Administrative Law Reviewer (Atty. Alberto A.

Agra)
CONCERNS OF ADMINISTRATIVE LAW
Chapter I – Introduction  Private rights
o Chief concern is the protection of private rights.
Administrative Law – the entire system of laws which the machinery of the o SUBJECT MATTER – nature and mode of exercise of
State works and by which the state performs government acts. administrative power and the system of relief.
 It includes all the laws that regulate or control the  Delegated powers and combined powers
administrative organization and operations of the government o Generally concerned with agencies with delegated powers and
including the legislative and the executive branches. not with the exercise of the constitutional powers of the
 It provides for the structure of government and the procedure. president.
 It is the law on governmental administration
 It fixes the organization and determines the competence of Administrative Law International Law
administrative authorities and indicates the remedies for the Lays down the rules which guide the not binding upon the officers of the
violation of an individual's rights. officers of the administration in their government considered in relation to
 it is the system of legal principles to settle the conflicting claims of actions as agents of the government their own government except insofar
executive and administrative authority on the one hand and of the as it has been adopted to their
individual or private rights on the other. administrative law.
 It is the part of law which governs the organization,
functions and procedures of administrative agencies of the Administrative Law Constitutional Law
government which quasi legislative powers are delegated and judicial Gives and carries out the general Prescribes the general plan or
powers are granted and the extent and manner to which such plan in minute details framework of the governmental
agencies are subject to the control by the courts. organization
Treats the rights of individuals from Treats of the rights of individuals.
SCOPE OF ADMINISTRATIVE LAW the standpoint of the powers of the The emphasis is on the rights.
 Fixes the administrative organization government
 Law which governs public officers and their rights, duties,
liabilities, election and competence. It emphasizes the powers of the
 It creates administrative agencies defines their powers and government and duties of the citizens
functions, procedures including adjudication. Indicates to the individuals the It prescribes the limitations on the
 Provides the remedies available to aggrieved parties in remedies for the violation of their powers of the government to protect
administrative actions rights the rights of the individuals against
 Governs judicial review of the administrative actions or decisions abuse in their exercise.
 Includes the rules, regulations, orders and decisions made by the Note: Administrative law is necessary the supplement of the
administrative authorities dealing with the interpretation of the law Constitutional Law. But administrative law also complements
and enforcement entrusted to their administration. constitutional law insofar as it determines the rules relative to the
 Judicial decisions dealing with the abovementioned. activity of the administrative authorities.
Note: It is not only the law that governs the administrative authorities, but Administrative Law Criminal Law
also the law made by the administrative authorities whether of general
Note: Criminal law is applied to all branches of the law, including
or particular applicability.
administrative law.
Administrative authorities – all those public officers and organs of the
The most common and efficient way of enforcing an
government charged with the amplification, application and execution of the
administrative rule is by giving it a penal sanction. The mere affixing
law but do not include the doctrine of separation of powers.
of the penalty does not deprive such rule of its administrative character.

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CLASSIFICATION OF ADMINISTRATIVE LAW
Administrative Law Law of Public Administration
The subject matter of administrative It has to do with the practical Classifications and distinctions
law is public administration. management and direction of various SOURCE 1) the law that controls the
organs of the State and the execution administrative authorities
They are apparently synonymous of state policies by the executive and (constitution, statutes, judicial
with each other. But the true field admin offices decisions, executive orders,
of administrative law refers administrative order of superiors to
only to the external aspect of subordinates)
public administration.
2) law made by administrative
It is a narrower branch but authorities (general regulations
constitutes the bulk of public and particular determinations –
administration. delegations of power – Ex.
Presidential proclamations, cease
PRINCIPAL SUBDIVISIONS OF ADMINISTRATIVE LAW and desist orders of SEC, etc.)
 The distinction, however, is relative than absolute for the 2 aspects are PURPOSE 1) Procedural Administrative
so closely interrelated and at many points quite inseparable. law – imposes the procedure to be
Administrative law is primarily concerned with the problems of followed in the pursuit of its legal
administrative regulation than those of management. purpose
 Internal administration – treats the legal relations between the
government and its administrative officers and of the legal relations 2) Substantive administrative
that one administrative officer or organ bears to another. law – establishes the primary rights
o Topics: nature of the public office (de jure or de facto) and and duties
incompatible or forbidden offices, qualifications, APPLICABILITY 1) General administrative law –
disqualifications, appointment, tenure, removal, pension, general in nature and common to all
compensation, organization, legal relation of superior- (constitution, doctrine of exhaustion
subordinate, etc. of administrative remedies, judicial
o Institutional side as a going concern which includes the review)
legal structure or organization of public administration, and
legal aspect of institutional activities. 2) Particular administrative law
 External administration – concerned with the legal relations – pertains to particular agencies
between administrative authorities and private interests. proceeding from the statute creating
o Survey of powers and duties that relate to private interests the individual agency and has little or
o Analysis of the scope and limits of such powers no application except in connection
o Sanctions attached to or means of enforcing, official with such agency.
determinations
o Examinations of the remedies against the official action. - the law is to be applied only to the
cases falling under the agency's
jurisdiction.

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ORIGIN AND DEVELOPMENT OF ADMINISTRATIVE LAW
 The rapid expansion of the administrative agencies and their increased
functions made it possible for the development of administrative
law as a distinct category of law.
 Modern life became more complex which caused a multiplication of
government functions necessitating an enormous expansion
of public administration. So, the legislature had to create more and
more administrative bodies, boards or tribunals specialized in their
particular fields.
 There is a need for broad social or governmental control over
complex conditions and activities which in their detail could not
be dealt with directly in an effective manner by the legislature or the
judiciary.
 The issues ought to be decided by experts and not by a judge, at
least not in the first instance or until the facts have been
sifted and arranged.
 Such agencies represent a fusion of different powers of the
government.
o They are vested with the power to promulgate rules, carry
out the regulations and decide on the controversies
within the scope of their activities.
 Administrative law is still in its formative stage and is being developed
as part of the traditional system of law.
ADVANTAGES OF ADMINISTRATIVE PROCESS
 Administrative process – includes the whole time of the series of
acts of an administrative agency whereby the legislative delegation
of a function is made effectual in particular situations.
o Embraces matters concerning the procedure in disposition,
and the matter in which determinations are made, enforced
and reviewed.
 Advantages of administrative adjudication
o It insure greater uniformity and impersonality of action
 The judicial process is not an alternative to the administrative process.
 It is a trend towards preventive legislation.
o The mere existence of the law will have a deterrent effect.
o There is a desire for a more effective and more flexible
preventive remedies in the creation of many administrative
agencies.
o Prevention is also a major purpose of licensing statutes.
Licensing is both one of the most burdensome and
one of the most effective forms of regulation.
 Limitations upon effective legislative action since there are
many administrative functions, which could not be performed by
Congress.
o There are limitations, which make it practically an
impossibility for congress to do all the things it theoretically
could do (e.g. lack of time, specialized knowledge, lack of staff
to secure information, complexity of problems, etc.).
 Limitations upon exclusive judicial enforcement also is a
problem is adjudicatory powers are not given to the agencies since
many courts would vary in their application of the law. There would be
no uniformity in the policy of initiation.
o If a single administrative agency can assume the responsibility
for enforcement and can develop, subject to judicial review,
uniform policies, in the carrying out the responsibility, it
would be more advantageous.
 Continuity of attention and clearly allocated responsibility
o the agencies have the time and facilities to become and to
remain continuously informed and they can be given a unified
responsibility for effectuating policies.
 Need for organization to dispose of the volume of business
and to provide the necessary records
CRITICISMS AGAINST ADMINISTRATIVE ACTION
 Tendencies toward arbitrariness
 Lack of legal knowledge and aptitude to adjudicate
 Political bias or pressure brought by uncertainty of tenure
 Disregard of safeguards to ensure fair hearings
 Absence of rules of procedure standards
 Combination of legislative, executive and judicial functions
RELATION BETWEEN ADMINISTRATIVE AGENCIES AND COURTS
 They are collaborative instrumentalities of justice.
o Although independent, they are collaborate instrumentalities.
o Court may entertain an action brought before them, but to call
their aid the appropriate administrative agency on questions
within its administrative competence.
 They are not hierarchical, nor is the court a super
commission. The court is to accommodate the administrative
process to the judicial system; accommodate private rights and public
interest in the powers reposed in administrative agencies; and to
reconcile in the filed of administrative action, democrative safeguards
of fair play.
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 The courts must also see to it that the powers are not unlawfully Note: It is both a function (execution of the law) and the totality of the
vested in the agencies and to maintain the constitutional and executive and administrative authorities.
statutory rights of the person.
o They should give due deference to the agencies to ensure that ADMINISTRATION (as an GOVERNMENT
the powers given them are not usurped or unwarrantedly organization)
limited or interfere with the proper exercise of their valid Aggregate of persons in whose hands Institution or aggregate of
powers. the reins of the government are institutions by which an independent
o They should lend the powers of the court to the proper entrusted by the people for the time society makes and carries out those
attainment of the valid objectives of the agency. being. rules of action which are necessary to
o Leave the legislature or the people the remedy for enable men to live in a civilized state
administrative action. or which are imposed upon the
people forming that society boy those
ADMINISTRATION OF ADMINISTRATION OF who possess the power or authority
GOVERNMENT JUSTICE of prescribing them.
Administration of government is Administration of justice is charged
charged to the administrative to the judicial officers Aggregate of authorities which
officers rule a society.
The work done is not necessarily or Decision of controversies between
even often, the result of any individuals and government officers Chapter II – Nature and Organization of Administrative Agencies
controversy and is not merely Status and Characteristics
dependent on the solution of the What is the law applicable to the
question of what is the law but made facts presented before them? CREATION, REORGANIZATION AND ABOLITION OF
also as a result of consideration ADMINISTRATIVE AGENCIES
of expediency.  Some are created by virtue of the constitution but most are created by
legislative enactments. The executive may also create agencies under
They must determine what is the statutes.
law and whether in case they o In creating an administrative agency, there are
are competent to act, if it is wise constitutional restrictions.
for them to act. o Duly executed acts of an administrative agency can have valid
effects beyond the life span of the agency.
ADMINISTRATION AS A SEPARATE POWER  Agencies of statutory origin are subject to expansion or
 The term administration cannot be so plainly defined as it may slightly contraction of their powers and functions, or to
overlap with the legislative and the judicial field. reorganization or abolition at the will of Congress.
 It is a function. It is the execution, in non judicial manner, of o when the purpose is to abolish the agency, and replace it with
the law or will of the state expressed by the competent another, it should specify that the previous agency is abolished
authority. It is the activity of the executive officers of the government. and the replacement to be the new one.
o Has something to do with carrying the laws into effect by way o Congress can delegate the power to create positions (ex.
of management or oversight, investigation, regulation, control President's reorganization power – regarded as valid if it is
in accordance with the principles prescribed by Congress. pursued in good faith).
 As an organization, it is that group or aggregate of persons in
whose hands the reins of the government are for the time MEANING OF ADMINISTRATIVE AGENCY
being. It is the entire administrative organization extending from the  Administrative agency – is the term used to describe an agency
Chief Executive to the subordinates. exercising some significant combination of executive, legislative, and

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judicial powers. It is charged with the administration and
implementation of a particular legislation.
o Covers commissions, divisions, bureaus, etc.
o A single officer is also embraced therein. The bulk of the
administrative law employs a variety of terms to refer to an
administrative agency.
o Under the Administrative Code of 1987, agency is used
to refer to any of the various units of the government.
It can be a national agency (unit of the national government)
or a local agency (if local government).
Administrative agency Court
Generally a large organization staffed Tribunal presided by one ore more
by men who are deemed to become jurists learned in the law
something of experts in their
particular fields.
Performs a variety of functions Judicial functions only.
Uses a varying degree of discretion in Governed by fixed rules in arriving at
arriving at decisions and often decisions and bound by the riles that
proceeds without being bound by no final adjudication is to be made
technical rules of evidence or until after due notice to the parties
procedure with opportunity for a full and fair
hearing.
STATUS OF CHARACTER OF PARTICULAR ADMINISTRATIVE
AGENCIES
 Generally, they may be said to be agencies of the state or government,
representing no private interests of their own, but functioning or acting
within the scope of their authority for and on behalf of the government
and as representatives of the public or guardians of their
interest and not those of private persons.
o Vested with the real power to act for the government.
Authority to act with the sanction of government is essential.
o The form or the function of the agency is not determinative
of the question whether it is an agency.
 They are not courts or part of the judicial system.
o they cannot exercise purely judicial functions since they do not
have the inherent power of a court and are not bound by the
rules applicable to courts. They do not come within the
meaning of "in any court" of a state.
o Their function is not to adjudicate, but to represent a public
interest.
 Although they are not courts in the strict sense, they are so in
the broad sense since they exercise adjudicatory powers.
Their proceedings partake the nature of a judicial proceeding.
 Their functions are PRIMARILY REGULATORY even if it
conducts hearings.
 Certain agencies are deemed to be agents of the legislative branch
of the government and not of the executive branch while
others, are deemed agents of the latter.
o They may perform legislative or quasi-legislative functions
although they are without legislative power in the strict sense.
 They are independent of the executive branch or one not
subject to a superior head department (some such as COA,
CSC, COMELEC).
 They are corporate bodies or legal entities. As such, they can sue
or be sued in courts. Others even have perpetual existence apart
from their members.
MAIN CHARACTERISTICS OF ADMINISTRATIVE AGENCIES
 They are necessarily large. Their staff includes many people
performing a variety of tasks which must be coordinated, supervised,
directed toward the fulfillment of the agency functions.
 They staff are specialized from experience.
o An agency's background of knowledge and experience and its
equipment for investigation enable it to do much of its work by
informal methods without the necessity of formal hearings and
have an impact upon its procedures for formal adjudication
and for rule-making.
 A particular administrative agency is charged by congress
with a particular statutory end.
o Generally, they are charged with the responsibility of making
good to the people a major part of the ends of a democratic
government. They cannot take a purely neutral attitude toward
accomplishment of the task with which they are charged.
o One of its most difficult problem is combining the
responsibility of effective enforcement of public policy with fair
play to the private interest which are regulated.
 Variety of administrative duties.
CONSEQUENCES OF CHARACTERISTICS
 There should be an allocation of functions among the members and
staff of the agency.
 The major work of the head of an agency is supervision and
direction. They cannot be the specialist in all kinds of work, but
specialists must be immediately available to them.
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o Agencies must be founded upon the reality that many persons
in the agency other than the heads, must do the bulk of his
work, with him supervising.
o Hence, there should be a delegation of function and
authority. It is a predominant feature of their
organization and procedure.
DELEGATION OF FUNCTION AND AUTHORITY
 Types of delegation:
o Delegation of internal management
o Delegation of authority to dispose of routine matters
o Delegation of authority to dispose of matter informally or
initiate formal proceedings
o Delegation of authority and function in formal proceedings
(includes the authority to conduct formal hearings)
 Delegation may be a matter of degree and it may be
combined with supervision and control.
o It may even involve decentralization through delegation to
field offices.
TYPES OF ADMINISTRATIVE AGENCIES
 Classified according to their purposes
o Where the government is offering some gratuity, grant or
special privilege (PVA, GSIS, PAO, PMCC)
o Where the government is seeking to carry on certain
functions of the government (BIR, Immigration, LRA)
o Performing some business service for the public
(Philippine Postal Corporation, PNR, MWSS NFA, NHA)
o Regulate business affected with public interest
(LTFRB, Energy Regulatory Board, HLURB, Bureau of Mines,
Geosciences, NTC).
o Where the government seeks, under police power, to
regulate businesses and individuals (SEC, MTRCB, GAB,
DDB, BTRCP)
o Set up to adjust individual controversies because of
some strong policy involved (NLRC, ECC, SSS, SEC, DAR,
COA)
Administrative Organization
DISTRIBUTION OF POWERS OF GOVERNMENT
 Administrative Organization – refers to the administrative
structure of government including political subdivisions and the
allocation of powers, functions, and duties to various units or agencies.
o POWERS: Traditionally, legislative, executive and judicial
o Such powers shall not be delegated except to the extent
authorized by the Constitution.
 There are 3 independent constitutional commissions namely: COA,
CSC and COMELEC. These shall exercise powers and functions
conferred upon them by the constitution and the law. IN addition to
this, there is also the Ombudsman and the independent
commission on Human Rights.
o the state is also mandated to establish an independent
monetary authority and an independent economic and
planning agency.
ORGANIZATION OF THE OFFICE OF THE PRESIDENT
 The Office of the President:
o Private office – provides direct services to the president and
attends to functions that are personal or which pertain to the
first family.
o Executive office – headed by the executive secretary (office
of executive secretary, deputy executive secretaries and
assistant executive secretaries), it shall be fully responsive to
the specific needs and requirements of the president
to achieve the purposes and objectives of the office.
o Staff Support System – embraces the offices under the
general categories of development and management, general
government administration and internal administration.
o Presidential Special Assistants/Advisers System –
includes special assistants and advisers as may be needed by
the president providing consultative or advisory services.
 Agencies under the Office of the President (referring to those
offices under the chairmanship of the president, under his supervision
and control, under his administrative supervision, attached to the
office of the president for policy and proper coordination, and those
not placed under any special department by law.
 The president has the authority to reorganize the
administrative structure of the Office of the President.
o He may restructure the internal organization of the office of
the president by abolishing, consolidating or merging the units
thereof or transferring functions from one to another.
o He may transfer any function of the office of the president to
any other department or agency as well as from the
agency to the office of the president
o He may transfer agency under the office of the president to any
other department or agency as well as transfer agencies to the
office.
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ORGANIZATION OF DEPARTMENTS
 Department – an executive department created by law. It includes
any instrumentality having assigned the rank of a department,
regardless of designation or name.
 Number, purpose and decentralization
o Departments can be established as are necessary for the
functional distribution of the work of the President
o They should be organized and maintained to insure their
capacity to plan and implement programs in accordance
with the national policies
o Grouped on the basis of their major functions to
achieve simplicity, economy and efficiency to minimize
duplications and overlapping.
o The functions shall be decentralized to reduce red tape,
free central officials from administrative details concerning
field operations and relieve them from unnecessary
involvement in routine and local matters.
 Department proper
o Unless otherwise provided, it shall include the Office of the
Secretary (secretary and undersecretary/s with personnel)
and the staffs directly under it.
o Undersecretaries can be as many as may be provided
by the Code or law.
o If necessary, an assistant secretary may be created
o In absence of special provisions, major staff units of each
department shall be the services which shall include the
planning service, financial and management service,
administrative service and when necessary, technical
and legal services.
 Jurisdiction over bureaus. The departments shall have jurisdiction
over bureaus, offices, regulatory agencies, etc., assigned to it by law.
 Assignment of offices and agencies – the president shall, by
executive order, assign offices, and agencies not otherwise assigned by
law to any department, or indicate to which department a government
corporation or board may be attached.
SECRETARIES, UNDERSECRETARIES AND ASSISTANT
SECRETARIES
 The authority and responsibility for the exercise of the mandate of the
department and for the discharge of its powers and functions shall be
with vested in the Secretary who shall have supervision and
control over the department.
 The undersecretary shall advise and assist the secretary in the
formulation and implementation of the department objectives and
policies.
o He shall discharge the secretary's functions in case of absence
or inability to discharge or for any cause or in case of vacancy
of said office unless otherwise provided by law.
 The assistant secretary shall perform duties and functions as may
be provided by law or assigned to him by the secretary.
DEPARTMENT SERVICES
 Planning service – services related to planning, programming and
project development and discharge such other functions as may be
provided by law.
 Financial and Management Services – advise and assist the
secretary on budgetary, financial and management matters and shall
perform other functions as may be provided by law.
 Administrative Service – provide the department with economic,
efficient an effective services relating to personnel legal assistance,
information, records, delivery and receipt of correspondence, supplies,
equipment, collections, disbursement, security and custodial work.
 Technical Service – take charge of technical assistance essential
which does not fall under the 3 other services.
 Legal service – if the work involves substantial legal work, in which
case, the administrative service shall not have a legal division. It
provides legal advice to the department where the workload of the
department does not warrant a legal service or a legal division, there
shall be one or more legal assistants in the Office of the Secretary.
ORGANIZATION OF BUREAUS
 Bureau – refers to any principal subdivision or unit of any
department given or assigned the rank of a bureau, regardless of actual
name or designation, as in the case of department-wide regional
offices.
o Principal subdivision of the department performing a single
major function or closely related functions.
o Headed by a director who may have one or more
assistants as provided by law. It may also have as many
divisions as are provided by law for the economical, efficient
and effective performance of its functions.
 Powers and duties of heads of bureaus or offices
o The head of the bureau shall be its chief executive officer and
shall exercise overall authority in matters within the
jurisdiction of the bureau.
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oThe head shall appoint personnel to all positions in his bureau
in accordance with the law. In case of the line bureau or office,
the head shall also appoint the second level personnel of the
regional offices unless such power has been delegated. He shall
also have the authority to discipline the employees in
accordance with the CSC.
o He may, designate the assistant head to act as chief of any
division or unit within the organization without additional
compensation.
o He shall prescribe the form and fix the amount of all bonds
executed by private parties pertaining to his bureau or office.
o Prescribe forms and issue circulars or orders to secure the
efficient administration of his bureau
o Issue orders regarding administration of its internal affairs
 Bureaus are either STAFF OR LINE
o Staff bureau – primarily perform policy, program
development and advisory functions. It shall avail itself of the
planning, financial and administrative services in the
department is circumstances so warrant.
 Its director shall: advise and assist the office of
the secretary of matters pertaining to his
bureau's specialization; provide advisory and
consultative services to the regional office of
the department; develop plans for the
attainment of their objective; other duties as
may be provided by law.
o Line bureau – directly implement programs adopted
pursuant to the department's plans and policies. It may have
staff units as may be necessary. If the bureau is small, only a
single unit performing combined staff functions may be
provided.
 Its director shall: exercise supervision and
control over all divisions and other units
under the bureau; establish policies and
standards for the operation; promulgate rules
and regulations as may be necessary; other
duties as may be provided by law.
ORGANIZATION OF FIELD OFFICES
 Regional offices – established according to the law defining field
service areas.
o Administrative regions – NCR, RI-XII
o The department or agency shall organize an integrated
regional office on a department or agency-wide basis.
 Headed by one assistant regional director, except as may be
provided by law. He is responsible for the department or agency
functions in the region.
 Whenever the function or activity requires central or inter-regional
action, the function may be performed by the regional offices under the
supervision and control of the department proper or line bureau
concerned.
 A regional office shall: implement laws, policies, programs, etc.
in the regional area; provide economic, effective and
efficient service to the people; coordinate with regional
offices of other departments bureaus and agencies in the
area; coordinate with local government units in the area;
perform such other functions as may be provided by law.
o District offices may be established only in cases of clear
necessity.
DEFINITION OF ADMINISTRATIVE RELATIONSHIP
 Supervision and control – includes the authority to act directly;
direct or restrain the performance of an duty/act; review, approve,
modify, reverse acts of subordinates; determine priorities of plans and
programs; prescribe standards, guidelines, plans and programs.
o Unless otherwise provided, the word control contemplates
supervision and control.
 Administrative supervision – governs the relationship between
the department or its equivalent and regulatory agencies or other
agencies as may be provided by law.
o Limited to: general oversight of operations of such agencies to
insure proper management; require submission of reports and
cause conduction of management audit and evaluations; take
actions as may be necessary for the proper performance of
official functions; review and pass upon budget proposals but
may not increase them.
o Does not include: appointments and other personnel actions
except when appeal is made from an action of appointing
authority; review of contracts entered into by the agency in the
pursuit of its objectives; power to review, reverse, modify, the
decisions of regulatory agencies in the exercise of their
regulatory or quasi-judicial functions.
 Attachment – the lateral relationship between department or its
equivalent and the attached agency or corporation for purposes of
policy and program coordination.
o May be accomplished by: having the department represented
in the governing board of the attached agency or corporation;
having the attached agency comply with a system of periodic
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reporting; having the department provide general policies
through its representative in the board.
Note: Day to day administration shall be left to the discretion and judgment of
the executive officer of the agency or corporation. If there is a disagreement,
the matter shall be brought to the President.
 GOCCs shall submit to the secretary their audited financial statements
within 60 days after the close of the fiscal year.
o Pending submission, the budget shall be that of the previous
fiscal year.
POWERS AND FUNCTIONS OF DEPARTMENT SECRETARY
 Advise the president in issuing executive orders, regulations,
proclamations and other issuances.
 Establish the policies and standards for the operation of the
department
 Promulgate rules and regulations necessary
 Promulgate administrative issuances for the administration of the
offices under the secretary and for the proper execution of the laws
thereto
 Exercise disciplinary powers over officers and employees
 Appoint all officers and employees of the department except those
vested in the President
 Exercise jurisdiction over all bureaus, offices, agencies and
corporations
 Delegate authority to officers and employees under the direction of the
secretary
AUTHORITY OF THE DEPARTMENT SECRETARY
 He shall have supervision and control over the bureaus, offices,
agencies under him but:
o Initiative and freedom of action shall be encouraged
o With respect to any regulatory function of an agency subject to
department control, the authority of the department shall be
governed by the provisions of the Code. His authority shall
not apply to chartered institutions, GOCCs attached to
the department.
DELEGATION OF AUTHORITY
 The authority shall be to the extent necessary for economical, efficient
and effective implementation of national and local programs.
 The delegation shall be in writing and shall indicate to which
office or class of officers and employees the delegation is
made. It shall vest sufficient authority to enable the delegate to
discharge his assigned responsibility.
LINE BUREAU AUTHORITY
 Line bureaus shall exercise supervision and control over their regional
and field offices.
 They are directly responsible for the implementation of plans and
programs
 The regional and field offices shall be the operating arms of the bureau
for the direct implementation of the plans and programs.
RELATIONSHIP OF GOCCS TO THE DEPARTMENT
 GOCCs refer to any agency organized as a stock or non-stock
corporation vested with functions relating to public needs whether
governmental or proprietary in nature. And owned by the
government directly or through its instrumentalities wholly
or at least 50% of the capital stock.
o They are to be attached to the appropriate department
with which they shall have allied functions or as may be
provided by executive order.
o At least 1/3 of the members of the board should be either a
secretary or undersecretary or assistant secretary.
Note: During their tenure, the president, VP, members of the cabinet, their
deputies and assistants are not allowed from holding any other office or
employment.
RELATIONSHIP OF REGULATORY AGENCIES TO THE
DEPARTMENT
 A regulatory agency refers to any agency vested (expressly) with
jurisdiction to regulate, administer, and adjudicate matters
affecting substantial rights and interests of private persons.
The principal powers of which are exercised by a commission, board or
council.
o It is subject to the administrative supervision of the
department under which they are placed, except GOCCs
o The heads shall submit an annual report of their budgets, and
work plans to the secretary.
o They may avail the common auxiliary and management
services of the department as may be convenient and
economical for their operations.
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MANDATES OF THE DIFFERENT DEPARTMENTS
 DFA – lead agency for directing and evaluation the total national
effort in the field of foreign relations
 DOF – responsible for the formulation, institutionalization and
administration of fiscal policies
 DOJ – provide the government with a principal law agency as legal
counsel and prosecution arm.
 DOA – promotion of agricultural development and support services
needed for domestic and export-oriented business enterprises
 DPWH – engineering and construction arm, ensure safety of
infrastructures and securing all public works and highways the highest
efficiency
 DECS now DEPED – responsible for formal and non-formal
education at all levels, supervise all educational institutions, public or
private and provide for an integrated system of education relevant to
the goals of the national development.
 DOLE – labor and employment; promotion of gainful employment
opportunities; worker's welfare; promote stable employment relations.
 NATIONAL DEFENSE – guarding against external and internal
threats to national peace and security and provide support for social
and economic development
 DOH – promotion of health of the people through delivery of health
services, regulation and encouragement of providers of health goods
and services
 TRADE AND INDUSTRY – areas of trade, industry and
investments
 DAR – direction and coordination to the national agrarian reform
program extended to transform farm lessees and farm tenants to
owners of economic family-size farms.
 DILG – exercises general supervision over local governments in
ensuring autonomy, decentralization and community empowerment.
 DOT – promotion of tourism industry, domestic and international.
 DENR – development and disposition, utilization and management of
the country's national resources; promote sound ecological balance.
 DOTC – promotion, development and regulation of dependable and
coordinated networks of transportation and communications systems.
 DSWD – care for the physically and mentally handicapped; provide
welfare packages to its constituents; arrest the further deterioration of
the socially disabling or dehumanizing conditions of the disadvantaged
 BUDGET AND MANAGEMENT – formulation and
implementation of the national budget
 DOST – coordination of scientific and technological efforts.
 DOE – supervise and control all activities relative to energy
exploration, development, distribution and conservation.
Chapter III – Powers and Functions of Administrative Agencies
In General
MEANING OF POWERS AND FUNCTIONS
Powers Functions
Refers to the means by which a Where one is bound or which it is
function is fulfilled one's business to do.
SOURCES OF POWERS
 It does not always come from a single source. It lies in statutes under
which they claim to act or the constitution.
 The failure to exercise such powers does not forfeit them.
SCOPE OF POWERS
 Most agencies have investigative, rule-making and determinative
functions or at least 2 of such functions.
 Express and implied powers – Powers are measured and limited
by the constitution or law creating them or granting their powers, to
those conferred expressly or by necessary or fair implication.
o The successor of an agency which did not possess the power to
impose fines cannot arrogate unto itself such power in the
absence of legislation.
o Statutes conferring powers must be liberally
construed to enable them to discharge their
functions. They only have such powers are granted to them
by law and those which are necessarily implied in the exercise
of its express powers.
 Inherent powers
o An agency has no inherent powers although implied ones
are often spoken of as inherent.
o In the absence of any provision of law, they have no inherent
powers to punish for contempt.
 Quasi-judicial powers
o Powers cannot be merely assumed nor can they be created by
the courts in the proper exercise of their judicial functions.
o Agencies are bereft of quasi-judicial powers. Their powers are
dependent upon the provisions of the statute reposing
power in them. They cannot confer it upon
themselves.
o They are tribunals of limited jurisdiction. However, they have
in their favor the presumption of regularity including
those which are quasi-judicial in nature.
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Where the SEC prohibited the double listing of stock securities in NATURE OF POWERS
stock exchanges, the Makati Stock Exchange contends that the  The jurisdiction of the agencies are special (what is specifically
SEC is without the authority to impose and even assuming it granted to them with those implied) and limited
does, that it is illegal, discriminatory and unjust. The permission (constitutional and statutory purposes).
referred to in the case was actually a prohibition.  Powers conferred to them must be commensurate with the duties to be
performed and the purposes to be lawfully effected. When such power
The court ruled that the commission is without the power to impose the is abused, the court may interfere.
prohibition and such results to a violation of constitutional rights. They were  A government agency must respect the presumption of
neither granted by the constitution or by statute the power to prohibit the constitutionality and legality to which statutes and
double listing of stock securities in stock exchanges. administrative regulations are entitled until such is repealed
or amended.
The Board of Communications imposed a fine for injury caused
by a failure of a communications company to transmit WHAT CONSTITUTES ADMINISTRATIVE POWER OR
telegrams. It claimed that as successor in interest of the PSC, it ADMINISTRATIVE FUNCTION
has the same powers as the same provided for in the Public  While it has been said that there is no such thing as an administrative
Service Act, one of which is to issue certificates of public power, in the constitutional sense, such classification is still well-
convenience. established.
 The most important administrative function is the judgment
The court ruled that the board is without jurisdiction. The charges in this and discretion. The power to make rules is administrative although
case do not involve their failure to comply with the certificate of public legislative in nature.
convenience. The charge does not relate to the management of the facilities
and system of transmission of message by the petitioner in accordance with POWERS OF ADMINISTRATIVE AGENCIES CLASSIFIED.
the certificate of public convenience.  As to nature:
o Investigatory
The proper forum for them to ventilate their grievances should be in the o Rule-making powers
courts and not in the Board of Communications. o Adjudicatory powers

