PHILIPPINE ADMINISTRATIVE LAW By Carlo L. Cruz Chapter 1 Ge eral Co !"#erat"o !

Nature
A#$" "!trat"%e La& that branch of modern law under which the executive department of the government, acting in a quasi-legislative or quasi-judicial capacity, interferes with the conduct of the individual for the purpose of promoting the well-being of the community. Administrative law is a recent development , being a consequence of the ever increasing complexities of society and the proliferation of problems of government that cannot readily or effectively be addressed by the public agencies or solved by other disciplines of public law. It was felt that thelegislative and judicial departments no longer had either the time or the needed expertise to attend to these new problems. hus, the obvious solution was delegation of power. wo major powers of the administrative agency! ". #uasi-legislative authority or rule ma$ing power %. #uasi-judicial power or adjudicatory function

Sour'e! o( A#$" "!trat"%e La&

Addministrative law is derived from four sources or is of four &'( $inds! 1. Co !t"tut"o or !tatutory e a't$e t! e.g. )ocial )ecurity Act which established the )ocial )ecurity *ommission. ). De'"!"o ! o( 'ourt! " terpret" * the 'harter! o( a#$" "!trat"%e +o#"e! ,. Rule! a # re*ulat"o ! "!!ue# +y the a#$" "!trat"%e +o#"e! e.g. +mnibus ,ules Implementing the -abor *ode. -. Deter$" at"o ! a # or#er! o( the a#$" "!trat"%e +o#"e! " 'o tro%er!"e! the !ettle$e t o(

A#$" "!trat"o
Administration is understood in two senses! ". " !t"tut"o administration as the aggregate of individuals in whose hands the reins of government are for the time being. %. (u 't"o administration as the actual running of the government by the executive authorities through the enforcement of laws and implementation of policies.

.overnment &as distinguished from administration( is the agency or instrumentality through which the will of the )tate is formulated, expressed and reali/ed. A#$" "!trat"o D"!t" *u"!he# (ro$ La&

La& is impersonal command provided with sanctions to be applied in case of violation, while A#$" "!trat"o is preventive rather punitive and is accepted to be more personal than law. -aw maintains a watchful eye on those who would violate its order. 0hile administration on the other hand see$s to spare individuals from punishments of the law by persuading him to observe its commands.

Chapter ) A#$" "!trat"%e A*e '"e!

De(" "t"o A#$" "!trat"%e a*e 'y a body endowed with quasi-legislative and quasi-judicial powers for the purpose of enabling it to carry out the laws entrusted to it for enforcement or execution. Administrative agency may be regarded as an arm of the legislature insofar as it is authori/e to promulgate rules. It may also be loosely considered a court because it performs functions of a particular judicial character, as when it decides factual and sometimes even legal questions as an incident of its general power of regulation. Creat"o a # A+ol"t"o or by a Statute.

he administrative body may be created by the Co !t"tut"o

If created by the *onstitution itself, the administrative body can be altered or abolished only by *onstitution. 1ut where the body was created only by statute, the legislature that breathed life into it can amend or even repeal its charter, thereby resulting in its abolition which is justified if made in good faith.

Chapter , Po&er! o( A#$" "!trat"%e A*e '"e!

.ua!"/Le*"!lat"%e Po&er the authority delegated by the law-ma$ing body to the administrative body to adopt rules and regulations intended to carry out the provisions of a law and implement legislative policy. .ua!"/0u#"'"al Po&er the power of the administrative authorities to ma$e determinations of facts in the performance of their official duties and to apply the law as they construe it to the facts so found.

