You are on page 1of 27

ADMINISTRATIVE LAW

2018 ​ ​ ​ ​ ​ ​ ​ ​ ​Class: LLB 2B


Lecturer: Atty. Sahara Alia J. Silongan ​ ​ ​ ​ ​ Thursdays, 6:30-8:30
P.M.

I. Introduction

Administrative Law embraces all the law that controls,


or is intended to control, the administrative operations of
government. It is that branch of modern law under which the
executive department of the government, acting in a quasi-
legislative or quasi-judicial capacity, interferes with the
conduct of the individual for the purpose of promoting the
well-being of the community, as under laws regulating public
interest, professions, trades and callings, rates and prices, laws
for the protection of public health and safety, and the
promotion of public convenience.

❖ Sources of Administrative Law

1) Constitutional or statutory enactments creating


administrative bodies.

Examples: Article IX of the Constitution on the


Constitutional Commissions; the Social Security Act
which established the Social Security Commission;
and the Administrative Code of 1987.

2) Decisions of courts interpreting the charters of


administrative bodies and defining their powers,
rights, inhibitions, among others, and the effects of
their determinations and regulations.

Examples: Aratuc v. Commission on Elections;


Maceda v. Energy Regulatory Board

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 1 of 27
3) Rules and regulations issued by the administrative
bodies in pursuance of the purposes for which they
were created.

Example: Omnibus Rules Implementing the Labor


Code, as promulgated by the DOLE

4) Determinations and order of the administrative bodies


in the settlements of controversies arising in their
respective fields.

Example: the awards of the NLRC with respect to


money claims of employees

❖ Origin and development in relation to the Doctrine of


Separation of Powers

Under the Doctrine of Separation of Powers, all rules of


conduct are supposed to be laid down directly by the
legislature, subject to the (likewise) direct enforcement of
the executive department, and the application or
interpretation, also directly, by the judiciary.

It was felt that the legislative and judicial departments no


longer had either the time or the needed expertise to attend
to these new problems, not to mention the lack of interest,
particularly in the legislature, as most of these problems did
not immediately affect the constituents of its members.

The obvious solution was delegation of power. The


legislature began authorizing certain specialized bodies to
lay down rules for the regulation of matters entrusted to
their jurisdiction and, additionally, to apply these rules in
the adjudication of factual issues relating to these matters.

❖ Administrative framework

➢ Government of the Republic of the Philippines: refers


to the corporate governmental entity through which the

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 2 of 27
functions of government are exercised throughout the
Philippines.

➢ Agency: refers to any of the various units of


Government, including a department, bureau, office,
instrumentality, or government-owned or controlled
corporation, or a local government or a distinct unit
therein.

➢ Instrumentality: refers to any agency of the National


Government, not integrated within the department
framework, vested with special functions or jurisdiction
by law, endowed with some if not all corporate powers,
administering special funds, and enjoying operational
autonomy, usually through a charter. This term includes
regulatory agencies, chartered institutions and
government-owned or controlled corporations.

➢ Incorporated agencies: sometimes with and at other


times without capital stock, are vested by law with a
juridical personality distinct from the personality of the
Republic.
Ex: National Power Corporation, Phil. Ports Authority,
National Housing Authority. Phil. National Oil Company

➢ Non-incorporated agencies: are those not vested with a


juridical personality distinct from the Republic, endowed
by law with some if not all corporate powers.
Ex: Sugar Regulatory Administration which is not a
GOCC but an agency under the OP.

* Incorporated and non-incorporated agencies or


instrumentalities are all agents or delegates of the Republic
of the Philippines.

➢ Chartered institution: refers to any agency organized


or operating under a specific charter, and vested by law
with functions relating to specific constitutional policies
or objectives.

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 3 of 27
➢ Administration: refers to the aggregate of those persons
in whose hand the reins of government are for the time
being.

II. Administrative Agencies

❖ Administrative agencies, boards and commissions are


public offices.

The term “public office” refers to the right, authority and


duty created and conferred by law, by which, for a given
period either fixed by law or enduring at the pleasure of the
appointing power, an individual is invested with some
portion of the sovereign functions of the government, to be
exercised by that individual for the benefit of the public.

