P O W E R S A N D F U N C T I O N S O F ADMINISTRATIVE BODIES A.RULE-MAKING POWER PHILIPPINE LAWYERS VS AGRAVA G. R. No.

L-12426 February 16, 1959 This is the petition filed by the Philippine Lawyers Association for prohibition and injunction against Celedonio Agrava, in his capacity as Director of the Philippines Patent Office. Facts: O n M a y 2 7 , 1 9 5 7 , r e s p o n d e n t A g r a v a issued a circular announcing that he had s c h e d u l e d f o r J u n e 2 7 , 1 9 5 7 a n e x a m i n a t i o n f o r t h e p u r p o s e o f determining who are qualified to practice a s p a t e n t a t t o r n e y s b e f o r e t h e Philippines Patent Office, the said examination to c o v e r p a t e n t l a w a n d jurisprudence and the rules of practice b e f o r e s a i d o f f i c e . A c c o r d i n g t o t h e circular, members of the Philippine Bar, engineers and other persons with sufficient scientific and technical training a r e q u a l i f i e d t o t a k e t h e s a i d examination. It would appear that heretofore, respondent Director has been holding similar examinations. P e t i t i o n e r c o n t e n d s t h a t a n y o n e h a s passed the bar exams and is licensed by the Supreme Court to practice law, has g o o d s t a n d i n g , t h u s d u l y q u a l i f i e d t o p r a c t i c e b e f o r e t h e P a t e n t O f f i c e , a n d therefore the act of requiring members of t h e B a r i n g o o d s t a n d i n g t o t a k e a n d pass an examination given by the Patent O f f i c e a s a c o n d i t i o n p r e c e d e n t t o b e allowed to practice before said office is a c l e a r e x c e s s o f h i s j u r i s d i c t i o n a n d violation of the law. On the other hand, respondent claimed t h a t h e i s e x p r e s s l y a u t h o r i z e d b y t h e l a w t o r e q u i r e p e r s o n s d e s i r i n g t o practice or to do business before him to submit an examination, even if they are already members of the bar. He contends t h a t o u r P a t e n t L a w , R e p u b l i c A c t N o . 165, is patterned after the United States P a t e n t L a w ; a n d o f t h e U n i t e d S t a t e s Patent Office in Patent Cases prescribes an examination similar to that which he had prescribed and scheduled.(a) Attorney at law. Any attorney at law in good standing admitted to practice b e f o r e a n y U n i t e d S t a t e s C o u r t o r t h e highest court of any State or Territory of t h e U n i t e d S t a t e s w h o f u l f i l l s t h e requirements and complied with the p r o v i s i o n s o f t h e s e r u l e s m a y b e admitted to practice b e f o r e t h e P a t e n t Office and have his name entered on the register of attorneys.(c) Requirement for registration. No person will be admitted to practice and r e g i s t e r u n l e s s h e s h a l l a p p l y t o t h e Commissioner of Patents in

writing on a p r e s c r i b e d f o r m s u p p l i e d b y t h e Commissioner and furnish all requested i n f o r m a t i o n a n d m a t e r i a l ; and shall establish to the satisfaction of the Commissioner that he is of good moral c h a r a c t e r a n d o f g o o d r e p u t e x x x I n o r d e r t h a t t h e C o m m i s s i o n e r m a y determine w h e t h e r a p e r s o n x x x h a s the qualifications specified, satisfactory p r o o f o f g o o d m o r a l c h a r a c t e r a n d repute, x x x an examination which i s h e l d f r o m t i m e t o t i m e m u s t b e t a k e n and passed. The Respondent states thatthe promulgation of the Rules of Practice o f t h e U n i t e d S t a t e s P a t e n t O f f i c e i n Patent Cases is authorized by the United States Patent Law itself which provides: The Commissioner of Patents, subject to t h e a p p r o v a l o f t h e S e c r e t a r y o f Commerce may prescribe rules and regulations governing the recognition of a g e n t s , a t t o r n e y s , o r o t h e r p e r s o n s representing applicants or other parties before his office, and may require of suchp e r s o n s , a g e n t s , o r a t t o r n e y s , b e f o r e being recognized as representatives of a p p l i c a n t s o r o t h e r p e r s o n s , t h a t t h e y s h a l l s h o w they are of good moral character and in good r e p u t e , a r e possessed of the necessary qualifications to enable them to render to applicants orother persons valuable service, and are l i k e w i s e t o c o m p e t e n t t o a d v i s e a n d assist applicants or other persons in the p r e s e n t a t i o n o r p r o s e c u t i o n o f t h e i r applications or other business before the Office. x x x R e s p o n d e n t D i r e c t o r c o n c l u d e s t h a t Section 78 of Republic Act No. 165 being s i m i l a r t o t h e p r o v i s i o n s o f l a w j u s t r e p r o d u c e d , t h e n he is authorized to p r e s c r i b e t h e r u l e s a n d r e g u l a t i o n s r e q u i r i n g t h a t p e r s o n s d e s i r i n g t o practice before him should submit to and pass an examination. We reproduce said S e c t i o n 7 8 , R e p u b l i c A c t N o . 1 6 5 , f o r purposes of comparison :S E C . 7 8 . R u l e s a n d r e g u l a t i o n s . T h e D i r e c t o r s u b j e c t t o t h e a p p r o v a l o f t h e Secretary of Justice, shall promulgate the n e c e s s a r y r u l e s a n d r e g u l a t i o n s , n o t inconsistent with law, for the conduct of all business in the Patent Office. Issue/s: W H E T H E R O R N O T M E M B E R S O F T H E BAR SHOULD FIRST TAKE AND PASS ANE X A M I N A T I O N G I V E N B Y T H E P A T E N T OFFICE BEFORE HE COULD BE ALLOWED TO PRACTICE LAW IS THE SAID OFFICE. whether or not appearance before the patent Office and the preparation a n d the prosecution of patent applications ,e t c . , c o n s t i t u t e o r i s i n c l u d e d i n t h e practice of law. W H E T H E R O R N O T D I R E C T O R O F THEPATENT OFFICE IS AUTHORIZED T O CONDUCT AN EXAMINATION FOR PATENTATTORNEYS IS CONTRARY TO LAW.

