issued for its implementation.
49 Indeed, administrative
ADDITIONAL CASE FOR ADMIN
5. Metropolitan Bank and Trust Company vs.
NWPC and RTWPB Case Digest
Metropolitan Bank and Trust Company vs. NWPC
and RTWPB
G.R. No.144322
February 6, 2007
Facts: On October 17, 1995, the Regional Tripartite
Wages and Productivity Board, Region II,
Tuguegarao, Cagayan (RTWPB), by virtue of
Republic Act No. 6727 (R.A. No. 6727), otherwise
known as the Wage Rationalization Act, issued Wage
Order No. R02-03 (Wage Order), as follows: Section
1. Upon effectivity of this Wage Order, all
employees/workers in the private sector throughout
Region II, regardless of the status of employment are
granted an across-the-board increase of P15.00
daily.
The Wage Order was published in a newspaper of
general circulation on December 2, 1995 and took
effect on January 1, 1996. Its Implementing Rules were
approved on February 14, 1996. Per Section 13 of the
Wage Order, any party aggrieved by the Wage Order
may file an appeal with the National Wages and
Productivity Commission (NWPC) through the RTWPB
within 10 calendar days from the publication of the
Wage Order.
Banker’s Council in a letter inquiry to NWPC
requested for ruling to seek exemption from
coverage of the wage order since the members
bank are paying more than the regular wage.
NWPC replied that the member banks are covered by
the wage order and does not fall with the exemptible
categories.
In another letter inquiry, Metrobank asked for the
interpretation of the applicability of the wage order.
NWPC referred it to RTWPB. RTWPB in return clarified
that establishments in Region 2 are covered by the
wage order. Petitioner filed a petition with the CA and
denied the petition.
Issue: Whether or not the wage order is void thus it
has no legal effect and the RTWPB acted in excess of
its jurisdiction.
Ruling: In no uncertain terms must it be stressed that
the function of promulgating rules and regulations may
be legitimately exercised only for the purpose of
carrying out the provisions of a law. The power of
administrative agencies is confined to implementing
the law or putting it into effect. Corollary to this
guideline is that administrative regulation cannot
extend the law and amend a legislative enactment.48 It
is axiomatic that the clear letter of the law is controlling
and cannot be amended by a mere administrative rule
or executive acts, orders, and regulations shall be valid
only when they are not contrary to the laws or the
Constitution.50
Where the legislature has delegated to an executive or
administrative officers and boards authority to
promulgate rules to carry out an express legislative
purpose, the rules of administrative officers and
boards, which have the effect of extending, or which
conflict with the authority-granting statute, do not
represent a valid exercise of the rule-making power but
constitute an attempt by an administrative body to
legislate.51
It has been said that when the application of an
administrative issuance modifies existing laws or
exceeds the intended scope, as in this case, the
issuance becomes void, not only for being ultra vires,
but also for being unreasonable.52
The Court finds that Section 1, Wage Order No. R02-
03 is void insofar as it grants a wage increase to
employees earning more than the minimum wage
rate; and pursuant to the separability clause of the
Wage Order, Section 1 is declared valid with respect
to employees earning the prevailing minimum wage
rate.
The powers of NWPC are enumerated in ART. 121.
Powers and Functions of the Commission. - The
Commission shall have the following powers and
functions: (d) To review regional wage levels set by the
Regional Tripartite Wages and Productivity Boards to
determine if these are in accordance with prescribed
guidelines and national development plans; (f) To
review plans and programs of the Regional Tripartite
Wages and Productivity Boards to determine whether
these are consistent with national development plans;
(g) To exercise technical and administrative
supervision over the Regional Tripartite Wages and
Productivity Boards.
R.A. No. 6727 declared it a policy of the State to
rationalize the fixing of minimum wages and to promote
productivity-improvement and gain-sharing measures
to ensure a decent standard of living for the workers
and their families; to guarantee the rights of labor to its
just share in the fruits of production; to enhance
employment generation in the countryside through
industrial dispersal; and to allow business and industry
reasonable returns on investment, expansion and
growth.
In line with its declared policy, R.A. No. 6727 created
the NWPC, vested with the power to prescribe rules
and guidelines for the determination of appropriate
minimum wage and productivity measures at the
regional, provincial or industry levels; and authorized
the RTWPB to determine and fix the minimum wage
rates applicable in their respective regions, provinces,
or industries therein and issue the corresponding wage internal administration;
orders, subject to the guidelines issued by the NWPC. d. an agency process for the formulation of a final
Pursuant to its wage fixing authority, the RTWPB may order.
issue wage orders which set the daily minimum wage 4. Under the Administrative Code, “adjudication”
rates, based on the standards or criteria set by Article means:
124 of the Labor Code. a. whole or any part of any agency permit, certificate,
or other form of permission, or regulation of the
The Court declared that there are two ways of fixing the exercise of a right or privilege;
minimum wage: the "floor-wage" method and the b. an agency process for the formulation of a final
"salary-ceiling" method. The "floor-wage" method order;
involves the fixing of a determinate amount to be added c. agency process for the formulation, amendment, or
to the prevailing statutory minimum wage rates. On the repeal of a rule;
other hand, in the "salary-ceiling" method, the wage d. agency process involving the grant, renewal, denial,
adjustment was to be applied to employees receiving a revocation or conditioning of a license.
certain denominated salary ceiling. In other words, 5. The requirement of the Administrative Code on
workers already being paid more than the existing “public participation” is that, if not otherwise required by
