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ADMINISTRATIVE LAW

(2018)
NOEL OSTREA, ATENEO COLLEGE OF LAW
KEY CONCEPT OUTLINE

▶ Definition* ▶ Procedural due


▶ AAs (administrative process in
agencies) & powers administrative
▶ Quasi-legislative cases
power
▶ Non-delegation of ▶ Doctrine of primary
legislative power and jurisdiction
its exceptions
▶ Doctrine of
▶ Quasi-judicial power
exhaustion of
administrative
BAR SYLLABUS, ADMI LAW

▶ General Principles ▶ Administrative


▶ Administrative Agencies Appeal and
▶ QL/Rule-Making Power Review
▶ Kinds of Administrative
R&R ▶ Administrative Res
▶ Requisites for Validity Judicata
▶ QJ/Adjudicatory Power
▶ Administrative Due
▶ Fact-Finding,
Process Investigative,
Licensing and
Rate-Filing Powers
OTHER DEFINITION

▶ It is the study of the law governing


administrative agencies and
officials.
WHAT IS ADMINISTRATIVE LAW ?

▶ It is that branch of modern law under


which
▶ The Executive Branch of the
government, acting in a quasi-
legislative or quasi-judicial capacity
▶ Interferes with the conduct of the
individual
▶ To promote the well-being of the
community. (Dean Roscoe Pound)
ADMINISTRATIVE
AGENCIES
HOW ARE AAs CREATED?

1. The Constitution
2. Law, or
3. By authority of law
EXAMPLES of AAs (APPEAL TO CA)1

▶ CSC2 ▶ NEA
▶ CBAA ▶ ERB
▶ SEC ▶ NTC
▶ OP ▶ DAR
▶ LRA ▶ GSIS
▶ SSS ▶ ECC
▶ CAB ▶ IC
RATIONALE

COMPLEXITY REQUIRES
SPECIALIZATION
RATIONALE

▶ Due to the growing complexity of modern


society, it has become necessary to create
more and more administrative bodies to help
[government] in the regulation of its ramified
activities. Specialized in the particular field
assigned to them, they [administrative
agencies] can deal with the problems thereof
with more expertise and dispatch than can be
expected from the legislature or the courts of
justice.
RATIONALE (2)

▶ This is the reason for the increasing


vesture of quasi-legislative and
quasi-judicial powers in what is not
unreasonably called the fourth
department of the government.
(Solid Homes, Inc. v. Payawal)1
ADVANTAGES & DISADVANTAGES

1. Expertise in highly ▶ Narrow vision and


technical fields arrogance
2. Efficiency ▶ Trampling of
3. Independence individual rights
▶ Lack of
accountability for
actions and
lawlessness
AA BODIES, RATIONALE/TYPES1
1. Gratuity, grant or special
privilege ▶ Board of Pensions for
2. Government functions Veterans, PVA
3. Business service for public
4. Regulating business affected ▶ BID/BSI, CSC, BIR, BSP
with public interest ▶ Philpost, MWSS, PNR, CAB
5. Regulating businesses under ▶ Fiber Inspection Board, IPO,
police power of State IC

6. Adjust controversies due to


strong social policy
▶ SEC, MTRCB, PRC

▶ NLRC, DOLE, SSS, BLS


ADMI POWERS, IN GENERAL

▶ The term administrative power or


administrative function is a convenient
rather than a technical term.
▶ It is any power not explicitly allocated in
the Constitution, although by nature it is
legislative, executive or judicial.
▶ It involves the exercise of judgment and
discretion, particularly when referring to
the power to regulate and control.
NON-DELEGABILITY

▶ Potestas delegata non potest


delegari
▶ A delegated power constitutes not
only a right but a duty to be
performed by the delegate through
the instrumentality of his own mind
▶ Not to be performed through the
intervening mind of another1
NON-DELEGABILITY (2)

▶ The power to whose judgment, wisdom


and patriotism this high prerogative has
been entrusted cannot relieve itself of
the responsibility by choosing other
agencies upon which the power shall
be delegated. Nor can it substitute the
judgment, wisdom and patriotism of
any other body for those to which
alone/ the people have seen fit to
confide this sovereign trust.
(US v. Barrias, 1 Phil. 327 [1908].)
NON-DELEGABILITY (3)

