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EXHAUSTION OF ADMINISTRATIVE REMEDY the ordinance, the tax on the land owned by the petitioner was increase hence

Leonardo Paat vs CA G.R. no. 111107 (266 SCRA 167) he filed a special proceeding for the declaration of nullity of the City of Manila
Ordinance No. 7894 for being “unjust, excessive, oppressive or confiscatory.”
Facts: Manila Ordinance No. 7905 took effect thereafter, reducing by fifty percent
· May19, 1989. The truck of Victoria de Guzman was seized by the DENR (50%) the assessment levels (depending on the use of property, e.g.,
because the driver of the truck was not able to produce the required residential, commercial) for the computation of tax due. The new ordinance
documents for the forest products. amended the assessment levels provided by Section 74, paragraph (A) of
· Jovitio Layugan, the Community Environment and Natural Resources Manila Ordinance No. 7794..
Officer (CENRO), issued an order of confiscation of the truck and gave the Despite the amendment brought about by Manila Ordinance No. 7905, the
owner 15 days to submit an explanation. Owner was not able to sumbit an controversy proceeded.
explanation and the order of the CENRO was enforced. The trial court dismissed the case for failure of the petitioner to exhaust
· The issue was brought to the secretary of the DENR. While pending, the administrative remedies.
owner filed a suit for replevin against the Layugan. Layugan filed a motion to ISSUE: W/N the doctrine of exhaustion of administrative remedies may be
dismiss on the ground that the owner failed to exhaust administrative dispensed with in the instant case
remedies. Trial court ruled in favor of the owner. CA sustained Trial Court’s HELD: NO. As a general rule, where the law provides for the remedies against
decision the action of an administrative board, body, or officer, relief to courts can be
sought only after exhausting all remedies provided. The reason rests upon the
Issue: W/ON the trial court has jurisdiction? presumption that the administrative body, if given the chance to correct its
mistake or error, may amend its decision on a given matter and decide it
Held. No. This Court in a long line of cases has consistently held that before a properly. Therefore, where a remedy is available within the administrative
party is allowed to seek the intervention of the court, it is a pre-condition that machinery, this should be resorted to before resort can be made to the courts,
he should have availed of all the means of administrative processes afforded not only to give the administrative agency the opportunity to decide the matter
him. Hence, if a remedy within the administrative machinery can still be by itself correctly, but also to prevent unnecessary and premature resort to
resorted to by giving the administrative officer concerned every opportunity to courts.
decide on a matter that comes within his jurisdiction then such remedy should “One of the reasons for the doctrine of exhaustion is the separation of powers
be exhausted first before courts judicial power can be sought. The premature which enjoins upon the judiciary a becoming policy of non-interference with
invocation of courts intervention is fatal to ones cause of action. matters coming primarily within the competence of other department. x x x
Lopez v. City of Manila (GR No. 127139; Feb. 19, 1999) There are however a number of instances when the doctrine may be dispensed
FACTS: with and judicial action validly resorted to immediately. Among these
Section 219 of Republic Act 7160 (R.A. 7160) or the Local Government Code of exceptional cases are: (1) when the question raised is purely legal, (2) when
1991 requires the conduct of the general revision of real property. the administrative body is in estoppel; (3) when the act complained of is
The revision of real property assessments prescribed therein was not yet patently illegal; (4) when there is urgent need for judicial intervention; (5)
enforced in the City of Manila. Upon receipt of Memorandum Circular No. 04- when the claim involved is small; (6) when irreparable damage will be suffered;
95 from the Bureau of Local Government Finance relating to the failure of most (7) when there is no other plain, speedy and adequate remedy; (8) when strong
of the cities and municipalities of Metropolitan Manila, including the City of public interest is involved; (9) when the subject of controversy is private land;
Manila, to conduct the general revision of real property and after obtaining the and (10) in quo-warranto proceeding (citation omitted).
necessary funds from the City Council, the City Assessor began the process of In the court’s opinion, however, the instant petition does not fall within any of
general revision based on the updated fair market values of the real properties. the exceptions above-mentioned.
The City Assessor’s Office submitted the proposed schedule of fair market LEANDRO P. GARCIA, petitioner,
values to the City Council for its appropriate action. The council then enacted vs.
Manila Ordinance No. 7894 which was approved. With the implementation of
THE HONORABLE COURT OF APPEALS, THE PHILIPPINE COCONUT AUTHORITY remedies should be EXCEPTED by the fact that irreparable damage would
GOVERNING BOARD, and JOSEFEL P. GRAJEDA, respondents. ensue upon his overdue suspension and illegal ouster from office cannot thus
[G.R. No. 100579. June 6, 2001] THIRD DIVISION be countenanced.
FACTS: The observance of the mandate regarding exhaustion of administrative
On 18 October 1988, the Philippine Coconut Authority Governing Board passed remedies is a sound practice and policy which should not be ignored. The
Resolution No. 109-88, creating an "Investigation Committee" which would doctrine insures an orderly procedure and withholds judicial interference until
look into the complaint made by one Antonio Pua against petitioner, then the administrative process would have been allowed to duly run its course.
administrator of the Philippine Coconut Authority. Subsequently, the Even comity dictates that unless the available administrative remedies have
Committee found a “prima facie” case for the formal charge of dishonesty, been resorted to and appropriate authorities given an opportunity to act and
falsification of official document, grave misconduct and violation of RA 3019, correct the errors committed in the administrative forum, judicial recourse
Sec. 3e, f and j. Therefore Garcia was placed under preventive suspension for must be held to be inappropriate and impermissible.
90 days. WHEREFORE, the petition for review is DENIED.
Due to several and various reasons, Garcia postponed the filing of his Answer Department of Agrarian Reform vs. Apex Investment
and did not attend the scheduled hearings until the period 90 days elapsed. [G.R. No. 149422. April 10, 2003.]
Garcia then claimed that the 90-day period had already elapsed hence he FACTS: In 1994, pursuant to RA 6657, compulsory acquisition proceedings over
should be reinstated. The PCA argued otherwise by issuing a Resolution stating several lots owned by respondent were initiated by the Municipal Agrarian
that the delay in the disposition of the case resulting from the Reform Office (MARO). Copies of these notices were sent to respondent’s
petitions/requests for extension of time, postponement/cancellation of the office. Respondent, however, denied having received these Notice of Coverage
scheduled hearings and related requests filed by Garcia should not be included and Notice of Acquisition. They learned of a lot (TCT No. T-90476) has been
in the counting of the 90-day suspension. placed under the compulsory acquisition program, only from “Balita” and filed
ISSUE: Whether or not the Resolution of the PCA Board is valid? a Protest on the ground that their lots were classified as residential even before
HELD: Yes. the effectivity of the law, thus, are not covered by R.A. No. 6657.
