ADMINISTRATIVE LAW (2018)

Noel Ostrea, Ateneo College of Law

KEY CONCEPT OUTLINE
Definition*
AAs (administrative
agencies) & powers
! Quasi-legislative power
! Non-delegation of
legislative power and its
exceptions
! Quasi-judicial power
Procedural due process
in administrative cases
Doctrine of primary
jurisdiction
Doctrine of exhaustion
of administrative
remedies
Judicial Review
BAR SYLLABUS, ADMI LAW
General Principles ! Administrative Appeal and
Administrative Agencies Review
! Administrative Res Judicata
QL/Rule-Making Power
! Kinds of Administrative R&R
Fact-Finding, Investigative,
! Requisites for Validity
Licensing and Rate-Filing
Powers
QJ/Adjudicatory Power
! Administrative
Judicial Review
Due Process
! Doctrines of primary
jurisdiction, exhaustion and
finality of action
OTHER DEFINITION
It is the study of the law governing administrative
agencies and officials.
WHAT IS ADMINISTRATIVE LAW ?

It is that branch of modern law under which

The Executive Branch of the government, acting in a
quasi-legislative or quasi-judicial capacity
Interferes with the conduct of the individual
To promote the well-being of the community. (Dean
Roscoe Pound)
ADMINISTRATIVE AGENCIES
HOW ARE AAs CREATED?

1. The Constitution
2. Law, or
3. By authority of law
EXAMPLES of AAs (APPEAL TO CA)1
CSC2 NEA
CBAA ERB
SEC NTC
OP DAR
LRA GSIS
SSS ECC
CAB IC
IPO BOI, etc.
 RATIONALE

COMPLEXITY REQUIRES
SPECIALIZATION
RATIONALE
Due to the growing complexity of modern society, it has
become necessary to create more and more
administrative bodies to help [government] in the
regulation of its ramified activities. Specialized in the
particular field assigned to them, they [administrative
agencies] can deal with the problems thereof with more
expertise and dispatch than can be expected from the
legislature or the courts of justice.
RATIONALE (2)

This is the reason for the increasing vesture of quasi-

legislative and quasi-judicial powers in what is not
unreasonably called the fourth department of the
government.
(Solid Homes, Inc. v. Payawal)1
ADVANTAGES & DISADVANTAGES

1. Expertise in highly Narrow vision and

technical fields arrogance
2. Efficiency Trampling of individual
3. Independence rights
Lack of accountability for
actions and lawlessness
 AA BODIES, RATIONALE/TYPES1
1. Gratuity, grant or special Board of Pensions for Veterans, PVA
privilege
2. Government functions BID/BSI, CSC, BIR, BSP
3. Business service for public Philpost, MWSS, PNR, CAB
Fiber Inspection Board, IPO, IC
4. Regulating business affected with
public interest
5. Regulating businesses under
police power of State SEC, MTRCB, PRC

6. Adjust controversies due to

strong social policy NLRC, DOLE, SSS, BLS
ADMI POWERS, IN GENERAL
The term administrative power or administrative function
is a convenient rather than a technical term.
It is any power not explicitly allocated in the
Constitution, although by nature it is legislative,
executive or judicial.
It involves the exercise of judgment and discretion,
particularly when referring to the power to regulate
and control.
NON-DELEGABILITY
Potestas delegata non potest delegari
A delegated power constitutes not only a right but a
duty to be performed by the delegate through the
instrumentality of his own mind
Not to be performed through the intervening mind of
another1
NON-DELEGABILITY (2)
The power to whose judgment, wisdom and patriotism
this high prerogative has been entrusted cannot relieve
itself of the responsibility by choosing other agencies
upon which the power shall be delegated. Nor can it
substitute the judgment, wisdom and patriotism of any
other body for those to which alone/ the people have
seen fit to confide this sovereign trust.
(US v. Barrias, 1 Phil. 327 [1908].)
NON-DELEGABILITY (3)