A public office is a public trust or responsibility.

❖ Reasons for creation of administrative agencies

This field of law is a recent development, being a


consequence of the ever-increasing complexities of society
and the proliferation of problems of government that cannot
readily or effectively be addressed by the traditional public
agencies or solved by the other disciplines of public law.

❖ Creation

The administrative body or public office may be created by


the Constitution or by statute or by an officer or tribunal to
which the power to create the office has been delegated by
the legislature.

If created by the Constitution itself, the administrative body


can be altered or abolished only by constitutional
amendment.

But where the body was created only by statute, the

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 4 of 27
legislature that breathed life into it can amend or even
repeal its charter, thereby resulting in its abolition.

❖ Power to Reorganize

Reorganization is the process of restructuring the


bureaucracy’s organizational and functional set-up, to make
it more viable in terms of economy, effectiveness, and
make it more responsive to the needs of its public clientele
as authorized by law.

An administrative body created by law may be reorganized


pursuant to said law providing for its establishment or
another law authorizing said reorganization.

The legislature usually exercises the power to create or


abolish by delegating it to the President or to another
executive officer or body. The means by which the
legislature makes the delegation is by authorizing
reorganization.

❖ Types of Administrative Agencies

1. Agencies created to function in situations wherein


government is offering some gratuity, grant, or special
privileges.
2. Agencies created to function in situations wherein
government is seeking to carry on certain governmental
functions.
3. Agencies created to function in situations wherein
government is performing some business for the public.
4. Agencies created to function in situations wherein
government is seeking to regulate business affected with
public interest.
5. Agencies created to function in situations wherein
government is seeking under the police power to regulate
private business and individuals.
6. Agencies created to function in situations wherein
government is seeking to adjust individual controversies

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 5 of 27
because of some strong social policy involved.
7. Agencies created to function in situations wherein
government is seeking to conduct investigations and
gather evidence for information, recommendation or
prosecution of crimes.

❖ Government-Owned and Controlled Corporations v.


Government Instrumentality

▪ Manila International Airport Authority v. City of


Pasay (April 2, 2009)
▪ Funa v. Manila Economic and Cultural Office
and COA (Feb. 04, 2014)
▪ Boy Scouts of the Philippines v. COA (June 7,
2011)
▪ Veterans Federation of the Philippines v. Angelo
Reyes (Feb. 28, 2006)
▪ Philippine Fisheries Development Authority v.
Court of Appeals (July 31, 2007)
▪ Feliciano v. Gison (August 25, 2010)
▪ City of Lapu-Lapu v. Philippine Economic Zone
Authority (Nov. 26, 2014)
▪ Republic v. City of Parañaque (July 18, 2012)

❖ Powers

It is a settled principle of law that in determining whether


an administrative agency has certain powers, the inquiry
should be from the law itself and the authority given should
be liberally construed in the light of the purposes for which
it was created, and that which is incidentally necessary to a
full implementation of the legislative intent should be
upheld as being germane to the law. Necessarily, too, where
the end is required, the appropriate means are deemed
given.

▪ Liberal construction is adopted to enable administrative


agencies to discharge their assigned duties in
accordance with the legislative purpose or intent.

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 6 of 27
▪ Express and Implied Powers

Public officials possess powers, not rights. There must


be a grant of authority, whether express or implied, to
justify any action taken by them. A public official
exercises power within the law which grants it. The
government itself is merely an agency through which
the will of the state is expressed and enforced. Its
officials therefore are likewise agents entrusted with
the responsibility of discharging its functions. As
such, there is no presumption that they are empowered
to act. There must be a delegation of such authority,
either express or implied.
​ ​
Jurisdiction. Settled is the rule that jurisdiction to
hear and decide cases, which involves the exercise of
adjudicatory power, is conferred only by the
Constitution or by statute. It cannot be conferred by
the Rules of Court. Jurisdiction over the subject
matter must exist as a matter of law and cannot be
fixed by agreement of the parties. An administrative
agency cannot grant itself jurisdiction to decide a
particular matter by issuing the appropriate rules and
regulations in the exercise of its quasi-legislative
power, where the enabling statute does not confer.
​ ​
▪ Ministerial Duty and Discretionary Power

➢ A ministerial duty is one which is so clear and


specific as to leave no room for the exercise of
discretion in its performance. It is one which an
officer or tribunal performs in a given state of
facts, in a prescribed manner, in obedience to the
mandate of legal authority, without regard to the
existence of his own judgment, upon the
propriety or impropriety of the act done.

