Government vs Springer

G.R. No. L-26979, April 1, 1927

Nature: Quo warranto proceeding.

SC Ruling: The court in conclusion declares both acts to be unconstitutional and void, and such
judgment shall result in removing the defendants from their offices as directors in the NCC.
Legal doctrine: Doctrine of separation of powers.

Facts:
The purpose of the proceeding is to test the validity of the part of section 4 of Act No.
2705, as amended by section 2 of Act No. 2822, which provides that "The voting power of all
such stock (in the National Coal Company) owned by the Government of the Philippine Islands
shall be vested exclusively in a committee consisting of the Governor-General, the President of
the Senate, and the Speaker of the House of Representatives."
The NCC is a corporation organized and existing by virtue of the aforementioned acts of
the Philippine Legislature. On November 9, 1926, the Government-General promulgated E.O.
No. 37, which divested the voting rights of the Senate President and House Speaker in the
NCC. The EO emphasized that the voting right should be solely lodged in the Governor-General
who is the head of the government. A copy of the said EO was then furnished to the Senate
President and the House Speaker.
Thereafter, on December 6, 1926, despite such EO, and against the objection of the
Government-General, proceeded to elect 5 individuals, as the board of directors of the NCC, by
Senate President and the House speaker, as recognized to be the majority members of the
voting committee by the chair. Hence, this case at bar.

Issue:
Whether or not Sec. 4 of Act No. 2705, as amended by Sec. 2 of Act No. 2822, is valid.

Ruling:
No. Both acts used are invalid.
Section 22 of the Organic Act, states that: "That all executive functions of the
government must be directly under the Governor-General or within one of the executive
departments under the supervision and control of the Governor-General." The administrative
domination of a governmentally organized and controlled corporation is clearly not a duty
germane to the law-making power.
 In addition, the court takes note of the Administrative Code, which provides the following:
"In addition to his general supervisory authority, the Governor-General shall have such specific
powers and duties as are expressly conferred or imposed on him by law and also, in particular,
the powers and duties set forth," including the special powers and duties "(a) To nominate and
appoint officials, conformably to law, to positions in the service of the Government of the
Philippine Islands xxx.”
The court deduced that the power of appointment in the Philippines appertains, with
minor exceptions, to the executive department; that membership in the voting committee in
question is an office or executive function; that the National Coal Company and similar
corporations are instrumentalities of the Government; that the duty to look after government
agencies and government property belongs to the executive department; that the placing of
members of the Philippine Legislature on the voting committee constitutes an invasion by the
Legislative Department of the privileges of the Executive Department.
The interests of the Philippines will be best served by strict adherence to the basic
principles of constitutional government.