minimum wage (up to a certain amount stated in the law, an agency shall:
Wage Order) are also to be given a wage increase. a. in all cases, publish or circulate notices of proposed
rules and afford interested parties the opportunity to
In the present case, the RTWPB did not determine or submit their views prior to the adoption of any rule;
fix the minimum wage rate by the "floor-wage b. in all clear and proper cases, publish or circulate
method" or the "salary-ceiling method" in issuing notices of proposed rules and afford interested parties
the Wage Order. The RTWPB did not set a wage level the opportunity to submit their views prior to the
nor a range to which a wage adjustment or increase adoption of any rule;
shall be added. Instead, it granted an across-the-board c. as far as practicable, publish or circulate notices of
wage increase of P15.00 to all employees and workers proposed rules and afford the party-list parties the
of Region 2. In doing so, the RTWPB exceeded its opportunity to submit their views prior to the adoption
authority by extending the coverage of the Wage Order of any rule;
to wage earners receiving more than the prevailing d. as far as practicable, publish or circulate notices
minimum wage rate, without a denominated salary of proposed rules and afford interested parties the
ceiling. As correctly pointed out by the OSG, the Wage opportunity to submit their views prior to the
Order granted additional benefits not contemplated by adoption of any rule.
R.A. No. 6727. 6. Under the Administrative Code, in the fixing of rates,
no rules or final order shall be valid unless:
COMPILATION OF BAR EXAMS QUESTIONS IN a. the proposed rates shall have been submitted to the
ADMINISTRATIVE LAW U.P. Law Center for publication at least two weeks
MULTIPLE CHOICE QUESTIONS before the first hearing thereon;
1. One of the cardinal primary due process rights in b. the proposed rates shall have been published in the
administrative proceedings is that evidence must be Official Gazette at least two weeks before the final
“substantial.” “Substantial evidence” is: hearing thereon;
a. less than a mere scintilla; c. the proposed rates shall have been published in
b. less than preponderant scintilla; a newspaper of general circulation at least two
c. more than a glint of scintilla; weeks before the first hearing thereon;
d. more than a mere scintilla. d. the proposed rates shall have been published in a
2. A statutory provision requiring the President or an newspaper of general circulation at least two weeks
administrative agency to present the proposed before the final hearing thereon.
implementing rules and regulations of a law to 7. In the judicial review of decisions of administrative
Congress which by itself or through a committee agencies, the Administrative Code requires that the
formed by it, retains a “right” or “power” to approve or review shall be made:
disapprove such regulations before they may take a. on the basis of the pleadings taken as a whole;
effect, is a: b. on the basis of the record taken as a whole;
a. legislative encroachment; c. on the basis of the evidence taken as a whole;
b. legislative veto; d. on the basis of the memoranda taken as a whole.
c. legislative oversight; 8. In the judicial review of decisions of administrative
d. legislative scrutiny. agencies, the Administrative Code requires that,
3. Which one of the enumeration below does not come except when specifically provided otherwise by law:
under the Administrative Code definition of a “rule”: a. the findings of law of agency when supported by
a. agency statement of general applicability that substantial evidence, shall be final;
implements or interprets a law; b. the findings of fact of the agency when supported by
b. fixes and describes the procedures in or practice preponderant evidence, shall be final;
requirements of, an agency; c. the findings of fact of the agency when
c. includes memoranda and statements concerning supported by substantial evidence, shall be final;
d. the findings of law of the agency when supported by
credible evidence, shall be final.
ESSAY QUESTIONS
I
During his campaign sortie in Barangay Salamanca,
Mayor Galicia was arrested at a PNP checkpoint for
carrying highpowered firearms in his car. He was
charged and convicted for violation of the COMELEC
gun ban. He did not appeal his conviction and instead
applied for executive clemency. Acting on the favorable
recommendation of the Board of Pardons and Parole,
the President granted him pardon. Is he eligible to run
again for an elective position? Explain briefly. (5%)
II
To instill religious awareness in the students of Doña
Trinidad High School, a public school in Bulacan, the
Parent- Teacher’s Association of the school
contributed funds for the construction of a grotto and a
chapel where ecumenical religious services and
seminars are being held after school hours. The use of
the school grounds for these purposes was questioned
by a parent who does not belong to any religious group.
As his complaint was not addressed by the school
officials, he filed an administrative complaint against
the principal before the DECS. Is the principal liable?
Explain briefly. (5%)
III
Congressman Nonoy delivered a privilege speech
charging the Intercontinental Universal Bank (IUB) with
the sale of unregistered foreign securities, in violation
of R.A. 8799. He then filed, and the House of
Representatives unanimously approved, a Resolution
directing the House Committee on Good Government
(HCGG) to conduct an inquiry on the matter, in aid of
legislation, in order to prevent the recurrence of any
similar fraudulent activity.
The HCGG immediately scheduled a hearing and
invited the responsible officials of IUB, the Chairman
and Commissioners of the Securities and Exchange
Commission (SEC), and the Governor of the Bangko
Sentral ng Pilipinas (BSP). On the date set for the
hearing, only the SEC Commissioners appeared,
prompting Congressman Nonoy to move for the
issuance of the appropriate subpoena ad testificandum
to compel the attendance of the invited resource
persons.
The IUB officials filed suit to prohibit HCGG from
proceeding with the inquiry and to quash the
subpoena, raising the following arguments:
a. The subject of the legislative investigation is also the
