You are on page 1of 6

Tatad v. Executive Secretary, G.R. No. 124360, 2.

    Did §15 violate the constitutional prohibition on undue delegation of


power?
November 5, 1997 3.    Was E.O. No. 392 arbitrary and unreasonable?
4.   Did R.A. No. 8180 violate §19, Article XII of the Constitution prohibiting
I.      THE FACTS monopolies, combinations in restraint of trade and unfair competition?
Petitioners assailed §5(b) and §15 of R.A. No. 8180, the III.   THE RULING
Downstream Oil Industry Deregulation Act of 1996.
[The Court GRANTED the petition. It DECLARED R.A. No. 8180
§5(b) of the law provided that “tariff duty shall be imposed . . . on unconstitutional and E.O. No. 372 void.]
imported crude oil at the rate of three percent (3%) and imported refined
petroleum products at the rate of seven percent (7%) . . .” On the other 1.    NO, §5(b) DID NOT violate the one title-one subject
hand, §15 provided that “[t]he DOE shall, upon approval of the President, requirement of the Constitution.
implement the full deregulation of the downstream oil industry not later
than March 1997. As far as practicable, the DOE shall time the full As a policy, this Court has adopted a liberal construction of the
deregulation when the prices of crude oil and petroleum products in the one title-one subject rule. [T]he title need not mirror, fully index or
world market are declining and when the exchange rate of the peso in catalogue all contents and minute details of a law. A law having a single
relation to the US dollar is stable . . .” general subject indicated in the title may contain any number of
provisions, no matter how diverse they may be, so long as they are not
Petitioners argued that §5(b) on tariff differential violates the inconsistent with or foreign to the general subject, and may be
provision of the Constitution requiring every law to have only one subject considered in furtherance of such subject by providing for the method
which should be expressed in its title. and means of carrying out the general subject.  [S]ection 5(b) providing
for tariff differential is germane to the subject of R.A. No. 8180 which is
They also contended that the phrases “as far as practicable,” the deregulation of the downstream oil industry. The section is supposed
“decline of crude oil prices in the world market” and “stability of the peso to sway prospective investors to put up refineries in our country and
exchange rate to the US dollar” are ambivalent, unclear and inconcrete make them rely less on imported petroleum.
since they do not provide determinate or determinable standards that can
guide the President in his decision to fully deregulate the downstream oil 2.    NO, §15 DID NOT violate the constitutional prohibition
industry. on undue delegation of power.
Petitioners also assailed the President’s E.O. No. 392, which Two tests have been developed to determine whether the
proclaimed the full deregulation of the downstream oil industry in delegation of the power to execute laws does not involve the abdication
February 1997.  They argued that the Executive misapplied R.A. No. of the power to make law itself. We delineated the metes and bounds of
8180 when it considered the depletion of the OPSF fund as a factor in the these tests in Eastern Shipping Lines, Inc. VS. POEA, thus:
implementation of full deregulation. There are two accepted tests to determine whether or not there is a
valid delegation of legislative power, viz: the completeness test and the
Finally, they asserted that the law violated §19, Article XII of the sufficient standard test. Under the first test, the law must be complete in all
Constitution prohibiting monopolies, combinations in restraint of trade its terms and conditions when it leaves the legislative such that when it
and unfair competition reaches the delegate the only thing he will have to do is to enforce it. Under
the sufficient standard test, there must be adequate guidelines or limitations
II.    THE ISSUES in the law to map out the boundaries of the delegate's authority and prevent
the delegation from running riot. Both tests are intended to prevent a total
1.    Did §5(b) violate the one title-one subject requirement of the transference of legislative authority to the delegate, who is not allowed to
Constitution?
step into the shoes of the legislature and exercise a power essentially of depletion of the OPSF fund.  The misappreciation of this extra factor
legislative. cannot be justified on the ground that the Executive department
considered anyway the stability of the prices of crude oil in the world
xxx                  xxx                  xxx market and the stability of the exchange rate of the peso to the dollar.  
By considering another factor to hasten full deregulation, the Executive
Section 15 can hurdle both the completeness test and the department rewrote the standards set forth in R.A. 8180.  The Executive