The legislature neither must nor can


transfer the power of making laws
to anybody else
or place it anywhere but where the
people have.
--Locke
EXCEPTIONS TO NON-DELEGABILITY

▶ When permitted by the Constitution


• The emergency powers clause (Art. VI); the flexible tariff clause (Art. VI);
delegation of revenue powers to LGs (Art. X); rule making power of SC
(Art. VIII) and the ConComs (Art. IX)
▶ Local governments

▶ Administrative agencies; Rule-


making power with the force
and effect of law
OTHER AA POWER LIMITATIONS

Validity of granting statute


▶ Completeness1 and sufficient standard2
tests
▶ Constitutional protections
▶ Due process and equal protection
considerations
▶ Notice (by way of publication)
▶ Notice (by way of public hearing)
▶ Statutory requirements for regulations
➢ Reasonableness! (Again.)
BAR Q

(1.) The two accepted tests to determine whether or not there is a


valid delegation of legislative power are the Completeness Test and
the Sufficient Standard Test. Explain each. (4%) (2005 Bar)
ADMINISTRATIVE ORGANIZATION

▶ Office of the ▶ Private Office


President ▶ Executive Office
▶ Staff Support
System/PMS
▶ PAs (Presidential
Assistants or
Advisers)
ADMIN ORGANIZATION (2)

Attached
▶ With Prez as Chair
▶ ▶ Under Prez’s supervision and
Executive control
Under administrative supervision of
Agencies

OP
▶ Attached to OP for policy and
proper coordination
▶ Not placed under any other
department
ASPECTS OF PREZ REORGANIZATION

▶ Restructure OP by ▶ Transfer agency


abolishing, under OP to other
consolidating or departments or
merging units or agencies or vice-
transferring functions versa1
▶ Transfer OP function
to any other
department or
agency or vice-versa
GOVT ORGANIZATION/AGENCY1,2

What is a:

▶ Department? ▶ An executive department


created by law
▶ Bureau? ▶ Any principal subdivision or
unit of any department
▶ May be line or staff
▶ Regional Office? ▶ Established according to
law defining field service
areas
▶ District Office? ▶ Established only in cases of
clear necessity
GOCC
▶ Any agency organized
May perform governmental or
as a stock or non-stock

proprietary functions, or both
corporation, vested
with functions relating
to public needs
whether governmental
or proprietary in nature
and owned by the
gov’t either directly or
thru instrumentalities or
ADMINISTRATIVE SUPERVISION

▶ 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
them, the former may take such action
or steps as prescribed by law to make
them perform their duties”.1
▶ Distinguished from power of control2 or power of review
PREZ POWER TO REORGANIZE1

Express power; under Section 31 of AC872,

“[T]he President, x x x in order to


achieve simplicity, economy and effici
ency, shall have the continuing
authority to reorganize the
administrative structure of the Office of
the President." For this purpose, he may
transfer the functions of other
Departments or Agencies to the Office
of the President.
PREZ POWER TO REORGANIZE1

Only Section 31 of AC87 gives the President a virtual free hand in


dealing with the internal structure of the OP Proper by allowing him
to take actions as extreme as abolition, consolidation or merger of
units, apart from the less drastic move of transferring functions and
offices from one unit to another.
PICHAY v OFC DESLA: the PAGC

Clearly, the abolition of the PAGC and


the transfer of its functions to a division
specially created within the ODESLA is
properly within the prerogative of the
President under his continuing
delegated legislative authority to
reorganize his own office.
TYPES OF POWERS OF ADMI AGENCIES
SCOPE OF ADMI POWERS

▶ Express
▶ Implied (by
necessary
implication)
▶ Inherent
powers are
excluded
NATURE OF ADMI POWERS

1. Jurisdiction is
limited
2. Construction is
broad
3. Limited or
defined by law
POWERS

1. Quasi-legislative power
2. Quasi-judicial power
3. Others
▶ Former SOJ Neptali GONZALES has referred to these as “incidental”
powers
▶ E.g. Investigation, supervising, prosecuting, advising and informally
adjudicating
OTHER POWERS

