APPENDIX ................................................................................................................... . 33
BOOK VII: ADMINISTRATIVE PROCEDURE....................................................................................................................... 33
I. Historical and Constitutional Considerations Administrative Law
KINDS OF ADMINISTRATIVE LAW
I. HISTORICAL AND CONSTITUTIONAL 1. Statutes setting up administrative authorities.
CONSIDERATIONS 2. Rules, regulations, or orders of such
administrative authorities promulgated pursuant
to the purposes for which they were created.
A. Development Of Administrative Law 3. Determinations, decisions, and orders of such
As A Distinct Field Of Public Law administrative authorities made in settlement of
controversies arising in their particular fields.
FACTORS RESPONSIBLE FOR THE EMERGENCE 4. Body of doctrines and decisions dealing with the
OF ADMINISTRATIVE AGENCIES creation, operation, and effect of
determinations and regulations of such
1. Growing complexities of modern life; administrative authorities.
2. Multiplication of number of subjects needing
government regulation; and ADMINISTRATION
3. Increased difficulty of administering laws.
[Laurel, J. in Pangasinan Transportation v Meaning
Public Service Commission (1940)] Understood in two different senses:
1. As a function: The execution, in non-judicial
DOCTRINE OF “SEPARATION OF POWERS” matters, of the law or will of the State as
AND THE CONSTITUTIONAL POSITION OF expressed by competent authority.
ADMINISTRATIVE AGENCIES 2. As an organization: That group or aggregate of
persons in whose hands the reins of
The Doctrine of Separation of Powers, though government are for the time being.
not mentioned anywhere by such name in the 1987
Constitution, can be inferred from its provisions. Distinguished from government
The heart of the doctrine is that the basic powers
of the government must be kept separate from Kinds
each other, each power being under the principal 1. Internal: Legal side of public administration
control of a branch of government. The legislative (e.g. matters concerning personnel; fiscal and
power is granted to the Congress, the executive planning activities).
power to the President, and the judicial power to 2. External: Deals with problems of government
the Judiciary. regulations (e.g. regulation of professions,
industries or businesses).
The President as Chief Executive exercises
control over agencies and offices which perform ADMINISTRATIVE AGENCY
rule-making or adjudicatory functions.
MEANING
If the agency is created by Congress, consider Any governmental organ or authority, other
the law that created it. If the law is silent as to the than a court or legislative body, which affects the
control which the President may exercise, the rights of private parties, through rule-making and
President can only supervise, i.e., to see to it that adjudication. [Davis; Nachura]
the laws are faithfully executed.
A body or agency is administrative where its
The 3 branches of government lack (1) time, function is primarily regulatory, even if it conducts
(2) expertise, and (3) organizational aptitude for hearings and determines controversies to carry out
effective and continuing regulation of new its regulatory duty. On its rule-making authority, it
developments in society [Stone]. Thus, there is a is administrative when it does not have discretion
need for a body which would act as a “catch basin,” to determine what the law shall be but merely
otherwise the 3 branches would collapse. The prescribes details for the enforcement of the law.
Administrative Agency supports the trichotomy of
powers. Any department, bureau, office, commission,
authority or officer of the National Government
authorized by law or executive order to make rules,
B. Definition of Terms issue licenses, grant rights or privileges, and
adjudicate cases; research institutions with respect
ADMINISTRATIVE LAW to licensing functions; government corporations
with respect to functions regulating private right,
MEANING privilege, occupation or business; and officials in
Branch of public law dealing with the doctrines the exercise of disciplinary powers as provided by
and principles governing the powers and law. [Sec. 2, Book VII, Admin Code of 1987]
procedures of administrative agencies, especially
including judicial review of administrative action POWERS OF AN ADMINISTRATIVE AGENCY
[Prof. Kenneth Culp Davis]
1. Quasi-legislative or rule-making power
Branch of public law which fixes the 2. Quasi-judicial or adjudicatory power
organization and determines the competence of 3. Determinative powers [Nachura]
administrative authorities and indicates to the a. Licensing
individual remedies for the violation of his rights. b. Price/rate-fixing
[Nachura] c. Implementing or executing
Puyat v De Guzman
An indirect appearance as counsel by an
Assemblyman before an administrative body
circumvents the Constitutional prohibition. A
contrary rule would permit an Assemblyman to
influence an administrative body just by acquiring
minimal participation in the “interest” of the client
and then “intervening” in the proceedings.
