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Pinoy Law Blog: UP Civil Law Reviewer

ADMINISTRATIVE LAW CASES DOCTRINE

PERALTA VS. CSC


When an administrative or executive agency renders an opinion or issues a statement
of policy, it merely interprets a pre-existing law; and the administrative
interpretation of the law is at best advisory, for it is the courts that finally
determine what the law means. It has also been held that interpretative regulations
need not be published.

Javellana vs. DILG


As a matter of policy, this Court accords great respect to the decisions and/or actions
of administrative authorities not only because of the doctrine of separation of powers
but also for their presumed knowledgeability and expertise in the enforcement of
laws and regulations entrusted to their jurisdiction.
Notice and Hearing or Publication

Commissioner of Internal Revenue vs. CA, CTA, Fortune Tobacco


An administrative rule is merely interpretative in nature, its applicability needs
nothing further than its bare issuance for it gives no real consequence more than what
the law itself has already prescribed. When, upon the other hand, the administrative
rule goes beyond merely providing for the means that can facilitate or render least
cumbersome the implementation of the law but substantially adds to or increases the
burden of those governed, it behooves the agency to accord at least to those directly
affected a chance to be heard, and thereafter to be duly informed, before that new
issuance is given the force and effect of law.

Commissioner of Customs vs. Hypermix Feeds


Accordingly, in considering a legislative rule a court is free to make three inquiries:
(i) whether the rule is within the delegated authority of the administrative
agency; (ii) whether it is reasonable; and (iii) whether it was issued pursuant to
proper procedure. But the court is not free to substitute its judgment as to the
desirability or wisdom of the rule for the legislative body, by its delegation of
administrative judgment, has committed those questions to administrative judgments
and not to judicial judgments. In the case of an interpretative rule, the inquiry is not
into the validity but into the correctness or propriety of the rule. As a matter of power
a court, when confronted with an interpretative rule, is free to (i) give the force of law
to the rule; (ii) go to the opposite extreme and substitute its judgment; or (iii)
give some intermediate degree of authoritative weight to the interpretative rule.

Considering that the questioned regulation would affect the substantive rights of
respondent as explained above, it therefore follows that petitioners should have
applied the pertinent provisions of Book VII, Chapter 2 of the Revised Administrative
Code, to wit:
Section 3. Filing. (1) Every agency shall file with the University of the Philippines
Law Center three (3) certified copies of every rule adopted by it. Rules in force on the
date of effectivity of this Code which are not filed within three (3) months from that
date shall not thereafter be the bases of any sanction against any party of persons.

Section 9. Public Participation. - (1) If not otherwise required by law, an agency


shall, as far as practicable, publish or circulate notices of proposed rules and afford
interested parties the opportunity to submit their views prior to the adoption of any
rule.
(2) In the fixing of rates, no rule or final order shall be valid unless the proposed rates
shall have been published in a newspaper of general circulation at least two (2) weeks
before the first hearing thereon.
(3) In case of opposition, the rules on contested cases shall be observed.

VICTORIA MILLING vs. SSS


There is a distinction between an administrative rule or regulation and an
administrative interpretation of a law whose enforcement is entrusted to an
administrative body. When an administrative agency promulgates rules and
regulations, it "makes" a new law with the force and effect of a valid law, while
when it renders an opinion or gives a statement of policy, it merely interprets a
pre-existing law. Rules and regulations when promulgated in pursuance of the
procedure or authority conferred upon the administrative agency by law,
partake of the nature of a statute, and compliance therewith may be enforced by
a penal sanction provided in the law. A rule is binding on the courts so long as the
procedure fixed for its promulgation is followed and its scope is within the statutory
authority granted by the legislature, On the other hand, administrative interpretation
of the law is at best merely advisory, for it is the courts that finally determine what the
law means.

NFA VS. MASADA Security

The general rule is that construction of a statute by an administrative agency charged


with the task of interpreting or applying the same is entitled to great weight and
respect. The Court, however, is not bound to apply said rule where such executive
interpretation, is clearly erroneous, or when there is no ambiguity in the law
interpreted, or when the language of the words used is clear and plain, as in the case at
bar. Besides, administrative interpretations are at best advisory for it is the Court that
finally determines what the law means. Hence, the interpretation given by the labor
agencies in the instant case which went as far as supplementing what is otherwise not
stated in the law cannot bind this Court.

SGMC REALTY CORP. vs. Office of the President


Administrative rule or regulation, in order to be valid, must not contradict but
conform to the provisions of the enabling law.
For it is axiomatic that administrative rules derive their validity from the statute that
they are intended to implement. Any rule which is not consistent with statute itself is
null and void.