Determinativ Investigatory
e
DETERMINATIVE POWERS

1. Enabling 1. Licensing—PERMITS the


doing of an act which the
2. Directing law undertakes to regulate
and which would be
3. Dispensing unlawful without gov’t
approval
4. Summary 2. Involves the correcting
5. Equitable powers of a public utility
board or equivalent; powers
of assessment under
revenue laws, etc.
DETERMINATIVE POWERS 2

Dispensing
(3. 3. The authority to exempt from or relax
a general prohibition, or authority to
4. Summary relieve from an affirmative duty.1
4. Those that apply compulsion or force
5. Equitable) against a person or property to
effectuate a legal purpose without a
judicial warrant to authorize such
action. 2
5. To determine the law upon a
particular state of facts. 3
SCOPE OF INVESTIGATORY POWERS

▶ To initiate ▶ To require the


attendance of
▶ To conduct
witnesses, giving of
▶ To inspect and testimony and the
examine production of evidence
▶ To prescribe forms ▶ Technical rules of
and methods of procedure are not
accounts strictly applied.
▶ Right to counsel is not
imperative.
QUASI-LEGISLATIVE POWER
QUASI-LEGISLATIVE POWER

▶ Rule-making power
▶ The power to make rules and
regulations which results in
delegated legislation
▶ Valid regulations have the force and
effect of law
REQUISITES OF Q-L POWER

1. Issued by authority of valid law


2. Within the scope and purview of law1
3. Reasonable
➢ Must be issued within the confines of
the granting statute
➢ In accord with prescribed procedure
➢ Subject to limitations such as non-delegability of power and the separation
of powers2,3
LEGAL EFFECT OF ADMI REGS

A valid rule or regulation duly


promulgated by an administrative
agency has the force and effect of law.
LIMITATIONS

▶ Must be valid (not inconsistent with


law or the Constitution)
▶ Cannot amend, alter, modify,
extend, supplant, enlarge, restrict or
limit the provisions or coverage of
the law
▶ Within powers of AA (not ultra vires)
QUASI-LEGISLATIVE POWER, 3 TYPES (ISC)

▶ Interpretative rule1
▶ Supplementary or
detailed ??
legislation2
▶ Contingent
legislation3,4
INTERPRETATIVE RULE

▶ Promulgated to interpret, clarify or


explain statutory regulations
(administrative construction)
▶ Resemble judicial adjudication
▶ Entitled to great weight and respect
but are at best advisory
▶ Need not be published
▶ No need for a hearing
INTERPRETATIVE RULE (2)

▶ The application of legislative rules to


particular facts
▶ Expected to apply to a general
category of cases of that type
▶ An interpretative rule is improper if it
sets out what is effectively a new
requirement
TEST: INTERPRETATIVE RULE

▶ Correctness--
▶ Does the rule correctly
interpret the statute?
TESTS, SUPPLEMENTARY
(or delegated) LEGISLATION

1. The law has delegated power to


the agency to adopt the rule, and
2. It provides that the rules
promulgated by the agency within
its delegated power have
authoritative force.
▶ These refer to rules that are “more” than interpretative: supplementing
the statute, filling-in or “law-making”
INTERPRETATIVE v SUPPLEMENTARY

▶ Interpretative ▶ Subordinate
rules are the legislation
product of ▶ Create new
interpretation of provisions that
the law have the effect of
law
▶ Necessarily
▶ Require an express
incidental to delegation of law
administration of
▶ May provide for
CONTINGENT LEGISLATION

▶ Congress may provide that a law shall


take effect upon the happening of
future specified contingencies.
▶ The power to determine when this has
occurred is left to some other person or
body.
▶ Findings of AA here involve exercise of
discretion (akin to nature of rule-
making)
CONTINGENT LEGISLATION, EXAMPLE

Regional Wage Orders


issued by a RTWPB
are examples of
subordinate
legislation. 1
SOME CASE EXAMPLES

▶ RAC (law) provides ➢ Uphold law. (Rule invalid)


