AMCOW Vs GCC

G.R. No. 207132. December 6, 2016.
ASSOCIATION OF MEDICAL CLINICS FOR OVERSEAS WORKERS,

INC. (AMCOW), represented herein by its President, DR. ROLANDO
VILLOTE, petitioner, vs. GCC APPROVED MEDICAL CENTERS
ASSOCIATION, INC. and CHRISTIAN CANGCO, respondents.
G.R. No. 207205. December 6, 2016. *
HON. ENRIQUE T. ONA, in his capacity as Secretary of the Department of

Health, petitioner, vs. GCC APPROVED MEDICAL CENTERS
ASSOCIATION, INC. and CHRISTIAN E. CANGCO, respondents.
Remedial Law; Special Civil Actions; Certiorari; Prohibition; Certiorari and

prohibition — now recognized and regulated as remedies under Rule 65 of
our Rules of Court — have been characterized as “supervisory writs” used
by superior courts to keep lower courts within the confines of their granted
jurisdictions, thereby ensuring orderliness in lower courts’ rulings.—The use
of petitions for certiorari and prohibition under Rule 65 is a remedy that
judiciaries have used long before our Rules of Court existed. As footnoted
below, these writs — now recognized and regulated as remedies under Rule
65 of our Rules of Court — have been characterized a “supervisory writs”
used by superior courts to keep lower courts within the confines of their
granted jurisdictions, thereby ensuring orderliness in lower courts’ rulings.
Same; Same; Same; Same; That no specific procedural rule has been
promulgated to enforce this “expanded” constitutional definition of judicial
power and because of the commonality of “grave abuse of discretion” as a
ground for review under Rule 65 and the courts’ expanded jurisdiction, the
Supreme Court (SC) — based on its power to relax its rules — allowed Rule
65 to be used as the medium for petitions invoking the courts’ expanded
jurisdiction based on its
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* EN BANC.
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VOL. 812, DECEMBER 6, 2016
453
Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

GCC Approved Medical Centers Association, Inc.
power to relax its Rules.—Meanwhile that no specific procedural rule has

been promulgated to enforce this “expanded” constitutional definition of
judicial power and because of the commonality of “grave abuse of
discretion” as a ground for review under Rule 65 and the courts expanded
jurisdiction, the Supreme Court — based on its power to relax its rules —
allowed Rule 65 to be used as the medium for petitions invoking the courts’
expanded jurisdiction based on its power to relax its Rules. This is however
an ad hoc approach that does not fully consider the accompanying
implications, among them, that Rule 65 is an essentially distinct remedy that
cannot simply be bodily lifted for application under the judicial power’s
expanded mode. The terms of Rule 65, too, are not fully aligned with what
the Court’s expanded jurisdiction signifies and requires.
Same; Jurisdiction; Expanded Jurisdiction; The Supreme Court’s (SC’s)

expanded jurisdiction — itself an exercise of judicial power — does not do
away with the actual case or controversy requirement in presenting a
constitutional issue, but effectively simplifies this requirement by merely
requiring a prima facie showing of grave abuse of discretion in the assailed
governmental act.—Basic in the exercise of judicial power whether under
the traditional or in the expanded setting — is the presence of an actual case
or controversy. For a dispute to be justiciable, a legally demandable and
enforceable right must exist as basis, and must be shown to have been
violated. Whether a case actually exists depends on the pleaded allegations,
as affected by the elements of standing (translated in civil actions as the
status of being a “real party-in-interest,” in criminal actions as “offended
party” and in special proceedings as “interested party”), ripeness,
prematurity, and the moot and academic principle that likewise interact with
one another. These elements and their interactions are discussed m greater
detail below. The Court’s expanded jurisdiction — itself an exercise of
judicial power — does not do away with the actual case or controversy
requirement in presenting a constitutional issue, but effectively simplifies
this requirement by merely requiring a prima facie showing of grave abuse
of discretion in the assailed governmental act.
Same; Same; Same; A basic feature of the expanded jurisdiction under the
constitutional definition of judicial power, is the authority
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SUPREME COURT REPORTS ANNOTATED

and command for the courts to act on petitions involving the commission by
any branch or instrumentality of government of grave abuse of discretion
amounting to lack or excess of jurisdiction.—A basic feature of the
expanded jurisdiction under the constitutional definition of judicial power, is
the authority and command for the courts to act on petitions involving the
commission by any branch or instrumentality of government of grave abuse
of discretion amounting to lack or excess of jurisdiction. This command
distinctly contrasts with the terms of Rule 65 which confines court certiorari
action solely to the review of judicial and quasi--judicial acts. These
differing features create very basic distinctions that must necessarily result
in differences in the application of remedies. While actions by lower courts
do not pose a significant problem because they are necessarily acting
judicially when they adjudicate, a critical question comes up for the court
acting on certiorari petitions when governmental agencies are involved —
under what capacity does the agency act? This is a critical question as the
circumstances of the present case show. When the government entity acts
quasi-judicially, the petition for certiorari challenging the action falls under
Rule 65; in other instances, the petition must be filed based on the courts’
expanded jurisdiction.
Same; Same; Same; Another distinction relates to the cited ground of a

certiorari petition under Rule 65 which speaks of lack or excess of
jurisdiction or grave abuse of discretion amounting to lack or excess of
jurisdiction, as against the remedy under the courts’ expanded jurisdiction
which expressly only mentions grave abuse of discretion amounting to lack
or excess of jurisdiction.—Another distinction, a seeming one as explained
below, relates to the cited ground of a certiorari petition under Rule 65
which speaks of lack or excess of jurisdiction or grave abuse of discretion
amounting to lack or excess of jurisdiction, as against the remedy under the
courts’ expanded jurisdiction which expressly only mentions grave abuse of
discretion amounting to lack or excess of jurisdiction. This distinction is
apparently not legally significant when it is considered that action outside of
or in excess of the granted authority necessarily involves action with grave
abuse of discretion: no discretion is allowed in areas outside of an agency’s
granted authority so that any such action would be a gravely abusive
exercise of power. The constitutional grant of power, too, pointedly
addresses grave abuse of discretion when it amounts to lack or excess of
jurisdiction, thus establish-
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ing that the presence of jurisdiction is the critical element; failure to comply
with this requirement necessarily leads to the certiorari petition’s immediate
dismissal.
Same; Same; Same; Where grave abuse of discretion is alleged to be
involved, the expanded jurisdiction is brought into play based on the express
wording of the Constitution and constitutional implications may be involved
(such as grave abuse of discretion because of plain oppression or
discrimination), but this must likewise be filed with the lowest court of
concurrent jurisdiction, unless the court highest in the hierarchy grants
exemption.—Where grave abuse of discretion is alleged to be involved, the
expanded jurisdiction is brought into play based on the express wording of
the Constitution and constitutional implications may be involved (such as
grave abuse of discretion because of plain oppression or discrimination), but
this must likewise be filed with the lowest court of concurrent jurisdiction,
unless the court highest in the hierarchy grants exemption. Note that in the
absence of express rules, it is only the highest court, the Supreme Court, that
can only grant exemptions. From these perspectives, the use of grave abuse
of discretion can spell the difference in deciding whether a case filed directly
with the Supreme Court has been properly filed.
Same; Exhaustion of Administrative Remedies; In every case, remedies

within the agency’s administrative process must be exhausted before
external remedies can be applied.—In every case, remedies within the
agency’s administrative process must be exhausted before external remedies
can be applied. Thus, even if a governmental entity may have committed a
grave abuse of discretion, litigants should, as a rule, first ask reconsideration
from the body itself, or a review thereof before the agency concerned. This
step ensures that by the time the grave abuse of discretion issue reaches the
court, the administrative agency concerned would have fully exercised its
jurisdiction and the court can focus its attention on the questions of law
presented before it.
Same; Same; The failure to exhaust administrative remedies affects the

ripeness to adjudicate the constitutionality of a governmental act, which in
turn affects the existence of the need for an actual case or controversy for the
courts to exercise their power of judicial re-
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view.—The failure to exhaust administrative remedies affects the ripeness to

adjudicate the constitutionality of a governmental act, which in turn affects
the existence of the need for an actual case or controversy for the courts to
exercise their power of judicial review. The need for ripeness — an aspect of
the timing of a case or controversy does not change regardless of whether
the issue of constitutionality reaches the Court through the traditional means,
or through the Court’s expanded jurisdiction. In fact, separately from
ripeness, one other concept pertaining to judicial review is intrinsically
connected to it; the concept of a case being moot and academic.
Same; Jurisdiction; Expanded Jurisdiction; Existing Supreme Court (SC)

rulings in the exercise of its expanded jurisdiction have allowed the direct
filing of petitions for certiorari and prohibition with the Court to question,
for grave abuse of discretion, actions or the exercise of a function that
violate the Constitution.—Under the traditional mode, plaintiffs question the
constitutionality of a governmental action through the cases they file before
the lower courts; the defendants may likewise do so when they interpose the
defense of unconstitutionality of the law under which they are being sued. A
petition for declaratory relief may also be used to question the
constitutionality or application of a legislative (or quasi-legislative) act
before the court. For quasi-judicial actions, on the other hand, certiorari is an
available remedy, as acts or exercise of functions that violate the
Constitution are necessarily committed with grave abuse of discretion for
being acts undertaken outside the contemplation of the Constitution. Under
both remedies, the petitioners should comply with the traditional
requirements of judicial review, discussed below. In both cases, the
decisions of these courts reach the Court through an appeal by certiorari
under Rule 45. In contrast, existing Court rulings in the exercise of its
expanded jurisdiction have allowed the direct filing of petitions for certiorari
and prohibition with the Court to question, for grave abuse of discretion,
actions or the exercise of a function that violate the Constitution. The
governmental action may be questioned regardless of whether it is quasi--
judicial, quasi-legislative, or administrative in nature. The Court’s expanded
jurisdiction does not do away with the actual case or controversy
requirement for presenting a constitutional issue, but effectively simplifies
this requirement by merely
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requiring a prima facie showing of grave abuse of discretion in the exercise

of the governmental act.
Judicial Review; In constitutional cases where the question of

constitutionality of a governmental action is raised, the judicial power the
courts exercise is likewise identified as the power of judicial review — the
power to review the constitutionality of the actions of other branches of
government.—In constitutional cases where the question of constitutionality
of a governmental action is raised, the judicial power the courts exercise is
likewise identified as the power of judicial review — the power to review
the constitutionality of the actions of other branches of government. As a
rule, as required by the hierarchy of courts principle, these cases are filed
with the lowest court with jurisdiction over the matter. The judicial review
that the courts undertake requires: 1) there be an actual case or controversy
calling for the exercise of judicial power; (2) the person challenging the act
must have “Standing” to challenge; he must have a personal and substantial
interest in the case such that he has sustained, or will sustain, direct injury as
a result of its enforcement; (3) the question of constitutionality must be
raised at the earliest possible opportunity; and (4) the issue of
constitutionality must be the very lis mota of the case.
Same; Judicial power includes the duty of the courts to settle actual
controversies involving rights which are legally demandable and
enforceable.—The necessity of a person’s standing to sue derives from the
very definition of judicial power. Judicial power includes the duty of the
courts to settle actual controversies involving rights which are legally
demandable and enforceable. Necessarily, the person availing of a judicial
remedy must show that he possesses a legal interest or right to it, otherwise,
the issue presented would be purely hypothetical and academic. This concept
has been translated into the requirement to have “standing” in judicial
review, or to be considered as a “real party-in-interest” in civil actions, as
the “offended party” in criminal actions and the “interested party” in special
proceedings.
Same; Actual Case; A case or controversy exists when there is an actual

dispute between parties over their legal rights, which remains in conflict at
the time the dispute is presented before the
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court.—An actual case or controversy that calls for the exercise of judicial
power necessarily requires that the party presenting it possesses the standing
to mount a challenge to a governmental act. A case or controversy exists
when there is an actual dispute between parties over their legal rights, which
remains in conflict at the time the dispute is presented before the court.
Standing, on the other hand, involves a personal and substantial interest in
the case because the petitioner has sustained, or will sustain, direct injury as
a result of the violation of its right. With the element of “standing” (or the
petitioner’s personal or substantial stake or interest in the case) relaxed, the
practical effect is to dilute the need to show that an immediate actual dispute
over legal rights did indeed take place and is now the subject of the action
before the court. In both the traditional and the expanded modes, this
relaxation carries a ripple effect under established jurisprudential rulings,
affecting not only the actual case or controversy requirement, but
compliance with the doctrine of hierarchy of courts, discussed in greater
detail below.
Courts; Hierarchy of Courts; The Constitution itself has partially determined

the judicial hierarchy in the Philippine legal system by designating the
Supreme Court (SC) as the highest court with irreducible powers; its rulings
serve as precedents that other courts must follow because they form part of
the law of the land.—Another requirement that a certiorari petition carries,
springs from the principle of “hierarchy of courts” which recognizes the
various levels of courts in the country as they are established under the
Constitution and by law, their ranking and effect of their rulings in relation
with one another, and how these different levels of court interact with one
another. Since courts are established and given their defined jurisdictions by
law, the hierarchy of the different levels of courts should leave very little
opening for flexibility (and potential legal questions), but for the fact that the
law creates courts at different and defined levels but with concurrent
jurisdictions. The Constitution itself has partially determined the judicial
hierarchy in the Philippine legal system by designating the Supreme Court as
the highest court with irreducible powers; its rulings serve as precedents that
other courts must follow because they form part of the law of the land. As a
rule, the Supreme Court is not a trial court and rules only on questions of
law, in contrast with the Court of Appeals (CA) and other intermediate
courts which rule on both questions of law and of fact. At the lowest level of
courts are the municipal and the regional trial courts
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which handle questions of fact and law at the first instance according to the
jurisdiction granted to them by law.
Same; Same; As a general rule, under the hierarchy of courts principle, the
petition must be brought to the lowest court with jurisdiction; the petition
brought to the higher courts may be dismissed based on the hierarchy
principle.—Petitions for certiorari and prohibition fall under the concurrent
jurisdiction of the regional trial courts and the higher courts, all the way up
to the Supreme Court (SC). As a general rule, under the hierarchy of courts
principle, the petition must be brought to the lowest court with jurisdiction;
the petition brought to the higher courts may be dismissed based on the
hierarchy principle. Cases, of course, may ultimately reach the Supreme
Court through the medium of an appeal. The recognition of exceptions to the
general rule is provided by the Supreme Court through jurisprudence, i.e.,
through the cases that recognized the propriety of filing cases directly with
the Supreme Court. This is possible as the Supreme Court has the authority
to relax the application of its own rules.
Same; Same; Since the Department of Health (DOH) is part of the Executive
Department and has acted in its quasi-judicial capacity, the petition
challenging its CDO letter should have been filed before the Court of
Appeals (CA).—Since the DOH is part of the Executive Department and has
acted in its quasi-judicial capacity, the petition challenging its CDO letter
should have been filed before the Court of Appeals. The Regional Trial
Court (RTC) thus did not have jurisdiction over the subject matter of the
petitions and erred in giving due course to the petition for certiorari and
prohibition against the DOH CDO letters. In procedural terms, petitions for
certiorari and prohibition against a government agency are remedies
available to assail its quasi-judicial acts, and should thus have been filed
before the CA. The provision in Section 4, Rule 65 requiring that certiorari
petitions challenging quasi-judicial acts to be filed with the CA is in full
accord with Section 9 of Batas Pambansa Blg. 129 on the same point.
Administrative Law; Department of Health Secretary; Under Chapter 8,

Book IV of Executive Order (EO) No. 292, Series of 1987, the Department
of Health (DOH) Secretary “shall have supervision
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and control over the bureaus, offices, and agencies under him” and “shall
have authority over and responsibility for x x x operation” of the
Department.—Under Chapter 8, Book IV of Executive Order (EO) No. 292,
Series of 1987, the DOH Secretary “shall have supervision and control over
the bureaus, offices, and agencies under him” and “shall have authority over
and responsibility for x x x operation” of the Department. Section 1, Chapter
1, Title I, Book III of EO No. 292 in relation with Article VII, Sections 1
and 17 of the Constitution, on the other hand, provides that the “President
shall have control of all the executive departments, bureaus, and offices.”
These provisions both signify that remedies internal to the Executive Branch
exist before resorting to judicial remedies: GCC Approved Medical Centers
Association, Inc. (GAMCA) could ask the DOH Secretary to reconsider or
clarify its letter-order, after which it could appeal, should the ruling be
unfavorable, to the Office of the President.
Remedial Law; Exhaustion of Administrative Remedies; Judicial Review;

Since the petitions for certiorari and prohibition challenge a governmental
act — i.e., action under the Department of Health (DOH) CDO letters, as
well as the validity of the instruments under which these letters were issued
— compliance with Section 1, Rule 65 and the doctrine of exhaustion of
administrative remedies that judicial review requires is also mandatory.—
Noncompliance with the Section 1, Rule 65 requirement that there be no
other plain, speedy, and adequate remedy in law, on the other hand, is more
than just a pro-forma requirement in the present case. Since the petitions for
certiorari and prohibition challenge a governmental act — i.e., action under
the DOH CDO letters, as well as the validity of the instruments under which
these letters were issued — compliance with Section 1, Rule 65 and the
doctrine of exhaustion of administrative remedies that judicial review
requires is also mandatory. To recall a previous discussion, the exhaustion of
administrative remedies is also an aspect of ripeness in deciding a
constitutional issue.
Migrant Workers; Overseas Filipino Workers; Public interest justifies the

State’s interference in health matters, since the welfare of migrant workers is
a legitimate public concern.—GCC Approved Medical Centers Association,
Inc. (GAMCA) further claims that its members made substantial investments
to upgrade their facilities and equipment. From this perspective, the August
23, 2010 order constitutes taking of property without due process of law as
its im-
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plementation would deprive GAMCA members of their property.