➢ If the law imposes a duty upon a public officer,

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 7 of 27
and gives him the right to decide how or when
the duty shall be performed, such duty is
discretionary and not ministerial.

If the duty is ministerial, mandamus may lie to


compel performance; if the duty is discretionary, a
petition for certiorari may lie where there is grave
abuse of discretion amounting to lack of jurisdiction
on the part of the official or administrative agency.

▪ Mandatory and Directory Duties and Powers

A mandatory statute is a statute which commands


either positively that something be done, or performed
in a particular way, or negatively that something be
not done, leaving the person concerned no choice on
the matter except to obey. A mandatory statute is one
that contains words of command or of prohibition, the
omission to follow which renders the proceeding to
which it relates illegal and void, or the violation of
which makes the decision therein rendered invalid.
Acts executed against the provisions of mandatory
or prohibitory laws shall be void, except when the
law itself authorizes their validity. (Art. 5, NCC)

▪ Quasi-Legislative

➢ The quasi-legislative power may be defined as


the authority delegated by the law-making body
to the administrative body to adopt rules and
regulations intended to carry out the provisions of
a law and implement legislative policy.

Distinguished from Legislative Power: The


discretion to determine what the law shall be is
exclusively legislative and cannot be delegated.
What is employed in the promulgation of
administrative regulations is not this kind of
discretion but the discretion to determine how

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 8 of 27
the law shall be enforced.

▪ Quasi-Judicial

➢ The quasi-judicial power has been defined as


the power of the administrative authorities to
make determinations of facts in the performance
of their official duties and to apply the law as
they construe it to the facts so found.

Distinguished from judicial power: The judicial


process focuses on the question of law, with the
questions of fact being regarded as of secondary
importance only. In judicial proceedings, the
executive acts last, after judgment is made and all
legal questions are settled, whereas in the
exercise of quasi-judicial power, the executive
acts first, with the courts acting later, whenever
warranted, to review its legal findings.

o Errors in exercise of powers

➢ Government not bound by errors of public


officers.
The government can do no wrong. It authorizes
only legal acts by its officers. Its officers and
agents do wrong or commit unauthorized acts.
And when they do, they are not errors or acts of
the government.

o Presumption of regularity

➢ Government officials are presumed to perform


their functions with regularity and strong
evidence is necessary to rebut this presumption.

III. Power of Control, Supervision and Investigation

The President and other executive or administrative

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 9 of 27
agencies or bodies are granted powers and functions by
the Constitution or by statutes to enforce the laws and to
carry out the governmental functions, as well as policies
and objectives provided in statutes creating them.
Among such powers are those of control, supervision
and investigation.

➢ Executive Power of the President

❖ Marcos v. Manglapus (Oct. 27, 1989)

➢ President’s power of control

The President’s power of control means his power


to alter or modify or nullify or set aside what a
subordinate officer had done in the performance of
his duties and to substitute his judgment with that of
the latter.

The presidential power of control over the executive


branch of the government extends to all executive
officers from cabinet secretary to the lowliest clerk
in the executive department. He is the Chief
Executive, the head of government and the chief
administrative officer.

❖ Araneta v. Gatmaitan (April 30, 1957)

▪ Limitations

Generally speaking, the power of control does not


include the following: (1) the abolition or creation
of an executive office, (2) the suspension or
removal of career executive officials or employees
without due process of law, and (3) the setting
aside, modification, or supplanting of decisions of
quasi-judicial agencies, including that of the Office
of the President, on contested cases that have

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 10 of 27
become final pursuant to law or ti rules and
regulations promulgated to implement the law.