(Manuel v GAO)
that leaves are
cumulative. CSC
➢ It was never intended that
Rule provides a standard would be fixed
otherwise. which would limit the
manufacture of cigars for
▶ Act 2613 authorizes export to certain provinces
Collector (IR) to of the Islands. That would
amount to discrimination
promulgate rules for and class legislation. (Olsen
the “classification, & Co v Aldanese)
marking and packing
of tobacco”. CIR
EXAMPLES (2)

▶ Customs MO ▶ There is no law giving


authority to the
provides that, as in Commissioner of Customs
protest cases, to review and revise
decisions of unappealed decisions in
seizure cases. The logical
Collector of inference is that the
Customs WON lawmakers did not deem it
appealed are necessary or advisable. (Sy
Man v Fabros)
subject to review by
Insular Collector
(now Commissioner)
EXAMPLES (3)

▶ Director of ▶ The provisions of Sec. 78 of


the Patent Law (at the
Patents required time) are different from the
by circular an provisions of the US Patent
Law as regards authority to
exam to determine the
determine who qualifications of those
allowed to practice. (Phil.
are qualified to Lawyers’ Assn v Agrava)
practice as
patent attorneys
before the PPO
(Phil. Patent
Office)
EXAMPLES (4)

▶ As prayed for, ▶ The fixing of rates is


essentially a legislative
President MARCOS power. And EO 1088 is in
issued EO 1088 the nature of a law. As
providing for uniform he (Prez) could delegate
and modified rates the rate-fixing power to
the PPA, so he can
for pilotage services exercise it in specific
(increasing instances without
substantially the rates withdrawing the power
of the PPA. (Phil. Inter-
of the existing island Shipping v CA)
pilotage fees
previously fixed by
PRESIDENTIAL ORDINANCE POWER

▶ Rules of a general or ▶ EOs


permanent character
▶ MOs
▶ Matters of subordinate or AOs
temporary interest

▶ Relate to particular ▶ Proclamations


aspects of government ▶ Memo Circulars
operations
▶ Fixing a date or declaring
a status or condition
▶ Matters relating to
internal administration
ADMI CIRCULARS v ORDERS1

▶ Prescribe policies, ▶ Directed (internally) to


rules and regulations particular offices,
and procedures officials or employees,
▶ Apply to individuals concerning matters
and organizations such as assignments,
outside government office detail or transfer
▶ Supplement the law ▶ For observance and
or provide means for compliance
carrying them out.
DUE PROCESS; UPHOLDING OWN
REGS
▶ Administrative agencies are vested with two basic powers, the
quasi-legislative and the quasi-judicial. The first enables them to
promulgate implementing rules and regulations (IRR), and the
second enables them to interpret and apply such regulations.
▶ Examples abound: the BIR adjudicates on its own
revenue regulations, the CB/BSP on its own circulars,
the SEC on its own rules, as so too do the PPO (now
IPO) and the VRB (now OMB) and the Civil Aeronautics
Administration and the Department of Natural
Resources and so on ad infinitum on their respective
administrative regulations.
DUE PROCESS: OWN REGS (2)

Such an arrangement has been accepted as a fact of life of modern governments and
cannot be considered violative of due process as long as the cardinal rights laid down by
Justice Laurel in the landmark case of Ang Tibay v. Court of Industrial Relations are
observed.1
VOID FOR VAGUENESS DOCTRINE

▶ It is a statute that fails ▶ It is so indefinite


to give a person of that it encourages
ordinary intelligence arbitrary and erratic
fair notice that his arrests.
contemplated
conduct is forbidden.
▶ Places a person in
jeopardy of an
offense without fair
warning.
WHEN IS A STATUTE “VAGUE”?