The legislature neither must nor can

transfer the power of making laws to anybody else
or place it anywhere but where the people have.
--Locke
EXCEPTIONS TO NON-DELEGABILITY
When permitted by the Constitution
• The emergency powers clause (Art. VI); the flexible tariff clause (Art.
VI); delegation of revenue powers to LGs (Art. X); rule making power
of SC (Art. VIII) and the ConComs (Art. IX)
Local governments
Administrative agencies; Rule-making power with
the force and effect of law
OTHER AA POWER LIMITATIONS
Validity of granting statute
! Completeness1 and sufficient standard2 tests
Constitutional protections
! Due process and equal protection considerations
! Notice (by way of publication)
! Notice (by way of public hearing)
Statutory requirements for regulations
➢ Reasonableness! (Again.)
BAR Q
(1.) Thetwo accepted tests to determine whether or not there is a
valid delegation of legislative power are the Completeness
Test and the Sufficient Standard Test. Explain each. (4%)
(2005 Bar)
ADMINISTRATIVE ORGANIZATION
Office of the President Private Office
Executive Office
Staff Support System/
PMS
PAs (Presidential
Assistants or Advisers)
ADMIN ORGANIZATION (2)

Attached Executive With Prez as Chair

Agencies Under Prez’s supervision and
control
Under administrative
supervision of OP
Attached to OP for policy and
proper coordination
Not placed under any other
department
ASPECTS OF PREZ REORGANIZATION

Restructure OP by Transfer agency under

abolishing, consolidating OP to other departments
or merging units or or agencies or vice-
transferring functions versa1
Transfer OP function to
any other department or
agency or vice-versa
GOVT ORGANIZATION/AGENCY1,2
What is a:
Department? An executive department created
by law
Bureau? Any principal subdivision or unit of
any department
! May be line or staff
Regional Office? Established according to law
defining field service areas
Established only in cases of clear
District Office? necessity
GOCC
Any agency organized as a May perform governmental or
stock or non-stock proprietary functions, or both
corporation, vested with
functions relating to public
needs whether governmental
or proprietary in nature and
owned by the gov’t either
directly or thru
instrumentalities or up to at
least 50% CS
ADMINISTRATIVE SUPERVISION
Supervision means “overseeing or the power or
authority of an officer to see that their subordinate
officers perform their duties. If the latter fail or neglect
them, the former may take such action or steps as
prescribed by law to make them perform their duties”.1
Distinguished from power of control2 or power of review
PREZ POWER TO REORGANIZE1

Express power; under Section 31 of AC872,

“[T]he President, x x x in order to
achieve simplicity, economy  and efficiency, shall have
the continuing authority to reorganize the
administrative structure of the Office of the
President." For this purpose, he may transfer the
functions of other Departments or Agencies to the
Office of the President.
PREZ POWER TO REORGANIZE1

Only Section 31 of AC87 gives the President a virtual free hand

in dealing with the internal structure of the OP Proper by
allowing him to take actions as extreme as abolition,
consolidation or merger of units, apart from the less drastic
move of transferring functions and offices from one unit to
another.
PICHAY v OFC DESLA: the PAGC

Clearly, the abolition of the PAGC and the transfer of its

functions to a division specially created within the
ODESLA is properly within the prerogative of the
President under his continuing delegated legislative
authority to reorganize his own office.
TYPES OF POWERS OF ADMI AGENCIES
SCOPE OF ADMI POWERS

Express
Implied (by necessary
implication)
!Inherentpowers are
excluded
NATURE OF ADMI POWERS

1. Jurisdiction is limited
2. Construction is broad
3. Limited or defined by
law
POWERS
1. Quasi-legislative power
2. Quasi-judicial power
3. Others
! Former SOJ Neptali GONZALES has referred to these as “incidental”
powers
! E.g. Investigation, supervising, prosecuting, advising and informally
adjudicating
OTHER POWERS