subject of criminal and civil actions pending before the
courts and the prosecutor’s office; thus, the legislative
inquiry would preempt judicial action; (3%) and
b. Compelling the IUB officials, who are also
respondents in the criminal and civil cases in court, to
testify at the inquiry would violate their constitutional
right against self-incrimination. (3%)
Are the foregoing arguments tenable? Reasons.
c. May the Governor of the BSP validly invoke
executive privilege and, thus, refuse to attend the
legislative inquiry? Why or why not? (3%)
IV
Maximino, an employee of the Department of
Education, is administratively charged with dishonesty
and gross misconduct. During the formal investigation
of the charges, the Secretary of Education preventively
suspended him for a period of sixty (60) days. On the
60th day of the preventive suspension, the Secretary
rendered a verdict, finding Maximino guilty, and
ordered his immediate dismissal from the service.
Maximino appealed to the Civil Service Commission
(CSC), which affirmed the Secretary’s decision.
Maximino then elevated the matter to the Court of
Appeals (CA). The CA reversed the CSC decision,
exonerating Maximino. The Secretary of Education
then petitions the Supreme Court (SC) for the review of
the CA decision.
a. Is the Secretary of Education a proper party to seek
the review of the CA decision exonerating Maximino?
Reasons. (2%)
b. If the SC affirms the CA decision, is Maximino
entitled to recover back salaries corresponding to the
entire period he was out of the service? Explain your
answer. (3%)
V
Angelina, a married woman, is a Division Chief in the
Department of Science and Technology. She had been
living with a married man, not her husband, for the last
fifteen (15) years. Administratively charged with
immorality and conduct prejudicial to the best interest
of the service, she admits her live-in arrangement, but
maintains that this conjugal understanding is in
conformity with their religious beliefs. As members of
the religious sect, Yahweh’s Observers, they had
executed a Declaration of Pledging Faithfulness which
has been confirmed and blessed by their Council of
Elders. At the formal investigation of the administrative
case, the Grand Elder of the sect affirmed Angelina’s
testimony and attested to the sincerity of Angelina and
her partner in the profession of their faith. If you were
to judge this case, will you exonerate Angelina?
Reasons. (3%)
VI
Abdul ran and won in the May 2001, 2004 and 2007
elections for Vice-Governor of Tawi-Tawi. After being
proclaimed Vice-Governor in the 2004 elections, his
opponent, Khalil, filed an election protest before the
Commission on Election. Ruling with finalty on the
protest, the COMELEC declared Khalil as the duly
elected Vice-Governor though the decision was
promulgated only in 2007, when Abdul had fully served
his 2004-2007 term and was in fact already on his
2007-2010 term as Vice Governor.
a. Abdul now consults you if the can still run for Vice-
Governor of Tawi-Tawi in the forthcoming May 2010
election on the premise that he could not be considered
as having served as Vice-Governor from 2004-2007
because he was not duly elected to the post, as he XII
assumed office merely as a presumptive winner and Pedro Masipag filed with the Ombudsman a complaint
that presumption was later overturned when against RTC Judge Jose Palacpac with violation of
COMELEC decided with finality that had lost in the May Article 204 of the Revised Penal Code for knowingly
2004 elections. What will be your advice? (3%) rendering an unjust judgment in Criminal Case No.
b. Abdul also consults you whether his political party 617. Judge Palacpac filed a motion with the
can validly nominate his wife as subtitute candidate for Ombudsman to refer the complaint to the Supreme
Vice-Mayor of Tawi-Tawi in May 2010 elections in case Court to determine whether an administrative aspect
the COMELEC disqualifies him and denies due course was involved in the said case. The Ombudsmanss
to or cancels his certificate of candidacy in view of a denied the motion on the ground that no administrative
false material representation therein.What will be your case against Judge Palacpac relative to the decision in
advice? (3%) Criminal Case No. 617 was filed and pending in his
office. State with reasons whether the Ombudsman’s
ruling is correct. (4%)
VIII XII
The 1st Legislative District of South Cotabato is
composed of General Santos and three municipalities
including Polomolok. During the canvassing
proceedings before the District Board of Canvassers in
connection with the 2007 congressional election,
candidate MP objected to the certificate pf canvass for
Polomolok on the ground that it was obviously
manufactured, submitting as evidence the affidavit of a
mayoralty candidate of Polomolok. The certificate of
canvass for General Santos was likewise objected to
by MP on the basis of the confirmed report of the local
NAMFREL that 10 election returns from non-existent
precincts were included in the certificate. MP moved
that the certificate of canvass for General Santos be
corrected to exclude the the result from the non-
existent precincts. The District Board of Canvassers
denied both objections and ruled to include the
certificate of canvass. May MP appeal the rulings to the
COMELEC? Explain. (6%)
IX
On August 8, 2008 the Governor of Bohol died and
Vice-Governor Cesar succeeded him by operation of
law. Accordingly, Benito, the highest ranking member
of the Sangguniang Panlalawigan was elevated to the
position of Vice-Governor. By the elevation of Benito to
the office of Vice-Governor, a vacancy in the
Sangguniang Panlalawigan was created.
How should the vacancy be filed? (3%)
– X
The Provincial Governor of Bataan requested the
Department of Budget and Management (DBM) to
release its Internal Revenue Allocation (IRA) of P100
million for the current budget year. However, the
General Appropriations Act provided that the IRA may
be released on Iy if the province meets certain
conditions as determined by an Oversight Council
created by the President.
a. Is this requirement valid?
b. The Provincial Governor is a party-mate of the
President. May the Bataan Representative instead file
a petition to compel the DBM to release the funds?