sufficient standard test.  It will be noted that Congress expressly provided is bereft of any right to alter either by subtraction or addition the
in R.A. No. 8180 that full deregulation will start at the end of March 1997, standards set in R.A. No. 8180 for it has no power to make laws.  To
regardless of the occurrence of any event.  Full deregulation at the end of cede to the Executive the power to make law is to invite tyranny, indeed,
March 1997 is mandatory and the Executive has no discretion to to transgress the principle of separation of powers.  The exercise of
postpone it for any purported reason.  Thus, the law is complete on the delegated power is given a strict scrutiny by courts for the delegate is a
question of the final date of full deregulation.  The discretion given to the mere agent whose action cannot infringe the terms of agency.   In the
President is to advance the date of full deregulation before the end of cases at bar, the Executive co-mingled the factor of depletion of the
March 1997. Section 15 lays down the standard to guide the judgment of OPSF fund with the factors of decline of the price of crude oil in the world
the President --- he is to time it as far as practicable when the prices of market and the stability of the peso to the US dollar.  On the basis of the
crude oil and petroleum products in the world market are declining and text of E.O. No. 392, it is impossible to determine the weight given by the
when the exchange rate of the peso in relation to the US dollar is stable. Executive department to the depletion of the OPSF fund.   It could well be
the principal consideration for the early deregulation.   It could have been
Petitioners contend that the words “as far as practicable,” accorded an equal significance.  Or its importance could   be nil.  In light
“declining” and “stable” should have been defined in R.A. No. 8180 as  of this uncertainty, we rule that the early deregulation under E.O. No. 392
they do not set determinate or determinable standards. The stubborn constitutes a misapplication of R.A. No.  8180.
submission deserves scant consideration.  The dictionary meanings of
these words are well settled and cannot confuse men of reasonable 4.    YES, R.A. No. 8180 violated §19, Article XII of the
intelligence.  Webster defines “practicable” as meaning possible to Constitution prohibiting monopolies, combinations in restraint of
practice or perform, “decline” as meaning to take a downward direction, trade and unfair competition.
and “stable” as meaning firmly established. The fear of petitioners that
these words will result in the exercise of executive discretion that will run [I]t cannot be denied that our downstream oil industry is operated
riot is thus groundless.   To be sure, the Court has sustained the validity and controlled by an oligopoly, a foreign oligopoly at that. Petron, Shell
of similar, if not more general standards in other cases. and Caltex stand as the only major league players in the oil market. All
other players belong to the lilliputian league. As the dominant players,
3.    YES, E.O. No. 392 was arbitrary and unreasonable. Petron, Shell and Caltex boast of existing refineries of various
capacities. The tariff differential of 4% therefore works to their immense
A perusal of section 15 of R.A. No. 8180 will readily reveal that it benefit. Yet, this is only one edge of the tariff differential. The other edge
only enumerated two factors to be considered by the Department of cuts and cuts deep in the heart of their competitors. It erects a high
Energy and the Office of the President, viz.: (1) the time when the prices barrier to the entry of new players. New players that intend to equalize
of crude oil and petroleum products in the world market are declining, the market power of Petron, Shell and Caltex by building refineries of
and (2) the time when the exchange rate of the peso in relation to the US their own will have to spend billions of pesos. Those who will not build
dollar is stable.   Section 15 did not mention the depletion of the OPSF as refineries but compete with them will suffer the huge disadvantage of
a factor to be given weight by the Executive before ordering full increasing their product cost by 4%. They will be competing on an
deregulation.  On the contrary, the debates in Congress will show that uneven field. The argument that the 4% tariff differential is desirable
some of our legislators wanted to impose as a pre-condition to because it will induce prospective players to invest in refineries puts the
deregulation a showing that the OPSF fund must not be in deficit. We cart before the horse. The first need is to attract new players and they
therefore hold that the Executive department failed to follow faithfully the cannot be attracted by burdening them with heavy disincentives. Without
standards set by R.A.  No. 8180 when it considered the extraneous factor
new players belonging to the league of Petron, Shell and Caltex,
competition in our downstream oil industry is an idle dream.