When:
▶ It violates due process
▶ It lacks comprehensible standards that “men of common
intelligence must necessarily guess as to its meaning and differ in its
application
▶ It leaves law enforces unbridled discretion to carry out its provisions
▶ It must be “utterly vague” in that it cannot be clarified by saving

clause or construction .
QUASI-JUDICIAL POWER
QUASI-JUDICIAL POWER

▶ Administrative
adjudicatory power
▶ Power to hear and
determine or ascertain
facts and apply the rule
of law to the
ascertained facts
▶ Any power of an
administrative agency
other than rule-making
but including licensing
QA v. QJ Power

▶ Issuance of rules and ▶ Refers to end


regulations
product: Order,
▶ Of general award or decision
application

▶ Of particular
▶ Generally
prospective, application
applicable in the
future
▶ Present
CAN REGS IMPOSE PENAL
SANCTIONS?
▶ YES, if the:

• Law provides the violations are


punishable
• Law provides the penalty
• There is publication
▶ Recall that the fixing of penalties is a legislative power.
▶ “The spring cannot rise higher than its source.”
▶ Since the fixing of penalties is a legislative power, this
power cannot be further delegated.
COMM’R OF INT REV v. CA

▶ “Champion”, “Hope” and “More” cigarettes


▶ Originally, these were classified as foreign
brands, since they were registered as such with
the World Tobacco Directory
▶ Subsequently, Fortune renamed the brands,
“Hope Luxury” and “More Premium” and
showed Champion to be an original brand
registered locally, and therefore a local brand.
COMM’R OF INT REV v. CA (2)

▶ Two (2) days before the effectivity of RA 76541, RMC 37-93 was
issued reclassifying said brands as “locally manufactured cigarettes
bearing foreign brands” and subjecting them to increased ad
valorem taxes as such at the increased rate of 55%
▶ Previously, they were taxed from 15% to 45% as local brands
COMM’R OF INT. REV. V. CA1

ISSUES:

▶ Is RMC 37-93 an interpretative rule? (Is prior notice, hearing and


publication required?)
▶ Is RMC 37-93 discriminatory? (Does it offend uniformity of taxation?)
COMM’R OF INT. REV. V. CA
What is a legislative rule? ▶ It is in the nature of subordinate
legislation, designed to
implement primary legislation
by providing the details thereof.
▶ In the same way that laws must
have the benefit of public
hearing, it is generally required
What is required? that before a legislative rule is
adopted there must be a
hearing.
COMM’R OF INT. REV. V. CA
What is an interpretative rule intended to ▶ Interpretative rules are designed to provide
accomplish? guidelines to the law which the
administrative agency is in charge of
enforcing.
▶ Nothing further than its bare issuance.
What is required?
COMM’R OF INT. REV. V. CA:
Quasi-Legislative Power1
What is Q-L power?
It is the power to make rules and regulations which results in delegated
legislation that is within the confines of the granting statute and the
doctrine of non-delegability and separability of powers.
COMM’R OF INT. REV. V. CA;
3 Types of Q-L POWER

▶ Interpretative Rule
▶ Supplementary or detailed legislation
▶ Contingent legislation
COMM’R OF INT. REV. V. CA

The purpose or objective of an interpretative rule is merely to construe


the statute being administered. It purports to do no more than
interpret the statute. Simply, the rule tries to say what the statute
means. Generally, it refers to no single person or party in particular
but concerns all those belonging to the same class which may be
covered by the said interpretative rule.
COMM’R OF INT. REV. V. CA

It need not be published and neither is a hearing required since it is


issued by the administrative body as an incident of its power to
enforce the law and is intended merely to clarify statutory provisions
for proper observance by the people.
COMM’R OF INT. REV. V. CA;
Quasi-Judicial Power
What is QJ power?

It is the power to hear and determine questions of fact to which the


legislative policy is to apply and to decide in accordance with the
standards laid down by the law itself in enforcing and administering
the same law.
COMM’R OF INT. REV. V. CA;
Quasi-Judicial Power
When does an administrative body exercise QJ
power?
The administrative body exercises its quasi-judicial
power when it performs in a judicial manner an
act which is essentially of an executive or
administrative nature, where the power to act
in such manner is incidental to or reasonably
necessary for the performance of the
executive or administrative duty entrusted to it.
COMM’R OF INT. REV. V. CA;
Quasi-Judicial Power

When an administrative proceeding is quasi-judicial in character,


notice and fair open hearing are essential to the validity of the
proceeding.
COMM’R OF INT. REV. V. CA;
Conclusion: Quasi-Judicial Power
In issuing RMC 37-93, petitioner Commissioner of Internal Revenue was
exercising her quasi-judicial or administrative adjudicatory power.
She cited and interpreted the law, made a factual finding, applied
the law to her given set of facts, arrived at a conclusion, and issued
a ruling aimed at a specific individual.
Consequently, prior notice and hearing are required.
APPLICATION
PROBLEM: EO1, THE PHTC 2016

