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Administra*ve

Law and
Administra*ve Agencies

Alberto C. Agra
Ateneo Law School
May 1, 2015

Administra*ve Law
Deni*on: All the laws that regulate or
control the administra<ve organiza<on and
opera<ons of the government
Classica*ons:
1. Internal and External Administra<on
2. Law that Controls and those made by
Administra<ve Agencies
3. Substan<ve or Procedural Administra<ve Law
4. General or Special Administra<ve Law
Administra<ve Law Reviewer, Agra

Administra*ve Agencies (AAs)


An agency which exercises some signicant
form or combina<on of execu<ve, legisla<ve
or judicial powers (4th Branch)
Include boards, commissions, departments,
bureaus, oces, authori<es, government
corpora<ons, government instrumentali<es,
and local governments
Ra<onale: complex, diverse and specialized
concerns
Administra<ve Law Reviewer, Agra

Crea*on of AAs
1. Cons<tu<on
2. Congress (Law; GOCCs economically viable and
common good; LGUs - plebiscite)
3. President (Execu<ve Order; by authority under the
Cons<tu<on or of law)
4. Supreme Court (determines classica<on)
5. Administra<ve Agencies themselves (Ar<cles of
Incorpora<on; by authority of law)
6. Local Governments (Ordinance; by authority of law)
Administra<ve Law Reviewer, Agra

Government Bureaucracy
o Administra<ve Agency/
Government Agencies
o GOCCs (original charter/
chartered)
o GOCCs (special charter/
non-chartered)
o Government
Instrumentali<es
o Government Financial
Ins<tu<on

o Public Corpora<on
o Public Oces
o Na<onal Government
Agency
o Quasi-Corpora<on
o Quasi-Public Corpora<on
o Municipal Corpora<on
Proper/ Local Government
Unit
o Quasi-Municipal
Corpora<on

Administra<ve Law Reviewer, Agra

GOCC vs. GI
GOCC

GI

1. Organized as stock or
non-stock corpora<on
2. Public character of its
func<on
3. Government ownership
over the same
4. Created by law or under
Corpora<on Code

1. Agency of the na<onal government


2. Not integrated within the
department framework
3. Vested with special func<ons or
jurisdic<on by law
4. Endowed with some if not all
corporate powers
5. Administering special funds
6. Enjoying opera<onal autonomy,
usually through a charter
7. Not a corpora<on
8. Created by law only (not under
Corpora<on Code)

Administra<ve Law Reviewer, Agra

Recent Jurisprudence
En*ty

Characteriza*on

Manila Interna<onal
Airport Authority

Created under an Execu<ve Order


GI; not a GOCC since neither stock nor non-stock

Manila Economic and


Cultural Oce

Created under Corpora<on Code as non-stock corpora<on


Not a GOCC (not owned by Government)
Not a GI (since incorporated under Corpora<on Code)
Sui Generis

Boy Scouts of the


Philippines

Created a corpora<on under Special Law (Commonwealth Act)


Juridical person under Civil Code (other corpora<ons with public purpose)
Public func<on - vital role of the youth
GOCC and GI adached agency; need not meet twin test (economic viability and control/
ownership test)

Veterans Federa<on of
the Philippines

Created under RA 2640 and registered with the SEC


Public corpora<on per Charter; Adjunct of government; Classied as GOCC to be priva<zed
Sovereign func<on; Control and supervision of DND; DBM can in the future allocate funds

Philippine Fisheries
Development Authority

Created under PD 977 as amended by EO 772


GI; not a GOCC (has capital stock, but not divided into shares)

Leyte Metropolitan Water


District

Created pursuant to PD 198


GOCC with an original charter (since not under Corpora<on Code, not a private corpora<on)
Quasi-Public under Charter

Philippine Economic Zone


Authority

GI since not integrated within the department framework but is an agency adached to the DTI
Administra<ve Law Reviewer, Agra

Rules
1. All AAs are POs, not all POs are AAs (e.g. Congress,
Courts)
2. All AAs are GAs, All GAs are AAs (under GCG Act)
3. All PCs are AAs, not all AAs are not PCs (e.g.
Departments, GIs and Commissions)
4. GOCCs are Corpora<ons, GIs are not; GOCCs
cannot be GIs (except BSP)
5. GOCCs, not GIs, must meet twin cons<tu<onal test
of economic viability and ownership/ control
6. There are chartered and non-chartered GOCCs
Administra<ve Law Reviewer, Agra