Decision: The petition for prohibition is granted and t h e r e s p o n d e n t D i r e c t o r i s h e r e b y prohibited from requiring members of the P h i l i p p i n e B a r t o s u b m i t t o a n examination or tests and pass the same b e f o r e b e i n g p e r m i t t e d t o a p p e a r a n d practice before the Patent Office. Ratio Decidendi: The Supreme Court has the exclusive and constitutional power with respect to admission to the practice of law in thePhilippines1 and to any member of t h e P h i l i p p i n e B a r i n g o o d s t a n d i n g m a y p r a c t i c e l a w a n yw h e r e a n d b e f o r e a n y entity, whether judicial or quasi-judicial or administrative, in the Philippines. The practice of law is not limited to the conduct of cases or litigation in court; it embraces the preparation of pleadings and other papers incident to actions and social proceedings, the management of such actions and proceedings on behalf of clients before judges and courts, and i n a d d i t i o n , c o n v e y i n g . I n g e n e r a l , a l l advice to clients, and all action taken for them in matters connected with the law c o r p o r a t i o n s e r v i c e s , a s s e s s m e n t a n d condemnation services contemplating an a p p e a r a n c e b e f o r e a j u d i c i a l b o d y , t h e foreclosure of a mortgage, enforcement o f a c r e d i t o r s c l a i m i n b a n k r u p t c y a n d insolvency proceedings, and conducting p r o c e e d i n g s i n a t t a c h m e n t , a n d i n matters of estate and guardianship have been held to constitute law practice as do the preparation and drafting of legal i n s t r u m e n t s , w h e r e t h e w o r k d o n e involves the determination by the trained legal mind of the legal effect of facts and c o n d i t i o n s . ( 5 A m . J u r . p . 2 6 2 , 2 6 3 ) . (Emphasis supplied).Practice of law under modern conditions c o n s i s t s i n n o s m a l l p a r t o f w o r k performed outside of any court and h a v i n g n o i m m e d i a t e r e l a t i o n t o proceedings in court. It embraces conveyancing, the giving of legal advice o n a l a r g e v a r i e t y o f s u b j e c t s , a n d t h e p r e p a r a t i o n a n d e x e c u t i o n o f l e g a l instruments covering an extensive field of business and trust relations and other affairs. Although these transactions may h a v e n o d i r e c t c o n n e c t i o n w i t h c o u r t proceedings, they are always subject to b e c o m e i n v o l v e d i n l i t i g a t i o n . T h e y require in many aspects a high degree of l e g a l s k i l l , a w i d e e x p e r i e n c e w i t h m e n a n d a f f a i r s , a n d gre at cap a cit y f o r adaptation to difficult and complex situations. These customary functions of an attorney or counselor at law bear an intimate relation to the administration of justice by the courts. No valid distinction so far as concerns the question set forth in the order, can be drawn between that part which involves advice and drafting o f i n s t r u m e n t s i n h i s o f f i c e . I t i s o f importance to the welfare of the public that these manifold customary functions b e p e r f o r m e d b y p e r s o n s p o s s e s s e d o f a d e q u a t e l e a r n i n g a n d s k i l l , o f s o u n d moral character, and acting at all times u n d e r t h e h e a v y t r u s t o b l i g a t i o n s t o c l i e n t s w h i c h r e s t s u p o n a l l a t t o r n e y s . (Moran, Comments on the Rules of Court,Vol. 3 (1953 ed.), p. 665-666, citing In re Opinion of the Justices (Mass.), 194 N.E.313, quoted in Rhode Is. Bar Assoc. vs. Automobile Service Assoc. (R. I. ) 179 A.139, 144). (Emphasis ours). T h e p r a c t i c e o f l a w i n c l u d e s s u c h

appearance before the Patent Office, there presentation of applicants, oppositors, and other persons, and the prosecution o f t h e i r a p p l i c a t i o n s f o r p a t e n t , t h e i r oppositions thereto, or the enforcement of their rights in patent cases. I n c o n c l u s i o n , w e h o l d t h a t u n d e r t h e present law, members of the Philipp ine B a r a u t h o r i z e d b y t h i s T r i b u n a l t o practice law, and in good standing, may p r a c t i c e t h e i r p r o f e s s i o n b e f o r e t h e Patent Office, for the reason that much of t h e b u s i n e s s i n s a i d o f f i c e i n v o l v e s t h e interpretation and determination of the scope and application of the Patent Law and other laws applicable, as well as the p r e s e n t a t i o n o f e v i d e n c e t o e s t a b l i s h facts involved; that part of the functions o f t h e P a t e n t d i r e c t o r a r e j u d i c i a l o r quasijudicial, so much so that appeals from his orders and decisions are, under the law, taken to the Supreme Court