The provision on inventory widens the balance of advantage of


Petron, Shell and Caltex against prospective new players. Petron, Shell
and Caltex can easily comply with the inventory requirement of R.A. No.
8180 in view of their existing storage facilities. Prospective competitors
again will find compliance with this requirement difficult as it will entail a
prohibitive cost. The construction cost of storage facilities and the cost of Cruz vs Secretary of DENR
inventory can thus scare prospective players. Their net effect is to further
occlude the entry points of new players, dampen competition and Natural Resources and Environmental Law; Constitutional Law;
enhance the control of the market by the three (3) existing oil companies. IPRA; Regalian Doctrine

Finally, we come to the provision on predatory pricing which is GR. No. 135385, Dec. 6, 2000
defined as “. . . selling or offering to sell any product at a price
unreasonably below the industry average cost so as to attract customers FACTS:
to the detriment of competitors.” Respondents contend that this provision
Petitioners Isagani Cruz and Cesar Europa filed a suit for
works against Petron, Shell and Caltex and protects new entrants. The
ban on predatory pricing cannot be analyzed in isolation. Its validity is
prohibition and mandamus as citizens and taxpayers, assailing the
interlocked with the barriers imposed by R.A. No. 8180 on the entry of constitutionality of certain provisions of Republic Act No. 8371,
new players. The inquiry should be to determine whether predatory otherwise known as the Indigenous People’s Rights Act of 1997
pricing on the part of the dominant oil companies is encouraged by the (IPRA) and its implementing rules and regulations (IRR). The
provisions in the law blocking the entry of new players. Text- petitioners assail certain provisions of the IPRA and its IRR on the
writer Hovenkamp gives the authoritative answer and we quote: ground that these amount to an unlawful deprivation of the State’s
xxx                   xxx                   xxx ownership over lands of the public domain as well as minerals and
The rationale for predatory pricing is the sustaining of losses today other natural resources therein, in violation of the regalian doctrine
that will give a firm monopoly profits in the future. The monopoly profits will embodied in section 2, Article XII of the Constitution.
never materialize, however, if the market is flooded with new entrants as
soon as the successful predator attempts to raise its price. Predatory pricing
will be profitable only if the market contains significant barriers to new entry. ISSUE:
Do the provisions of IPRA contravene the Constitution?
As aforediscussed, the 4% tariff differential and the inventory
requirement are significant barriers which discourage new players to HELD:
enter the market. Considering these significant barriers established by No, the provisions of IPRA do not contravene the Constitution.
R.A. No. 8180 and the lack of players with the comparable clout of Examining the IPRA, there is nothing in the law that grants to the
PETRON, SHELL and CALTEX, the temptation for a dominant player to ICCs/IPs ownership over the natural resources within their
engage in predatory pricing and succeed is a chilling reality. Petitioners’ ancestral domain. Ownership over the natural resources in the
charge that this provision on predatory pricing is anti-competitive is not ancestral domains remains with the State and the rights granted by
without reason. the IPRA to the ICCs/IPs over the natural resources in their
ancestral domains merely gives them, as owners and occupants of
the land on which the resources are found, the right to the small
scale utilization of these resources, and at the same time, a priority
in their large scale development and exploitation.
Additionally, ancestral lands and ancestral domains are not part of                 KKK insisted to stay on the cot and explained that she
the lands of the public domain. They are private lands and belong had headache and abdominal pain due to her forthcoming
to the ICCs/IPs by native title, which is a concept of private land menstruation. Her reasons did not appease him and he got
title that existed irrespective of any royal grant from the State. angrier. He rose from the bed, lifted the cot and threw it against
However, the right of ownership and possession by the ICCs/IPs of the wall causing KKK to fall on the floor. Terrified, KKK stood
their ancestral domains is a limited form of ownership and does up from where she fell, took her pillow and transferred to the
not include the right to alienate the same.  bed.
PEOPLE OF THE PHILIPPINES vs. EDGAR JUMAWAN                 The accused-appellant then lay beside KKK and not
before long, expressed his desire to copulate with her by tapping
FACTS: his fingers on her lap. She politely declined by warding off his
hand and reiterating that she was not feeling well.
                Accused-appellant and his wife, KKK, were married and
have four children.                 The accused-appellant again asserted his sexual
yearning and when KKK tried to resist by holding on to her
                On February 19, 1999, KKK executed a Complaint- panties, he pulled them down so forcefully they tore on the
Affidavit, alleging that her husband, the accused-appellant, sides. KKK stayed defiant by refusing to bend her legs.
raped her at 3 :00 a.m. of December 3, 1998 at their residence in
Cagayan de Oro City, and that on December 12, 1998, the                 The accused-appellant then raised KKK’s daster,41
accused-appellant boxed her shoulder for refusing to have sex stretched her legs apart and rested his own legs on them. She
with him.a tried to wrestle him away but he held her hands and succeeded
in penetrating her. As he was carrying out his carnal desires,
                As to the charge of rape according to KKK continued to protest by desperately shouting: “Don ‘t do
KKK, conjugal intimacy did not really cause marital problems that to me because I’m not feeling well.”
between her and the accused-appellant. It was, in fact, both
frequent and fulfilling. He treated her well and she, of course,                 Accused raised the defense of denial and alleged that
responded with equal degree of enthusiasm. However, in 1997, KKK merely fabricated the rape charges as her revenge because
he started to be brutal in bed. He would immediately remove her he took over the control and management of their businesses,
panties and, sans any foreplay, insert her penis in her vagina. and to cover up her extra-marital affairs.
His abridged method of lovemaking was physically painful for
her so she would resist his sexual ambush but he would threaten ISSUE:
her into submission.
                Whether or not there can be a marital rape.
                One night, in the spouse’s bedroom, KKK changed into
a daster and fixed the matrimonial bed but she did not lie HELD:
thereon with the accused-appellant and instead, rested
separately in a cot near the bed. Her reclusive behavior                 YES. The Supreme Court held that husbands do not
prompted him to ask angrily: “Why are you lying on the cot?”, have property rights over their wives’ bodies. Sexual intercourse,
and to instantaneously order: “You transfer here to our bed.” albeit within the realm of marriage, if not consensual, is rape.
A marriage license should not be viewed as a license for a                 The Court also ruled against the application of implied
husband to forcibly rape his wife with impunity. A married consent theory which was raised by the accused. The accused
woman has the same right to control her own body, as does an argued that consent to copulation is presumed between
unmarried woman. cohabiting husband and wife unless the contrary is proved.