RULING EXPLAINED: Only after more than one year from said Protest was it forwarded to the DAR.
"`The question before this Court is whether due process was violated by In the meantime, respondent’s title had been cancelled and a new one issued
respondents in the course of arriving at their resolution. The power of the to another. Thus, respondent filed a petition for certiorari and prohibition with
Court on this question is explicit in Art. VIII, Sec. 1 of the Constitution that, the Court of Appeals, but petitioner contended that respondent failed to
`Judicial power includes whether or not these has been a grave abuse of exhaust all administrative remedies.
discretion amounting to lack or excess of jurisdiction on the part of any branch ISSUE: WON respondent corporation violated the principle of exhaustion of
or instrumentality of the Government.' remedies
The issue of alleged violation by the PCA of administrative due process must HELD: NO.
also be dealt with against petitioner. The factual scenario of the case, ADMINISTRATIVE LAW; EXHAUSTION OF ADMINISTRATIVE REMEDIES; WHEN
heretofore narrated, would indicate that petitioner was afforded ample IGNORED. — This Court has consistently held that the doctrine of exhaustion of
opportunity to submit his case at the administrative level. He filed an answer to administrative remedies is a relative one and is flexible depending on the
the administrative complaint and his refusal to attend the scheduled hearings, peculiarity and uniqueness of the factual and circumstantial settings of a case.
despite due notice, was at his own peril. The essence of due process to him was Among others, it is disregarded where, as in this case, (a) there are
that opportunity to be heard. circumstances indicating the urgency of judicial intervention; and (b) the
In the case at bar, petitioner cannot deny that he has been able to effectively, if administrative action is patently illegal and amounts to lack or excess of
not deliberately, delayed the resolution of the administrative case against him jurisdiction.
due to his repeated requests for extension of time to file answer and his Records show that the PARO did not take immediate action on respondent’s
inexcusable refusal to attend the scheduled hearings thereon despite due Protest filed on January 12, 1998. It was only on February 15, 1999, or after
notice. Petitioner's invocation that his failure to exhaust administrative more than one year, that it forwarded the same to petitioner DAR. Since then,
what petitioner has done was to require respondent every now and then to
submit copies of supporting documents which were already attached to its ISSUE: W/N the CA erred in holding that the private respondents failed to
Protest. In the meantime, respondent found that the PARO had caused the exhaust administrative remedies?
cancellation of its title and that a new one was issued to an alleged farmer-
beneficiary RULING: Administrative agencies possess quasi-legislative or rule-making
In Natalia Realty vs. Department of Agrarian Reform, 6 we held that the powers and quasi-judicial or administrative adjudicatory powers. Quasi-
aggrieved landowners were not supposed to wait until the DAR acted on their legislative or rule-making power is the power to make rules and regulations
letter-protests (after it had sat on them for almost a year) before resorting to which results in delegated legislation that is within the confines of the granting
judicial process. Given the official indifference which, under the circumstances statute and the doctrine of non-delegability and separability of powers.
could have continued forever, the landowners had to act to assert and protect
their interests. Thus, their petition for certiorari was allowed even though the The rules and regulations that administrative agencies promulgate, which are
DAR had not yet resolved their protests. In the same vein, respondent here the product of a delegated legislative power to create new and additional legal
could not be expected to wait for petitioner DAR to resolve its protest before provisions that have the effect of law, should be within the scope of the
seeking judicial intervention. Obviously, petitioner might continue to alienate statutory authority granted by the legislature to the administrative agency. It is
respondent’s lots during the pendency of its protest. Hence, the Court of required that the regulation be germane to the objects and purposes of the
Appeals did not err in concluding that on the basis of the circumstances of this law, and be not in contradiction to, but in conformity with, the standards
case, respondent need not exhaust all administrative remedies before filing its prescribed by law. They must conform to and be consistent with the provisions
petition for certiorari and prohibition. of the enabling statute in order for such rule or regulation to be valid.
SMART Communications Inc. vs. National Telecommunications Commission Constitutional and statutory provisions control with respect to what rules and
G.R. 151908, August 12, 2003 regulations may be promulgated by an administrative body, as well as with
respect to what fields are subject to regulation by it. It may not make rules and
regulations which are inconsistent with the provisions of the Constitution or a
FACTS: Pursuant to its rule-making and regulatory powers, the National statute, particularly the statute it is administering or which created it, or which
Telecommunications Commission issued a Memorandum Circulars on the are in derogation of, or defeat, the purpose of a statute. In case of conflict
billing of telecommunications services and on measures in minimizing, if not between a statute and an administrative order, the former must prevail.
eliminating, the incidence of stealing of cellular phone unit. Isla
Communications Co., Inc. (IslaCom) and Pilipino Telephone Corporation (PilTel) Not to be confused with the quasi-legislative or rule-making power of an
filed an action for the declaration of nullity of the memorandum circulars, administrative agency is its quasi-judicial or administrative adjudicatory power.
alleging that NTC has no jurisdiction to regulate the sale of consumer goods as This is the power to hear and determine questions of fact to which the
stated in the subject memorandum circulars. Such jurisdiction belongs to the legislative policy is to apply and to decide in accordance with the standards laid
DTI under the Consumer Acts of the Philippines. Soon thereafter, Globe down by the law itself in enforcing and administering the same law. The
Telecom, Inc. and Smart Communications, Inc. filed a joint motion for leave to administrative body exercises its quasi-judicial power when it performs in a
intervene and to admit complaint-in-intervention. This was granted by the trial judicial manner an act which is essentially of an executive or administrative
court. nature, where the power to act in such manner is incidental to or reasonably
necessary for the performance of the executive or administrative duty
The trial court issued a TRO enjoining NTC from implementing the MCs. NTC entrusted to it. In carrying out their quasi-judicial functions, the administrative
filed a Motion to Dismiss, on the ground that petitioners failed to exhaust officers or bodies are required to investigate facts or ascertain the existence of
administrative remedies. The defendant's MD is denied for lack of merit. NTC facts, hold hearings, weigh evidence, and draw conclusions from them as basis
filed a MR but was later on denied by the trial court. The CA, upon NTC's filing for their official action and exercise of discretion in a judicial nature.
of a special action for certiorari and prohibition, reversed the decision of the
lower court. Hence this petition.