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW)
responded to these claims with the argument that the DOH CDO letters
implementing Republic Act (RA) No. 10022 are consistent with the State’s
exercise of the police power to prescribe regulations to promote the health,
safety, and general welfare of the people. Public interest justifies the State’s
interference in health matters, since the welfare of migrant workers is a
legitimate public concern. The DOH thus merely performed its duty of
upholding the migrant workers’ freedom to consult their chosen clinics for
the conduct of health examinations.
Political Law; Police Power; By its very nature, the exercise of the State’s
police power limits individual rights and liberties, and subjects them to the
“far more overriding demands and requirements of the greater number.”—
As defined, police power includes (1) the imposition of restraint on liberty or
property, (2) in order to foster the common good. The exercise of police
power involves the “state authority to enact legislation that may interfere
with personal liberty or property in order to promote the general welfare.”
By its very nature, the exercise of the State’s police power limits individual
rights and liberties, and subjects them to the “far more overriding demands
and requirements of the greater number.” Though vast and plenary, this State
power also carries limitations, specifically, it may not be exercised
arbitrarily or unreasonably. Otherwise, it defeats the purpose for which it is
exercised, that is, the advancement of the public good. To be considered
reasonable, the government’s exercise of police power must satisfy the
“valid object and valid means” method of analysis: first, the interest of the
public generally, as distinguished from those of a particular class, requires
interference; and second, the means employed are reasonably necessary to
attain the objective sought and not unduly oppressive upon individuals.
Overseas Filipino Workers; The guarantee under Section 16 for Overseas

Filipino Workers (OFWs) to be given the option to choose a quality
healthcare service provider — as expressed in Section 16(c) of Republic Act
(RA) No. 10022 — is guaranteed by the prohibition against the decking
practice and against monopoly practices in OFW health examinations.—The
guarantee under Section 16 for OFWs to be given the option to choose a
quality healthcare service provider —
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as expressed in Section 16(c) of RA No. 10022 — is guaranteed by the

prohibition against the decking practice and against monopoly practices in
OFW health examinations. Section 16 likewise requires employers to accept
health examinations from any DOH-accredited health facility; a refusal
could lead to their temporary disqualification under pertinent rules to be
formulated by the Philippine Overseas Employment Authority (POEA).
These rules are part of the larger legal framework to ensure the Overseas
Filipino Workers’ (OFWs’) access to quality healthcare services, and to curb
existing practices that limit their choices to specific clinics and facilities.
Separately from the Section 16 prohibition against the referral decking
system, RA No. 10022 also prohibits and penalizes the imposition of a
compulsory exclusive arrangement requiring OFWs to undergo health
examinations only from specifically designated medical clinics, institutions,
entities or persons. Section 5, in relation to Section 6 of RA No. 10022,
penalizes compulsory, exclusive arrangements by imprisonment and fine and
by the automatic revocation of the participating medical clinic’s license.
Administrative Agencies; Department of Health; The Department of Health

(DOH) has long made the factual finding that the referral decking system
hinders our Filipino seafarers’ access to quality and affordable healthcare in
its Administrative Order (AO) No. 106, Series of 2002.—The Court
furthermore, in several instances, has recognized that an administrative
agency may issue an ex parte cease and desist order, where vital public
interests outweigh the need for procedural due process. In these instances,
the Court noted that the affected establishment may contest the ex parte
order, upon which the administrative agency concerned must conduct a
hearing and allow the establishment to be heard. While jurisprudence has so
far used the “vital public interests” standard to pollution cases, it had not
been a grave abuse of discretion on the part of the DOH to consider that
GCC Approved Medical Centers Association, Inc.’s (GAMCA’s) referral
decking practice falls within this category. The DOH has long made the
factual finding that the referral decking system hinders our Filipino
seafarers’ access to quality and affordable healthcare in its A.O. No. 106,
Series of 2002.
Political Law; Principle of Sovereign Independence and Equality; While the

principles of sovereign independence and equality have
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been recognized in Philippine jurisprudence, our recognition of this principle

does not extend to the exemption of States and their affiliates from
compliance with Philippine regulatory laws.—The Regional Trial Court’s
(RTC’s) decision misapplied the principle of sovereign independence and
equality to the present case. While the principles of sovereign independence
and equality have been recognized in Philippine jurisprudence, our
recognition of this principle does not extend to the exemption of States and
their affiliates from compliance with Philippine regulatory laws.
Same; Same; While we recognized the principles of independence and

equality of States to justify a State’s sovereign immunity from suit, we also
restricted state immunity to acts jus imperii, or public acts. We said that once
a State enters into commercial transactions (jus gestionis), then it descends
to the level of a private individual, and is thus not immune from the resulting
liability and consequences of its actions.—While we recognized the
principles of independence and equality of States to justify a State’s
sovereign immunity from suit, we also restricted state immunity to acts jus
imperii, or public acts. We said that once a State enters into commercial
transactions (jus gestionis), then it descends to the level of a private
individual, and is thus not immune from the resulting liability and
consequences of its actions. By this recognition, we acknowledge that a
foreign government acting in its jus imperii function cannot be held liable in
a Philippine court. Philippine courts, as part of the Philippine government,
cannot and should not take jurisdiction over cases involving the public acts
of a foreign government. Taking jurisdiction would amount to authority over
a foreign government, and would thus violate the principle of sovereign
independence and equality. This recognition is altogether different from
exempting governments whose agents are in the Philippines from complying
with our domestic laws. We have yet to declare in a case that the principle of
sovereign independence and equality exempts agents of foreign governments
from compliance with the application of Philippine domestic law.
LEONEN, J., Concurring and Dissenting Opinion:
Remedial Law; Jurisdiction; Expanded Jurisdiction; View that the

Constitution does not distinguish the cause for grave abuse. Neither should
this Court, unless, in the guise of promulgating rules of
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procedure, we wish to effect an amendment of the Constitution.—Neither

would it be correct to limit any of our certiorari powers, even on an
“expanded” basis, to questions, which only raise constitutional issues. An act
of any government branch, agency, or instrumentality that violates a statute
or a treaty is grave abuse of discretion. The Constitution does not distinguish
the cause for grave abuse. Neither should this Court, unless, in the guise of
promulgating rules of procedure, we wish to effect an amendment of the
Constitution. Finally, I express my reservations relating to the absolute
necessity for a decision of this Court before any other organ of government
can act on its rational belief in the bending nature of any customary
international norms or a general principle of international law. Our
constitutional adherence to international law is by virtue of incorporation
through Article II, Section 2 or Article VII, Section 21 of the Constitution.
Judicial action is not required for these norms to be binding. Neither of these
modes of incorporation require it.
Judicial Review; View that fundamental to constitutional litigation is the

assurance that judicial review should only happen when there is an actual
case or controversy.—Fundamental to constitutional litigation is the
assurance that judicial review should only happen when there is an actual
case or controversy. That is, the judiciary is not an advisory body to the
President, Congress, or any other branch, instrumentality, or agency of the
government. Thus, absent any actual or sufficiently imminent breach, which
will cause an injury to a fundamental right, a provision of law or an
administrative regulation cannot be challenged. This Court is coequal with
the other branches of government. The Constitution is a legible, written
document capable of being read by all. Its ambiguity may only be clarified
through judicial review when it becomes apparent through the existence of
an actual situation. The mere existence of subordinate norms — in the form
of a statue, treaty or administrative rule — is not enough. There has to be
parties who tend to be directly and substantially injured under a specific
concrete set of facts.
Remedial Law; Certiorari; View that petitions for certiorari as provided in

Rule 65 are available only to correct acts done in a judicial or quasi-judicial
procedure.—Petitions for certiorari as provided in Rule 65 are available only
to correct acts done in a judicial or quasi-judicial procedure. This ensures
that the power of judicial
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review can only be exercised when there is an actual controversy. No

judicial action can happen without interested parties, who suffer injury and
therefore ready to plead the facts that give actual rise to their real injury.
This is the same with quasi-judicial actions. Ministerial or administrative
actions, which will cause or threaten to cause injury can be corrected
through a Writ of Prohibition, not a Writ of Certiorari. In both cases, the
requirement of the absence of a plain, speedy, and adequate remedy in the
ordinary course of the law conforms with the deferential nature of judicial
review in constitutional cases. The requirement in both cases that there be a
clear finding of grave abuse of discretion amounting to lack of jurisdiction is
sufficient to meet the scope of all our powers of judicial review.
PETITIONS for review on certiorari of the decision and order of the

Regional Trial Court of Pasay City, Br. 108.
The facts are stated in the opinion of the Court.
Amora, Del Valle & Associates Law Offices for petitioner in G.R. No.
207132.
Navarro, Jumamil, Escolin & Martinez Law Offices for respondents in

G.R. No. 207205.
BRION, J.:
In these consolidated petitions for review on certiorari1 filed under Rule 45

of the Rules of Court, by the Association of Medical Clinics for Overseas
Workers, Inc. (AMCOW) in G.R. No. 207132, and by Secretary Enrique T.
Ona (Secretary Ona) of the Department of Health (DOH) in G.R. No.
207205,
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1 G.R. No. 207132, Rollo, pp. 13-55; G.R. No. 207205, id., at pp. 8-37.
G.R. No. 207132 is entitled Association of Medical Clinics for Overseas
Workers, Inc. (AMCOW) represented herein by its President, Dr. Rolando
Villote v. GCC Approved Medical Centers Association, Inc, et al.; while
G.R. No. 207205 is entitled Hon. Enrique T. Ona, in his capacity as
Secretary of the Department of Health v. GCC Approved Medical Centers
Association, Inc. and Christian E. Cangco.
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we resolve the challenge to the August 10, 2012 decision2 and the April 12,
2013 order3 of the Regional Trial Court (RTC) of Pasay City, Branch 108,
in Sp. Civil Action No. R-PSY-10-04391-CV.4
The August 10, 2012 decision and April 12, 2013 order declared null and
void ab initio the August 23, 2010 and November 2, 2010 orders issued by
the DOH directing respondent GCC Approved Medical Centers Association,
Inc. (GAMCA) to cease and desist from implementing the referral decking
system (these orders shall be alternately referred to as DOH CDO letters).
I. The Antecedents
On March 8, 2001, the DOH issued Administrative Order No. 5, Series of

20015 (AO 5-01) which directed the decking or equal distribution of migrant
workers among the several clinics who are members of GAMCA.
AO 5-01 was issued to comply with the Gulf Cooperative Countries (GCC)
States’ requirement that only GCC-accredited medical clinics/hospitals’
examination results will be honored by the GCC States’ respective
embassies. It required an OFW applicant to first go to a GAMCA Center
which, in turn, will refer the applicant to a GAMCA clinic or hospital.
_______________
2 Penned by Judge Maria Rosario B. Ragasa, id., at pp. 56-66 (G.R. No.
207132) and pp. 38-48 (G.R. No. 207205).
3 Id., at p. 68 (G.R. No. 207132) and p. 49 (G.R. No. 207205).

4 The case was originally raffled to RTC, Branch 110 under Judge Petronilo
A. Sulla, Jr.; it was reraffled to Branch 108 alter Judge Sulla inhibited
himself from the case on GAMCA’s petition for inhibition (per the
Republic’s petition in G.R. No. 207205), Rollo, p. 14). See G.R. No.
207132, id., at pp. 223-228 for copy of the resolution on the motion for
inhibition (dated June 2011) issued by Judge Sulla.
5 Id., at p. 50 (G.R. No. 207205).
467
467

Subsequently, the DOH issued AO No. 106, Series of 20026 holding in

abeyance the implementation of the referral decking system. The DOH
reiterated its directive suspending the referral decking system in AO No.
159, Series of 2004.7
In 2004, the DOH issued AO No. 167, Series of 20048 repealing AO 5-01,
reasoning that the referral decking system did not guarantee the migrant
workers’ right to safe and quality health service. AO 167-04 pertinently
reads:
WHEREAS, after a meticulous and deliberate study, examination, and

consultation about the GAMCA referral decking system, the DOH believes
that its mandate is to protect and promote the health of the Filipino people
by ensuring the rights to safe and quality health service and reliable medical
examination results through the stricter regulation of medical clinics and
other health facilities, which the referral decking system neither assures nor
guarantees.
NOW, THEREFORE, for and in consideration of the foregoing, the DOH
hereby withdraws, repeals and/or revokes Administrative Order No. 5,
Series of 2001, concerning the referral decking system. Hence, all other
administrative issuances, bureau circulars and memoranda related to A.O.
No. 5, Series of 2001, are hereby withdrawn, repealed and/revoked
accordingly.
In Department Memorandum No. 2008-0210,9 dated September 26, 2008,

then DOH Secretary Francisco T. Duque III expressed his concern about the
continued implementation of the referral decking system despite the DOH’s
prior
_______________
6 Dated April 26, 2002, G.R. No. 207205, Rollo, p. 52.
7 Dated July 16, 2004, id., at p. 53.
8 Dated August 30, 2004, id., at pp. 54-55.
9 Id., at pp. 349-350 (G.R. No. 207132) and pp. 56-57 (G.R. No. 207205).
468
468

suspension directives. The DOH directed the “OFW clinics, duly

accredited/licensed by the DOH and/or by the Philippine Health Insurance
Corporation (PHILHEALTH) belonging to and identified with GAMCA
x x x to forthwith stop, terminate, withdraw or otherwise end the x x x
‘referral decking system.’”10
GAMCA questioned the DOH’s Memorandum No. 2008-0210 before the

Office of the President (OP). In a decision11 dated January 14, 2010, the OP
nullified Memorandum No. 2008-0210.
On March 8, 2010, Republic Act (RA) No. 1002212 lapsed into law without
the President’s signature. Section 16 of RA No. 10022 amended Section 23
of RA No. 8042, adding two new paragraphs — paragraphs (c) and (d). The
pertinent portions of the amendatory provisions read:
Section 16. Under Section 23 of Republic Act No. 8042, as amended, add
new paragraphs (c) and (d) with their corresponding subparagraphs to read
as follows:
(c) Department of Health.—The Department of Health (DOH) shall

regulate the activities and operations of all clinics which conduct medical,
physical, optical, dental, psychological and other similar examinations,
hereinafter referred to as health examinations, on Filipino migrant workers
as requirement for their overseas employment. Pursuant to this, the DOH
shall ensure that:
_______________
10 Id., at p. 349.
12 An Act Amending Republic Act No. 8042, Otherwise Known as the

Migrant Workers and Overseas Filipinos Act of 1995, as amended, Further
Improving the Standard of Protection and Promotion of the welfare of
Migrant Workers, Their Families and Overseas Filipinos in Distress, and for
Other Purpose.
469
469

(c.1) The fees for the health examinations are regulated, regularly
monitored and duly published to ensure that the said fees are reasonable and
not exorbitant;
(c.2) The Filipino migrant worker shall only be required to undergo health
examinations when there is reasonable certainty that he or she will be hired
and deployed to the jobsite and only those health examinations which are
absolutely necessary for the type of job applied for or those specifically
required by the foreign employer shall be conducted;
(c.3) No group or groups of medical clinics shall have a monopoly of

exclusively conducting health examinations on migrant workers for certain
receiving countries;
(c.4) Every Filipino migrant worker shall have the freedom to choose any
of the DOH-accredited or DOH-operated clinics that will conduct his/her
health examinations and that his or her rights as a patient are respected. The
decking practice, which requires an overseas Filipino worker to go first to an
office for registration and then farmed out to a medical clinic located
elsewhere, shall not be allowed;
(c.5) Within a period of three (3) years from the effectivity of this Act, all
DOH regional and/or provincial hospitals shall establish and operate clinics
that can serve the health examination requirements of Filipino migrant
workers to provide them easy access to such clinics all over the country and
lessen their transportation and lodging expenses; and
(c.6) All DOH-accredited medical clinics, including the DOH operated

clinics, conducting health examinations for Filipino migrant workers shall
observe the same standard operating procedures and shall comply with
internationally accepted standards in their operations to conform with the
requirements of receiving countries or of foreign employers/principals.
470
470

Any Foreign employer who does not honor the results of valid health
examinations conducted by a DOH-accredited or DOH-operated clinic shall
be temporarily disqualified from participating in the overseas employment
program, pursuant to POEA rules and regulations.
In case an overseas Filipino worker is found to be not medically fit upon

his/her immediate arrival in the country of destination, the medical clinic
that conducted the health examinations of such overseas Filipino worker
shall pay for his or her repatriation back to the Philippines and the cost of
deployment of such worker.
Any government official or employee who violates any provision of this

subsection shall be removed or dismissed from service with disqualification
to hold any appointive public office for five (5) years. Such penalty is
without prejudice to any other liability which he or she may have incurred
under existing laws, rules or regulations. [emphases and underscoring
supplied]
On August 13, 2010, the Implementing Rules and Regulations13 (IRR) of

RA No. 8042, as amended by RA No. 10022, took effect.
Pursuant to Section 16 of RA No. 10022, the DOH, through its August 23,
2010 letter-order,14 directed GAMCA to cease and desist from
implementing the referral decking system and to wrap up their operations
within three (3) days from receipt thereof. GAMCA received its copy of the
August 23, 2010 letter-order on August 25, 2010.
On August 26, 2010, GAMCA filed with the RTC of Pasig City a petition
for certiorari and prohibition with prayer for a
_______________
13 Omnibus Rules and Regulations Implementing the Migrant Workers and

Overseas Filipino Act of 1995, as amended by Republic Act No. 10022.
14 Signed by Alexander A. Padilla, Undersecretary of Health, Head of

Health Regulation Cluster, Rollo, pp. 139-140 (G.R. No. 207132) and pp.
63-64 (G.R. No. 207205).
471
471

writ of preliminary injunction and/or temporary restraining order

(GAMCA’s petition).15 It assailed: (1) the DOH’s August 23, 2010 letter-
order on the ground of grave abuse of discretion; and (2) paragraphs c.3 and
c.4, Section 16 of RA No. 10022, as well as Section 1(c) and (d), Rule XI of
the IRR, as unconstitutional.
The case was originally raffled to RTC, Branch 110 (RTC Br. 110) whose
presiding judge was Judge Petronilo A. Sulla, Jr. on GAMCA’s motion for
inhibition, the case was subsequently re-raffled to RTC, Branch 108 under
Judge Maria Rosario B. Ragasa.
Meanwhile, the DOH reiterated — through its November 2, 2010 order —
its directive that GAMCA cease and desist from implementing the referral
decking system.16
On November 23, 2010, AMCOW filed an urgent motion for leave to

intervene and to file an opposition-in-intervention, attaching its opposition-
-in-intervention to its motion.17 In the hearing conducted the following day,
November 24, 2010, the RTC granted AMCOW’s intervention; DOH and
GAMCA did not oppose AMCOW’s motion.18 AMCOW subsequently paid
the docket fees and submitted its memorandum.19
_______________
15 Id., at pp. 141-173 (G.R. No. 207132).
16 Signed by Alexander A. Padilla, Undersecretary of Health, Head of