So long as the court The court may review their As to time Rule-making is Adjudication is
finds that the correctness of the prospective in retrospective in
legislative rules are interpretation of the law character, for it character, for it
within the power of given by the administrative only governs investigates acts
the administrative body, and substitute its future acts. already done and
agency to pass, as own view of what is correct then applies the law
seen in the primary to the administrative body. on the facts.
law, then the rules If it is not within the scope
bind the court. The of the administrative
court cannot question agency, court can only As to Legislative Adjudicative rulings
the wisdom or invalidate the same but application rules are of apply only to parties
correctness of the not substitute its decision general
policy contained in the or interpretation or give its application
rules. own set of rules.
• Sec. 9 (2) of the Admin Code implies that all
Due process involves Due process means that
rules with respect to fixing of rates must be
whether the parties the body observed the
accompanied with notice and hearing,
were afforded the proper procedure in
regardless if the rate-fixing function is
opportunity to be passing rules.
legislative or quasi-judicial.
notified and heard
• Notice and hearing necessary if the rate to be
before the issuance of fixed applies to only one entity (quasi-judicial).
the ruling. [Philcomsat v Alcuaz (1989)]
Fixing of rates, wages and prices » Note, however, that the Administrative Code
now does not differentiate legislative from
Sec. 9, 1987 Admin Code. Public Participation. quasi-judicial rate-fixing: notice and hearing
– (1) If not otherwise required by law, an agency is required for both.
shall, as far as practicable, publish or circulate • The power to fix rates cannot be delegated to a
notices of proposed rules and afford interested common carrier or other public service. The
parties the opportunity to submit their views prior latter may propose new rates, but these will not
to the adoption of any rule. be effective without the approval of the
(2) In the fixing of rates, no rule or final order shall administrative agency. [KMU v Garcia (1994)]
be valid unless the proposed rates shall have been • In fixing the rate, the present valuation of all
published in a newspaper of general circulation at the property of a public utility, viz, not only of
least 2 weeks before the first hearing thereon. the assets used by the public but also of the
(3) In cases of opposition, the rules on contested fixed assets must be made on that basis so a
cases shall be observed. fair return of investment can be had. On
principle, the property is deemed taken and
Sec. 2(3), 1987 Admin Code. “Rate” means any condemned by the public at the time of filing
charge to the public for a service open to all and the petition, and the rate should go up and
upon the same terms, including individual or joint down with the physical valuation of the
rates, tolls, classification or schedules thereof, as property. [Ynchausti v Public Utility
well as communication, mileage, kilometrage and Commissioner (1922)]
other special rates which shall be imposed by law
of regulation to be observed and followed by any Licensing Function
person.
Sec. 17, 1987 Admin Code
• Function delegated to administrative agencies Licensing Procedure. – (1) When the grant,
because the legislature does not have the time, renewal, denial or cancellation of a license is
knowledge and means necessary to handle the required to be preceded by notice and hearing, the
matter efficiently. Need for dispatch, flexibility provisions concerning contested cases shall apply
and technical know-how better met by insofar as practicable.
administrative agencies.
conditions all obtain: (1) The question 1. Has gone beyond his statutory
of citizenship is resolved by a court or authority;
administrative body as a material 2. Exercised unconstitutional powers;
issue in the controversy after a full- 3. Clearly acted arbitrarily and without
blown hearing; (2) with the active regard to his duty, or with grave abuse
participation of the Sol-Gen; and (3) of discretion; or
The finding on the citizenship issue is 4. The decision is vitiated by fraud,
affirmed by the SC. [Zita Ngo Burca imposition or mistake. [Manuel v
v Republic] Villena (1971)]
Nor does res judicata apply where the • There is an underlying power in the courts to
administrative decision gives an scrutinize the acts of administrative agencies
award that is less than what the law exercising quasi-judicial or legislative power on
provides. [B.F. Goodrich v WCC questions of law and jurisdiction even though
(1988)]. no right of review is given by statute. The
purpose of judicial review is to keep the
A. Factors Affecting Finality of administrative agency within its jurisdiction and
protect substantial rights of parties affected by
Administrative Decisions
its decisions. Judicial review is proper in case
of lack of jurisdiction, grave abuse of discretion,
• When a court reviews an agency’s construction, error of law, fraud or collusion. The court may
it deals first with the question whether also declare an action or resolution of an
Congress has directly spoken to the precise administrative authority to be illegal because it
question at issue. If intent of Congress is clear, violates or fails to comply with some mandatory
no problem. The court as well as the agency provision of law, or because it is corrupt,
must give effect to the unambiguous expressed arbitrary or capricious. [San Miguel Corp v
intent of Congress. If not, the court does not Secretary of Labor (1975)]
simply impose its own construction on the • When judicial review is valid despite finality of
statute. If the statute is silent or ambiguous administrative decisions:
with respect to the issue, the question for the (a) Decision is wrong.