Chapter The .ua!"/Le*"!lat"%e Po&er

It has already been remar$ed that the rule-ma$ing power of the administrative body is intended to enable it to implement the policy of the law and to provide for the more effective enforcement of its provisions. hrough the exercise of this power of subordinate legislation, it is possible for the administrative body to transmit the 2active power of the state from its source to the point of application,3 that is, apply the law and so fulfill the mandate of the legislature. 1" #! o( A#$" "!trat"%e Re*ulat"o ! &a( Le*"!lat"%e 2 the administrative agency is acting in a legislative capacity, supplementing the statute, filling in the details, or 2ma$ing the law3, and usually acting pursuant to a specific delegation of legislative power. &b( I terpretat"%e are those which purport to do no more than interpret the statute being administered, to say what it means. hey constitute the administrator4s construction of a statute. he interpretative regulation is issued by the administrative body as an incident to its power to enforce the law and is intended merely to clarify its provisions for proper observance by the people. It is an elementary rule in administrative law that a#$" "!trat"%e re*ulat"o ! a # pol"'"e! e a'te# +y a#$" "!trat"%e +o#"e! to " terpret &h"'h they are e tru!te# to e (or'e , have the force of law, are entitled to great respect, and have in their favor a presumpption of legality. 1y contrast, the le*"!lat"%e re*ulat"o "! "!!ue# +y the a#$" "!trat"%e +o#y pur!ua t to a %al"# #ele*at"o o( le*"!lat"%e po&er a # "! " te #e# to ha%e the +" #" * the (or'e a # e((e't o( a la& e a'te# +y the le*"!lature "t!el(. Cla!!"("'at"o o( Le*"!lat"%e Re*ulat"o

&a( Supple$e tary 2 intended to fill in the details of the law and 2to ma$e explicit what is only general.3 &b( Co t" *e t 2 issued upon the happening of a certain contingency which the administrative body is given the discretion to determine or to ascertain some circumstances and on the basis thereof may enforce or suspend the operation of a law. Re3u"!"te! o( A#$" "!trat"%e Re*ulat"o &a( Its promulgation must be authori/ed by the legislature5 &b( It must be within the scope of the authority given by the legislature5 &c( It must be promulgated in accordance with the prescribed procedure5 &d( It must be reasonable. 4"r!t Re3u"!"te5 Pro$ul*at"o Mu!t Be Author"ze# +y the Le*"!lature

Authority to promulgate the regulation is usually conferred by the *harter itself of the administrative body or by the law it is supposed to enforce.

0hen *ongress authori/es promulgation of administrative rules and regulations to implement given legislation, all that is required is that the regulation be not in contravention with it, but to conform to the standards that the law prescribes. Se'o # Re3u"!"te5 Re*ulat"o Le*"!lature Mu!t Be W"th" the S'ope o( the Author"ty G"%e +y the

Assuming a valid authori/ation, it is still necessary that the regulation promulgated must not be ultra vires or beyond the authority conferred. Th"r# Re3u"!"te5 Re*ulat"o Pro'e#ure Mu!t Be Pro$ul*ate# " A''or#a 'e &"th the Pre!'r"+e#

As in the enactment of laws, the promulgation of administrative regulations of general application does not require previous notice and hearing, the only exception being where the legislature itself requires it . In the absence of such a requirement, the administrative body can promulgate the regulation in its exclusive discretion. 1ut where the regulation is in effect a settlement of a controversy between specific parties, it is considered an administrative adjudication and so will require notice and hearing. As for publication, the applicable rule is now found in 6xecutive +rder 7o. %88 which provides that laws 2shall ta$e effect after fifteen &"9( days following the completion of their publication either in the +fficial .a/ette or in a newspaper of general circulation in the :hilippines, unless it is otherwise provided.3 Interpretative regulations and those merely internal in nature, that is, regulating only the personnel of the administrative agency and not the public, need not be published. :ublication must be in full or it is no publication at all since its purpose is to inform the public of the contents of the law. he )upreme *ourt, it would seem, requires publication of the administrative regulation only if it is of general application and penal in nature. 4ourth Re3u"!"te5 Re*ulat"o Mu!t Be Rea!o a+le