The doctrine of primary jurisdiction applies only where the administrative
agency exercises its quasi-judicial or adjudicatory function. Thus, in cases FACTS
involving specialized disputes, the practice has been to refer the same to an Estrada, Canilang and Lim, as concerned citizens and taxpayers, filed on July 31,
administrative agency of special competence pursuant to the doctrine of 1996, before the Regional Trial Court (RTC) of Olongapo City, a complaint for
primary jurisdiction. The courts will not determine a controversy involving a Injunction and Damages with Prayer for Preliminary Injunction and Temporary
question which is within the jurisdiction of the administrative tribunal prior to Restraining Order against Bacnotan Cement Corp. (BCC), Wawandue Fishing
the resolution of that question by the administrative tribunal, where the Port, Inc. (WFPI), Khong Hun as President of WFPI, Molina as Mayor of Subic,
question demands the exercise of sound administrative discretion requiring the Zambales, and Serrano as Regional Director of the Department of Environment
special knowledge, experience and services of the administrative tribunal to and Natural Resources (DENR).
determine technical and intricate matters of fact, and a uniformity of ruling is - The complaint alleges that: WFPI and the Municipality of Subic entered into
essential to comply with the premises of the regulatory statute administered. an illegal lease contract, which in turn became the basis of a sub-lease in favor
The objective of the doctrine of primary jurisdiction is to guide a court in of BCC; the sub-lease between WFPI and BCC is a violation of the first lease
determining whether it should refrain from exercising its jurisdiction until after because the cement plant, which BCC intended to operate in Wawandue,
an administrative agency has determined some question or some aspect of Subic, Zambales, is not related to the fish port business of WFPI; and BCC’s
some question arising in the proceeding before the court. It applies where the cement plant is a nuisance because it will cause pollution, endanger the health,
claim is originally cognizable in the courts and comes into play whenever life and limb of the residents and deprive them of the full use and enjoyment of
enforcement of the claim requires the resolution of issues which, under a their properties. The plaintiffs prayed that an order be issued: to restrain and
regulatory scheme, has been placed within the special competence of an prohibit BCC from opening, commissioning, or otherwise operating its cement
administrative body; in such case, the judicial process is suspended pending plant; and to require the defendants to jointly and solidarily pay the plaintiffs
referral of such issues to the administrative body for its view. P205,000.00 by way of actual, moral and exemplary damages and attorney’s
fees.
However, where what is assailed is the validity or constitutionality of a rule or - Defendants WFPI/Khong Hun and BCC filed separate motions to dismiss, both
regulation issued by the administrative agency in the performance of its quasi- alleging that the complaint states no cause of action. BCC, in its motion, added
legislative function, the regular courts have jurisdiction to pass upon the same. that: the plaintiffs failed to exhaust administrative remedies before going to
The determination of whether a specific rule or set of rules issued by an court; that the complaint was premature; and that the RTC has no jurisdiction
administrative agency contravenes the law or the constitution is within the on the matter. Respondent Serrano of the DENR also filed a motion to dismiss
jurisdiction of the regular courts. Indeed, the Constitution vests the power of stating that there was no cause of action insofar as he is concerned since there
judicial review or the power to declare a law, treaty, international or executive was nothing in the complaint that shows any dereliction of duty on his part.
agreement, presidential decree, order, instruction, ordinance, or regulation in - On December 6, 1996, Judge Ubiadas of RTC Olongapo City, Branch 72, issued
the courts, including the regional trial courts. This is within the scope of judicial an order denying respondents’ motions to dismiss and granting the prayer for a
power, which includes the authority of the courts to determine in an writ of preliminary injunction. Pertinent portions of the order read as follows:
appropriate action the validity of the acts of the political departments. Judicial - The powers vested by law under Executive Order 192, Republic Act 3931 and
power includes the duty of the courts of justice to settle actual controversies Presidential Decree 984 are regulatory merely and for the purpose of
involving rights which are legally demandable and enforceable, and to determining whether pollution exists.
determine whether or not there has been a grave abuse of discretion - However, under the laws above-mentioned, the powers granted to the DENR
amounting to lack or excess of jurisdiction on the part of any branch or thru the Pollution Adjudication Board did not expressly exclude the Courts
instrumentality of the Government. which under the law are empowered to try both questions of facts and law to
determine whether pollution which maybe nuisance per se or by accidents (sic)
ESTRADA ET AL V. CA (BACNOTAN CEMENT CORPORATION) exist or likely to exist. Under the Constitution, the courts are imbued the
442 SCRA 117 inherent power of general jurisdiction to resolve these issues. While it maybe
AUSTRIA-MARTINEZ; NOV 11, 2004 (sic) true that petitioners might have first to seek relief thru the DENR’s
Pollution Adjudication Board a resort to the remedy provided under the presumed that an administrative agency, if afforded an opportunity to pass
Pollution Adjudication Board is rendered useless and ineffective in the light of upon a matter, will decide the same correctly, or correct any previous error
the urgency that the said pollution be restrained outright in lieu of the committed in its forum. Furthermore, reasons of law, comity and convenience
impending risk described in the petition. It will be noted that the DENR did not prevent the courts from entertaining cases proper for determination by
have the power either in Executive Order 192, Republic Act 3931 and administrative agencies. Hence, premature resort to the courts necessarily
Presidential Decree 984 to issue a writ of injunction. The argument therefore becomes fatal to the cause of action of the petitioner.