Xi
1. What is a quasi-judicial body or agency? 2.5%
CHAPTER I: CONCEPTS
OFFICE – POSITION OR FUNCTION by virtue of
which a person has some employment in the affairs of
another whether:
- The incumbent is selected by appointment or
by election, or
- whether he is appointed during the pleasure
of the appointing power or for a fixed term.
Section 2(9) of the 1987 Administrative Code of the
Philippines provides that an ”[o]ffice refers, within the
framework of governmental organization, to any major
functional unit of a department or bureau including
regional offices. It may also refer to any position held
or occupied by individual persons, whose functions are
defined by law or regulation.”
NOT PROPERTY
-Holder subject to removal or suspension according to
law
-Holder without vested right in any public office.
-Holder’s right in nature of privilege entitled to
protection.
-Holder’s right personal to him.
Public office is not property of the office holder within
the meaning and contemplation of the due process
requirements of the constitution.
NOT A CONTRACT
-Created no contractual relation between holder and
the public.
-Exists by virtue of some law.
-Generally entitles holder to compensation

PUBLIC OFFICE – *Public Office is public employment, but not all public
- is the right, authority, and duty created and employment is a public office
conferred by law,
- by which for a given period, PUBLIC PUBLIC EMPLOYMENT
- either fixed by law or enduring at the OFFICE
pleasure of the appointing power,
- and individual is invested with some portion of Created by Created not by forced of law but by
the sovereign functions of the government, to
law, with
be exercised by him for benefit of the public.
duties contract of Employment
- THE INDIVIDUAL SO INVESTED IS A
PUBLIC OFFICER.
Cast upon
PUBLIC OFFICER the
- in the general everyday acceptance of the incumbent
term is a special classification of those with
involved in government at what may be
described as in an executive Involve the
classification, -merely an employee
exercise of
- whether his elevation to that status is elective
or appointive.
- His compensation is fixed by legislative Sovereign
action, state or local. power
- He does not collectively bargain for his
wages or working conditions, and in no case
that we know of are his duties and the
standard of performance therefore agreed on -public
by labor contracts. . officer

