation (RR) No. 12-99 is of no prescribed, and that no consequence would ensue
moment, considering that it merely implements for failure to comply with that form.
the law.
Fourth, petitioner violated the cardinal rule in
A tax regulation is promulgated by the finance administrative law that the taxpayer be accorded
secretary to implement the provisions of the Tax due process. Not only was the law here
Code.15 While it is desirable for the government disregarded, but no valid notice was sent, either.
authority or administrative agency to have one A void assessment bears no valid fruit.
immediately issued after a law is passed, the
absence of the regulation does not automatically The law imposes a substantive, not merely a
mean that the law itself would become formal, requirement. To proceed heedlessly with
inoperative. tax collection without first establishing a valid
assessment is evidently violative of the cardinal
At the time the pre-assessment notice was issued principle in administrative investigations: that
to Reyes, RA 8424 already stated that the taxpayers should be able to present their case and
 Admininstrative Law 2017
Case Digest Compilation 3
adduce supporting evidence. In the instant case,
respondent has not been informed of the basis of RULING: YES. Administrative proceedings are
the estate tax liability. Without complying with governed by the "substantial evidence rule."
the unequivocal mandate of first informing the Otherwise stated, a finding of guilt in an
taxpayer of the governments claim, there can be administrative case would have to be sustained
no deprivation of property, because no effective for as long as it is supported by substantial
protest can be made. evidence that the respondent has committed acts
stated in the complaint. Substantial evidence is
Fifth, the rule against estoppel does not apply. more than a mere scintilla of evidence. It means
Although the government cannot be estopped by such relevant evidence as a reasonable mind
the negligence or omission of its agents, the might accept as adequate to support a conclusion,
obligatory provision on protesting a tax even if other minds equally reasonable might
assessment cannot be rendered nugatory by a conceivably opine otherwise.
mere act of the CIR .
A review of the records of the case shows that the
factual findings of the Ombudsman upon which its
44. G.R. No. 175451 April 13, 2007 decision on petitioners administrative liability
ROSARIO L. DADULO, Petitioner, vs. THE HON. was based are supported by the evidence on
COURT OF APPEALS, OFFICE OF THE record. Petitioner and BSDO Edgar Saraga were
OMBUDSMAN, HON. FELICIANO BELMONTE, JR., identified as the persons who took the
in his capacity as City Mayor of Quezon City and construction materials. Respondents claim was
GLORIA PATANGUI, Respondents. corroborated by the testimony of her daughter
who saw the actual taking of the construction
FACTS: Private respondent Gloria Patangui materials. Moreover, respondent testified that the
(Patangui) filed before the Office of the materials taken from her premises were used in
Ombudsman an administrative complaint against the construction of the new barangay outpost.
petitioner Rosario Dadulo, Barangay Chairperson
of Barangay Payatas A, Quezon City; and against Findings of fact of the Office of the Ombudsman
Barangay Security Development Officers (BSDOs) are conclusive when supported by substantial
Edgar Saraga and Rogelio Dumadigo; and Deputy evidence and are accorded due respect and
BSDO Efren Pagabao. weight especially when they are affirmed by the
Court of Appeals. It is only when there is grave
Patangui declared in her Salaysay ng abuse of discretion by the Ombudsman that a
Pagrereklamo that, while she was out of their review of factual findings may aptly be made. In
house, petitioner and the said BSDOs stole several reviewing administrative decisions, it is beyond
galvanized iron sheets, lumber, and rolled plain the province of this Court to weigh the conflicting
iron sheets from her backyard. The incident was evidence, determine the credibility of witnesses,
purportedly witnessed by Patanguis two or otherwise substitute its judgment for that of
daughters who saw two men cart away the items the administrative agency with respect to the
upon the orders of a woman who was standing sufficiency of evidence. It is not the function of
nearby. A BSDO on duty told Patangui that it was this Court to analyze and weigh the parties
petitioner who ordered the seizure of the subject evidence all over again except when there is
construction materials. The same information was serious ground to believe that a possible
relayed to her by a certain Elsie Castillejos. The miscarriage of justice would thereby result. Our
following day, Patangui found out that some of task in an appeal by petition for review on
the galvanized iron sheets taken from her certiorari is limited, as a jurisdictional matter, to
backyard were utilized in building the new reviewing errors of law that might have been
barangay outpost. She recognized said items committed by the Court of Appeals.
because she is familiar with the campaign stickers
still posted on the galvanized iron sheets. Wherefore, the Decision of the CA in affirming the
Decision of the Office of the Ombudsman in which
Based on the affidavit of the parties, the Office of found petitioner Rosario Dadulo guilty of conduct
the Ombudsman rendered the assailed Decision prejudicial to the best interest of the service and
finding petitioner and BSDO Edgar Saraga guilty of imposed upon her the penalty of suspension for
conduct prejudicial to the best interest of the six months is AFFIRMED.
service and imposed upon them the penalty of six
months suspension.
