## Administrative Law

Question 1

What is Administrative Law?

Answer 1

Administrative Law is that branch of modern law under which the executive department of the government, acting in a quasi-legislative or quasi-judicial capacity, interferes with the conduct of the individual for the purpose of promoting the well-being of the country

Question 2

What are administrative agencies?

Answer 2

Administrative agencies are the organs of government, other than a court and other than the legislature, which affect the rights of private parties either through adjudication or through rule-making.

Question 3

What is E.O. No. 292?

Answer 3

Revised Administrative Code - it is a general law and incorporates in a unified document the major structural, functional and procedural principles of governance, and embodies changes in administrative structure and procedures designed to serve the people.

Question 4

How many books are there in the RAC?

Answer 4

The RAC is divided into 7 Books:
1. Book I - Sovereignty and General Administration
2. Book II - Distribution of Powers of the three branches of Government
3. Book III - Office of hte President
4. Book IV - Executive Branch
5. Book V - Constitutional COmmissions
6. Book VI - National Government Budgeting
7. Book VII - Administrative Procedure

These Books contain provisions on the organization, powers and general administration of the executive, legislative and judicial branches of government, the organization and administration of departments, bureaus and offices under the executive branch, the organization and functions of the Constitutional Commissions and other constitutional bodies, the rules on the national government budget, as well as guideline for the exercise by administrative agencies of quasi-legislative and quasi-judicial powers.

Question 5

[BQ] State with reason(s) which of the following is a government agency or a government instrumentality:
(a) Department of Public Works and Highways;
(b) Bangko Sentral ng Pilipinas;
(c) Philippine Ports Authority;
(d) Land Transprotation Office;
(e) Land Bank of the Philippines.

Answer 5

An agency of the government refers to any of the various units of the government, including a department, bureau, office, instrumentality, or government-owned or controlled corporation, or a local government or a distinct unit therein.

An instrumentality of government refers to any agency of the national government, not integrated within the department framework, vested with special functions or jurisdiction by law, endowed with some if not all corporate powers, administering special funds, and enjoying operational autonomy, usually through a charter. This term includes regulatory agencies, chartered institutions and government-owned or controlled corporation.

(a) The Department of Public Works and Highways is an agency of the government because it is a department.
(b) The Bangko Sentral ng Pilipinas is a government instrumentality, because it is vested with special function of being the central monetary authority, and enjoys operational autonomy through its charter.
(c) The Philippine Ports Authority is a government instrumentality, because it is merely attached to the Department of Transportation and Communication, it is vested with special function of regulating ports, and it is endowed with all corporate powers through its charter.
(d) The Land Transportation Office is an agency of the government, because it is an office under the Department of Transportation and Communication.
(e) The Land Bank of the Philippines is a government instrumentality because it is vested with the special function of financing agrarian reform, it is endowed with all corporate powers, and it enjoys autonomy through a charter (Sec. 75, Agrarian Land Reform Code).

Question 6

Differentiate agency vs. instrumentality of government?

Answer 6

An agency of the government refers to any of the various units of the government, including a department, bureau, office, instrumentality, or government-owned or controlled corporation, or a local government or a distinct unit therein.

An instrumentality of government refers to any agency of the national government, not integrated within the department framework, vested with special functions or jurisdiction by law, endowed with some if not all corporate powers, administering special funds, and enjoying operational autonomy, usually through a charter. This term includes regulatory agencies, chartered institutions and government-owned or controlled corporation.

Question 7

[BQ] The Constitution distinguishes between two types of owned and/or controlled corporations: those with original charters and those which are subsidiaries of such corporations. In which of the following rule/rules is such a distinction made? Consider each of the following item and explaing briefly your answer, citing pertinent provisions of the Constitution.

(1) The rule prohibiting the appointment to certain government positions, of the spouse and relatives of the President within the fourth degree of consanguinity or affinity.

(2) The rule making it incompatible for members of Congress to hold office or employment in the government.

(3) The rule prohibiting members of the Constitutional Commissions, during their tenure, to be financially interested in any contract with or any franchise or privilege granted by the government.

(4) The rule providing for post audit by the COA of certain government agencies.

(5) The rule requiring Congress to provide for the standardization of compensation of government officials and employees.