Determinative Investigatory
DETERMINATIVE POWERS
1. Enabling 1. Licensing—PERMITS the doing of
an act which the law undertakes
2. Directing to regulate and which would be
unlawful without gov’t approval
3. Dispensing
2. Involves the correcting powers of
4. Summary a public utility board or
equivalent; powers of assessment
5. Equitable under revenue laws, etc.
DETERMINATIVE POWERS 2
(3.Dispensing 3. The authority to exempt from or relax a
general prohibition, or authority to relieve
4. Summary from an affirmative duty.1
5. Equitable) 4. Those that apply compulsion or force
against a person or property to effectuate
a legal purpose without a judicial warrant
to authorize such action. 2
5. To determine the law upon a particular
state of facts. 3
SCOPE OF INVESTIGATORY POWERS
To initiate To require the attendance of
witnesses, giving of testimony
To conduct and the production of
To inspect and examine evidence
To prescribe forms and Technical rules of procedure
methods of accounts are not strictly applied.
Right to counsel is not
imperative.
QUASI-LEGISLATIVE POWER
QUASI-LEGISLATIVE POWER

Rule-making power
The power to make rules and regulations which results in
delegated legislation
Valid regulations have the force and effect of law
REQUISITES OF Q-L POWER
1. Issued by authority of valid law
2. Within the scope and purview of law1
3. Reasonable
➢ Must be issued within the confines of the granting
statute
➢ In accord with prescribed procedure
➢ Subject to limitations such as non-delegability of power and the
separation of powers2,3
LEGAL EFFECT OF ADMI REGS

A valid rule or regulation duly promulgated by an

administrative agency has the force and effect of
law.
LIMITATIONS
Must be valid (not inconsistent with law or the
Constitution)
Cannot amend, alter, modify, extend, supplant, enlarge,
restrict or limit the provisions or coverage of the law
Within powers of AA (not ultra vires)
QUASI-LEGISLATIVE POWER, 3 TYPES (ISC)

Interpretative rule1
Supplementary or
detailed legislation2
??
Contingent
legislation3,4
INTERPRETATIVE RULE
Promulgated to interpret, clarify or explain statutory
regulations (administrative construction)
Resemble judicial adjudication
Entitled to great weight and respect but are at best
advisory
Need not be published
No need for a hearing
INTERPRETATIVE RULE (2)
The application of legislative rules to particular facts
Expected to apply to a general category of cases of
that type
An interpretative rule is improper if it sets out what is
effectively a new requirement
TEST: INTERPRETATIVE RULE
Correctness--
Does the rule correctly interpret the
statute?
TESTS, SUPPLEMENTARY

(or delegated) LEGISLATION

1. The law has delegated power to the agency to adopt

the rule, and
2. It provides that the rules promulgated by the agency
within its delegated power have authoritative force.
! These refer to rules that are “more” than interpretative:
supplementing the statute, filling-in or “law-making”
INTERPRETATIVE v SUPPLEMENTARY

Interpretative rules are Subordinate legislation

the product of Create new provisions that
interpretation of the law have the effect of law
Necessarily incidental to Require an express
delegation of law
administration of law
May provide for sanctions
Have no statutory
Have force and effect of
sanction law
Merely advisory
CONTINGENT LEGISLATION
Congress may provide that a law shall take effect upon
the happening of future specified contingencies.
The power to determine when this has occurred is left to
some other person or body.
Findings of AA here involve exercise of discretion (akin
to nature of rule-making)
CONTINGENT LEGISLATION, EXAMPLE