court is whether the agency’s answer is based (b) Manifestly arbitrary, capricious, unjust
on a permissible construction of the statute. decision.
[Chevron v Natural Resources Defense (c) Decision is not based upon any
Council (1984)] reasonable interpretation of law.
• When no one seasonably filed a motion for (d) Administrative body or officer has
reconsideration, the Office of the President lost gone beyond its/his statutory
jurisdiction to reopen the case, more so modify authority.
its decision. It thus had no more authority to (e) Administrative agency exercised
entertain the second motion for reconsideration. unconstitutional powers.
The orderly administration of justice requires (f) Decision vitiated by fraud, imposition
that the judgments of a court or quasi-judicial or mistake.
body reach a point of finality set by the law, (g) Lack of jurisdiction.
rules and regulations. [Fortich v Corona (h) Grave abuse of discretion.
(1998)] (i) Decision violates or fails to comply
• Compliance with the period provided by law for with some mandatory provision of law.
the perfection of an appeal is not merely
mandatory but also a jurisdictional requirement.
Thus, failure to comply with the reglementary
B. Availability of Judicial Review
period has the effect or rendering final the
judgment of the court. Even administrative 1. Whether the enabling statute permits judicial
decisions must end sometime, as fully as public review. There is no problem when the statute
policy demands that finality be written on itself expressly grants or prohibits judicial
judicial controversies. Non quieta movere: review. But when it is silent, generally, judicial
What was already terminated cannot be review is available. Since an administrative
disturbed. [Antique Sawmill v Zayco agency has a narrower view of the case, and its
(1966)] existence derogates the judicial prerogative
• The Courts will not interfere with the decision of lodged in the courts by the Constitution, judicial
the an administrative officer, unless the Court is review is needed to offer these considerations.
of the clear opinion that such decision is (a) 2. Whether the plaintiff is the proper plaintiff, that
wrong, (b) manifestly arbitrary and unjust, and is, whether the plaintiff has standing.
(c) not based upon any reasonable 3. Whether the defendant is the proper defendant.
interpretation of the law. [Sotto v Ruiz The defendant could either be a private party,
(1921)] or the very administrative agency before whom
• General rule: Courts refuse to interfere with the right is being applied.
proceedings undertaken by administrative 4. Whether the forum is the proper forum. The
bodies or officials in the exercise of forum is usually provided for in the enacting
administrative functions. statute, but in its absence, the Uniform Appeals
» Exceptions: administrative proceedings may Act should be applicable. It is very seldom that
be reviewed by the courts upon a showing the forum is in the RTC, since administrative
that the board or official: agencies are usually given the rank equal to or
higher than the RTC.
(2004)]
Based on question of law, of fact or Based only on questions of law. Based on question of jurisdiction or
mixed question of law and fact. (Sec (Sec 1) grave abuse of discretion.
3)
This rules applies to appeals from This rule applies to appeals from This rule applies only to an order
judgments or final orders or judgments or final orders or or act of an officer or board
resolutions of or authorized by any resolutions of the CA, the exercising judicial or quasi-judicial
quasi-judicial agency in the exercise Sandiganbayan, the RTC or functions, and not for judgments.
of its quasi-judicial functions (Sec other courts. (Sec 1) [Republic v CA]
1). But this does not apply to
judgments or final orders issued
under the Labor Code. (Sec 2)
Appeal shall be taken within 15 days Petition shall be filed within 15 Within 60 days.
