ADMINISTRATIVE LAW

(2018)
NOEL OSTREA, ATENEO COLLEGE OF LAW
KEY CONCEPT OUTLINE

Definition* Procedural due

AAs (administrative process in
agencies) & powers administrative
Quasi-legislative cases
power Doctrine of
Non-delegation of
legislative power and primary
its exceptions jurisdiction
Quasi-judicial power Doctrine of
exhaustion of
BAR SYLLABUS, ADMI LAW

 General Principles  Administrative

 Administrative Agencies Appeal and
 QL/Rule-Making Power Review
 Kinds of Administrative  Administrative Res
R&R
Judicata
 Requisites for Validity
 QJ/Adjudicatory
 Fact-Finding,
Power
 Administrative Due Investigative,
Process Licensing and
Rate-Filing Powers
OTHER DEFINITION

Itis the study of the law governing

administrative agencies and
officials.
WHAT IS ADMINISTRATIVE LAW ?

Itis that branch of modern law under which

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

1. The Constitution
2. Law, or
3. By authority of law
EXAMPLES of AAs (APPEAL TO CA)1

CSC2 NEA
CBAA ERB
SEC NTC
OP DAR
LRA GSIS
SSS ECC
CAB IC
 RATIONALE

COMPLEXITY REQUIRES
SPECIALIZATION
RATIONALE

Due to the growing complexity of modern

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

Thisis the reason for the increasing

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

1. Expertise in Narrow vision and

highly arrogance
Trampling of
technical fields
individual rights
2. Efficiency Lack of
3. Independence accountability for
actions and
lawlessness
AA BODIES, RATIONALE/TYPES1
1. Gratuity, grant or special
privilege  Board of Pensions for Veterans,
PVA
2. Government functions
3. Business service for public  BID/BSI, CSC, BIR, BSP
4. Regulating business  Philpost, MWSS, PNR, CAB

affected with public interest Fiber Inspection Board, IPO, IC

5. Regulating businesses
under police power of State  SEC, MTRCB, PRC
6. Adjust controversies due to
strong social policy  NLRC, DOLE, SSS, BLS
ADMI POWERS, IN GENERAL

The term administrative power or

administrative function is a convenient rather
than a technical term.
It is any power not explicitly allocated in the
Constitution, although by nature it is
legislative, executive or judicial.
It involves the exercise of judgment and
discretion, particularly when referring to the
power to regulate and control.
NON-DELEGABILITY

Potestas delegata non potest delegari

A delegated power constitutes not
only a right but a duty to be
performed by the delegate through
the instrumentality of his own mind
Not to be performed through the
intervening mind of another1
NON-DELEGABILITY (2)

The power to whose judgment, wisdom and

patriotism this high prerogative has been
entrusted cannot relieve itself of the
responsibility by choosing other agencies
upon which the power shall be delegated.
Nor can it substitute the judgment, wisdom
and patriotism of any other body for those
to which alone/ the people have seen fit to
confide this sovereign trust.
(US v. Barrias, 1 Phil. 327 [1908].)
NON-DELEGABILITY (3)

The legislature neither must nor can

transfer the power of making laws
to anybody else
or place it anywhere but where
the people have.
--Locke
EXCEPTIONS TO NON-DELEGABILITY

 When permitted by the Constitution

• The emergency powers clause (Art. VI); the flexible tariff clause (Art.
VI); delegation of revenue powers to LGs (Art. X); rule making power
of SC (Art. VIII) and the ConComs (Art. IX)
 Local governments

Administrative agencies; Rule-

making power with the force
and effect of law
OTHER AA POWER LIMITATIONS

Validity of granting statute

Completeness1 and sufficient standard2 tests

 Constitutional protections

Due process and equal protection

considerations
Notice (by way of publication)
Notice (by way of public hearing)
 Statutory requirements for regulations
 Reasonableness! (Again.)
BAR Q

(1.) The two accepted tests to determine whether or not there is a

valid delegation of legislative power are the Completeness Test
and the Sufficient Standard Test. Explain each. (4%) (2005 Bar)
ADMINISTRATIVE ORGANIZATION