for the exhaustion of administrative remedy and lack of jurisdiction does not - While the doctrine of exhaustion of administrative remedies is flexible and
warrant the dismissal of this petition against Bacnotan Cement Corporation. may be disregarded in certain instances, such as:
- Respondents’ motions for reconsideration were likewise denied by the trial (1) when there is a violation of due process,
court in an order dated May 13, 1997. Respondent BCC then went to the Court (2) when the issue involved is purely a legal question,
of Appeals on a petition for certiorari and prohibition with preliminary (3) when the administrative action is patently illegal amounting to lack or
injunction and/or temporary restraining order seeking to reverse and set aside excess of jurisdiction,
the orders dated December 6, 1996 and May 13, 1997 as well as to lift the writ (4) when there is estoppel on the part of the administrative agency concerned,
of preliminary injunction dated December 11, 1996. (5) when there is irreparable injury,
- On April 6, 1998, the Court of Appeals rendered its decision, granting BCC’s (6) when the respondent is a department secretary whose acts as an alter ego
petition. The Court of Appeals denied petitioners’ motion for reconsideration of the President bears [sic] the implied and assumed approval of the latter,
on February 24, 1999. (7) when to require exhaustion of administrative remedies would be
unreasonable,
ISSUE (8) when it would amount to a nullification of a claim,
WON the instant case falls under the exceptional cases where prior resort to (9) when the subject matter is a private land in land case proceedings,
administrative agencies need not be made before going to court. (10) when the rule does not provide a plain, speedy and adequate remedy,
(11) when there are circumstances indicating the urgency of judicial
HELD intervention,
NO. (12) when no administrative review is provided by law,
- The doctrine of exhaustion of administrative remedies requires that resort be (13) where the rule of qualified political agency applies, and
first made with the administrative authorities in the resolution of a controversy (14) when the issue of non-exhaustion of administrative remedies has been
falling under their jurisdiction before the same may be elevated to a court of rendered moot.
justice for review. If a remedy within the administrative machinery is still - the case does not fall under any of the exceptional circumstances.
available, with a procedure pursuant to law for an administrative officer to - Petitioners claim that their action before the trial court, without going to the
decide the controversy, a party should first exhaust such remedy before going DENR first, is justified because they are in danger of suffering grave and
to court. A premature invocation of a court’s intervention renders the irreparable injury from the operation of respondent’s cement repacking plant
complaint without cause of action and dismissible on such ground. and the DENR does not have the power to grant them the relief they are
- The reason for this is that prior availment of administrative remedy entails praying for.
lesser expenses and provides for a speedier disposition of controversies. - RA 3931, An Act Creating the National Water and Air Pollution Control
Comity and convenience also impel courts of justice to shy away from a dispute Commission, was passed on June 18, 1964 to maintain reasonable standards of
until the system of administrative redress has been completed and complied purity for the waters and air of the country with their utilization for domestic,
with. agricultural, industrial and other legitimate purposes. It created the NPCC
- As we explained in Gonzales vs. Court of Appeals, the thrust of the rule on which had the power, to issue, renew, or deny permits, for the prevention and
exhaustion of administrative remedies is that the courts must allow the abatement of pollution.
administrative agencies to carry out their functions and discharge their - In 1976, Presidential Decree No. 984 was enacted to strengthen the NPCC
responsibilities within the specialized areas of their respective competence. It is giving it, among others, the following:
Sec. 6. Powers and Functions – xxx During her second semester of school year 2001-2002, she was enrolled in logic
(e) Issue orders or decisions to compel compliance with the provisions of and statistics subjects under Repondents Rachelle A. Gamurot and Elissa
this Decree and its implementing rules and regulations only after proper notice Baladad (her teachers)
and hearing. It was in February 2002 that the college arranged a fund raising campaign
(f) Make, alter or modify orders requiring the discontinuance of pollution called “Rave Party and Dance Revolution”. The proceeds of this dance will be
specifying the conditions and the time within which such discontinuance must used to construct the school’s tennis and volleyball courts.
be accomplished. Everyone was required to buy at least two tickets priced at 100 pesos each.
(g) Issue, renew, or deny permits, under such conditions as it may determine People who bought the tickets will be given additional points in their test
to be reasonable, for the prevention and abatement of pollution, for the scores but those who did not buy will not be allowed to take the final exams.
discharge of sewage, industrial waste, or for the installation or operation of Khristine, having no money and religious restrictions, refused to buy the
sewage works and industrial disposal system or parts thereof… tickets.
xxx Thus on the examination dates, she was not allowed by her two teachers,
(j) serve as arbitrator for the determination of reparations, or restitution of Gamurot and Balalad, to take her final exam on statistics and logic.
the damages and losses resulting from pollution. The next day, the teacher announced to the whole class that khristine and
- P.D. No. 984 also empowered the commission to issue ex parte orders another student was not permitted to take the exam because of the failure to
directing the discontinuance or temporary suspension or cessation of operation buy the tickets then subsequently ejected the two from class.
of an establishment or person generating sewage or wastes without the Khristine continued to plead with the teachers to allow her but they kept their
necessity of prior public hearing whenever it finds a prima facie evidence that stand and defended their position saying that they were complying with PCST’s
the discharged sewage or wastes are of immediate threat to life, public health, policy.
safety or welfare, or to animal or plant life, or exceed the allowable standards Khristine filed in the RTC as a pauper litigant against PCST and her two teachers
set by the commission. for damages.
- In 1987, Executive Order No. 192 was passed, reorganizing the DENR. It The respondents filed a motion to dismiss based on the khristine’s failure to
transferred the power of the NPCC to the Environmental Management Bureau exhaust administrative remedies as they are contending that the case
and created the PAB, under the Office of the Secretary, which assumed the should’ve been filed in the CHED (commission of higher education) and not in
powers and functions of the NPCC with respect to the adjudication of pollution the RTC
cases under R.A. No. 3931 and P.D. No. 984. Khristine on the other hand says that prior exhaustion of administrative
- In Pollution Adjudication Board vs. Court of Appeals, the PAB is the very remedies was unnecessary, because her action was not administrative in
agency of the government with the task of determining whether the effluents nature, but one purely for damages arising from respondents breach of the
of a particular industrial establishment comply with or violate applicable anti- laws on human relations
pollution statutory and regulatory provisions. We also recognized its power to RTC
issue, ex parte, cease and desist orders. As a general rule, the adjudication of The RTC dismissed the complaint for the lack of cause of action. It said that
pollution cases generally pertains to the Pollution Adjudication Board (PAB), considering the case was between a school, two teachers and a student, CHED
except in cases where the special law provides for another forum. has jurisdiction over the case and not RTC. And it dismissed the case for the
lack of cause of action without explaining their ground.
Regino vs. Pangasinan Colleges of Sciences and Technology 2004
FACTS: ISSUE/s:
Petitioner Khristine Rea M. Regino was a first year computer science student at W/N the doctrine of exhaustion of administrative remedies is applicable
Respondent Pangasinan Colleges of Science and Technology (PCST).
