PHILIPPINE ADMINISTRATIVE LAW By Carlo L.

Cruz Chapter 1 General Considerations Nature Administrative Law that branch of modern law under which the executive departmen t of the government, acting in a quasi-legislative or quasi-judicial capacity, i nterferes with the conduct of the individual for the purpose of promoting the we ll-being of the community. Administrative law is a recent development , being a consequence of the ever in creasing complexities of society and the proliferation of problems of government that cannot readily or effectively be addressed by the public agencies or solve d by other disciplines of public law. It was felt that thelegislative and judicial departments no longer had either th e time or the needed expertise to attend to these new problems. Thus, the obvious solution was delegation of power. Two major powers of the administrative agency: 1. Quasi-legislative authority or rule making power 2. Quasi-judicial power or adjudicatory function Sources of Administrative Law Addministrative law is derived from four sources or is of four (4) kinds: 1. Constitution or statutory enactments e.g. Social Security Act which establi shed the Social Security Commission. 2. Decisions of courts interpreting the charters of administrative bodies 3. Rules and regulations issued by the administrative bodies e.g. Omnibus Rules Implementing the Labor Code. 4. Determinations and orders of the administrative bodies in the settlement of controversies Administration Administration is understood in two senses: 1. institution administration as the aggregate of individuals in whose hands th e reins of government are for the time being. 2. function administration as the actual running of the government by the execu tive authorities through the enforcement of laws and implementation of policies. Government (as distinguished from administration) is the agency or instrumentali ty through which the will of the State is formulated, expressed and realized.

Administration Distinguished from Law Law is impersonal command provided with sanctions to be applied in case of viola tion, while Administration is preventive rather punitive and is accepted to be m ore personal than law. Law maintains a watchful eye on those who would violate its order. While admini stration on the other hand seeks to spare individuals from punishments of the la w by persuading him to observe its commands.

Chapter 2 Administrative Agencies Definition Administrative agency a body endowed with quasi-legislative and quasi-judicial p owers for the purpose of enabling it to carry out the laws entrusted to it for e nforcement or execution. Administrative agency may be regarded as an arm of the legislature insofar as it is authorize to promulgate rules. It may also be loosely considered a court be cause it performs functions of a particular judicial character, as when it decid es factual and sometimes even legal questions as an incident of its general powe r of regulation. Creation and Abolition The administrative body may be created by the Constitution or by a Statute. If created by the Constitution itself, the administrative body can be altered or abolished only by Constitution. But where the body was created only by statute , the legislature that breathed life into it can amend or even repeal its charte r, thereby resulting in its abolition which is justified if made in good faith.

Chapter 3 Powers of Administrative Agencies Quasi-Legislative Power the authority delegated by the law-making body to the ad ministrative body to adopt rules and regulations intended to carry out the provi sions of a law and implement legislative policy. Quasi-Judicial Power the power of the administrative authorities to make determi nations of facts in the performance of their official duties and to apply the la w as they construe it to the facts so found. Chapter 4 The Quasi-Legislative Power It has already been remarked that the rule-making power of the administrative bo dy is intended to enable it to implement the policy of the law and to provide fo r the more effective enforcement of its provisions.

Through the exercise of this power of subordinate legislation, it is possible fo r the administrative body to transmit the active power of the state from its sour ce to the point of application, that is, apply the law and so fulfill the mandate of the legislature. Kinds of Administrative Regulations (a) Legislative the administrative agency is acting in a legislative capacity, supplementing the statute, filling in the details, or making the law, and usually acting pursuant to a specific delegation of legislative power. (b) Interpretative are those which purport to do no more than interpret the sta tute being administered, to say what it means. They constitute the administrato r's construction of a statute. The interpretative regulation is issued by the administrative body as an inciden t to its power to enforce the law and is intended merely to clarify its provisio ns for proper observance by the people. It is an elementary rule in administrative law that administrative regulations a nd policies enacted by administrative bodies to interpret which they are entrust ed to enforce, have the force of law, are entitled to great respect, and have in their favor a presumpption of legality. By contrast, the legislative regulation is issued by the administrative body pur suant to a valid delegation of legislative power and is intended to have the bin ding the force and effect of a law enacted by the legislature itself. Classification of Legislative Regulation (a) Supplementary intended to fill in the details of the law and to make explici t what is only general. (b) Contingent issued upon the happening of a certain contingency which the adm inistrative body is given the discretion to determine or to ascertain some circu mstances and on the basis thereof may enforce or suspend the operation of a law . Requisites of Administrative Regulation (a) Its promulgation must be authorized by the legislature; (b) It must be within the scope of the authority given by the legislature; (c) It must be promulgated in accordance with the prescribed procedure; (d) It must be reasonable. First Requisite: Promulgation Must Be Authorized by the Legislature Authority to promulgate the regulation is usually conferred by the Charter itsel f of the administrative body or by the law it is supposed to enforce. When Congress authorizes promulgation of administrative rules and regulations to implement given legislation, all that is required is that the regulation be not in contravention with it, but to conform to the standards that the law prescrib es. Second Requisite: Regulation Must Be Within the Scope of the Authority Given by the Legislature