1. Is the PHTC—the Presidential Honesty and Trust Commission—valid?


2. Is it prosecutorial?
3. Can it hire and deputize members of the IBP, licensed
accountants, paralegals and other resource persons? Does this
affect its validity?
BREATHE.
ORGANIZE.
OUTLINE
What is the basis of the power to create an AA-- an
investigative Commission?
(Applicable cases are exemplars only. Pound on law/principles first.)

▶ Is it inherently legislative? ▶ Is it based on separation of powers?


▶ Is it based on a valid delegation of ▶ Is it based on control & faithful execution of
legislative power? all laws?
▶ Is it based on a valid enabling statute?
OUTLINE 2
What kind of power was given to the PHTC?

▶ Is it investigative? ▶ Are subpoena and contempt powers


exclusively judicial?
▶ What is investigative power? (Is it
prosecutorial?) ▶ Is it a staffing power?
▶ What purpose does it serve? ▶ Can government utilize private persons?

▶ Is it exclusive?
PUBLICATION
PUBLICATION: TANADA v TUVERA1

As early as 1986, this Court in Tanada v. Tuvera enunciated that publication is indispensable
in order that all statutes, including administrative rules that are intended to enforce or
implement existing laws, attain binding force and effect, to wit: (next slide)
TANADA v TUVERA (2)

We hold therefore that all statutes, including those of local


application and private laws, shall be published as a
condition for their effectivity, which shall begin fifteen
days after publication unless a different effectivity date is
fixed by the legislature.
TANADA (3)

Covered by this rule are presidential decrees and executive orders promulgated by the President in
the exercise of legislative powers whenever the same are validly delegated by the legislature or, at
present, directly conferred by the Constitution.
TANADA (4):
PUBLICATION, ADMI RULES
Administrative rules and regulations must also be published if
their purpose is to enforce or implement existing law
pursuant also to a valid delegation.

▶ However, interpretative regs, those merely internal in nature or LOIs need not be
published.1
PUBLICATION; ADMI CODE

Filing. (1) Every agency shall file with the University of the Philippines
Law Center three (3) certified copies of every rule adopted by it.
Rules in force on the date of effectivity of this Code which are not
filed within three (3) months from the date shall not thereafter be the
basis of any sanction against any party or persons.1
PUBLICATION AND
RATE-FIXING; ADMI CODE
Section 9, Chap. II, Bk. VII entitled, Public Participation--
(1) If not otherwise required by law, an agency shall, as far as
practicable, publish or circulate notices of proposed rules and
afford interested parties the opportunity to submit their views
prior to the adoption of the rule.
(2) In the fixing of rates, no rule or final order shall be valid unless
the proposed rates shall have been published in a newspaper
of general circulation at least two (2) weeks before the first
hearing thereon.
(3) In case of opposition, the rules on contested cases shall be
observed.
APPLICATION

In 1991, due to published stories on abuses of Filipino DHs in HK, the


DOLE issued a Department Order temporarily suspending the
recruitment of Filipino DHs bound for HK by private employment
agencies.
Citing Tanada v Tuvera and Art. 2, NCC, the Order was later struck
down for lack of proper publication.
APPLICATION (2)

In 1989, pursuant to a Memorandum of Understanding (MOU)


between the Philippines and the PROC, the PITC (the Phil. Int’l.
Trading Corp.) issued an Administrative Order relating to
socialist countries requiring applications for importations from
China (PROC) to be accompanied by a viable and
confirmed export program of Philippine products to the PROC.
Two export companies were later barred from importing goods
from the PROC. They assailed the Order. And the AO was
later invalidated for lack of publication.1
RATE-FIXING

When the administrative agency concerned,


respondent NTC in this case, establishes a rate,
its act must both be non-confiscatory and must
have been established in the manner
prescribed by the legislature; otherwise, in the
absence of a fixed standard, the delegation of
power becomes unconstitutional.
▶ The rate must be reasonable and just.
▶ Reasonableness may be implied1
ALCUAZ (2)

Is rate-fixing QA or QJ?