❖ Ang-Angco v. Castillo (Nov. 30, 1963)


❖ Camarines Norte Electric Cooperative, Inc.
v. Torres (Feb. 27, 1998):
❖ Fortich v. Corona (April 24, 1998)

➢ Doctrine of Qualified Political Agency

Under the Doctrine of Qualified Political Agency,


all executive and administrative organizations are
adjuncts of the executive department, the heads of
the various executive departments are assistants and
agents of the Chief Executive, and, except in cases
where the Chief executive is required by the
Constitution or the law to act in person or the
exigencies of the situation demand that he act
personally, the multifarious executive and
administrative functions of the Chief Executive are
performed by and through the executive department
secretaries as his alter egoes, and the acts of the
secretaries of such departments, performed and
promulgated in the regular course of business, are,
unless disapproved or reprobated by the Chief
Executive, pre-emptively the acts of the Chief
Executive.

➢ By authority of the President

The Executive Secretary or his Deputy or Assistant


Executive Secretary or any cabinet secretary, who
acts and signs “By Authority of the President,” acts
not for himself but for the President. Thus, acts or
contracts executed by the Executive or Deputy
Executive Secretary “By Authority of the President”
are presumed valid and performed in behalf of the
President and should thus be accorded due respect.

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 11 of 27
➢ President’s power of supervision

The constitutional provision that the “President


shall have control of all the executive departments,
bureaus and offices” implies that he may not have
the power of control over agencies which are not
categorized as executive departments, bureaus and
offices, unless the law creating them provides that
he shall have such power. In absence of such law,
the President may have only the power of
supervision, which is only overseeing or the power
to see that the officials concerned perform their
duties,, and if they later fail or neglect to fulfil
them, to take such action or steps as prescribed by
law to make them perform their duties.

❖ Rodriguez v. Montinola (May 14, 1954)


❖ Taule v. Santos (Aug. 12, 1991)
❖ Pimentel v. Aguirre (July 19, 2000)

➢ Control, supervision and review by other executive


officials

The department secretary exercises control,


supervision and review of acts done by subordinate
officials and employees in his department. In turn, a
head of a bureau or office exercises such powers
over his subordinate personnel. The power of
control in that sense, means the power of an officer
to alter, modify or nullify or set aside what a
subordinate officer had done in the performance of
his duties and to substitute the judgment of the
former for that of the latter.

Supervision means overseeing or the power or


authority of an officer to see that their subordinate
officers perform their duties. If the latter fail or
neglect to fulfil them, the former may take such
action or steps as prescribed by law to make them

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 12 of 27
perform their duties.

Review, on the other hand, is a reconsideration or


re-examination for purposes of correction. The
power of review is exercised to determine whether
it is necessary to correct the acts of the subordinate.
If such correction is necessary, it must be done by
the authority exercising control over the subordinate
or through the instrumentality of the courts of
justice, unless the subordinate motu proprio corrects
himself after his error is called to his attention by
the official exercising the power of supervision and
review over him.

❖ Drilon v. Lim (Aug. 4, 1994)


❖ Phil. Gamefoul Commission v. IAC (Dec. 17,
1986)

The department secretary’s supervision and control


over all bureaus and offices under his jurisdiction is
limited to the bureaus and officers under him, but
does not extend to agencies attached to the
department.

➢ Power of Investigation

Investigatory or “inquisitorial” power consists in


gathering, organizing, and analyzing evidence,
which is a useful aid or tool in an administrative
agency’s performance of its rule –making or quasi-
judicial functions.

Purposes: The investigatory powers of some


agencies are limited to only information gathering,
as basis to recommend appropriate action by other
government agencies or to focus public opinion on
matters of vital concern, like the CHR; other
agencies are granted investigatory powers for

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 13 of 27
prosecution purposes, such as the offices of public
prosecutor and the Ombudsman; still others exercise
investigatory powers in aid in the exercise of other
powers granted them, like the SEC in the regulation
of private corporations. The enabling act defines the
extent of such investigatory powers.

The President’s investigatory power emanates


from his power of supervision and control over all
executive departments, bureaus, and offices; his
power of supervision over LGUS; and his power of
appointment of presidential appointees, which are
conferred upon him by the Constitution. His
investigatory power also comes from powers
delegated to him by the legislature. In the exercise
of his investigatory power, the President may do so
thru an executive officer, or create a body or
committee to conduct the investigation, empower
said officer, body or committee to issue subpoena
and subpoena duces tecum for the purpose, and to
make recommendations, on the basis of which he
will make his appropriate action.