Assuming a valid authorization, it is still necessary that the regulation promul gated must not be ultra vires or beyond the authority conferred. Third Requisite: Regulation Must Be Promulgated in Accordance with the Prescrib ed Procedure As in the enactment of laws, the promulgation of administrative regulations of g eneral application does not require previous notice and hearing, the only except ion being where the legislature itself requires it . In the absence of such a r equirement, the administrative body can promulgate the regulation in its exclusi ve discretion. But where the regulation is in effect a settlement of a controversy between spec ific parties, it is considered an administrative adjudication and so will requir e notice and hearing. As for publication, the applicable rule is now found in Executive Order No. 200 which provides that laws shall take effect after fifteen (15) days following the completion of their publication either in the Official Gazette or in a newspaper of general circulation in the Philippines, unless it is otherwise provided. Interpretative regulations and those merely internal in nature, that is, regulat ing only the personnel of the administrative agency and not the public, need not be published. Publication must be in full or it is no publication at all since its purpose is to inform the public of the contents of the law. The Supreme Court, it would seem, requires publication of the administrative reg ulation only if it is of general application and penal in nature. Fourth Requisite: Regulation Must Be Reasonable Like statutes, administrative regulations promulgated thereunder must not be unr easonable or arbitrary as to violate due process. Penal Regulations The power to define and punish crime is exclusively legislative and may not be d elegated to the administrative authorities. While administrative regulations ma y have the force and effect of law, their violation cannot give rise to criminal prosecution unless the legislature makes such violation punishable and imposes the corresponding sanctions. Special requisites of a valid administrative regulation with a penal sanction: (a) The law itself must make violation of the administrative regulation punisha ble; (b) The law itself must impose and specify the penalty for the violation of the regulation; (c) The regulation must be published. Construction and Interpretation Regulation should be read in harmony with the statute and not in violation of th e authority conferred on the administrative authorities.

The administrative regulation that contravenes the statute is, of course, invali d. Enforcement It is established that the power to promulgate administrative regulations carrie s with it the implied power to enforce them. This may be effected through judic ial action or through sanctions that the statute itself may allow the administra tive body to impose. Amendment or Repeal Like the statute, the administrative regulation promulgated thereunder is subjec t to amendment or repeal by the authorities that promulgated them in the first p lace. Of course, it may be changed directly by the legislature. Chapter 5 The Quasi-Judicial Power Quasi-judicial power is the power of the administrative agency to determine ques tions of fact to which the legislative policy is to apply, in accordance with th e standards laid down by the law itself. The proper exercise of the quasi-judicial power requires compliance with two con ditions, to wit: (1) Jurisdiction must be properly acquired by the administrative body (2) Due process must be observed in the conduct of the proceedings A. Jurisdiction Jurisdiction may be simply defined as the competence of an office or body to act on a given matter or decide a certain question. Without jurisdiction, the determination made by the administrative bodies are ab solutely null and without any legal effect whatsoever. It is the legislature that has the power to confer jurisdiction upon the adminis trative body and so limit or expand its authority. It can be said that each administrative body has its own peculiar jurisdiction a s conferred upon it by the specific provisions of its charter. The law may allow some administrative bodies to award certain kinds of damages w hile denying the same power, for no apparent reason, to other administrative bod ies. For example, the SEC and NLRC are allowed to award damages virtually to the same extent as a court of justice. Yet similar authority has not been conferred by its charter to NTC. It is a well-settled principle that unless expressly empowered, administrative a gencies are bereft of quasi-judicial power. 1. Rules of Procedure