Health Regulation Cluster, id., at p. 192 (G.R. No. 207132) and p. 65 (G.R.
No. 207205).
17 Id., at pp. 193-204.
18 Id., at p. 214.
The November 24, 2010 order reads in full:
There being no opposition from the opposing Counsels to the ‘Urgent

Motion For Leave to Intervene and File Opposition-in-Intervention,’
movant’s Counsel or Intervenor is hereby allowed to file said Opposition or
Comment to the Application for Temporary Restraining Order and as a
matter of fact, the Court takes notice that said Comment/Opposition is
already attached to the said Urgent Motion, and since the petitioner and the
respondent’s [sic] Counsels, respectively, are no longer adducing further
arguments in support of their respective positions relative to the Application
for TRO, Jet the said applica-
472
472

In an order20 dated August 1, 2011, the RTC issued a writ of preliminary

injunction21 directing the DOH to cease and desist from implementing its
August 23, 2010 and November 2, 2010 orders. The RTC likewise issued an
order denying the motion for inhibition/disqualification filed by AMCOW.
On August 18, 2011, the DOH sought reconsideration of the RTC’s August
1, 2011 order.
The Assailed RTC Rulings
In its August 10, 2012 decision,22 the RTC granted GAMCA’s certiorari
petition and declared null and void ab initio the DOH CDO letters. It also
issued a writ of prohibition directing “the DOH Secretary and all persons
acting on his behalf to cease and desist from implementing the assailed
Orders against the [GAMCA].”
The RTC upheld the constitutionality of Section 16 of RA No. 10022,

amending Section 23 of RA No. 8042, but ruled that Section 16 of RA No.
10022 does not apply to GAMCA.
_______________
tion together with the respective opposition thereto of the respondents and
intervenor be submitted for resolution. Let the hearing on the Application for
Preliminary Injunction be tentatively scheduled on February 16, 2011 at 8:30
a.m.
19 In an order dated March 14, 2011 (Rollo, p. 215 [G.R. No. 207132]), the
RTC, Branch 110 ordered AMCOW to pay the docket fees within ten days
from receipt of the order, and to file a memorandum until March 17, 2011.
AMCOW complied with the order to submit memorandum and the directive
to pay the docket fees (id., at pp. 216-218).
21 Dated August 2, 2011, id., at pp. 233-234 (G.R. No. 207132) and pp. 70-
71 (G.R. No. 207205).
473
473

The RTC reasoned out that the prohibition against the referral decking
system under Section 16 of RA No. 10022 must be interpreted as applying
only to clinics that conduct health examination on migrant workers bound
for countries that do not require the referral decking system for the issuance
of visas to job applicants.
It noted that the referral decking system is part of the application procedure
in obtaining visas to enter the GCC States, a procedure made in the exercise
of the sovereign power of the GCC States to protect their nationals from
health hazards, and of their diplomatic power to regulate and screen entrants
to their territories. Under the principle of sovereign equality and
independence of States, the Philippines cannot interfere with this system
and, in fact, must respect the visa-granting procedures of foreign states in the
same way that they respect our immigration procedures.
Moreover, to restrain GAMCA which is a mere adjunct of HMC, the agent
of GCC States, is to restrain the GCC States themselves. To the RTC, the
Congress was aware of this limitation, pursuant to the generally accepted
principles of international law under Article II, Section 2 of the 1987
Constitution, when it enacted Section 16 of RA No. 10022.
The DOH and AMCOW separately sought reconsideration of the RTC’s

August 10, 2012 decision, which motions the RTC denied.23 The DOH and
AMCOW separately filed the present Rule 45 petitions.
On August 24, 2013, AMCOW filed a motion for consolidation24 of the two
petitions; the Court granted this motion and ordered the consolidation of the
two petitions in a resolution dated September 17, 2013.25
_______________
23 Id., at p. 68 (G.R. No. 207132) and p. 49 (G.R. No. 207205).
25 Id., at pp. 95-96 (G.R. No. 207205).
474
474

In the resolution26 of April 14, 2015, the Court denied: (1) GAMCA’s most
urgent motion for issuance of temporary restraining order/writ of
preliminary injunction/status quo ante order (with request for immediate
inclusion in the Honorable Court’s agenda of March 3, 2015, its motion
dated March 2, 2015);27 and (2) the most urgent reiterating motion for
issuance of temporary restraining order/writ of preliminary injunction/status
quo ante order dated March 11, 2015.28
The Court also suspended the implementation of the permanent injunction

issued by the RTC of Pasay City, Branch 108 in its August 10, 2012
decision.
II. The Issues
The consolidated cases before us present the following issues:
First, whether the Regional Trial Court legally erred in giving due course to
the petition for certiorari and prohibition against the DOH CDO letters;
Second, whether the DOH CDO letters prohibiting GAMCA from

implementing the referral decking system embodied under Section 16 of
Republic Act No. 10022 violates Section 3, Article II of the 1987
Constitution for being an undue taking of property;
Third, whether the application of Section 16 of Republic Act No. 10022 to

the GAMCA violates the international customary principles of sovereign
independence and equality.
_______________
26 Id., at pp. 472-479 (G.R. No. 207132).
27 Id., at pp. 442-446.
28 Id., at pp. 451-453.

475
475

III. Our Ruling
A. The RTC legally erred when it gave

due course to GAMCA’s petition
for certiorari and prohibition.
The present case reached us through an appeal by certiorari (pursuant to

Rule 45) of an RTC ruling, assailing the decision based solely on questions
of law. The RTC decision, on the other hand, involves the grant of the
petitions for certiorari and prohibition (pursuant to Rule 65) assailing the
DOH CDO letters for grave abuse of discretion.
The question before us asks whether the RTC made a reversible error of law
when it issued writs of certiorari and prohibition against the DOH CDO
letters.
AMCOW questions the means by which GAMCA raised the issue of the
legality of RA No. 10022 before the RTC. AMCOW posits that GAMCA
availed of an improper remedy, as certiorari and prohibition lie only against
quasi-judicial acts, and quasi-judicial and ministerial acts, respectively.
Since the disputed cease and desist order is neither, the RTC should have
dismissed the petition outright for being an improper remedy.
We agree with the petitioners’ assertion that the RTC erred when it gave due
course to GAMCA’s petition for certiorari and prohibition, but we do so for
different reasons.
1. Certiorari under Rules of Court
and under the courts’ expanded
jurisdiction under Art. VIII,
Section 1 of the Constitution, as
recognized by jurisprudence
A.1.a. The Current Certiorari Situation
The use of petitions for certiorari and prohibition under Rule 65 is a remedy
that judiciaries have used long before our
476
476

Rules of Court existed.29 As footnoted below, these writs — now

recognized and regulated as remedies under Rule 65 of our Rules of Court
— have been characterized a “supervisory writs” used by superior courts to
keep lower courts within the confines of their granted jurisdictions, thereby
ensuring orderliness in lower courts’ rulings.
We confirmed this characterization in Madrigal Transport v. Lapanday

Holdings Corporation,30 when we held that a writ is founded on the
supervisory jurisdiction of appellate courts over inferior courts, and is issued
to keep the latter within the bounds of their jurisdiction. Thus, the writ
corrects only errors of jurisdiction of judicial and quasi-judicial bodies, and
cannot be used to correct errors of law or fact. For these mistakes of
judgment, the appropriate remedy is an appeal.31
This situation changed after 1987 when the new Constitution “expanded” the
scope of judicial power by providing that —
Judicial power includes the duty of the courts of justice to settle actual
enforceable, and to determine whether or not there has been a grave abuse of
dis-
_______________
29 See Land Bank of the Philippines v. Court of Appeals, G.R. No. 129368,
August 25, 2003, 409 SCRA 455, where the Court held:
A writ of certiorari has been called a “supervisory or superintending” writ. It

was a common law writ of ancient origin. Its earliest use was in the crown or
criminal side of the Court of King’s Bench. Its use on the civil side later
came into general use. Certiorari is a remedy narrow in scope and inflexible
in character. It is not a general utility tool in the legal workshop.
See also Barangay Blue Ridge “A” of Quezon City v. Court of Appeals, 377
Phil. 49, 53; 319 SCRA 48, 51 (1999); Lalican v. Vergara, 342 Phil. 485;
276 SCRA 518 (1997); Silverio v. Court of Appeals, No. L-39861, March
17, 1986, 141 SCRA 527.
30 479 Phil. 768; 436 SCRA 123 (2004).
31 Id., at pp. 779-780; p. 133.
474
474

cretion amounting to lack or excess of jurisdiction on the part of any branch

or instrumentality of the Government. (Italics supplied)32
In Francisco v. The House of Representatives,33 we recognized that this

expanded jurisdiction was meant “to ensure the potency of the power of
judicial review to curb grave abuse of discretion by ‘any branch or
instrumentalities of government.’” Thus, the second paragraph of Article
VIII, Section 1 engraves, for the first time in its history, into black letter law
the “expanded certiorari jurisdiction” of this Court, whose nature and
purpose had been provided in the sponsorship speech of its proponent,
former Chief Justice Constitutional Commissioner Roberto Concepcion:
xxxx
The first section starts with a sentence copied from former Constitutions. It
says:
The judicial power shall be vested in one Supreme Court and in such lower
courts as may be established by law.
I suppose nobody can question it.
The next provision is new in our constitutional law. I will read it first and
explain.
discretion amounting to lack or excess of jurisdiction on the part of any
branch or instrumentality of the government.
Fellow Members of this Commission, this is actually a product of our

experience during martial law. As a
_______________
32 Constitution, Art. VIII, Sec. 1.
33 460 Phil. 830; 415 SCRA 44 (2003).
478
478

matter of fact, it has some antecedents in the past, but the role of the
judiciary during the deposed regime was marred considerably by the
circumstance that in a number of cases against the government, which then
had no legal defense at all, the solicitor general set up the defense of political
question and got away with it. As a consequence, certain principles
concerning particularly the writ of habeas corpus, that is, the authority of
courts to order the release of political detainees, and other matters related to
the operation and effect of martial law failed because the government set up
the defense of political question. And the Supreme Court said: “Well, since
it is political, we have no authority to pass upon it.” The Committee on the
Judiciary feels that this was not a proper solution of the questions involved.
It did not merely request an encroachment upon the rights of the people, but
it, in effect, encouraged further violations thereof during the martial law
regime. x x x
xxxx
Briefly stated, courts of justice determine the limits of power of the agencies
and offices of the government as well as those of its officers. In other words,
the judiciary is the final arbiter on the question whether or not a branch of
government or any of its officials has acted without jurisdiction or in excess
of jurisdiction, or so capriciously as to constitute an abuse of discretion
amounting to excess of jurisdiction or lack of jurisdiction. This is not only a
judicial power but a duty to pass judgment on matters of this nature.
This is the background of paragraph 2 of Section 1, which means that the

courts cannot hereafter evade the duty to settle matters of this nature, by
claiming that such matters constitute a political question.34 (Italics in the
original; emphasis and underscoring supplied)
_______________
34 Id., at pp. 883, 909-910, citing I Records of the Constitutional

Commission, pp. 434-436 (1986).
479
479

Meanwhile that no specific procedural rule has been promulgated to enforce

this “expanded” constitutional definition of judicial power and because of
the commonality of “grave abuse of discretion” as a ground for review under
Rule 65 and the courts expanded jurisdiction, the Supreme Court — based
on its power to relax its rules35 — allowed Rule 65 to be used as the
medium for petitions invoking the courts’ expanded jurisdiction based on its
power to relax its Rules.36 This is however an ad hoc approach that does not
fully consider the accompanying implications, among them, that Rule 65 is
an essentially distinct remedy that cannot simply be bodily lifted for
application under the judicial power’s expanded mode. The terms of Rule
65, too, are not fully aligned with what the Court’s expanded jurisdiction
signifies and requires.37
_______________
35 Tiangco v. Land Bank of the Philippines, G.R. No. 153998, October 6,

2010, 632 SCRA 256, 271; Villanueva v. People, G.R. No. 188630,
February 23, 2011, 644 SCRA 358, 368.
36 See, for instance, the following cases where the Court gave due course to
certiorari petitions that question, at the first instance, the constitutionality of
governmental acts that are not quasi-judicial or judicial in nature: Belgica v.
Executive Secretary, 721 Phil. 416; 710 SCRA 1 (2013), questioning the
constitutionality of the Disbursement Acceleration Program; Disini, Jr. v.
Secretary of Justice, 716 SCRA 237 (2014), questioning the constitutionality
of the Cybercrime Prevention Act; Imbong v. Ochoa, Jr., 732 Phil. 1; 721
SCRA 146 (2014) questioning the constitutionality of the Reproductive
Health Law; Araullo v. Aquino III, 737 Phil. 457; 728 SCRA 1 (2014),
questioning the constitutionality of the Priority Development Assistance
Fund; Diocese of Bacolod v. Comelec, 747 SCRA 1 (2015), questioning the
Commission on Election’s administrative actions against the Diocese of
Bacolod; and Saguisag v. Ochoa, Jr., 779 SCRA 241 (2016), questioning the
constitutionality of the Philippine government’s Enhanced Defense
Cooperation Agreement with the United States.
37 Cf Section 1 of Rule 65 of the Rules of Court, which provides a remedy

“When any tribunal, board or officer exercising
480
480

On the basis of almost thirty years’ experience with the courts’ expanded
jurisdiction, the Court should now fully recognize the attendant distinctions
and should be aware that the continued use of Rule 65 on an ad hoc basis as
the operational remedy in implementing its expanded jurisdiction may, in the
longer term, result in problems of uneven, misguided, or even incorrect
application of the courts’ expanded mandate.
The present case is a prime example of the misguided reading that may take
place in constitutional litigation: the procedural issues raised apparently
spring from the lack of proper understanding of what a petition for certiorari
assails under the traditional and expanded modes, and the impact of these
distinctions in complying with the procedural requirements for a valid
petition.
2. The Basic Distinctions
A.2.a. Actual Case or Controversy
Basic in the exercise of judicial power whether under the traditional or in the
expanded setting — is the presence of an actual case or controversy. For a
dispute to be justiciable, a legally demandable and enforceable right must
exist as basis, and must be shown to have been violated.38
_______________
judicial or quasi-judicial functions has acted without or in excess its or his
jurisdiction, or with grave abuse of discretion amounting to lack or excess of
jurisdiction” with the more general grant of jurisdiction “to determine
whether or not there has been a grave abuse of discretion amounting to lack
or excess of jurisdiction on the part of any branch or instrumentality of the
Government” in Article VIII, Section 1 of the 1987 Constitution.
38 This requirement is reflected from the text of the 1987 Constitution,

from its definition of judicial power in Article VIII, Section 1, which
requires “actual controversies” and its enumeration of the Supreme Court’s
jurisdiction in Article VIII, Section 5, which pertains to “cases.”
481
481

Whether a case actually exists depends on the pleaded allegations, as

affected by the elements of standing (translated in civil actions as the status
of being a “real party-in-interest,” in criminal actions as “offended party”
and in special proceedings as “interested party”),39 ripeness,40
_______________
See also Justice Arturo Brion’s Separate Concurring Opinion in Villanueva

v. Judicial and Bar Council, G.R. No. 211833, April 7, 2015, 755 SCRA
182.
39 Note the pattern in our Rules of Civil Procedure requiring a party to be a

“real party-in-interest” to lodge an action, and for parties to have “a legal
interest” in order to intervene.
Thus, Rule 3, Section 2 provides:
Section 2. Parties-in-interest.—A real party-in-interest is the party who

stands to be benefited or injured by the judgment in the suit, or the party
entitled to the avails of the suit. Unless otherwise authorized by law or these
Rules, every action must be prosecuted or defended in the name of the real
party-in-interest. (2a)
Rule 19, Section 1, provides:
Section 1. Who may intervene.—A person who has a legal interest in the
matter in litigation, or in the success of either of the parties, or an interest
against both, or is so situated as to be adversely affected by a distribution or
other disposition of property in the custody of the court or of an officer
thereof may, with leave of court, be allowed to intervene in the action. The
court shall consider whether or not the intervention will unduly delay or
prejudice the adjudication of the rights of the original parties, and whether or
not the intervenor’s rights may be fully protected in a separate proceeding.
(2[a], [b]a, R12)
Note, too, that criminal actions initiated against the accused, the People of
the Philippines has been recognized as “the offended party.” People v.
Santiago, 255 Phil. 851; 174 SCRA 143 (1989).
Lastly, the Rules of Court on Special Proceedings require that parties have
an interest in the proceeding they initiate to establish a status, a right, or a
particular fact.
40 While “ripeness” is a concept found in constitutional litigation, it is not

without counterparts in other proceedings. In civil
482
482

prematurity, and the moot and academic principle that likewise interact with
one another. These elements and their interactions are discussed in greater
detail below.
The Court’s expanded jurisdiction — itself an exercise of judicial power —

does not do away with the actual case or controversy requirement in
presenting a constitutional issue, but effectively simplifies this requirement
by merely requiring a prima facie showing of grave abuse of discretion in
the assailed governmental act.
A.2.b. Actions Correctable

by Certiorari
A basic feature of the expanded jurisdiction under the constitutional

definition of judicial power, is the authority and command for the courts to
act on petitions involving the commission by any branch or instrumentality
of government of grave abuse of discretion amounting to lack or excess of
jurisdiction.
This command distinctly contrasts with the terms of Rule 65 which confines
court certiorari action solely to the review of judicial and quasi--judicial
acts.41 These differing features create very basic distinctions that must
necessarily result in differences in the application of remedies.
While actions by lower courts do not pose a significant problem because

they are necessarily acting judicially when
_______________
proceedings, for instance, the failure to exhaust administrative remedies

before availing of judicial relief renders a civil action immediately
dismissible for being premature. Laguna CATV Network, Inc. v. Maraan
(DOLE), 440 Phil. 734; 392 SCRA 221 (2002). Too, the failure to comply
with the requisite barangay mediation prior to initiating certain cases also
renders the action premature and dismissible. Local Government Code,
Chapter VII.
41 The writ of prohibition can be sought when the tribunal, board or body
exercises judicial, quasi-judicial or ministerial functions. Rules of Court,
Rule 65, Sec. 1.
483
483

they adjudicate, a critical question comes up for the court acting on certiorari
petitions when governmental agencies are involved — under what capacity
does the agency act?
This is a critical question as the circumstances of the present case show.

