Marianne L.

Lalwani 1 Administrative Law

Ang Tibay v. CIR [GR 46496, 27 February 1940] En Banc, Laurel (p): 6 concur. Fact ! Ang Tibay, has filed an opposition both to the motion for reconsideration of the $ational Labor %nion. !" and to the motion for ne# trial of the

The &upreme ourt found it not necessary to pass upon the motion for reconsideration of the &olicitor'(eneral, as it found no substantial e)idence to indicate that the e*clusion of the +, laborers here #as due to their union affiliation or acti)ity. The ourt granted the motion for a ne# trial and the entire record of this case shall be remanded to the !", #ith instruction that it reopen the case, recei)e all such e)idence as may be rele)ant, and other#ise proceed in accordance #ith the re-uirements set forth. 1. T"e C#urt #$ In%u tria& Re&ati#n ' (e)arture $r#* rigi% c#nce)t #$ e)arati#n #$ )#+er The ourt of !ndustrial "elations is a special court #hose functions are specifically stated in the la# of its creation ( A ./0). !t is more an administrati)e board than a part of the integrated 1udicial system of the nation. !t is not intended to be a mere recepti)e organ of the (o)ernment. %nli2e a court of 1ustice #hich is essentially passi)e, acting only #hen its 1urisdiction is in)o2ed and deciding only cases that are presented to it by the parties litigant, the function of the ourt of !ndustrial "elations, as #ill appear from perusal of its organic la#, is more acti)e, affirmati)e and dynamic. !t not only e*ercises 1udicial or -uasi1udicial functions in the determination of disputes bet#een employers and employees but its functions are far more comprehensi)e and e*tensi)e. !t has 1urisdiction o)er the entire 3hilippines, to consider, in)estigate, decide, and settle any -uestion, matter contro)ersy or dispute arising bet#een, and4or affecting, employers and employees or laborers, and landlords and tenants or farm'laborers, and regulate the relations bet#een them, sub1ect to, and in accordance #ith, the pro)isions of A ./0 (section .). !t shall ta2e cogni5ance for purposes of pre)ention, arbitration, decision and settlement, of any industrial or agricultural dispute causing or li2ely to cause a stri2e or loc2out, arising from differences as regards #ageshares or compensation, hours of labor or conditions of tenancy or employment, bet#een employers and employees or laborers and bet#een landlords and tenants or farm'laborers, pro)ided that the number of employees, laborers or tenants or farm'laborers in)ol)ed e*ceeds thirty, and such industrial or agricultural dispute is submitted to the ourt by the &ecretary of Labor or by any or both of the parties to the contro)ersy and certified by the &ecretary of Labor as e*isting and proper to be death #ith by the ourt for the sa2e of public interest. (&ection A, ibid.) !t shall, before hearing the dispute and in the course of such hearing, endea)or to reconcile the parties and induce them to settle the dispute by amicable agreement. (3aragraph 6, section 7, ibid.) 8hen directed by the 3resident of the 3hilippines, it shall in)estigate and study all pertinent facts related to the industry concerned or to the industries established in a designated locality, #ith a )ie# to determining the necessity and fairness of fi*ing and adopting for such industry or locality a minimum #age or share of laborers or tenants, or a ma*imum 9canon: or rental to be paid by the 9in-uilinos: or tenants or lessees to lando#ners. (&ection ;, ibid.) !n fine, it may appeal to )oluntary arbitration in the settlement of industrial disputes< may employ mediation or conciliation for that purpose, or recur to the more effecti)e system of official in)estigation and compulsory arbitration in order to determine specific contro)ersies bet#een labor and capital in industry and in agriculture. There is in reality here a mingling of e*ecuti)e and 1udicial functions, #hich is a departure from the rigid doctrine of the separation of go)ernmental po#ers. 2. T"e CIR $ree $r#* rigi%ity #$ certain )r#ce%ure re,uire*ent , but n#t $ree t# ign#re #r %i regar% $un%a*enta& an% e entia& re,uire*ent #$ %ue )r#ce inv#&ving )r#cee%ing #$ a%*ini trative c"aracter The !" is not narro#ly constrained by technical rules of procedure, and the Act re-uires it to 9act according to 1ustice and e-uity and substantial merits of the case, #ithout regard to technicalities or legal forms and shall not be bound by any technical rules of legal e)idence but may inform its mind in such manner as it may deem 1ust and e-uitable.: (&ection 6/, A ./0.) !t shall not be restricted to the specific relief claimed or demands made by the parties to the industrial or agricultural dispute, but may include in the a#ard, order or decision any matter or determination #hich may be deemed necessary or e*pedient for the purpose of settling the dispute or of pre)enting further industrial or agricultural disputes. (&ection .0) And in the light of this legislati)e policy, appeals to this ourt ha)e been especially regulated by the rules recently promulgated by this ourt to carry into effect the a)o#ed legislati)e purpose. The fact, ho#e)er, that the !" may be said to be free from the rigidity of certain procedural re-uirements does not mean that it can, in 1usticiable cases coming before it, entirely ignore or disregard the fundamental and essential re-uirements of due 3rocess in trials and in)estigations of an administrati)e character. -. Car%ina& )ri*ary rig"t re )ecte% in a%*ini trative )r#cee%ing ' Gui%e&ine a. "ight to a hearing #hich includes the right of the party interested or affected to present his o#n case and submit e)idence in support thereof. The liberty and property of the citi5en shall be protected by the rudimentary re-uirements of fair play. b. The tribunal must consider the e)idence presented, after t the party is gi)en an opportunity to present his case and to adduce e)idence tending to establish the rights #hich he asserts. The right to adduce e)idence, #ithout the corresponding duty on the part of the board to consider it, is )ain. &uch right is conspicuously futile if the person or persons to #hom the e)idence is presented can thrust it aside #ithout notice or consideration. c. 8ile the duty to deliberate does not impose the obligation to decide right, it does imply a necessity #hich cannot be disregarded, namely, that of ha)ing something to support its decision. A decision #ith absolutely nothing to support it is a nullity, a place #hen directly attached. This principle emanates from the more fundamental principle that the genius of constitutional go)ernment is contrary to the )esting of unlimited po#er any#here. La# is both a grant and a limitation upon po#er. d. $ot only must there be some e)idence to support a finding or conclusion but the e)idence must be 9substantial.:

