I.RIGHT-BASED DISCOURSE: NORMS, RIGHTS AND THE PLACE OF JUDICIAL POWERA.General Consti. Art. VIII, sec. 1Section 1
. The judicial power shall be vested in oneSupreme Court and in such lower courts as may beestablished by law. Judicial power includes the duty of the courts of justice tosettle actual controversies involving rights which arelegally demandable and enforceable, and to determine whether or not there has been a grave abuse of discretionamounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government.
Consti. Art. VIII, sec. 2Section 2
. The Congress shall have the power to define,prescribe, and apportion the jurisdiction of the variouscourts but may not deprive the Supreme Court of its jurisdiction over cases enumerated in Section 5 hereof.No law shall be passed reorganizing the Judiciary when itundermines the security of tenure of its Members.
Consti. Art. VIII, sec. 4.2Section 4. (2)
All cases involving the constitutionality of atreaty, international or executive agreement, or law, whichshall be heard by the Supreme Court en banc, and allother cases which under the Rules of Court are required tobe heard en banc, including those involving theconstitutionality, application, or operation of presidentialdecrees, proclamations, orders, instructions, ordinances,and other regulations, shall be decided with theconcurrence of a majority of the Members who actuallytook part in the deliberations on the issues in the case andvoted thereon.
Consti. Art. VIII, sec. 5.2.aSection 5. (2)
Review, revise, reverse, modify, or affirm onappeal or certiorari, as the law or the Rules of Court mayprovide, final judgments and orders of lower courts in:
All cases in which the constitutionality or validity of any treaty, international or executive agreement, law,presidential decree, proclamation, order, instruction,ordinance, or regulation is in question.
Original application of Bataan Petrochemical Corp(BPC) (Taiwanese owned) to BOI specified that:a. it’s going to build a plant in Limay Bataan, where the Petrochemical Industrial Zone (run byPNOC) and the Bataan Refining Corp (producer of the 60% of the Phil’s naptha output and a GOCC)are located.
It’s going to use naptha cracker and naptha asfuel for its plant
BPC tried to amend its application by changingthe site to Bataan and the fuel from naptha tonaptha and/or LPG. Shell Phil operates an LPGdepot in Batangas. (reason for the amendment:insurgency in Bataan and unstable laborsituation)
Several quarters objected to the transfer but BOIasserted that thought it preferred the Bataan site,it recognizes that the final decision/choice is withthe proponent who will provide funding or riskcapital. It approved the amendments.
Should the plant remain in Bataan or be moved toBatangas? Did BOI commit grave abuse of discretion inagreeing with the wishes of the investor?
BOI committed grave abuse of discretion. Theoriginal application is reinstated.
In this decision, the court asserted that its powersunder Art 8 sec 1(2) of the 1987 Consti provides it with the duty to address this controversy. It saidthat the position of the BOI to give absolutefreedom to the investors is a repudiation of theindependent policy of the government with regardto national interest expressed in numerous laws:a.Sec. 10 of ART XII of the Consti: duty of the stateto regulate and exercise over foreign investments within its national jurisdiction in accordance withits national goals and prioritiesb.Sec. 19, Art II: The State shall develop a self-reliant and national economy effectively controlledby Filipinos.c.Art 2. Omnibus Investment Code: It is the goal of the government to have “the sound development of the national econ in consonance with theprinciples and objectives of economic nationalism”Dissent: Carino-Aquino and Melencio Herrera: The courtshould not delve on matters beyond its competence.
University of the PhilippinesCollege of LawConstitutional Law IIMidterms ReviewerProf. Harry RoqueDean Pangalangan’s Syllabus
Transcribed and compiled by: Paulyn DumanDigests by Mike Ocampo (2011) and Batch 2008
Garcia vs. BOI