Answer 7

(1) Sec. 13, Article VII of the Constitution which prohibits the President from appointing his spouse and relatives within the fourth degree of consanguinity or affinity does not distinguish btween government corporations with original charters and their subsidiaries, because the prohibition applies to both.

(2) Section 13, Article VI of the Constitution, which prohibits members of Congress from holding any other office during their term without forfeiting their seats, does not distinguis between government corporations with original charters and their subsidiaries, because the prohibition applies to both.

(3) Section 2, Article IX-A of the Constitution, which prohibits Members of the Constitutional Commission from being financially interested in any contract with or any franchise or privilege granted by the Government, does not distinguish between government corporations with original charters and their subsidiaries, because the prohibition applies to both.

(4) Section 2(1), Article IX-D of the Constitution, which provides for post audit by the Commission on Audit of government corporations, does not distinguish between government corporations with original charters and their subsidiaries because the provision applies to both.

(5) Section 5, Article IX-B of the Constitution, which provides for the standardization of the compensation of government officials and employees, distinguishes between government corporations and their subsidiaries, for the provision applies only to government corporations with original charters.

Question 8

Are government-owned or controlled corporations within the scope and meaning of the “Government of the Philippines”?

Answer 8

Yes. GOCCs are within the scope and meaning of the Government of the Philippines if they are performing governmental or political functions.

Section 2 of the Introductory Provision of the Administrative Code of 1987 defines the government of the Philippines as the corporate governmental entity through which the functions of government are exercised throughout the Philippines, including, same as the contrary appears from the context, the various armsthrough which political authority is made effective in the Philippines, whether pertaining to the autonomous regions, the provincial, city, municipal or barangay subdivisions or other forms of local government.

Question 9

What are the two general classifications of the power of administrative agencies?

Answer 9

Quasi-legislative and quasi-judicial powers.

Question 10

What is the quasi-legislative power of administrative agencies?

Answer 10

Adminstrative agencies possess quasi-legislative or rule-making powers, among others. It is the power to make rules and regulations which results in delegated legislation that is within the confines of (i) the granting statute; (ii) the doctrine of non-delegability; and (iii) separation of powers. The rule-making power, and even the power to fix rates, when such rules and/or rates are meant to apply to all enterprises of a givn kind throughout the Philippines may partake of legislative character.

Note: recall requisites

Question 11

Requisites for exercise of quasi-legislative power

Answer 11

Doctrine of valid delegation –> must pass the completeness and sufficient standard tests

In the exericse of [quasi-legislative] power, the rules and regulations that administrative agencies promulgate whould be within the scope of the statutory authority granted by the legislature to the administrative agency. It is required that the regulation be germane to the objects and purposes of the law, and be not in contradiction to, but in conformity with the standards prescribed by law. They must conform to and be consistent with the provisions of the enabling statute in order for such rule or regulation to be valid.

It is, however, important to stress that before there can even be a valid administrative issuance, there must be a showing that the delegation of legislative power is itself valid. It is valid only if there is a law that (a) is complete in itself, setting forth therein the policy to be executed, carried out, or implemented by the delegate; and (b) fixes a standard the limits of which are sufficiently determinate and determinable to which the delegate must conform in the performance of his functions.

Question 12

Requirements for effectivity of administrative issuances

Answer 12

Publication
Deposit in ONAR UP Law Center

Question 13

What are the types of administrative issuances

Answer 13

Adinistrative issuances may be distinguished according to their nature and substance: legislative and interpretative.

1. A legislative rule is the matter of subordinate legislation, designed to implement a primary legislation by providing the details thereof.
2. An interpretative rule is designed to provide guidelines to the law, which the administrative agency is in charge of enforcing. If an administrative rule is interpretative in nature, its applicability needs nothing further than its bare issuance for it gives no real consequence more than what the law prescribed.

NOTE: However, if an administrative rule goes beyond providing for the means to facilitate the implementation of the law but substantially increases the burden of those governed, it is incumbent upon the agency to accord those directly affected a chance to be heard, and thereafter to be duly informed, before that new issuance is given force and effect of law.

Question 14

Distinguish administrative rule-making from executive’s inherent power to adopt rules and regulations to execute or implement the law.

Answer 14

The inherent power of the Executive to adopt rules and regulations to execute or implement the law is different from the delegated legislative power to prescribe rules. The inherent power of the Executive to adopt rules to execute the law does not require any legislative standards for its exercise while the delegated legislative power requires sufficient legislative standards for its exercise.