from notice of the award, judgment days from notice of the
or final order or resolution, or from judgment or final order or
the date of its last publication, or of resolution, or of the denial of the
the denial of the motion for new trial motion for new trial or
or reconsideration. Upon proper reconsideration. On motion with
motion & payment of docket fees payment of docket fees before
and before the expiration of the the expiration of the
reglementary period, the CA may reglementary period, the SC
grant an additional period of 15 may, for justifiable reasons,
days. No further extension may be grant an extension of 30 days.
granted except for the most (Sec 2)
compelling reason, and in no case
shall it exceed 15 days. (Sec 4)
Award, judgment, final order or Judgment is stayed. Order is not stayed unless a
resolution not stayed unless the CA preliminary injunction is issued.
directs otherwise. (Sec 12)
Parties are the original parties and Parties are the original parties Parties are aggrieved party
the court or agency is not impleaded who thus become appellant and (petitioner) against the
as petitioner or respondent. (Sec 6) appellee. administrative agency and the
prevailing parties (respondents).
The court exercises appellate The court exercises appellate Court exercises original
jurisdiction. jurisdiction. jurisdiction.
5. Cases refusal to perform the duty enjoined, or to act at
all in contemplation of law.
St. Martin Funeral Homes v NLRC (1998)
There is an underlying power of the courts to Purefoods Corp v NLRC (1989)
scrutinize the acts of agencies on questions of law The rule in this jurisdiction is that certiorari
and jurisdiction even though no right of review is will lie only if there is no appeal or any other plain,
given by statute. The remedy of a party is to file a speedy and adequate remedy in the ordinary
motion for reconsideration at the administrative course of law against the acts of respondent.
level, then avail of a special civil action for The only question involved in certiorari is
certiorari under Rule 65. In the case of NLRC jurisdiction, either the want or excess thereof, and
decisions, the intent of the legislature was to make abuse of discretion warrants the issuance of the
a special civil action for certiorari as the proper extraordinary remedy of certiorari only when the
vehicle for review. Thus, all references in the law same is so grave, as when the power is exercised
to “appeals” from the NLRC to the SC must be in an arbitrary or despotic manner by reason of
interpreted to mean petitions for certiorari under passion, prejudice or personal hostility, and it must
Rule 65. All such petitions must initially be filed in be so patent and so gross as to amount to an
the CA following the hierarchy of courts. evasion of positive duty, or to a virtual refusal to
perform a duty enjoined, or to act at all, in
Police Commission v Bello (1971) contemplation of law, as to be equivalent to having
While findings of facts of administrative bodies acted without jurisdiction. It must emphatically be
are entitled to great weight and should not reiterated, since so often is it overlooked, that the
generally be disturbed, there is grave abuse of special civil action for certiorari is a remedy
discretion justifying the issuance of the writ of designed for the correction of errors of jurisdiction
certiorari when there is such capricious and and not errors of judgment. The reason for the rule
whimsical exercise of judgment as is equivalent to is simple. When a court exercises its jurisdiction,
lack of jurisdiction as where the power is exercised an error committed while so engaged does not
in an arbitrary or despotic manner by reason of deprive it of the jurisdiction being exercised when
passion, prejudice or personal hostility amounting the error is committed. If it did, every error
to an evasion of positive duty, or to a virtual committed by a court would deprive it of its
2. Requisites 3. Requisites:
a. There is illegal confinement or detention. a. Plaintiff is entitled to relief demanded.
b. There is illegal restraint of liberty. b. Commission or continuance of an act
c. Rightful custody of any person is withheld complained of would probably work injustice
from the person entitled thereto. to him.
c. Defendant, is doing, threatens or about to
3. Purpose: Secure the release of a person do an act in violation of petitioner’s rights
deprived of his liberty, and test the validity of which may render the judgment ineffective.
detention as ordered by an agency. d. Injunction can only be issued by superior to
an inferior body; if co-equals, the injunction
cannot prosper. [Honda v San Diego
(1966)]
UP Law Center
Subject Committee
[Constitutional Law 2] I Frances Tandog [head]
Joe Jambalos . Andy Lacuesta
I
Rice Daarol [deputy] . Chino Baybay [deputy]
Information Management Committee Theresa Roldan . Lem Arenas . Mitch Lim
Jen Lee . Keisie Marfil . Al Siason
Cecille Tuazon . Dianne Patawaran