She comes from a very poor family and she was only able to go to school by HELD:
means of financial support from her relatives. Yes
The Supreme Court ruled that the doctrine of exhaustion of administrative took place also on August 1, 2001 when respondent executed the Purchase
remedies has no bearing on the present case because the petitioner was not Request No. 1. The communication equipment delivered by Kai Electronics was
asking for the reversal of the policies of the PCST neither was she demanding overpriced by more than one hundred percent (100%) or in the amount
that the school allow her to take the final examinations (considering that she of P129,600.00.
was already enrolled in a different school). The acts of the respondent can no On September 9, 2002, respondent Sangguniang Panlalawigan issued an Order
longer be reversed and even if it was reversed, it would not be adequate to recommending to Governor Manuel M. Lapid of Pampanga, also a respondent,
redress her grievances that petitioner be preventively suspended from office for a period of sixty (60)
The Supreme Court also held that the doctrine can only be applied when there days.
is competence on the part of the administrative body to act upon the matter Without seeking a reconsideration of the Order of respondent Sangguniang
complained of. Thus in the case at bar, the CHED does not have the power to Panlalawigan, petitioner sent a letter dated September 12, 2002 to respondent
award damages to the petitioner. Governor Lapid requesting him to veto the same.
And lastly, the doctrine cannot be applied when the issue is purely legal and Also, without waiting for respondent Governor Lapids action on his letter,
well within the jurisdiction of the trial court. The petitioner’s action for petitioner, on September 24, 2002, filed with the Court of Appeals a petition
damages calls for the application of the Civil Code which falls within the for certiorari,[3] docketed as CA-G.R. SP No. 72958. He contended that
jurisdiction of the courts. respondent Sangguniang Panlalawigan acted with grave abuse of discretion in
issuing the Order of preventive suspension, hence, the same should be
Flores vs. Sangguniang Panlalawigan 2005 nullified.
MAYOR EDGARDO G. FLORES, petitioner vs. SANGGUNIANG On February 17, 2003, the Court of Appeals rendered its Decision, the
PANLALAWIGAN OF PAMPANGA, GOVERNOR MANUEL M. LAPID OF dispositive portion of which reads:
PAMPANGA, MUNICIPAL COUNCILORS VANZALON F. TIZON, ROMULO N. WHEREFORE, the instant petition is DENIED and DISMISSED for lack of merit.
MANDAP, EDGARDO P. YAMBAO, JEROME M. TONGOL, MARCIANO L. The assailed Order dated September 9, 2002 issued by
SACDALAN, and RICKY Y. NARCISO, respondents. respondent Sangguniang Panlalawigan of Pampanga in Administrative Case
DECISION No. 02-2001 is AFFIRMED.
SANDOVAL-GUTIERREZ, J.: SO ORDERED.[4]
For our resolution is the petition for review on certiorari assailing the In ruling against the petitioner, the Court of Appeals held that he failed to
Decision[1] of the Court of Appeals dated February 17, 2003, in CA-G.R. SP No. exhaust all administrative remedies before going to court. Moreover,
72958 and its Resolution[2] dated June 27, 2003. respondent Sangguniang Panlalawigan of Pampanga did not gravely abuse its
On December 19, 2001, an administrative complaint for dishonesty and gross discretion when it issued the challenged Order considering that the allegation
misconduct against then Mayor Edgardo G. Flores of Minalin, Pampanga, of overpricing is supported by documentary evidence. There is also sufficient
petitioner, was filed with the Sangguniang Panlalawigan of the same province, evidence to prove that the bidding and the awarding of the contract to Kai
one of the respondents herein. The complainants were the municipal Electronics were done under questionable circumstances.
councilors of Minalin, namely: Vanzalon F. Tizon, Romulo N. Mandap, Edgardo Petitioner then filed a motion for reconsideration, but this was denied by the
P. Yambao, Jerome M. Tongol, Marciano L. Sacdalan, and Ricky Y. Narciso, now Appellate Court in its Resolution dated June 27, 2003.
respondents. Hence, the instant petition.
The administrative complaint against petitioner alleged that on August 1, 2001, The pivotal issue here is whether the Court of Appeals erred in holding that the
he executed Purchase Request No. 1 for the acquisition of a communication petition in CA-G.R. SP No. 72958 was prematurely filed as petitioner failed to
equipment amounting to P293,000.00 without any Resolution or Ordinance exhaust first all administrative remedies.
enacted by the Sangguniang Bayan of Minalin. The winning bidder was one Kai Section 61 of Republic Act No. 7160 (the Local Government Code of 1991)
Electronics. On August 6, 2001, or while the bidding was still being conducted, partly provides:
Kai Electronics delivered the communication equipment to the municipality of SEC. 61. Form and Filing of Administrative Complaints. A verified complaint
Minalin. The Notice of Award of Bid to Kai Electronics states that the bidding against any erring local elective official shall be prepared as follows:
x x x; Petitioner has not shown any valid and compelling reason why, without waiting
(b) A complaint against any elective official of a municipality shall be filed for the Governors action on the matter, he immediately filed with the Court of
before the Sangguniang Panlalawigan whose decision may be appealed to the Appeals a petition for certiorari. By doing so, petitioner effectively deprived the
Office of the President; and Governor of his duty to take appropriate action on the controversy.
x x x. (underscoring ours) It is a well-settled rule that where, as here, the petitioner has available
The administrative complaint against petitioner was filed with remedies within the administrative machinery against the action of an
respondent Sangguniang Panlalawigan of Pampanga in accordance with the administrative board, body, or officer, the intervention of the courts can be
above provision. After receiving the Order of respondent Sangguniang resorted to by him only after having exhausted all such remedies. [10] The
Panlalawigan preventively suspending him from office, petitioner should have rationale of this rule rests upon the presumption that the administrative body,
filed a motion for reconsideration in order to give the latter the opportunity to if given the chance to correct its mistake or error, may amend its decision on a
correct itself if there was any error on its part. Such motion is a condition sine given matter and decide it properly. The strict application of the doctrine of
qua non before filing a petition for certiorari under Rule 65 of the 1997 Rules of exhaustion of administrative remedies will also prevent unnecessary and
Civil Procedure, as amended.[5]Section 1 of the same Rule requires that premature resort to the court.[11] We cannot countenance petitioners utter
petitioner must not only show that respondent Sangguniang Panlalawigan, in disregard of this procedural norm and frustrate its purpose of attaining a just,
issuing the questioned Order, acted without or in excess of its jurisdiction, or speedy, inexpensive and orderly judicial proceedings.