Whether the rule-making power by the Executive is delegated legislative power or an inherent Executive power depends on the nature of the rule-making power involved. If the rule-making power is inherently a legislative power, such as the power to fix tariff rates, the rule-making power of the Executive is a delegated legislative power. In such event, the delegated power can be exercised only if sufficient standards are prescribed in the law delegating the power.

If the rules are issued by the President in implementation or execution of self-executory constitutional powers vested in the President, the rule-making power of the President is not a delegated legislative power. The rule is that the President can exefcute the law without any delegation of power from the legislature. Otherwise, the President becomes a mere figure-head and not the sole Executive of the Government.

Question 15

Explain the requirement of hearing (or adversarial proceeding) in administrative rule making

Answer 15

An administrative rule, in the nature of subordinate legislation, is designed to implement a law by providing its details, and before it is adopted there must be a hearing under the Revised Administrative Code.

When an administrative rule substantially adds to or increases the burden on those concerned, the administrative agency must accord those directly affected a chance to be heard before its issuance.

TS: 19:00

Question 16

Pursuant to a law ordering the fixing of “just and reasonable standards, classifications, regulations, practices, or services to be furnished, observed and imposed by operators of public utility vehicles,” the LTFRB promulgated and published a regulation that “no car beyond six years shall be operated as a taxi.” Taxi operators assailed the validity of the regulation contending that procedural due process was violated because position papers were not asked of them and no notice was given to them prior to the issuance of the regulation. Were the taxi operators denied procedural due process? Explain briefly.

Answer 16

No, the taxi operators were not denied procedural due process. In administrative law, implementing agencies have the authority to fill in the details of a law enacted by Congress. What is essential is the publication of the implementing rules and regulations.

Alternative answer:

Yes, the taxi operators were denied procedural due process. The RAC (Bk VII Ch 2 S9) requires the conduct of a hearing in two instances. A hearing is required when an administrative rule in the nature of subordinate legislation and designed to implement a law by providing its details is adopted. When an admin rule substantially adds to or increases the burden on those concerned, an admin agency must accord those directly affected a chance to be heard before its issuance.

As decided by the SC:
(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 any 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 2 weeks before the first hearign thereon (Genuino v. De Lima 2018)

RAC does not prescribe the specific procedure (position papers, etc)

Question 17

Publication requirement of admimistrative rule

Answer 17

Publication requirement: Both the requirements of publication and filing of administrative issuances intended to enforce existing laws are mandatory for the effectivity of said issuances.

(1) 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.

Covered by this rule are presidential decrees and executive orders promulgated by the President in the exercise of legislative powers whenver the same are validly delegated by the legislature or, at present, directly conferred by the Constitution. Administrative rules and regulations must also be published if their pupose is to enforce or implement existing law pursuant also to a valid delegation.

(2) Every agency shall file with the University of the Philippines Law Center three (3) certified copies of every rule adopted by it. Each rule shall become effective fifteen (15) days from the date of filing as above provided unless a different date is fixed by law, or specified in the rule in cases of imminent danger to public health, safety and welfare, the existence of which must be expressed in a statement accompanying the rule. The agency shall take appropriate measures to make emergency rules known to persons who may be affected by them.

Question 18

Is there a recourse to courts for the exercise of administrative agencies exercising quasi-legislative power?

Answer 18

Yes. If what is being assailed is the validity or constitutionality of a rule or regulation issued by an administrative agency in the performance of its quasi-legislative functions, then the Regional Trial Court has jurisdiction to pass upon the same. The determination of whether a specific rule or set of rules issued by an administrative agency contravenes the law or the Constitution is within the jurisdiction of the Regional Trial Court.

(A petition for prohibition is not the proper remedy to assail an administrative order issued in the exercise of a quasi-legislative function. Prohibition is an extraordinary writ directed against any tribunal, corporation, board, officer or person, whether exercising judicial, quasi-judicial or ministerial functions, ordering said entity or person to desist from further proceedigns when said proceedings are without or in excess of said entity’s or person’s jurisdiction, or are accompanied with grave abuse of discretion, and there is no appeal or any other plain, speedy and adquate remedy in the ordinary course of law.)

Question 19

What is a purely administrative proceeding?

