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BAR QUESTIONS IN ADMINISTRATIVE LAW FROM 1989-2003

2001 BAR EXAMINATION

I

TOPIC: QUASI-LEGISLATIVE FUNCTION (Necessity for Notice and Hearing)

The Philippine Ports Authority (PPA) General Manager issued anadministrative order to the fact that all existing regularappointments to harbor pilot positions shall remain valid only up toDecember 31 of the current year and that henceforth all appointmentsto harbor pilot positions shall be only for a term of one year fromdate of effectivity, subject to yearly renewal or cancellation by thePPA after conduct of a rigid evaluation of performance. Pilotage asa profession may be practiced only by duly licensed individuals, whohave to pass five government professional examinations.

The Harbor Pilot Association challenged the validity of saidadministrative order arguing that it violated the harbor pilots'right to exercise their profession and their right to due process oflaw and that the said administrative order was issued without priornotice and hearing. The PPA countered that the administrative orderwas valid as it was issued in the exercise of its administrativecontrol and supervision over harbor pilots under PPA's legislativecharter; and that in issuing the order as a rule or regulation, itwas performing its executive or legislative, and not a quasi-judicialfunction.

Due process of law is classified into two kinds, namely, proceduraldue process and substantive due process of law. Was there, or, wasthere no violation of the harbor pilots' right to exercise theirprofession and their right to due process of law?

Suggested Answer:

The right of the pilots to due process was violated. As held, inCorona vs. United Harbor Pilots Association of the Philippines, 283SCRA 31 (1997), pilotage as a profession is a property rightprotected by the guarantee of due process. The pre-evaluationcancellation of the licenses of the harbor pilots every year isunreasonable and violated their right to substantive due process.The renewal is dependent on the evaluation after the licenses havebeen cancelled. The issuance of the administrative order alsoviolated procedural due process, since no prior public hearing wasconducted. As held in Commissioner r of Internal Revenue vs. Courtof Appeals, 261 SCRA 237 (199 , when a regulation is being issuedunder the quasi-legislative authority of an administrative agency,the requirements of notice, hearing and publication must be observed.

II

TOPIC: JUDICIAL REVIEW

Give the two (2) requisites for the judicial review of administrativedecision/actions, that is, when is an administrative action ripe forjudicial review?

Suggested Answer:

1. The administrative action has already been fully completedand, therefore, is a final agency action; and2. All administrative remedies have been exhausted. (Gonzales,Administrative Law, Rex Bookstore: Manila, p. 136 (1979).

2000 BAR EXAMINATION

I

TOPIC: QUASI-LEGISLATIVE FUNCTION (Necessity for Notice and Hearing)

The Maritime Industry Authority (MARINA) issued new rules andregulations governing pilotage services and fees and the conduct ofpilots in Philippine ports. This it did without notice, hearing norconsultation with harbor pilots or their associations whose rightsand activities are to be substantially affected. The harbor pilotsthen filed suit to have the new MARINA rules and regulations declaredunconstitutional for having been issued without due process.

Suggested Answer:

The issuance of the new rules and regulations violated due process.Under Section 9, Chapter II, Book VII of the Administrative Code of1987, as far as practicable, before adopting proposed rules, anadministrative agency should publish or circulate notices of theproposed rules and afford interested parties the opportunity tosubmit their views; and in the fixing of rates, no rule shall bevalid unless the proposed rates shall have been published in anewspaper of general circulation at least two weeks before the firsthearing on them. In accordance with this provision, in Commissionerof Internal Revenue vs. Court of Appeals, 261 SCRA 236 (1996), it washeld that when an administrative rule substantially increases theburden of those directly affected, they should be accorded the chanceto be heard before its issuance.

Alternative Answer:

Submission of the rule to the University of the Philippines LawCenter for publication is mandatory. Unless this requirement iscomplied with, the rule cannot be enforced.

II

TOPIC: JUDICIAL REVIEW (Doctrine of Exhaustion of AdministrativeRemedies)

A) Explain the doctrine of exhaustion of administrative remedies.B) Give at least three exceptions to its application.