Officeof the Private Office

President Executive Office
Staff Support
System/PMS
PAs (Presidential
Assistants or
Advisers)
ADMIN ORGANIZATION (2)

With Prez as Chair

Attached


 Under Prez’s supervision and

Executive control
 Under administrative supervision
Agencies of OP
 Attached to OP for policy and
proper coordination
 Not placed under any other
department
ASPECTS OF PREZ
REORGANIZATION
Restructure OP by Transfer agency
abolishing,
consolidating or
under OP to
merging units or other
transferring functions departments or
Transfer OP function
agencies or
to any other
department or
vice-versa1
agency or vice-versa
GOVT ORGANIZATION/AGENCY1,2

What is a:

Department?  An executive department

created by law
Bureau?  Any principal subdivision or
unit of any department
 May be line or staff

Regional  Established according to

Office? law defining field service
areas
 Established only in cases of
District Office? clear necessity
GOCC
 Any agency organized as
a stock or non-stock  May perform governmental or
proprietary functions, or both
corporation, vested with
functions relating to
public needs whether
governmental or
proprietary in nature and
owned by the gov’t either
directly or thru
instrumentalities or up to
at least 50% CS
ADMINISTRATIVE SUPERVISION

Supervision means “overseeing or the

power or authority of an officer to see
that their subordinate officers perform
their duties. If the latter fail or neglect
them, the former may take such
action or steps as prescribed by law to
make them perform their duties”.1
 Distinguished from power of control 2 or power of review
PREZ POWER TO REORGANIZE1

Express power; under Section 31 of AC872,

“[T]he President, x x x in order to

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

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

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

Clearly, the abolition of the PAGC and

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

Express
Implied (by
necessary
implication)
Inherent
powers are
excluded
NATURE OF ADMI POWERS

1. Jurisdiction is
limited
2. Construction is
broad
3. Limited or
defined by law
POWERS

1. Quasi-legislative power
2. Quasi-judicial power
3. Others
 Former SOJ Neptali GONZALES has referred to these as “incidental”
powers
 E.g. Investigation, supervising, prosecuting, advising and informally
adjudicating
OTHER POWERS

Determinativ Investigatory
e
DETERMINATIVE POWERS

Licensing—PERMITS the
1. Enabling 1.
doing of an act which the
2. Directing law undertakes to regulate
and which would be unlawful
3. Dispensing without gov’t approval
2. Involves the correcting
4. Summary powers of a public utility
board or equivalent; powers
5. Equitable of assessment under
revenue laws, etc.
DETERMINATIVE POWERS 2

Dispensing
(3.
3. The authority to exempt from or
relax a general prohibition, or
4. Summary authority to relieve from an
affirmative duty.1
5. Equitable) 4. Those that apply compulsion or force
against a person or property to
effectuate a legal purpose without a
judicial warrant to authorize such
action. 2
5. To determine the law upon a
particular state of facts. 3
SCOPE OF INVESTIGATORY POWERS

To initiate  Torequire the

To conduct attendance of
witnesses, giving of
To inspect and testimony and the
examine production of evidence
To prescribe forms  Technical rules of
and methods of procedure are not
accounts strictly applied.
 Right
to counsel is not
imperative.
QUASI-LEGISLATIVE POWER
QUASI-LEGISLATIVE POWER

Rule-making power
The power to make rules and
regulations which results in
delegated legislation
Valid regulations have the force
and effect of law
REQUISITES OF Q-L POWER

1. Issued by authority of valid law

2. Within the scope and purview of law 1
3. Reasonable
 Must be issued within the confines of
the granting statute
 In accord with prescribed procedure
 Subject to limitations such as non-delegability of power and the separation
of powers2,3
LEGAL EFFECT OF ADMI REGS

A valid rule or regulation duly

promulgated by an administrative
agency has the force and effect of law.
LIMITATIONS

Must be valid (not inconsistent with

law or the Constitution)
Cannot amend, alter, modify, extend,
supplant, enlarge, restrict or limit the
provisions or coverage of the law
Within powers of AA (not ultra vires)
QUASI-LEGISLATIVE POWER, 3 TYPES (ISC)