45. G.R. No. 147096 January 15, 2002
ISSUE: WON there is substantial evidence to show REPUBLIC OF THE PHILIPPINES, represented by
that petitioner ordered the seizure of Patanguis NATIONAL TELECOMMUNICATIONS
construction materials. COMMISSION, petitioner, vs. EXPRESS
 Admininstrative Law 2017
Case Digest Compilation 3
TELECOMMUNICATION CO., INC. and BAYAN
TELECOMMUNICATIONS CO., INC., respondents. This Court has consistently held that the courts
will not interfere in matters which are addressed
FACTS: On December 29, 1992, Bayantel filed an to the sound discretion of the government agency
application with the National Telecommunications entrusted with the regulation of activities coming
Commission (NTC) for a Certificate of Public under the special and technical training and
Convenience or Necessity (CPCN) to install, knowledge of such agency. It has also been held
operate and maintain a digital Cellular Mobile that the exercise of administrative discretion is a
Telephone System/Service (CMTS) with prayer for policy decision and a matter that can best be
a Provisional Authority (PA). discharged by the government agency concerned,
and not by the courts.48 In Villanueva v. Court of
On May 3, 2000, the NTC issued an Order granting Appeals, it was held that findings of fact which are
in favor of Bayantel a provisional authority to supported by evidence and the conclusion of
operate CMTS service. Extelcom filed with the experts should not be disturbed. This was
Court of Appeals a petition for certiorari and reiterated in Metro Transit Organization, Inc. v.
prohibition, seeking the annulment of the Order National Labor Relations Commission, wherein it
reviving the application of Bayantel, the Order was ruled that factual findings of quasi-judicial
granting Bayantel a provisional authority to bodies which have acquired expertise because
construct, install, operate and maintain a their jurisdiction is confined to specific matters
nationwide CMTS, and Memorandum Circular No. are generally accorded not only respect but even
9-3-2000 allocating frequency bands to new public finality and are binding even upon the Supreme
telecommunication entities which are authorized Court if they are supported by substantial
to install, operate and maintain CMTS. evidence.

ISSUE: WON the provisional authority given by Administrative agencies are given a wide latitude
NTC to Bayantel is valid. in the evaluation of evidence and in the exercise
of its adjudicative functions. This latitude includes
RULING: YES. The NTC was created pursuant to the authority to take judicial notice of facts within
Executive Order No. 546, promulgated on July 23, its special competence.
1979. It assumed the functions formerly assigned In the case at bar, we find no reason to disturb the
to the Board of Communications and the factual findings of the NTC which formed the basis
Telecommunications Control Bureau, which were for awarding the provisional authority to Bayantel.
both abolished under the said Executive Order. As found by the NTC, Bayantel has been granted
Under Executive Order No. 125-A, issued in April several provisional and permanent authorities
1987, the NTC became an attached agency of the before to operate various telecommunications
Department of Transportation and services. Indeed, it was established that Bayantel
Communications. was the first company to comply with its
obligation to install local exchange lines pursuant
In the regulatory telecommunications industry, to E.O. 109 and R.A. 7925. In recognition of the
the NTC has the sole authority to issue Certificates same, the provisional authority awarded in favor
of Public Convenience and Necessity (CPCN) for of Bayantel to operate Local Exchange Services in
the installation, operation, and maintenance of Quezon City, Malabon, Valenzuela and the entire
communications facilities and services, radio Bicol region was made permanent and a CPCN for
communications systems, telephone and the said service was granted in its favor. Prima
telegraph systems. Such power includes the facie evidence was likewise found showing
authority to determine the areas of operations of Bayantel's legal, financial and technical capacity to
applicants for telecommunications services. undertake the proposed cellular mobile telephone
service.