-i$e statutes, administrative regulations promulgated thereunder must not be unreasonable or arbitrary as to violate due process. Pe al Re*ulat"o ! he power to define and punish crime is exclusively legislative and may not be delegated to the administrative authorities. 0hile administrative regulations may have the force and effect of law, their violation cannot give rise to criminal prosecution unless the legislature ma$es such violation punishable and imposes the corresponding sanctions. Special requisites of a valid administrative regulation with a penal sanction: &a( &b( &c( he law itself must ma$e violation of the administrative regulation punishable5 he law itself must impose and specify the penalty for the violation of the regulation5 he regulation must be published. a # I terpretat"o

Co !tru't"o

,egulation should be read in harmony with the statute and not in violation of the authority conferred on the administrative authorities. he administrative regulation that contravenes the statute is, of course, invalid. E (or'e$e t It is established that the power to promulgate administrative regulations carries with it the implied power to enforce them. his may be effected through judicial action or through sanctions that the statute itself may allow the administrative body to impose. A$e #$e t or Repeal -i$e the statute, the administrative regulation promulgated thereunder is subject to amendment or repeal by the authorities that promulgated them in the first place. +f course, it may be changed directly by the legislature.

Chapter 6 The .ua!"/0u#"'"al Po&er

.ua!"/7u#"'"al po&er 2 is the power of the administrative agency to determine questions of fact to which the legislative policy is to apply, in accordance with the standards laid down by the law itself. he proper exercise of the quasi-judicial power requires compliance with two conditions, to wit! &"( ;urisdiction must be properly acquired by the administrative body &%( <ue process must be observed in the conduct of the proceedings A. 0ur"!#"'t"o Jurisdiction 2 may be simply defined as the competence of an office or body to act on a given matter or decide a certain question. 0ithout jurisdiction, the determination made by the administrative bodies are absolutely null and without any legal effect whatsoever. It is the legislature that has the power to confer jurisdiction upon the administrative body and so limit or expand its authority. It can be said that each administrative body has its own peculiar jurisdiction as conferred upon it by the specific provisions of its charter. he law may allow some administrative bodies to award certain $inds of damages while denying the same power, for no apparent reason, to other administrative bodies. =or example, the )6* and 7-,* are allowed to award damages virtually to the same extent as a court of justice. >et similar authority has not been conferred by its charter to 7 *. It is a well-settled principle that unless expressly empowered, administrative agencies are bereft of quasi-judicial power.

1. Rules of Procedure 0here an administrative body is expressly granted the power of adjudication, it is deemed also vested with the implied power to precribe the rules to be observed in the conduct of its proceedings. 1ut to be valid, the rules must not violate fundamental rights or encroach upon constitutional prerogatives. 2. The Subpoena Power he power to issue subpoena and subpoena duces tecum is not inherent in administrative bodies. It is settled that administrative bodies may summon witnesses and require the production of evidence only when duly allowed by law, and always only in connection with the matter they are authori/ed to investigate. ?nless otherwise provided by law, the agency may, in case of disobedience, invo$e the aid or ,egional rial *ourt within whose jurisdiction the contested case falls. he *ourt may punish customacy or refusal as contempt. he )upreme *ourt distinguished between the power to 2investigate3 and the power to 2adjudicate!3 2 he purpose of investigation, of course, is to discover, to finnd out, to learn, obtain information. 7owhere included or intimated is the notion of settling, deciding or resolving a controversy involve in the facts inquired into by application of the law x x. In the legal sense, 2adjudicate3 means to settle in the exercise of judicial authority x x. 2Adjudge3 x x implies a judicial determination of a fact, and the entry of judgment.3 . The !ontempt Power -i$e the subpoena power, the power to punish for contempt is essentially judicial and cannot be claimed as an inherent right by the administrative body. o be validly exercised, it must be expressly conferred upon the body and, additionally, must be used only in connection with its quasi-judicial as distinguished from its purely administrative or routinary functions. As a rule, where, say, a subpoena of the administrative body is disregarded, the person summoned may not be directly discipline by that body. he proper remedy id for the administrative body to see$ assistance of the courts of justice for the enforcement of its order. he power to hold in contempt must be exercised not on the vindictive, but on the preservative principle. B. Not"'e a # Hear" * he right to notice and hearing is essential to due process and its non-observance will as a rule invalidate the administrative proceedings. :ersons are entitled to be notified of any pending case affecting their interests so that, if they are minded, they may claim the right to appear therein and present their side or refute the position of opposing parties.