Answer 19

A purely administrative proceeding is one which does not involve the settling of disputes involving conflicting rights and obligations. It is merely concerend with either: (a) the direct implementation of laws to certian given facts as a consequence of regulation; or (b) an undertaking to gather facts needed to pursue a further legal action or remedy in the case of investigation. In other words, it does not make binding pronouncements as to a party’s rights and/or obligations as a result of a conflict or controversy whether legal or factual. Covered by this type of proceeding is an agency’s grant or denial of applications, licenses, permits, and contracts which are executive and administrative in nature.

In the case of NTC v. Brancom (2019), the SC discussed the difference between a purely administrative proceeding and a quasi-judicial proceeding. The discussion led to the legal conclusion that application proceedings pertain to the NTC’s purely administrative functions while complaint proceedings pertain to its quasi-judicial functions.

Question 20

What is a quasi-judicial proceeding?

Answer 20

A quasi-judicial proceeding 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. It involves: (a) taking and evaluating evidence; (b) determining facts based upon the evidence presented; and (c) rendering an order or decision supported by the facts proved. In other words, it involves a determination, with respect to the matter in controversy, of what the law is; what the legal rights and obligations of the contending parties are; and based thereon and the facts obtaining, the adjudication of the respective rights and obligations of the parties.

In the case of NTC v. Brancom (2019), the SC discussed the difference between a purely administrative proceeding and a quasi-judicial proceeding. The discussion led to the legal conclusion that application proceedings pertain to the NTC’s purely administrative functions while complaint proceedings pertain to its quasi-judicial functions.

Question 21

When an administrative agency entertains oppositors to a permit application, does this convert the application proceeding to a quasi-judicial proceeding?

Answer 21

No. Proceedings related to permit applications are non-adversarial in nature for there are virtually no contending parties. Although an administrative agency may entertain oppositors to an application, such undertaking does not automatically convert the proceeding to a quasi-judicial one for a couple of reasons:
(a) the subject of application proceedings pertain only to an applicant’s privilege to engage in a regulated activity-it does not vest or deprive a party to such proceedings of any right or legally protected interest; and
(b) oppositions to applications merely aid an administrative agency’s function in regulating or assessing an applicant’s legal fitness to hold a franchise.

NOTE: The opposition is not received for the purpose of adjudicating any rights of the parties.

NTC v. Brancom (2019)

Question 22

What are the two accepted tests to determine whether or not there is a valid delegation of legislative power?

Answer 22

Compeleteness test and the sufficient standard test.

Completeness test - the law must set forth the policy to be carried out by the delegate.

Sufficient standard test - the limits to which the delegate must conform in the performance of his functions are determinate or determinable.

Question 22

[BQ] Suppose that Congress passed a law creating a Department of Human Habitat and authorizing the Department Secretary to promulgate implementing rules and regulations. Suppose further that the law declared that violation of the implementing rules and regulations so issued would be punishable as a crime and authorized the Department Secretary to prescribe the penalty for such violation. If the law defines certain acts as violations of the law and makes them punishable, for example, with imprisonment of three (3) years or a fine in the amount of P10,000.00, or both such imprisonment and fine, in the discretion of the court, can it be provided in the implementing rules and regulations promulgated by the Department Secretary that their violation will also be subject to the same penalties as those provided in the law itself? Explain your answer fully.

Answer 22

No. The rules and regulations promulgated by the Secretary of Human Habitat cannot provide that the penalties for their violation will be the same as the penalties for the violation of the law. The fixing of the penalty for criminal offenses involves the exercise of legislative power and cannot be delegated. The law itself must prescribe the penalty.

GDV: This problem in rel. to rule-making power presents the issue of w/n the tests for valid delegation have been met. The answer is no, they have not been met. First, the determination of what acts are ought to be criminalized and the determination of the penalty are within the exercise of the state’s police power, and they belong to Congress.

Such that if an implementing agency will formulate rules based on the law, for those rules to be valid, they must comply with the test of valid delegation.

ITC, there appears to be lack of sufficient standard. The determination by the Secretary for the corresponding penalty for the criminal actions identified under the law is wide.

The sub-question that’s offered here is: where the law itself states that the violation of the law will be meted a corresponding penalty, may this be taken as a sufficient standard? No as well.