no such thing as a vested interest or an estate in an

office, or even an absolute right to hold office.
ESSENTIAL ELEMENTS OF PUBLIC OFFICE
PURPOSE AND NATURE OF PUBLIC OFFICES. (MEMORIZ THIS BY HEART)
PUBLIC TRUST C-AE-PF-Du-CP
-Holders regards as public servants 1. By the CONSTITUTION or by LAW or by
-Holders subject to highest standards of accountability AUTHORITY OF LAW.
and service 2. AUTHORITY and EXERCISE of
sovereign power.
Art. XI of the 1987 Constitution: Public office is a 3. POWER and FUNCTION are defined
public trust. Public officers and employees must at all directly by the legislature or through
times be accountable to the people, serve them with legislative authority.
the utmost responsibility, integrity, loyalty and 4. The DUTIES pertaining are performed
efficiency, act with patriotism and justice, and lead independently, without control of superior
modest lives. power other than law.
 5. CONTINUITY and PERMANENCY -LEGISLATIVE/JUDICIARY
Note: -LUCRATIVE/HONORARY
Serana case: case filed before the Sandiganbayan. -DISCRATIONARY/MINISTERIAL
She is a UP Teacher. -ELECTIVE/APPOINTIVE
The salary is just a mere incident of public office -DE JURE/DE FACTO
and not an essential element thereof. It forms no
part of an office. 1. As to nature of functions: (Co-M)
a. Civil office — it covers any kind of a
CREATION OF PUBLIC OFFICE [C-S-TB-CongPre] public office, whether executive,
1. GENERALLY legislative, or judicial.
a. By the CONSTITUTION, STATUTE, b. Military office
TRIBUNAL BODY. 2. As to creation: (CS)
b. By the Congress a. Constitutional office
i. Exigencies of government b. Statutory office
it is necessary to create 3. As to the department of government to which
and define duties. it belongs: (L-E-J)
ii. An office created by the a. Legislative office
legislature is wholly within b. Executive office
the power of the body. Can c. Judicial office
fit and abolish the office. 4. As to branch of government served: (NAT-
c. By the AUTHORITY OF LAW LOC)
i. Bureaus, agencies or office a. National office-
in executive department. b. Local office
5. As to whether exercise of discretion is
METHODS OF ORGANIZING OFFICES required: (QJO- MinOff)
a. Single head- One head assisted by a. Quasi-judicial office
subordinates. Swifter decisions and actions b. Ministerial office
but may sometimes be hastily made
-decision is faster, sometimes hastily made 6. As to compensation:
a. Lucrative office, office of profit, or
b. Board system- collegial body in formulating office coupled with an interest. It
policies and implementing programs. Mature includes any office to which salary,
studies and deliberations but may be slower compensation or fees are attached.
in responding to issues and problems. b. Honorary office no
Example: PCSO compensation.