❖ Evangelista v. Jarencio (Nov. 27, 1975)


​ ​
An investigatory body with the sole power of
investigation does not exercise judicial functions and
its power is limited to investigating the facts and
making findings in respect thereto. The test
whether an administrative body is exercising
judicial functions or merely investigatory
functions is: if the only purpose of investigation is
to evaluate evidence submitted before it based on
facts and circumstances presented to it, and if the
agency is not authorized to make a final
pronouncement affecting the parties, then there is
an absence of judicial discretion and judgment.

There are administrative agencies which are granted

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 14 of 27
only investigatory powers. Ex: CHR and NBI.

❖ Cariño v. Commission on Human Rights


(Dec. 2, 1991)

IV. Quasi-Legislative Power

➢ Legislative power is the power to make, alter and


repeal laws. The essential feature of the legislative
function is the determination of the legislative
policy and its formulation and promulgation as a
defined and binding rule of conduct.

The doctrine of separation of power prohibits the


delegation of purely legislative power. (Bar
Question) It does not, however, absolutely prohibit
delegation of legislative power. The prohibition
does not embrace every power the legislature may
properly exercise. What the doctrine precludes is
the delegation of those powers which are strictly or
inherently and exclusively legislative such as
determining what the law shall be, to whom it may
be applied, or what acts are necessary to effectuate
the law. In other words, the power to declare
whether or not there shall be a law, to determine the
general purpose or policy to be achieved by the law,
and to fix the limits within which the law shall
operate is a power which is vested in the legislature
and may not be delegated.

The latest in our jurisprudence indicates that


delegation of legislative power has become the rule
and its non-delegation the exception. The reason is
the increasing complexity of modern life and many
technical fields of governmental functions.

The Constitution itself makes the delegation of


legislative power to the President, the Supreme

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 15 of 27
Court, and the local government units.

➢ Delegation of legislative power to the President


is permitted in Sections 23(2) and 28(2) of Article
VI of the Constitution. The Administrative Code of
1987 also delegates to the President certain
ordinance powers, in the form of presidential
issuances. This ordinance power of the President
involves the issuance of the following:

1. Executive Orders. - Acts of the President


providing for rules of a general or permanent
character in implementation or execution of
constitutional or statutory powers shall be
promulgated in executive orders.

2. Administrative Orders. - Acts of the President


which relate to particular aspect of
governmental operations in pursuance of his
duties as administrative head shall be
promulgated in administrative orders.

3. Proclamations. - Acts of the President fixing a


date or declaring a status or condition of public
moment or interest, upon the existence of
which the operation of a specific law or
regulation is made to depend, shall be
promulgated in proclamations which shall have
the force of an executive order.

4. Memorandum Orders. - Acts of the President


on matters of administrative detail or of
subordinate or temporary interest which only
concern a particular officer or office of the
Government shall be embodied in
memorandum orders.

5. Memorandum Circulars. - Acts of the


President on matters relating to internal

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 16 of 27
administration, which the President desires to
bring to the attention of all or some of the
departments, agencies, bureaus or offices of
the Government, for information or
compliance, shall be embodied in
memorandum circulars.

6. General or Special Orders. - Acts and


commands of the President in his capacity as
Commander-in-Chief of the Armed Forces of
the Philippines shall be issued as general or
special orders.

➢ Delegation of legislative power to the Supreme


Court. The Constitution vests in the Supreme Court
the power to “Promulgate rules concerning the
protection and enforcement of constitutional rights,
pleadings, practice, and procedure in all courts, the
admission to the practice of law, the Integrated Bar,
and legal assistance to the underprivileged. The
power vested in the Supreme Court, as above
provided, empowers it not only to promulgate rules
of procedure but also to repeal procedural laws,
such as those which prescribe the method of
enforcing rights or obtaining redress for their
invasion. Parts of statutes which deal with
procedural aspects can be modified or repealed by
the Supreme Court by virtue of ots constitutional
rule-making powers.