Question 23

[BQ] The Maritime Industry Authority (MARINA) issued new rules and regulations governing pilotage services and fees, and the conduct of pilots in Philippine ports. This it did without notice, hearing nor consultation with harbor pilots or their associations whose rights and activities are to be substantially affected. The harbor pilots then filed suit to have the new MARINA rules and regulations declared unconstitutional for having been issued without due process. Decide the case.

Answer 23

The issuance of the new rules and regulations violated due process. S9 ChII BkVII of the RAC provides that as far as practicable, before adopting proposed rules, an administrative agency should public or circulate notices of the proposed rules and afford interested parties the opportunity to submit their views. Also, in the fixing rates, no rule shall be valid unless the proposed rates shall have been published in a newspaper of general circulation at least two weeks before the first hearing on them.

The SC ruled that when an administrative rule substantially increases the burden of those directly affected, they should be accorded the chance to be heard before its issuance. Furthermore, the said rules and regulations must be submitted to the UP Law Center for publication. THis requirement is mandatory. Unless this is complied with, the rule cannto be enforced.

Question 24

[BQ] The Philippine Ports Authority (PPA) General Manager issued an administrative order to the effect that all existing regular appointment to harbor pilot positions shall remain valid only up to December 31 of the current year and that henceforth all appointments to harbor pilot positions shall be only for a term of one year from date of effectivity, subject to yearly renewal or cancellation by the PPA after conduct of a rigid evaluation of performance. Pilotage as a profession may be practiceo nly by duly licensed individuals, who have to pass five government professional examinations.

The Harbor Pilot Association challenged the validity of said administrative order arguing that it violated the harbor pilots’ right to exercise their profession and their right to due process of law and that the said administrative order was issued without prior notice and hearing. The PPA countered that the administrative order was valid as it was issued in the exercise of its administrative control and supervision over harbor pilot under PPA’s legislative charter; and that in issuing the order as a rule or regulation, it was performing its executive or legislative, and not a quasi-judicial function.

Due process of law is classified into two kinds, namely, procedural due process and substantive due process of law. Was there, or was there no violation of the harbor pilots’ right to exercise their profession and their right to due process of law?

Answer 24

The right of the harbor pilots to due process was violated. Pilotage as a profession is a property right protected by the guarantee of due process. The pre-evaluation cancellation of the licenses of the harbor pilots every year is unreasonable and violated their right to substantive due process. The renewal is dependent on the evaluation after the licenses have been cancelled. The issuance of the administrative order als oviolated procedural due process, since no prior public hearing was conducted. When a regulation is being issued under the quasi-legislative authority of an administrative agency, the requirements of notice, hearing and publication must be observed.

Question 25

[BQ] The KKK Television Network (KKK-TV) aired the documentary “Case Law; Howe the Supreme Court Decides” without obtaining the necessary permit required by PD 1986. Consequently, the Move and Television Review and Classification Board (MTRCB) susepnded the airing of KKK-TV programs. MTRCB delcared that under PD 1986, it has the power of prior review over all television programs, except “newsreels” and programs “by the Government,” and the subject documentary does not fall under either of these twoclasses. The suspension order was ostensibly based on Memo. Circ. 98-17 which grants MTRCB the authority to issue such an order.

KKK-TV filed a certiorari petition in court, raising the following issues:

While Memo Circ No. 98-17 was issued and published in a newspaper of general circulation, a copy thereof was never filed with the Office of the National Register (ONAR) of the UP Law Center.

Answer 25

In accordance with Ch 2 Bk VII of RAC, MC No. 98-17 must be filed with the UP Law Center. It cannot be enforced until it has been filed with the UP Law Center.

Question 26

What is meant by quasi-judicial power?

Answer 26

Quasi-judicial or administrative adjudicatory power is that which vests upon the administrative agency the authority to adjudicate the rights of persons before it. It is the power of the administrative agency to determine questions of fact to which the legislative policy is to apply, in accordance with the standards laid down by the law itself in enforcing and administering the same law.

The administrative body exercises its quasi-judicial power when it performs in a judicial manner an act that 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.

Question 27

What powers are considered to be included in an agency’s quasi-judicial power or function?

Answer 27

Subpoena power and contempt ower.

The power to punish for contempt is inherently judicial. It may be exercised only if expressly conferred by law and when the administrative agency is engaged in the performance of its quasi-judicial powers. [TS: 40:38]

Question 28

What are the requirements of administrative due process or the Ang Tibay cardinal primary rights?