Interpretative rule1
Supplementary or
detailed
??
legislation2
Contingent
legislation3,4
INTERPRETATIVE RULE

Promulgated to interpret, clarify or explain

statutory regulations (administrative
construction)
Resemble judicial adjudication
Entitled to great weight and respect but are
at best advisory
Need not be published
No need for a hearing
INTERPRETATIVE RULE (2)

The application of legislative rules

to particular facts
Expected to apply to a general
category of cases of that type
An interpretative rule is improper if
it sets out what is effectively a new
requirement
TEST: INTERPRETATIVE RULE

Correctness--
Does the rule correctly
interpret the statute?
TESTS, SUPPLEMENTARY
(or delegated) LEGISLATION

1. The law has delegated power to the

agency to adopt the rule, and
2. It provides that the rules
promulgated by the agency within
its delegated power have
authoritative force.
 These refer to rules that are “more” than interpretative:
supplementing the statute, filling-in or “law-making”
INTERPRETATIVE v
SUPPLEMENTARY
 Interpretative rules are
the product of
interpretation of the
law
 Necessarily incidental
to administration of
law
 Have no statutory
sanction
 Merely advisory
 Subordinate legislation
 Create new provisions
that have the effect of
law
 Require an express
delegation of law
 May provide for
sanctions
 Have force and effect of
law
CONTINGENT LEGISLATION

Congress may provide that a law shall

take effect upon the happening of future
specified contingencies.
The power to determine when this has
occurred is left to some other person or
body.
Findings of AA here involve exercise of
discretion (akin to nature of rule-making)
CONTINGENT LEGISLATION, EXAMPLE

Regional Wage Orders issued by a

RTWPB are examples of
subordinate legislation.1
SOME CASE EXAMPLES
 RAC (law) provides that
leaves are cumulative.
CSC Rule provides
otherwise.
 Act 2613 authorizes
Collector (IR) to
promulgate rules for the
“classification, marking
and packing of tobacco”.
CIR provided that cigar
must be “good, clean, x x x
x from provinces of
Cagayan, Isabela and N.
 Uphold law. (Rule invalid)
(Manuel v GAO)
 It was never intended that a
standard would be fixed
which would limit the
manufacture of cigars for
export to certain provinces
of the Islands. That would
amount to discrimination
and class legislation. (Olsen
& Co v Aldanese)
EXAMPLES (2)

 Customs MO  There is no law giving

authority to the
provides that, as in
Commissioner of
protest cases, Customs to review and
decisions of revise unappealed
Collector of Customs decisions in seizure
cases. The logical
WON appealed are
inference is that the
subject to review by lawmakers did not deem
Insular Collector it necessary or advisable.
(now Commissioner) (Sy Man v Fabros)
EXAMPLES (3)

Director of Patents  The provisions of Sec.

78 of the Patent Law (at
required by circular the time) are different
an exam to from the provisions of
determine who are the US Patent Law as
qualified to practice regards authority to
determine the
as patent attorneys qualifications of those
before the PPO allowed to practice.
(Phil. Patent Office) (Phil. Lawyers’ Assn v
Agrava)
EXAMPLES (4)

 As prayed for,  The fixing of rates is

essentially a legislative
President MARCOS power. And EO 1088 is in
issued EO 1088 the nature of a law. As he
providing for uniform (Prez) could delegate the
and modified rates rate-fixing power to the
PPA, so he can exercise it
for pilotage services in specific instances
(increasing without withdrawing the
substantially the power of the PPA. (Phil.
rates of the existing Inter-island Shipping v CA)
pilotage fees
previously fixed by
PRESIDENTIAL ORDINANCE
POWER
 Rules
of a general or  EOs
permanent character
 Matters
of subordinate or  MOs
temporary interest  AOs
 Relateto particular aspects
of government operations  Proclamations
 Fixinga date or declaring a  Memo Circulars
status or condition
 Matters
relating to internal
administration
ADMI CIRCULARS v ORDERS1