When the government entity acts quasi-judicially, the petition for certiorari
challenging the action falls under Rule 65; in other instances, the petition
must be filed based on the courts’ expanded jurisdiction.
A.2.c. Grave Abuse of Discretion
Another distinction, a seeming one as explained below, relates to the cited

ground of a certiorari petition under Rule 65 which speaks of lack or excess
of jurisdiction or grave abuse of discretion amounting to lack or excess of
jurisdiction, as against the remedy under the courts’ expanded jurisdiction
which expressly only mentions grave abuse of discretion amounting to lack
or excess of jurisdiction.
This distinction is apparently not legally significant when it is considered

that action outside of or in excess of the granted authority necessarily
involves action with grave abuse of discretion: no discretion is allowed in
areas outside of an agency’s granted authority so that any such action would
be a gravely abusive exercise of power. The constitutional grant of power,
too, pointedly addresses grave abuse of discretion when it amounts to lack or
excess of jurisdiction,42 thus establishing that the presence of jurisdiction is
the critical element; failure to comply with this requirement necessarily
leads to the certiorari petition’s immediate dismissal.43
As an added observation on a point that our jurisprudence has not fully

explored, the result of the action by a governmental entity (e.g., a law or an
executive order) can be distin-
_______________
42 Ysidro v. Leonardo-De Castro, 681 Phil. 1, 14-17; 665 SCRA 1, 17

(2012).
43 Rules of Court, Rule 65, Sec. 6.
484
484

guished from the perspective of its legality as tested against the terms of the
Constitution or of another law (where subordinate action like an executive
order is involved), vis-à-vis the legality of the resulting action where grave
abuse of discretion attended the governmental action or the exercise of the
governmental function.
In the former, the conclusion may be plain illegality or legal error that
characterized the law or exec order (as tested, for example, under the
established rules of interpretation); no consideration is made of how the
governmental entity exercised its function. In the latter case, on the other
hand, it is the governmental entity’s exercise of its function that is examined
and adjudged independently of the result, with impact on the legality of the
result of the gravely abusive action.
Where the dispute in a case relates to plain legal error, ordinary court action
and traditional mode are called for and this must be filed in the lower courts
based on rules of jurisdiction while observing the hierarchy of courts.
Where grave abuse of discretion is alleged to be involved, the expanded

jurisdiction is brought into play based on the express wording of the
Constitution and constitutional implications may be involved (such as grave
abuse of discretion because of plain oppression or discrimination), but this
must likewise be filed with the lowest court of concurrent jurisdiction,
unless the court highest in the hierarchy grants exemption. Note that in the
absence of express rules, it is only the highest court, the Supreme Court, that
can only grant exemptions.
From these perspectives, the use of grave abuse of discretion can spell the
difference in deciding whether a case filed directly with the Supreme Court
has been properly filed.
485
485
A.2.d. Exhaustion of Available Remedies
A basic requirement under Rule 65 is that there be “no other plain, speedy
and adequate remedy found in law,”44 which requirement the expanded
jurisdiction provision does not expressly carry. Nevertheless, this
requirement is not a significant distinction in using the remedy of certiorari
under the traditional and the expanded modes. The doctrine of exhaustion of
administrative remedies applies to a petition for certiorari, regardless of the
act of the administrative agency concerned, i.e., whether the act concerns a
quasi-judicial, or quasi-legislative function, or is purely regulatory.45
Consider in this regard that once an administrative agency has been

empowered by Congress to undertake a sovereign function, the agency
should be allowed to perform its function to the full extent that the law
grants. This full extent covers the authority of superior officers in the
administrative agencies to correct the actions of subordinates, or for collegial
bodies to reconsider their own decisions on a motion for reconsideration.
Premature judicial intervention would interfere with this administrative
mandate, leaving administrative action incomplete; if allowed, such
premature judicial action through a writ of certiorari, would be a usurpation
that vio-
_______________
45 The doctrine of exhaustion of administrative remedies applies regardless

of the kind of suit initiated before the courts. Courts, for reasons of law,
comity and convenience, should not entertain suits unless the available
administrative remedies have first been resorted to and the proper authorities
have been given an appropriate opportunity to act and correct their alleged
errors, if any, committed in the administrative forum. Factoran, Jr. v. Court
of Appeals, G.R. No. 93540, December 13, 1999, 320 SCRA 530, 539,
citing University of the Philippines v. Catungal, Jr., G.R. No. 121863, May
5, 1997, 272 SCRA 221, 240; Carale v. Abarintos, 336 Phil. 126, 137; 269
SCRA 132, 240-241 (1997).
486
486

lates the separation of powers principle that underlies our Constitution.46
In every case, remedies within the agency’s administrative process must be

exhausted before external remedies can be applied. Thus, even if a
governmental entity may have committed a grave abuse of discretion,
litigants should, as a rule, first ask reconsideration from the body itself, or a
review thereof before the agency concerned. This step ensures that by the
time the grave abuse of discretion issue reaches the court, the administrative
agency concerned would have fully exercised its jurisdiction and the court
can focus its attention on the questions of law presented before it.
Additionally, the failure to exhaust administrative remedies affects the

ripeness to adjudicate the constitutionality of a governmental act, which in
turn affects the existence of the need for an actual case or controversy for the
courts to exercise their power of judicial review.47 The need for ripeness —
an aspect of the timing of a case or controversy does not change regardless
of whether the issue of constitutionality reaches the Court through the tradi-
_______________
46 Merida Water District v. Bacarro, G.R. No. 165993, September 30,

2008, 567 SCRA 203, citing Sunville Timber Products, Inc. v. Abad, G.R.
No. 85502, February 24, 1992, 206 SCRA 482, 486-487.
47 See the Court’s discussion in Abakada Guro Partylist v. Purisima, G.R.
No. 166715, August 14, 2008, 562 SCRA 251, viz.:
An actual case or controversy involves a conflict of legal rights, an assertion

of opposite legal claims susceptible of judicial adjudication. A closely
related requirement is ripeness, that is, the question must be ripe for
adjudication. A constitutional question is ripe for adjudication when the
challenged governmental act has a direct and existing adverse effect on the
individual challenging it. Thus, to be ripe for judicial adjudication, the
petitioner must show an existing personal stake in the outcome of the case or
an existing or imminent injury to himself that can be redressed by a
favorable decision of the Court.
487
487

tional means, or through the Court’s expanded jurisdiction. In fact,

separately from ripeness, one other concept pertaining to judicial review is
intrinsically connected to it; the concept of a case being moot and
academic.48
Both these concepts relate to the timing of the presentation of a controversy

before the Court — ripeness relates to its prematurity, while mootness
relates to a belated or unnecessary judgment on the issues. The Court cannot
preempt the actions of the parties, and neither should it (as a rule) render
judgment after the issue has already been resolved by or through external
developments.
The importance of timing in the exercise of judicial review highlights and

reinforces the need for an actual case or controversy an act that may violate
a party’s right. Without any completed action or a concrete threat of injury
to the petitioning party, the act is not yet ripe for adjudication. It is merely a
hypothetical problem. The challenged act must have been accomplished or
performed by either branch or instrumentality of government before a court
may come into the picture, and the petitioner must allege the existence of an
immediate or threatened injury to itself as a result of the challenged action.
In these lights, a constitutional challenge, whether presented through the

traditional route or through the Court’s
_______________
48 A case or issue is considered moot and academic when it ceases to

present a justiciable controversy by virtue of supervening events, so that an
adjudication of the case or a declaration on the issue would be of no
practical value or use. In such instance, there is no actual substantial relief
which a petitioner would be entitled to, and which would be negated by the
dismissal of the petition. Courts generally decline jurisdiction over such case
or dismiss it on the ground of mootness. Carpio v. Court of Appeals, G.R.
No. 183102, February 27, 2013, 692 SCRA 162, 174, citing Osmeña III v.
Social Security System of the Philippines, 559 Phil. 723, 735; 533 SCRA
313, 327 (2007).
488
488

expanded jurisdiction, requires compliance with the ripeness requirement. In

the case of administrative acts, ripeness manifests itself through compliance
with the doctrine of exhaustion of administrative remedies.
In like manner, an issue that was once ripe for resolution but whose
resolution, since then, has been rendered unnecessary, needs no resolution
from the Court, as it presents no actual case or controversy and likewise
merely presents a hypothetical problem. In simpler terms, a case is moot and
academic when an event supervenes to render a judgment over the issues
unnecessary and superfluous.
Without the element of ripeness or a showing that the presented issue is

moot and academic, petitions challenging the constitutionality of a law or
governmental act are vulnerable to dismissal.
Not to be forgotten is that jurisprudence also prohibits litigants from

immediately seeking judicial relief without first exhausting the available
administrative remedies for practical reasons.49
From the perspective of practicality, immediate resort to the courts on issues

that are within the competence of administrative agencies to resolve, would
unnecessarily clog the courts’ dockets. These issues, too, usually involve
technical considerations that are within the agency’s specific competence
and which, for the courts, would require additional time and resources to
study and consider.50 Of course, the Supreme Court cannot really avoid the
issues that a petition for certiorari, filed with the lower courts may present;
the case may be
_______________
49 Associated Communications and Wireless Services, Ltd. v. Dumlao, 440

Phil. 787, 801-802; 392 SCRA 269, 281 (2002); Zabat v. Court of Appeals,
393 Phil. 195, 206; 338 SCRA 551, 560 (2000).
50 See Antipolo Realty Corp. v. National Housing Authority, No. L-50444,

August 31, 1987, 153 SCRA 399, 405; University of the Philippines v.
Catungal, Jr., supra note 45.
489
489

bound ultimately to reach the Court, albeit as an appeal from the rulings of
the lower courts.
3. Situations Where a Petition

for Certiorari May Be Used
There are two distinct situations where a writ of certiorari or prohibition may
be sought. Each situation carries requirements, peculiar to the nature of each
situation, that lead to distinctions that should be recognized in the use of
certiorari under Rule 65 and under the courts’ expanded jurisdiction.
The two situations differ in the type of questions raised. The first is the
constitutional situation where the constitutionality of acts are questioned.
The second is the non-constitutional situation where acts amounting to grave
abuse of discretion are challenged without raising constitutional questions or
violations.
The process of questioning the constitutionality of a governmental action

provides a notable area of comparison between the use of certiorari in the
traditional and the expanded modes.
Under the traditional mode, plaintiffs question the constitutionality of a

governmental action through the cases they file before the lower courts; the
defendants may likewise do so when they interpose the defense of
unconstitutionality of the law under which they are being sued. A petition
for declaratory relief may also be used to question the constitutionality or
application of a legislative (or quasi-legislative) act before the court.51
For quasi-judicial actions, on the other hand, certiorari is an available
remedy, as acts or exercise of functions that violate the Constitution are
necessarily committed with grave abuse of discretion for being acts
undertaken outside the
_______________
51 See Rules of Court, Rule 63.
490
490

contemplation of the Constitution. Under both remedies, the petitioners

should comply with the traditional requirements of judicial review,
discussed below.52 In both cases, the decisions of these courts reach the
Court through an appeal by certiorari under Rule 45.
In contrast, existing Court rulings in the exercise of its expanded jurisdiction

have allowed the direct filing of petitions for certiorari and prohibition with
the Court to question, for grave abuse of discretion, actions or the exercise of
a function that violate the Constitution.53 The governmental action may be
questioned regardless of whether it is quasi--judicial, quasi-legislative, or
administrative in nature. The Court’s expanded jurisdiction does not do
away with the actual case or controversy requirement for presenting a
constitutional issue, but effectively simplifies this requirement by merely
requiring a prima facie showing of grave abuse of discretion in the exercise
of the governmental act.54
To return to judicial review heretofore mentioned, in constitutional cases

where the question of constitutionality of a
_______________
52 Id., Rule 65.
53 Supra note 36.
54 See Justice Arturo Brion’s discussion on the expanded jurisdiction of the

Court in Imbong v. Ochoa, Jr., supra note 36 at pp. 279, 281-294; pp. 489-
491; Araullo v. Aquino III, supra note 36 at pp. 641, 681-696; p. 29; and
Saguisag v. Executive Secretary, supra note 36 at pp. 5-12; pp. 541-546.
In Imbong, Justice Brion pointed out:
Under the expanded judicial power, justiciability expressly depends only on

the presence or absence of grave abuse of discretion, as distinguished from a
situation where the issue of constitutional validity is raised within a
traditionally justiciable case where the elements of actual controversy based
on specific legal rights must exist. In fact, even if the requirements for strict
justiciability are applied, these requisites can already be taken to be present
once grave abuse of discretion is prima facie shown to be present. Supra
note 36 at p. 286; p. 490.
491
491

governmental action is raised, the judicial power the courts exercise is

likewise identified as the power of judicial review — the power to review
the constitutionality of the actions of other branches of government.55 As a
rule, as required
_______________
55 Garcia v. Executive Secretary, 602 Phil. 64; 583 SCRA 119 (2009).
Judicial review was introduced as part of the colonial control of legislation

in the Philippines. The Organic Acts (Philippine Bill of 1902 and Jones Law
of 1916) defined the authority and limit of the powers of the government in
the Philippines. In this sense they were like constitutions, albeit they did not
proceed from the sovereign will of the Filipino people, but were statutes
enacted by the US Congress.
These organic acts provided for the review by the US Supreme Court of
decisions of the Philippine Supreme Court “in all actions, cases, causes and
proceedings . . . in which the Constitution or any statute, treaty, title, right or
privilege of the United States is involved.”
On this basis, in Casanovas v. Hord (8 Phil. 125 [1907]), the Court declared
Section 134 of Internal Revenue Act No. 1189 void for violating Section 5
of the Philippine Bill of 1902, which in turn provided that “no law impairing
the obligation of contracts shall be enacted.”
The Commonwealth of the Philippines, in adopting the 1935 Constitution,

impliedly recognized judicial review as part of judicial power, Article VIII,
Section 2, viz.:
SEC. 2. x x x the Supreme Court of its original jurisdiction over cases

affecting ambassadors, other public ministers, and consuls, nor of its
jurisdiction to review, revise, reverse, modify, or affirm on appeal, certiorari,
or writ of error, as the law or the rules of court may provide, final judgments
and decrees of inferior courts in —
(1) All cases in which the constitutionality or validity of any treaty, law,
ordinance, or executive order or regulation is in question.
x x x x (emphasis supplied)
Similar language has been used in Section 5, Article X of the 1973

Constitution on the jurisdiction of the Supreme Court, and in Section 4,
Article VIII of the 1987 Constitution.
492
492

by the hierarchy of courts principle, these cases are filed with the lowest
court with jurisdiction over the matter. The judicial review that the courts
undertake requires:
(1) there be an actual case or controversy calling for the exercise of judicial
power;
(2) the person challenging the act must have “standing” to challenge; he
must have a personal and substantial interest in the case such that he has
sustained, or will sustain, direct injury as a result of its enforcement;
(3) the question of constitutionality must be raised at the earliest possible

opportunity; and
(4) the issue of constitutionality must be the very lis mota of the case.56
_______________
To this day, judicial review has been part of the Philippine legal system, and
Angara v. Electoral Commission (63 Phil. 139 [1936]) exposition on the
power of judicial review still holds doctrinal value, viz.:
The Constitution is a definition of the powers of government. Who is to

determine the nature, scope and extent of such powers? The Constitution
itself has provided for the instrumentality of the judiciary as the rational
way. And when the judiciary mediates to allocate constitutional boundaries,
it does not assert any superiority over the other departments; it does not in
reality nullify or invalidate an act of the legislature, but only asserts the
solemn and sacred obligation assigned to it by the Constitution to determine
conflicting claims of authority under the Constitution and to establish for the
parties in an actual controversy the rights which that instrument secures and
guarantees to them. This is in truth all that is involved in what is termed
“judicial supremacy” which properly is the power of judicial review under
the Constitution.
56 Id., at p. 73; p. 129, citing Francisco, Jr. v. Nagmamalasakit na mga

Manananggol ng mga Manggagawang Pilipino, Inc., supra note 33 at pp.
892-893; pp. 161-162, citing Angara v. Electoral Commission, id.
493
493

The lower court’s decision under the constitutional situation reaches the
Supreme Court through the appeal process, interestingly, through a petition
for review on certiorari under Rule 45 of the Rules of Court.
In the non-constitutional situation, the same requirements essentially apply,

less the requirements specific to the constitutional issues. In particular, there
must be an actual case or controversy and the compliance with requirements
of standing, as affected by the hierarchy of courts, exhaustion of remedies,
ripeness, prematurity, and the moot and academic principles.
A.3.a. The “Standing” Requirement