Prospective or retroactive operation


CIR VS. AZUCENA
An administrative rule interpretive of a statute, and not declarative of certain
rights and corresponding obligations, is given retroactive effect as of the date of
the effectivity of the statute.

DADULO vs. CA
Well-settled is the rule that procedural laws are construed to be applicable to actions
pending and undetermined at the time of their passage, and are deemed retroactive in
that sense and to that extent. As a general rule, the retroactive application of
procedural laws cannot be considered violative of any personal rights because no
vested right may attach to nor arise therefrom.

SAN MIGUEL VS. INCIONG


The Supplementary Rules and Regulations Implementing Presidential Decree 851 is
even more emphatic in declaring that earnings and other remunerations which are not
part of the basic salary shall not be included in the computation of the 13th-month
pay.

ASTURIAS VS. COMMISSIONER OF CUSTOM


Considering that the Bureau of Customs is the office charged with implementing and
enforcing the provisions of our Tariff and Customs Code, the construction placed by it
thereon should be given controlling weight.
In applying the doctrine or principle of respect for administrative or
practical construction, the courts often refer to several factors which may be
regarded as bases of the principle, as factors leading the courts to give the principle
controlling weight in particular instances, or as independent rules in themselves.
These factors are the respect due the governmental agencies charged with
administration, their competence, expertness, experience, and informed judgment and
the fact that they frequently are the drafters of the law they interpret; that the agency
is the one on which the legislature must rely to advise it as to the practical working
out of the statute, and practical application of the statute presents the agency with
unique opportunity and experiences for discovering deficiencies, inaccuracies, or
improvements in the statute.

CARINO VS. CHR


The CHR has the power to investigate but not to adjudicate alleged human right
violation.

Investigate means to examine, inquire, explore.


Adjudicate to resolve, rule, settle, decide.

Megaworld Globus Asia vs. DSM Construction


Findings of fact of administrative agencies and quasi-judicial bodies, which have
acquired expertise because their jurisdiction is confined to specific matters, are
generally accorded not only respect, but finality when affirmed by the Court of
Appeals.

NAPOCOR vs. LEASTO


Arbitral decision accord respect and finality by the Court
Exemption to the rule :
1. on the ground of promissory estoppels
2. And involving a legal issue and not a factual finding.

LUPANGCO vs. CA

Quasi-judicial is defined as a term applied to the action, discretion, etc., of public


administrative officers or bodies required to investigate facts, or ascertain the
existence of facts, hold hearings, and draw conclusions from them, as a basis for
their official action, and to exercise discretion of a judicial nature. To expound
thereon, quasi-judicial adjudication would mean a determination of rights, privileges
and duties resulting in a decision or order which applies to a specific situation . This
does not cover rules and regulations of general applicability issued by the
administrative body to implement its purely administrative policies and functions like
Resolution No. 105 which was adopted by the respondent PRC as a measure to
preserve the integrity of licensure examinations.
JURISDICTION - the competence of an office or body to act on a given matter
or decide a certain question.
CHIN vs. Land Bank of the Philippines
The court has no jurisdiction over the subject matter of the petition.
AZARCON vs. Sandiganbayan
The court has no jurisdiction over the person of Azarcon.

DUE PROCESS
SANTIAGO vs. Alikpala

First requirement of procedural due process, namely, the existence of the court
or tribunal clothed with judicial, or quasi-judicial, power to hear and determine
the matter before it.
There is the express admission in the statement of facts that respondents, as a court-
martial, were not convened to try petitioner but someone else, the action taken against
petitioner being induced solely by a desire to avoid the effects of prescription; it
would follow then that the absence of a competent court or tribunal is most marked
and undeniable. Such a denial of due process is therefore fatal to its assumed
authority to try petitioner.
NDC vs. Collector of Customs
Even in admin proceeding due process must be observed.
We find this action proper for it really appears that petitioner Rocha was not given an
opportunity to prove that the television set complained of is not a cargo that needs to
be manifested as required by Section 2521 of the Tariff and Customs Code. Under
said section, in order that an imported article or merchandise may be considered a
cargo that should be manifested it is first necessary that it be so established for the
reason that there are other effects that a vessel may carry that are excluded from the
requirement of the law, among which are the personal effects of the members of the
crew. The fact that the set in question was claimed by the customs authorities not to be
within the exception does not automatically make the vessel liable. It is still necessary
that the vessel, its owner or operator, be given a chance to show otherwise. This is
precisely what petitioner Rocha has requested in his letter. Not only was he denied
this chance, but respondent collector immediately imposed upon the vessel the huge
fine of P5,000.00. This is a denial of the elementary rule of due process.