Marianne L. Lalwani 2 Administrative Law

&ubstantial e)idence is more than a mere scintilla. !t means such rele)ant e)idence as a reasonable mind might accept as ade-uate to support a conclusion.: The statute pro)ides that =the rules of e)idence pre)ailing in courts of la# and e-uity shall not be controlling.> The ob)ious purpose of this and similar pro)isions is to free administrati)e boards from the compulsion of technical rules so that the mere admission of matter #hich #ould be deemed incompetent in 1udicial proceedings #ould not in)alidate the administrati)e order. But this assurance of a desirable fle*ibility in administrati)e procedure does not go so far as to 1ustify orders #ithout a basis in e)idence ha)ing rational probati)e force. ?ere uncorroborated hearsay or rumor does not constitute substantial e)idence. e. The decision must be rendered on the e)idence presented at the hearing, or at least contained in the record and disclosed to the parties affected. @nly by confining the administrati)e tribunal to the e)idence disclosed to the parties, can the latter be protected in their right to 2no# and meet the case against them. !t should not, ho#e)er, detract from their duty acti)ely to see that the la# is enforced, and for that purpose, to use the authori5ed legal methods of securing e)idence and informing itself of facts material and rele)ant to the contro)ersy. Boards of in-uiry may be appointed for the purpose of in)estigating and determining the facts in any gi)en case, but their report and decision are only ad)isory. (&ection ,, A ./0.) The !" may refer any industrial or agricultural dispute of any matter under its consideration or ad)isement to a local board of in-uiry, a pro)incial fiscal, a 1ustice of the peace or any public official in any part of the 3hilippines for in)estigation, report and recommendation, and may delegate to such board or public official such po#ers and functions as the !" may deem necessary, but such delegation shall not affect the e*ercise of the ourt itself of any of its po#ers (&ection ./) f. The !" or any of its 1udges, therefore, must act on its or his o#n independent consideration of the la# and facts of the contro)ersy, and not simply accept the )ie#s of a subordinate in arri)ing at a decision. !t may be that the )olume of #or2 is such that it is literally impossible for the titular heads of the !" personally to decide all contro)ersies coming before them. There is no statutory authority to authori5e e*aminers or other subordinates to render final decision, #ith right to appeal to board or commission, to sol)e the difficulty. g. The !" should, in all contro)ersial -uestions, render its decision in such a manner that the parties to the proceeding can 2no# the )ario issues in)ol)ed, and the reasons for the decisions rendered. The performance of this duty is inseparable from the authority conferred upon it. 4. .e+ tria& grante% un%er circu* tance The interest of 1ustice #ould be better ser)ed if the mo)ant is gi)en opportunity to present at the hearing the documents referred to in his motion and such other e)idence as may be rele)ant to the main issue in)ol)ed. The legislation #hich created the ourt of !ndustrial "elations and under #hich it acts is ne#. The failure to grasp the fundamental issue in)ol)ed is not entirely attributable to the parties ad)ersely affected by the result.