with grave abuse of discretion amounting to lack or excess of jurisdiction, but We likewise find untenable petitioners contention that
that there is no appeal, nor any plain, speedy, and adequate remedy in the respondent Sangguniang Panlalawigan acted capriciously and arbitrarily by
ordinary course of law.[6] We have held that the plain and adequate remedy reason of passion and personal hostility when it issued the challenged Order
referred to in Section 1 of Rule 65 is a motion for reconsideration of the without constituting itself into a Committee of the Whole, as required by its
assailed Order or Resolution.[7] Petitioner may not arrogate to himself the rules of procedure, x x x and without a Committee Report having been
determination of whether a motion for reconsideration is necessary or prepared yet x x x.[12] Suffice it to say that this issue involves an examination of
not.[8] To dispense with the requirement of filing a motion for reconsideration, factual matters and could have been properly raised by petitioner in a motion
petitioner must show a concrete, compelling, and valid reason for doing for reconsideration of the questioned Order before the Sangguniang
so.[9] This, petitioner failed to do. Thus, the Court of Appeals correctly held that Panlalawigan of Pampanga, the proper forum. But he did not do so. He thus
petitioner should have first interposed a motion for reconsideration of the forfeited such an important procedural remedy.
questioned Order issued by respondent Sangguniang Panlalawigan. WHEREFORE, the petition is DENIED. The appealed Decision dated February 17,
We must add that petitioner, before filing with the Court of Appeals his 2003 and Resolution dated June 27, 2003 of the Court of Appeals in CA-G.R. SP
petition for certiorari, should have waited for respondent Governor Lapids No. 72958 are AFFIRMED. Costs against petitioner.
action on the recommendation of respondent Sangguniang Panlalawigan that SO ORDERED.
he be preventively suspended from office; and on his letter requesting the
Governor to veto the questioned Order, considering that the latter is the one CIVIL SERVICE COMMISSION v. DEPARTMENT OF BUDGET AND MANAGEMENT
empowered by law to impose preventive suspension upon him. Section 63 of 482 SCRA 233 (2005)
the Local Government Code of 1991 partly provides:
SEC 63. Preventive Suspension. FACTS: The total funds appropriated by General Appropriations Act of 2002
(a) Preventive suspension may be imposed: (GAA) for Civil Service Commission (CSC) was P285,660,790.44. CSC complains
(1) By the President, if the respondent is an elective official of a province, a that the total funds released by Department of Budget and Management
highly urbanized or an independent component city; (DBM) was only P279,853,398.14, thereby leaving an unreleased balance of
(2) By the governor, if the respondent is an elective official of a component city P5,807,392.30.
or municipality; or
(3) By the mayor, if the respondent is an elective official of the barangay. CSC contends that the funds were intentionally withheld by DBM on the ground
x x x. (underscoring ours) of their ―no report, no release‖ policy. Hence, CSC filed a petition for
mandamus seeking to compel the DBM to release the balance of its budget for As for the rule on hierarchy of courts, it is not absolute. A direct invocation of
fiscal year 2002. At the same time, it seeks a determination by this Court of the this Court's original jurisdiction may be allowed where there are special and
extent of the constitutional concept of fiscal autonomy. important reasons therefor, clearly and specifically set out in the
petition.[6] Petitioner justifies its direct filing of the petition with this Court as
Petitioner contends that the application of the no report, no release policy the matter involves the concept of fiscal autonomy granted to [it] as well as
upon independent constitutional bodies of which it is one is a violation of the other constitutional bodies, a legal question not heretofore determined and
principle of fiscal autonomy and, therefore, unconstitutional. which only the Honorable Supreme Court can decide with authority and
Respondent, at the outset, opposes the petition on procedural grounds. It finality.[7] To this Court, such justification suffices for allowing the petition.
contends that first, petitioner did not exhaust administrative remedies as it
could have sought clarification from respondents Secretary regarding the Now on the substantive issues.
extent of fiscal autonomy before resorting to this Court. Second, even
assuming that administrative remedies were exhausted, there are no That the no report, no release policy may not be validly enforced against offices
exceptional and compelling reasons to justify the direct filing of the petition vested with fiscal autonomy is not disputed. Indeed, such policy cannot be
with this Court instead of the trial court, thus violating the hierarchy of courts. enforced against offices possessing fiscal autonomy without violating Article IX
(A), Section 5 of the Constitution which provides:
On the merits, respondent, glossing over the issue raised by petitioner on the
constitutionality of enforcing the no report, no release policy, denies having Sec. 5. The Commission shall enjoy fiscal autonomy. Their approved
strictly enforced the policy upon offices vested with fiscal autonomy, it claiming appropriations shall be automatically and regularly released.
that it has applied by extension to these offices the Resolution of this Court in
A.M. No. 92-9-029-SC(Constitutional Mandate on the Judiciarys Fiscal In Province of Batangas v. Romulo,[8] this Court, in construing the phrase
Autonomy) issued on June 3, 1993, [3] particularly one of the guiding principles automatic release in Section 6, Article X of the Constitution reading:
established therein governing the budget of the Judiciary, to wit:
Section 6. Local government units shall have a just share, as determined by law,
5. The Supreme Court may submit to the Department of Budget and in the national taxes which shall be automatically released to them,
Management reports of operation and income, current plantilla of personnel,
work and financial plans and similar reports only for recording purposes. The
submission thereof concerning funds previously released shall not be a held:
condition precedent for subsequent fund releases. (Emphasis and underscoring
supplied) Websters Third New International Dictionary defines automatic as involuntary
either wholly or to a major extent so that any activity of the will is largely
negligible; of a reflex nature; without volition; mechanical; like or suggestive of
Respondent proffers at any rate that the delay in releasing the balance of an automaton. Further, the word automatically is defined as in an automatic
petitioners budget was not on account of any failure on petitioners part to manner: without thought or conscious intention. Being automatic, thus,
submit the required reports; rather, it was due to a shortfall in revenues. [4] connotes something mechanical, spontaneous and perfunctory. As such the
The rule on exhaustion of administrative remedies invoked by respondent LGUs are not required to perform any act to receive the just share accruing to
applies only where there is an express legal provision requiring such them from the national coffers. x x x (Emphasis and underscoring supplied)[9]
administrative step as a condition precedent to taking action in court. [5] As
petitioner is not mandated by any law to seek clarification from the Secretary
of Budget and Management prior to filing the present action, its failure to do so By parity of construction, automatic release of approved annual appropriations
does not call for the application of the rule. to petitioner, a constitutional commission which is vested with fiscal autonomy,
should thus be construed to mean that no condition to fund releases to it may
be imposed. This conclusion is consistent with the above-cited June 3, 1993 Sec. 62. Prohibition Against Impoundment of Appropriations. No
Resolution of this Court which effectively prohibited the enforcement of a no appropriations authorized in this Act shall be impounded through deduction or
report, no release policy against the Judiciary which has also been granted retention, unless in accordance with the guidelines for the imposition and
fiscal autonomy by the Constitution.[10] release of reserves and the rules and regulations for deduction, retention or
Respecting respondents justification for the withholding of funds from deferral of releases shall have been issued by the DBM in coordination with the
petitioner as due to a shortfall in revenues, the same does not lie. In the first House Committee on Appropriations and the Senate Committee on Finance.