7evertheless, there are instances when notice and hearing can validly be omitted. Among the justifications for such omissions are the urgency of immediate action &which does not preclude the enjoyment of the right at a later time without prejudice to the person affected( and the fact that the right had previously been offered but not claimed. 1. "dministrative #ue Process 0hile administrative determinations of contested case are by their nature judicial, there is no requirement for strict adherence to technical rules as are observed in truly judicial proceedings. It is a general rule that they are unrestricted by the technical or formal rules of procedure which govern trials before a court. his rule is applied to questions of evidence, pleading and other matters. 7evertheless, it is essential that due process must be observed, for the requirements of fair play are not applicable to judicial proceedings only. *ardinal rights or principles to be observed in administrative proceedings! a. the first of these rights is the right to a hearing5 b. the tribunal must consider the evidence presented5 c. the tribunal must have something to support its decision5 d. evidence must be substantial evidence relevant evidence that a reasonable may accept as adequate to support a conclusion e. the decision must be rendered on the evidence presented at the hearing, or at contained in the record and disclosed to the parties5 mind least

f. the court must act on its or their own independent consideration of the law and facts of controversy, and not simply accept the views of a subordinate in arriving at a decision5 g. the court should render its decision in such a manner that the parties to the proceeding can $now the various issues involved, and the reasons for the decisions rendered It is basic to due process that the tribunal considering the administrative question be impartial, to ensure a fair decision. he law does not require another notice and hearing for a review of the decision of the board. In @.=. Aiolago +iler an$ ruc$s vs. 7-,*, there was no denial of due process where the petitioners received notice of the scheduled investigation the day before said date of the hearing or investigation but failed to present evidence. +n the other hand, there was clearly such a denial where it appears that a decision rendered against a person who was not a party to or even notified of the proceedings ta$en before a labor arbiter. C. A#$" "!trat"%e Appeal! a # re%"e& ?nless otherwise provided by law or executive order, an appeal from a final decision of the administrative agency may be ta$en to the department head, whose decision may further be brought to the regular courts of justice, in accordance with the procedure specified by law.

D. E (or'e$e t o( De'"!"o In the absence of any statute providing for the enforcement of an administrative determination, the same cannot be enforced except possibly by appeal to the force of public opinion. ?sually, however, the administrative body is allowed certain sanctions that it may impose directly for the enforcement of its own decisions, i.e. revocation of or refusal to renew licenses, destruction of unlawful articles, summary closure of stores, refusal to grant clearances, issuance of cease and desist orders, detention and deportation of aliens, and imposition of fines. )ignificantly, many administrative bodies, such as the )6* and the 7-,*, have been vested with authority to grant provisional reliefs, such as writs of preliminary attachment or injunction, intended to ensure the enforcement of their adjudications. It is established that administrative agencies who have not been conferred the power to enforce their quasi-judicial decisions may invo$e court action for the purpose. E. Re! 0u#"'ata he general rule is that an administrative decision is not considered res judicata so as to preclude its subsequent reconsideration or revocation. <ecisions of the previous incumbents of the administrative body may be modified or reversed by their successors in the exercise of their own powers of adjudication. 0here the administrative decision has been affirmed by a court decision, the doctrine of res judicata is applicable. he effect of res judicata attaches to the judgment of the reviewing court rather than to the administrative judgment. his rule has however been modified in this jurisdiction. It is now well-settled in our jurisprudence that the decisions and orders of administrative agencies, rendered pursuant to their quasi-judicial authority, have upon their finality, the force and binding effect of a final judgment within the purview of the doctrine of res judicata. his principle is, however, not applicable to all administrative proceedings, such proceedings that are non-litigious and summary in nature without regard to legal technicalities obtaining in courts of law.