 Prescribepolicies,  Directed (internally) to

rules and regulations particular offices,
and procedures officials or employees,
 Applyto individuals concerning matters
such as assignments,
and organizations
office detail or
outside government
transfer
 Supplement the law  For
observance and
or provide means for compliance
carrying them out.
DUE PROCESS; UPHOLDING OWN
REGS
 Administrative agencies are vested with two basic powers, the
quasi-legislative and the quasi-judicial. The first enables them to
promulgate implementing rules and regulations (IRR), and the
second enables them to interpret and apply such regulations.
 Examples abound: the BIR adjudicates on its own
revenue regulations, the CB/BSP on its own circulars,
the SEC on its own rules, as so too do the PPO (now
IPO) and the VRB (now OMB) and the Civil
Aeronautics Administration and the Department of
Natural Resources and so on ad infinitum on their
respective administrative regulations.
 DUE PROCESS: OWN REGS (2)

Such an arrangement has been accepted as a fact of life of modern governments and
cannot be considered violative of due process as long as the cardinal rights laid down
by Justice Laurel in the landmark case of Ang Tibay v. Court of Industrial Relations are
observed.1
VOID FOR VAGUENESS DOCTRINE

 It is a statute that fails Itis so

to give a person of
ordinary intelligence indefinite that it
fair notice that his encourages
contemplated conduct
is forbidden.
arbitrary and
 Places a person in erratic arrests.
jeopardy of an offense
without fair warning.
WHEN IS A STATUTE “VAGUE”?

When:
 It violates due process
 It lacks comprehensible standards that “men of common
intelligence must necessarily guess as to its meaning and differ
in its application
 It leaves law enforces unbridled discretion to carry out its
provisions
 It must be “utterly vague” in that it cannot be clarified by saving

clause or construction .
QUASI-JUDICIAL POWER
QUASI-JUDICIAL POWER

 Administrative
adjudicatory power
 Power to hear and
determine or ascertain
facts and apply the
rule of law to the
ascertained facts
 Any power of an
administrative agency
other than rule-making
but including licensing
QA v. QJ Power

Issuance of rules and  Refers

to end
regulations product: Order,
award or decision
Of general application

Generally  Of
particular
prospective,
applicable in the application
future

 Present
CAN REGS IMPOSE PENAL
SANCTIONS?
 YES, if the:

• Law provides the violations are

punishable
• Law provides the penalty
• There is publication
 Recall that the fixing of penalties is a legislative power.
 “The spring cannot rise higher than its source.”
 Since the fixing of penalties is a legislative power, this power
cannot be further delegated.
COMM’R OF INT REV v. CA

 “Champion”, “Hope” and “More” cigarettes

 Originally,these were classified as foreign
brands, since they were registered as such
with the World Tobacco Directory
 Subsequently, Fortune renamed the brands,
“Hope Luxury” and “More Premium” and
showed Champion to be an original brand
registered locally, and therefore a local
brand.
COMM’R OF INT REV v. CA (2)

 Two (2) days before the effectivity of RA 76541, RMC 37-93 was
issued reclassifying said brands as “locally manufactured
cigarettes bearing foreign brands” and subjecting them to
increased ad valorem taxes as such at the increased rate of 55%
 Previously, they were taxed from 15% to 45% as local brands
COMM’R OF INT. REV. V. CA1

ISSUES:

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

publication required?)
 Is RMC 37-93 discriminatory? (Does it offend uniformity of
taxation?)
COMM’R OF INT. REV. V. CA
What is a legislative rule?
What is required?
 It is in the nature of
subordinate legislation,
designed to implement
primary legislation by
providing the details thereof.
 In the same way that laws
must have the benefit of
public hearing, it is generally
required that before a
legislative rule is adopted
there must be a hearing.
COMM’R OF INT. REV. V. CA
What is an interpretative rule intended to  Interpretative rules are designed to
accomplish? provide guidelines to the law which the
administrative agency is in charge of
enforcing.
 Nothing further than its bare issuance.
What is required?
COMM’R OF INT. REV. V. CA:
Quasi-Legislative Power1
What is Q-L power?
It is the power to make rules and regulations which results in
delegated legislation that is within the confines of the granting
statute and the doctrine of non-delegability and separability of
powers.
COMM’R OF INT. REV. V. CA;
3 Types of Q-L POWER