place, the alleged shortfall is totally unsubstantiated. In the second place, even Accordingly, all the funds appropriated for the purposes, programs, projects
assuming that there was indeed such a shortfall, that does not justify non- and activities authorized in this Act, except those covered by Special Provision
compliance with the mandate of above-quoted Article IX (A), Section 5 of the No. 1 of the Unprogrammed
Constitution. Fund shall be regularly and automatically released in accordance with the
established allotment period and system by the DBM without any deduction,
Asturias Sugar Central, Inc. v. Commissioner of Customs teaches that [a]n retention or imposition of reserves. (Emphasis and underscoring supplied)
interpretation should, if possible, be avoided under which a statute or Sec. 63. Unmanageable National Government Budget Deficit. Retention or
provision being construed is defeated, or as otherwise expressed, nullified, reduction of appropriations authorized in this Act shall be effected only in cases
destroyed, emasculated, repealed, explained away, or rendered insignificant, where there is unmanageable national government budget deficit.
meaningless, inoperative, or nugatory.[11]

If respondents theory were adopted, then the constitutional mandate to Unmanageable national government budget deficit as used in this Section shall
automatically and regularly release approved appropriations would be be construed to mean that the actual national government budget deficit
suspended every year, or even every month [12] that there is a shortfall in has exceeded the quarterly budget deficit targets consistent with the full-year
revenues, thereby emasculating to a significant degree, if not rendering target deficit of P130.0 billion as indicated in the FY 2002 Budget of
insignificant altogether, such mandate. Expenditures and Sources of Financing submitted by the President to Congress
pursuant to Section 22, Article VII of the Constitution or there are clear
Furthermore, the Constitution grants the enjoyment of fiscal autonomy only to economic indications of an impending occurrence of such condition, as
the Judiciary, the Constitutional Commissions of which petitioner is one, and determined by the Development Budget Coordinating Committee and
the Ombudsman. To hold that petitioner may be subjected to withholding or approved by the President. (Emphasis and underscoring supplied)
reduction of funds in the event of a revenue shortfall would, to that extent,
place petitioner and the other entities vested with fiscal autonomy on equal
footing with all others which are not granted the same autonomy, thereby In contrast, the immediately succeeding provision of the Year 2002 GAA,
reducing to naught the distinction established by the Constitution. which specifically applied to offices vested with fiscal autonomy, stated:

The agencies which the Constitution has vested with fiscal autonomy should Sec. 64. Appropriations of Agencies Vested with Fiscal Autonomy. Any provision
thus be given priority in the release of their approved appropriations over all of law to the contrary notwithstanding, the appropriations authorized in this
other agencies not similarly vested when there is a revenue shortfall. Act for the Judiciary, Congress of the Philippines, the Commission on Human
Rights, the Office of the Ombudsman, the Civil Service Commission, the
Significantly, the Year 2002 GAA itself distinguished between two types of Commission on Audit and the Commission on Elections shall be automatically
public institutions in the matter of fund releases. With respect to government and regularly released. (Emphasis and underscoring supplied)
agencies in general, the pertinent General Provisions of the GAA read as
follows:
Clearly, while the retention or reduction of appropriations for an office is
generally allowed when there is an unmanageable budget deficit, the Year
2002 GAA, in conformity with the Constitution, excepted from such rule the Finally, petitioners claim that its budget may not be reduced by Congress lower
appropriations for entities vested with fiscal autonomy. Thus, even assuming than that of the previous fiscal year, as is the case of the Judiciary, must be
that there was a revenue shortfall as respondent claimed, it could not withhold rejected.
full release of petitioners funds without violating not only the Constitution but
also Section 64 of the General Provisions of the Year 2002 GAA. For with respect to the Judiciary, Art. VIII, Section 3 of the Constitution
explicitly provides:
This Court is not unaware that its above-cited June 3, 1993 Resolution also
states as a guiding principle on the Constitutional Mandate on the Judiciarys Section 3. The Judiciary shall enjoy fiscal autonomy. Appropriations for the
Fiscal Autonomy that: Judiciary may not be reduced by the legislature below the amount
appropriated for the previous year and, after approval, shall be automatically
4. After approval by Congress, the appropriations for the Judiciary shall be and regularly released.[16] (Emphasis and underscoring supplied)
automatically and regularly released subject to availability of
funds. (Underscoring supplied)
On the other hand, in the parallel provision granting fiscal autonomy to
Constitutional Commissions, a similar proscription against the reduction of
This phrase subject to availability of funds does not, however, contradict the appropriations below the amount for the previous year is clearly absent. Article
present ruling that the funds of entities vested with fiscal autonomy should be IX (A), Section 5 merely states:
automatically and regularly released, a shortfall in revenues notwithstanding.
What is contemplated in the said quoted phrase is a situation where total Section 5. The Commission shall enjoy fiscal autonomy. Their approved annual
revenue collections are so low that they are not sufficient to cover the total appropriations shall be automatically and regularly released.
appropriations for all entities vested with fiscal autonomy. In such event, it
would be practically impossible to fully release the Judiciarys appropriations or
any of the entities also vested with fiscal autonomy for that matter, without The plain implication of the omission of the provision proscribing such
violating the right of such other entities to an automatic release of their own reduction of appropriations below that for the previous year is that Congress
appropriations. It is under that situation that a relaxation of the constitutional is not prohibited from reducing the appropriations of Constitutional
mandate to automatically and regularly release appropriations is allowed. Commissions below the amount appropriated for them for the previous year.