Answer 28

Ang Tibay cardinal primary rights
1. Right to a hearing (includes the right of a party to present his own case and submit evidence in support thereof)
2. The tribunal must consider the evidence presented
3. Decision must be supported by evidence
4. Evidence must be substantial
5. Decision must be rendered on the evidence presented at the hearing or at least contained in the record and disclosed to the parties affected
6. INdependent consideration of judge (Must not simply accept the views of a subordinate)
7. Decision rendered in such a manner as to let the parties know the various issues involved and the reasons for the decision rendered.

Question 29

Procedural due process in administrative proceedings

Answer 29

1. The right to actual or constructive notice of the institution of proceedings, which may affect a respondent’s legal rights
2. A real opportunity to be heard personally or with the assistance of counsel, to present witnesses and evidence in one’s favor, and to defend one’s rights
3. A tribunal vested with competent jurisdiction and so constituted as to afford a person charged administratively with a reasonable guarantee of honestly as well as impartiality
4. A finding by said tribunal which is supported by substantial evidence submitted for consideration during the hearing or contained in the records made known to the parties

Question 30

Is administrative appeal and review available?

Answer 30

Yes. The rule is: the decision of an agency shall become final and executory fifteen (15) days after the receipt of a copy thereof by the party adversely affected UNLESS within that period an administrative appeal or judicial review, if proper, has been perfected.

Question 31

Quasi-judicial power

What is the requirement for the decision of an administrative agency?

Answer 31

Every decision rendered by the agency in a contested case shall be in writing and shall state clearly and distinctly the facts and the law on which it is based. The agency shall decide each case within thirty (30) days following its submission. The parties shall be notified of the decision personally or by registered mail addressed to their counsel of record, if any, or to them.

Question 32

Appeal to Department Head

Answer 32

Appeal to Department Head. Unless otherwise provided by law or executive order, an appeal from a final decision of the agency may be taken to the Department head. The appeal shall stay the decision appealed from unless otherwise provided by law, or the appellate agency directs execution pending appeal, as it may deem just, considering the nature and circumstances of the case.

Question 33

Judicial review of agency decisions

Answer 33

Judicial Review. Agency decisions shall be subject to judicial review in accordance with this chapter and applicable laws. Any party aggrieved or adversely affected by an agency decision may seek judicial review. The action for judicial review may be brought against the agency, or its officers, and all indispensable and necessary parties as defined by the Rules of Court.

Question 34

Quantum of evidence in admin proceedings (context of appeal)

Answer 34

Substantial Evidence. Review shall be made on the basis of the recrod taken as a whole. The findings of fact of the agency when supported by substantial evidence shall be final except when specifically provided otherwise by law.

Question 35

[BQ] The Manila Tranposrtation company applied for upward adjustment of its rates before the Transprotation Regulatory Board. Pending the petition, the TRB, without previous hearing, granted a general nationwide provisional increase of rates. In another Order, TRB required the company to pay the unpaid supervisory fees collectible under the Public Service Law. After due notice and hearing, on the basis of the evidence presented by Manila Transportation Company and the Oppositors, TRB issued an Order reducing the rates applied for by one fourth.

Characterize the powers exercised by the TRB in this case and determine whether under the present constitutional system the TRB can be validly conferred the powers exercised by it in issuing the Orders given above. Explain.

Answer 35

The orders in this case involve the exercise of judicial function by an administrative agency, and therefore, as a general rule, the cardinal primary rights enumerated in Ang Tibay v. CIR must. be observed. A rate order, which applies exclusively to a particular party and is predicated on a finding of fact, partakes of the nature of a quasi-judicial, rather than a legislative function. [clarify this part]

The first order, granting a provisional rate increase without hearing, is valid if justified by urgent public need, such as increase in the cost of fuel. THe power of the Public Service commission to grant such increase was upheld in several cases.

The second order requiring the company to pay unpaid supervisory fees under the Public Service Act cannot be sustained. The company has a right to be heard before it may be ordered to pay.

The third order can be justified. The fact that the TRB has allowed a provisional rate increase does not bind it to make the order permanent if the evidence later submitted does not justify increase but, on the contrary, warrants the reduction of rates.