Rules
7. All Quasi-Corpora<ons are GOCCs, All GOCCs
are Quasi-Corpora<ons; GIs are not QCs since
they are not corpora<ons
8. GOCC-GI dis<nc<on maders:
a. Local taxa<on (PFDA and MIAA)
b. COA jurisdic<on (BSP, WD and MECO)
c. Rela<onship either adachment, control or
supervision (VFP and BSP)
Administra<ve Law Reviewer, Agra

Charter: Enabling Instrument


1. Name
2. Principles
3. Mandate and
Purpose
4. Powers
5. Du<es and
Responsibili<es

6. Rela<onships
7. Jurisdic<on
8. Structure
9. Budget
10.Dissolu<on

Administra<ve Law Reviewer, Agra

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Characteris*cs of AAs
1.
2.
3.
4.
5.
6.
7.
8.
9.

Size
Specializa<on/ Func<ons
Territory
Responsibility for Results
Variety of Administra<ve Du<es
Delegated Authori<es
Accountability
Rela<onships
Capitaliza<on/ Funding
Administra<ve Law Reviewer, Agra

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Types of AAs
1.
2.
3.
4.

Oers gratui<es, grants or privileges (PAO)


Performs specic governmental func<ons (BIR)
Undertakes public service (MWSS)
Regulates businesses aected with public
interest (NTC)
5. Exercises police power to regulate private
businesses (SEC)
6. Resolves controversies (NLRC)
Administra<ve Law Reviewer, Agra

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Administra*ve Rela*onship
Areas: policies, opera<ons, budget, decisions, day-
to-day, policy and program coordina<on
Types:
1. Supervision and Control (subs5tute judgment; rules
on how to execute act; alter-ego; e.g. President and
DOTC)
2. Administra<ve Supervision (oversight, reports, proper
performance; not over appointments and contracts,
not reverse decisions; e.g. Department and Regulatory
Agencies; Province and Component City)
3. Adachment (sit in Board; repor5ng; not day-to-day;
e.g. DPWH and MWSS)
Administra<ve Law Reviewer, Agra

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Powers
AAs possess Delegated, not Inherent, Powers
Subordinate, not Superior, to Enabling
Instrument
Liberal, not Strict, Interpreta<on of Powers
AAs cannot prohibit what law does not prohibit
Basic Powers
1. Inves<ga<ve
2. Rule-Making or Quasi-Legisla<ve
3. Adjudica<ve or Quasi-Judicial
Administra<ve Law Reviewer, Agra

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Delega*on of Powers
Potestas delegata non potest delegari
Excep<ons:
President tari and emergency
Local Governments
Peoples Ini<a<ve
Administra<ve Agencies

Tests of Valid Delega<on:


Completeness (the what); and
Sucient Standards (may be broad; need not be
stated in law); not vague
Administra<ve Law Reviewer, Agra

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Inves*ga*ve Powers
partakes of judicial discre<on, not judicial
func<on
Express Grant
Express or Implied
1. Contempt
1. Clearance
2. Subpoena
2. Fact-Finding
3. Search
3. Ocular Inspec<on
(Presence of counsel
4. Visitorial
not required)
Administra<ve Law Reviewer, Agra

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Rule-Making
Deni<on: Power to Issue Rules/ Fill in details/
How (notWhat) a Law will be implemented
Nature: Inferior/ Subordinate, i.e., cannot
change, amend or conict with charter or law
Ra<onale:
1.
2.
3.
4.

regula<on highly complex


future situa<ons cannot be fully an<cipated
prac<cability
expediency
Administra<ve Law Reviewer, Agra

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Rule-Making
Eects
1. Force and eect of law
2. Interpreta<ons persuasive (not controlling)
3. Presumed legal and cons<tu<onal
4. Opera<ve eect
5. Subject to judicial review
6. Subject to repeal and amendment
7. Prospec<ve applica<on
Administra<ve Law Reviewer, Agra