The BOT granted provisional permits for the operation of excess Note: the regulatory power of an agency may be either legislative or
taxicab units allegedly despite the lapse of its power to do so judicial in nature. The power to conduct investigations and the power to
under the law. As argued, the petitioners stated that the decree carry out the provisions of law are essentially executive or administrative in
limited the period of the BOT to 6 months. nature but the latter is classified as adjudicatory where it involves the exercise
of judgment and discretion.
The court held that the exercise of the power is not subject to the alleged time
limitation. The reading of the law indicates that it was a step towards the  As to degree of subjective choice
legalization of colorum taxicab operators without the alleged time limitation. o Discretionary
There is nothing in the law which suggests that the power exists only for 6 o Ministerial
months. It merely provides for the withdrawal of the state's waiver of its right
to punish said colorum operators for illegal acts. Discretionary Ministerial
the person may choose which of In respect to which, nothing is left to
There should be a liberal construction of the law in this case. several courses will be followed. discretion.

It is the power or right conferred One performed in response to a duty

upon a person under certain which has been positively imposed by
circumstances, according to the law and its performance required at a

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dictates of their own judgment and time and in a manner or upon
conscience, and not controlled by conditions specifically designated,
judgment or conscience of others. the duty to perform not being
dependent on judgment and
discretion.
Investigatory Powers
GENERALLY
 It includes the power of an administrative body to inspect the
records and premises and investigate the activities of the
persons or entities coming under its jurisdiction or to
secure, or to require the disclosure of information by means
of accounts, records, reports, statements, testimony of
witnesses, production of documents or otherwise.
 Some agencies exist for this sole purpose.
 Other agencies possess this power to aid to other powers which they
possess and agencies use such powers to inform themselves of
particular situations to determine whether they should further take
action in the execution of particular powers or duties.
 Investigation is indispensable to prosecution.
 Adjudication – signifies the exercise of power and authority to
adjudicate upon the rights and obligations of the parties before it.
o If the only purpose for investigation is to evaluate evidence
submitted based on the facts, and if the agency is not
authorized to make a final pronouncement, then there is an
absence of judicial discretion and judgment.
Special civic action by certiorari was instituted against an
administrative agency exercising only investigatory and
advisory powers. The agency concluded that the petitioner made
use of his public office to serve and favor his friends and to
prosecute the enemies of the latter. The board recommended that
he be reprimanded with a warning.
The court held that the board's function is limited to investigation and
making findings. After the investigation, the president, not the integrity
board passes upon and adjudicates the rights of the parties. While it is true
that the agency has judicial discretion, such discretion is only for the purpose
of evaluation and for the determination of the disputed facts (not finally
settle the rights).
Not every function wherein there is judgment and discretion are exercised is
a judicial function. The test of judicial function is not the exercise of judicial
discretion, but the power and authority to adjudicate upon the rights and
obligations of the parties before it.
SCOPE AND EXTENT OF POWERS
 An administrative agency may initiate an investigation on a complaint
or on its own motion. They may be required to make investigations as a
mandatory duty.
 Investigations are usually held in private.
 They have the power to enter premises and inspect or examine
such premises or things or operations therein, particularly
books and records.
 Regulatory bodies have been given the power to prescribe
the forms and methods of accounts, records, and
memoranda for the business under their control, power to
inspect books, papers and records, and the power to require
the filing of reports or statements or answers to specific
questions.
 They do not have the inherent power to require attendance, but this is
a basic to the power of investigation. Such powers may be validly
vested on administrative agencies even for purposes not quasi-judicial.
o The power to compel will not be inferred from a grant of
authority to summon and examine witnesses. It must be
clearly given by statute.
 As a general rule, a hearing is not necessary in an investigation
by an administrative agency or official.
 Persons failing to attend, give testimony, produce records at an
investigative proceeding may be punished for contempt. But there
must be a statutory grant to punish for contempt.
 Technical rules of procedure in this administrative agencies are not
strictly applied.
Committee created by an executive order of the Mayor of Manila
to investigate anomalies issued subpoenas and demanded that
witnesses testify under oath. He filed a petition to declare the
person in contempt.
The court herein held that the committee was without the authority to issue
the subpoenas. Such power was traced from the power of the Mayor to
investigate as implied from his power to suspend or remove certain city
employees. However, there is no statutory grant of power to
investigate to petitioner's committee.
Respondent questioned the legality of the subpoena issued by an
administrative agency charged with the function, among others,
to investigate graft and corruption, when there was no charge or
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complaint of violation of law then pending.
In this case, the committee was with authority to issue the subpoena whether
or not there is adjudication involved, and whether or not there is probable
cause, even before the issuance of the complaint. It is enough that there is an
investigation for a lawful authorized purpose.
The agency has the power of inquisition which is not dependent upon a case
or controversy in order to get evidence. The subpoena issued therefore was
within the authority of the agency, the demand is not too
indefinite and the information is relevant.
Officers of labor union charged with unauthorized disbursement
of union funds refused to deliver and deposit certain documents
in connection with the court's investigation of the charge.
The court cited the provision of law which states that the member shall be
entitled to a full and detailed report from their officers and
representatives…the books of accounts and other records of the financial
activities of a legitimate labor organization shall be open to inspection by any
officer or member thereof.
There is a matter involved which clearly demanded the exercise by the court
of the power of investigation.
RIGHT TO COUNSEL IN ADMINISTRATIVE INVESTIGATIONS
 A party in an administrative inquiry may or may not be assisted by a
counsel, irrespective of the nature of the charges. No duty on such body
to furnish the person with a counsel exists. Hearing here is not a part
of criminal prosecution. The right to counsel is not always
imperative in administrative investigations because such
merely determine whether there are facts that merit
disciplinary measures against erring public officers and
employees.
 The exclusionary rule does not apply where the admission is made in
an administrative investigation.
IMPORTANCE OF ADMINISTRTIVE INVESTIGATIONS
 The life blood of the administrative process Is the flow of fact, the
gathering, the organization and the analysis of evidence. It is
imperative for rule making, adjudication and licensing as well as for
prosecuting, supervising, directing, determining general policy,
recommending legislation.
Rule-Making Powers
GENERALLY
 The essential legislative functions may not be delegated to
administrative agencies. What may be granted to them is rule-
making power to implement the law it is entrusted to
enforce. It includes the power to amend, revise, alter, and
repeal its rules and regulations.
o An administrative body may implement broad principles laid
down in a statute by filling in the details, which the
legislature may neither have time nor competence to provide.
 The statutory grant to make rules is a valid exception to the rule
on non-delegation of legislative power.
o The statue must be complete in itself
o Fixes the standard, mapping out the boundaries of the
agency's authority to which it must conform.
 It has the force and effect of a law and is binding on the
agency and all those dealing with the agency.
 Statutes operate prospectively only and not retroactively unless
there is a legislative intent to the contrary. The same applies to rules
and regulations.
LEGISLATIVE POWER ON THE ADMINISTRATIVE LEVEL
 Legislative power is the power to make, alter or repeal laws or rules for
the future. Operates in the future.
 Rule-making is legislative in character and results in
delegated legislation. It is legislation in the administrative level,
that is, legislation within the confines of the granting statute, as
required by the constitution and its doctrine of non-
delegability and separability of certain powers.
o Also called administrative legislation, delegated legislation,
ordinance-making, and quasi-legislation.
LIMITATIONS ON THE RULE-MAKING POWER
 It may not be used to either abridge the authority given it by congress
or the constitution or to enlarge its power beyond the scope intended.
o Agencies may only make rules and regulations as are within
the limits of the powers granted to it or what is found in the
legislative enactment itself, otherwise, they become void.
o It may not make rules which are inconsistent with the
provisions of the constitution or statute.
o it may not amend, alter, modify, supplant, enlarge or expand,
restrict or limit the provisions or coverage of the statute as this
power belongs to the legislature.
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o The basic law shall prevail in case of conflict between o It has a statutory grant
the two. o Provides that the rule shall have authoritative force.
o The rule or regulation should be uniform in operation,
reasonable and not unfair or discriminatory. INTERPRETATIVER RULES AND REGULATIONS
 It resembles judicial adjudication. Purport to do no more than
RULES, REGULATIONS, ORDERS OR RULINGS DISTINGUISHED. the interpretation of the statute being administered to say what it
means. Construction of the law.
Rules Regulations Orders or rulings o They are valid in judicial proceedings only insofar as that have
Generally used interchangeably Are actions in which been correctly construed.
there is more of the o Have the force of law.
Usually comprise those actions which the judicial function and o But their interpretations are not conclusive and are set
legislative element predominates in that they which deal with a aside or ignored if found erroneous.
establish a pattern of conduct thereafter to be particular present o The basic law shall prevail in case of conflict.
followed. situation.
Legislative Rule Interpretative Rule
Regulations are nothing more than an Rulings are Nature of subordinate legislation and Product of interpretation of
administrative opinion as to what a statute under interpretations of it has the power to create new and previously existing laws. Merely
construction means. They merely interpret what advisory or advance additional legal provisions that have clarifies or provides guidelines to the
the legislature meant by its statutory opinions and of the the effect of law law they interpret.
language. implementation of the Issued only under express delegation Necessary incident of the
statutes and regulations of law administration or regulatory statute.
themselves. Has the force and effect of law unless Statutory interpretations hence, no
they are ultra vires or statutory sanction.
KINDS OF RULE-MAKING POWERS/RULES AND REGULATIONS unconstitutional
 Rule-making powers: Force and effect of valid statutes Administrative findings of law and
o Supplementary or detailed legislation or rule-making are always subject to judicial
by reason of particular delegation of authority determination. Merely advisory.
o Interpretative legislation or rule making by No vested right if there is a wrongful
construction and interpretation of the statute construction.
o Contingent legislation or determination whether a
statute shall go into effect. Amendatory circular advises employers-members of the SSS
 Administrative rules what, in light of the amendment of the law, they should include in
o Discretionary determining monthly compensation of their employees upon
o Interpretative which social security contributions of the employees should be
o Contingent (legislative) based.
o Internal (to subordinates)
o Penal (with sanctions) The court held that when an administrative agency promulgates rules and
regulations, it makes new law with the force and effect of a valid law. It is
LEGISLATIVE RULES AND REGULATIONS binding as long as the procedure fixed for promulgation is followed and the
 Have the force and effect of law when issued by virtue of a statutory scope is within the law even if the courts are not in agreement. The circular in
grant. question herein is a mere administrative interpretation of the law. It
 Administrative riles may describe the general discretionary policies to was issued only to apprise those concerned. It did not add any duty or
be followed by the agency. detail that was not already in the law mentioned.
 If it is something more than the opinion, then the rule is legislative.