Regional Wage Orders

issued by a RTWPB are
examples of
subordinate legislation.1
SOME CASE EXAMPLES
RAC (law) provides that leaves
are cumulative. CSC Rule
provides otherwise.
Act 2613 authorizes Collector
(IR) to promulgate rules for the
“classification, marking and
packing of tobacco”. CIR
provided that cigar must be
“good, clean, x x x x from
provinces of Cagayan, Isabela
and N. Vizcaya.”
➢ Uphold law. (Rule invalid) (Manuel v
GAO)
➢ It was never intended that a standard
would be fixed which would limit the
manufacture of cigars for export to
certain provinces of the Islands. That
would amount to discrimination and
class legislation. (Olsen & Co v
Aldanese)
EXAMPLES (2)
Customs MO provides that,
as in protest cases, decisions
of Collector of Customs
WON appealed are subject
to review by Insular
Collector (now
Commissioner)
There is no law giving authority to the
Commissioner of Customs to review
and revise unappealed decisions in
seizure cases. The logical inference is
that the lawmakers did not deem it
necessary or advisable. (Sy Man v
Fabros)
EXAMPLES (3)

Director of Patents The provisions of Sec. 78 of the

Patent Law (at the time) are different
required by circular an from the provisions of the US Patent
exam to determine who Law as regards authority to
determine the qualifications of those
are qualified to practice allowed to practice. (Phil. Lawyers’
as patent attorneys Assn v Agrava)
before the PPO (Phil.
Patent Office)
EXAMPLES (4)
As prayed for, President
MARCOS issued EO 1088
providing for uniform and
modified rates for pilotage
services (increasing substantially
the rates of the existing pilotage
fees previously fixed by the
PPA). PPA issued a Memo Circ
fixing pilotage fees lower than
those provided in EO 1088.
The fixing of rates is essentially a
legislative power. And EO 1088 is in
the nature of a law. As he (Prez)
could delegate the rate-fixing power
to the PPA, so he can exercise it in
specific instances without withdrawing
the power of the PPA. (Phil. Inter-
island Shipping v CA)
PRESIDENTIAL ORDINANCE POWER
Rules of a general or permanent EOs
character
Matters of subordinate or MOs
temporary interest
AOs
Relate to particular aspects of
government operations
Fixing a date or declaring a Proclamations
status or condition Memo Circulars
Matters relating to internal
administration
ADMI CIRCULARS v ORDERS1
Prescribe policies, rules and
regulations and procedures
Apply to individuals and
organizations outside
government
Supplement the law or
provide means for carrying
them out.
Directed (internally) to
particular offices, officials
or employees, concerning
matters such as assignments,
office detail or transfer
For observance and
compliance
DUE PROCESS; UPHOLDING OWN REGS
Administrative agencies are vested with two basic powers, the
quasi-legislative and the quasi-judicial. The first enables them
to promulgate implementing rules and regulations (IRR), and
the second enables them to interpret and apply such
regulations.
Examples abound: the BIR adjudicates on its own revenue regulations, the CB/BSP
on its own circulars, the SEC on its own rules, as so too do the PPO (now IPO) and
the VRB (now OMB) and the Civil Aeronautics Administration and the Department of
Natural Resources and so on ad infinitum on their respective administrative
regulations.
 DUE PROCESS: OWN REGS (2)

Such an arrangement has been accepted as a fact of life of modern

governments and cannot be considered violative of due process as
long as the cardinal rights laid down by Justice Laurel in the
landmark case of Ang Tibay v. Court of Industrial Relations are
observed.1
VOID FOR VAGUENESS DOCTRINE
It is a statute that fails to It is so indefinite that it
give a person of ordinary encourages arbitrary
intelligence fair notice that and erratic arrests.
his contemplated conduct is
forbidden.
Places a person in jeopardy
of an offense without fair
warning.
WHEN IS A STATUTE “VAGUE”?
When:
It violates due process
It lacks comprehensible standards that “men of common
intelligence must necessarily guess as to its meaning and differ
in its application
It leaves law enforces unbridled discretion to carry out its
provisions
It must be “utterly vague” in that it cannot be clarified by
saving clause or construction.
QUASI-JUDICIAL POWER
QUASI-JUDICIAL POWER
Administrative adjudicatory
power
Power to hear and determine
or ascertain facts and apply
the rule of law to the
ascertained facts
Any power of an
administrative agency other
than rule-making but
including licensing
QA v. QJ Power