 Interpretative Rule
 Supplementary or detailed legislation
 Contingent legislation
COMM’R OF INT. REV. V. CA

The purpose or objective of an interpretative rule is merely to

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

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

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

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

legislative policy is to apply and to decide in accordance with the
standards laid down by the law itself in enforcing and
administering the same law.
COMM’R OF INT. REV. V. CA;
Quasi-Judicial Power
When does an administrative body exercise QJ
power?
The administrative body exercises its quasi-judicial
power when it performs in a judicial manner an
act which is essentially of an executive or
administrative nature, where the power to act in
such manner is incidental to or reasonably
necessary for the performance of the executive
or administrative duty entrusted to it.
COMM’R OF INT. REV. V. CA;
Quasi-Judicial Power

When an administrative proceeding is quasi-judicial in character,

notice and fair open hearing are essential to the validity of the
proceeding.
COMM’R OF INT. REV. V. CA;
Conclusion: Quasi-Judicial Power
In issuing RMC 37-93, petitioner Commissioner of Internal Revenue
was exercising her quasi-judicial or administrative adjudicatory
power. She cited and interpreted the law, made a factual finding,
applied the law to her given set of facts, arrived at a conclusion,
and issued a ruling aimed at a specific individual.
Consequently, prior notice and hearing are required.
APPLICATION
PROBLEM: EO1, THE PHTC 2016

1. Is the PHTC—the Presidential Honesty and Trust Commission—

valid?
2. Is it prosecutorial?
3. Can it hire and deputize members of the IBP, licensed
accountants, paralegals and other resource persons? Does this
affect its validity?
BREATHE.
ORGANIZE.
OUTLINE
What is the basis of the power to create an AA-- an
investigative Commission?
(Applicable cases are exemplars only. Pound on law/principles first.)

 Is it inherently legislative?  Is it based on separation of powers?

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

 Is it investigative?  Are subpoena and contempt powers

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

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

indispensable in order that all statutes, including administrative rules that are
intended to enforce or implement existing laws, attain binding force and effect,
to wit: (next slide)
TANADA v TUVERA (2)

We hold therefore that all statutes, including those of local

application and private laws, shall be published as a
condition for their effectivity, which shall begin fifteen
days after publication unless a different effectivity date is
fixed by the legislature.
 TANADA (3)
Covered by this rule are presidential decrees and executive orders promulgated by the President in
the exercise of legislative powers whenever the same are validly delegated by the legislature
or, at present, directly conferred by the Constitution.
 TANADA (4):
PUBLICATION, ADMI RULES
Administrative rules and regulations must also be published if
their purpose is to enforce or implement existing law
pursuant also to a valid delegation.

 However, interpretative regs, those merely internal in nature or LOIs need not be
published.1
PUBLICATION; ADMI CODE

Filing. (1) Every agency shall file with the University of the
Philippines Law Center three (3) certified copies of every rule
adopted by it. Rules in force on the date of effectivity of
this Code which are not filed within three (3) months from
the date shall not thereafter be the basis of any sanction
against any party or persons.1
PUBLICATION AND
RATE-FIXING; ADMI CODE
Section 9, Chap. II, Bk. VII entitled, Public Participation--
(1) If not otherwise required by law, an agency shall, as far as
practicable, publish or circulate notices of proposed rules and
afford interested parties the opportunity to submit their views
prior to the adoption of the rule.
(2) In the fixing of rates, no rule or final order shall be valid
unless the proposed rates shall have been published in
a newspaper of general circulation at least two (2)
weeks before the first hearing thereon.
(3) In case of opposition, the rules on contested cases shall be
observed.
APPLICATION

In 1991, due to published stories on abuses of Filipino DHs in HK,

the DOLE issued a Department Order temporarily suspending the
recruitment of Filipino DHs bound for HK by private employment
agencies.
Citing Tanada v Tuvera and Art. 2, NCC, the Order was later struck
down for lack of proper publication.
 APPLICATION (2)