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CONTINGENT RULES AND REGULATIONS
 Congress may provide that the law shall take effect upon the happening
of a future specified contingencies leaving to some other person or
body the power to determine when the contingency has arisen.
ORDINANCE POWER OF THE PRESIDENT
 Issuances of the president:
o Rules of a general or permanent character in implementation
of constitutional or statutory powers in executive orders
o Particular aspects of governmental operations through
administrative orders
o Declaration of a status or condition of public moment or
interest through a promulgation
o Matters administrative in detail through memorandum
orders
o Internal administration matters to agencies or departments
through memorandum circulars
o Acts and commands as commander in chief through general
or special orders
ADMINISTRATIVE ISSUANCES OF SECRETARIES AND HEADS OF
BUREAUS, OFFICES OR AGENCIES
 Shall be in the form of circulars or orders.
o Circulars – policies, rules, regulations and procedures
pursuant to law applicable to individuals outside the
government
o Orders – directed to particular officials or employees
concerning specific matters including assignments, etc.
 Chronologically numbered
 They shall keep a logbook in which all shall be recorded in
chronological order all official acts.
o It shall be in the custody of the chief administrative officer
and open to public for inspection.
o The records management and archive offices in the
general services administration shall provide
assistance.
SPECIAL ADVANCES OF THE RULE-MAING POWER
 Freed from concern with details
 Additional time to investigate
 Easier to correct mistakes and meet changing conditions
 Hands are untied from red tape of legislative details
 Can, by trial and error, work out specific regulations best calculated to
achieve the objective.
 Certainty of the law is increased
 Contingent legislation is a means to block out a policy from coming
into operation.
REQUISITES FOR VALIDITY OF ADMINISTRATIVE RULES AND
REGULATIONS
 Issued on the authority of the law
 Not contrary to the constitution or law
 in accordance with the procedure
Note: In certain cases, notice and hearing or publication may be necessary to
satisfy due process.
GRANT OF RULE-MAKING POWERS
 legislative grant
 implication of powers expressly granted
DETERMINATION OF VALIDITY OF THE RULES
 whether the rule relates to the subject matter on which power to
legislate has been delegated
 whether the rule conforms to the standards prescribed in the
delegatory statute
 whether the rule is invalid on constitutional grounds such as due
process
Note: If interpretative, it should be correctly interpreted and that there be
nothing new added.
TEST OF DETERMINING VALIDITY OF THE RULES
 Invalid if it exceeds authority granted
 Invalid if it conflicts with the governing statute
 Void if it extends or modifies the statute
 Void if it has no reasonable relationship to the statutory purpose
 Set aside if unreasonable, arbitrary or unconstitutional
Philippine Lawyer's Association v. Agrava
According to a circular issued by the Director of Patents pursuant to the
Patent Law (which states that he shall have the power to promulgate the
necessary rules and regulations for the conduct of all business in the Patent
Office), members of the Philippine bar, engineers and other persons with
sufficient scientific and technical training are qualified to take said
examination. It, in effect, requires members of the Philippine bar in good
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standing to take and pass examinations given by the Patent Office as a
condition precedent to their being allowed to practice before said office.
The court held that the examination required is not authorized by
any law. It amounts to a requirement to pass an examination on top of
passing the bar exams before they can be allowed to practice before said
patent office.
Philippine Inter-Island Shipping Association of the Philippines v.
Court of Appeals
Executive Order 1088 was issued by Marcos providing for uniform and
modified rates for pilotage services rendered to foreign and coastwide
vessels in all private and public ports. It increased the rates of existing
pilotage fees previously fixed by the PPA. However, PPA refused to enforce
it.
When UHPAP announced its intention to implement the executive order, in
effect served as a warning that disciplinary sanctions will be imposed.
However, PPA issued a memorandum which fixed pilotage fees lower than
those provided for by the law.
The court held that EO 1088 is in the nature of a law and the
circular issued by the PPA were in the nature of subordinate
legislation in the exercise of delegated power. What determines
whether an act is a law or an administrative issuance is not its form but its
nature. As a valid statute, PPA is duty bound to comply with the provisions. It
may increase the rates, but it may not decrease them below those mandated
by the executive order. Much less could the PPA abrogate the rates fixed and
leave the fixing of the rates for pilotage services to the contracting parties as
it did.
REQUIREMENT OF REASONABLENESS
 Must bear reasonable relation to the purpose sought to be
accomplished. Invalid if otherwise.
 Must be supported by good reasons
 Free from constitutional infirmities or charge of arbitrariness
Note: a liberal interpretation of the rules and regulations of an
administrative agency is justified in cases where their rigid enforcement will
result in a deprivation of legal rights.
Lupangco v. Court of Appeals
PRC issued a resolution as part of its additional instructions to examinees to
all those applying for admission to take the license examinations in
accountancy which prohibits examinees from attending any review class,
briefing, conference or the like conducted by schools, colleges, universities
and the like.
The court held that the resolution is unreasonable despite its good
aim. Although their purpose was to preserve the integrity and purity of the
examinations, it cannot be used to conceal constitutional infirmities. On its
face, the resolution is unreasonable. It is unreasonable in that one who is
caught committing the acts even without any ill motives will be barred from
taking future examinations conducted by the respondent PRC. Also, it is
difficult to implement in that they cannot possibly keep a watchful eye on
every examinee during the 3 days before the examination period. They had
no authority to dictate on how the examinees should prepare themselves for
the exam. They cannot be restrained from taking all the lawful steps needed
to assure the fulfillment of their ambition. It also violates the academic
freedom of schools.
INTERNAL RULES AND REGULATIONS
 Such rules and regulation create no relation except between the
superior and subordinate.
 They ad administrative in nature and do not pass beyond the
limits of the department or agency to which they are directed.
 Creates no rights against or for third persons.
Olsen and Co. v. Herstein and Rafferty
Under the provisions of the Tariff Act of 1913 in the US, certain products
from the Philippines were admitted in their country duty-free. For this
reason, Governor General issued an executive order requiring the adoption
by the Insular Collector of Customs and CIR of such rules and regulations
which will ensure that the government of the US will not be defrauded by a
Philippine exposure who may attempt to introduce to the US articles which
are not products of the Philippines.
The order herein is nothing more or less than a command from a
superior to an inferior. Disobedience to or deviation from such an order
can be punished only by the power to which issued it and if that power fails to
administer the corrective, then the disobedience goes unpunished. Since it is
an internal rule, it is beyond the court's power.
PENAL RULES AND REGULATIONS
 They may impose penal sanctions if there is a law granting such
authority to them.
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o the law itself must provide for the penalty to be
imposed
o fix or define the penalty
o punishable or made a crime under the law itself
o must be published in the Official Gazette
 The Administrative Code requires that every rule establishing or
defining an act which is punishable as a crime or subject to a penalty
shall be published in full txt.
 The lawmaking body cannot delegate to an agency the power to declare
what acts shall constitute a criminal offense and how it shall be
punished. Prescribing penalties is a legislative function.
People v. Maceren
The Secretary of Agriculture and Natural Resources issued an order which
restricted the ban against electro fishing to fresh water fisheries pursuant to
the fisheries law which punishes: 1) use of obnoxious circumstance; 2)
unlawful fishing in deep sea; 3) unlawful taking of marine mollusks; 4)
illegal taking of sponges; 5) failure to report the kind and quantity of fish
caught and other violations.
The court held that the order is invalid for the power to declare
what constitutes as a criminal offense cannot be delegated. There is
nothing in the law which punishes such act. The lawmaking body cannot
delegate to an executive official the power to declare what acts should
constitute as a criminal offense. An agency can have only the power expressly
or by necessary implication conferred upon it.
US v. Panlilio
Act 1760 provide penalty for violation of acts relating to quarantining
animals suffering from dangerous or contagious diseases. In this case, in
spite of the owner's knowledge of the order declaring his carabaos to be
subject to quarantine for rinderpest, he drove them from place to place in
his hacienda and used them in a manner as if they had not been
quarantined.
The act only penalized violation of its provisions and not those
rules and regulations issued by the Bureau thereunder. The orders
are not statutes and violation of such orders is not a penal offense unless the
statute itself somewhere makes violation thereof unlawful and penalizes it.
US v. Tupasi Molina
Act 2169 provides for an examining board for the municipal office and
provides that, subject to the approval of the Secretary of Commerce, the
director of the constabulary shall prepare an examination manual
prescribing the suitable rules for the conduct of the examination. Under the
act, it is essential that the examinee shall have no criminal record. T signed
under oath the application form prescribed by the examination and he
swore to the facts therein. Hence, he is being prosecuted for perjury.
He may still be prosecuted since the affidavit was authorized or
required by law and that he knew his answer was false.
People v. Santos
S is being charged with violation of Section 28 of the Administrative Order
issued by the secretary of agriculture pursuant to Act 4003 in that he
willfully had his boat operated by his fisherman and ordered them to fish,
loiter and anchor without permission from the Secretary of Agriculture.
However, Act 4003 contains no similar provision prohibiting boars not
subject to license from fishing within 3 km of the shoreline of islands and
reservations without the permission of the secretary.
The court held that the provisions in the order is invalid for the
provisions in the conditional clause is not contained in the law.
Such is an exercise of legislative power which he does not have and therefore,
such clause is null and void.
People v. Que Po Lay
Appellant was in possession of foreign exchange and failed to sell them to
the Central bank within one day following the receipt of such foreign
exchange as required by Circular 20 in connection with RA 265. He
contends that such circular was not published in the gazette hence, it had no
force and effect.
The circular is without force and effect since it was not published
in the Official Gazette as required for their effectivity. The
Administrative Code requires that statutes passed by congress shall in the
absence of any special provision, take effect at the beginning of the 15th day
after the completion of the publication in the OG. Circular 20, being a issued
for the implementation of the law according to its issuance, has the force and
effect of law according to settled jurisprudence. Since the public is bound by
its contents, it must first be published and the people officially and specially,
must be informed of its contents and penalties.
LEGAL FORCE AND EFFECT OF ADMINISTRATIVE RULES AND
REGULATIONS
 Legislative rules: It has the force and effect of law and are, just as
binding upon all the parties, as if they had been written in the original
law itself.
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 Interpretative rules: their validity is subject to challenges in court,
but is entitled to great weight and consideration by the courts.
o It is not conclusive and will be ignored if found to be erroneous
or in conflict with the letter of the governing statute or the
constitution and other laws.
o It is important only when the statute itself is ambiguous.
 Rules of procedure within an agency: are binding on both agency
and respondent parties.
o An agency has no jurisdiction to act unless proper application
is made within the time prescribed by agency rules.
o Courts are competent to deter an agency's own interpretation
of procedural rules when justice so requires.
o Void if they are in conflict with the law.
PRINCIPLES OF ADMINISTRATIVE CONSTRUCTION
 Generally, are also subject to the same principles of construction as
applied to the construction of statutes.
o Intention is controlling
o Give a construction that will sustain validity
o Penal provisions are to be given a strict construction, but not
contrary to intention
o If involving public administrative agency, there should be a
strict construction against it. Any ambiguities will be resolved
in favor of the adversary.
o Construed liberally, in general.
EFFECT OF RELIANCE ON RULES
 A person who relies in good faith on agency rule should be harmless
from loss if that rule is later held invalid or is amended.
o Erroneous interpretations are a nullity and no vested rights
arise since the agency's only power is to rules that would carry
effect the statutory intent.
o Protection is accorded to parties who had relied on an
administrative rule that was subsequently amended or
repealed. The new rule is to be applied prospectively, not in
retrospect.
RETROACTIVE OPERATION OF RULES, REGULATIONS AND
RULINGS
 Ordinarily, the power to give the rules a retroactive effect is present,
provided that doing so does not conflict with the restrictions on the
legislative power to make retroactive laws.
o Not applied if unreasonable, inequitable, and contrary to the
intention.
AMENDMENT OR REPEAL OF ADMINISTRATIVE RULES AND
REGULAITIONS
 An agency has the authority to change, alter, amend, or correct the
rules and regulations duly promulgated by it, and the fact that it has
been amended does not make it unreasonable.
o The change must be made in accordance with the procedural
requirements
o Not a retroactive change
o Not bound by the rule of res judicata
o Parties may voluntarily waive compliance with procedural
rules (founded on acts as well as verbal declarations).
Hilado v. Collector of Internal Revenue
H filed his income tax return and declared a deductible pursuant to a
circular issued by the Secretary of Finance. However, this was subsequently
amended and such deductible was disallowed as a deduction from his gross
income.
The court held that the secretary of finance acted within his
authority. A regulation that is merely an interpretation of the statute when
once determined to have been erroneous becomes a nullity. No vested or
acquired rights can arise from acts or omissions which are against the law or
which infringe upon the rights of others.
Ollada v. Secretary of Finance
Under the National Internal Revenue Code, all corporations and companies
whose gross quarterly sales do not exceed 5000 are required to keep a
simplified set of bookkeeping records duly authorized by the secretary. The
secretary amended the rules by requiring the records to be specially
designed for each class or kind of trade and prepared by a CPA.
The court held that the resolution is not unreasonable or arbitrary
and that regulations issued are subject to amendment or
revocation by successors.
Fortich v. Corona
In a decision, the SC struck down as void the act of the Office of the
President in reopening the case through the issuance of the win-win
resolution which substantially modified its previous decision that had long
become final and executory, being in gross disregard of the rules and basic
legal concept that accord finality to administrative determinations.
Procedural rules should be treated with utmost respect and due
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regard since they are designed to facilitate the adjudication of
cases to remedy the worsening problem of delay in the resolution
of rival claims and in the administration of justice. The late filing of
the DAR of the motion for reconsideration cannot be excused in this case
since they have not shown a reason for a relaxation of the rules. Hence, the
final and executory character of the OP decision can no longer be
disturbed. Res judicata has set in.
Decisions/resolutions/orders of an administrative body which is declared to
be void on the ground that the same was rendered without or in excess of
jurisdiction or with grave abuse of discretion is by no means a mere
technicality of law or procedure. When OP decision became final and
executory, vested rights were acquired by the petitioners. Hence, it
is no longer a question of technicality, but that of substance and
merit.
Separate Opinion:
By suspending the 15 day period for filing a motion for reconsideration and
reopening the decision, the president clearly exercised his control over an
alter ego within the framework of a constitutional and presidential system of
governance. Under exceptional circumstances, the court has suspended the
rules to prevent a miscarriage of justice. In this case, there is no reason to
withhold the power to suspend the rules from the president and grant it alone
to the other branches of the government.
FORMAL REQUIREMENTS ON THE PROMULGATION OF RULES
AND REGULATIONS
 Every agency shall file with the University of the Philippines, 3
certified copies of every rule adopted by it.
o A permanent register of the rules shall be kept and open to
public inspection.
 The rule shall be effective 15 days from the filing unless a different date
is fixed by law or specified in the rule in cases of imminent danger to
health, safety and welfare, the existence of which must be expressed in
a statement accompanying the rule.
 UP Law Center shall publish a monthly bulletin setting forth the text of
rules filed with it.
o Keep a complete index and tables and up to date codification
 They may omit from the bulletin any rule if the publication would be
unduly cumbersome, expensive or otherwise inexpedient but copies
of the rule shall be made available to on application to the
agency which adopted it and the bulletin shall contain a
notice stating the general subject matter of the omitted rule.
 Furnish one copy to the office of the president, congress, all appellate
courts and the national library.
 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.
 In fixing rates, no rule or final order shall be valid unless the proposed
rates shall be published in a newspaper of general circulation at least 2
weeks before the first hearing thereon.
 Rules on contested cases shall be observed.
REQUIREMENTS OF NOTICE AND HEARING OR PUBLICATION
 Prior notice to and hearing of every affected party is not required since
there is no determination of past events or facts to have to be
established or ascertained.
 When a function which is legislative in nature is delegated, the
legislature need not require a notice or hearing as a prerequisite to the
act of the agency, since the legislature could itself have performed that
act without notice or hearing particularly where the riles are of general
application, procedural, or interpretations.
 When such rules or rates apply to a particular party and are
predicated upon a finding of fact which is denied by said
party, the agency making such finding of fact, performs a
function partaking of a quasi-judicial nature that valid
exercise demands a previous notice and hearing to satisfy
the requirements of due process.
 Publication is required as a condition precedent to the effectivity of a
law to inform the public of the contents of the law or rules and
regulations before their rights and interests are affected by the same.
Prior publication cannot be dispensed with for the reason that such
omission would offend due process.
o Publication must be in full or it is no publication at all.
 Interpretative and internal regulations do not require publication.
Eastern Shipping Lines v. Court of Appeals
Petitioner assails the constitutionality of EO1088 which fixes the fees for
pilotage services on the ground that its interpretation and application is left
to private persons and that it constituted undue delegation of powers.
The order is valid. PPA is duty bound to comply with the provisions of said
order. PPA may increase rates but may not decrease them below those
mandated by EO1088.
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Adjudicatory Powers companion recognition that the dockets of our regular courts are
GENERALLY clogged.
 Describes the powers and functions which involve the decision or  Normally defined in the enabling act of the agency.
determination by administrative agencies of the rights, duties, o It depends largely on the provisions of the statute. It is never
obligations of specific individuals and persons, as contrasted with implied.
powers of administrative agencies which involve decisions or  Split jurisdiction is not favored. All controversies relating to the
determinations in the broadest sense, involve persons generally rather subject matter pertaining to its specialization are deemed to be
than specially and usually operate prospectively. included within its jurisdiction.
 Not all determinations by an agency are judicial in nature or quasi-  When there is nothing in the law that would suggest that a particular
judicial. power has been granted, such as the power to decide contractual
 It is the power to hear and determine or to ascertain facts and disputes, the same cannot be exercised. A public official must locate in
decide by the application of rules to ascertained facts. They the statute relied upon, a grant of power before he can exercise it.
are enabled to interpret and apply not only implementing rules and  A court cannot compel an agency to do a particular act or to enjoin
regulations promulgated by them, but also the laws entrusted to their such act which is within the latter's prerogative, except when in the
administration. exercise of its authority, it gravely abuses or exceeds its jurisdiction.
 Exercise of such power must be accompanied with certain formalities
and safeguards characteristic of the judicial process. Philex Mining v. Zaldivia
o Agencies, though, are not considered courts. The Director of Mines dismissed an adverse claim filed by Philex Mining on
the ground that when S located a mining claim, he was the general
Judicial Power Quasi-judicial Power manager of Philex and he was still so when he transferred the claim to Y
Power to hear, try and determine all who was then also an employee of Philex. Hence, both merely acted as
sorts of cases at law and equity which agents of Philex. The dismissal was due to lack of jurisdiction since the issue
are brought before the courts. It is is judicial in character.
the authority to make final of what
the law is and adjudicate the The director has no jurisdiction in this case. There is no question of
respective legal rights or liabilities of fact nor matters requiring technological knowledge and experience. The issue
the contending parties with respect is reserved in conforming with legal rules and standards governing the power
to the matter in controversy. of an agent. The adverse claim here arises from the alleged fiduciary or
Duty is primarily to decide questions Where the function of the agency is contractual relationship between the petitioner and locator of the mine. This
of legal rights between parties with primarily administrative and the is not a mining conflict and it is immaterial whether the mining claim in
respect to the matter in controversy, power to hear and determine question has or has not passed out of the administrative control of the
such being the primary duty and not controversies is granted as an Director of Mines.
merely incidental to regulation or incident to the administrative duty
some other function. Antipolo Realty v. NHA
For failure of AR corporation to develop a subdivision project, Y stopped
There is freedom of action or monthly installment payments as permitted by their contract. AR rescinded
independence and the absence the contract and forfeited all payments made by Y who brought the dispute
of control or coercive influence. to NHA.

EXTENT OF JUDICIAL OR QUASI-JUDICIAL POWERS OF
ADMINISTRATIVE AGENCIES
 Their jurisdiction is limited because the need for special competence
and experience has been recognized as essential in the resolution of
questions of complex or specialized character and because of the
NHA was legally empowered to decide on the matter at issue by
virtue of PD 957. It has the authority to decide cases of claims involving
refund and any other claims filed by the subdivision lot unit buyer against the
project owner and cases involving specific performance of contractual and
statutory obligations filed by the buyers of subdivision lots against the owner.

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Note: Regulatory or rule-making powers may, in certain instances, merge
into determinative, or adjunctive powers.
Guerzon v. Court of Appeals Generally, prior notice and hearing The determination of facts and the
G and PSP entered into a Service Station Lease for the use and operation of are not essential to govern future applicable law as the basis for the
respondent's properties and equipment for 5 years. When it was about to conduct since there is no exercise of judicial discretion are
expire, PSP informed G that the contract was no longer going to be determination of past events or facts essential.
renewed. G refused to vacate the premises. BEU then issued an order to that have to be established or Due process requirements are to be
vacate pursuant to a presidential decree which confers upon the BEU to ascertained. observed.
impose of collect fine for every violation of the its orders, decisions, rules or
regulations. NATURE OF PARTICULAR ACTS

BEU has no authority to issue such order. The order merely makes a Licensing,  Administrative or quasi-judicial
vague reference to a violation of BEU laws without stating the specific enabling or  Dependent upon the ascertainment of facts by the
provision of law violated. BEU, moreover, has no power to issue the order to approving administrative agency.
vacate since it is only empowered to impose a fine and order the suspension  If it depends upon the ascertainment of the
of the operations of the establishment. existence of certain past or present facts upon which
a decision is to be made and the rights and liabilities
Furthermore, BEU has no power to decide contractual disputes between to be determined, it is quasi-judicial.
gasoline dealers and oil companies in the absence of express provision of law Fixing  Legislative or quasi-judicial
granting such power. The BEU's jurisdiction is limited to cases of violation Rates and  If legislative, giving of prior notice and hearing is not
and non-compliance with any term or condition of any certificate, license, Charges required.
permit issued by it or of any of its orders, decisions, rules or regulations.  If quasi-judicial, prior notice are essential to the
validity of such rates.
Investigative Adjudicative
Purpose is to discover, find out, To settle in the exercise of judicial Note: May be empowered by law to approve provisionally,
learn, or obtain information. It does authority. It implies a judicial when demanded by urgent public need, rates of public
not include the power to decide or determination of a fact and the entry utilities without a hearing.
resolve a controversy involved in the of a judgment.  The rate must be non-confiscatory and established
facts inquired into by application of in the manner provided by the legislature.
the law to the facts established by the  Must not be so low as to be confiscatory or too high
inquiry. as to be oppressive.
Acts which  auditing accounts of a receiver of public moneys
Legislative or Rule-Making Adjudicative are not  determinations of CSC in classification and grading
Resembles a legislature's enactment Declares and enforces liabilities as judicial positions
of statutes. It looks into the future they stand or present or past facts  passing upon a petition to call an election
and changes existing conditions by and under laws supposed to exist.  draft boards
making a new rule to be applied  ascertaining correctness of a tax return
thereafter  parole of prisoners
 transfer of prisoners
 preliminary finding of probable cause
Lays down the general regulations Applies to named persons or to  initial determination as public nuisance
that apply to or affect classes of specific situations  closing and taking charge of banks found to be
persons or situations insolvent