FABELLA vs. CA
In administrative proceedings, due process has been recognized to include the
following: (1) the right to actual or constructive notice of the institution of
proceedings which may affect a respondents legal rights; (2) a real opportunity to be
heard personally or with the assistance of counsel, to present witnesses and evidence
in ones favor, and to defend ones rights; (3) a tribunal vested with competent
jurisdiction and so constituted as to afford a person charged administratively a
reasonable guarantee of honesty as well as impartiality; and (4) a finding by said
tribunal which is supported by substantial evidence submitted for consideration
during the hearing or contained in the records or made known to the parties affected.
In the present case, the various committees formed by DECS to hear the
administrative charges against private respondents did not include a representative of
the local or, in its absence, any existing provincial or national teachers organization
as required by Section 9 of RA 4670. Accordingly, these committees were deemed
to have no competent jurisdiction. Thus, all proceedings undertaken by them
were necessarily void. They could not provide any basis for the suspension or
dismissal of private respondents. The inclusion of a representative of a teachers
organization in these committees was indispensable to ensure an impartial tribunal. It
was this requirement that would have given substance and meaning to the right
to be heard. Indeed, in any proceeding, the essence of procedural due process is
embodied in the basic requirement of notice and a real opportunity to be heard.

LUPO vs. Administrative Action Board


The requirements of due process in administrative proceedings and these are:
(1) the right to a hearing which includes, the right to present one's case and submit
evidence in support thereof;
(2) the tribunal must consider the evidence presented;
(3) the decision must have something to support itself,
(4) the evidence must be substantial, and substantial evidence means such evidence as
a reasonable mind must accept as adequate to support a conclusion;
(5) the decision must be based on the evidence presented at the hearing, or at least
contained in the record and disclosed to the parties affected;
(6) the tribunal or body or any of its judges must act on its or his own independent
consideration of the law and facts of the controversy, and not simply accept the views
of a subordinate;
(7) the board or body should in all controversial questions, render its decision in such
manner that the parties to the proceeding can know the various issues involved, and
the reason for the decision rendered.

MADENILLA vs. CSC


No denial of due process.
"Due process of law implies the right of the person affected thereby to be present
before the tribunal which pronounces judgment upon the question of life, liberty, and
property in its most comprehensive sense; to be heard, by testimony or otherwise, and
to have the right of controverting, by proof, every material fact which bears on the
question of the light in the matter involved."
The essence of due process is the opportunity to be heard. The presence of a party is
not always the cornerstone of due process. In the case at bar, any defect was cured by
the filing of a motion for reconsideration.

KANLAON Construction vs. NLRC


Gen. Rule : Only lawyers are allowed to appear before the labor arbiter
Exemption:
Non-lawyer member of the organization
Non-lawyer representing himself as party to the case
Member of the legal aid duly recognized by IBP or DOJ

Engineer Estacio can appear however his appearance on behalf of Kanlaon


required written proof of authorization. Absent this authority whatever
statement and declaration made before the arbiter is not binding to the
petitioner.

First LEPANTO vs. CA


Clearly, Circular 1-91 effectively repealed or superseded Article 82 of E.O. 226
insofar as the manner and method of enforcing the right to appeal from decisions of
the BOI are concerned. Appeals from decisions of the BOI, which by statute was
previously allowed to be filed directly with the Supreme Court, should now be
brought to the Court of Appeals.

Manuel vs. Villena

Technical rule of procedure are not strictly enforced and due process of law in the
strict judicial sense is not indispensable. It is sufficient that substantive due process
requirement of fairness and reasonableness be observed.

RES JUDICATA

Judge Basilla vs. Becamon

Applying the principle of res judicata or bar by prior judgment, the present
administrative case becomes dismissible.
The Court held that applied the principle of res judicata or bar by prior judgment.
Under the said doctrine, a matter that has been adjudicated by a court of competent
jurisdiction must be deemed to have been finally and conclusively settled if it arises in
any subsequent litigation between the same parties and for the same cause. It provides
that a final judgment on the merits rendered by a court of competent jurisdiction is
conclusive as to the rights of the parties and their privies; and constitutes an absolute
bar to subsequent actions involving the same claim, demand, or cause of action. Res
judicata is based on the ground that the party to be affected, or some other with whom
he is in privity, has litigated the same matter in the former action in a court of
competent jurisdiction, and should not be permitted to litigate it again. This principle
frees the parties from undergoing all over again the rigors of unnecessary suits and
repetitious trials. At the same time, it prevents the clogging of court dockets. Equally
important, res judicata stabilizes rights and promotes the rule of law.