➢ Delegation of legislative power to local


governments. Section 48 of the Local Government
Code of 1991 provides that “Local legislative power
shall be exercised by the sangguniang panlalawigan
for the province; the sangguniang panlungsod for
the city; the sangguniang bayan for the
municipality; and the sangguniang barangay for the
barangay.

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 17 of 27
➢ Rule-making power of administrative agencies
refers to the power to issue rules and regulations
which result from delegated legislation in the
administrative level.

▪ Distinguished from quasi-judicial power

Quasi-Legislative Quasi-Judicial
Applicability Operates in the future to Enforcement of liabilities as they
govern the public at large. stand on present or past facts and
under existing laws; Applies to
specific situations or to specific
persons or entities, or pertains
exclusively to a named entity and
to no other.
Doctrine of Not applicable in Applicable in questioning an act
Exhaustion of questioning the validity or performed pursuant to quasi-
Administrative constitutionality of a rule judicial function.
Remedies or regulation.
Requirement of Not required in the Required in adjudication of
notice and hearing issuance of rules and controversies at least the
regulations unless opportunity to be heard on the
required by the statute part of the affected person as a
making the delegation. prerequisite for the validity of the
decision.
Doctrine of Not applicable. Applicable.
Primary
Jurisdiction

❖ The Central Bank of the Philippines v.


Cloribel (April 11, 1972)
Held: Then, too, the Central Bank is supposed
to gather relevant data and make the necessary
study, but has no legal obligation to notify and
hear anybody, before exercising its power to
fix the maximum rates of interest that banks
may pay on deposits or any other obligations.
Previous notice and hearing, as elements of
due process, are constitutionally required for
the protection of life or vested property rights,
as well as of liberty, when its limitation or loss
takes place in consequence of a judicial or
quasi-judicial proceeding, generally dependent
upon a pastact or event which has to be
established or ascertained. It is not essential to

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 18 of 27
the validity of general rules or regulations
promulgated to govern future conduct of
a class of persons or enterprises, unless the law
provides otherwise, and there is no statutory
requirement to this effect, insofar as the fixing
of maximum states of interest payable by
banks is concerned.

▪ Kinds of rule-making power


1. Rule-making by reason of particular delegation
of authority
• This refers to the power to issue rules and
regulations which have the force and effect
of law.
2. Rule-making by the construction and
interpretation of a statute being administered
• The interpretation is of three kinds:
a) Interpretation as incident of the
execution of a law;
b) Interpretation handed down by the
Secretary of Justice upon request of a
government agency or official; and
c) Interpretation in adversary proceedings.
3. Determination of facts under a delegated
power as to which a statute shall go into effect
• This refers to the ascertainment of facts
which will form the basis for the
enforcement of a statute.

▪ Power of subordinate legislation: administrative


bodies may implement the broad policies laid down
in a statute by “filling in” the details which the
Congress may not have the opportunity or
competence to provide. This is effected by their
promulgation of what are known as supplementary
regulations, which have the force and effect law
law.

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 19 of 27
➢ Tests to determine validity of delegation (Bar
Question)
✓ completeness test: Ideally, the law must be
complete in all its terms and conditions when it
leaves the legislature so that when it reaches
the delegate, it will have nothing to do but to
enforce it. If there are gaps in the law that will
prevent its enforcement until they are first
filled, the delegate will have the opportunity to
repair the omission through the exercise of the
discretion to determine what the law shall be
which, as earlier noted, is essentially
legislative.

A statute may be complete when the subject,


the manner, and the extent of its operation are
stated in it. It must describe what must be
done, who must do it, and the scope of
authority.

❖ United States v. Ang Tang Ho (Feb. 27,


1922)
Held: When Act No. 2868 is analyzed, it is the
violation of the proclamation of the Governor-
General which constitutes the crime. Without
that proclamation, it was no crime to sell rice
at any price. In other words, the Legislature
left it to the sole discretion of the Governor-
General to say what was and what was not
"any cause" for enforcing the act, and what
was and what was not "an extraordinary rise in
the price of palay, rice or corn," and under
certain undefined conditions to fix the price at
which rice should be sold, without regard to
grade or quality, also to say whether a
proclamation should be issued, if so, when,
and whether or not the law should be enforced,
how long it should be enforced, and when the

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 20 of 27
law should be suspended. The Legislature did
not specify or define what was "any cause," or
what was "an extraordinary rise in the price of
rice, palay or corn," Neither did it specify or
define the conditions upon which the
proclamation should be issued. In the absence
of the proclamation no crime was committed.
The alleged sale was made a crime, if at all,
because the Governor-General issued the
proclamation.