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 violation of terms of collective bargaining agreement
 issuance of warrant of distraint in tax cases
 deportation of an alien
CLASSIFICATION OF ADJUDICATORY POWERS
 enabling powers – grants of denial of permits
 directing powers – corrective powers of public utility commissions,
definition-valuation, classification, fact finding
 dispensing powers – authority to exempt from or relax a general
prohibition or authority to relieve from an affirmative duty
o licensing power = sets a standard; dispensing power =
sanctions a deviation from a standard
 summary powers – designate administrative power to apply
compulsion or force against a person or property to effectuate a legal
purpose without a judicial warrant to authorize such action
 equitable powers – power to determine the law upon a particular
state of facts has the right to, and must, consider and make proper
application of the rules of equity.
Chapter IV – Separation of Administrative and Other Powers
DOCTRINE OF SEPARATION OF POWERS
 It obtains not through express provision but by actual division in our
Constitution.
 It is divided among the 3 departments of the government – the
legislative, executive and judicial.
 It does not mean an entire and complete separation of powers or
functions, which would be impracticable if not impossible. It means a
certain degree of blending or admixture, particularly in
administrative agencies.
 The powers exercised by one should not be exercised by either of the
other departments, and that no department ought to possess, directly
or indirectly, an overruling influence or control over the others.
DOCTRINE OF NON-DELEGATION OF POWERS
 It prohibits the legislative power and the vesting of judicial officers
with non-judicial functions.
 What has been delegated can no longer be delegated again
 It constitutes not only a right but a duty on the part of the delegate by
the instrumentality of his own judgment acting immediately upon the
matter and not through the intervening mind of another. To do
otherwise would be a negation of the duty in violation of the trust
reposed in the delegate mandated to discharge directly.
NON-DELEGATION OF LEGISLATIVE POWER
 The application of such usually arises to the grant of powers pertaining
to lawmaking because of many instances when their delegation is
made.
 The general rule is that congress may not delegate to
administrative agencies the legislative powers vested in it
except when authorized by the Constitution.
o An unconstitutional delegation of legislative power is not
brought within the limits of permissible delegation by the
establishment of procedural safeguards, the right to judicial
review, or by the assumption that the officer acts and will act
for the public good.
DOCTRINE OF NON-DELEGATION IS NOT ABSOLUTE
 It does not preclude a certain degree of admixture of the 3
powers of government in administrative agencies.
 Administrative law is a separate category of law.
o There are questions beyond the determination of the
legislature and which must necessarily be left to the
determination of executive or administrative agencies and the
legislature may authorize others to do those things which
might properly, yet cannot understandingly or advantageously,
do itself. The rule is one of necessity.
o Agencies can deal with the problems with more expertise
and dispatch than can be expected from the legislature or
the courts of justice.
 Requisites of delegation
o Completeness of the statute
o Presence of a sufficient standard
Eastern Shipping Lines v. POEA
KS was awarded with a sum of money by the POEA for the death of her
husband pursuant to a memorandum circular it issued as a standard
contract to be adapted by shipping companies in the hiring of Filipino
seamen pursuant to EO 797 which authorizes the POEA to "protect Filipino
seamen's rights to fair and equitable employment" and was given the
authority "to make necessary rules and regulations to govern the exercise of
its adjudicatory functions"
The court held that the principle of non-delegation of legislative
power was not violated because the authority is clearly and
expressly espoused in the Executive Order. Delegation is the rule and
non-delegation is the exception. Agencies may implement broad policies laid
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down in a statute by filling in the details which the Congress may not have
the opportunity or competence to provide.
The power granted to POEA in requiring the model contract is not unlimited
as there is a sufficient standard guiding the delegate in the exercise of the
authority. It is discoverable in the executive order and it mandates the POEA
to protect the rights of Filipino overseas workers to fair and equitable
employment practices.
DELEGATION TO ADMINISTRATIVE AGENCIES
 They do not have the legislative power and judicial power in the strict
sense. However, limited power may be conferred to carry out the
legislative purpose.
 Those that are purely legislative cannot be delegated, not
those merely incidental to some administrative powers.
 The legislature may not delegate the determination of what the law
shall be, to whom it may be applied, or what acts are necessary to effect
it. What can be delegated is the discretion to determine HOW
the law will be enforced.
 It may delegate the power to make findings of fact.
 The legislature must declare a policy and fix a standard in
enacting a statute but the agency must be authorized to "fill in
the details"
o When the legislature laid down the fundamentals of a law, it
may delegate to administrative agencies the authority to
exercise such legislative power as necessary to carry into effect
the general legislative purpose.
o The possibility that it may be exercised in an arbitrary manner
in defiance of the policy and standard is not a ground for the
objection to the delegation.
 There must be adequate guidelines or limitations in the law
to map out the boundaries of the delegate authority and
prevent the delegation from running riot.
 It is not necessary that there be a formula. The modern tendency is
to be more liberal in permitting grants of discretion to
agencies.
 The standard to guide agencies is either express or implied.
o It need not be spelled out specifically. It could be implied from
the policy and purpose of the statute.
 In delegating a rate fixing power, the only standard is that the
rate is reasonable and just. Absent an express requirement as to
reasonableness, it is implied.
 The completeness test must be adhered to. The statute must be
complete in itself so that by appropriate judicial review and control,
any action taken pursuant to the delegate authority may be kept within
the defined limits of the authority conferred.
o It is stated in such a way that when it reaches the
delegate, the only thing he will have to do is to enforce
it.
o It is sufficient if it enables the person to know his rights
and obligations thereunder.
 Non-delegation does not apply when permitted by the constitution and
in case of delegation to local governments.
US v. Ang Tang
Act No. 2868 was promulgated by the legislature and authorized the
governor general to issue and promulgate temporary rules and emergency
measures for carrying out the purpose of regulating and distributing the
sales of palay, rice and corn. For violations of rules promulgated by the
governor general, a fine or imprisonment was to be imposed. Hence, the
governor general issued a fixed price of rice and penalizing violation
thereof.
The court held that by its very terms, the temporary rules and
measures is left to the discretion of the governor general which
amounts to undue delegation of legislative power. They did not
undertake to specify or define under what conditions the governor general
may issue proclamations, does not specify or define the extraordinary
increase in the prices of palay, rice and corn, and does not state how long
such temporary measure was going to be.
Moreover, the law states that it is the violation of the proclamation of the
governor general which is punishable. The governor general cannot,
determine what act shall constitute a crime or not.
Compania General de Tabacos de Filipinas v. BPUC
An order was issued by the BPUC requiring a filing of a detailed report of
finances and operations in the form set forth in the petition board by virtue
of the law empowering it to, after hearing upon notice, by order in writing,
to require every public utility detailed reports"
The court held that the BPUC has no authority to issue such order
since it is clear that the statute does not authorizes it to do so. The
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provision does not declare or set out or indicate the information the state
requires, what is valuable to it, what it needs in order for it to impose correct
and just taxation, supervision or control or the facts which the state must
have in order to deal justly and equitably with such public utilities and to
require them to deal justly and equitably with the State.
People v. Vera
The probation act was promulgated which provides that it shall be
applicable only to those provinces in which the respective provincial boards
have provided for the salary of a probation officer at the rates not lower
than those now provided for provincial fiscals. Said officers shall be
appointed by the Secretary of Justice and shall be subject to the direction of
the Probation Office.
The court held that the act does not contain definite standards
thus void. It does not lay down any rule or definite standard by which the
officer or board may be guided in the exercise of the discretionary powers
granted to it. In reality, the act leaves the matters for the various provincial
boards to determine for themselves whether the probation law shall apply to
their provinces or not at all. All it has to do is decline to appropriate the
needed amount for the salary of the officer. The time of its taking effect
would be based solely upon the will of the provincial boards and not upon the
happening of a certain specified contingency or upon the ascertainment of
certain facts or conditions by a person or a body other than the legislature.
Pelaez v. Auditor General
Executive Order 33 was promulgated by virtue of the Revised
Administrative Code which empowers the president by EO to create
municipal corporations.
The court ruled that it is an undue delegation of legislative power
since the authority to create municipal corporations is legislative
in nature. The code does not meet the requirements for a valid delegation of
the powers to fix the details in the enforcement of a law. It does not enunciate
the policy to be carried out in implementing it. It only uses the word "public
interest" as a measure and it is obvious that such is not a standard which
meets the requirements settled in jurisprudence for there would be no more
limit for the President to do anything which, in his opinion may be required
by the public welfare or public interest.
Alegre v. Collector of Customs
The administrative Code provides that the Fiber Standardization Board
shall determine the official standards for the various commercial grades of
Philippine fibers that may hereafter be produced in the country for
shipment abroad. It provides that no fiber shall be exported greater than
the amount sufficient to make one bale, without being graded, baled,
inspected and certified as this law provided.
The court held that this is a valid statute. There is no undue delegation
of legislative power. It is nothing more than a delegation of administrative
power in the Fiber Board to carry out the purpose and intent of the law. The
legislature itself could not be expected to do the baling, inspecting, itself. The
power to do that would have to be vested in a board or commission.
Edu v. Ericta
Administrative Order No 2 is issued by the Land Transportation
Commission, otherwise known as the Reflector Law, which requires that all
vehicles shall not be registered if not equipped with reflectors. The enabling
law provides for such authority and further indicates the luminosity
intensity, section of dimensions, placement and color of the reflectors to be
imposed.
The court ruled that this is a valid delegation. In the law, it is clear
that the objective is public safety. Such standard may be express or
implied. The court finds it impractible to require that the legislature
anticipate and provide for multifarious and complex situations that may be
met in carrying out the law.
Echegaray v. Secretary of Justice
The petitioner herein assails the constitutionality of the lethal injection law
for being in violation of the doctrine of non-delegation of legislative powers.
The court held that the law is valid, but declared certain
implementing rules and regulations promulgated by the Bureau
invalid for being in violation of such principle. Such principle admits
certain exceptions found in the constitution: 1) delegation of tariff powers to
the president; 2) delegation of emergency powers to the president; 3)
delegation to the people at large; 4) delegation to local governments; 5)
delegation to administrative bodies.
The Lethal Injection law, which changes the mode of carrying out the death
penalty, sufficiently describes what job must be done, who is to do it and
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what is the scope of his authority. It provides standards and specifies the
public agency which will apply it.
The manual required to be prepared by the director under Section 19 of the
implementing rules is a veritable vacuum for it abdicates the power to
promulgate the manual n the execution procedure to the Director by not
providing for a mode of review and approval thereof. Such renders the
paragraph invalid. Moreover, the requirement of confidentiality of said
manuals even with respect to the convict makes it unduly suppressive. The
contents of the manuals are matters of public concern.
The rules also adds and provides for the suspension of the implementation of
the death penalty while a woman is pregnant or within 3 years after delivery
when clearly, the RPC only provides for a one year reprieve. This is
tantamount to gender based discrimination sans statutory basis and finds no
support form the RPC.
Dissent:
 The law is void since it clearly authorizes 2 authorities to implement
its provisions – the Justice Secretary and the Director of the Bureau
of Customs. It can easily spawn legal absurdities and incongruities.
The legislative choice is as important as the standard to which
should guide the delegate in making the rules.
 It gives the director the power to determine the sequence of events
before and after the execution which is the most significant aspect of
the execution process and worse, it ordered that the manual
governing such details shall be confidential and its distribution shall
be limited to prison personnel. The manual denies a convict of the
right to know how he will die.
SUFFICIENCY OF STANDARDS
 It depends upon the nature of the power exercised and the nature of
the right restricted by such power. It also depends upon whether or not
the proper regulation or control requires the vesting of such discretion.
 Detailed standards are not required especially in regulatory
enactments under the police power. The legislature is not
required to provide such a standard as confers the least amount of
discretion, detailed standards in precise and unvarying forms would be
wholly unrealistic and more arbitrary than a general indefinite one.
 The personal judgment of the agency, where unrestrained, is not a
standard or a sufficient standard. Even where broad standards
are laid down, but the statute expressly adds in the words "in the
opinion" of the agency, or expressly confers policy-making
power upon the agency, it is not a standard.
Rubi v. Provincial Board of Mindoro
The Philippine Legislature enacted Section 2145 of the Administrative Code
which gives the provincial governor and the provincial board the
discretionary authority as to the execution of the law by using the words
"necessary in the interest of law and order" in the statute.
The court held that discretion may be committed by the legislature
to an executive department or official. Who, but the provincial
governor and the provincial board as the official representatives of the
province, are better qualified to judge when such a course is deemed
unnecessary in the interest of law and order. Who but they are fitted to select
sites which have the conditions most favorable for improving the people who
have the misfortune of being in a backward state.
People v. Rosenthal and Osmeña
The Blue Sky Law was enacted by Congress which requires every person,
partnership or corporation to obtain a certificate or permit from the Insular
Treasurer before offering for sale to the public speculative securities. The
treasurer was empowered to cancel or revoke a certificate or permit
previously issued by him. The petitioners assail the constitutionality of the
act on the ground that there is no standard fixed for the determination on
whether or not to grant a certificate or permit.
The court held that there is a sufficient standard provided. The act
specifically provides that the person, partnership or corporation
applying therefore must comply with the provisions of the act
before a permit can be issued. Which only means that the permit shall
be issued when the provisions in the enabling law is complied with.
On the other hand, the authority to cancel a permit was conditioned upon a
finding that such cancellation is in the interest of the public. Such
standard has been deemed sufficient by the courts and the term is without a
settled meaning.
Cervates v. Auditor General
The Government Enterprises Council was created by the president under an
executive order pursuant to RA No. 51 which authorizes the president to
effect reforms and changes in GOCCs for the purpose of simplicity, economy
and efficiency in their operation. The petitioners contend that this is an
undue delegation of power.
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The court held that there is a substantial standard laid down. It
actually lays down a standard policy that the purpose shall be to meet the
exigencies attendant upon the establishment of the free and independent
government of the Philippines and to promote simplicity, economy and
efficiency in their operation. The standard was fixed.
Mutual Film Co v. Industrial Commission of Ohio
Section 3 of the enabling law herein authorizes the board to examine and
censor motion picture film to be publicly exhibited and displayed in the
state. It states that "only such films as are in the judgment and discretion of
the board of censors, of a moral, educational or amusing and harmless
character shall be passed and approved.
The court held that there is no undue delegation of legislative
powers herein since the statute provides provisions against
various judgments and its terms, like other terms, get precision
from the sense and experience of men and become certain and
useful guides in reasoning and conduct. The exact specification of the
instance to their application would be as impossible as the attempt would be
futile. Upon such sense and experience, therefore, the law properly relies.
People v. Jollife
RA 265 conferred upon the Monetary Board and the President the power to
subject to licensing all transactions in gold and foreign exchange in order to
protect the international reserve of the Central Bank during an exchange
crisis and to give the Board and the government the time in which to take
constructive measures to combat such crisis. The Board was authorized to
take such remedial measures as are appropriate to protect the international
stability of the peso, when in the opinion of the Board, the international
reserve is falling and are contrary to national welfare.
The standards provided for in the RA are sufficiently concrete and
definite to vest authority to fill in the administrative details in the
enforcement of the law and to place the grant to said authority
beyond the category of undue delegation. It sufficiently marks the field
within which the board is to act so that it may be known whether he has kept
within it in compliance with the legislative will.
Philippine Association of Colleges and Universities v. Secretary
of Education
Act No. 2706 was promulgated authorizing the Secretary of Public
Instruction to maintain a general standard of efficiency in all private
schools and colleges of the Philippines. It shall also have the authority to
inspect and regulate all said schools and colleges in order to determine the
efficiency of instruction given in the same.
Petitioners herein assert that the law leaves everything to the uncontrolled
discretion of the Secretary or his department to determine what constitutes
a general standard of efficiency and what statement of conditions, acts or
factors must be taken into account to determine the efficiency of instruction.
It is clear that the sections empower the secretary to prescribe
rules fixing the minimum standards of adequate and efficient
instruction to be observed by all schools and colleges as may be
permitted to operate. The secretary has fixed standards as shown by the
memoranda fixing or revising the curricula, the calendars, entrance and final
examinations, admission and accreditation, etc. and the system of private
education has been in operation for 37 years. The legislature can validly rely
on the education, experience and training of those in charge of the
department to ascertain and formulate minimum requirements for adequate
instruction as the basis of government recognition of any private school.
Balbuena v. Secretary of Education
RA 1265 requires all educational institutions to observe daily flag
ceremonies and it authorized the secretary of education to issue rules and
regulations on the proper conduct of flag ceremony.
That the legislature did not specify the details of the flag ceremony
is no objection to the validity of the statute for all that is required
is the laying down of standard and policy that will limit the
discretion of the regulatory agency. To require a standard in detail
would be to destroy the administrative flexibility that the delegation is
intended to achieve.
International Hardwood and Veneer Co v. Pangil Federation
Labor
CA No. 103 is held to empower the court of Industrial Relations to determine
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minimum wages in connection with an industrial dispute. The petitioners
contend that the act does not indicate in what manner and by what
standards or in accordance with what rules the court shall determine the
amount of minimum wage. The wording of the law was that the court shall
act according to "justice and equity: and substantial merits to the case
without regard to technicalities or legal form.
The court held that the words Justice and equity can be regarded
as sufficient standards and it does not infringe on the doctrine of
separation of powers of the state.
Eastern Shipping Lines v. POEA
KS was awarded with a sum of money by the POEA for the death of her
husband pursuant to a memorandum circular it issued as a standard
contract to be adapted by shipping companies in the hiring of Filipino
seamen pursuant to EO 797 which authorizes the POEA to "protect Filipino
seamen's rights to fair and equitable employment" and was given the
authority "to make necessary rules and regulations to govern the exercise of
its adjudicatory functions"
The court held that the principle of non-delegation of legislative
power was not violated because the authority is clearly and
expressly espoused in the Executive Order. Delegation is the rule and
non-delegation is the exception. Agencies may implement broad policies laid
down in a statute by filling in the details which the Congress may not have
the opportunity or competence to provide.
The power granted to POEA in requiring the model contract is not unlimited
as there is a sufficient standard guiding the delegate in the exercise of the
authority. It is discoverable in the executive order and it mandates the POEA
to protect the rights of Filipino overseas workers to fair and equitable
employment practices.
Tatad v. Secretary of Energy
Act No. 8180 or the Oil Deregulation Law states that the oil industry will be
subject to the monitoring of the Department of Energy. The deregulation
phase was divided into the transition phase and full deregulation phase (on
the condition that prices of crude oil are declining and at the time when the
exchange rate of the peso in relation to the US dollar is stable). On Feb 8,
1997, the president implemented the full deregulation of the Downstream
Oil Industry through EO 392 (taking into consideration the depletion of the
OPSF Fund). Its validity is being assailed on the ground that it does not
provide for a determinate or determinable standard to guide the executive
branch in determining whether to implement the full deregulation phase.
The court upheld the validity of the enabling law, but struck down
EO 392 as the full deregulation phase was based on the depletion
of the OPSF Fund. The law did not mention the depletion of the OPSF as a
factor to be given weight by the executive before ordering full deregulation.
As such, the executive rewrote the standards set forth in the RA. The
executive is bereft of any right to alter either by subtraction or addition to the
standards in RA for it has no power to make laws.
RESTRICTION OF GRANT OF JUDICIAL POWER
 Sine the legislature cannot exercise judicial function, it certainly is
precluded fro delegating the exercise of judicial functions to
administrative agencies or officers. However, it does not follow
that it may not perform functions which are in their nature,
judicial and possess and exercise quasi-judicial powers.
 Some judicial powers may be conferred upon and exercised by
administrative agencies without violating constitutional provisions
inhibiting the delegation of judicial power.
 A restricted or limited judicial power to what is incidental and
reasonably necessary to the proper and efficient administration of the
statutes are committed to them for administration.
Lovina v. Moreno
The Secretary of Public Works and Communications caused the removal of
certain dams and dikes in a fishpond owned by L in the municipality of
Macabebe, Province of Pampanga. After notice and hearing to the parties,
the secretary found the constructions to be a public nuisance in navigable
waters and ordered the spouses L to remove closures of Sapang Bulati. They
now allege that this provides the secretary the unrestrained, final and
unappealable authority to pass upon the issues whether a river or stream is
publicly navigable, whether a dam encroaches upon such waters and is
constitutive as a public nuisance and whether the law applies to the state of
facts.
The court held that the RA merely empowers the secretary to
remove unauthorized obstructions or encroachments upon
streams, constructions that no private person was anyway,
entitled to make because the bed of navigable streams is public
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property and ownership thereof is not acquirable by adverse
possession. Although it is true that some extent of discretion is still
exercised, these functions are merely incidental to the exercise of the
power granted by law to clear the rivers and authorities are clear that
they are validly conferrable upon executive officials provided the party
affected is given the opportunity to be heard.
The law authorized the removal of public nuisances, which, according to the
laws, require notice and hearing. It is noteworthy that the law authorizes the
removal of unauthorized dikes either as public nuisances or as prohibited
constructions and those to appellees clearly are in the latter class.
Miller v. Mardo
Under the Reorganization Plan of 20-A pursuant to RA1241, the regional
offices of the department of labor have been given original and exclusive
jurisdiction over a) cases falling under the Workmen's Compensation Law;
b) cases affecting money claims arising from violations of labor standards
on working conditions, unpaid wages, underpayment, overtime, separation
pay and maternity leave of employees and laborers and c) all cases for
unpaid wages, overtime, separation pay, vacation pay and payment for
medical services of domestic help. Prior to this, it was not given jurisdiction
over cases falling under b and c.
RA 1241, created the Government Survey and Reorganization Commission
and empowered it to abolish departments, offices, agencies or functions
which may not be necessary for the efficient conduct of government service,
activities and functions.
The court held that the functions referred to in RA 1241 which
could thus be created, obviously refer merely to administrative,
not judicial functions. It was to carry out the reorganization of the
executive branch which plainly, did not include the creation of courts. Such
conferment cannot be implied from a mere grant of power to a body such as
the government survey and reorganization commission to create functions in
connection with the reorganization of the executive branch of the
government.
LAW WHERE STANDARD MAY BE EXPRESSED OR CONTAINED
 It may be prescribed in the law itself.
o It may be found within the framework of the statute under
which the act is to be performed, or may inhere in its subject
matter or purpose.
 Standard may be found in other sources
o It may be found in other pertinent legislation or an executive
order or in the field of law.
o A standard set in one section of a statute may be held to
provide the guide for exercise of power under another section.
o The standard of common sense and experience of the
members of a film censor board was used by the US Supreme
Court in the determination of when a film is or moral,
educational or amusing and harmless character.
EXCEPTIONS TO RULE REQUIRING STANDARDS OR GUIDES
 It is not always necessary to prescribe a specific rule of action to guide
the exercise of administrative discretion.
 Uncontrolled may be vested on administrative agencies in the ff. cases:
o Handling of state property funds
o Power to form and consolidate school districts, and
substantially the same principle has been stated in regard to
exclusion of aliens
o Purely internal administration matters
o Power of board to make recommendations which bind no one
has been held administrative and not legislative
o Matters which are privileges as to the using of property, etc.
but which under certain conditions, may be harmless or well
managed.
o Where it is impracticable to lay down a definite comprehensive
rule
o Relates to administration of a police regulation and is
necessary to protect the general welfare
 The courts will infer, in the abovementioned cases, that the
standard of reasonableness is to be applied.
PERMISSIBLE DELEGATION OF LEGISLATIVE POWER UNDER
THE CONSTITUTION
 Delegation of legislative power is expressly authorized in the
provisions of the constitution:
o in times of war or emergency, the president may be
authorized by law to exercise powers necessary and
proper to carry out a declared national policy
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o the president may be authorized by congress (by law)
to impose tariff rates, import and export quotas,
tonnage and wharfage dues and other duties or
imposts within the framework of the national development
program of the government
o system of initiative and referendum whereby the people
can directly propose and enact laws or approve or reject any
act or law or part thereof passed by the congress after the
registration of a petition therefor signed by at least 10% of the
total number of registered voters of which every legislative
district must be represented by at least 3% of the registered
voters thereof.
o Local government code
o LGUs shall have the power to create its own sources of
revenue and to levy taxes, fees and charges subject to
guidelines and limitations as the congress may provide
o No PCMB may be created, divided, merged, abolished or its
boundary substantially altered except in accordance with the
criteria established in the LGC and subject to approval of votes
cast in a plebiscite in the political units directly affected.
o Creation of autonomous regions through a plebiscite
called for the purpose. Those who vote favorably, shall be
included in the autonomous region.
 The organic act of the autonomous regions shall
provide for legislative powers over admin
organization, creation of sources of revenue, ancestral
domain and natural resources, personal, family and
property relations, regional urban and rural planning
development, economic social and tourism
development, educational policies, preservation and
development of the cultural heritage and such other
matters as may be authorized by law for the promotion
of the general welfare of the people in the region.

DELEGATION OF LEGISLATIVE POWERS TO LOCAL

GOVERNMENTS
 An exception to the general rule against the delegation of legislative
power sanctioned by immemorial practice permits the central
legislative to make such delegation to local authorities.
o Local affairs shall be managed by local authorities, and general
affairs by the central authority, and hence, while the rule is
also fundamental that the power to make laws cannot be
delegated, the creation of municipalities exercising local self-
government has never been held to trench upon that rule.