NHA vs. Almeida

In fine, it should be remembered that quasi-judicial powers will always be subject to


true judicial powerthat which is held by the courts. Quasi-judicial power is defined
as that power of adjudication of an administrative agency for the "formulation of a
final order." This function applies to the actions, discretion and similar acts of public
administrative officers or bodies who are required to investigate facts, or ascertain the
existence of facts, hold hearings, and draw conclusions from them, as a basis for their
official action and to exercise discretion of a judicial nature. However, administrative
agencies are not considered courts, in their strict sense. The doctrine of separation of
powers reposes the three great powers into its three (3) branchesthe legislative, the
executive, and the judiciary. Each department is co-equal and coordinate, and supreme
in its own sphere. Accordingly, the executive department may not, by its own fiat,
impose the judgment of one of its agencies, upon the judiciary. Indeed, under the
expanded jurisdiction of the Supreme Court, it is empowered to "determine whether
or not there has been grave abuse of discretion amounting to lack or excess of
jurisdiction on the part of any branch or instrumentality of the Government."

Abelita vs. Doria

While the present case and the administrative case are based on the same essential
facts and circumstances, the doctrine of res judicata will not apply.
There is no identity of causes of action in the cases. While identity of causes of action
is not required in the application of res judicata in the concept of conclusiveness of
judgment, it is required that there must always be identity of parties in the first
and second cases.

For res judicata to apply, the following requisites must be present:


(a) the former judgment or order must be final;
(b) it must be a judgment or order on the merits, that is, it was rendered
after a consideration of the evidence or stipulations submitted by the parties at
the trial of the case;
(c) it must have been rendered by a court having jurisdiction over the
subject matter and the parties; and
(d) there must be, between the first and second actions, identity of parties,
of subject matter, and of cause of action; this requisite is satisfied if the two
actions are substantially between the same parties.

SEC vs. INTERPORT SERVICES


SEC retains jurisdiction to investigate
Section 53 of the Securities Regulations Code clearly provides that criminal
complaints for violations of rules and regulations enforced or administered by the
SEC shall be referred to the Department of Justice (DOJ) for preliminary
investigation, while the SEC nevertheless retains limited investigatory powers.
Additionally, the SEC may still impose the appropriate administrative sanctions under
Section 54 of the aforementioned law.

SEC vs. GMA Network, Inc.

Rate-fixing is a legislative function which concededly has been delegated to the SEC
by R.A. No. 3531 and other pertinent laws. The due process clause, however, permits
the courts to determine whether the regulation issued by the SEC is reasonable
and within the bounds of its rate-fixing authority and to strike it down when it
arbitrarily infringes on a persons right to property.

VIGAN ELECTRIC CO. vs. Public Service Commission

Partakes of the nature of a quasi-judicial function and that having been issued
without previous notice and hearing said order is clearly violative of the due
process clause, and, hence, null and void.

QJ notice and hearing requirement.

DOCTRINE OF PRIMARY JURISDICTION


Bagonghasa vs. DAR

The doctrine of primary jurisdiction precludes the courts from resolving a


controversy over which jurisdiction was initially lodged with an administrative body
of special competence. The doctrine of primary jurisdiction does not allow a court to
arrogate unto itself authority to resolve a controversy, the jurisdiction over which is
initially lodged with an administrative body of special competence. The Office of the
DAR Secretary is in a better position to resolve the particular issue of non-issuance of
a notice of coverage.

NESTLE PHILIPPINES, INC. vs. UNIWIDE SALES

Under the doctrine of primary administrative jurisdiction, courts will not determine a
controversy where the issues for resolution demand the exercise of sound
administrative discretion requiring the special knowledge, experience, and services of
the administrative tribunal to determine technical and intricate matters of fact.
In other words, if a case is such that its determination requires the expertise,
specialized training, and knowledge of an administrative body, relief must first be
obtained in an administrative proceeding before resort to the court is had even if the
matter may well be within the latter's proper jurisdiction.
The objective of the doctrine of primary jurisdiction is to guide the court in
determining whether it should refrain from exercising its jurisdiction until after an
administrative agency has determined some question or some aspect of some question
arising in the proceeding before the court.