In 1989, pursuant to a Memorandum of Understanding (MOU)

between the Philippines and the PROC, the PITC (the Phil. Int’l.
Trading Corp.) issued an Administrative Order relating to
socialist countries requiring applications for importations from
China (PROC) to be accompanied by a viable and confirmed
export program of Philippine products to the PROC.
Two export companies were later barred from importing goods
from the PROC. They assailed the Order. And the AO was
later invalidated for lack of publication.1
RATE-FIXING

When the administrative agency concerned,

respondent NTC in this case, establishes a rate,
its act must both be non-confiscatory and must
have been established in the manner
prescribed by the legislature; otherwise, in the
absence of a fixed standard, the delegation of
power becomes unconstitutional.
 The rate must be reasonable and just.
 Reasonableness may be implied1
ALCUAZ (2)

Is rate-fixing QA or QJ?
 R: Order need not be preceded by a hearing
because the assailed order is merely
interlocutory.
 R: It is an incident in the ongoing proceedings
for petitioner’s application for a CPC
 Petitioner is not the only primary source of
data
ALCUAZ (3)

 When rate applies to a particular person, it is an

exercise of QJ power (both in case and citing Vigan
Electric1)
 Notice and hearing are not generally essential to the
validity of an administrative action. (Q-A power)
 Where it (agency) acts in a judicial or QJ manner, the
person whose rights or property may be affected is
entitled to notice and hearing.
 Principle
applies even if the rate-fixing order is
temporary.
RATE-FIXING

Although the rule-making power and even the

power to fix rates x x x may partake of a
legislative character, such is not the nature of
the order complained of. It is predicated
upon a finding of fact.
In making said finding of fact, respondent
performed a function partaking of a QJ
character the valid exercise of which
demands previous notice and hearing.
 PUBLICATION

WHEN ESSENTIAL WHEN NOT ESSENTIAL

1. Administrative regs of general application 1. Interpretative regs
2. Administrative regs which are penal in 2. Internal rules and regs governing the
nature personnel of the administrative agency
3. LOIs issued by superiors concerning
guidelines
WHERE NOTICE AND HEARING
NOT ESSENTIAL
1. Grant of provisional authority 4. Summary abatement of a
for increased rates or to nuisance per se
engage in a particular line of
5. Preventive suspension of a public
business
officer or employee
2. Summary proceedings for
distraint and levy
3. Cancellation of passport
POWER OF
ADMINISTRATIVE REVIEW
 Power of supervision only, not control
 It means “overseeing, or the power or authority of an officer to
see that their subordinate officers perform their duties”
 Does not allow the supervisor to annul the acts of the
subordinate
 Only to see to it that the subordinate performs his duties in
accordance with law1
DE LEON CASE1

While there is no disputing the authority of

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

 Courts cannot or will not determine a controversy

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

 Avoid delay and unnecessary expenses

 Give agency chance to correct itself
 Principle of comity and convenience
 Separation of powers
DOCTRINE OF EXHAUSTION OF
ADMIN REMEDIES
 Where a claim is cognizable in the first instance by an administrative
agency, judicial interference shall be withheld until the administrative
process has been completed.
 Emphasis is on the existence of an available remedy
EXCEPTIONS TO EXHAUSTION*

 Estoppel  Judicial intervention is

urgent
 Challenged admi act is
patently illegal
 Application of doctrine
causes grave and
 Unreasonable delay or irreparable damage
official inaction  Controverted acts violate
 Amount is relatively due process
small to make rule  Mootness
impractical  No other plain, speedy and
 A purely legal question adequate remedy
is involved  Strong public interest1
RATIONALE

 Sound practice and policy

 Ensuresan orderly procedure which favors a
preliminary sifting process, particularly within
the competence of the administrative agency.
 Underlyingprinciple is the presumption that the
administrative agency, if given a chance to pass
upon the matter, will decide correctly. 1
 Promotes administrative autonomy and responsibility
 Respects procedures of AA
ADD’L RATIONALE

 Economy; Assures economical use of judicial and administrative

resources
EFFECT

 Not jurisdictional. May be waived.