Where an administrative body is expressly granted the power of adjudication, it is deemed also vested with the implied power to precribe the rules to be observe d in the conduct of its proceedings. But to be valid, the rules must not violate fundamental rights or encroach upon constitutional prerogatives. 2. The Subpoena Power The power to issue subpoena and subpoena duces tecum is not inherent in administ rative bodies. It is settled that administrative bodies may summon witnesses and require the pr oduction of evidence only when duly allowed by law, and always only in connectio n with the matter they are authorized to investigate. Unless otherwise provided by law, the agency may, in case of disobedience, invoke the aid or Regional Tria l Court within whose jurisdiction the contested case falls. The Court may punis h customacy or refusal as contempt. The Supreme Court distinguished between the power to investigate and the power to a djudicate: The purpose of investigation, of course, is to discover, to finnd out, to learn, obtain information. Nowhere included or intimated is the notion of settling, de ciding or resolving a controversy involve in the facts inquired into by applicat ion of the law x x. In the legal sense, adjudicate means to settle in the exercise of judicial authori ty x x. Adjudge x x implies a judicial determination of a fact, and the entry of judgment. 3. The Contempt Power Like the subpoena power, the power to punish for contempt is essentially judicia l and cannot be claimed as an inherent right by the administrative body. To be validly exercised, it must be expressly conferred upon the body and, addit ionally, must be used only in connection with its quasi-judicial as distinguishe d from its purely administrative or routinary functions. As a rule, where, say, a subpoena of the administrative body is disregarded, the person summoned may not be directly discipline by that body. The proper remedy id for the administrative body to seek assistance of the courts of justice for the enforcement of its order. The power to hold in contempt must be exercised not on the vindictive, but on th e preservative principle. B. Notice and Hearing The right to notice and hearing is essential to due process and its non-observan ce will as a rule invalidate the administrative proceedings. Persons are entitl ed to be notified of any pending case affecting their interests so that, if the y are minded, they may claim the right to appear therein and present their side or refute the position of opposing parties. Nevertheless, there are instances when notice and hearing can validly be omitte d. Among the justifications for such omissions are the urgency of immediate ac tion (which does not preclude the enjoyment of the right at a later time without

prejudice to the person affected) and the fact that the right had previously be en offered but not claimed. 1. Administrative Due Process While administrative determinations of contested case are by their nature judici al, there is no requirement for strict adherence to technical rules as are obser ved in truly judicial proceedings. It is a general rule that they are unrestricted by the technical or formal rules of procedure which govern trials before a court. This rule is applied to quest ions of evidence, pleading and other matters. Nevertheless, it is essential that due process must be observed, for the require ments of fair play are not applicable to judicial proceedings only. Cardinal rights or principles to be observed in administrative proceedings: a. the first of these rights is the right to a hearing; b. the tribunal must consider the evidence presented; c. the tribunal must have something to support its decision; d. evidence must be substantial evidence relevant evidence that a reasonable m ind may accept as adequate to support a conclusion e. the decision must be rendered on the evidence presented at the hearing, or a t least contained in the record and disclosed to the parties; f. the court must act on its or their own independent consideration of the law and facts of controversy, and not simply accept the views of a subordinate in a rriving at a decision; g. the court 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 dec isions rendered It is basic to due process that the tribunal considering the administrative que stion be impartial, to ensure a fair decision. The law does not require another notice and hearing for a review of the decision of the board. In M.F. Violago Oiler Tank Trucks vs. NLRC, there was no denial of due process w here the petitioners received notice of the scheduled investigation the day befo re said date of the hearing or investigation but failed to present evidence. On the other hand, there was clearly such a denial where it appears that a decis ion rendered against a person who was not a party to or even notified of the pro ceedings taken before a labor arbiter. C. Administrative Appeals and review Unless otherwise provided by law or executive order, an appeal from a final deci sion of the administrative agency may be taken to the department head, whose de cision may further be brought to the regular courts of justice, in accordance wi th the procedure specified by law.