Under both situations, the party bringing suit must have the necessary
“standing.” This means that this party has, in its favor, the demandable and
enforceable right or interest giving rise to a justiciable controversy after the
right is violated by the offending party.
The necessity of a person’s standing to sue derives from the very definition
of judicial power. Judicial power includes the duty of the courts to settle
actual controversies involving rights which are legally demandable and
enforceable. Necessarily, the person availing of a judicial remedy must show
that he possesses a legal interest or right to it, otherwise, the issue presented
would be purely hypothetical and academic. This concept has been
translated into the requirement to have “standing” in judicial review,57 or to
be considered as a “real
_______________
57 As established by jurisprudence, standing involves a personal and

substantial interest in the case such that the petitioner has sustained, or will
sustain, direct injury as a result of the violation of its rights. Kilosbayan,
Incorporated v. Morato, G.R. No. 118910, July 17, 1995, 246 SCRA 540,
562-563, citing Baker v. Carr, 369 U.S. 186, 7 L. Ed. 633 (1962); Bayan
(Bagong Alyansang Makabayan) v. Zamo-ra, G.R. No. 138570, October 10,
2000, 342 SCRA 449, 478; Galicto v. Aquino III, 683 Phil. 141, 170-174;
667 SCRA 150, 170-174 (2012).
494
494

party-in-interest” in civil actions,58 as the “offended party” in criminal
actions59 and the “interested party” in special proceedings.60
While the Court follows these terms closely in both non-constitutional cases
and constitutional cases under the traditional mode, it has relaxed the rule in
constitutional cases handled under the expanded jurisdiction mode in the
latter case, a prima facie showing that the questioned governmental act
violated the Constitution, effectively disputably shows an injury to the
sovereign Filipino nation who approved the Constitution and endowed it
with authority, such that the challenged act may be questioned by any
Philippine citizen before the Supreme Court.61 In this manner, the
“standing” requirement is relaxed compared with the standard of personal
stake or injury that the traditional petition requires.
The relaxation of the standing requirement has likewise been achieved

through the application of the “transcendental importance doctrine” under
the traditional mode for constitutional cases.62 (Under the traditional mode,
“transcendental importance” not only relaxes the standing requirement, but
also allows immediate access to this Court, thus exempting the petitioner
from complying with the hierarchy of courts requirement.)63
_______________
59 People v. Santiago, supra note 39.
60 See the following provisions of the Rules of Court on Special

Proceedings: Rule 74, Sec. 2; Rule 76, Sec. 1; Rule 79, Sec. 1; Rule 89, Sec.
1; Rule 90, Sec. 1; Rule 93, Sec. 4; Rule 107, Sec. 1; Rule 108, Sec. 1; and
Rule 109, Sec. 1.
61 Supra note 54.
62 David v. Gloria Macapagal-Arroyo, G.R. No. 171396, May 3, 2006, 489

SCRA 160, 224.
63 Notably, Justice Arturo Brion’s Separate Opinion in Araullo v. Aquino

III, supra note 36 at pp. 661, 684; p. 250, pointed out that “The traditional
rules on hierarchy of courts and transcendental importance, far from being
grounds for the dismissal of the petition
495
495

More importantly perhaps, the prima facie showing of grave abuse of

discretion in constitutional cases also implies that the injury alleged is actual
or imminent, and not merely hypothetical.
Through this approach, the Court’s attention is directed towards the

existence of an actual case or controversy — that is, whether the government
indeed violated the Constitution to the detriment of the Filipino people —
without the distractions of determining the existence of transcendental
importance indicators unrelated to the dispute and which do not at all
determine whether the Court properly exercises its power of judicial review.
Parenthetically, in the traditional mode, the determination of the

transcendental importance of the issue presented,64
_______________
raising the question of unconstitutionality, are necessarily reduced to rules

relating to the level of court that should handle the controversy, as directed
by the Supreme Court.”
64 The Court has yet to determine what falls within the general description
of “transcendental importance.” Note that despite the vagueness of this
concept, its application has resulted in the relaxation of recognized rules in
constitutional litigation and has led to a nonuniform approach in exercising
judicial review.
In other words, no element of predictability definitively exists in applying

the transcendental importance doctrine. The Court has merely been using
“determinants” of transcendental importance in place of a clear definition of
the term. These “determinants” include: (1) the character of the funds or
other assets involved in the case; (2) the presence of a clear case of disregard
of a constitutional or statutory prohibition by the public respondent agency
or instrumentality of the government; and (3) the lack of any other party
with a more direct and specific interest in raising the questions being raised.
Senate of the Philippines v. Ermita, G.R. No. 169777, April 20, 2006, 488
SCRA 1, 39-40; and Francisco, Jr. v. Nagmamalasakit na mga Manananggol
ng mga Manggagawang Pilipino, Inc., supra note 33 at p. 139, citing
Kilosbayan, Incorporated v. Guingona, G.R. No. 113375, May 5, 1994, 232
SCRA 110, 155-157.
496
496

aside from simply relaxing the standing requirement, may result in the
dilution of the actual case or controversy element because of the inextricable
link between standing and the existence of an actual case or controversy.
Consider, in this regard, that an actual case or controversy that calls for the
exercise of judicial power necessarily requires that the party presenting it
possesses the standing to mount a challenge to a governmental act. A case or
controversy exists when there is an actual dispute between parties
_______________
These determinants, however, are largely irrelevant to the existence of an
actual case or controversy and as such should not be made the basis of
relaxing the standing requirement.
That the funds or assets involved in the case has a “character” —

presumably public or that which the public has an interest in — does not
have any connection to whether the petition presents an actual controversy.
That there is no other party with a more direct and specific interest in raising
the questions raised is an even more bothersome determinant: the fact that
there is no party with a direct and specific interest necessarily implies that
there is no dispute to begin with.
Concededly, there may be incidents where a governmental agency’s

disregard of clear constitutional and statutory prohibitions imply the
existence of a dispute. The determinant, however, is too vague and does not
require that the disregard relate to the issues raised in the petition.
The standing requirement may seem innocuous at first glance, but it is

inextricably linked to the presence of an actual case or controversy so that it
should not be relaxed on grounds that are outside of the issues presented
before the Court. By relaxing the standing requirement, we also relax the
case or controversy requirement. Without a showing of direct injury on the
part of the petitioner, his legal right in the dispute is also questionable. How
could there be a legal right subject of a dispute, when the party putting it
forward failed to show that he has been injured, or is about to be injured by
the governmental act? When we use determinants outside of and irrelevant
to the existence of an actual case or controversy, we run the risk of deciding
cases that may not have a justiciable issue to begin with, and thus go outside
the bounds of judicial review.
497
497
over their legal rights, which remains in conflict at the time the dispute is
presented before the court.65 Standing, on the other hand, involves a
personal and substantial interest in the case because the petitioner has
sustained, or will sustain, direct injury as a result of the violation of its
right.66
With the element of “standing” (or the petitioner’s personal or substantial

stake or interest in the case) relaxed, the practical effect is to dilute the need
to show that an immediate
_______________
65 Supra note 55 at p. 129.
66 Kilosbayan, Incorporated v. Morato, supra note 57; Bayan (Bagong

Alyansang Makabayan) v. Zamora, supra note 57; Galicto v. Aquino III,
supra note 57.
See also Justice Arturo D. Brion’s Dissenting Opinion in Diocese of

Bacolod v. Comelec, supra note 36, pointing out that:
Failure to meet any of these requirements [for judicial review] justifies the
Court’s refusal to exercise its power of judicial review under the Court’s
traditional power. The Court, however, has, in several instances, opted to
relax one or more of these requirements to give due course to a petition
presenting issues of transcendental importance to the nation.
In these cases, the doctrine of transcendental importance relaxes the standing

requirement, and thereby indirectly relaxes the injury embodied in the actual
case or controversy requirement. Note at this point that an actual case or
controversy is present when the issues the case poses are ripe for
adjudication, that is, when the act being challenged has had a direct adverse
effect on the individual challenging it. Standing, on the other hand, requires
a personal and substantial interest manifested through a direct injury that the
petitioner has or will sustain as a result of the questioned act.
Thus, when the standing is relaxed because of the transcendental importance

doctrine, the character of the injury presented to fulfill the actual case or
controversy requirements likewise tempered. When we, for instance, say that
the petitioners have no standing as citizens or as taxpayers but we
nevertheless give the petition due course, we indirectly acknowledge that the
injury that they had or will sustain is not personally directed towards them,
but to the more general and abstract Filipino public.
498
498

actual dispute over legal rights did indeed take place and is now the subject
of the action before the court.
In both the traditional and the expanded modes, this relaxation carries a
ripple effect under established jurisprudential rulings,67 affecting not only
the actual case or controversy
_______________
67 See, for example, Justice Arturo D. Brion’s Opinion in Cawad v. Abad,

G.R. No. 207145, July 28, 2015, 764 SCRA 1, 32, noting problems when the
Court relaxes the rules on certiorari to accommodate quasi-legislative acts,
because of the “paramount importance” of the case, viz.:
In several cases, however, we reversed the decision of the Court of Appeals

denying a petition for certiorari against a quasi-legislative act based on the
terms of the Rules of Court. In these reversals, we significantly noted the
paramount importance of resolving the case on appeal and, on this basis,
relaxed the requirements of the petition for certiorari filed in the lower court.
This kind of approach, to my mind, leads to an absurd situation where we

effectively hold that the CA committed an error of law when it applied the
rules as provided in the Rules of Court.
To be sure, when we so act, we send mixed and confusing signals to the

lower courts, which cannot be expected to know when a certiorari petition
may or should be allowed despite being the improper remedy.
Additionally, this kind of approach reflects badly on the Court as an

institution, as it applies the highly arbitrary standard of ‘paramount
importance’ in place of what is written in the Rules. A suspicious mind may
even attribute malicious motives when the Court invokes a highly subjective
standard such as “paramount importance.”
The public, no less, is left confused by the Court’s uneven approach. Thus, it
may not hesitate to file a petition that violates or skirts the margins of the
Rules or its jurisprudence, in the hope that the Court would consider its
presented issue to be of paramount importance and on this basis take
cognizance of the petition.
499
499

requirement, but compliance with the doctrine of hierarchy of courts,

discussed in greater detail below.
A.3.b. The Hierarchy of
Courts Principle
Another requirement that a certiorari petition carries, springs from the

principle of “hierarchy of courts” which recognizes the various levels of
courts in the country as they are established under the Constitution and by
law, their ranking and effect of their rulings in relation with one another, and
how these different levels of court interact with one another.68 Since courts
are established and given their defined jurisdictions by law, the hierarchy of
the different levels of courts should leave very little opening for flexibility
(and potential legal questions), but for the fact that the law creates courts at
different and defined levels but with concurrent jurisdictions.
The Constitution itself has partially determined the judicial hierarchy in the
Philippine legal system by designating the Supreme Court as the highest
court with irreducible powers; its rulings serve as precedents that other
courts must follow69 because they form part of the law of the land.70 As a
rule, the Supreme Court is not a trial court and rules only on questions of
law, in contrast with the Court of Appeals and
_______________
68 See Rayos v. City of Manila, 678 Phil. 952; 662 SCRA 684 (2011).
69 See Section 1, Article VIII of the 1987 Constitution, vesting judicial

power in one Supreme Court and other courts as may be created by law.
Presently, Batas Pambansa Blg. No. 129 established the courts of general
jurisdiction in the Philippines, and provides for their hierarchy.
70 See Section 4, paragraph 3 of the 1987 Constitution impliedly

recognizing the binding effect of the doctrines created by the cases
promulgated by the Court; note, too, Article 8 of the Civil Code providing
that “Art. 8. Judicial decisions applying or interpreting the laws or the
Constitution shall form a part of the legal system of the Philippines.”
500
500

other intermediate courts71 which rule on both questions of law and of fact.
At the lowest level of courts are the municipal and the regional trial courts
which handle questions of fact and law at the first instance according to the
jurisdiction granted to them by law.
Petitions for certiorari and prohibition fall under the concurrent jurisdiction
of the regional trial courts and the higher courts, all the way up to the
Supreme Court. As a general rule, under the hierarchy of courts principle,
the petition must be brought to the lowest court with jurisdiction;72 the
_______________
71 Far Eastern Surety and Insurance Co., Inc. v. People, G.R. No. 170618,
November 20, 2013, 710 SCRA 358.
72 Thus, in Rayos v. City of Manila, supra note 68 at p. 957; p. 689, the

Court held:
Indeed, this Court, the Court of Appeals and the Regional Trial Courts
exercise concurrent jurisdiction to issue writs of certiorari, prohibition,
mandamus, quo warranto, habeas corpus and injunction. However, such
concurrence in jurisdiction does not give petitioners unbridled freedom of
choice of court forum. In Heirs of Bertuldo Hinog v. Melicor, citing People
v. Cuaresma, the Court held:
This Court’s original jurisdiction to issue writs of certiorari is not exclusive.

It is shared by this Court with Regional Trial Courts and with the Court of
Appeals. This concurrence of jurisdiction is not, however, to be taken as
according to parties seeking any of the writs an absolute, unrestrained
freedom of choice of the court to which application therefor will be directed.
There is after all a hierarchy of courts. That hierarchy is determinative of the
venue of appeals, and also serves as a general determinant of the appropriate
forum for petitions for the extraordinary writs. A becoming regard for that
judicial hierarchy most certainly indicates that petitions for the issuance of
extraordinary writs against first level (“inferior”) courts should be filed with
the Regional Trial Court, and those against the latter, with the Court of
Appeals. A direct invocation of the Supreme Court’s original jurisdiction to
issue these writs should be allowed
501
501

petition brought to the higher courts may be dismissed based on the

hierarchy principle. Cases, of course, may ultimately reach the Supreme
Court through the medium of an appeal.
The recognition of exceptions to the general rule is provided by the Supreme

Court through jurisprudence, i.e., through the cases that recognized the
propriety of filing cases directly with the Supreme Court. This is possible as
the Supreme Court has the authority to relax the application of its own
rules.73
As observed above, this relaxation waters down other principles affecting

the remedy of certiorari. While the relaxation may result in greater and
closer supervision by the Court over the lower courts and quasi-judicial
bodies under Rule 65, the effect may not always be salutary in the long term
when it is
_______________
only when there are special and important reasons therefor, clearly and
specifically set out in the petition. This is [an] established policy. It is a
policy necessary to prevent inordinate demands upon the Court’s time and
attention which are better devoted to those matters within its exclusive
jurisdiction, and to prevent further overcrowding of the Court’s docket.
(Emphasis supplied, citations omitted)
73 Under the principle of hierarchy of courts, direct recourse to this Court is

improper because the Supreme Court is a court of last resort and must
remain to be so for it to satisfactorily perform its constitutional functions,
thereby allowing it to devote its time and attention to matters within its
exclusive jurisdiction and preventing the overcrowding of its docket.
Nonetheless, the invocation of this Court’s original jurisdiction to issue writs
of certiorari has been allowed in certain instances on the ground of special
and important reasons clearly stated in the petition, such as, (1) when
dictated by the public welfare and the advancement of public policy; (2)
when demanded by the broader interest of justice; (3) when the challenged
orders were patent nullities; or (4) when analogous exceptional and
compelling circumstances called for and justified the immediate and direct
handling of the case. (emphasis supplied) Dy v. Bibat-Palamos, 717 Phil.
776, 782-783; 705 SCRA 613, 621-622 (2013).
502
502

considered that this may affect the constitutional standards for the exercise
of judicial power, particularly the existence of an actual case or controversy.
The “transcendental importance” standard, in particular, is vague, open-
ended and value-laden, and should be limited in its use to exemptions from
the application of the hierarchy of courts principle. It should not carry any
ripple effect on the constitutional requirement for the presence of an actual
case or controversy.
4. The petition for certiorari

and prohibition against the
DOH Letter was filed before
the wrong court
In the present case, the act alleged to be unconstitutional refers to the cease
and desist order that the DOH issued against GAMCA’s referral decking
system. Its constitutionality was questioned through a petition for certiorari
and prohibition before the RTC. The case reached this Court through a Rule
45 appeal by certiorari under the traditional route.
In using a petition for certiorari and prohibition to assail the DOH-CDO

letters, GAMCA committed several procedural lapses that rendered its
petition readily dismissible by the RTC. Not only did the petitioner present a
premature challenge against an administrative act; it also committed the
grave jurisdictional error of filing the petition before the wrong court.
503
503

A.4.a. The DOH CDO letters were
issued in the exercise of the
DOH’s quasi-judicial func-
tions, and could be as-
sailed through Rule 65 on
certiorari and prohibition
A cease and desist order is quasi-judicial in nature, as it applies a legislative

policy to an individual or group within the coverage of the law containing
the policy.
The Court, in Municipal Council of Lemery, Batangas v. Provincial Board

of Batangas,74 recognized the difficulty of defining the precise demarcation
line between what are judicial and what are administrative or ministerial
functions, as the exercise of judicial functions may involve the performance
of legislative or administrative duties, and the performance of administrative
or ministerial duties may, to some extent, involve the exercise of functions
judicial in character. Thus, the Court held that the nature of the act to be
performed, rather than of the office, board, or body which performs it,
should determine whether or not an action is in the discharge of a judicial or
a quasi-judicial function.75
_______________
74 56 Phil. 260 (1931).
75 Id., at p. 268. This statement finds full support from the current wording
of the Rule on Certiorari, Rule 65 whose Section 1 provides:
Section 1. Petition for certiorari.—When any tribunal, board or officer

exercising judicial or quasi-judicial functions has acted without or in excess
of its or his jurisdiction, or with grave abuse of discretion amounting to lack
or excess of jurisdiction, and there is no appeal, or any plain, speedy, and
adequate remedy in the ordinary course of law, a person aggrieved thereby
may file a verified petition in the proper court, alleging the facts with
certainty and praying that judgment be rendered annulling or modifying the
proceedings of such
504
504