Issuance of rules and Refers to end product:

regulations Order, award or decision

Of particular application
Of general application
Present determination of
Generally prospective, rights of current parties
applicable in the future
CAN REGS IMPOSE PENAL SANCTIONS?
YES, if the:
• Law provides the violations are punishable
• Law provides the penalty
• There is publication
Recall that the fixing of penalties is a legislative power.
“The spring cannot rise higher than its source.”
Since the fixing of penalties is a legislative power, this power cannot be
further delegated.
COMM’R OF INT REV v. CA
“Champion”, “Hope” and “More” cigarettes
Originally, these were classified as foreign brands, since they were
registered as such with the World Tobacco Directory
Subsequently, Fortune renamed the brands, “Hope Luxury” and “More
Premium” and showed Champion to be an original brand registered
locally, and therefore a local brand.
COMM’R OF INT REV v. CA (2)
Two (2) days before the effectivity of RA 76541, RMC 37-93
was issued reclassifying said brands as “locally manufactured
cigarettes bearing foreign brands” and subjecting them to
increased ad valorem taxes as such at the increased rate of
55%
Previously, they were taxed from 15% to 45% as local brands
COMM’R OF INT. REV. V. CA 1

ISSUES:

Is RMC 37-93 an interpretative rule? (Is prior notice, hearing

and publication required?)
Is RMC 37-93 discriminatory? (Does it offend uniformity of
taxation?)
COMM’R OF INT. REV. V. CA
What is a legislative rule?
What is required?
It is in the nature of subordinate
legislation, designed to implement
primary legislation by providing the
details thereof.
In the same way that laws must have the
benefit of public hearing, it is generally
required that before a legislative rule is
adopted there must be a hearing.
COMM’R OF INT. REV. V. CA
What is an interpretative rule
intended to accomplish?
What is required?
Interpretative rules are designed
to provide guidelines to the law
which the administrative agency is
in charge of enforcing.
Nothing further than its bare
issuance.
COMM’R OF INT. REV. V.1 CA:

Quasi-Legislative Power

What is Q-L power?

It is the power to make rules and regulations which results in
delegated legislation that is within the confines of the granting
statute and the doctrine of non-delegability and separability
of powers.
COMM’R OF INT. REV. V. CA;

3 Types of Q-L POWER

Interpretative Rule
Supplementary or detailed legislation
Contingent legislation
COMM’R OF INT. REV. V. CA
The purpose or objective of an interpretative rule is merely to
construe the statute being administered. It purports to do no
more than interpret the statute. Simply, the rule tries to say
what the statute means. Generally, it refers to no single person
or party in particular but concerns all those belonging to the
same class which may be covered by the said interpretative
rule.
COMM’R OF INT. REV. V. CA

It need not be published and neither is a hearing required since

it is issued by the administrative body as an incident of its
power to enforce the law and is intended merely to clarify
statutory provisions for proper observance by the people.
COMM’R OF INT. REV. V. CA;

Quasi-Judicial Power

What is QJ power?

It is the power to hear and determine questions of fact to which

the legislative policy is to apply and to decide in accordance
with the standards laid down by the law itself in enforcing and
administering the same law.
COMM’R OF INT. REV. V. CA;

Quasi-Judicial Power

When does an administrative body exercise QJ power?

The administrative body exercises its quasi-judicial power when it
performs in a judicial manner an act which is essentially of an executive
or administrative nature, where the power to act in such manner is
incidental to or reasonably necessary for the performance of the
executive or administrative duty entrusted to it.
COMM’R OF INT. REV. V. CA;

Quasi-Judicial Power

When an administrative proceeding is quasi-judicial in character,

notice and fair open hearing are essential to the validity of
the proceeding.
COMM’R OF INT. REV. V. CA;