Question 36

[BQ] A complaint was filed by intelligence agents of the Bureau of Immigration and Deportation (BID) against Stevie, a German national, for his deportation as an undesirable alien. The immigration Commissioner directed the Special Board of inquiry to conduct an investigation. At the said investigation, a lawyer from the Legal Department of the BID presented as witness the three intelligence agents who filed the complaint. On the basis of the findings, report and recommendation of the Board of Special Inquiry, the BID Commissioners unanimously voted for Stevie’s deportation. Stevie’s lawyer questioned the deportation order:

(1) On the ground that Stevie was denied due process because the BID Commissioners who rendered the decision were not the ones who received the evidence, violation of the “He who decides must hear” rule. Is he correct?

(2) On the ground that there was a violation of due process because the complainants, the prosecutor and the eharing officers were all subordinates of the BID Commissioners who rendered the deportation decision. Is he correct?

Answer 36

(1) No, Stevie is not correct. Administrative due process does not require that the actual taking of testimony or the presentation of evidence before the same officer who will decide the case. So long as the actual decision on the merits of the case is made by the officer authorized by law to decide, the power to hold a hearing on the basis of which decision will be made can be delegated and is not offensive to due process.

(2) No, Steview as not denied due process simply because the complainants, the prosecutor, and the hearing officers were all subordinates of the Commissioner of the Bureau of Immigration and Deprotation. The findings of the subordinates are not conclusive upon the Commissioners, who have the discretion to accept or reject them.

What is important is that Stevie was not deprived of his right to present his own case and submit evidence in support thereof, the decision is supported by substantial evidence, and the commissioners acted on their own independent consideration of the law and facts of the case, and did not simply accept the views of their subordinates in arriving at a decision.

Question 37

Power of administrative agencies

Answer 37

Fact-finding, investigative, licensing, rate-fixing

Question 38

Explain admin agency’s investigative power?

Answer 38

Investigative power - admin agencies’ power to conducti nvestigations and hearings, and make findings and recommendations thereon. This is an inherent function of admin agencies.

Question 39

Discuss the scope of an admin agency’s licensing power

Answer 39

Licensing power - includes agency process involving the grant, renewal, denial, revocation, suspension, annulment, withdrawal, limitation, amendment, modification or conditioning of a license.

Question 40

Admin agency’s rate-fixing power

Answer 40

Rate means any charge to the public for a service open to all and upon the same terms, including individual or joint rates, tolls, classifications, or schedules thereof, as well as commutation, mileage, kilometrage, and other special rates which shallb e imposed by or regulation to be observed and followed by any person.

This pwoer may be quasi-legislative or quasi-judicial.
Entails compliance with RAC, in relation to public participation and publication.

Question 41

What SC’s discussion on ERC’s imposition of its approved NPC Time of Use (TOU) rates as a form of price adjustment or price control in PSALM v. PEMC (2020)?

Answer 41

SC discussed administrative agencies and rate-fixing, and legislative standard fro admin rate-fixing.

On admin agencies and rate fixing –> Admin agencies are considered specialists in the fields assigned to them; hence they can resolve problems in their respective filed with more expertise and dispatch than can be expected from the legislature or courts of justice.

On legislative standard for admin rate-fixing –> In the fixing of rate, the only standard which the legislature is required to prescribe for the guidance of hte admin authority is that the rate be reasonable and just. What is just and reasonable rate is a quesiton of fact calling for the exercise of discretion, good sense and a fair, enlightened and independent judgment. This contemplates rates that are not too low as to be confiscatory and not too high as to be oppressive.

Question 42

Answer 42

Question 43

Doctrine of primary jurisdiction

Answer 43

Question 44

Requisites of the doctrine of primary jurisdiction

Answer 44

Question 45

When doctrine of primary jurisdiction not applicable

Answer 45

Question 47

Discuss the doctrine of exhaustion of administrative remedies

Answer 47

Question 47

Exceptions to the doctrine of exhaustion of administrative remedies

Answer 47

Question 48

Effect of the doctrine of exhaustion of administrative remedies

Answer 48

Question 49

Distinguish primary jurisdiction from exhaustion of admin remedies

Answer 49

Question 50

Exceptions to exhaustion of administrative remedies

Answer 50

Question 51

Does non-compliance with exhaustion of admin remedies result in ousting the court of jurisdiction?

Answer 51