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Chapter V – Administrative Proceedings
GENERALLY
 The discussions herein are concerned principally with the
adjudicatory or determinative powers of administrative
agencies, the manner of their exercise and the validity, operation and
effect of such exercise.
 Agencies act both in the legislative and judicial capacity. In a
single determination, an administrative agency may act both in a
legislative and a judicial capacity.
 Fundamental procedural requirements to be observed. A duty
imposed upon an administrative agency which requires a quasi-judicial
proceeding as a requisite of action is widely different from an ordinary
executive action. It carries with it a fundamental procedural
requirement to the end that arbitrary action be excluded.
 Administrative proceedings are at end when an appeal has been taken
to court, and it is merged in the decree of court when the agency has
procured a judicial decree enforcing its order.
CHARACTER OF PROCEEDINGS (adversarial, quasi-judicial/judicial,
civil, not an action at law) - QuAdCiL
 Many proceedings before administrative agencies are adversary in
nature, as in the case of proceedings before the SEC. Every proceeding
is adversary in substance if it may result in an order in favor of
one person against another and the primary proceeding is
nonetheless an adversary one because the primary purpose of the
agency is to protect public interests.
 It partakes the nature of judicial proceedings if it involves a) taking
and evaluation of evidence; 2) determination of facts based
upon the evidence presented; 3) rendering an order or
decision supported by facts.
 Such proceeding has been held civil in character even though the
charge before the agency is based upon a violation of a penal law.
Fairness may require the observance of the salutary purposes behind
certain rules of criminal procedure.
 It is not an action at law, nor is it a litigation between private
parties. It is a public one looking to public ends. It is neither
preventive nor compensatory, but are preventive and remedial to
implement a public policy.
JURISDICTION
 It is the power given by law to hear and determine a case. There must
be jurisdiction over the subject matter and over the person.
 It is essential to give validity to the determinations of
administrative agencies.
o A void judgment is no judgment at all. It can never become
final and executory. Hence, an appeal is out of the question.
o It only has powers conferred to it expressly it by necessary
implications. But where it acts in a spirit of hostility and
unfairness in the examination of a witness, thereby depriving
him of a full and fair hearing, its decision will be set aside for
it has rendered itself incapacitated to consider and
weigh the evidence impartially.
 They are tribunals of limited jurisdiction. It is dependent on the
enabling law and the terms of the law reposing power in them. They
cannot confer jurisdiction on themselves.
 It cannot enlarge its own jurisdiction nor can jurisdiction can
be conferred upon the agency by parties before it. Deviations
from the enabling law cannot be upheld because it is based upon
agreement, contract, or consent of the parties; nor can they be made
effective by waiver or estoppel.
o However, active participation of a party in a case pending
before a quasi-judicial body is tantamount to a
recognition of the jurisdiction and a willingness to
abide by the resolution of the case and will bar said
party form later impugning its jurisdiction.
 When a statute confers an agency to act in a particular situation, it
necessarily confers upon such agency authority to determine
whether the situation is such as to authorize the agency to
act – that is, to determine the coverage of the statute – and this
question need not and in fact, cannot be initially decided by a court.
o An agency's determination as to its jurisdiction is not
conclusive upon the courts.
 Failure of an agency to exercise a power for a long time
indicates a practical construction that the power does not
exist. However, a failure to exercise jurisdiction does not
result in its loss.
o An agency may decline to exercise jurisdiction over a case.
 Expiration of a statute may be held not to deprive the administrative
agency of jurisdiction to enforce the statute as to liabilities incurred
while the statute was in force, where a general saving statute continues
such liabilities. Where there is no saving clause, repeal of a statute
while proceedings are pending and prior to the filing of an order may
remove any support in law for such order.
 Agencies are creatures of the law and they have no general
powers but only such as those conferred upon them by law.
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o Where the law confines in an administrative office the
power to determine particular questions or matters
upon the facts presented, the jurisdiction of such office
will prevail over the courts.
o However, it may occur that the court has jurisdiction to take
cognizance of a case where the matter is also judicial in
character.
o The doctrine of primary jurisdiction – if the case is such
that its determination requires the expertise, specialized skills
and knowledge of the proper administrative bodies because
technical matters or intricate questions of facts are involved,
then relief must first be obtained in an administrative
proceeding before a remedy will be supplied by the
courts even though the matter is within the proper
jurisdiction of the court.
La Union Labor Union v. Philippine Tobacco Fluecuring and
Redrying Corporation
Under the Section 9 Article 7, Chapter 3 of the Code of Rules and Procedure
Promulgated on Jan 1953 by the Secretary of Labor, pursuant to the
Minimum Wage Law, the Wage Administration Service was empowered to
render a decision binding on the parties in cases involving claims for wages,
underpayments and in cases where the parties enter into a written
agreement to submit their dispute to the WAS for arbitration. LULU (a
union) filed a case for wage differentials with the WAS and the latter
rendered a decision in favor of the claimants and ordered the employer to
submit the payroll pertaining to the period covered by the claims.
The court held that the authority of the WAS was limited to
conciliation of dispute involving claims for wages. Its ordinary
function was to hear complaints or claims for wages and conciliate the
parties. If possible, and if they are willing to submit their case for arbitration,
to have said parties enter into a written agreement that they submit the case
for arbitration and decision, and that they would abide by the result of said
arbitration, otherwise, all that WAS could do is, if it found the claims
for wages meritorious, is to file the complaint in a competent
court. The law governing the WAS authority requires a written agreement
signed by the parties to submit to arbitration and to abide by the result of the
decision flowing from said arbitration. WAS, being without jurisdiction,
its decision is without any legal force and effect.
Roxas v. Sayoc
The Collector of Customs declared certain belongings forfeited to the
government. Subsequently, RA 650, the Import Control Law, authorizing
the Collector to do so, expired. R now contends that the Commissioner
already lost jurisdiction over the case therefore, the decision was null and
void.
The court stated that a court, once it has acquired jurisdiction
over a case, retains it even after the expiration of the law
governing the case. The case herein is concerned with the expiration of a
law, not with the abrogation of law. Having acquired jurisdiction, the mere
expiration of the enabling law did not affect such jurisdiction.
Feliciano v. Director of Patents
An application for Patent was filed with the Patent Office. M filed a motion
to intervene claiming that the applicant inventors sold, bartered and
assigned to him the right to contract or deal with the sale of their invention
through the corporation that they were organizing under his direction and
prayed that the applicants be directed to acknowledge it and another
contract before the notary public, to have both contracts recorded in the
Patent Office and in the Office of the RD and that a patent be issued in his
name and in the name of the inventors.
The Director of Patents had no authority to comply with such
prayers. He, in effect, is praying that the director of patents compel the
applicant inventor to sign the contract executed and signed by the other
applicant inventor and have said documents acknowledge it. Under the
provisions of the Patent Law, the director has no authority to compel.
Such amounts to a judicial function which would require the
determination or finding by a court of competent jurisdiction as to
whether there was a meeting of the minds of the contracting
parties.
PROEDURE TO BE FOLLOWED
 Administrative procedure may refer to the procedure performing
purely executive or ministerial functions or for rule-making
or ministerial functions. The procedure to be followed here is not
the ones prescribed for ordinary civil actions.
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 Procedures are to be construed liberally in order to effect a just,
speedy and inexpensive settlement and disposition of the disputes
between the parties.
o Procedural rules governing service of summons are not strictly
construed. It may be relaxed to relieve a litigant an
injustice not commensurate with his failure to comply
with the prescribed procedure.
 The enforcement of statutory rights is not foreclosed by the
absence of a statutory procedure. When the statute does not
require any particular method to be followed by an administrative
agency, the agency may adopt any reasonable method to carry
out its functions.
o they are not bound by the rigid requirements of the Rules of
Court. What is missing in the rules may be found in the general
principles of logic, justice and equity.
 The important consideration herein is that both parties are
afforded an opportunity to be heard and they availed
themselves of it to present their respective positions on the matter in
dispute.
 A great mass of administrative adjudications are made formally,
especially where the decision is made upon inspection or tests, or
complaints are disposed of by consent or by correspondence. The
proceedings may not, however, be so informal as to amount
to a denial of the right to a hearing and a mere general
discussion without issues drawn is not a hearing.
RULES ON ADJUDICATION UNDER THE ADMINISTRATIVE CODE
 Found in Book VII of the Administrative Code.
 Section 10. Every agency shall, in the public interest, encourage
amicable settlement, compromise and arbitration.
 Section 11. In any contested case, all parties are entitled to notice
and hearing.
o Such notice shall be served at least 5 days before the date
of the hearing and shall state the date, time and place of the
hearing.
o They shall be given the opportunity to present evidence
and, if not precluded by law, informal disposition may be
made.
 Section 12. The agency may give probative value of evidence commonly
accepted by reasonably prudent men in the conduct of their affairs.
o Documentary evidence may be received in the form of
copies or excerpts if the original is not available with
opportunity to compare copy with original.
o Right to cross examine and submit rebuttal evidence
o May take note of judicially cognizable facts and of
generally cognizable technical or scientific fact within its
specialized knowledge with opportunity to contest the
facts so noticed.
 Section 13. The agency shall have the power to require the
attendance of witnesses or the production of books, papers,
documents and other pertinent data upon request during hearing upon
showing of general relevance.
o They may invoke the courts to punish contumacy or refusal as
contempt, but not hold a person in contempt if not
expressly granted by the enabling law.
 Section 14. The decision shall become final and executory 15 days
after the receipt of a copy by the party adversely affected
unless within that period, an appeal or judicial review has been
perfected.
o May also file a motion for reconsideration
 Section 16. Publication and compilation of decisions
o Publish and make available for public inspection all
decisions or final orders in the contested cases.
o Prepare a register or compilation of those decisions
or final orders for the use of the public.
 Section 17. Licensing procedure
o When the grant, renewal or denial is required to be
preceded by notice and hearing, the provisions on
contested cases shall apply insofar as practicable.
o No license may be withdrawn, suspended, revoked or annulled
without notice and hearing except those which are
willful violation of pertinent laws, rules and
regulations or when the general welfare requires
otherwise.
 Section 18. When a renewal is made, the existing license shall not
expire until the application shall apply insofar as practicable.
 Section 19. An appeal from a final decision of the agency may
be taken to the department head.
 Section 20. An appeal shall be perfected within 15 days after the
receipt of the copy of the decision of the complained of by the party
adversely affected by filing with the agency which adjudicated
the case, a notice of appeal, serving copied upon the prevailing
party and appellate agency and paying the required fees.
o If a motion for reconsideration is denied, the movant
shall have the right to perfect his appeal during the
remainder of the period for appeal reckoned from the
receipt of the resolution of the denial. If reversed on
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reconsideration, the aggrieved party shall have 15 days from
the receipt of the resolution.
o Upon perfection of the appeal, the agency shall transmit the
records of the case to the appellate agency.
 Section 21. The appeal shall stay the decision appealed from if
the appellate agency does not direct otherwise.
 Section 23. The decision of the appellate agency shall become final
and executory 15 days after the receipt by the parties of the
copy.
 Section 24. Each agency shall have such number of qualified and
competent members of the bar as hearing officers as may be necessary
for the hearing and adjudication.
o No hearing officer shall engage in the performance of
prosecuting functions in any contested case or any factually
related case.
 Section 25. Agency decisions shall be subject to judicial review
against the agency, officers, and all indispensable and necessary parties
as defined in the Rules of Court.
o The petition for review shall be perfected within 15
days from receipt of the final administrative decision.
1 motion for reconsideration may be allowed.
o Made on the basis of the record taken as a whole. When
supported by substantial evidence, shall be final except when
specifically provided otherwise by law.
 Section 26. Transmission of Record. Within 15 days from the service of
the petition for review, the agency shall transmit to the court the
original or a certified copy of the entire records of the proceeding
under review.
Note: Applicable to all agencies except the congress, judiciary, constitutional
commissions, military establishments in all matters relating to the Armed
Forces personnel, the board of pardons and parole and state universities and
colleges.
CONTROVERSIES AMONG GOVERNMENT OFFICES AND
CORPORATIONS
 All disputes, claims and controversies, solely between or among the
departments, bureaus, offices, agencies and instrumentalities of the
National Government including GOCCS, such as those arising from
the interpretation and application of statutes, contracts or
agreements shall be ADMINISTRATIVELY SETTLED OR
ADJUDICATED in the manner provided for in the Administrative
Code.
 All cases involving questions of law shall be submitted and settled by
the Secretary of Justice as attorney general of the national
government and as ex officio legal adviser of all GOCCs. His ruling
shall be conclusive.
 Questions of fact and law: submitted to the Solicitor General (if it
only involves disputes, claims or controversy of the departments or
other agencies including GOCCs); and the Secretary of Justice (all
others).
 Determination of factual issues may be referred to an arbitration
panel composed of one representative each of the parties
involved and presided over by a representative of the Secretary of
Justice or the Solicitor General (as the case may be).
o The decision of the SecJus and the SolGen when approved by
the SecJus shall be final and binding upon the parties
involved.
o It may be taken to the president where the amount of the claim
exceeds 1M. The decision of the president shall be final.
 SecJus shall promulgate the rules and regulations necessary to carry
out such provisions.
DUE PROCESS OF LAW IN ADMINISTRATIVE ADJUDICATION
 The right to due process is not merely statutory, it is a constitutional
right and must be applied to administrative proceedings.
 It simply means an opportunity to explain one's side or an
opportunity to seek a reconsideration of the action or ruling
complained of.
o For as long as the parties are given fair and reasonable
opportunity to be heard and to submit evidence in support of
their arguments before judgment was rendered.
o Technical rules of procedure and evidence are not strictly
applied.
o No violation of due process even if no formal or trial type
hearing was conducted where the party was given the chance
to explain his side.
 The standard of due process that must be met in agencies allows a
certain latitude as long as the element of fairness is not
ignored. They are not bound by the rigidity of procedural
requirements observed in courts.
REQUISITES OF ADMINISTRATIVE DUE PROCESS
 The right to notice, be it actual or constructive of the institution
of the proceedings that may affect the person's legal right.
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 Reasonable opportunity to appear personally or with the
assistance of a counsel and defend his rights and to introduce
witnesses and relevant evidence in his favor
 Tribunal vested with competent jurisdiction
 a finding or decision supported by substantial evidence
presented at the hearing or at least ascertained in the records or
disclosed or made known to the parties affected.
 A party in an administrative case may or may not be assisted by
counsel irrespective of the nature of the charges and of
respondent’s capacity to represent himself.
o The right to counsel is not imperative in administrative
investigations because the inquiries are conducted merely to
determine whether the facts that merit disciplinary
measures against the party with the purpose of
maintaining the dignity of government service.
 Denial of due process constitutes grave abuse of discretion.
Villa v. Lazaro
AV was granted a building permit issued by the City Engineer to construct a
funeral parlor but was later enjoined by a decision in court. Instead of filing
an appeal in court, he lodged a complaint with the Human Settlement
Regulatory Commission (HSRC) on the same ground. A telegram was sent
to him by the commissioner to transmit the proof of location of clearance
granted by such office. However AV made no response.
Thereafter, AV received a show cause order signed by the commission
requiring her to show cause why a fine should not be imposed on her or a
cease and desist order for her failure to show proof of the location
clearance. In spite of her communication that she already previously mailed
all the required documents, she received an order, fining her and requiring
AV to cease operations.
The court held that there was a denial of due process herein. While
respondent commission took cognizance of the complaint and required AV to
submit a locational clearance, said respondent did not then or at any time
before the issuance of the order and writ of execution complained or bother
to put her on notice, formally or otherwise, of Veneracion's complaint.
Commissioner acted as if the documents sent by AV did not exist at all. True,
only copies were submitted, but ordinary prudence and fairness dictated at
least some inquiry into their authenticity and this would not have posed any
great difficulty considering their purportedly official origins. All of the
foregoing translate to a denial of due process against which the defense of
failure to take timely appeal will not avail.
INSTITUTION OF PROCEEDINGS
 Depends on the purpose served by the particular agency and the
governing statute or rules of the agency.
o Ex parte application (license, permit, approval or consent,
or the filing of a claim or an application for benefits)
o Filing a charge or complaint by an aggrieved person on
the basis of which notice of hearing is issued
o Under other statutes, particular admin agencies may institute
proceedings on their own initiative, motion or
complaint.
NECESSITY FOR NOTICE AND HEARING
 Depends on the character of the proceeding and the circumstances
involved
 General rule: notice and hearing are not essential to the validity of
administrative action where the administrative body acts in the
exercise of executive, administrative, or legislative functions
 When it acts in a judicial of quasi-judicial matter and its acts
are particular and immediate rather than general and
prospective, the person whose rights or property may be
affected by the action is entitled to notice and hearing.
o Notice to enable a party to be heard and to present evidence is
not a mere technicality or a trivial matter in any judicial or
quasi-judicial proceedings.
o Parties who choose not to avail themselves of the opportunity,
despite due notice, cannot validly complain of a denial of due
process.
SUFFICIENCY OF NOTICE
 Where the statute provides the manner, form, and time of notice, the
notice must conform to the prescribed provisions at least substantially
and a statutory provision may not be altered by a rule of the agency.
 Due process of law is afforded in admin proceedings by
constructive service or notice or process on parties.
o Notice by publication pursuant to law will sustain jurisdiction.
o Procedural rules governing summons are not strictly construed
in admin proceedings. Substantial compliance is sufficient.
WAIVER OF RIGHT TO NOTICE
 A failure to comply with the requirements may result in failure to
acquire jurisdiction.
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 Generally, the right to notice in an administrative
proceeding may be waived.
o If a general appearance is mad, jurisdiction over the person is
conferred even though there was no proper notice or process.
o Personal notice is not required where it is impossible to
give such notice.
DENIAL OF DUE PROCESS MAY BE CURED
 What the law prohibits is not the absence of previous notice, but
absolute absence thereof and lack of opportunity to be heard or as has
been stated, it is not the lack of previous notice by the denial of the
opportunity to be head.
o A motion for reconsideration or appeal within the admin
agency is curative in character on the issue of alleged denial of
due process. A party, having had the opportunity to file his
comment and memorandum for his defense, which he actually
availed of, or to be heard on his motion for reconsideration
which was duly considered by the administrative body, is not
deprived of due process.
ELEMENTS OR ESSENTIALS OF RIGHT TO HEARING
 An administrative hearing must be fair or as it is frequently stated,
full and fair, or fair and adequate, or fair or open.
 The right to full hearing includes the right of the party interested
or affected:
o To present his case or defense, and submit evidence oral or
documentary, in support thereof
o To know the claims of the opposing party and to meet them
o To cross-examine witnesses for a full and true disclosure of the
facts
o To submit rebuttal evidence
 An actual hearing is not always essential. As long as he was
given the opportunity to defend his interest in due course, he cannot be
said to have been denied due process of law.
DUE OF ADMINISTRATIVE BODY TO CONSIDER THE EVIDENCE
PRESENTED
 The administrative agency must consider the evidence presented.
 The body or official must act on its or his own consideration of the law
and the facts of the controversy, and not simply accept the views of a
subordinate.
 He should render his decision in such a manner that the
parties to the proceeding can know the various issued
involved and the reasons for the decision rendered.
INVESTIGATION AND HEARING DISTINGUISHED
Investigation Hearing
May be held in private and are There are parties and issues of law
formal proceedings to obtain and of fact to be tried and at the
information to govern future actions, conclusion of the hearing, action is
have no parties and are not taken which may affect the
proceedings in which action is taken rights of the parties, and parties
against anyone. are entitled to be present in person
and by counsel, participate in
hearing and entitled to be furnished
a record of the proceedings.
National Union of Printing Workers v. Asia Printing
D was employed as pressman in the printing establishment of Asia Printing.
He was dismissed because of his union activities with the National Union of
Printing Workers of which he was a member. The prosecutor found a prima
facie case. Hence, the prosecutor filed a complaint against Asia Printing
with the CIR. After hearing, the judge dismissed the complaint for unfair
labor practice. D asserts that since the prosecutor found a prima facie case
against Asia Printing, CIR should have rendered judgment in his favor. He
further asserts that a preliminary investigation was not required in this
case and that said procedure was disadvantageous to the petitioner in that
it exposed his evidence in advance.
The court held that the investigation done by the prosecutor was
different from the hearing conducted by the CIR itself.
Consequently, the findings of the prosecutor cannot be made the basis of a
decision or award. Furthermore, under the law, an investigation is required
of the CIR before it an unfair labor practice can be filed and that said
investigation can be done by any member of any agent thereof like the
prosecutor, as in this case. It is only when the charge is filed that the CIR
intervenes by requiring respondent to answer the complaint and then both
parties are heard to receive the evidence to be adduced by them.
REQUIREMENT OF NOTICE AND HEARING BY LAW OR
REGULATION
 Where provided by law
 Where it is not provided by law, a statute reposing powers in an
administrative agency to determine particular questions may be
deemed to contain provisions for notice and hearing as required by the
due process of law. In the absence of statutory provision, the question
is whether there is a right to notice and hearing is
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determined by the terms of the particular statute and the
attendant circumstances.
 Where provided by regulations
o The agency regulations may so provide. In such case, the
regulations may be held to embrace all the elements of a fair
hearing.
Bautista v. Workmen's Compensation Commission
The hearing officer herein ordered a dismissal of a claim for compensation
for repeated non-appearance. The records, however, show that their failure
was due to lack of notice or that the notice was received after the scheduled
date.
The court held that the WCC abused its discretion in ignoring and
passing upon the issue. The very rules of the Commission require the
giving of reasonable notice and hearing to each interested party by service
upon him personally or by registered mail of a copy at his last known
post office address or if he is represented by a counsel, through the latter.
Claimant was clearly deprived of his day in court.
CONSTITUTIONAL REQUIREMENT OF NOTICE AND HEARING
 Administrative agencies may not deprive, nor may a statute empower
them to deprive a person of his constitutional rights without notice and
hearing which is adequate and fair. A hearing or opportunity to be
heard before the citizen is deprived of his rights is absolutely essential
to due process.
 It is only essential when the agency exercises its quasi-judicial
function. In executive or legislative functions, issuing rules and
regulations are not required.
Danan v. Aspillera
This is a case where a certificate of public convenience was cancelled solely
on the basis of the report of an engineer of the Public Service Commission.
They failed to appear during the hearing allegedly because of an incident
they met on the way to Manila.
The court held that the ex parte revocation was in violation of due
process since it was revoked without giving the operator’s
previous notice and opportunity to explain their side. The agency
has the duty to maintain a due regard for the constitutional rights of parties-
litigants.
Manila Electric Co v. Medina
After hearing on an application of Meralco for increased rate schedules, the
PSC approved the application. However, they subsequently, without notice
or hearing the applicant, issued an order suspending the effectivity of the
decision.
Aside from the fact that the enabling law confers no jurisdiction
on the PSC to suspend, the same was issued without giving the
party an opportunity to be heard. In effect, the suspension amounted to
a denial of due process. Meralco has valuable rights of which it was deprived
without being given a chance to be heard.
Manila Electric Co. v. PSC
PSC rendered a decision setting the rates the MERALCO was authorized to
charge its customers on the basis, solely, of the report of the General
Auditing Office which had audited and examined the Meralco books of
account. Requests for hearing have been denied.
The court held that this was in violation of due process in that
there was no hearing and opportunity to be heard. There could be no
shortcuts in the disposition of the time-honored principle that no one should
be deprived of his constitutional rights without due process.
Commissioner of Immigration v. Fernandez
C and his 3 brothers were admitted to the Philippines on the ruling of the
Board of Special Inquiry of the BI that they were Filipino citizens. The
ruling was affirmed by the Board of Commissioners. However, the new
board reversed the decision and issued a warrant of exclusion without
notice given to C of the exclusion proceedings.
The court held that this was a violation of due process. The right to
Philippine citizenship had already passed upon by the Board of equally and
duly constituted commissioners. At least, they could have notified C or
exerted efforts to cause his presence, by or through the instrumentalities and
agencies that the government has at its command. The review of the new
Board may breed chaos in the Bureau of Immigration.
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Maceda v. Energy Regulatory Board
The Energy Regulatory Board relaxed its procedures by having all the
evidence in chief of all applicants for oil price increase on record just before
their witnesses are cross-examined. The petitioner herein seeks the
nullification of the order on the ground that the hearings conducted in the
second provisional increase in oil prices did not allow him substantial cross-
examination.
The court held that there was no deprivation of due process
herein. The order of testimony of both with respect to examination of the
particular witness and to the general course of the trial is within the
discretion of the court and the exercise of this discretion in permitting to be
introduced out of the order prescribed by the rules is not improper. Matters
of rate or price fixing is considered as exercising a quasi-legislative, not a
quasi-judicial power. As such, the agency is not bound by the strict or
technical rules of evidence governing court proceedings.
Padilla Dissent: Full dress hearing is absolutely necessary. The people,
represented by reputable oppositors, deserve to be given full opportunity to
be heard in their opposition to any increase in the prices of fuel.
Sarmiento Dissent: Oil prices are best judged by the political leadership. It is
not an economical issue.
PROCEEDINGS IN WHICH NO HEARING IS REQUIRED
 Due process is dependent on the circumstances. While a day in court is
a matter of right in judicial proceedings, it is otherwise in
administrative proceedings since they rest upon different principles.
In some instances, even a hearing and notice are not
required.
 Only when constitutional rights are claimed does the
constitution require notice and hearing.
o In many cases, to decide whether a right or a privilege is to
be granted, notice and hearing is not necessary in the
absence of an express or implied statutory provision.
o If no personal property rights are involved and it is only a
privilege, notice or hearing may not be essential.
o Where a right is granted conditionally and subject to
termination, it may be withdrawn in accordance with the
conditions subject to which it was received, including the
absence to the right of hearing.
 Hearing is only essential when the power exercised is quasi-
judicial in nature.
o However, there are cases when the power is to be exercised
summarily without prior notice or hearing or even notice to
the parties affected.
o Notice and hearing are not required for: 1) summary
abatement of a nuisance per se; 2) distraint and levy
upon the property of a delinquent taxpayer; 3)
preventive suspension of a public officer pending
investigation.
o Interlocutory orders may be issued without previous notice
and hearing.
o The order granting provisional relief, however, must be based
on substantive evidence. Such is akin to a temporary
restraining order or a preliminary attachment which are
given ex parte but are subject to the resolution of the
main case.
 The right to a hearing or right to particular elements of a fair trial may
be waived.
Suntay v. People
Passport of petitioner who was charged with seduction and left the country
was cancelled by the Secretary of Foreign Affairs without notice and
hearing.
The court held that the cancellation was not whimsical or
capricious. Where the holder of a passport is facing a criminal charge in
our courts and left the country to evade criminal prosecution, the Secretary,
in the exercise of his discretion, revoke the passport already issued When
discretion is based upon an undisputed fact, such as the filing of a criminal
complaint, hearing may be dispensed with by such officer.
Bishop v. Galang
An application herein for an extension of stay of an alien was denied by the
DFA on the basis of confidential reports without conducting a formal
hearing on the application.
The court held that the extension of stay of aliens is purely
discretionary on the part of the immigration authorities. The
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courts have no jurisdiction to review the purely administrative practice of
immigration authorities of not granting formal hearings in certain cases as
the circumstances may warrant for reasons of practicability. A day in court is
not a matter of right in administrative proceedings.
APPLICABILITY OF RULES GOVERNING JUDICIAL
PROCEEDINGS
 The provisions of the Rules of Court may be applied suppletorily to
proceedings before an administrative body only in the absence of
different and valid statutory or administrative provisions prescribing
ground rules for the investigation, hearing and adjudication of cases
before it.
 Procedure in agencies are not as strict as that of the court. The
atmosphere is one of expeditiousness, expertness or liberally conceived
remedies.
 Only such as are fundamental and essential like the right of cross-
examination are observed.
 However, they must act within, and cannot exceed, their jurisdiction,
nor entirely dispense with the basic rules on proving allegations.
 It does not empower them to act arbitrarily and even a statutory
exemption from the due process guarantee in the exercise of the
powers is not an excuse.
 The right to notice and hearing is essential to due process
and its non-observance will, as a rule, invalidate the
administrative proceedings.
o The constitutional mandate is deemed fully satisfied where the
parties are afforded fair and reasonable opportunity to explain
their side of the controversy.
Bautista v. Workmen's Compensation Commission
The hearing officer herein ordered a dismissal of a claim for compensation
for repeated non-appearance. The records, however, show that their failure
was due to lack of notice or that the notice was received after the scheduled
date.
The court held that the WCC abused its discretion in ignoring and
passing upon the issue. The very rules of the Commission require the
giving of reasonable notice and hearing to each interested party by service
upon him personally or by registered mail of a copy at his last known
post office address or if he is represented by a counsel, through the latter.
Claimant was clearly deprived of his day in court.
DELEGATION OF AUTHORITY TO HEAR AND RECEIVE EVIDENCE
 While the power to decide resides solely in the administrative agency
vested by law, this does not preclude a delegation of the power to other
persons such as hearing officer, examiner, etc.
 Essential that judgment and discretion are finally exercised
by proper officer.
o It is sufficient that the judgment and discretion be finally
exercised by those authorize by the law.
 Due process requirements must be observed
 Essential that officer acts on his own independent judgment
o One must rely on his independent consideration of the law and
the facts and not simply accept the views or recommendations
of the subordinates in arriving at a decision.
American Tobacco v. Director of Patents
The Director of Patents herein delegated the hearing of the petitioner’s cases
to hearing officers pursuant to an amendment which empowers such
director to do so. Petitioners allege that such is void because under the law,
the director must personally hear and decide inter partes cases.
The court held that administrative flexibility, as in this case is
necessary for prompt and expeditious discharge of duties. The law
should be given a construction so as to give the official the flexibility
necessary. It could hardly be expected in view that the law requires him to
hear personally each and every case pending his office. Unnecessary
and unimportant details often occupy far too much time and energy of heads
of agencies. Sub-delegation of power is justified by sound principles
of organization.
EVIDENCE IN ADMINISTRATIVE PROCEEDINGS
 An administrative agency is not bound by the strict rules governing the
reception of evidence in court proceedings.
o It may apply such rules or substantially conform to them; or it
may waive them if such a waiver is necessary to ascertain the
substantial rights of all the parties to the proceedings.
o Mere admission of matters which would be deemed
incompetent in judicial proceedings would not invalidate the
administrative determination.
 Particular judicial rules
o Best evidence rule
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o Principles that transactions between 2 parties should not be
used against a third party
o Expert and opinion evidence
o Privilege of witnesses
o Proper authentication of records
o The use of interrogatories
o The rule as to contradiction of one's witness
 Essential rules of evidence
o Even if administrative agencies are not bound by technical
rules, this is not to be construed as a license to
disregard certain evidentiary rules
o Basic rules that must be observed: evidence must have
probative value, the right allocation of burden of proof, the
degree of proof, the right to know the evidence submitted or to
be considered, to inspect documents, to cross-examine
witnesses and to offer evidence
 Probative value
o Evidence must be substantial
o The complainant has the burden of proving, by substantial
evidence (not proof beyond reasonable doubt).
o Substantial evidence is more than a mere scintilla. Such
relevant evidence as a reasonable mind might accept as
adequate to support a conclusion.
o Mere corroborated hearsay or rumor does not
constitute substantial evidence. As a matter of policy, it
must provide for the exclusion of irrelevant,
immaterial or unduly repetitious evidence that is
wholly without probative value.
o When 2 conflicting occasions are supported by substantial
evidence, the administrative bodies may choose which to
uphold for that reason, even flip flop on its actual findings
without thereby committing grave abuse of discretion.
 Hearsay rule – it is generally held admissible in proceedings before
administrative agencies, at least for limited purposes especially when
not objected to.
o In judicial, it may also be used for the purpose of
supplementing or explaining any direct evidence.
o But it has been held inadmissible if the question at issue
is not a matter of opinion such as valuation of property,
but purely a question of fact which is susceptible of
accurate determination.
 Admissions and declarations (dying declarations, of deceased
persons against their interests, are admissible)
o Self serving declarations are, as a rule, excluded.
 Evidence offered during the hearing
o All parties must be fully or fairly appraised of the evidence
submitted or to be considered, and nothing can be treated as
evidence which is not introduced as such unless it is known to
all parties that evidence formally introduced has been received
by the agency, or a fact is properly supplied by official notice or
presumption.
 Agency files and records
o It is improper for the agency to base its decision or findings
upon facts gathered from its own filed without introducing the
files in evidence, or upon facts obtained from other cases
pending before or previously decided by the tribunal.
o But there are cases where they can take judicial notice
of their records or decisions or may act on the
knowledge of matters disclosed to it through its own
records.
o They may take notice of the data on file or results reached by it
in other cases where such is made known and there is adequate
opportunity for rebuttal.
 Secret of confidential information
o Information cannot be withheld from the parties on the
ground that it is of confidential nature and at the same time
used as a basis for the decision.
o In some instances, however, a right to hearing does not
include the right to know information which must be
kept secret in the public interest.
 Quantum of proof
o Substantial evidence even if not overwhelming or
preponderant as in civil cases. It is more than a mere scintilla
and is adequate to support a conclusion even if other equally
reasonable minds might opine otherwise.
o They may not require proof more than substantial
evidence.
o Presumption of regularity does not apply to proceedings
resulting in the deprivation of a taxpayer's property.
o Withdrawal of a complaint does not automatically
result in the dismissal of an administrative case.
Santos v. Noble
After an assessment was made by the CIR upon the appellant for the
payment of amusement taxes, a case was filed against him. However, when
he requested for a reinvestigation, during the hearing, he cannot present
books because the same could not be produced by the bureau for the reason
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that they were lost while in its possession.
The court held that it would be unfair that the previous decision
would simply be affirmed on the basis of the reputable
presumption of regularity of performance of the officials. Although
it is true that the appellant has the burden to prove his claim, he was
deprived of the best means of doing it with the loss of his books. The
appellant should be given the opportunity to prove even with secondary
evidence, his contention that in some respects, the assessment against him
was incorrect.
Estate of Florencio Buan v. Pampanga Bus Co.
The Estate of PNB applied for certificates of public convenience in the PSC to
operate additional trips between Manila and various municipalities and
barrios in Bataan. Some bus companies opposed the applications on the
ground that such approval would only result in a cutthroat and ruinous
competition among them. PSC assigned agents to make an on the spot
survey of the passenger traffic along the said lines. After hearing, it
rendered a joint decision denying the application of the certificates applied
for on the ground that on the said lines, the oppositors are adequate and
sufficient for the actual needs of the public.
The court held that the factual findings supported by substantial
evidence, as in this case, are binding upon the courts. The court is
not required to examine the proof de novo and determine for itself whether
or not the preponderance of evidence really justifies the decision below. An
examination of the reports of the agents reveal that an average of 12-15
passengers were carried by each bus. The sending of the 2 checkers were
justified. The court is not supposed to interfere except in case of clear abuse.
Philippine Movie Pictures Worker's Association v. Premier
Productions
A petition for lay-off was filed because the employer was suffering from
financial losses during the current year. The court deciding the case opted
to make an ocular inspection of the studios and filming premises of the
respondent. The judge even proceeded to interrogate the workers he found
in the place and in the presence of the counsel of both parties. Thereafter,
during the hearing, those interviewed were allowed to be cross-examined.
With these ocular inspection and interrogations the judge reached the
conclusion that the petition for lay-off was justified because there was no
more work for the laborers to do in connection with the different jobs given
to them.
Despite these, the court held that the proper procedure was not
followed since the court of industrial relations merely acted on the
strength of the ocular inspection it conducted on the premises of
the company. The allegations herein cannot be established by a mere
inspection of the place of labor especially when conducted at the request of
an interested party (e.g. the company). The company's financial situation
should not be determinable by such inspection. The financial situation of
the company must be looked into.
Halili v. Floro
The PSC granted the respondent a regular certificate of public convenience
for the operation of an auto-truck service for the transportation of
passengers and freight. Another TPU operator, filed an opposition to the
application on the grounds that prior to the way, he had already been
rendering transportation services along the said route and the grant would
cause ruinous competition. Testimonial evidence was presented before the
commission to prove that the passenger buses were overcrowded and
overflowing and no sufficient in number, to the great danger and
discomfort of the passengers.
The court held that the decision under review is contrary to law or
that it was without jurisdiction of the Commission. The factual
findings in this case were supported by ample evidence binding on the courts.
The court is not at liberty to substitute our own findings for those of the
Commission reasonably supported by the evidence even if the court had
plausible ground to make the modification, which in the present case, the
court does not have.
Uy v. Workmen's Compensation Commission
The WCC reversed a decision of the hearing officer awarding a claim for
death compensation on the ground that there was no substantial proof of
employer-employee relationship. In dismissing the claim, the WCC based its
decision on its findings that there was no substantial proof that the
deceased was an employee of the respondent at that time of the incident in
that the rice mill allegedly operated was not duly registered and that rice
mill, being an nationalized industry, there could be no way that Uy, an alien
may be employed unless duly authorized by the authorities.
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The court held that there being no showing that the police officer
in the present case maliciously or recklessly conducted the
investigation and prepared the police report, the police report
must be given more probative weight than the biased testimonies
of the private respondent's witnesses. While as a rule, matters of
credibility and weight to be assigned to a particular item of evidence are
primarily with the Commission, the same is only true where the findings of
the Commission are supported by substantial, credible and competent
evidence.
DECISIONS OR ORDERS
 Necessity of findings - While the duty to deliberate does not often
impose the obligation to decide right, it does imply a necessity of
having something to support its decision. A decision or wrong with
absolutely nothing to support is a nullity at least when
attacked directly.
o the decision must be based on the evidence presented at the
hearing or at least contained in the record and disclosed to the
parties
o express findings are necessary or desirable
 so that it may be known what the action of the
administrative agency is based as well as to protect
and assure the parties against arbitrariness
 to enable the courts to perform their function of review
 to give the reviewing court the assistance of an expert
judgment on the matters entrusted to the agency for
initial determination
 Form – must conform to the statutes and the rules of the agency
governing the particular proceeding as well as the constitutional
prescriptions
o They must be in the proper form, authenticated as
prescribed, and must be entered against the proper
party (must inform the party on what is required to be done
and to enable the courts to enforce them).
o An administrative agency should render its decision in
such a manner that the parties to the proceeding can
know the various issues involved and the reasons for
the decision rendered.
o Must be grounded on evidence and expressed in a manner that
sufficiently informs that parties of the factual and legal basis of
the decision.
 Finality – There is no general legal principle that mandates that all
decisions of quasi-judicial agencies are immediately executory, except
when the enabling law provides.
o Not immediately executory: SEC, Civil Aeronautics
Administration
o Immediately executory: CSC, even pending appeal.
Indias v. Philippine Iron Mines
The Court of Industrial Relations dismissed the complaint of the petitioner
for unfair labor practices and indirectly denied his prayer that he be
reinstated as the employee of the company. The hearing examiner
recommended the dismissal of the case on the ground that the evidence
presented by the complaint did not support the charges of unfair labor
practice. "After a perusal of the records of the case, the court finds no
sufficient justification for modifying the said recommendation, findings and
conclusion and consequently, the case is hereby dismissed"
The court held that the even if the order did not make its own
discussion of the evidence or its own findings of fact, is valid. Such
is not necessary if the court is satisfied with the report of the examiner or
referee which already contains a full discussion of the evidence and the
findings of the fact based thereon. The situation would differ if the court
disagrees with it. In which case, it should state the reasons for disagreement.
It would be purposeless to repeat what is stated by the examiner if the court
is in full accord with it.
Garcilla v. Court of Industrial Relations
Court of Industrial Relations dismissed for lack of merit complaint for
reinstatement and recovery of unpaid services, backwages, etc. of the
complainant completely ignoring in the decision, the monetary claims.
The court held that the fundamental requirements of due process
was ignored in this case. The Court of Industrial Relations is a special
court, not only exercising judicial or quasi-judicial functions in the
determination of disputes between employers and employees, but its
functions are far more comprehensive. It cannot ignore or disregard the
fundamental and essential requirements of due process in trial
and investigations of an administrative character. It should render
its decision in such a manner that the parties' proceeding can know that
various issues involved, and the reasons for the decision rendered. The
failure to pass upon the monetary claims raised by the petitioner, amounted
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to a disregard of such a cardinal right embraced in due process, namely, that
the issued raised by a party should not be ignored or left undecided.
Serrano v. Public Service Commission
Petitioner in this case filed an application requesting authority to operate a
taxicab automobile service in Manila/ He completed the presentation of his
evidence while the oppositors presented nothing. Upon the claims, PSC
rendered a decision. However, PSC didn't even bother to refer individually
to the petitioner and state why his application is either dismissed or denied.
It states that "The applications not included in the list granted are either
dismissed for lack of interest or failure to prosecute or failure to qualify".
The court held that there was a denial of due process. Although the PSC is
free from the rigidity of certain procedural requirements, it does not mean that it can
entirely ignore or disregard the fundamental and essential requirements of due