D. Enforcement of Decision In the absence of any statute providing for the enforcement of an administrative determination, the same cannot be enforced except possibly by appeal to the for ce of public opinion. Usually, however, the administrative body is allowed certain sanctions that it m ay impose directly for the enforcement of its own decisions, i.e. revocation o f or refusal to renew licenses, destruction of unlawful articles, summary closur e of stores, refusal to grant clearances, issuance of cease and desist orders, d etention and deportation of aliens, and imposition of fines. Significantly, many administrative bodies, such as the SEC and the NLRC, have be en vested with authority to grant provisional reliefs, such as writs of prelimin ary attachment or injunction, intended to ensure the enforcement of their adjudi cations. It is established that administrative agencies who have not been conferred the p ower to enforce their quasi-judicial decisions may invoke court action for the p urpose. E. Res Judicata The general rule is that an administrative decision is not considered res judic ata so as to preclude its subsequent reconsideration or revocation. Decisions o f the previous incumbents of the administrative body may be modified or reversed by their successors in the exercise of their own powers of adjudication. Where the administrative decision has been affirmed by a court decision, the doc trine of res judicata is applicable. The effect of res judicata attaches to th e judgment of the reviewing court rather than to the administrative judgment. This rule has however been modified in this jurisdiction. It is now well-settled in our jurisprudence that the decisions and orders of adm inistrative agencies, rendered pursuant to their quasi-judicial authority, have upon their finality, the force and binding effect of a final judgment within the purview of the doctrine of res judicata. This principle is, however, not applicable to all administrative proceedings, su ch proceedings that are non-litigious and summary in nature without regard to le gal technicalities obtaining in courts of law.

Chapter 6 Judicial Review General Rules An administrative decision may be appealed to the courts of justice only if the Constitution or the law permits it or if the question to be reviewed is a questi on of law. However, jurisprudence is replete with cases where the Supreme Court has applie d the exceptions rather than the rule.

In the case of the constitutional commission, i.e., the Commission on Elections, the Commission on Audit, and the Civil Service Commission, it is provided that a ny decision order or ruling of each Commission may be brought to the Supreme Cou rt on certiorari by the aggrieved party within 30 days from receipt of a copy th ereof. On the basis of Sec. 16 of the Interim Rules and Guideline implementing Sec. 9 (3) of BP Blg. 129, the Court of Appeals may review final decisions, orders, awar ds or resolutions or regional trial courts and of all quasi-judicial bodies, exc ept the Commission on Elections, the Commission on Audit, the Sandiganbayan, and decisions issued under the Labor Code of the Philippines and by the Central Bo ard of Assessment Appeals. Other appeals are prescribed by special laws, such as RA No. 1125, providing for appeal to the Court of Tax Appeals of any decision rendered by the Commissioner of Internal Revenue, the Commissioner of Customs, or any provincial or city boa rd of assessment appeals. Methods of review The methods of judicial review are prescribed by the Constitution, statutes or the Rules of the Court. These methods may be specific or general. It is provided in RA No. 5434 that an appeal from a final award, order or decisi ons of the Patent Office shall be taken by filing with said body and with the Co urt of Appeals a notice of appeal within 15 days from notice of such award, orde r or ruling, copies being served on all interested parties. The Administrative Code generally provides that an appeal from an agency decisio n shall be perfected by filing with the agency within 15 days from receipt of a copy thereof a notice of appeal, and with the reviewing court a petition for rev iew of the order. Copies of the petition shall be served upon the agency and al l parties of record. The petition shall contain a concise statement of the issues involved and the gr ounds relied upon for the review, and shall be accompanied with a true copy of t he order appealed from, together with copies of such material portions of the re cords as are referred to therein and other supporting papers. The Supreme Court instructed certain universally accepted axioms governing judic ial review through the extraordinary actions of certiorari or prohibition of det erminations of administrative officers or agencies: First, before said actions may be entertained, it must be shown that all the adm inistrative remedies prescribed by law or ordinance have been exhausted; and, Second, that the administrative decision may properly be annulled or set aside only upon a clear showing that the administrative official or tribunal has acted without or in excess of jurisdiction, or with a grave abuse of discretion. Doctrine of Primary Jurisdiction or Prior Resort There are two doctrines that must be considered in connection with the judicia l review of administrative decisions:(1) doctrine of primary jurisdiction or pr ior resort; and (2) the doctrine of exhaustion of administrative remedies. The doctrine of primary jurisdiction simply calls for the determination of admin istrative questions, which ordinarily questions of fact, by administrative agenc ies rather courts of justice.