Generally, the exercise of judicial functions involves the determination of

what the law is, and what the legal rights of parties are under this law with
respect to a matter in controversy. Whenever an officer is clothed with this
authority and undertakes to determine those questions, he acts judicially.76
In the administrative realm, a government officer or body exercises a quasi-

judicial function when it hears and determines questions of fact to which the
legislative policy is to apply, and decide, based on the law’s standards,
matters relating to the enforcement and administration of the law.77
The DOH CDO letter directed GAMCA to cease and desist from engaging
in the referral decking system practice within three days from receipt of the
letter. By issuing this CDO letter implementing Section 16 of RA No.
10022, the DOH (1) made the finding of fact that GAMCA implements the
referral decking system, and (2) applied Section 16 of RA No. 10022, to
conclude that GAMCA’s practice is prohibited by law and should be
stopped.
From this perspective, the DOH acted in a quasi-judicial capacity: its CDO
letter determined a question of fact, and applied the legislative policy
prohibiting the referral decking system practice.
Notably, cease and desist orders have been described and treated as quasi-
judicial acts in past cases, and had even been described as similar to the
remedy of injunction granted by the courts.78
_______________
tribunal, board or officer, and granting such incidental reliefs as law and
justice may require.
76 Santiago, Jr. v. Bautista, No. L-25024, March 30, 1970, 32 SCRA 188,
198, citing In State ex rel. Board of Commrs. v. Dunn (86 Minn. 301, 304).
77 Bedol v. Commission on Elections, G.R. No. 179830, December 3,

2009, 606 SCRA 554, 569.
78 The Court has consistently recognized the grant of the power to issue a
cease and desist order as an exercise of a government
505
505

A.4.b. The petitions for certiorari

and prohibition against
the DOH CDO letters fall
within the jurisdiction of
the Court of Appeals.
Since the CDO Letter was a quasi-judicial act, the manner by which
GAMCA assailed it before the courts of law had been erroneous; the RTC
should not have entertained GAMCA’s petition.
First, acts or omissions by quasi-judicial agencies, regardless of whether the
remedy involves a Rule 43 appeal or a Rule 65 petition for certiorari, is
cognizable by the Court of Appeals. In particular, Section 4, Rule 65 of the
Rules of Court provides:
Section 4. When and where petition filed.—The petition shall be filed not
later than sixty (60) days from notice of the judgment, order or resolution. In
case a motion for reconsideration or new trial is timely filed, whether such
motion is required or not, the sixty (60) day period shall be counted from
notice of the denial of said motion.
The petition shall be filed in the Supreme Court or, if it relates to the acts or
omissions of a lower court or of a corporation, board, officer or person, in
the Regional
_______________
agency’s quasi-judicial function. See Monetary Board v. Philippine Veterans

Bank, G.R. No. 189571, January 21, 2015, 746 SCRA 508, 518; Vivas v.
Monetary Board of the Bangko Sentral ng Pilipinas, G.R. No. 191424,
August 7, 2013, 703 SCRA 290, 304; Bank of Commerce v. Planters
Development Bank, G.R. Nos. 154470-71, September 24, 2012, 681 SCRA
521, 555, citing United Coconut Planters Bank v. E. Ganzon, Inc., G.R. No.
168859, June 30, 2009, 591 SCRA 321, 338-341; Freedom from Debt
Coalition v. Energy Regulatory Commission, G.R. No. 161113, June 15,
2004, 432 SCRA 157; and Laguna Lake Development Authority v. Court of
Appeals, G.R. No. 110120, March 16, 1994, 231 SCRA 292.
506
506

Trial Court exercising jurisdiction over the territorial area as defined by the
Supreme Court. It may also be filed in the Court of Appeals whether or not
the same is in aid of its appellate jurisdiction, or in the Sandiganbayan if it is
in aid of its appellate jurisdiction. If it involves the acts or omissions of a
quasi-judicial agency, unless otherwise provided by law or these Rules, the
petition shall be filed in and cognizable only by the Court of Appeals.
(emphasis, italics, and underscoring supplied)
Since the DOH is part of the Executive Department and has acted in its
quasi-judicial capacity, the petition challenging its CDO letter should have
been filed before the Court of Appeals. The RTC thus did not have
jurisdiction over the subject matter of the petitions and erred in giving due
course to the petition for certiorari and prohibition against the DOH CDO
letters. In procedural terms, petitions for certiorari and prohibition against a
government agency are remedies available to assail its quasi-judicial acts,
and should thus have been filed before the CA.
The provision in Section 4, Rule 65 requiring that certiorari petitions

challenging quasi-judicial acts to be filed with the CA is in full accord with
Section 9 of Batas Pambansa Blg. 12979 on the same point. Section 9
provides:
Section 9. Jurisdiction.—The Court of Appeals shall exercise:
1. Original jurisdiction to issue writs of mandamus, prohibition, certiorari,

habeas corpus, and quo warranto, and auxiliary writs or processes, whether
or not in aid of its appellate jurisdiction;
xxxx
_______________
79 The Judiciary Reorganization Act of 1980.

507
507

3. Exclusive appellate jurisdiction over all final judgments, resolutions,

orders or awards of Regional Trial Courts and quasi--judicial agencies,
instrumentalities, boards or commission, including the Securities and
Exchange Commission, the Social Security Commission, the Employees
Compensation Commission and the Civil Service Commission, except those
falling within the appellate jurisdiction of the Supreme Court in accordance
with the Constitution, the Labor Code of the Philippines under Presidential
Decree No. 442, as amended, the provisions of this Act, and of subparagraph
(1) of the third paragraph and subparagraph 4 of the fourth paragraph of
Section 17 of the Judiciary Act of 1948.
xxxx
(emphases, italics, and underscoring supplied)
Thus, by law and by Supreme Court Rules, the CA is the court with the
exclusive original jurisdiction to entertain petitions for certiorari and
prohibition against quasi-judicial agencies. In short, GAMCA filed its
remedy with the wrong court.
A.4.c The petitions for certiorari

DOH CDO letters were pre-
mature challenges — they
failed to comply with the re-
quirement that there be “no
other plain, speedy and ade-
quate remedy” and with the
doctrine of exhaustion of ad-
ministrative remedies
Second, the Regional Trial Court of Pasay City unduly disregarded the
requirements that there be “no other plain, speedy and adequate remedy at
law” and the doctrine of ex-
508
508

haustion of administrative remedies, when it gave due course to the

certiorari and prohibition petition against the DOH’s CDO.
Under Chapter 8, Book IV of Executive Order (EO) No. 292,80 Series of

1987, the DOH Secretary “shall have supervision and control over the
bureaus, offices, and agencies under him”81 and “shall have authority over
and responsibility for x x x operation” of the Department.
Section 1, Chapter 1, Title I, Book III of EO No. 292 in relation with Article
VII, Sections 1 and 17 of the Constitution,82 on the other hand, provides
that the “President shall have control of all the executive departments,
bureaus, and offices.”
These provisions both signify that remedies internal to the Executive Branch
exist before resorting to judicial remedies:
_______________
80 Administrative Code of 1987, enacted on July 25, 1987.
81 Section 38, Chapter 7, Book IV of Executive Order No. 292 defines

supervision and control in this wise:
Supervision and Control.—Supervision and control shall include authority to

act directly whenever a specific function is entrusted by law or regulation to
a subordinate; direct the performance of duty; restrain the commission of
acts; review, approve, reverse or modify acts and decisions of subordinate
officials or units; determine priorities in the execution of plans and
programs; and prescribe standards, guidelines, plans and programs. Unless a
different meaning is explicitly provided in the specific law governing the
relationship of particular agencies, the word “control” shall encompass
supervision and control as defined in this paragraph.
82 Article VII, Section 1 of the Constitution states that:
Section 1. The executive power shall be vested in the President of the

Philippines.
Article VII, Section 17, on the other hand, provides:
Section 17. The President shall have control of all the executive
departments, bureaus, and offices. He shall ensure that the laws be faithfully
executed.
509
509

GAMCA could ask the DOH Secretary to reconsider or clarify its letter-
order, after which it could appeal, should the ruling be unfavorable, to the
Office of the President.
Significantly, this was what GAMCA did in the past when the DOH issued
Memorandum Order No. 2008-0210 that prohibited the referral decking
system. GAMCA then asked for the DOH Secretary’s reconsideration, and
subsequently appealed the DOH’s unfavorable decision with the Office of
the President. The OP then reversed Memorandum Order No. 2008-0210
and allowed the referral decking system to continue.
That GAMCA had earlier taken this course indicates that it was not unaware
of the administrative remedies available to it; it simply opted to disregard the
doctrine of exhaustion of administrative remedies and the requirement that
there be no other plain, speedy, and adequate remedy in law when it
immediately filed its petition for certiorari with the RTC.
This blatant disregard of the Rule 65 requirements clearly places GAMCA’s

petition outside the exceptions that we recognized in the past in relaxing
strict compliance with the exhaustion of administrative remedies
requirement.
Jurisprudence83 shows that this Court never hesitated in the past in relaxing
the application of the rules of procedure to accommodate exceptional
circumstances when their strict application would result in injustice. These
instances, founded as they are on equitable considerations, do not include the
undue disregard of administrative remedies, particularly when they are
readily available.84
_______________
83 See, among others, Cipriano v. Marcelino, 150 Phil. 336; 43 SCRA 291
(1972); Republic v. Lacap, G.R. No. 158253, March 2, 2007, 517 SCRA
255; Buston-Arendain v. Gil, G.R. No. 172585, June 26, 2008, 555 SCRA
561; Vigilar v. Aquino, G.R. No. 180388, January 18, 2011, 639 SCRA 72.
84 See Abe-abe v. Manta, No. L-4827, May 31, 1979, 90 SCRA 524;
Sandoval v. Cañeba, G.R. No. 90503, September 27, 1990, 190
510
510

A.4.d. The petitions for certiorari

DOH CDO letters should have
been dismissed outright, as
Rule 65 Petitions for Certio-
rari and Prohibition are ex-
traordinary remedies given
due course only upon compli-
ance with the formal and
substantive requirements
Note, at this point, that Rule 65 petitions for certiorari and prohibition are
discretionary writs, and that the handling court possesses the authority to
dismiss them outright for failure to comply with the form and substance
requirements. Section 6, Rule 65 of the Rules of Court in this regard
provides:
Section 6. Order to comment.—If the petition is sufficient in form and

substance to justify such process, the court shall issue an order requiring the
respondent or respondents to comment on the petition within ten (10) days
from receipt of a copy thereof. Such order shall be served on the respondents
in such manner as the court may direct together with a copy of the petition
and any annexes thereto. (emphasis, italics, and underscoring supplied)
Thus, even before requiring the DOH to comment, the RTC could have
assessed the petition for certiorari and prohibition
_______________
SCRA 77; Merida Water District v. Bacarro, supra note 46; Cabungcal v.
Lorenzo, 623 Phil. 329; 608 SCRA 419 (2009); Addition Hills Mandaluyong
Civic & Social Organization, Inc. v. Megaworld Properties & Holdings, Inc.,
686 Phil. 76; 670 SCRA 83 (2012); Samar II Electric Cooperative, Inc.
(SAMELCO II) v. Seludo, Jr., 686 Phil. 786; 671 SCRA 78 (2012).
511
511

for its compliance with the Rule 65 requirements. At that point, the petition
for certiorari and prohibition should have been dismissed outright, for failing
to comply with Section 1 and Section 4 of Rule 65. When the court instead
took cognizance of the petition, it acted on a matter outside its jurisdiction.
Consequently, the RTC’s resulting judgment is void and carries no legal

effect. The decision exempting GAMCA from the application of the referral
decking system should equally have no legal effect.
Noncompliance with the Section 1, Rule 65 requirement that there be no

other plain, speedy, and adequate remedy in law, on the other hand, is more
than just a pro-forma requirement in the present case. Since the petitions for
certiorari and prohibition challenge a governmental act — i.e., action under
the DOH CDO letters, as well as the validity of the instruments under which
these letters were issued — compliance with Section 1, Rule 65 and the
doctrine of exhaustion of administrative remedies that judicial review
requires is also mandatory. To recall a previous discussion, the exhaustion of
administrative remedies is also an aspect of ripeness in deciding a
constitutional issue.
Thus, GAMCA’s disregard of the Rules of Court not only renders the
petition dismissible for failure to first exhaust administrative remedies; the
constitutional issues GAMCA posed before the RTC were not also ripe for
adjudication.
5. The Regional Trial Court

erred in finding grave abuse
of discretion on the part of
the DOH’s issuance of the
DOH CDO letters
On the merits, we find that the RTC of Pasay reversibly erred in law when it
held that the DOH acted with grave
512
512

abuse of discretion in prohibiting GAMCA from implementing the referral

decking system.
In exempting GAMCA from the referral decking system that RA No. 10022
prohibits, the RTC of Pasay City noted that the regulation per se was not
unconstitutional, but its application to GAMCA would violate the principle
of sovereign equality and independence.
While we agree with the RTC’s ultimate conclusion upholding the

constitutionality of the prohibition against the referral decking system under
RA No. 10022, our agreement proceeds from another reason; we disagree
that the prohibition does not apply to GAMCA and with the consequent
ruling nullifying the DOH’s CDO Letter.
A.5.a. The prohibition against

the referral decking system
under Section 16, RA No.
10022, is a valid exercise of
police power
In its comment, GAMCA asserts that implementing the prohibition against

the referral decking system would amount to an undue taking of property
that violates Article II, Section 2 of the 1987 Constitution.
It submits that the Securities and Exchange Commission had in fact

approved its Articles of Incorporation and Bylaws that embody the referral
decking system; thus, the DOH cannot validly prohibit the implementation
of this system.
GAMCA further claims that its members made substantial investments to

upgrade their facilities and equipment. From this perspective, the August 23,
2010 order constitutes taking of property without due process of law as its
implementation would deprive GAMCA members of their property.
AMCOW responded to these claims with the argument that the DOH CDO
letters implementing RA No. 10022 are consis-
513
513

tent with the State’s exercise of the police power to prescribe regulations to
promote the health, safety, and general welfare of the people. Public interest
justifies the State’s interference in health matters, since the welfare of
migrant workers is a legitimate public concern. The DOH thus merely
performed its duty of upholding the migrant workers’ freedom to consult
their chosen clinics for the conduct of health examinations.
We agree with AMCOW.
The State’s police power85 is vast and plenary86 and the operation of a
business,87 especially one that is imbued with
_______________
85 Police power is the inherent power of the State to regulate or to restrain

the use of liberty and property for public welfare. Gerochi v. Department of
Energy, 554 Phil. 563, 579; 527 SCRA 696, 714 (2007); Didipio Earth--
Savers’ Multi-Purpose Association, Incorporated (DESAMA) v. Gozun,
G.R. No. 157882, March 30, 2006, 485 SCRA 586, 604, citing U.S. v.
Torribio, 15 Phil. 85, 93 (1910) and Rubi v. The Provincial Board of
Mindoro, 39 Phil. 660, 708 (1919) Under the police power of the State,
property rights of individuals may be subjected to restraints and burdens in
order to fulfill the objectives of the government. Social Justice Society (SJS)
v. Atienza, Jr., G.R. No. 156052, February 13, 2008, 545 SCRA 92, 139.
The only limitation is that the restriction imposed should be reasonable, not
oppressive. Mirasol v. Department of Public Works and Highways, 523 Phil.
713, 747; 490 SCRA 318, 349 (2006)
86 It is the most pervasive, the least limitable, and the most demanding of
the three fundamental powers of the State. The justification is found in the
Latin maxims salus populi est suprema lex (the welfare of the people is the
supreme law) and sic utere tuo ut alienum non laedas (so use your property
as not to injure the property of others). As an inherent attribute of
sovereignty which virtually extends to all public needs, police power grants
a wide panoply of instruments through which the State, as parens patriae,
gives effect to a host of its regulatory powers. JMM Promotion and
Management, Inc. v. Court of Appeals, G.R. No. 120095, August 5, 1996,
260 SCRA 319, 324.
87 The State may interfere with personal liberty, property, lawful businesses
and occupations to promote the general welfare [as
514
514

public interest (such as healthcare services),88 falls within the scope of

governmental exercise of police power through regulation.
As defined, police power includes (1) the imposition of restraint on liberty or

property, (2) in order to foster the common good.89 The exercise of police
power involves the “state authority to enact legislation that may interfere
with personal liberty or property in order to promote the general welfare.”90
By its very nature, the exercise of the State’s police power limits individual
rights and liberties, and subjects them to the “far more overriding demands
and requirements of the greater number.”91 Though vast and plenary, this
State power also carries limitations, specifically, it may not be exercised
arbitrarily or unreasonably. Otherwise, it defeats the purpose
_______________
long as] the interference [is] reasonable and not arbitrary. Social Justice
Society (SJS) v. Atienza, Jr., supra note 85 at pp. 139-140; Patalinghug v.
Court of Appeals, G.R. No. 104786, January 27, 1994, 229 SCRA 554, 559,
citing Sangalang v. Intermediate Appellate Court, G.R. Nos. 71169, 76394,
74376 and 82281, December 22, 1988, 168 SCRA 634; Ortigas & Co.
Limited Partnership v. Feati Bank and Trust Co., No. L-24670, December
14, 1989, 94 SCRA 533.
88 See Pharmaceutical and Health Care Association of the Philippines v.