CHARACTERISTICS MODIFICATIONS OR ABOLITION OF PUBLIC

1. PUBLIC TRUST- Public office is a public trust.
It must be discharged by the incumbent not
for his own personal aggrandizement but for
the benefit of the public.
2. PERSONAL - It is not a hereditable
possession. It is personal to the incumbent
and it is not to be considered as property
which can be passed on to his heirs.
3. NOT A PROPERTY - It is not a property and
is outside the commerce of man. It cannot be
the subject of a contract.
-but protected with security of nature
4. NOT DEPEND ON ANY CONTRACT - Not
being a property, the public office is not
protected by the due process clause. There is
no vested right to speak of. (However, due
process is available to the public officer in the
sense that he cannot be deprived of his office
without a clear expression of the legislative
will.
CLASSIFICATION OF PUBLIC OFFICE/ PUBLIC
OFFICERS
-CONSTITUTIONAL/STATUROTY
-NATIONAL/LOCAL
OFFICE [CO-CO]
1. OFFICE CREATED BY THE CONGRESS
a. The power to create an office
generally includes the power to
modify or abolish it.
b. The power is inherently legislative.
c. Power to fix the number of positions
and the salaries or emoluments of
the holders thereof and to provide
funds for the offices created.
2. OFFICES CREATED BY THE
CONSTITUTION
a. Constitutional offices may be
modified or abolished by the people
through a constitutional provision.
EXERCISES OF SOVEREIGN POWERS AND
FUNCTION.[P-O-E-A]
1. One of the most important criteria of public
office
a. exercise some portion of the
sovereign power of the State
2. Authority conferred by law
3. Extent of authority not material.
4. Presumption of regularity of official acts.
 continuing
TENURE AND DURATION [E-C-P] and
1. Existence of definite tenure not material permanent.
a. The duration of tenure need not Where The law The contract
be for a fixed period, but may be duties
at the pleasure of the appointing are
power. defined
2. Continuance of office holder not
material.
3. Permanence of office not material.

MEANING OF OFFICER/PUBLIC [O-E]

1. Officer - required by law to be elected or appointed
who a designation or title has given to him by law, and
who exercises functions concerning the public,
assigned to him by law.
2. Employee any person in the service of the
government. (Not a clerk)

OFFICER AND EMPLOYEE DISTINGUISHED [PO-

RPC]
1. In the law of public officer greater
importance, dignity, and independence of his
positions.
2. Under the Revised Penal Code.

MEANING OF PUBLIC OFFICIAL

- An officer of the Government itself, as
distinguished from the officers and employees
of instrumentalities of government.

FROM SLIDES:

PUBLIC PUBLIC CONTRACT

OFFICE
As to Incident of Originates from will of
creation sovereignty. contracting parties.
Sovereignty
is
omnipresent.
As to Originates Obligations imposed
object from will of only
contracting upon the persons who
parties. entered into the
contract.
As to A public office Limited duration and
subject embraces the specific in
matter idea of its object. Its terms
tenure, define and
duration, limit the rights and
continuity, obligations
and the duties of the parties, and
connected neither may
therewith are depart therefrom
generally without the
continuing consent of the other.
and
permanent.
and Duties that Duties are very specific
scope are generally to the
contract.