If the case is such that its determination requires the expertise, specialized s kills and knowledge of the proper administrative bodies because technical matter s or intricate questions of facts are involved, then relief must first be obtain ed in an administrative proceeding before a remedy will be supplied by the court s even though the matter is within the proper jurisdiction of the court Doctrine of Exhaustion of Administrative Remedies Under the doctrine of exhaustion of administrative remedies, an administrative d ecision must first be appealed to the administrative superior up to the highest level before it may be elevated to a court of justice for review. A. Reasons The administrative superiors, if given the opportunity, can correct the errors c ommitted by their subordinates; Courts should as much as possible refrain from disturbing the findings of admini strative bodies in deference to the doctrine of separation of powers; On practical grounds, it is best that the courts should not be saddled with the review of administrative cases; Judicial review of administrative cases is usually effected through the special civil actions of certiorari, mandamus and prohibition, which are available only if there is no other plain, speedy and adequate remedy. B. Exceptions When the question raised is purely legal (question of law is involved); When the administrative body is estoppel; When the act complained of is patently illegal; When there is urgent need for judicial intervention; When the claim involved is small; When irreparable damage will be suffered; When there is no other plain, speedy and adequate remedy; When strong public interest is involved; When the subject of the controversy is private land; In quo warranto proceedings C. Appeal to the President Of special interest is the question of whether or not a decision of the cabinet member has to be appealed first to the President before it may be brought to a c ourt of justice. Jurisprudence on this matter is rather indecisive. In the early case of demaisip vs. Court of Appeals, the Court held that appeal t o the President was not necessary because the Cabinet member was after all his a lter ego and, under the doctrine of qualified political agency, the acts of the secretary were the acts of the President.

This view was abandoned in Calo vs. Fuertes, where it was held that appeal to th e President was the final step in the administrative process and therefore a con dition precedent to appeal to the courts. In Bartulata vs. Peralta, however, the court reinstated the Demaisip doctrine, again on the basis of alter ego justification. Tan vs. Director of Forestry, thereafter revived Calo andagain required appeal t o the President as a prerequisite to an appeal of a Cabinet member's decision to the courts of Justice. D. Effect of Non-compliance The failure to exhaust administrative remedies does not affect the jurisdiction of the court and merely results in the lack of a cause of action which may be in voked in a motion to dismiss. If this ground to dismiss the court action is not properly or reasonably invoked , the court may proceed to hear the case. As previously noted, the court has the discretion to require the observance of t he doctrine of exhaustion of administrative remedies and may, if it sees fit, di spense with it and proceed with the disposition of the case. Questions Reviewable Two kinds of questions are reviewable by the courts of justice, to wit: the que stion of fact and the question of law. On the question of fact, review of the administrative decision lies in the discr etion of the legislature, which may or may not permit it as it sees fit. But when it comes to the question of law, the administrative decision may be app ealed to the courts of justice independently of legislative permission or even a gainst legislative prohibition. The reason is that the judiciary cannot be depr ived of its inherent power to review all decisions on questions of law, whether made initially by lower courts and more so by an administrative body. A. Questions of fact Even if allowed to review administrative decisions on questions of fact, courts of justice generally defer to such decisions and will decline to disturb them ex cept only where there is a clear showing of arbitrariness or grave abuse of disc retion. The Supreme Court ruled in Osias Academy vs. DOLE that findings of administrativ e agencies which have acquired expertise because their jurisdiction is confined to specific matters are generally accorded not only respect but finality. B. Questions of Law Administrative bodies may be allowed to resolve questions of law in the exercise of their quasi-judicial function as an incident of their primary power of regul ation. However as a rule, it is only the judicial tribunal that can interpret and decid e the question of law with finality.