Chapter 8 0u#"'"al Re%"e&

Ge eral Rule! An administrative decision may be appealed to the courts of justice only if the *onstitution or the law permits it or if the question to be reviewed is a question of law. Bowever, jurisprudence is replete with cases where the )upreme *ourt has applied the exceptions rather than the rule.

In the case of the constitutional commission, i.e., the *ommission on 6lections, the *ommission on Audit, and the *ivil )ervice *ommission, it is provided that 2any decision order or ruling of each *ommission may be brought to the )upreme *ourt on certiorari by the aggrieved party within C8 days from receipt of a copy thereof.3 +n the basis of )ec. "D of the Interim ,ules and .uideline implementing )ec. E &C( of 1: 1lg. "%E, the *ourt of Appeals may 2review final decisions, orders, awards or resolutions or regional trial courts and of all quasi-judicial bodies, except the *ommission on 6lections, the *ommission on Audit, the )andiganbayan, and decisions issued under the -abor *ode of the :hilippines and by the *entral 1oard of Assessment Appeals.3 +ther appeals are prescribed by special laws, such as ,A 7o. ""%9, providing for appeal to the *ourt of ax Appeals of any decision rendered by the *ommissioner of Internal ,evenue, the *ommissioner of *ustoms, or any provincial or city board of assessment appeals. Metho#! o( re%"e& he methods of judicial review are prescribed by the *onstitution, statutes or the ,ules of the *ourt. hese methods may be specific or general. It is provided in ,A 7o. 9'C' that an appeal from a final award, order or decisions of the :atent +ffice shall be ta$en by filing with said body and with the *ourt of Appeals a notice of appeal within "9 days from notice of such award, order or ruling, copies being served on all interested parties. he Administrative *ode generally provides that an appeal from an agency decision shall be perfected by filing with the agency within "9 days from receipt of a copy thereof a notice of appeal, and with the reviewing court a petition for review of the order. *opies of the petition shall be served upon the agency and all parties of record. he petition shall contain a concise statement of the issues involved and the grounds relied upon for the review, and shall be accompanied with a true copy of the order appealed from, together with copies of such material portions of the records as are referred to therein and other supporting papers. he )upreme *ourt instructed certain universally accepted axioms governing judicial review through the extraordinary actions of certiorari or prohibition of determinations of administrative officers or agencies! =irst, before said actions may be entertained, it must be shown that all the administrative remedies prescribed by law or ordinance have been exhausted5 and, )econd, that the administrative decision may properly be annulled or set aside only upon a clear showing that the administrative official or tribunal has acted without or in excess of jurisdiction, or with a grave abuse of discretion. Do'tr" e o( Pr"$ary 0ur"!#"'t"o or Pr"or Re!ort

here are two doctrines that must be considered in connection with the judicial review of administrative decisions!&"( doctrine of primary jurisdiction or prior resort5 and &%( the doctrine of exhaustion of administrative remedies. he #o'tr" e o( pr"$ary 7ur"!#"'t"o simpl$ calls for the determination of administrative questions% which ordinaril$ questions of fact% b$ administrative agencies rather courts of &ustice.

If the case is such that its determination requires the expertise, speciali/ed s$ills and $nowledge of the proper administrative bodies because technical matters or intricate questions of facts are involved, then relief must first be obtained in an administrative proceeding before a remedy will be supplied by the courts even though the matter is within the proper jurisdiction of the court Do'tr" e o( E9hau!t"o o( A#$" "!trat"%e Re$e#"e!