process. Each and every application must be considered strictly on its merits and the
relevant facts in support of an order, ruling or decision be carefully inquired into
and clearly set forth. Then, such an arbitrary fiat as the denial or dismissal of an
application without any statement as to why under the evidence, such a result is called
for is plainly bereft of support in law. Such a conclusion must find support in the
competent evidence before the respondent commission and must be so indicated in
the order.
Heirs of Santiago Pastoral v. Secretary of Public Works and
Communications
For alleged encroachments into the Tulalo River, the Secretary of Public
Works issued an order for the removal of the encroachments of the
petitioner being illegally constructed, declaring the same as public
nuisances under the law. Peitioner contend that they have a title over the
alleged encroachments and a fishpond permit issued by the Bureau of
Fisheries authorizing them to construct a fishpond on an adjoining parcel of
their property not covered by title was issued.
The court held that the secretary had authority to determine
questions of fact such as the existence of a river even inside titled
properties. He never declared that the titles of the petitioners over
the lots were null and void. Such fact finding power was incidental to the
duty to clear all navigable streams of unauthorized constructions hence, its
grant does not constitute an unlawful delegation of power. Even so, the river
being of public nature, cannot be subject to appropriation, even by
prescription. The secretary's more specific authority to remove
illegally constructed dikes under RO 2056 takes precedence over
the fishpond permit.
WHERE ADMINISTRATIVE AGENCY IS A COLLEGIATE BODY
 The powers and duties of an administrative agency may not be
exercised by the individual members separately. Their acts are
official only when done by the members convened in session
upon a concurrence of at least a majority and with at least a
quorum present.
o When the action needed is not of the individual, but of the
board (official body).
o Individual action renders the purpose of the constitution as a
board, nugatory. The legislature organized the board
precisely in order that they should deliberate
collectively and in order that their views and ideas
should be exchanged and examined before reaching a
conclusion.
POWERS OF ADMINISTRATIVE AGENCIES TO MODIFY THEIR
DECISIONS
 Conditions – subject to reconsideration and changes so long as no
rights have vested and so long as they have not passed beyond the
control of the administrative authorities, as where the determinations
are not final but interlocutory or where the powers and jurisdiction of
the authorities are continuing in character.
 Grounds
o Fraud of imposition
o Mistake
o Surprise
o Inadvertence
o Newly discovered evidence
o To meet the changed conditions
o (whether by reason of statutory provision or by reason of
principles applied by the courts)
Note: A delay of more than 3 years in acting upon an application for re=hearing
does not deprive the administrative authorities of jurisdiction to grant the
same.
APPLICATION OF RES JUDICATA
 Res judicata – is the final judgment on the merits rendered by a
court of competent jurisdiction. It is conclusive as to the rights of the
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parties, their privies and constitutes as an absolute bar to subsequent
action involving the same demand, claim or cause of action.
o Forbids the reopening of the matter once determined by the
court acting within its jurisdiction.
o It is applicable to determinations in the field of
administrative law as well as to the courts whenever
consistent with the purpose of the tribunal, board or
officer.
 Dependent upon the type of determination and proceedings
o Applicable to adjudicatory, quasi-judicial and judicial
functions
o Not applicable to administrative, executive, legislative,
ministerial
Note: A decision rendered pursuant to an agency's quasi-judicial authority
which has become final and executory has the force and binding
effect of a final judgment within the purview of the doctrine of res
judicata.
o It may not be invoked in labor relations proceedings
considering that such are non-litigious and summary in nature
without regard to the technicalities obtaining in the courts of
law.
 Affected by statutory provisions – It is a matter of interpreting
the enabling statute.
o Some statutes may limit or restrict the extent to which an
administrative determination may operate as res judicata.
 As to administrative decisions judicially reviewed – when an
agency's determination has been reviewed by the courts, the res
judicata, if any attaches to the court's judgment rather than to the
administrative decision. A court's judgment rendered in its judicial
capacity, with respect to such determination operates as res judicata in
the same manner as in other judgments.
o Only valid judgments can be res judicata. Lack of
jurisdiction precludes an administrative determination from
being res judicata.
ADMINISTRATIVE APPEAL AND REVIEW
 There is a hierarchy of authorities so that by express provision
of law or otherwise, a review may be had within the
administrative system itself of the action of lower administrative
authorities by their superiors or a particular administrative body is
authorized to hear and decide appeals from, and review the
determinations of, certain other administrative bodies or officers.
DIFFERENT TYPES AND KINDS OF ADMINISTRATIVE APPEAL AND
REVIEW (those in * are provided by the enabling law)
 Administrative subordinate to administrative superior (where
determinations are made by lower levels of the same agency or
department)
 *Particular officer or body to another officer or body (in the
same agency or in the same administrative system)
 *Trial de novo of matters of fact or discretion and application
of a court from an action of an administrative agency (differ
from ordinary judicial functions and makes the court a part of the
admin system)
 *Order of a division of a commission or board to a rehearing
by the full commission
 *Appeal to an officer on an intermediate level and a
subsequent appeal to the head of the department or agency
 *Appeal to the President
ACTION BY ADMINISTRATIVE APPELLATE TRIBUNAL
 Authority to reverse must be exercised sparingly
o This power must be exercised sparingly and upon a clear
showing of error. Lacking such flaw, the decision of the lower
administrative offices should be sustained, if only because they
have closer access to the problem sought to be resolved.
 Review must not be arbitrary
o The review must not be whimsical or arbitrary or devoid of
substantial basis.
o Must be exercised within the limits of the law.
o The president, directly, or through the executive secretary,
may review, affirm, reverse or modify the orders and decisions
of a department secretary being his alter ego subject to his
administrative control.
 Review generally de novo – Generally, the review is de novo
unless the law provides otherwise.
 Reviewing officer must be other than officer whose decision
is under review
o Otherwise, there could be no different view or there would be
no real review of the case
 Final and executory decisions are not subject to review
o A decision becomes final 15 days after the receipt of a
copy of the decision by the party adversely affected
unless within that period, an administrative appeal or
judicial review, if proper, has been perfected.
o A final resolution or decision of an agency also binds the office
of the president even if such agency is under the
administrative supervision and control of the latter.
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o Doctrine of stare decisis
ENFORCEMENT OF ADMINISTRATIVE DETERMINATIONS
 Administrative determinations are enforceable only in the manner
provided by statute. If a statute has failed to provide a remedy for their
enforcement, they are unenforceable (unless brought to the courts).
o The legislature may aid enforcement by providing a penalty or
sanction for failure to comply therewith and direct and positive
sanctions.
 Administrative enforcements – agencies may not enforce their
own determinations but statutes frequently invest them with power of
enforcement.
o Revocation
o Suspension
o Refusal to renew license
o Refusal to grant clearance
o Withholding or denying benefits
o Imposing conditions
Note: Administrative penalties such as fines or surcharges, seizures and
sale or destruction of property and forfeitures in internal revenue
cases are civil and remedial. It may be enforced by administrative agencies.
 Judicial enforcement – except as may be provided by the statute,
administrative bodies generally, have no power to enforce their
decisions or orders but such can be enforced by the courts.
o Customarily, enforcement is provided for by the law.
o Upon enforcement proceedings, the court may examine
questions of jurisdiction, regularity of proceedings,
constitutional right or statutory authority.
o But the court does not go into the general fact or
controversy beyond determining whether there is
support in the evidence for the findings.
o The order of administrative agencies receives judicial sanction.
Thereafter, it is the judicial order which is enforced.
 Execution pending appeal
o When the law provides that it is immediately final and
executory pending appeal, it is so.
o Otherwise, execution of decisions takes place only when they
become final and executory.
Weigall v. Shuster
The Collector of Customs imposed a fine upon a captain of a British steamer
for a violation of the Chinese Exclusion Law, in permitting the escape of an
immigrant from his ship and asserted a lien upon her, refusing clearance
papers unless the fine be paid.
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The court held that the collector had no power to impose a fine
when not expressly conferred on the administrative bodies. The
fine imposed herein was not one for administrative action because it had to
be laid and enforced in accordance with the laws of Congress in which it had
authorized such action.
Civil Aeronautics Board v. Philippine Air Lines
The CAB imposed a fine upon AL for making a flagstop without first
obtaining permission from the Board.
The court held that the fine imposed was in the nature of a civil or
administrative action and that CAB had the power to impose fines
for violations of the provisions of the enabling law as may be
necessary to prevent further violation of such provisions, or rules
and regulations so issued. The fine in this case was imposed because of
the violation of the CAB rules on flagstops without previous authority. If
every time the CAB would like to impose a civil penalty on an erring airline
for violation of its rules and regulations, it would have resort to courts of
justice in protracted litigations, then it could not serve its purpose of
exercising a competent , efficient and effective supervision and control over
air carriers in their vital role of rendering public service by affording safe and
convenient air transit.
Yao Git b. Geraldez
Y was found by the members of the police suspicious and he was placed
under arrest. To establish his identity, he was required to show his alien
certificate registration, which he failed to do so, as a result of which the
Fiscal filed 2 complaints against him, one for illegal gambling and another
for violation of RA 562 (failure to show alien certificate registration).
The court held that the fiscal was without the authority to
prosecute such claim since the commissioner was given the option
by law to subject erring alien to administrative fine or endorse his
criminal prosecution. By virtue of the amendment of the law,
commissioner of immigration was given the choice or option to elect and
decide upon the prosecution of the alien. The fiscal may not initiate the
prosecution unless such choice is elected by the commissioner of
immigration.
Apelaga v. Dizon
H filed a notice of claim for compensation with the regional office of the
Department of Labor for injury sustained by him while under the employ of
the petitioner. The award having been final and executory declared by
WCC, the regional office of the department of labor issued a writ of
execution against the properties of the petitioner pursuant to the
Workman's Compensation Act.
The court held that because of the amendment of the law, the
authority to enforce awards transferred from the courts of justice
to the Regional Administrator and the Workmen's Compensation
Commission. It was expressly given to the commission or the duly
deputized officials in the Regional Office of the Department of Labor.
Potente v. Saulog Transit
P, a former employee filed a claim with the Wage Administration Service
for unpaid overtime compensation, unjust dismissal and vacation and sick
leave pay allegedly due him. An investigator recommended the rendition of
a decision finding that he was entitled to a sum of money. The acting chief
recommended the approval of this decision and the same was approved. A
few years later, he filed an action praying for the issuance of a writ of
execution with the CFI.
The court held that an ordinary suit in a court of justice is
required for recovery of unpaid wages. The law creating the WAS
indicates clearly that an action must be brought in any competent court for
the recovery of unpaid wages. The action here refers to an ordinary civil
action and such must be brought with the courts, not the WAS. WAS was only
authorized to conduct mediation, and if the mediation fails, the
corresponding complaint shall be brought to court. The mediation was made
as a condition precedent to the institution before any competent court
of an ordinary action for the recovery of the sum of money it
considers due the claimant. Only the court can issue such writ of
execution.
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Chapter VI – Judicial Review of or Relief Against Administrative
Actions
CONCEPT OF JUDICIAL REVIEW
 Judicial Review – may embrace any form of judicial scrutiny of a
matter which arises when such action is brought into question before a
court.
 Collaboration of courts and administrative agencies
o It brings the judicial process into conflict with the
administrative process and presents vital questions as to the
relative roles of administrative agencies and the courts in out
system of government
 Accommodation of administrative process into the judicial
system
o The role of the courts is the accommodations of the process
into the tribunal judicial system and to reconcile democratic
safeguards and standards of fair play with the effective conduct
of government.
o Questions of law or validity are for the court , while questions
of fact or policy are determinable by administrative
agencies. They are, at best, advisory for it is the court that
finally determines what the law means.
 Policy of the courts
o It is their policy not to interfere with the actions of
agencies entrusted with the regulation of activities coming
under their special knowledge and training unless there is a
clear showing of whimsical exercise of judgment or
grave abuse of discretion amounting to lack or excess
of jurisdiction considering that by their nature, they are in
the position to know the limits of their powers under
prevailing circumstances or situations.
o Certiorari, prohibition and mandamus do not lie against
the legislative and executive branches or the members thereof
acting in the exercise of their official functions.
RIGHT TO JUDICIAL REVIEW
 Has reference to both the power and the right of the court to grant the
review sought and the right in the person who invokes the power of the
court.
 Where the right is granted by the statute
o Where it is provided, the right to appeal to the courts is to be
determined by looking at the statute.
o Where it provides for an appeal to the court of appeals, it
means that such bodies are co-equal with the RTC in
terms of the role and statute and logically beyond the control
of the latter.
 Where review is not provided by the statute – there is no
inherent right to judicial review of the action.
o Appeal is a statutory origin and it is not a requirement of
due process.
o In many situations, the constitution is held to require judicial
review even when the law does not provide for it and even if
the law precludes judicial review.
o No special provision is necessary to confer upon the
courts the authority already possessed by them under
the constitution.
 Where review precluded or restricted by statute
o There is a considerable area where legislative discretion may
grant or withhold, or narrow the scope and extent of judicial
review, without infringing constitutional commands.
o Congress is constitutionally free to make an
administrative determination final and immune from
judicial review where it gives the administrative party
a right to elect in the first place between
administrative or judicial relief.
o The government is not bound to provide a remedy in the
courts. It may withhold all remedies or it may provide
administrative remedy and make it exclusive, however
mistaken its exercise is.
o Congress may restrict the review to a single court and
it need not provide for appeal to the SC.
o Provisions that the agency decision or action shall be subject
only to administrative review or shall be final or conclusive
have also been held to preclude judicial review where no
constitutional right was involved.
o There can be no constitutional objection to making
findings of fact conclusive if supported by evidence or
to a provision that rules and regulations shall not be
set aside unless it appeals that the findings were
against the weight of the evidence.
 Where review is a matter of constitutional necessity – in such
situations the court will provide relief or review though no statute
specifically provides therefor, and even though it attempts to preclude
it.
o it springs from the concept of supremacy of the law which
lodges into the courts the inherent authority to determine the
constitutionality of statutes and therefore, the constitutionality
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of the exercise of legislative power delegated by congress to
agencies and from the principle of separation of powers.
o Congress is without authority to nullify rights conferred
by the constitution or divest the courts of powers vested
in them by the constitution.
 Where the administrative decision has become final and
executory
o The doctrine of res judicata applies when the ff. requisites
are present:
 Final judgment or order
 Jurisdiction of the court over the subject matter and
the parties
 Identity of the parties, subject matter and cause of
action.
 Where administrative decisions declare final and
unappealable by statute
o Even decisions which are declared by law to be final are not
exempt from judicial review when so warranted as
where want of jurisdiction, want of substantial basis in fact or
in law, grave abuse of discretion, violation of due process,
denial of substantial justice, etc.
o Factual findings of the agencies are not infallible and will be
set aside when they fail the test of arbitrariness or
upon proof of grave abuse of discretion, fraud or error of law.
RULES GOVERNING APPEALS FROM JUDGMENTS OF QUASI-
JUDICIAL AGENCIES
 Where to appeal – it may be taken to the court of appeals within the
period and manner provided by law whether it involves
questions of fact of law, or mixed questions of fact and law.
 Period of appeal – 15 days from the notice of the award,
judgment or final order or resolution or from the date of last
publication or of denial of petitioner's motion for
reconsideration duly filed.
o Upon proper motion and the payment of the full amount of the
docket fees before the expiration of the reglementary period.
o An additional 15 days may be granted within which to file a
petition for review.
o No further extension shall be granted except for the most
compelling reasons and in no case shall it exceed another
15 days.
 How appeal taken
o By filing a verified petition for review in 7 legible copies
with the CA with proof of service of a copy thereof on the
adverse party on the court or agency a quo.
o Upon filing, the petitioner shall pay the docketing and
other lawful fees and deposit the sum of P500 for
costs. Exemption from payment may be granted by the court
upon a verified motion setting forth the grounds therefor.
 Contents of the petition
o Full names of the parties to the case (without impleading the
court or agencies)
o Accompanied by a clear legible duplicate original or certified
copy of the order or resolution appealed from, with the
certified true copies of such material portions of the record as
are referred to therein and other supporting papers.
o State all material dates showing that it was filed within the
reglementary period
o Contain a sworn certification against forum-shopping
 Effect of failure to comply with requirements – ground for
dismissal.
 Action on petition – the CA may require the respondent to file a
comment on the petition, not a motion to dismiss, within 10 days from
notice.
o The court may dismiss if it finds the same to be patently
without merit.
 Contents of comment – comment shall be filed within 10 days from
notice in 7 legible copies and accompanied by clear legible certified
true copies of such material portions referred to therein together with
other supporting papers.
o Point out insufficiencies or inaccuracies and state the reasons
why the petition should be denied or dismissed.
 Due course – if the CA finds prima facie that the court or
agency concerned has committed errors of fact or law that
would warrant reversal, it may give due course to the petition
otherwise, it shall dismiss the same.
 Transmittal of record – may require that original or certified true
copies of the entire record of the proceedings be transmitted.
o May also require subsequent correction or addition to the
record.
 Effect of appeal – it shall not stay the judgment sought to be
reviewed unless the CA shall direct otherwise upon such terms as it
may deem just.
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 Submission for decision – if given due course, the CA may set the
case for oral argument or require the parties to submit memoranda
within a period of 15 days from notice
o the case is deemed submitted for decision upon filing of the
last pleading or memorandum required by the rules or CA.
Note: the above rules do not apply to judgments and final orders or
resolutions issued under the Labor Code.
 The CA may only pass upon errors assigned.
ADMINISTRATIVE FINDINGS AND CONSTRUCIONS GENERALLY
CONCLUSIVE
 The reviewing court may be re-examine or weigh once more the factual
basis and sufficiency of the evidence submitted before the
administrative bodies and substitute its own judgment for that of said
body or to receive additional evidence that was not submitted to the
administrative agency concerned.
 Substantial evidence is all that is needed to support an
administrative hearing. Courts will not disturb on appeal so long as
such findings are supported by substantial evidence.
o Occasionally, they may delve in such matters for compelling
reasons as where such are not supported by substantial
evidence, or vitiated by fraud, mistake, illegality of
imposition, etc.
o As a corollary, the SC is clothed with ample authority to
review matters even if they are not assigned as errors
in the appeal, if it finds that their consideration is
necessary to arrive at a just decision of the case.
 If not supported by substantial evidence, the same are not binding on
the courts.
San Miguel Corporation v. Secretary of Labor
Y was dismissed by the SMC for alleged illegal trafficking in company medicines.
NLRC ordered the reinstatement of Y with backwages which decision was affirmed
by the Secretary of Labor. On certiorari, Y contends that the SC as no jurisdiction to
review under the principle of separation of powers and that the review was not
provided for in the enabling law.
The court ruled that the power exists though not expressly given by the
statute. There is an underlying power in the courts to scrutinize the act of such
agencies on questions of law and jurisdiction even though there is no right granted
under the law. It is part of the system of checks and balances which restricts the
separation of powers and forestalls arbitrary and unjust adjudications.
Board of Medical Education v. Alfonso
Upon recommendation of the Board after 2 teams of inspector reported that
the respondent college fell very much short of the minimum standards set
for medical schools, the DECS ordered the closure of the school. However,
the lower court issued an injunction to restrain the implementation of the
order of the secretary.
No court has competence to substitute its own opinion for that of
the DECS secretary. In the first place, there is no law authorizing the
appeal. It is not the function of the court to review the decisions of the
secretary whether or not the institution fails to meet the norms and
standards required for the permission to operate. The only authority is to
determined whether or not the secretary acted within the scope of
his powers granted by law and the constitution. It was grave abuse for
the judge to issue the questioned injunction. Courts should not disturb
findings of fact by agencies by reason of their special knowledge and
expertise over matters failing under their jurisdiction. The latter are in a
better position to pass judgment on such matters.
Gordon v. Veridiano II
A report on the "test buy" operation of the FDA prompted the Mayor of
Olongapo to revoke summarily the mayor's permit to operate of Y for
rampant violations of the Dangerous Drugs Act. Acting on the same
operation, FDA directed the closure of the drugstore for 3 days and the
payment of a fine for violation of another law, the Food Drugs and
Cosmetics Act. Later, FDA lifted the closure order. The lower court ordered
the nullification of the revocation of the mayor's permit and issued an
injunction prohibiting the mayor from doing acts directed towards the
closure of the drugstore.
The court held that the FDA license is a condition precedent to the
mayor's permit to operate a drugstore. However, while it may appear
that the applicant has complied with the pertinent laws, this fact alone does
not signify compliance with the particular conditions laid down by the local
authorities. Should the mayor find that the local requirements have not been
observed, the mayor must then, in the exercise of his own authority refuse to
grant the permit sought. The power to approve a license includes the power
to revoke it. If the FDA grants a license upon finding that the applicant has
complied with the Food, Drugs and Cosmetics Act, it is only for this violation
that the FDA may revoke the license. By the same token, having granted
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permit upon his ascertainment that the conditions thereof as applied have
been complied with, it is only for said violations of such conditions that the
mayor can revoke the permit.
In this case, the petitioner cannot claim the superior aptitudes of the FDA in
the enforcement of the pharmacy and drug addiction laws.
GROUNDS FOR DENYING RELIEF OR REVIEW
Macailing v. Andrada
Over a land dispute, the District Land officer rendered a decision in A's
favor, but his decision was later reversed by the Director of Lands. In turn,
the Secretary reversed the decision of the director of lands. The secretary
denied a motion for reconsideration asserting that the decision has already
been final and executory after the lapse of 30 days from receipt of the
decision. However, the Asst. Executive Secretary reversed the decision of the
secretary of Agriculture.
The court held that in administrative law, an administrative
regulation adopted pursuant to law is law. Then, 30 days after the
receipt of the decision, such decision becomes final and executory except in
cases of mistake, inadvertence, etc. It is illogical, unreasonable and unfair for
the executive branch of the government to set aside its own administrative
rules, unless previously charged beforehand in a specific case for the
convenience of one of the parties. The decision of the assistant
secretary reversing the decision is null and void and of no effect.
FINALITY OF ADMINISTRTIVE ACTION FOR PURPOSES OF
REVIEW
 Policy of the courts – courts are reluctant to interfere with action of
an administrative agency prior to its completion or finality the reason
being that absent a final order or decision, power has not been fully
and finally exercised and there is usually no irreparable harm.
 Order or decision
o A particular order may be held not subject to review because
it does not constitute an order or it does not meet the
standards specifically laid down in the statute
providing for the review. It could be a mere
pronouncement or recommendation.
o The mere informality of a decision does not prevent
its review if otherwise final.
o Only after facts have been finally determined and a decision
has been rendered may the appropriate judicial review be
availed of by the party who feel aggrieved thereby.
 Threatened or pending action – judicial review is often denied for
lack of finality where the action of the agency is only anticipated, even
though threatened, or where the action is still pending.
 Jurisdiction lies in the administrative agency
 An officer is not subject to the control of the courts in the exercise of
the judgment and discretion which the law reposes on him as part of
his official functions.
 Determinations of subordinates acting on orders of their superiors
which are under the control and subject to review by their superiors.
 In advance of the agency's action
 Threatened action
 Prior to final determination, the party seeking relief has not suffered a
present injury
 Action requiring approval by superior – not final for purposes of
review. However, the fact that in some circumstances, the grant of
relief might have to be submitted for approval does not detract from
the finality of an order denying relief.
 Pending of rehearing or administrative appeal
 Rules and regulations – regulations of an administrative agency are
addressed to and set a standard of conduct for all to whom their terms
apply.
o Such rules, even though arbitrary are not subject to challenge
in a judicial proceeding prior to the time when the action
pursuant to such rules constitutes a present invasion of rights.
No such invasion exists where such rules and
regulations are advisory only and not enforceable.
 Purely administrative matters – may not be interfered with by
courts.
o Generally true in respect to acts involving the exercise of
discretion and findings of fact except where the agency or
official has gone beyond his authority or acted arbitrarily and
without regard to his duty or with grave abuse of discretion.
 Preliminary, procedural and interlocutory determinations
o Universal rule: appeal to the courts will not lie from an
interlocutory order unless such order affects the merits.
o Interlocutory – when the substantial rights of the parties in
the action remain undetermined and when the cause is
retained for further action.
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 Denial of application for a stay
 Approval or disapproval of compromise agreement
 Denial of application for rehearing
 Orders directing an investigation
 Appointing a conservator or conciliator
 Reversing and remanding a case to take further
testimony.
o Certiorari is available against agencies whether the
order is interlocutory or not where due process was
not followed.
Nation Multi-Service Labor Union v. Agcaoili
The compulsory arbitrator of the NLRC found respondent A Hotel guilty of
unfair labor practice. Such matter was passed upon by the NLRC and
finally, by the Secretary of Labor. Notwithstanding the finality of the
decision, respondent instituted an action with the CFI with prayer for
preliminary injunction and nullity of the said decision. Without notice and
hearing, the judge issued a preliminary restraining order.
The court held that in this case, the appropriate step to take was to
appeal to the President, as provided for in the enabling law. There
was an appeal or remedy both adequate and appropriate. It was in line with
the executive determination, after the proclamation of martial law, to leave
the solution of labor disputes as much as possible to agencies and
correspondingly, limit judicial participation. Prohibition is available
only when there is no remedy by appeal.
PAL v. Civil Aeronautics Board
The Civil Aeronautics Board approved the application of JL for a
provisional permit to operate 4 aircraft effective from the receipt of the
resolution up to a time a decision is rendered by CAB on his application.
PAL filed a certiorari asserting that CAB failed to hear its evidence and that
there is no factual basis for the grant of authority. It appears, however, that
prior to the hearing, notice was sent to PAL and a hearing was held on the
profitability of JL's proposed services with PAL represented at such
hearing. CAB asserts that the orders are interlocutory and are non-
appealable.
The court held that certiorari is a remedy available against
administrative agencies and that despite this, the requirement of
due process was observed by CAB. It is fundamental that a certiorari is
available to enable a person aggrieved to complain against any tribunal
exercising judicial functions in character action without or in excess of
jurisdiction with grave abuse of discretion. The burden, however, of showing
essential unfairness must be shouldered by him who claims such injustice.
The action taken by CAB did not offend against procedural due process.
EXCEPTIONS TO THE DOCTIRNE OF FINALITY
 The fact that a particular determination is not a final order for
purposes of statutory review has been held not to preclude the
availability of judicial review:
o to an interlocutory order affecting the merits of the
controversy
o grant relief to preserve status quo
o when essential to protect rights asserted from injury
threatened
o when the officer assumes to act in violation of the
constitution or other laws
o when not reviewable in any other way but the
complainant will suffer great and obvious damage if
carried out
o order made in excess of power
 Review allowed by statutory provisions
o Settled is the rule that the declaratory judgments law is
applicable and appropriate in instances where there is no final
decision or rule of an agency which could be reviewed by an
existing remedy such as an appeal.
o Adjudication of legal rights in controversy between the citizens
and public officials, including members of the admin agencies,
in advance of threatened and erroneous action to the injury of
the plaintiff.
TIMING OF APPLICATION TO COURTS
 Doctrine of primary jurisdiction – determines whether initial
action should be taken by the court or by the administrative agency
 Doctrine of exhaustion of administrative remedies – controls
the timing of judicial review from adjudicative action of an agency.
Applied to adjudication, not rule-making.
 Doctrine of ripeness for review – same as exhaustion, in essence,
except that it applies to rule making and to administrative action which
is embodied neither in rules or regulations nor in adjudication or final
orders.
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DOCTRINE OF PRIMARY JURISDICTION
 Concept – refers to cases involving specialized disputes which are
referred to an agency of special competence to resolve the same.
o Applies only when it is exercising quasi-judicial function.
o Courts cannot and will not determine a controversy
involving a question within the jurisdiction of an
agency, especially when the question demands the
exercise of sound administrative discretion requiring
special knowledge, experience and services to
determine technical intricate matters of fact and
where a uniformity of ruling is essential to comply
with the purposes of the regulatory statute
administered.
o When the controversy is initially lodged in the agency, the
court suspends its action on the case before it pending the
outcome of the administrative proceedings even if no
prejudicial question is involved.
o Applies where a claim is originally cognizable in the courts and
comes into play whenever enforcement of the claim requires
the resolution of issued which under a regulatory scheme, have
been placed within the special competence of the
administrative body.
 Reasons for the doctrine
o To take full advantage of the administrative expertness
o Attain uniformity of application of regulatory laws which can
be secured only if determination of the issue is left to the
administrative body.
 Subsequent resort to judicial action is not precluded
o The doctrine only requires that the issues be addressed to the
agencies first rather than to the tribunals for relief if issues
involved are such that they can be presented in the first
instance to the former. But subsequent judicial action is still
allowed.
 Exclusive jurisdiction may be explicit or implicit
o The law may give the agency exclusive jurisdiction to make
initial determination and it may give a particular court
jurisdiction to review the action in a designated way at a
designated time.
o But where it is only implicit, it must clearly appear that
intent of congress is to require administrative
determination, either to the exclusion of judicial
action or in advance of it, and in such case, a strong
showing is required, both of the inadequacy of the prescribed
procedure and of impending harm, to permit short-circuiting
of the process.
APPLICATION OF THE DOCTRINE:
 Where the elements of administrative discretion important
considerations
o Prior resort would be required where the elements of the
administrative discretion are often important considerations,
such as in cases involving issuance and revocation of licenses
and the enforcement of licensing rules.
 Where reasons for doctrine inapplicable
o When application involves exercise of judicial
discretion – the doctrine of primary jurisdiction is not
inflexible. Whether or not to be imposed is to depend on the
determination whether congress intended the issued to be left
to the agency for initial determination. Where the intent is
absent, the courts are free to determine on the basis of the
policy consideration the need of prior resort to administrative
determination.
o Issues involving questions of law – agency
determinations should be limited to questions of fact and
questions requiring the skills of specialists. Questions of law
may be determined by in the first instance by the
courts.
 Where concurrent jurisdiction is conferred – the doctrine is
clearly applicable whenever courts and administrative agencies have
concurrent jurisdiction.
DOCTRINE OF EXHAUSTION OF ADMINISTRATIVE REMEDIES
 Doctrine of exhaustion of administrative remedies requires
that where a remedy within an administrative agency is provided or
available against the action of an administrative board, body or officer,
and can still be resorted to by giving the said agency every opportunity
to decide correctly given matter that comes within its jurisdiction,
relief must first be sought by availing this remedy before
bringing an action in or elevating it to the courts of justice
for review.
o Allow the agency to first carry out its functions and discharge
its responsibilities within the specialized area of its
competence before resort can be made to the courts.
o Premature invocation of a court's intervention is fatal
to one's cause of action.
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LEGAL AND PRACTICAL REASONS FOR DOCTRINE
 Only after the administrative remedies are exhausted at the highest
level within the administrative system may judicial recourse or
intervention be allowed.
 It determines what stage a person may secure review of
administrative action and is concerned with promoting proper
relationships between courts and agencies charged with
particular regulatory duties.
 It involves a policy of:
o Orderly procedure which favors a preliminary administrative
sifting process particularly those matters within the
competence of the administrative authorities who are
presumed to be experts in their respective fields of
specialization, and therefore their decisions as a rule should
not be disturbed by the courts of justice.
o Avoidance of interference of functions. Withhold judicial
action until the administrative process has run its
course.
o Prevention of attempts to resort to the courts in the first
instance.
 Availment of administrative remedies entails lesser expenses and
provides for a speedier disposition of controversies.
 Separation of powers (enjoins upon the judiciary a becoming policy of
non-interference with matters within the competence of the
departments).
 Based also on the convenience of the party litigants
 Rests upon the presumption that official acts are correct and
lawful and that if an error has been committed, the superiors, if given
the opportunity, will decide the same correctly or correct any previous
error, if any, committed in the administrative forum, thus rendering
judicial intervention unnecessary.
 Only one aspect of the broader doctrine which requires final
administrative action as a pre-condition or pre-requisite of
judicial review.
Note: The person who has an administrative remedy, must pursue its
appropriate conclusion before seeking judicial intervention in order not to only
give the agency an appropriate opportunity to act and correct alleged errors,
but also to prevent unnecessary and premature resort to the courts.
APPLICATION OF THE DOCTRINE
 As a prerequisite to judicial review – in some instances, the
statute makes the exhaustion of remedies a pre-condition of
the right to seek the intervention of courts.
o The parties are to take full advantage of the administrative
proceedings afforded to them to prevent private litigants from
ousting administrative bodies from the exercise of
adjudications properly committed to them.
o Only judicial review of decisions of administrative
bodies made in the exercise of their quasi-judicial
function is subject to the exhaustion doctrine.
 As affecting one's cause of action – the authorities are not in
accord as to whether the application of the doctrine is in the discretion
of the court or goes to its jurisdiction and does not permit the exercise
of discretion.
o The court may relax the rule and such may be waived by the
parties and the proceedings will be entertained by the courts
o But in other cases, where the doctrine will apply, the court was
held to be without jurisdiction to act and may not relax the rule
in its discretion. This is particularly true when the enabling law
gives exclusive jurisdiction to the agency and in view of the
rule that right to appeal is statutory, the appeal is
dependent on the compliance with the terms of the
stature authorizing the review.
o However, in our jurisdiction, failure of a party to exhaust
the procedure in administrative proceedings affects his cause
of action, not the jurisdiction of the court over the
subject matter. Hence, it is a ground for dismissal.
o Exhaustion must be raised at the earliest time possible
even before the filing of the answer to the complaint. Failure to
invoke it operates as a waiver of the objection and the court
may proceed with the case as if the doctrine has been observed.
Note: the only effect of non-compliance with the doctrine is to render
the action premature.
INSTANCES WHERE THE DOCTRINE HAS BEEN APPLIED
 Certiorari cannot be sustained where the administrative remedies were
not exhausted. A motion for reconsideration must be filed first before
the special civic action may be availed of.
 Remedy of the court cannot be sought when the party failed to file a
motion for reconsideration or an appeal of the case with the
administrative agency or where the request for reconsideration with
the agency has not yet been resolved at the time of the filing with the
courts.
 Where the person could have appealed it to the president before the
regular courts, there is no exhaustion of administrative remedies.
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 It is the duty of the party aggrieved to ascertain what could still be
done by the higher authorities before filing a case in court.
 It is the legal obligation of the petitioner to appeal to a board who has
the power to modify or annul an order or circular before resorting to
the court.
 A suit filed in court to restrain a commissioner from hearing a
deportation case is premature where no hearing has been conducted
and no conclusion was reached in an administrative proceeding.
 Where the petitioners had the opportunity or right to oppose, which in
fact they did, when they filed a motion for reconsideration and later,
when the motion was denied, they appealed to the secretary, there is
no denial of due process.
o Whether a motion for reconsideration is essential before filing
a case in court would largely depend on the pertinent law, the
rules of procedure and the usual practice in the agency.
EXCEPTIONS TO THE DOCTRINE
 where by the terms of the statute, the administrative remedy is
permissive, not exclusive, cumulative, or concurrent or where there is
grave doubt as to the availability of the administrative remedy,
warranting the conclusion that the legislature intended to allow
judicial remedy even though the administrative remedy has not been
exhausted.
 where the issued involved are not questions of fact but one of pure law
and nothing of an administrative nature or where the act is patently
illegal, arbitrary or oppressive or clearly devoid of any color of
authority or has been performed in excess of jurisdiction or with grave
abuse of discretion.
o Where the questions do not depend upon undisputed facts,
judicial relief may be sought.
o Appeal to the administrative officers would be a futility since
they cannot decide such issues with finality as they will
ultimately have to be decided by the courts of justice.
o Where the issue is purely legal which inevitably calls for the
application and interpretation of the law (e.g. Civil Code) the
doctrine has no bearing in the case.
 Where the issue raised is the constitutionality of the statute.
o But not on the sole fact that the party urges a violation of the
rights secured by the constitution in the absence of showing of
an inadequacy of prescribed administrative relief threatened or
impending irreparable injury.
o when what is assailed is the constitutionality of the
statute, the regular courts have jurisdiction. But an act
performed by it pursuant to its quasi-judicial function
is subject to exhaustion.
 Where the questions involved are essentially judicial.
 Where there is estoppel on the part of the party invoking the doctrine
or where the administrative body is in estoppel to invoke the doctrine.
 If it should appear that an irreparable damage or injury will be suffered
by a party unless a resort to the court is immediately made.
o A preliminary injunction may be granted where it appears that
there is a substantial controversy between the parties and one
of them is committing an act or threatening the immediate
commission of an act that will cause irreparable injury or
destroy the status quo of the controversy before a full hearing
can be had on the merits.
 Where there is no other plain, speedy or adequate remedy in the
ordinary course of law
o The urgency of the case can compel the parties to go to court to
stop the violations.
 Where the respondent officer acted in utter disregard of due process as
where one had been dismissed without any administrative charges
having filed not any investigation conducted.
 Where insistence on its observance would result in the nullification of
the claim being asserted as where the period within which to bring the
case to court is limited by law, said period not being interrupted by the
filing of any administrative remedy.
 When there is a long continued and unreasonable delay or official
inaction that will unretrievably prejudice the complainant.
o As in a case where the officials were already given the
opportunity to act on the petition for review. The sending of
the petition for review was held to be substantial compliance
with the requirement of exhaustion.
 When there are special reasons or circumstances demanding
immediate judicial intervention
 Where the amount involved is relatively small so that to require
exhaustion would be oppressive and unreasonable
 When no administrative review is provided as a condition precedent to
the taking of an action in court
 In land cases, where the land subject of litigation is not part of public
domain
o The doctrine is not applicable even to private lands acquired
by the government by purchase for resale to the individuals
 However, in public land cases, the issues should be confined to
controversies arising out of the disposition or alienation of public
lands or to the determination of the respective rights of rival claims to
public lands, and not to possessory actions involving public
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lands which are limited to a determination of who has the actual o Performed in excess of jurisdiction
physical possession. o No due process
 Where the respondent is a department secretary, whose act, as an alter o No other recourse
ego of the president bears the implied or assumed approval of the Note: distrust with the administrative agency alone, unsupported by concrete
latter, unless actually disapproved by him particularly where they are evidence, is not sufficient reason to dispense with the doctrine.
declared as final and unappealable.
o Doctrine of qualified political agency (action of the EXHAUSTION DOCTRINE AND PRIMARY JURISDICTION
department secretary ad the alter ego of the president is DOCTRINE DISTINGUISHED
deemed to be that of the latter and therefore, the failure to
appeal to the office of the president cannot be considered a Exhaustion Doctrine Primary Jurisdiction
violation of the exhaustion rule. Invoked as a defense to judicial Arise where both the court and
o appeal to the president is usually the last step to take. review of an administrative action administrative agency have
o But where the law expressly provides for exhaustion, the not yet deemed complete. Applies jurisdiction to pass on a question
appeal to the president is still proper, even under the doctrine where the claim of matter is which in a particular case is
of qualified political agency. cognizable in the first instance by an presented to the court as an original
 Where the administrative officer has not rendered any decision or administrative agency alone. matter rather than a matter of
made any finding of any sort, the rule of prior exhaustion does not review.
apply. Not applicable where the issue is
o There is an assumption that the body, if given a chance to purely legal within the jurisdiction of Relates to particular issues in a
correct its mistake, may amend his decision on a given matter. the courts. It is also not applicable proceeding rather than the entire
It follows therefore that there has some sort of a decision, that where a party has a right of election proceeding and typically operates
is ripe for review and properly the subject of an appeal to a between an administrative and through a suspension of the
higher administrative body or officer for the principle to judicial remedy. judicial process pending
operate. referral of such issues to the
o Thus, where the director has not rendered any administrative agency.
decision and is in fact just about to conduct an
investigation of a case which happens to be the very act It is applied in the face of statutes
sought to be prevented, the remedies cannot e resorted to purporting to permit a choice of
although available. remedies.
 Where the plaintiff in the civil action for damages has no Both do not apply where the issue, while properly determinable by an
administrative remedy available to him, he is not required to exhaust administrative agency, involves purely a question of law there being no
the remedies before filing a complaint although the same incident question of fact and no question requiring expert judgment.
complained of in the administrative case filed by the defendant is the
subject matter of the action for damages filed by the plaintiff.
o The cause of action in the administrative case is different from Quintos Jr. v. National Stud Farm
the civil case for damages. Plaintiff here is the legitimate owner of a race-horse which he registered
o In the administrative case, it is the government that is the with the NSF thereby entitling it to participate in horse races and
aggrieved party and no award for damages may be granted in sweepstakes. Right before the race, his horse was excluded from taking part
favor if private persons. because apparently, its certificate of registration has been withdrawn or
o The civil action for damages can proceed notwithstanding the cancelled without notice and hearing. He filed a case in court. The TC
pendency of the administrative action. dismissed the case and he was asked to appeal to file a reconsideration to
 Where a strong public interest is involved the Board of Trustees of NSF.
 Other cases
o Where the act is patently illegal The court held that the suit was prematurely instituted. He gave no