▶ R: Order need not be preceded by a hearing


because the assailed order is merely
interlocutory.
▶ R: It is an incident in the ongoing proceedings
for petitioner’s application for a CPC
▶ Petitioner is not the only primary source of data
ALCUAZ (3)

▶ When rate applies to a particular person, it is an


exercise of QJ power (both in case and citing
Vigan Electric1)
▶ Notice and hearing are not generally essential to
the validity of an administrative action. (Q-A
power)
▶ Where it (agency) acts in a judicial or QJ manner,
the person whose rights or property may be
affected is entitled to notice and hearing.
▶ Principle applies even if the rate-fixing order is
temporary.
RATE-FIXING

Although the rule-making power and even the


power to fix rates x x x may partake of a
legislative character, such is not the nature of
the order complained of. It is predicated upon
a finding of fact.
In making said finding of fact, respondent
performed a function partaking of a QJ
character the valid exercise of which demands
previous notice and hearing.
PUBLICATION

WHEN ESSENTIAL WHEN NOT ESSENTIAL


1. Administrative regs of general application 1. Interpretative regs
2. Administrative regs which are penal in nature 2. Internal rules and regs governing the
personnel of the administrative agency
3. LOIs issued by superiors concerning guidelines
WHERE NOTICE AND HEARING NOT
ESSENTIAL
1. Grant of provisional authority for 4. Summary abatement of a nuisance
increased rates or to engage in per se
a particular line of business
5. Preventive suspension of a public
2. Summary proceedings for officer or employee
distraint and levy
3. Cancellation of passport
POWER OF
ADMINISTRATIVE REVIEW
▶ Power of supervision only, not control
▶ It means “overseeing, or the power or authority of an officer to see
that their subordinate officers perform their duties”
▶ Does not allow the supervisor to annul the acts of the subordinate
▶ Only to see to it that the subordinate performs his duties in
accordance with law1
DE LEON CASE1

While there is no disputing the authority of


administrative superiors to reverse the findings of
their subordinates, this power must be exercised
sparingly and only upon a clear showing of error.
Lacking such law, the decision of lower administrative
officials should be sustained, if only because they
have closer access to the problem sought to be
resolved and have the direct opportunity to
question the parties and their witnesses and to
assess the evidence first-hand.
DOCTRINE OF PRIMARY
JURISDICTION

▶ Courts cannot or will not determine a controversy


involving a question which is within the jurisdiction
of the administrative tribunal prior to the resolution
of that question by the administrative tribunal,
where the question demands the exercise of sound
administrative discretion requiring the special
knowledge, experience and services of the
administrative tribunal to determine technical and
intricate matters of fact.1,2
▶ Effect: When invoked, suspend the pending case.
RATIONALE

▶ Avoid delay and unnecessary expenses


▶ Give agency chance to correct itself
▶ Principle of comity and convenience
▶ Separation of powers
DOCTRINE OF EXHAUSTION OF ADMIN
REMEDIES
▶ Where a claim is cognizable in the first instance by an administrative agency,
judicial interference shall be withheld until the administrative process has been
completed.
▶ Emphasis is on the existence of an available remedy
EXCEPTIONS TO EXHAUSTION*

▪ Estoppel ▪ Judicial intervention is


▪ Challenged admi act is urgent
patently illegal ▪ Application of doctrine
▪ Unreasonable delay or causes grave and
official inaction irreparable damage
▪ Amount is relatively small ▪ Controverted acts violate
to make rule impractical due process
▪ A purely legal question is ▪ Mootness
involved ▪ No other plain, speedy
and adequate remedy
▪ Strong public interest1
RATIONALE

▶ Sound practice and policy


▶ Ensures an orderly procedure which favors a
preliminary sifting process, particularly within
the competence of the administrative agency.
▶ Underlying principle is the presumption that the
administrative agency, if given a chance to
pass upon the matter, will decide correctly.1
▶ Promotes administrative autonomy and responsibility
▶ Respects procedures of AA
ADD’L RATIONALE

▶ Economy; Assures economical use of judicial and administrative


resources
EFFECT

▶ Not jurisdictional. May be waived.