Act No. 2868, in so far as it undertakes to


authorized the Governor-General in his
discretion to issue a proclamation, fixing the
price of rice, and to make the sale of rice in
violation of the price of rice, and to make the
sale of rice in violation of the proclamation a
crime, is unconstitutional and void.

✓ sufficient standard test: The law must offer a


sufficient standard to specify the limits of the
delegate’s authority, announce the legislative
policy, and specify the conditions under which
it is to be implemented. The standard is usually
embodied in the law itself.

Among the accepted sufficient standards are:


public interest, promote simplicity, economy
and efficiency in government, public welfare,
interest of law and order, justice and equity,
adequate and efficient instruction, public
safety, public policy, greater national interest,
protect the local consumer by stabilizing and
subsidizing domestic pump rates, fair and
equitable employment practices.

Both tests are intended to prevent a total


transference of legislative authority to the

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 21 of 27
delegate, who is not allowed to step into the
shoes of the legislature and exercise a power
essentially legislative.

❖ Araneta v. Gatmaitan (supra)

❖ Ynot v. Intermediate Appellate Court


(March 20, 1987)
❖ Pelaez v. Auditor General (Dec. 24, 1965)
❖ Eastern Shipping Lines, Inc. v. POEA (Oct.
18, 1988)
❖ People v. Rosenthal (June 12, 1939)
❖ Antamok Gold Fields v. CIR (June 28, 1940)
❖ Calalang v. Williams (Dec. 2, 1940)
❖ Cervantes v. Auditor General (May 26,
1952)

➢ Administrative Regulations
Rules and regulations are the product of subordinate
legislation. If valid, the rules and regulations issued
by the administrative agencies to implement the law
have the force and effect of a law. Until set aside,
the rules are binding upon executive and
administrative agencies.

▪ Kinds:
• Legislative: A legislative rule is in the matter of
subordinate legislation, designed to implement a
primary legislation by providing the details
thereof.
o Supplementary regulation: intended to fill
in the details of the law and to make explicit
what is only general. Its purpose is to
enlarge upon a statute, subject only to the
standards fixed therein, to ensure its
effective enforcement in accordance with the
legislative will.

Example: “fee” in exchange for an offer or

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 22 of 27
promise of employment under the Labor
Code. Under the IRR, the fee shall include
the costs of medical and psychological
examination, inoculation certificate,
passport, placement fees, and the like.

o Contingent regulation: issued upon the


happening of a certain contingency which
the administrative body is given the
discretion to determine. Administrative
agencies are allowed to ascertain the
existence of particular contingencies.

❖ Cruz v. Youngberg (October 26,


1931)

• Interpretative: An interpretative rule, on the other


hand, is designed to provide guidelines to the law
which the administrative agency is in charge of
enforcing. It does no more than interpret the
statute being administered, to say what it means.
Examples: BIR and BSP circulars, legal opinions
of administrative or executive agency.

▪ Requisites of a valid administrative regulation

1) Its promulgation must be authorized by the


legislature.

Ex: The National Internal Revenue Code (NIRC)


authorizes the Secretary of Finance, upon
recommendation of the Commissioner of Internal
Revenue, to promulgate all needful rules and
regulations for the effective enforcement of the
provisions of the NIRC.

The Corporation Code vests the Securities and


Exchange Commission with the power and
authority to implement the Code and to

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 23 of 27
promulgate rules and regulations necessary to
enable it to perform its duties thereunder.

2) It must be within the scope of the authority given


by the legislature.

The regulation promulgated must not be ultra


vires or beyond the limits of the authority
conferred. It is a fundamental rule that
implementing rules cannot add to or detract from
the provisions of the law it is designed to
implement. An administrative agency cannot
amend an act of Congress.