?nder the #o'tr" e o( e9hau!t"o o( a#$" "!trat"%e re$e#"e!, an administrative decision must first be appealed to the administrative superior up to the highest level before it ma$ be elevated to a court of &ustice for review . A. Rea!o ! &"( he administrative superiors, if given the opportunity, can correct the errors committed by their subordinates5 &%( *ourts should as much as possible refrain from disturbing the findings of administrative bodies in deference to the doctrine of separation of powers5 &C( +n practical grounds, it is best that the courts should not be saddled with the review of administrative cases5 &'( ;udicial review of administrative cases is usually effected through the special civil actions of certiorari, mandamus and prohibition, which are available only if there is no other plain, speedy and adequate remedy. B. E9'ept"o ! &"( 0hen the question raised is purely legal &question of law is involved(5 &%( 0hen the administrative body is estoppel5 &C( 0hen the act complained of is patently illegal5 &'( 0hen there is urgent need for judicial intervention5 &9( 0hen the claim involved is small5 &D( 0hen irreparable damage will be suffered5 &F( 0hen there is no other plain, speedy and adequate remedy5 &G( 0hen strong public interest is involved5 &E( 0hen the subject of the controversy is private land5 &"8( In quo warranto proceedings

C. Appeal to the Pre!"#e t +f special interest is the question of whether or not a decision of the cabinet member has to be appealed first to the :resident before it may be brought to a court of justice. ;urisprudence on this matter is rather indecisive.

In the early case of demaisip vs. *ourt of Appeals, the *ourt held that appeal to the :resident was not necessary because the *abinet member was after all his alter ego and, under the doctrine of qualified political agency, the acts of the secretary were the acts of the :resident. his view was abandoned in *alo vs. =uertes, where it was held that appeal to the :resident was the final step in the administrative process and therefore a condition precedent to appeal to the courts. In 1artulata vs. :eralta, however, the court reinstated the <emaisip doctrine, again on the basis of alter ego justification. an vs. <irector of =orestry, thereafter revived *alo andagain required appeal to the :resident as a prerequisite to an appeal of a *abinet member4s decision to the courts of ;ustice. D. E((e't o( No /'o$pl"a 'e he failure to exhaust administrative remedies does not affect the jurisdiction of the court and merely results in the lac$ of a cause of action which may be invo$ed in a motion to dismiss. If this ground to dismiss the court action is not properly or reasonably invo$ed, the court may proceed to hear the case. As previously noted, the court has the discretion to require the observance of the doctrine of exhaustion of administrative remedies and may, if it sees fit, dispense with it and proceed with the disposition of the case. .ue!t"o ! Re%"e&a+le wo $inds of questions are reviewable by the courts of justice, to wit! the question of fact and the question of law. +n the question of fact, review of the administrative decision lies in the discretion of the legislature, which may or may not permit it as it sees fit. 1ut when it comes to the question of law, the administrative decision may be appealed to the courts of justice independently of legislative permission or even against legislative prohibition. he reason is that the judiciary cannot be deprived of its inherent power to review all decisions on questions of law, whether made initially by lower courts and more so by an administrative body. A. .ue!t"o ! o( (a't 6ven if allowed to review administrative decisions on questions of fact, courts of justice generally defer to such decisions and will decline to disturb them except only where there is a clear showing of arbitrariness or grave abuse of discretion. he )upreme *ourt ruled in +sias Academy vs. <+-6 that 'findings of administrative agencies which have acquired e(pertise because their &urisdiction is confined to specific matters are generall$ accorded not onl$ respect but finalit$.) B. .ue!t"o ! o( La& Administrative bodies may be allowed to resolve questions of law in the exercise of their quasijudicial function as an incident of their primary power of regulation.

Bowever as a rule, it is onl$ the &udicial tribunal that can interpret and decide the question of law with finalit$.