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reason for his failure to exhaust the administrative remedies. The doctrine of
primary jurisdiction or prior resort foes no further than to determine
whether it is the court or the agency that should make the initial decision.
The fact that a government authority is empowered to deal with a given type
gives rise to a presumption that it has exclusive jurisdiction over the matter.
RELATION BETWEEN EXHAUSTION DOCTRINE AND DUE
PROCESS CONCEPT
 Exhaustion and due process are separate and distinct concepts , but
they embody linked and related principles.

In this case, the question could have been resolved in a manner satisfactorily Exhaustion Doctrine Due Process
to the parties if the Games and Amusements Board which certainly had the Applies when the ruling court or A violation occurs when a court or
necessary qualifications to view its manifold aspects. In effect, there was an tribunal is not given the opportunity tribunal rules against a party without
unwarranted disregard of the concept of primary jurisdiction. to re-examine its findings and giving him or her the opportunity to
conclusions because of an available be heard.
opportunity that a party seeking
Industrial Enterprises v. Court of Appeals recourse against the court or the
IEI was granted a coal operating contract by the government through the tribunal's ruling omitted to take.
BED. IEI and MMC executed a memorandum of agreement whereby IEI Based on the perspective of the Considered from the point of view of
assigned to MMIC all the former's rights in the 2 coal blocks covered by its ruling of the court the litigating party against whom a
coal operating contract. Subsequently, for alleged violation of the coal ruling was made.
operating contract, IEI filed an action in court for rescission of the
memorandum of agreement with damages. DOCTRINE OF RIPENESS FOR JUDICIAL REVIEW
 Also determines the point at which the courts may review
The court held that BED has jurisdiction over the case. While the administrative action except that it applies to administrative
action herein appears to be an ordinary civil contract cognizable by a civil action other than adjudication.
court, the fact is that the MOA sought to be rescinded is derived form a coal- o judiciary machinery should be conserved for problems which
operating contract and is inextricably tied up with the right to develop coal- are real and present or imminent and should not be
bearing lands. Its action is not merely the rescission of a contract but the squandered on problems which are future, imaginary or
reversion or return to it of the operation of the coal blocks. These remote.
matters fall within the domain of BED which is tasked to establish a o Statutes are invalid only if unconstitutional but that
comprehensive and integrated national program for the exploitation and regulations are invalid only if they are either unconstitutional
development of the country's coal resources. or in excess of statutory authority.
o Statutes have the force of law but that regulations may be
If the case is such that its determination requires the expertise, specialized either legislative, interpretative and interpretative regulations
skills and knowledge of the proper administrative bodies because technical may sometimes lack the force of law.
matters or intricate questions of facts are involved, then the relief must first
be obtained in an administrative proceeding before a remedy will APPLICATION OF THE DOCTRINE
be supplied by the courts even though the matter is within the  An issue is normally ripe for judicial determination when
proper jurisdiction of a court. Since the question of what coal areas interests of the plaintiff are in fact subjected to or
should be exploited and developed and which entity should be granted coal imminently threatened with substantial injury.
operating contracts over said areas involves a technical determination by the  A statute may be ripe for constitutional challenge in advance of official
BED, the doctrine finds application in this case. action, if the statute is self executing (mere existence without
enforcement).
However, the case is not to be dismissed it need only be suspended until  A statute enforceable through criminal prosecution should be subject
after the matters within the competence of the BED are threshed to challenge in a suit for injunction or declaratory judgment brought by
out and determined. a party who is immediately confronted with the problem of complying
or violating.