If a discrepancy occurs between the basic law and


an implementing rule or regulation, it is the
former that prevails. This is because the law
cannot be broadened by a mere administrative
issuance. Administrative rules and regulations are
intended to carry out, not supplant or modify, the
law.

❖ Grego v. COMELEC (June 19, 1997)


❖ Bautista v. Juinio (Jan. 31, 1984)
❖ Metropolitan Traffic Command v. Gonong
(July 13, 1990)

3) It must be promulgated in accordance with the


prescribed procedure.

On notice and hearing:

❖ Philippine Consumers Foundation, Inc. v.


Secretary of Education Culture and Sports
(Aug. 31, 1987)
❖ Balbuna v. Secretary of Education (Nov. 29,
1960)
❖ De Jesus v. COA (August 12, 1998)
❖ Senate of the Philippines v. Ermita (April

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 24 of 27
20, 2006)

Apart from publication, it is also required that the


rules and regulations be filed with the UP Law
Center of the University of the Philippines.

4) It must be reasonable.

Like statutes, administrative regulations


promulgated thereunder must not be unreasonable
or arbitrary as to violate due process.

In order to be valid, the administrative rules and


regulations must be germane to the objects and
purposes of the law, conform to the standards that
the law prescribes, must be reasonable and must
relate solely to carrying into effect the general
provisions of the law.

If the implementing rules and regulations are issued


in excess of the rule-making authority of the
administrative agency, they are without binding
effect upon the courts. At best the same may be
treated as administrative interpretations of the law,
and as such, they may be set aside by the Supreme
Court in the final determination of what the law
means.

If shown to bear no reasonable relation to the


purposes for which they are authorized to be issued,
then they must be held to be invalid.

❖ Lupangco v. CA (April 29, 1988)


❖ Taxicab Operators of Metro Manila v.
Board of Transportation (Sept. 30, 1982)

➢ Rules constituting an offense


Administrative bodies have the authority to issue
administrative regulations which are penal in nature

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 25 of 27
where the law itself makes the violation of the
administrative regulation punishable and provides
for its penalty. The regulations may then validly
spell out the details of the offense.

On the other hand, where a law empowering an


administrative agency to issue rules and regulations
does not provide that violation of such rules shall be
unlawful and punishable or even if it does, it does
not prescribe the penalty for such violation, the
administrative agency tasked to execute the law has
no power to penalize violation of its rules and
regulations. For the making of an act a crime is
purely legislative, which the legislature cannot
delegate.

❖ People v. Maceren
❖ People v. Santos (August 15, 1936)
❖ United States v. Panlilio (Dec. 8, 1914)
❖ Pesigan v. Angeles (April 30, 1984)

In sum, the following are the special requisites of a


valid administrative regulation with a penal
sanction:

1. The law itself must make violation of the


administrative regulation punishable.
2. The law itself must impose and specify the
penalty for the violation of the regulation.
3. The regulation must be published.

➢ Prohibition against re-delegation


Doctrine of potestas delegata non delegari protest.
What has been delegated cannot be delegated. This
doctrine is based on the ethical principle that such a
delegated power constitutes not only a right but a
duty to be performed by the delegate through the
instrumentality of his own judgment and not

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 26 of 27
through the intervening mind of another. A further
delegation of such power would negate the duty in
violation of the trust reposed in the delegate
mandated to discharge it directly.

❖ Kilusang Mayo Uno Labor Center v.


Garcia, Jr. (Dec. 23, 1994)
❖ Aquino Sarmiento v. Morato (Nov. 13, 1991)

V. Quasi-Judicial Power
❖ Smart Communications, Inc. v. National
Telecommunications Commission (Aug. 12, 2003)
2016 BQ No. VIII
VI. Doctrine of Primary Jurisdiction
VII. Doctrine of Exhaustion of Administrative Remedies
VIII. Judicial Review

23
Sources: AGPALO. Administrative Law. 2005 ed.; CRUZ. Philippine Administrative Law. 2007 ed.

https://cdn.fbsbx.com/v/t59.2708-21/73420935_487483645443…oh=bc7f33d10ea790b631b44fb8181bebbd&oe=5DE8B8BE&dl=1 12/3/19, 3:06 PM


Page 27 of 27

You might also like