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Rule-Making
Requisites
1. Authority: by authority of law
2. Substance: not contrary to law
3. Procedure: properly promulgated; publica<on
and hearing, if required by law
4. Issuer: Issued by proper authority
5. Standard: Reasonable
o
o
o
o

Rela<on to purpose
Supported by good reasons
Not arbitrary
Free from legal inrmi<es

Administra<ve Law Reviewer, Agra

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Types of Rules (PIPICS)


Type

Grant

Publica1on

Supplementary

Required

Interpreta*ve

Express (E)
or Implied (I)
E or I

Not Required

Con*ngent

Required

Penal

Required

Procedural

E or I

Required

Internal

E or I

Not Required

Administra<ve Law Reviewer, Agra

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Invalid Exercise: Rule-Making


Law
Creates
Strict Requirements
No Requirement
Stated Requirement
Enumera<on Exclusive
No Classica<on
Limited Applica<on
Fixed Period
Con<nue Prac<ce

Rule
Abolishes
Liberalizes Requirements
Imposes Requirement
Alters/ Deletes Requirement
Adds/ Deletes Requirement
Discriminates/ Classies
Expands Applica<on
Changes Period
Discon<nues Prac<ce

Grant Power

Nullies Power
Administra<ve Law Reviewer, Agra

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Quasi-Judicial Power
Grant of Power: Express
Deni<on: Deciding controversies, resolving
conic<ng claims and posi<ons
Extent: Typically, only ques<ons of fact
(ques<ons of law or mixed if expressly
permided under the Charter/ law)
Limita<on: Subject to Judicial Review
Administra<ve Law Reviewer, Agra

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Classes: Quasi-Judicial Power


1. Direc<ng (correc<ve/ award), e.g., backwages
2. Enabling (grant/ permit), e.g., grant of
franchise
3. Dispensing (exempt/ relieve), e.g., amnesty
4. Summary (compel/ force), e.g., cease and
desist
5. Equitable
Administra<ve Law Reviewer, Agra

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Quasi-Legisla*ve or -Judicial
1. Applica<on for rate increase by a par<cular
public u<lity (QJ)
2. Increase rates for all buses (QL)
3. Sepng qualica<on standards (QL)
4. Disqualifying a candidate (QJ)
5. Procedures for applying for a franchise (QL)
6. Revoking a specic franchise (QJ)
Administra<ve Law Reviewer, Agra

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Quasi-Legisla*ve and -Judicial


Topic

Quasi-Judicial

Quasi-Legisla1ve

Grant

E or I

Par<es

Par<cular

All/ Sectors

Adversarial

Yes

No

Controversy

Exists

None

No<ce and Hearing

Required

Not Required (unless law


requires; radical change)

Primary/
Exhaus<on

Applicable

Not Applicable

Time

Past/ Present

Future

Publica<on

Not Required

Depends

Res Judicata

Applicable

Not Applicable

Administra<ve Law Reviewer, Agra

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Administra*ve Proceedings
Character: Adversarial, quasi-judicial, civil
Jurisdic<on: Dened by Law/ Charter (not by
AA or par<es)
Nature: Power to Adjudicate Not Delegable
(power to hear/ receive evidence can be
delegated)
Due Process (DINA): Decision, Impar<al
Tribunal, No<ce and Appear/ Defend
Procedure: reasonable, due process, meet
ends, published
Administra<ve Law Reviewer, Agra

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Administra*ve Proceedings
No<ce and Hearing
o Required (actual or construc<ve)
o Subject to waiver and estoppel
o Curable (i.e., subsequently heard, ling of mo<on of
reconsidera<on, oral arguments)
o Posi<on papers allowed
o Not required when privilege, abatement, condi<onal
right, legisla<ve or administra<ve

Right to counsel not impera<ve


Full Hearing: All Claims, Rebudal, Evidence and
Cross-Examina<on (dispensable)
Administra<ve Law Reviewer, Agra

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Administra*ve Proceedings
Evidence
oSubstan<al (unless law provides dierent
quantum)
oOcular allowed (when relevant)
oAdop<on of reports allowed

Decision: Bases, Form (need not be full-


blown), Par<es, All Issues and Evidence
Enforcement: by AA if authorized by law (if
not, courts)
Administra<ve Law Reviewer, Agra

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Administra*ve Findings
AA ndings are not conclusive and nal before
courts
Given weight, not disturbed unless:
1.
2.
3.
4.
5.
6.