the Court of Appeals erred in annulling the Order
of the NTC dated May 3, 2000, granting Bayantel a
provisional authority to install, operate and 46. G.R. No. L-49774 February 24, 1981
maintain CMTS. The general rule is that purely SAN MIGUEL CORPORATION (CAGAYAN COCA-
administrative and discretionary functions may COLA PLANT), petitioner, vs. Hon. AMADO G.
not be interfered with by the courts. INCIONG, Deputy Minister of Labor and
CAGAYAN COCA-COLA FREE WORKERS UNION,
The established exception to the rule is where the respondents.
issuing authority has gone beyond its statutory
authority, exercised unconstitutional powers or FACTS: On January 3, 1977, Cagayan Coca-Cola
clearly acted arbitrarily and without regard to his Free Workers Union, private respondent herein,
duty or with grave abuse of discretion. None of filed a complaint against San Miguel Corporation
these obtains in the case at bar. (Cagayan Coca-Cola Plant), petitioner herein,
 Admininstrative Law 2017
Case Digest Compilation 3
alleging failure or refusal of the latter to include in are excluded as part of the basic salary and in the
the computation of 13th- month pay such items as computation of the 13th-month pay.
sick, vacation or maternity leaves, premium for
work done on rest days and special holidays, While doubt may have been created by the prior
including pay for regular holidays and night Rules and Regulations Implementing Presidential
differentials. Decree 851 which defines basic salary to include
all remunerations or earnings paid by an employer
An Order was issued by Regional Office No. X to an employee, this cloud is dissipated in the
where the complaint was filed requiring herein later and more controlling Supplementary Rules
petitioner San Miguel Corporation (Cagayan Coca- and Regulations which categorically, exclude from
Cola Plant) "to pay the difference of whatever the definition of basic salary earnings and other
earnings and the amount actually received as 13th remunerations paid by employer to an employee.
month pay excluding overtime premium and A cursory perusal of the two sets of Rules
emergency cost of living allowance. " indicates that what has hitherto been the subject
of a broad inclusion is now a subject of broad
Herein petitioner appealed from that Order to the exclusion. The Supplementary rules and
Minister of Labor in whose behalf the Deputy Regulations cure the seeming tendency of the
Minister of Labor Amado Inciong issued an Order, former rules to include all remunerations and
affirming the Order of Regional Office No. X. earnings within the definition of basic salary.
WHEREFORE, the Orders of the Deputy Labor
Petitioner, contends that Presidential Decree 851 Minister are hereby set aside
speaks only of basic salary as basis for the
determination of the 13th-month pay; submits
that payments for sick, vacation, or maternity 47. G.R. No. L-19337 September 30, 1969
leaves, night differential pay, as well as premium ASTURIAS SUGAR CENTRAL, INC., petitioner, vs.
paid for work performed on rest days, special and COMMISSIONER OF CUSTOMS and COURT OF
regular holidays do not form part of the basic TAX APPEALS, respondents.
salary.
ISSUE: WON in the computation of the 13th- FACTS: Asturias Sugar Central, Inc. is engaged in
month pay under Presidential Decree 851, the production and milling of centrifugal sugar for
payments for sick, vacation or maternity leaves, exert, the sugar so produced being placed in
premium for work done on rest days and special containers known as jute bags. In 1957 it made
holidays, including pay for regular holidays and two importations of jute bags.
night differentials should be considered.
Of the 44,800 jute bags declared under entry 48,
RULING: NO. Under Presidential Decree 851 and only 8,647 were exported within one year from
its implementing rules, the basic salary of an the date of importation as containers of
employee is used as the basis in the centrifugal sugar. Of the 75,200 jute bags declared
determination of his 13th-month pay. Any under entry 243, only 25,000 were exported
compensations or remunerations which are within the said period of one year. In other words,
deemed not part of the basic pay is excluded as of the total number of imported jute bags only
basis in the computation of the mandatory bonus. 33,647 bags were exported within one year after
Under the Rules and Regulations Implementing their importation. The remaining 86,353 bags
Presidential Decree 851, the following were exported after the expiration of the one-
compensations are deemed not part of the basic year period but within three years from their
salary: importation.
a) Cost-of-living allowances granted pursuant to
Presidential Decree 525 and Letter of Due to the petitioner's failure to show proof of
Instructions No. 174; the exportation of the balance of 86,353 jute bags
b) Profit sharing payments; within one year from their importation, the
c) All allowances and monetary benefits which Collector of Customs of Iloilo, required it to pay
are not considered or integrated as part of the the amount of P28,629.42 representing the
regular basic salary of tile employee at the time customs duties and special import tax due
of the promulgation of the Decree on thereon, which amount the petitioner paid under
December 16, 1975. protest.