Considering that the budget for agencies enjoying fiscal autonomy is only a WHEREFORE, the petition is, in light of all the foregoing
small portion of the total national budget, only in the most extreme discussions, GRANTED. Respondents act of withholding the subject funds from
circumstances will the total revenue collections fall short of the requirements petitioner due to revenue shortfall is hereby declared UNCONSTITUTIONAL.
of such agencies. To illustrate, in the Year 2002 GAA the budget for agencies
vested with fiscal autonomy amounted only to P14,548,620,000.00, which is Alta Vista Golf & Country Club v. The City of Cebu, Hon. Mayor Tomas R.
2.53% of the total appropriations in the amount of P575,123,728,000.00.[13] In Osmeña, and Teresita C. Camarillo
Year 2003 GAA, which was re-enacted in 2004, the budget for the same G.R. No. 180235 January 20, 2016
agencies was P13,807,932,000.00, which is 2.27% of the total appropriations
amounting to P609,614,730,000.00.[14] And in the Year 2005, the budget for the FACTS:
same agencies was only P13,601,124,000.00, which is 2.28% of the total
appropriations amounting to P597,663,400,000.00.[15] Alta Vista Golf & Country Club is a non-stock and non-profit corporation
operating a golf course in Cebu City. Sometime in June 1993, the Sangguniang
Panglungsod of Cebu enacted CTO No. LXIX known as the Revised Omnibus Tax
Ordinance. It stated therein that an amusement tax of 20% of gross receipts on
entrance, playing green, and/or admission fees will be charged on golf courses ISSUE:
and polo grounds. In 1998, Alta Vista Golf was assessed deficiency business
taxes, fees, and other charges amounting to P3,820,095.68, including Whether or not the power of Judicial Review over the validity of a local tax
amusement tax on its golf course. Cebu repeatedly attempted to collect from ordinance has been restricted by section 187 of the Local Government Code
petitioner. However, the latter refused to pay the amusement tax arguing that
the imposition of said tax by Section 42 of the Revised Omnibus Tax Ordinance, HELD:
as amended, was irregular, improper, and illegal. Also, petitioner said that
amusement tax can be only imposed operators of theaters, cinemas, concert The Court recognized exceptional circumstances that justify noncompliance by
halls, or places where one seeks to entertain himself by seeing or viewing a a taxpayer with Section 187 of the Local Government Code. In the case of,
show or performance.Teresita Camarillo sought to collect once more from Alta Ongsuco v. Malones, it stated that, it is true that the general rule is that before
Vista Golf but the latter still argued for the same reason. a party is allowed to seek the intervention of the court, he or she should have
availed himself or herself of all the means of administrative processes afforded
After some time, Mayor Osmefia sent petitioner a Closure Order which states him or her. The doctrine of exhaustion of administrative remedies is based on
that the latter committed violations of the laws and Cebu City Ordinances. This practical and legal reasons. The availment of administrative remedy entails
prompted Alta Vista Golf to file with RTC a Petition for Injunction, Prohibition, lesser expenses and provides for a speedier disposition of controversies.
Mandamus, Declaration of Nullity of Closure Order, Declaration of Nullity of However, there are several exceptions to this rule. The rule on the exhaustion
Assessment, and Declaration of Nullity of Section 42 of Cebu City Tax of administrative remedies is intended to preclude a court from arrogating
Ordinance, with Prayer for Temporary Restraining Order and Writ of unto itself the authority to resolve a controversy, the jurisdiction over which is
Preliminary Injunction against respondents alleging that said Closure Order was initially lodged with an administrative body of special competence. Thus, a case
unconstitutional. Also, it alleged that Section 42 of the Revised Omnibus Tax where the issue raised is a purely legal question, well within the competence;
Ordinance, as amended, is null and void for being ultra vires or beyond the and the jurisdiction of the court and not the administrative agency, would
taxing authority of respondent Cebu City, and consequently, the assessment clearly constitute an exception. Resolving questions of law, which involve the
against petitioner for amusement tax for 1998 based on said Section 42 is interpretation and application of laws, constitutes essentially an exercise of
illegal and unconstitutional; and assuming arguendo that respondent Cebu City judicial power that is exclusively allocated to the Supreme Court and such
has the power to impose amusement tax on petitioner, such tax for 1998 lower courts the Legislature may establish.
already prescribed and could no longer be enforced. On the contrary,
respondents filed a Motion to Dismiss on the following grounds, lack of Since the parties in this case raised the issue whether Municipal Ordinance No.
jurisdiction of RTC, non-exhaustion of administrative remedies, noncompliance 98-01 was valid and enforceable despite the absence, prior to its enactment, of
with sec. 187, 252 of Local Government Code and sec 75 of RA 3857. RTC a public hearing held in accordance with Article 276 of the Implementing Rules
denied the prayer of Alta Vista Golf for issuance of TRO. Meanwhile, petitioner and Regulations of the Local Government Code. This is undoubtedly a pure
paid respondent the assessed amusement tax including its penalties, interests question of law, within the competence and jurisdiction of the RTC to resolve.
and surcharges.
Moreover, Paragraph 2(a) of Section 5, Article VIII of the Constitution, expressly
RTC granted respondent’s motion to dismiss adjudging that when a taxpayer establishes the appellate jurisdiction of this Court, and impliedly recognizes the
questions the validity of a tax ordinance passed by a local government original jurisdiction of lower courts over cases involving the constitutionality or
legislative body, a different procedure directed in Section 187 is to be followed. validity of an ordinance. The Supreme Court is vested the power to review,
Thus, said provision is mandatory. The Motion for Reconsideration filed by Alta revise, reverse, modify or affirm on appeal or certiorari, as the law or the Rules
Vista Golf was denied. Hence, a petition was filed before the Supreme Court of Court may provide, final judgments and orders of lower courts in all cases in
raising pure questions of law. which the constitutionality or validity of any treaty, international or executive
agreement, law, presidential decree, proclamation, order, instruction,
ordinance, or regulation is in question.

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