Conclusion: Quasi-Judicial Power

In issuing RMC 37-93, petitioner Commissioner of Internal

Revenue was exercising her quasi-judicial or administrative
adjudicatory power. She cited and interpreted the law, made
a factual finding, applied the law to her given set of facts,
arrived at a conclusion, and issued a ruling aimed at a specific
individual.
Consequently, prior notice and hearing are required.
APPLICATION
PROBLEM: EO1, THE PHTC 2016
1. Is the PHTC—the Presidential Honesty and Trust Commission
—valid?
2. Is it prosecutorial?
3. Can it hire and deputize members of the IBP, licensed
accountants, paralegals and other resource persons? Does this
affect its validity?
BREATHE.
ORGANIZE.
OUTLINE
What is the basis of the power to create an AA-- an
investigative Commission?
(Applicable cases are exemplars only. Pound on law/principles first.)

Is it inherently legislative? Is it based on separation of

Is it based on a valid delegation powers?
of legislative power? ! Is it based on control & faithful
execution of all laws?
Is it based on a valid enabling
statute?
OUTLINE 2
What kind of power was given to the PHTC?

Is it investigative? Are subpoena and contempt

What is investigative power? (Is
it prosecutorial?)
What purpose does it serve?
Is it exclusive?
powers exclusively judicial?
Is it a staffing power?
! Can government utilize private
persons?
PUBLICATION
PUBLICATION: TANADA v TUVERA1

As early as 1986, this Court in Tanada v. Tuvera enunciated that

publication is indispensable in order that all statutes, including
administrative rules that are intended to enforce or implement
existing laws, attain binding force and effect, to wit: (next slide)





TANADA v TUVERA (2)

We hold therefore that all statutes, including those of local

application and private laws, shall be published as a condition
for their effectivity, which shall begin fifteen days after
publication unless a different effectivity date is fixed by the
legislature.



 TANADA (3)
Covered by this rule are presidential decrees and executive orders
promulgated by the President in the exercise of legislative powers whenever
the same are validly delegated by the legislature or, at present, directly
conferred by the Constitution.
 TANADA (4): 

PUBLICATION, ADMI RULES

Administrative rules and regulations must also be published if their

purpose is to enforce or implement existing law pursuant also to
a valid delegation.

However, interpretative regs, those merely internal in nature or

LOIs need not be published.1
PUBLICATION; ADMI CODE
Filing. (1) Every agency shall file with the University of the
Philippines Law Center three (3) certified copies of every rule
adopted by it. Rules in force on the date of effectivity of this
Code which are not filed within three (3) months from the
date shall not thereafter be the basis of any sanction
against any party or persons.1
PUBLICATION AND 

RATE-FIXING; ADMI CODE
Section 9, Chap. II, Bk. VII entitled, Public Participation--
(1) If not otherwise required by law, an agency shall, as far as practicable,
publish or circulate notices of proposed rules and afford interested parties the
opportunity to submit their views prior to the adoption of the rule.
(2) In the fixing of rates, no rule or final order shall be valid unless the
proposed rates shall have been published in a newspaper of general
circulation at least two (2) weeks before the first hearing thereon.
(3) In case of opposition, the rules on contested cases shall be observed.
APPLICATION
In 1991, due to published stories on abuses of Filipino DHs in HK,
the DOLE issued a Department Order temporarily suspending
the recruitment of Filipino DHs bound for HK by private
employment agencies.
Citing Tanada v Tuvera and Art. 2, NCC, the Order was later
struck down for lack of proper publication.
 APPLICATION (2)
In 1989, pursuant to a Memorandum of Understanding (MOU) between the
Philippines and the PROC, the PITC (the Phil. Int’l. Trading Corp.) issued an
Administrative Order relating to socialist countries requiring applications for
importations from China (PROC) to be accompanied by a viable and
confirmed export program of Philippine products to the PROC.
Two export companies were later barred from importing goods from the
PROC. They assailed the Order. And the AO was later invalidated for lack
of publication.1
RATE-FIXING
When the administrative agency concerned, respondent NTC in this case,
establishes a rate, its act must both be non-confiscatory and must have
been established in the manner prescribed by the legislature; otherwise,
in the absence of a fixed standard, the delegation of power becomes
unconstitutional.
The rate must be reasonable and just.
Reasonableness may be implied1
ALCUAZ (2)
Is rate-fixing QA or QJ?
R: Order need not be preceded by a hearing because the assailed
order is merely interlocutory.
R: It is an incident in the ongoing proceedings for petitioner’s
application for a CPC
Petitioner is not the only primary source of data
ALCUAZ (3)
When rate applies to a particular person, it is an exercise of QJ power
(both in case and citing Vigan Electric1)
Notice and hearing are not generally essential to the validity of an
administrative action. (Q-A power)
Where it (agency) acts in a judicial or QJ manner, the person whose
rights or property may be affected is entitled to notice and hearing.
Principle applies even if the rate-fixing order is temporary.
RATE-FIXING
Although the rule-making power and even the power to fix rates x x x
may partake of a legislative character, such is not the nature of the
order complained of. It is predicated upon a finding of fact.
In making said finding of fact, respondent performed a function partaking
of a QJ character the valid exercise of which demands previous notice
and hearing.
 PUBLICATION