Under a later set of Supplementary Rules and ISSUE: WON the Commissioner of Customs is
Regulations Implementing Presidential Decree 851 vested, under the Philippine Tariff Act of 1909, the
issued by the then Labor Secretary Blas Ople, then applicable law, with discretion to extend the
overtime pay, earnings and other remunerations period of one year provided for in section 23 of
the Act.
 Admininstrative Law 2017
Case Digest Compilation 3
export imported containers to one year, without
RULING: NO. To implement the said section 23, extension, from the date of importation.
Customs Administrative Order 389 dated Otherwise, in enacting the Tariff and Customs
December 6, 1940 was promulgated, paragraph Code to supersede the Philippine Tariff Act of
XXVIII of which provides that "bonds for the re- 1909, Congress would have amended section 23
exportation of cylinders and other containers are of the latter law so as to overrule the long-
good for 12 months without extension," and standing view of the Commissioner of Customs
paragraph XXXI, that "bonds for customs brokers, that the one-year period therein mentioned is not
commercial samples, repairs and those filed to extendible.
guarantee the re-exportation of cylinders and
other containers are not extendible." Implied legislative approval by failure to change a
long-standing administrative construction is not
And insofar as jute bags as containers are essential to judicial respect for the construction
concerned, Customs Administrative Order 66 but is an element which greatly increases the
dated August 25, 1948 was issued, prescribing weight given such construction.
rules and regulations governing the importation,
exportation and identification thereof under The correctness of the interpretation given a
section 23 of the Philippine Tariff Act of 1909. statute by the agency charged with administering
its provision is indicated where it appears that
It will be noted that section 23 of the Philippine Congress, with full knowledge of the agency's
Tariff Act of 1909 and the superseding sec. 105(x) interpretation, has made significant additions to
of the Tariff and Customs Code, while fixing at one the statute without amending it to depart from
year the period within which the containers the agency's view.
therein mentioned must be exported, are silent as
to whether the said period may be extended. It Considering that the Bureau of Customs is the
was surely by reason of this silence that the office charged with implementing and enforcing
Bureau of Customs issued Administrative Orders the provisions of our Tariff and Customs Code, the
389 and 66, already adverted to, to eliminate construction placed by it thereon should be given
confusion and provide a guide as to how it shall controlling weight.
apply the law, and, more specifically, to make In applying the doctrine or principle of respect for
officially known its policy to consider the one-year administrative or practical construction, the
period mentioned in the law as non-extendible. courts often refer to several factors which may be
regarded as bases of the principle, as factors
Considering that the statutory provisions in leading the courts to give the principle controlling
question have not been the subject of previous weight in particular instances, or as independent
judicial interpretation, then the application of the rules in themselves. These factors are the respect
doctrine of "judicial respect for administrative due the governmental agencies charged with
construction," would, initially, be in order. administration, their competence, expertness,
experience, and informed judgment and the fact
Only where the court of last resort has not that they frequently are the drafters of the law
previously interpreted the statute is the rule they interpret; that the agency is the one on
applicable that courts will give consideration to which the legislature must rely to advise it as to
construction by administrative or executive the practical working out of the statute, and
departments of the state. practical application of the statute presents the
agency with unique opportunity and experiences
The formal or informal interpretation or practical for discovering deficiencies, inaccuracies, or
construction of an ambiguous or uncertain statute improvements in the statute;
or law by the executive department or other
agency charged with its administration or In the light of the foregoing, it is our considered
enforcement is entitled to consideration and the view that the one-year period prescribed in
highest respect from the courts, and must be section 23 of the Philippine Tariff Act of 1909 is
accorded appropriate weight in determining the non-extendible and compliance therewith is
meaning of the law, especially when the mandatory.
construction or interpretation is long continued
and uniform or is contemporaneous with the first
workings of the statute, or when the enactment of
the statute was suggested by such agency.

The administrative orders in question appear to

be in consonance with the intention of the
legislature to limit the period within which to
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