 If upheld, there is a lack of cause of action which is fatal to the
cause of action.
“EXHAUSTION” v.
PRIMARY JURISDICTION1,2
 The administrative agency has exclusive  Both the administrative agency and the
jurisdiction judiciary have concurrent jurisdiction
 Judicial interference is withheld until the  The agency only has primary jurisdiction
administrative process has been  Thus, court yields to agency in the first
completed
instance.
BAR Q

 Explain
the doctrine of exhaustion of
administrative remedies
 Giveat least three (3) exceptions to its
application (5%) (2000 Bar)
OTHER DOCTRINES
ADMINISTRATIVE PROCEDURE
AND JUDICIAL REVIEW
REQUISITES FOR ADJUDICATION

Jurisdiction
Notice, and
Hearing
PROCEEDINGS
LIBERALLY CONSTRUED
Administrative proceedings are not bound by the rigid requirements
of the Rules of court. The important consideration is that both
parties were afforded an opportunity to be heard and they
availed themselves of it to present their respective positions on
the matters in dispute.1

Proceedings are governed by their own rules of

procedure which are to be liberally
construed.2
ADMINISTRATIVE DUE PROCESS1
7 aspects
 Right to hearing4  Decision is based on evidence
 Tribunal must consider the evidence presented
presented
 Decision must be supported
 Board/judges acted on their
 Evidence must be substantial2
own independent
consideration
 Decision rendered so parties
know the various issues
involved.3,4,5
ADMI DUE PROCESS; TAKING OF
TESTIMONY
 Must the taking of testimony or the presentation of evidence be before the
same officer who will decide the case?
 NO.
• Not an indispensable requirement of administrative due process
• What is indispensable is that the party has a reasonable opportunity to present
his case and to be heard; to submit evidence, and that
• The decision is supported by the evidence on record, which must be substantial.
JUDICIAL REVIEW

 Judicial power includes the duty of the courts of justice

to settle actual controversies involving rights which are
legally demandable and enforceable, and to determine
whether or not there has been a grave abuse of
discretion amounting to lack or excess of jurisdiction on
the part of any branch or instrumentality of the
government. (Emphasis supplied) (Second Paragraph
(new), Sec. 1, Art. VIII, 1987 Constitution.)
REQUISITES FOR JUDICIAL REVIEW

 The administrative action was  Doctrine of finality of

FULLY completed (therefore, administrative action1
final, but not res judicata)
 Generally, subject to the rule, all
administrative remedies were
exhausted.
 Doctrine of exhaustion of
administrative remedies2
SCOPE OF JUDICIAL REVIEW
Of law  Fully reviewable
Of fact  Must be based on substantial evidence

Of discretion  Must not be arbitrary or capricious

 Courts will not generally substitute their discretion for
that of the administrative agency.
 Presumption is that the administrative agency, by its
specialized knowledge, is in a better position to make an
informed judgment.
SCOPE (2)

 Thus, findings of administrative agencies (both

factual and legal) which are supported by
substantial evidence1 are considered valid and
binding.
 They are left undisturbed unless there was a
whimsical or capricious exercise of jurisdiction
amounting to grave abuse of discretion.
 Thus, judicial review is limited. Not a trial de
novo.
 Res judicata is applicable.2
 ON ADMINISTRATIVE
“RES JUDICATA”1
The decisions and orders of administrative agencies have, upon
their finality, the force and binding effect of a final judgment
within the purview of the doctrine of res judicata.
These decisions and orders are as conclusive upon the rights of the
affected parties as though the same had been rendered by a
court of competent jurisdiction.
 ON “RES JUDICATA” (2)

The rule of res judicata thus forbids the reopening of a matter once
determined by competent authority acting within their exclusive
jurisdiction.1
Faith is the substance of things hoped
for, the evidence of things not seen.
(KJV)
Faith is being sure of what we hope for
and being certain of what we do not
see. (NIV)
(Hebrews 11:1)
END