▶ If upheld, there is a lack of cause of action which is fatal to the
cause of action.
“EXHAUSTION” v.
PRIMARY JURISDICTION1,2
▶ The administrative agency has exclusive ▶ Both the administrative agency and the
jurisdiction judiciary have concurrent jurisdiction
▶ Judicial interference is withheld until the ▶ The agency only has primary jurisdiction
administrative process has been
▶ Thus, court yields to agency in the first
completed
instance.
BAR Q

▶ Explain the doctrine of exhaustion of


administrative remedies
▶ Give at least three (3) exceptions to its
application (5%) (2000 Bar)
OTHER DOCTRINES
ADMINISTRATIVE PROCEDURE
AND JUDICIAL REVIEW
REQUISITES FOR ADJUDICATION

Jurisdiction
Notice, and
Hearing
PROCEEDINGS
LIBERALLY CONSTRUED
Administrative proceedings are not bound by the rigid requirements of
the Rules of court. The important consideration is that both parties
were afforded an opportunity to be heard and they availed
themselves of it to present their respective positions on the matters in
dispute.1

Proceedings are governed by their own rules of


procedure which are to be liberally construed.2
ADMINISTRATIVE DUE PROCESS1
7 aspects
▶ Right to hearing4 ▶ Decision is based on evidence
▶ Tribunal must consider the evidence presented
presented
▶ Decision must be supported
▶ Board/judges acted on their
▶ Evidence must be substantial2
own independent
consideration
▶ Decision rendered so parties
know the various issues
involved.3,4,5
ADMI DUE PROCESS; TAKING OF
TESTIMONY

▶ Must the taking of testimony or the presentation of evidence be before the


same officer who will decide the case?
▶ NO.
• Not an indispensable requirement of administrative due process
• What is indispensable is that the party has a reasonable opportunity to present his
case and to be heard; to submit evidence, and that
• The decision is supported by the evidence on record, which must be substantial.
JUDICIAL REVIEW

▶ Judicial power includes the duty of the courts of justice


to settle actual controversies involving rights which are
legally demandable and enforceable, and to determine
whether or not there has been a grave abuse of
discretion amounting to lack or excess of jurisdiction
on the part of any branch or instrumentality of the
government. (Emphasis supplied) (Second Paragraph
(new), Sec. 1, Art. VIII, 1987 Constitution.)
REQUISITES FOR JUDICIAL REVIEW

▶ The administrative action was ▶ Doctrine of finality of


FULLY completed (therefore, final, administrative action1
but not res judicata)
▶ Generally, subject to the rule, all
administrative remedies were
exhausted.
▶ Doctrine of exhaustion of
administrative remedies2
SCOPE OF JUDICIAL REVIEW
Of law ▶ Fully reviewable
Of fact ▶ Must be based on substantial evidence

Of discretion ▶ Must not be arbitrary or capricious


▶ Courts will not generally substitute their discretion for that of
the administrative agency.
▶ Presumption is that the administrative agency, by its
specialized knowledge, is in a better position to make an
informed judgment.
SCOPE (2)

▶ Thus, findings of administrative agencies (both


factual and legal) which are supported by
substantial evidence1 are considered valid and
binding.
▶ They are left undisturbed unless there was a
whimsical or capricious exercise of jurisdiction
amounting to grave abuse of discretion.
▶ Thus, judicial review is limited. Not a trial de
novo.
▶ Res judicata is applicable.2
ON ADMINISTRATIVE
“RES JUDICATA”1
The decisions and orders of administrative agencies have, upon their
finality, the force and binding effect of a final judgment within the
purview of the doctrine of res judicata.
These decisions and orders are as conclusive upon the rights of the
affected parties as though the same had been rendered by a court
of competent jurisdiction.
ON “RES JUDICATA” (2)

The rule of res judicata thus forbids the reopening of a matter once
determined by competent authority acting within their exclusive
jurisdiction.1
Faith is the substance of things hoped for,
the evidence of things not seen. (KJV)
Faith is being sure of what we hope for and
being certain of what we do not see. (NIV)
(Hebrews 11:1)
END