EXEMPTION to Doctrine of Primary Jurisdiction


GOVERNMENT SERVICE INSURANCE SYSTEM, petitioner, vs.
COMMISSION ON AUDIT

The doctrine of primary jurisdiction would ordinarily preclude us from resolving the
matter, which calls for a ruling to be first made by the Board. It is the latter that is
vested by law with exclusive and original jurisdiction to settle any dispute arising
under RA 8291, as well as other matters related thereto.
However, both the GSIS and respondents have extensively discussed the merits of the
case in their respective pleadings and did not confine their arguments to the issue of
jurisdiction. Respondents, in fact, submit that we should resolve the main issue on the
ground that it is a purely legal question. Respondents further state that a remand of
the case to the Board would merely result in unnecessary delay and needless
expense for the parties.

GREGORIO VIGILAR SEC. of DPWH VS. ARNULFO AQUINO

There is a question of law when the doubt or difference arises as to what the law is on
a certain state of facts, and not as to the truth or the falsehood of alleged facts. Said
question at best could be resolved only tentatively by the administrative authorities.
The final decision on the matter rests not with them but with the courts of justice.

Geraldine Gaw Guy vs. The Board of Commissioners of the Bureau of


immigration

Judicial intervention, however, should be granted in cases where the claim of


citizenship is so substantial that there are reasonable grounds to believe that the claim
is correct in deportation proceeding.

DOCTRINE OF EXHAUSTION OF ADMINISTRATIVE REMEDIES

NEW SUN VALLEY HOMEOWNERS' ASSOCIATION vs. SB BRGY. SUN


VALLEY PARANAQUE

The doctrine of exhaustion of administrative remedies is a cornerstone of our


judicial system. The thrust of the rule is that courts must allow administrative
agencies to carry out their functions and discharge their responsibilities within the
specialized areas of their respective competence. The rationale for this doctrine is
obvious. It entails lesser expenses and provides for the speedier resolution of
controversies. Comity and convenience also impel courts of justice to shy away from
a dispute until the system of administrative redress has been completed.

ARLIN OBIASCA VS. JEANE BASALLOTE


The doctrine of exhaustion of administrative remedies requires that, for reasons of
law, comity and convenience, where the enabling statute indicates a procedure for
administrative review and provides a system of administrative appeal or
reconsideration, the courts will not entertain a case unless the available administrative
remedies have been resorted to and the appropriate authorities have been given an
opportunity to act and correct the errors committed in the administrative forum. In
Orosa v. Roa, the Court ruled that if an appeal or remedy obtains or is available within
the administrative machinery, this should be resorted to before resort can be made to
the courts. While the doctrine of exhaustion of administrative remedies is subject to
certain exceptions, these are not present in this case.

EXEMPTION
REPUBLIC vs. CARLITO LACAP

Nonetheless, the doctrine of exhaustion of administrative remedies and the corollary


doctrine of primary jurisdiction, which are based on sound public policy and practical
considerations, are not inflexible rules. There are many accepted exceptions, such as:
(a) where there is estoppel on the part of the party invoking the doctrine;
(b) where the challenged administrative act is patently illegal, amounting to lack of
jurisdiction;
(c) where there is unreasonable delay or official inaction that will irretrievably
prejudice the complainant;
(d) where the amount involved is relatively small so as to make the rule impractical
and oppressive;
(e) where the question involved is purely legal and will ultimately have to be
decided by the courts of justice;
(f) where judicial intervention is urgent;
(g) when its application may cause great and irreparable damage;
(h) where the controverted acts violate due process;
(i) when the issue of non-exhaustion of administrative remedies has been
rendered moot;
(j) when there is no other plain, speedy and adequate remedy;
(k) when strong public interest is involved; and,
(l) in quo warranto proceedings. Exceptions (c) and (e) are applicable to the present
case.

KHRISTINE REA REGINO VS. PANGASINAN COLLEGES OF SCIENCE


AND TECHNOLOGY

Petitioner is not asking for the reversal of the policies of PCST. Neither is she
demanding it to allow her to take her final examinations; she was already enrolled in
another educational institution. A reversal of the acts complained of would not
adequately redress her grievances; under the circumstances, the consequences of
respondents' acts could no longer be undone or rectified.
Second, exhaustion of administrative remedies is applicable when there is competence
on the part of the administrative body to act upon the matter complained of.
Administrative agencies are not courts; they are neither part of the judicial system, nor
are they deemed judicial tribunals. Specifically, the CHED does not have the power to
award damages. Hence, petitioner could not have commenced her case before the
Commission.

Third, the exhaustion doctrine admits of exceptions, one of which arises when the
issue is purely legal and well within the jurisdiction of the trial court. Petitioner's
action for damages inevitably calls for the application and the interpretation of the
Civil Code, a function that falls within the jurisdiction of the courts.

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