Not based on substan<al evidence


Fraud, mistake, collusion
Palpable errors
Grave abuse of discre<on
Mis-apprecia<on of evidence
Conict in factual ndings
Administra<ve Law Reviewer, Agra

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Judicial Review
1.
2.
3.
4.
5.
6.

Cer<orari
Prohibi<on
Injunc<on
Mandamus
Declaratory Relief
Appeal

Administra<ve Law Reviewer, Agra

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Scenarios
Higher/
Level 2

AA

Lower/
Level 1
1.
2.
3.
4.

Courts

No actual injury, led case in AA or Court


Instead of ling case before AA, led directly with Court
While case pending before AA Level 2, led case in Court
Arer AA Level 1 decides case, led case before Court
Administra<ve Law Reviewer, Agra

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Defenses: Judicial Review Premature


1. Doctrine of Finality of Administra*ve Ac*on:
Decision of AA must be nal before Judicial
Review; Excep<ons:

o
o
o
o

interlocutory orders
protect rights
violate Cons<tu<on
excessive use of power

2. Doctrine of Primary Jurisdic*on: AA


concurrent with courts; needs administra<ve
discre<on and exper<se of AA
Administra<ve Law Reviewer, Agra

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Defenses: Judicial Review Premature


3. Doctrine of Ripeness for Review: Controversy
must be real, present or imminent (not
future/ imaginary/ remote)

4. Doctrine of Exhaus*on of Administra*ve
Remedies: exhaust all administra<ve
remedies before recourse to courts, condi<on
precedent, with some 19 excep<ons, namely:
JPLCS DRIED DARN CLRNT
Administra<ve Law Reviewer, Agra

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Excep*ons: Non-Exhaus*on
JPLCS
Ques<ons essen<ally
Judicial
Administra<ve Remedy
is Permissive
Pure ques<on of Law
Cons<tu<onality
Small amount that
exhaus<on will be
costly

DRIED
Uder disregard for Due
Process
No plain speedy
Remedy
Strong public Interest
Estoppel
Con<nued and
unreasonable Delay

Administra<ve Law Reviewer, Agra

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Excep*ons: Non-Exhaus*on
DARN
Irreparable Damage by
party
Alter Ego Bears
approval of President
No administra<ve
Review is provided
Insistence on
exhaus<on will lead
to Nullica<on of
claim

CLRNT
Civil ac<on for damages
Land not part of public
domain
Special Reasons
demanding
immediate judicial
relief
No Decision rendered
Transcendental issues

Administra<ve Law Reviewer, Agra

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Compare/ Contrast the Defenses


Defenses/
Aspects
Concept

Finality of
Admin .Ac*on
AA not yet nal
(pending)

Primary Jurisdic*on

Concurrent AA and
AA process (all levels) not
st
court; AA 1 instance yet completed

What has to be Await decision of AA Allow AA to assume


done
jurisdic<on
Pendency
before AA

While pending in an No AA case yet; led


AA level, go to court with court directly

W/ excep<ons

Yes

Excep<ons

Interlocutory
Preserve status quo
Protect rights
Violate Cons<tu<on
Great damage
Excess power

Applicability

QJ

Non-Exhaus*on of Admin.
Remedies

No controversy (future,
imaginary, remote)

Complete whole process


(all levels)

Await mader to
become real/ present or
imminent

Process complete at 1
level, not elevate to next
level, then le with court

Pending or no pending
AA case

Yes
Judicial discre<on
Ques<on lf law
AA has no
jurisdic<on

Ripeness for Review

Yes
Pure ques<on of law
Transcendental issue
Cons<tu<onal issue
No adequate remedy
Alter-ego
Public interest

QJ
Administra<ve Law Reviewer, Agra

QJ

No
None
(Declaratory Relief)

QJ and QL
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THANK YOU. GOOD LUCK.

Administra<ve Law Reviewer, Agra

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