Duque III, G.R. No. 173034, October 9, 2007, 535 SCRA 265; St. Luke’s
Medical Center Employee’s Association-AFW v. National Labor Relations
Commission, G.R. No. 162053, March 7, 2007, 517 SCRA 677; Beltran v.
Secretary of Health, G.R. No. 133640, November 25, 2005, 476 SCRA 168,
196; Pollution Adjudication Board v. Court of Appeals, G.R. No. 93891,
March 11, 1991, 195 SCRA 112, 123-124; Tablarin v. Gutierrez, No. L-
78164, July 31, 1987, 152 SCRA 730, 741; Lorenzo v. Director of Health,
50 Phil. 595, 597 (1927); and Rivera v. Campbell, 34 Phil. 348, 353-354
(1916).
89 Basco v. Phil. Amusement and Gaming Corporation, 274 Phil. 323; 197
SCRA 52, 61 (1991).
90 Id.
91 Philippine Association of Service Exporters v. Drilon, 246 Phil. 393,

399; 163 SCRA 386, 391 (1988).
515
515
for which it is exercised, that is, the advancement of the public good.92
To be considered reasonable, the government’s exercise of police power

must satisfy the “valid object and valid means” method of analysis: first, the
interest of the public generally, as distinguished from those of a particular
class, requires interference; and second, the means employed are reasonably
necessary to attain the objective sought and not unduly oppressive upon
individuals.93
These two elements of reasonableness are undeniably present in Section 16

of RA No. 10022. The prohibition against the referral decking system is
consistent with the State’s exercise of the police power to prescribe
regulations to promote the health, safety, and general welfare of the people.
Public interest demands State interference on health matters, since the
welfare of migrant workers is a legitimate public concern.
We note that RA No. 10022 expressly reflects the declared State policies to
“uphold the dignity of its citizens whether in the country or overseas, in
general, and Filipino migrant workers,” and to “afford full protection to
labor, local and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all. Towards this
end, the State shall provide adequate and timely social, economic and legal
services to Filipino migrant workers.” The prohibition against the referral
decking system in Section 16 of RA No. 10022 is an expression and
implementation of these state policies.
_______________
92 Id.
93 U.S. v. Toribio, 15 Phil. 85 (1910); Fabie v. City of Manila, 21 Phil. 486

(1912); Case v. Board of Health, 24 Phil. 256; Bautista v. Juinio, No. L-
50908, January 31, 1984, 127 SCRA 329; Ynot v. Intermediate Appellate
Court, No. L-74457, March 20, 1987, 148 SCRA 659 (1987).
516
516

The guarantee under Section 16 for OFWs to be given the option to choose a
quality healthcare service provider — as expressed in Section 16(c)94 of RA
No. 10022 — is guaranteed by the prohibition against the decking practice
and against monopoly practices in OFW health examinations.95
_______________
94 Section 16. Under Section 23 of Republic Act No. 8042, as amended,

add new paragraphs (c) and (d) with their corresponding subparagraphs to
read as follows:
(c) Department of Health.—The Department of Health (DOH) shall

regulate the activities and operations of all clinics which conduct medical,
physical, optical, dental, psychological and other similar examinations,
hereinafter referred to as health examinations, on Filipino migrant workers
as requirement for their overseas employment. Pursuant to this, the DOH
shall ensure that:
(c.1) The fees for the health examinations are regulated, regularly
monitored and duly published to ensure that the said fees are reasonable and
not exorbitant;
(c.2) The Filipino migrant worker shall only be required to undergo health
examinations when there is reasonable certainty that he or she will be hired
and deployed to the jobsite and only those health examinations which are
absolutely necessary for the type of job applied for or those specifically
required by the foreign employer shall be conducted;
of the DOH--accredited or DOH-operated clinics that will conduct his/her
health examinations and that his or her right as a patient are respected. The
elsewhere, shall not be allowed. x x x (Emphasis supplied)
95 Id.
517
517

Section 16 likewise requires employers to accept health examinations from

any DOH-accredited health facility; a refusal could lead to their temporary
disqualification under pertinent rules to be formulated by the Philippine
Overseas Employment Authority (POEA).96
These rules are part of the larger legal framework to ensure the Overseas
Filipino Workers’ (OFWs’) access to quality healthcare services, and to curb
existing practices that limit their choices to specific clinics and facilities.
Separately from the Section 16 prohibition against the referral decking

system, RA No. 10022 also prohibits and penalizes the imposition of a
compulsory exclusive arrangement requiring OFWs to undergo health
examinations only from specifically designated medical clinics, institutions,
entities or persons. Section 5, in relation to Section 6 of RA No. 10022,
penalizes compulsory, exclusive arrangements97 by imprisonment and fine
and by the automatic revocation of the participating medical clinic’s license.
_______________
96 The pertinent part of the provision reads: Any Foreign employer who
does not honor the results of valid health examinations conducted by a
DOH-accredited or DOH-operated clinic shall be temporarily disqualified
from the participating in the overseas employment program, pursuant to
POEA rules and regulations.
97 Section 5 of Republic Act No. 8042, as amended by Republic Act 1022

now includes:
In addition to the acts enumerated above, it shall also be unlawful for any
person or entity to commit the following prohibited acts:
xxxx
(4) Impose a compulsory and exclusive arrangement whereby an overseas

Filipino worker is required to undergo health examinations only from
specifically designated medical clinics, institutions, entities or persons,
except in the case of a seafarer whose medical examination cost is
shouldered by the principal/shipowner.
xxxx
518
518

The DOH’s role under this framework is to regulate the activities and
operations of all clinics conducting health examinations on Filipino migrant
workers as a requirement for their overseas employment. The DOH is tasked
to ensure that:

of the DOH-accredited or DOH-operated clinics that will conduct his/her
health examinations and that his or her rights as a patient are respected. The
elsewhere, shall not be allowed.98
While Section 16 of RA No. 10022 does not specifically define the

consequences of violating the prohibition against the referral decking
system, Republic Act No. 4226 (Hospital Licensure Act), which governs the
licensure and regulation of hospitals and health facilities, authorizes the
DOH to suspend, revoke, or refuse to renew the license of hospitals and
clinics violating the law.99
_______________
98 Supra note 94.
99 Section 11 of Republic Act No. 4226 provides:
Section 11. Revocation of License.—The licensing agency may suspend

or revoke a license already issued for any of the following grounds: (a)
repeated violation by the licensee of any provision of this Act or of any other
existing law; (b) repeated violation of rules and regulations prescribed in the
implementation of this Act; or (c) repeated failure to make necessary
corrections or adjustments required by the licensing agency in the
improvement of facilities and services.
519
519

These consequences cannot but apply to the violation of the prohibition

against the referral decking system under RA No. 10022. If, under the law,
the DOH can suspend, revoke, or refuse to renew the license of these
hospitals upon the finding that they violated any provision of law (whether
those found in RA No. 4226 or in RA No. 10022), it follows — as a
necessarily included lesser power — that the DOH can likewise order these
clinics and their association to cease and desist from practices that the law
deems to be undesirable.
A.5.b. The DOH did not gravely

abuse its discretion in is-
suing the assailed DOH
CDO letters
As discussed above, the letter-order implementing the prohibition against the

referral decking system is quasi-judicial in nature. This characteristic
requires that procedural due process be observed — that is, that the clinics
concerned be given the opportunity to be heard before the standard found in
the law can be applied to them.
Thus, prior to the issuance of the disputed CDO letter, the DOH should have
given GAMCA the opportunity to be heard on whether the prohibition
applies to it. Lest this opportunity to be heard be misunderstood, this DOH
obligation raises an issue different from the question of whether Congress
can, under the exercise of police power, prohibit the referral decking system;
this latter issue lies outside the scope of the DOH to pass upon. The required
hearing before the DOH relates solely to whether it properly implemented,
based on the given standards under the law, the prohibition that Congress
decreed under RA No. 10022.
Under normal circumstances, the issuance of a CDO without a prior hearing

would violate GAMCA’s procedural due process rights, and would amount
to more than a legal error, i.e., an error equivalent to action without
jurisdiction. Render-
520
520

ing a decision quasi-judicial in nature without providing the opportunity to

be heard amounts to a grave abuse of discretion that divests a quasi-judicial
agency of its jurisdiction.
Factual circumstances unique to the present case, however, lead us to

conclude that while it was an error of law for the DOH to issue a CDO
without complying with the requirements of procedural due process, its
action did not amount to a grave abuse of discretion.
Grave abuse of discretion amounts to more than an error of law; it refers to

an act that is so capricious, arbitrary, and whimsical that it amounts to a
clear evasion of a positive duty or a virtual refusal to perform a duty
enjoined by law, as where the power is exercised in an arbitrary and despotic
manner because of passion or hostility.100
Prior to the issuance of its CDO Letter, the DOH had more than sufficient
basis to determine that GAMCA practices the prohibited referral decking
system under RA No. 10022. Notably, the DOH had earlier allowed and
recognized the referral decking system that GAMCA practiced through AO
5-01. This recognition was made with GAMCA’s practice in mind. The
subsequent administrative orders and department memorandum suspending
and terminating the referral decking system, respectively, all pertain to the
practice that the
_______________
100 Office of the Ombudsman v. Magno, G.R. No. 178923, November 27,
2008, 572 SCRA 272, 286-287, citing Microsoft Corporation v. Best Deal
Computer Center Corporation, 438 Phil. 408, 414; 389 SCRA 615, 620
(2002); Suliguin v. Commission on Elections, G.R. No. 166046, March 23,
2006, 485 SCRA 219, 233; Natalia Realty, Inc. v. Court of Appeals, 440
Phil. 1, 19-20; 391 SCRA 370, 384 (2002); Philippine Rabbit Bus Lines,
Inc. v. Goimco, Sr., 512 Phil. 729, 733-734; 476 SCRA 361, 366 (2005),
citing Land Bank of the Philippines v. Court of Appeals, 456 Phil. 755, 786;
409 SCRA 455, 481 (2003); Duero v. Court of Appeals, 424 Phil. 12, 20;
373 SCRA 11, 17 (2002), citing Cuison v. Court of Appeals, G.R. No.
128540, April 15, 1998, 289 SCRA 159, 171.
521
521

DOH had authorized under AO 5-01. Even the subject matter of these
issuances do not just pertain to any other referral decking system, but to the
“GAMCA referral decking system.”
GAMCA likewise had more than several opportunities to contest the
suspension and eventual revocation of the referral decking system initially
permitted under AO 5-01. Its appeal even reached the Office of the
President, which overturned the DOH Memorandum Order terminating the
referral decking system.
That the referral decking system had been subsequently prohibited by law
shows the intent of Congress to prevent and prohibit the practice that
GAMCA initiated and which the President had allowed. The President’s
duty under our political system is to implement the law; hence, when
Congress subsequently prohibited the practice that GAMCA initiated, the
Executive — including the President — has no choice but to implement it.
Based on these circumstances, while the DOH erred when it issued its CDO
letters without first giving GAMCA the opportunity to prove whether the
practice conducted by GAMCA is the same practice prohibited under RA
No. 10022, the DOH conclusion to so act, in our view, did not constitute
grave abuse of discretion that would have divested it of jurisdiction.
We note that the DOH had sufficient basis when it determined that the
referral decking system prohibited under RA No. 10022 was the same
decking system practiced by GAMCA. To reiterate, the referral decking
system was not something new; it was an old system that GAMCA practiced
and was known to all in its scope and operating details. That GAMCA had
previously questioned the DOH prohibition and had been given ample
opportunity to be heard when it filed an appeal before the OP, negate the
conclusion that GAMCA had been aggrieved by precipitate and unfair DOH
action.
522
522

To be sure, these factual circumstances do not make the CDO letter

compliant with procedural due process. They mitigate, however, the error
committed and render it less than the capricious, arbitrary, and patent refusal
to comply with a positive legal duty that characterizes an act committed with
grave abuse of discretion.
The Court furthermore, in several instances,101 has recognized that an

administrative agency may issue an ex parte cease and desist order, where
vital public interests outweigh the need for procedural due process. In these
instances, the Court noted that the affected establishment may contest the ex
parte order, upon which the administrative agency concerned must conduct a
hearing and allow the establishment to be heard. While jurisprudence has so
far used the “vital public interests” standard to pollution cases, it had not
been a grave abuse of discretion on the part of the DOH to consider that
GAMCA’s referral decking practice falls within this category. The DOH has
long made the factual finding that the referral decking system hinders our
Filipino seafarers’ access to quality and affordable healthcare in its A.O. No.
106, Series of 2002.
These circumstances further mitigate whatever legal error the DOH has
committed and render the conclusion that grave abuse of discretion had
taken place misplaced.
Since the writs of certiorari and prohibition do not issue against legal errors,
but to acts of grave abuse of discretion, the RTC erred in issuing these writs
against the DOH CDO letters.
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101 Laguna Lake Development Authority v. Court of Appeals, supra note

78, Pollution Adjudication Board v. Court of Appeals, 272-A Phil. 66; 195
SCRA 112 (1991).
523
523

6. The prohibition against

the referral decking sys-
tem against GAMCA does
not violate the principle
of sovereign equality and
independence
The RTC based its decision to grant the writs of certiorari and prohibition
against the DOH letter-order on the principle of sovereign equality and
independence; applying the referral decking system prohibition against
GAMCA violates this principle.
The RTC reasoned out that the prohibition against the referral decking
system under Section 16 of RA No. 10022 must be interpreted to apply only
to clinics conducting health examinations on migrant workers bound for
countries that do not require the referral decking system for the issuance of
visas to job applicants.
The RTC observed, too, that the referral decking system is part of the
application procedure in obtaining visas to enter the GCC States, a
procedure made in the exercise of the sovereign power of the GCC States to
protect their nationals from health hazards, and of their diplomatic power to
regulate and screen entrants to their territories.
It also reasoned out that under the principle of sovereign equality and
independence of States, the Philippines cannot interfere with this system and
in fact must respect the visa-granting procedures of foreign states in the
same way that they respect our immigration procedures. Moreover, to
restrain GAMCA which is a mere adjunct of HMC (an agent of GCC States)
is to restrain the GCC States themselves.
AMCOW contests the RTC’s conclusion, arguing that the principles of

sovereign equality and independence of States do not apply to the present
case. According to AMCOW, the subject matter of this case pertains to a
domestic concern as the
524
524

law and the regulations that GAMCA assails relate to the operation of
medical clinics in the Philippines.
It points out that the Philippines gave GAMCA and its members the
privilege of conducting their businesses domestically; hence, their operations
are governed by Philippine laws, specifically by RA No. 10022 which serves
as one of the limitations on the privilege granted to them. GAMCA’s right to
engage in business should yield to the State’s exercise of police power. In
legal contemplation, therefore, the DOH CDO letters did not prejudice
GAMCA’s right to engage in business; nor did they hamper the GAMCA
members’ business operations.
AMCOW further insists that the August 23, 2010 and November 2, 2010
orders are consistent with the State’s exercise of the police power to
prescribe regulations to promote the health, safety, and general welfare of
the people. Public interest demands State interference on health matters,
since the welfare of migrant workers is a legitimate public concern. The
DOH thus merely performed its duty of upholding the migrant workers’
freedom to choose any of its accredited or operated clinics that will conduct
health examinations.
The DOH, for its part, adds that the implementation of RA No. 10022 cannot
be defeated by agreements entered into by GAMCA with the GCC States.
The GCC States, the DOH points out, are not empowered to determine the
Philippines’ courses of action with respect to the operation, within
Philippine territory, of medical clinics; the conduct of health examinations;
and the freedom of choice of Filipino migrant workers.
GAMCA responds to these arguments by asserting that the referral decking

system is a part of the application procedure for obtaining visas to enter the
GCC States. Hence, it is an exercise of the sovereign power of the GCC
States to protect their nationals from health hazards, and their diplomatic
power to regulate and screen entrants to their territories. To restrain an agent
of the GCC States under the control and
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525

acting in accordance with the direction of these GCC States, restrains the
GCC States.
GAMCA also points out that the OFWs would suffer grave and irreparable
damage and injury if the DOH CDO letters would be implemented as the
GCC States would not issue working visas without the GAMCA seal
attesting that the OFWs had been medically examined by GAMCA member
clinics.
After considering all these arguments, we find that the RTC’s decision
misapplied the principle of sovereign independence and equality to the
present case. While the principles of sovereign independence and equality
have been recognized in Philippine jurisprudence, our recognition of this
principle does not extend to the exemption of States and their affiliates from
compliance with Philippine regulatory laws.
A.6. The principle of sovereign

equality and independence
of states does not exempt
GAMCA from the referral
decking system prohibition
under RA No. 10022
In Republic of Indonesia v. Vinzon,102 we recognized the principle of

sovereign independence and equality as part of the law of the land. We used
this principle to justify the recognition of the principle of sovereign
immunity which exempts the State — both our Government and foreign
governments — from suit. We held:
International law is founded largely upon the principles of reciprocity,

comity, independence, and equality of States which were adopted as part of
the law of our land under Article II, Section 2 of the 1987 Constitution. The
rule that a State may not be sued without its consent
_______________
102 G.R. No. 154705, June 26, 2003, 405 SCRA 126.
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526

is a necessary consequence of the principles of independence and equality of

States. As enunciated in Sanders v. Veridiano II, the practical justification
for the doctrine of sovereign immunity is that there can be no legal right
against the authority that makes the law on which the right depends. In the
case of foreign States, the rule is derived from the principle of the sovereign
equality of States, as expressed in the maxim par in parem non habet
imperium. All states are sovereign equals and cannot assert jurisdiction over
one another. A contrary attitude would “unduly vex the peace of nations.”
Our recognition of sovereign immunity, however, has never been

unqualified. While we recognized the principles of independence and
equality of States to justify a State’s sovereign immunity from suit, we also
restricted state immunity to acts jus imperii, or public acts. We said that once
a State enters into commercial transactions (jus gestionis), then it descends
to the level of a private individual, and is thus not immune from the resulting
liability and consequences of its actions.103
By this recognition, we acknowledge that a foreign government acting in its

jus imperii function cannot be held liable in a Philippine court. Philippine
courts, as part of the Philippine government, cannot and should not take
jurisdiction over cases involving the public acts of a foreign government.
Taking jurisdiction would amount to authority over a foreign government,
and would thus violate the principle of sovereign independence and
equality.104
_______________
103 China National Machinery & Equipment Corp. (Group) v. Santamaria,