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 A debilitating legal uncertainty by reason of which private parties may administrative action is available for the initial decision of some
be injured seriously enough should justify resort to judicial machinery. questions.
 When the plaintiff is substantially harmed by the vagueness of a Function is merely to determine
statute, the vagueness should not be deemed a ground for refusing to which tribunal will make the initial
determine whether the statute is void for vagueness. determination and not which shall
 Instruction issued by an agency where no administrative remedy is make the final determination.
available and the party affected is immediately confronted with the SCOPE AND EXTENT OF JUDICIAL REVIEW
choice between compliance and non-compliance and violation of the  Types of agency determination for purposes of judicial
instruction is a criminal offense. review
 That governmental action is contingent upon the plaintiff's action or o Determinations of law – fully reviewable
upon other evens do not necessarily mean that the action is unripe for o Determinations of fact – review is limited to finding the
challenge, the test is still whether substantial injury to the existence of substantial evidence
plaintiff is present or imminent. o Discretionary determinations – to ascertain whether the action
 When substantial adverse effect upon the plaintiff is neither present was arbitrary or capricious
nor imminent, the issue of legality should normally be deemed unripe  General frame of power
for judicial determination except that the courts should recognize a o Keep the administrator within the valid statute which guides
judicial discretion to decide the issue of legality in special him and keeps him from unreasonable excesses in the exercise
circumstances. of his function and to ascertain whether there is warrant in law
and the facts for what the administrative agency has done.
RIPENESS DOCTRINE AND EXHAUSTION DOCTRINE  Review is limited
DISTINGUISHED o Limited in regard to findings of fact and to expert judgments of
an administrative agency acting within authority.
Ripeness Doctrine Exhaustion Doctrine o It is not the power to determine whether the action is right,
Both are concerned with the timing of judicial review of administrative correct, wise, proper, advisable, expedient, or best fitted to the
action. situation involved.
Focuses upon the nature of the Focuses on the relatively narrow o No relief is available for mere error or honest error by an
judicial process (upon the types of question of whether a party should agency particularly in a collateral proceeding.
functions the courts should perform) be required to pursue an o Agencies are reviewable and reversible for mistake of
administrative remedy before going law or an erroneous view of law.
to court. o The courts will not inquire to motives which impel the action
Applied to rule-making and Applied to adjudicative action of an of agencies for that does not affect the legality or validity of the
administrative action not involving administrative agency action except where it involves fraud, malice, or intentional
rule-making and adjudication. wrongdoing.
o Their determination as to the application of law is accorded
RIPENESS DOCTRIE AND PRIMARY JURISDICTION DOCTRINE great weight. It is presumed that the administrative
DISTINGUISHED determination is correct, legal and just. The burden of proof is
on the party assailing the regularity of official proceedings.
Ripeness Doctrine Primary Jurisdiction
Determine at what stage a party may Determines whether or not the JUDICIAL REVIEW DOES NOT IMPORT TRIAL DE NOVO
secure judicial review of agency should make the initial  It is only an ascertainment of whether the administrative findings are
administrative action decision. not in violation of the constitution or the laws, and are free from fraud
Questions of ripeness and exhaustion Arise only when administrative and or imposition and whether they find reasonable support in evidence.
may arise whenever judicial review of judicial jurisdictions are concurrent

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o Administrative decision in matters within the executive or
administrative jurisdiction can only be set aside on proof of
gross abuse of discretion, fraud or error of law.
o The trial cannot be a trial de novo since a review of the
findings is limited to the evidence already presented before the
body.
o The rule bars the presentation of evidence aliunde and
limits the court's function to determining whether
there is evidence in the administrative records
substantial enough to support the findings therein.
METHODS OR MODES OF RELIEF OR REVIEW
 direct or collateral (indirect) e.g. damage suits, restitution
 statutory or non-statutory e.g. remedy not made available by a
statute relating to action of administrative agency or agencies.
Note: Choice of remedy is a matter of importance since once remedy may be
more expeditious or less burdensome than another and the scope of review
may vary with the remedy.
writs such as certiorari, mandamus, habeas corpus, quo
warranto, and prohibition.
RELATION BETWEEN 2 METHODS
 When a statute provides a direct method of judicial review of
agency action and is applicable, such method of review may be
regarded as exclusive and to preclude the use of any other non-
statutory method.
o Some cases hold that it is not exclusive, but rather, must be
exhausted as a prerequisite to judicial relief by some other
methods.
o In some cases, despite the existence of a statutory review,
review by other means is allowed especially as to acts which
are entirely unwarranted or where exceptional circumstances
exist and inadequacy of the statutory remedy may provide a
basis for relief by some other method.

STATUTORY METHODS OF REVIEW

 where the remedy itself governed by statute
o where the remedy itself is governed by statutory provisions
although the express terms of such statute relating to
administrative agencies make no provision that this remedy
shall be available for the review of agency action.
 Where proceedings in court required by statute for
enforcement of administrative decisions
o Where a statute governing the action of an agency does not
permit the enforcing of an administrative decision except by
proceedings in a court to be instituted by the prevailing party
or the administrative agency itself and these proceedings are
designed for judicial review of the agency action.
 Where direct judicial review afforded by legislation
providing generally for such review
o Direct review proceedings – afforded by legislation
providing generally for review of action of administrative
agency and prescribing the manner and extent of such review
whether by appeal, injunction, declaratory judgment, or a
petition to a court of original jurisdiction.

NON-STATUTORY METHODS OF REVIEW

 In the absence of statutory provisions for review, relief may be had in
appropriate cases by means of the common law prerogative

Erandio, Athena Louise

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