WHEN ESSENTIAL WHEN NOT ESSENTIAL

1. Administrative regs of general 1. Interpretative regs

application 2. Internal rules and regs governing the
2. Administrative regs which are personnel of the administrative
agency
penal in nature 3. LOIs issued by superiors concerning
guidelines
WHERE NOTICE AND HEARING NOT ESSENTIAL

1. Grant of provisional authority 4. Summary abatement of a

for increased rates or to nuisance per se
engage in a particular line of 5. Preventive suspension of a
business public officer or employee
2. Summary proceedings for
distraint and levy
3. Cancellation of passport
POWER OF 

ADMINISTRATIVE REVIEW

Power of supervision only, not control

It means “overseeing, or the power or authority of an officer to
see that their subordinate officers perform their duties”
Does not allow the supervisor to annul the acts of the
subordinate
Only to see to it that the subordinate performs his duties in
accordance with law1
DE LEON CASE1

While there is no disputing the authority of administrative superiors to

reverse the findings of their subordinates, this power must be exercised
sparingly and only upon a clear showing of error.
Lacking such law, the decision of lower administrative officials should be
sustained, if only because they have closer access to the problem sought
to be resolved and have the direct opportunity to question the parties
and their witnesses and to assess the evidence first-hand.
DOCTRINE OF PRIMARY JURISDICTION

Courts cannot or will not determine a controversy involving a question

which is within the jurisdiction of the administrative tribunal prior to the
resolution of that question by the administrative tribunal, where the
question demands the exercise of sound administrative discretion
requiring the special knowledge, experience and services of the
administrative tribunal to determine technical and intricate matters of
fact.1,2
Effect: When invoked, suspend the pending case.
RATIONALE

Avoid delay and unnecessary expenses

Give agency chance to correct itself
Principle of comity and convenience
Separation of powers
DOCTRINE OF EXHAUSTION OF ADMIN
REMEDIES
Where a claim is cognizable in the first instance by an
administrative agency, judicial interference shall be
withheld until the administrative process has been
completed.
Emphasis is on the existence of an available remedy
EXCEPTIONS TO EXHAUSTION*
▪ Estoppel
▪ Challenged admi act is patently
illegal
▪ Unreasonable delay or official
inaction
▪ Amount is relatively small to make
rule impractical
▪ A purely legal question is involved
▪ Judicial intervention is urgent
▪ Application of doctrine causes grave
and irreparable damage
▪ Controverted acts violate due
process
▪ Mootness
▪ No other plain, speedy and
adequate remedy
▪ Strong public interest1
RATIONALE
Sound practice and policy
Ensures an orderly procedure which favors a preliminary sifting process,
particularly within the competence of the administrative agency.
Underlying principle is the presumption that the administrative agency,
if given a chance to pass upon the matter, will decide correctly.1
! Promotes administrative autonomy and responsibility
! Respects procedures of AA
ADD’L RATIONALE
Economy; Assures economical use of judicial and administrative
resources
EFFECT

Not jurisdictional. May be waived.