G.R. No. 185572, February 7, 2012, 665 SCRA 189, 196; Holy See v.
Rosario, Jr., G.R. No. 101949, December 1, 1994, 238 SCRA 524, 535;
JUSMAG Philippines v. NLRC, G.R. No. 108813, December 15, 1994, 239
SCRA 224, 231-232.
104 Arigo v. Swift, G.R. No. 206510, September 16, 2014, 735 SCRA 102,
citing Minucher v. Court of Appeals, 445 Phil. 250; 397 SCRA 244 (2003).
527
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This recognition is altogether different from exempting governments whose

agents are in the Philippines from complying with our domestic laws.105
We have yet to declare in a case that the principle of sovereign independence
and equality exempts agents of foreign governments from compliance with
the application of Philippine domestic law.
In the present case, GAMCA has not adduced any evidence in the court
below, nor has it presented any argument before us showing that the
principle of sovereign equality and independence has developed into an
international custom shielding state agents from compliance with another
state’s domestic laws. Under this situation, the Court is in no position to
determine whether the practice that GAMCA alleges has indeed crystallized
into an international custom.
GAMCA has never proven in this case, too, that the GCC has extended its
sovereign immunity to GAMCA. Sovereign immunity belongs to the State,
and it must first be extended to its agents before the latter may be considered
to possess sovereign immunity.
Significantly, the Court has even adopted a restrictive approach in

recognizing state immunity, by distinguishing between a State’s jus imperii
and jus gestionis. It is only when a State acts in its jus imperii function that
we recognize state immunity.106
We point out furthermore that the prohibition against the referral decking
system applies to hospitals and clinics, as well as to OFW employers, and
does not seek to interfere with the GCC’s visa requirement processes. RA
No. 10022 prohibits hospitals and clinics in the Philippines from practicing
the
_______________
105 x x x the privilege is not an immunity from the observance of the law of
the territorial sovereign or from ensuing legal liability; it is, rather, an
immunity from the exercise of territorial jurisdiction. Id., at p. 132.
106 United States of America v. Ruiz, 221 Phil. 179, 182-183 & 184; 136
SCRA 487, 491 (1985).
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referral decking system, and employers from requiring OFWs to procure

their medical examinations from hospitals and clinics practicing the referral
decking system.
The regulation applies to Philippine hospitals and clinics, as well as to

employers of OFWs. It does not apply to the GCCs and their visa processes.
That the regulation could affect the OFWs’ compliance with the visa
requirements imposed by GCCs does not place it outside the regulatory
powers of the Philippine government.
In the same manner, GCC states continue to possess the prerogative to apply
their visa requirements to any foreign national, including our OFWs, who
seeks to enter their territory; they may refuse to grant them entry for failure
to comply with the referral decking system, or they may adjust to the
prohibition against the referral decking system that we have imposed. These
prerogatives lie with the GCC member-states and do not affect at all the
legality of the prohibition against the referral decking system.
Lastly, the effect of the prohibition against the referral decking system is
beyond the authority of this Court to consider. The wisdom of this
prohibition has been decided by Congress, through the enactment of RA No.
10022. Our role in this case is merely to determine whether our government
has the authority to enact the law’s prohibition against the referral decking
system, and whether this prohibition is being implemented legally. Beyond
these lies the realm of policy that, under our Constitution’s separation of
powers, this Court cannot cross.
WHEREFORE, in the light of these considerations, we hereby GRANT the

petitions. Accordingly, we REVERSE and SET ASIDE the orders dated
August 10, 2012 and April 12, 2013 of the Regional Trial Court of Pasay
City, Branch 108, in Sp. Civil Action No. R-PSY-10-04391-CV.
Costs against respondent GAMCA.
SO ORDERED.
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Sereno (CJ.), Carpio, Velasco, Jr., Leonardo-De Castro, Peralta, Bersamin,
Del Castillo, Perez, Mendoza, Reyes and Perlas-Bernabe, JJ., concur.
Leonen, J., In the result. See Separate Opinion.
Jardeleza, J., No part prior OSG action.
Caguioa, J., On Leave.
CONCURRING AND DISSENTING OPINION
LEONEN, J.:
I concur in the result.
I.
The special civil actions filed with the Regional Trial Court were both for
the issuance of a writ of certiorari and a writ of prohibition. Thus, in the very
opening paragraph of the discussion of the Regional Trial Court in question:
The present Petition for Certiorari and Prohibition seeks: a) the issuance of a
writ of prohibition to enjoin and prohibit respondent Secretary from
enforcing and implementing Department of Health (DOH) Order dated
August 23, 2010 on the ground that it was issued with grave abuse of
discretion amounting to lack or excess of jurisdiction; and b) the declaration
of Paragraphs c.3 and c.4, Section 16, of Republic Act (R.A.) No. 10022 and
Section 1(c) and 1(d), Rule XI of the Implementing Rules and Regulations
(IRR) as unconstitutional for being contrary to the generally accepted
principles of international law, i.e., the principle of sovereign equality and
independence of states.1
_______________
1 Rollo, p. 56.
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The dispositive portion of the Regional Trial Court’s questioned Decision2

reads:
WHEREFORE, the petition is hereby granted. Accordingly, the writ of

CERTIORARI is hereby issued declaring null and void ab initio the August
23, 2010 Order and November 2, 2010 reiterating Order of the respondent
DOH secretary. A writ of Prohibition is likewise issued directing the
respondent DOH Secretary and all persons acting on his behalf to cease and
desist from implementing the assailed Orders against the petitioners. The
August 1, 2011 writ of preliminary injunction is hereby made permanent.
Civil Case No. 04-0670 is hereby dismissed for being moot and academic.3
(Emphasis supplied)
Section 21 of Batas Pambansa Blg. 129 provides:
Section 21. Original jurisdiction in other cases.—Regional Trial Courts

shall exercise original jurisdiction:
(1) In the issuance of writs of certiorari, prohibition, mandamus, quo

warranto, habeas corpus and injunction which may be enforced in any part
of their respective regions[.] (Emphasis supplied)
The Regional Trial Court of Pasay had jurisdiction over the remedies
invoked, which were petitions for a writ of certiorari and a writ of
prohibition. However, it did not have jurisdiction to enjoin to issue the writs
for its intended scope.
The Order of the Department of Health dated August 23, 20104 and its
reiterative Order dated November 2, 20105 was
_______________
2 Id., at pp. 56-66. The Regional Trial Court Decision was pro-mulgated on
August 10, 2012 and penned by Judge Maria Rosario B. Ragasa of Branch
108 of the Regional Trial Court of Pasay City.
3 Id., at p. 66.
4 Id., at pp. 19-20.
5 Id., at p. 20.
531
531

nationwide in its scope. After all, the Department of Health is a nationwide

agency. The respondent GCC Approved Medical Centers Association, Inc.
did not clearly and convincingly show that all its members were located only
within the territorial jurisdiction of the Regional Trial Court of Pasay City.
For these reasons alone, the decision of the court a quo is null and void for
having been issued without jurisdiction. Thus, the Petitions should be
granted.
II.
In my view, it is not necessary to bifurcate the Special Civil Action for

certiorari into a “traditional” track and an “expanded” mode. The present
rules are already sufficient for this Court to exercise its fundamental power
of judicial review described in part in Article VIII, Section 1.6
Neither would it be correct to limit any of our certiorari powers, even on an

“expanded” basis, to questions, which only raise constitutional issues. An act
of any government branch, agency, or instrumentality that violates a statute
or a treaty is grave abuse of discretion. The Constitution does not distinguish
the cause for grave abuse.7 Neither should this Court, unless, in the guise of
promulgating rules of procedure, we wish to effect an amendment of the
Constitution.
Finally, I express my reservations relating to the absolute necessity for a

decision of this Court before any other organ of
_______________
6 Const., Art. VIII, Sec. 1 states:
Section 1. The judicial power shall be vested in one Supreme Court and in
such lower courts as may be established by law.
branch or instrumentality of the Government.
7 Id.
532
532

government can act on its rational belief in the bending nature of any
customary international norms or a general principle of international law.
Our constitutional adherence to international law is by virtue of
incorporation through Article II, Section 28 or Article VII, Section 21 of the
Constitution.9 Judicial action is not required for these norms to be binding.
Neither of these modes of incorporation require it.
III.
Fundamental to constitutional litigation is the assurance that judicial review

should only happen when there is an actual case or controversy. That is, the
judiciary is not an advisory body to the President, Congress, or any other
branch, instrumentality, or agency of the government. Thus, absent any
actual or sufficiently imminent breach, which will cause an injury to a
fundamental right, a provision of law or an administrative regulation cannot
be challenged. This Court is coequal with the other branches of
government.10 The Constitution is a legible, written document capable of
being read by all. Its ambiguity may only be clarified through judicial review
when it becomes apparent through the existence of
_______________
8 Const., Art. VIII, Sec. 1 states:
Section 1. The judicial power shall be vested in one Supreme Court and in
such lower courts as may be established by law.
branch or instrumentality of the Government.
9 Const., Art. VII, Sec. 21 states:
Section 21. No treaty or international agreement shall be valid and

effective unless concurred in by at least two-thirds of all the Members of the
Senate.
10 Alejandrino v. Quezon, 46 Phil. 83 (1924) [Per J. Malcolm, En Banc].
533
533

an actual situation. The mere existence of subordinate norms — in the form

of a statue, treaty or administrative rule — is not enough. There has to be
parties who tend to be directly and substantially injured under a specific
concrete set of facts.11
The confusion with certiorari in my view, is brought about by instances in

the recent past where actions, which should have been considered as ones for
declaratory relief, were acted upon by this Court as if they were certiorari
actions. For example, in James M. Imbong, et al. v. Hon. Paquito N. Ochoa,
Jr., et al.12 or the Reproductive Health (RH) cases, this Court took
cognizance of the Petitions even if there were still no Implementing Rules,
no doctor or health practitioner threatened with sanctions, no couple or
spouse whose prerogatives were to be curtailed. In my dissent, I pointed to
the dangers of speculative arguments, mainly, that our imagination
substituted for actual facts. Imagination took precedence over actual
controversy.
The same with the case of Jose Jesus M. Disini, et al. v. The Secretary of
Justice, et al.13 In that case, there was no cybercrime committed. There was
no cybercrime threatened to be committed, no social media part removed, no
advertising in cyberspace prohibited. Again, although denominated as
certiorari actions, the petitions were in actuality actions for declaratory
relief.
Petitions for certiorari as provided in Rule 65 are available only to correct

acts done in a judicial or quasi-judicial procedure.14 This ensures that the
power of judicial review can only
_______________
11 Province of North Cotabato v. Government of the Republic of the

Philippines Peace Panel on Ancestral Domain (GRP), 589 Phil. 387; 568
SCRA 402 (2008) [Per J. Carpio-Morales, En Banc].
12 732 Phil. 1; 721 SCRA 146 (2014) [Per J. Mendoza, En Banc].
13 727 Phil. 28; 716 SCRA 237 (2014) [Per J. Abad, En Banc].
14 Rules of Court, Rule 65, Sec. 1 states that:
534
534

be exercised when there is an actual controversy. No judicial action can

happen without interested parties, who suffer injury and therefore ready to
plead the facts that give actual rise to their real injury. This is the same with
quasi-judicial actions.
Ministerial or administrative actions, which will cause or threaten to cause

injury can be corrected through a Writ of Prohibition, not a Writ of
Certiorari. In both cases, the requirement of the absence of a plain, speedy,
and adequate remedy in the ordinary course of the law conforms with the
deferential nature of judicial review in constitutional cases. The requirement
in both cases that there be a clear finding of grave abuse of discretion
amounting to lack of jurisdiction is sufficient to meet the scope of all our
powers of judicial review.
The suggestion to expand the present rules on Petitions for Certiorari opens
a very dangerous road towards changing our place in the Constitutional
order. It will transform this Court to a virtual overload that will review
legislative and executive acts, even without the presence of an actual
controversy, simply because in our collective and subjective view, there may
be some amorphous and undefined but gut feeling transcendental interest
involved.
It is in this respect that I wage this Court to tread with an abundance of all
caution even as I respect the erudite obser-
_______________
Section 1. Petition for certiorari.—When any tribunal, board or officer

exercising judicial or quasi-judicial functions has acted without or in excess
its or his jurisdiction, or with grave abuse of discretion amounting to lack or
excess of jurisdiction, and there is no appeal, or any plain, speedy, and
adequate remedy in the ordinary course of law, a person aggrieved thereby
may file a verified petition in the proper court, alleging the facts with
certainty and praying that judgment be rendered annulling or modifying the
proceedings of such tribunal, board or officer, and granting such incidental
reliefs as law and justice may require.
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vations of Justice Arturo Brion. This Court must clothe itself with humility
as it reviews its past cases in the light of a full understanding of our
constitutional role if and when we do exercise our power to amend the rules.
In my view, discussions are thus premature.
IV.
In Restituto Ynot v. Intermediate Appellate Court, et al.,15 this Court called

a trial court to task when it hesitated to decide on the constitutionality of an
Executive Order in the presence of a clearly pleaded actual case. After all,
the plain text of Article VIII, Section 5(2)(a) states:
Section 5. The Supreme Court shall have the following powers:
....
(2) Review, revise, reverse, modify or affirm an appeal or certiorari, as the
law or the Rules of Court may provide, final judgments and orders of lower
courts in:
(a) All cases in which the constitutionality or the validity of any treaty,
international or executive agreement, law, presidential decree, proclamation,
order instruction, ordinance, or regulation is in question. (Emphasis
provided)
To limit constitutional questions only for the determination of this Court at

first instance and even in its “expanded” mode is not consistent with this
provision. It may also be inconsistent with Article VIII, Section 2 of the
Constitution:
Section 2. The Congress shall have the power to define, prescribe, and
apportion the jurisdiction of various courts but may not deprive the Supreme
Court of its jurisdiction over cases enumerated in Section 5 hereof.
_______________
15 232 Phil. 615; 148 SCRA 659 (1987) [Per J. Cruz, En Banc].
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As earlier pointed out, Section 21 of Batas Pambansa Bilang 129 grants

jurisdiction to the Regional Trial Court in Petitions for Certiorari and
Prohibition. The only qualification is that the writs “. . . may be enforced in
any part of their respective jurisdictions.”16
For this Court to reduce this jurisdiction further is to amend Batas Pambansa
Bilang 129, therefore breaching our solemn commitment to a Constitution
that removes from us the power to prescribe jurisdiction.
V.
I join Justice Lucas Bersamin’s observations that the issuance of a Cease and
Desist Order does not per se mean that the actions taken by the Department
of Health is quasi-judicial in nature. In my view, the executive department in
applying and implementing the law does not only do so by mere advice or
persuasion to those who do not follow its provisions. The executive is not
without its own set of legally mandated coercive powers short of any kind of
adjudication. The issuance of an order to cease and desist in the Petitioners’
continuing violation of the law is one of them. The type of cease and order
in the case was therefore an administrative act. If at all, the proper action to
question its constitutionality is a Petition for a Writ of Prohibition not a Writ
of Certiorari. However, due to the scope of the writ requested, it should have
been filed with the Court of Appeals, not the Regional Trial Court.
ACCORDINGLY, I vote to DISMISS the Petitions.
Petitions granted, orders dated August 10, 2012 and April 12, 2013 reversed
and set aside.
_______________
16 Batas Pambansa Blg. 129, Sec. 21.
537
537

Notes.—The thrust of the doctrine of exhaustion of administrative remedies

is that courts must allow administrative agencies to carry out their functions
and discharge their responsibilities within the specialized areas of their
respective competence. (Go vs. Distinction Properties Development and
Construction, Inc., 671 SCRA 461 [2012])
As the Court held in People v. Ventura, 4 SCRA 208 (1962), the State under
its police power “may prescribe such regulations as in its judgment will
secure or tend to secure the general welfare of the people, to protect them
against the consequence of ignorance and incapacity as well as of deception
and fraud.” (Sto. Tomas vs. Salac, 685 SCRA 245 [2012])
——o0o——
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G.R. No. 207132. December 6, 2016.

ASSOCIATION OF MEDICAL CLINICS FOR OVERSEAS WORKERS,

G.R. No. 207205. December 6, 2016. *

HON. ENRIQUE T. ONA, in his capacity as Secretary of the Department of

Remedial Law; Special Civil Actions; Certiorari; Prohibition; Certiorari and

VOL. 812, DECEMBER 6, 2016

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

power to relax its Rules.—Meanwhile that no specific procedural rule has

Same; Jurisdiction; Expanded Jurisdiction; The Supreme Court’s (SC’s)

SUPREME COURT REPORTS ANNOTATED

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

Same; Same; Same; Another distinction relates to the cited ground of a

VOL. 812, DECEMBER 6, 2016

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

Same; Exhaustion of Administrative Remedies; In every case, remedies

Same; Same; The failure to exhaust administrative remedies affects the

SUPREME COURT REPORTS ANNOTATED

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

view.—The failure to exhaust administrative remedies affects the ripeness to

Same; Jurisdiction; Expanded Jurisdiction; Existing Supreme Court (SC)

VOL. 812, DECEMBER 6, 2016

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

requiring a prima facie showing of grave abuse of discretion in the exercise

Judicial Review; In constitutional cases where the question of

Same; Actual Case; A case or controversy exists when there is an actual

SUPREME COURT REPORTS ANNOTATED

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

Courts; Hierarchy of Courts; The Constitution itself has partially determined

VOL. 812, DECEMBER 6, 2016

Administrative Law; Department of Health Secretary; Under Chapter 8,

SUPREME COURT REPORTS ANNOTATED

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

Remedial Law; Exhaustion of Administrative Remedies; Judicial Review;

Migrant Workers; Overseas Filipino Workers; Public interest justifies the

VOL. 812, DECEMBER 6, 2016

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

plementation would deprive GAMCA members of their property.

Overseas Filipino Workers; The guarantee under Section 16 for Overseas

SUPREME COURT REPORTS ANNOTATED

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

as expressed in Section 16(c) of RA No. 10022 — is guaranteed by the

Administrative Agencies; Department of Health; The Department of Health

Political Law; Principle of Sovereign Independence and Equality; While the

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

been recognized in Philippine jurisprudence, our recognition of this principle

Same; Same; While we recognized the principles of independence and

Remedial Law; Jurisdiction; Expanded Jurisdiction; View that the

SUPREME COURT REPORTS ANNOTATED

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

procedure, we wish to effect an amendment of the Constitution.—Neither

Judicial Review; View that fundamental to constitutional litigation is the

Remedial Law; Certiorari; View that petitions for certiorari as provided in

VOL. 812, DECEMBER 6, 2016

Association of Medical Clinics for Overseas Workers, Inc. (AMCOW) vs.

review can only be exercised when there is an actual controversy. No

PETITIONS for review on certiorari of the decision and order of the

The facts are stated in the opinion of the Court.

Navarro, Jumamil, Escolin & Martinez Law Offices for respondents in

In these consolidated petitions for review on certiorari1 filed under Rule 45