Lastly, the human rights of women include the right to have                 According to the Court, it is now acknowledged that
control over and decide freely and responsibly on matters rape, as a form of sexual violence, exists within marriage. A man
related to their sexuality, including sexual and reproductive who penetrates her wife without her consent or against her will
health, free of coercion, discrimination and violence. Women do commits sexual violence upon her, and the Philippines, as a
not divest themselves of such right by contracting marriage for State Party to the CEDAW and its accompanying Declaration,
the simple reason that human rights are inalienable. defines and penalizes the act as rape under R.A. No. 8353.

Violation of equal protection clause

                The Court ruled that to treat marital rape cases


differently from non-marital rape cases in terms of the elements
that constitute the crime and in the rules for their proof,
infringes on the equal protection clause.

                The Court found that there is no rational basis for


distinguishing between marital rape and non-marital rape. The
various rationales which have been asserted in defense of the
exemption are either based upon archaic notions about the
consent and property rights incident to marriage or are simply
unable to withstand even the slightest scrutiny.

                The Court declared the marital exemption for rape in


the New York statute to be unconstitutional.

                Said exemption states that a husband was endowed


with absolute immunity from prosecution for the rape of his
wife. The privilege was personal and pertained to him alone. He
had the marital right to rape his wife but he will be liable when
he aids or abets another person in raping her.

                Moreover, Section 1 of RA 8353 penalizes the crime


without regard to the rapist’s legal relationship with his victim.

Implied consent theory untenable

You might also like