If upheld, there is a lack of cause of action which is fatal to the
cause of action.
“EXHAUSTION” v. 

PRIMARY JURISDICTION1,2
The administrative agency has
exclusive jurisdiction
Judicial interference is withheld
until the administrative process
has been completed
Both the administrative agency
and the judiciary have
concurrent jurisdiction
The agency only has primary
jurisdiction
Thus, court yields to agency in
the first instance.
BAR Q
Explain the doctrine of exhaustion of administrative remedies
Give at least three (3) exceptions to its application (5%) (2000 Bar)
OTHER DOCTRINES
Administrative Procedure and Judicial
Review
REQUISITES FOR ADJUDICATION

Jurisdiction
Notice, and
Hearing
PROCEEDINGS

LIBERALLY CONSTRUED

Administrative proceedings are not bound by the rigid

requirements of the Rules of court. The important
consideration is that both parties were afforded an
opportunity to be heard and they availed themselves of it to
present their respective positions on the matters in dispute.1
Proceedings are governed by their own rules of procedure which are to
be liberally construed.2
ADMINISTRATIVE DUE PROCESS1

7 aspects
Right to hearing4
Tribunal must consider the
evidence presented
Decision must be supported
Evidence must be substantial2
Decision is based on evidence
presented
Board/judges acted on their own
independent consideration
Decision rendered so parties know the
various issues involved.3,4,5
ADMI DUE PROCESS; TAKING OF
TESTIMONY
Must the taking of testimony or the presentation of evidence be
before the same officer who will decide the case?
NO.
• Not an indispensable requirement of administrative due process
• What is indispensable is that the party has a reasonable opportunity to
present his case and to be heard; to submit evidence, and that
• The decision is supported by the evidence on record, which must be
substantial.
JUDICIAL REVIEW
Judicial power includes the duty of the courts of justice to
settle actual controversies involving rights which are legally
demandable and enforceable, and to determine whether or
not there has been a grave abuse of discretion amounting to
lack or excess of jurisdiction on the part of any branch or
instrumentality of the government. (Emphasis supplied)
(Second Paragraph (new), Sec. 1, Art. VIII, 1987
Constitution.)
REQUISITES FOR JUDICIAL REVIEW
The administrative action was Doctrine of finality of
FULLY completed (therefore, administrative action1
final, but not res judicata)
Generally, subject to the rule,
all administrative remedies
were exhausted.
Doctrine of exhaustion of
administrative remedies2
SCOPE OF JUDICIAL REVIEW
Of law Fully reviewable
Of fact Must be based on substantial evidence

Of discretion Must not be arbitrary or capricious

Courts will not generally substitute their
discretion for that of the administrative
agency.
Presumption is that the administrative
agency, by its specialized knowledge, is in a
better position to make an informed
judgment.
SCOPE (2)
Thus, findings of administrative agencies (both factual and legal) which
are supported by substantial evidence1 are considered valid and
binding.
They are left undisturbed unless there was a whimsical or capricious
exercise of jurisdiction amounting to grave abuse of discretion.
Thus, judicial review is limited. Not a trial de novo.
Res judicata is applicable.2
 ON ADMINISTRATIVE
1


“RES JUDICATA”

The decisions and orders of administrative agencies have, upon

their finality, the force and binding effect of a final judgment
within the purview of the doctrine of res judicata.
These decisions and orders are as conclusive upon the rights of
the affected parties as though the same had been rendered
by a court of competent jurisdiction.
 ON “RES JUDICATA” (2)
The rule of res judicata thus forbids the reopening of a matter
once determined by competent authority acting within their
exclusive jurisdiction.1
Faith is the substance of things hoped for,
the evidence of things not seen. (KJV)
Faith is being sure of what we hope for and
being certain of what we do not see. (NIV)
(Hebrews 11:1)