Suggested Answer:

A) The doctrine of exhaustion of administrative remedies meansthat when an adequate remedy is available within the ExecutiveDepartment, a litigant must first exhaust this remedy before he canresort to the courts. The purpose of the doctrine is to enable theadministrative agencies to correct themselves if they have committedan error. (Rosales vs. Court of Appeals, 165 SCRA 344 (198 .B) The following are the exceptions to the application of thedoctrine of exhaustion of administrative remedies.1. The question involved is purely legal;2. The administrative body is in estoppel;3. The act complained of is patently illegal;4. There is an urgent need for judicial intervention;5. The claim involved is small;6. Grave and irreparable injury will be suffered;7. There is no other plain, speedy and adequate remedy;8. Strong public interest is involved;9. The subject of the controversy is private law;10. The case involves a quo warranto proceeding (Sunville TimberProducts, Inc. vs. Abad, 206 SCRA 482 (1992);11. The party was denied due process (SamahangMagbubukid ngKapdula, Inc. vs. Court Appeals, 305 SCRA 147 (1999);12. The decision is that of a Department Secretary (Nazareno vs.Court of Appeals, G. R. No. 131641, February 23, 2000);13. Resort to administrative remedies would be futile (universityof the Philippines Board of Regents vs. Rasul, 200 SCRA 685 (1991)14. There is unreasonable delay (Republic vs. Sandiganbayan, 301SCRA 237 (1999)15. The action involves recovery of physical possession of publicland (Gabrito vs. Court of Appeals, 167 SCRA 771 (198 ;16. The party is poor (Sabello vs. Department of Education,Culture and Sports, 180 SCRA 623 (1989); and17. The law provides for immediate resort to the court (Rullanvs. Valdez, 12 SCRA 501 (1964).

1999 BAR EXAMINATIONITOPIC: RIGHT TO HEARING AND NOTICEA. Give examples of acts of the state which infringe the dueprocess clause:1. In its substantive aspect; and2. In its procedural aspect

B. On April 6, 1963. Police Officer Mario Gatdula was chargedby the Mayor with Grave Misconduct and Violation of Law before theMunicipal Board. The Board investigated Gatdula but before the casecould be decided, the City charter was approved. The City Fiscal,citing Section 30 of the city charter, asserted that he wasauthorized thereunder to investigate city officers and employees. Thecase against Gatdula was then forwarded to him, and are-investigationwas conducted. The office of the Fiscal subsequently recommendeddismissal. On January 11, 1966, the City Mayor returned the recordsof the case to the City Fiscal for the submission of an appropriateresolution but no resolution was submitted. On March 3, 1968, theCity Fiscal transmitted the records to the City Mayor recommendingthat final action thereon be made by the City Board of Investigators(CBI). Although the CBI did not conduct an investigation, the recordsshow that both the Municipal Board and the Fiscal's Officeexhaustively heard the case with both parties afforded ampleopportunity to adduce their evidence and argue their cause. ThePolice Commission found Gatdula guilty on the basis of the recordsforwarded by the CBl. Gatdula challenged the adverse decision of thePolice Commission theorizing that he was deprived of due process.Questions: Is the Police Commission bound by the findings of the CityFiscal? Is Gatdula's protestation of lack or nonobservance of dueprocess well-grounded? Explain your answers.

C. On November 7, 1990, nine lawyers of the Legal Department of YBank who were all under Fred Torre, sent a complaint to managementaccusing Torre of abusive conduct and mismanagement. Furnished with acopy of the complaint, Torre denied the charges. Two days later, thelawyers and Torre were called to a conference in the office of theBoard Chairman to give their respective sides of the controversy.However, no agreement was reached thereat. Bank Director Romulo Moretwas tasked to look further into the matter. He met with the lawyerstogether with Torre several times but to no avail. Moret thensubmitted a report sustaining the charges or the lawyers. The BoardChairman wrote Torre to inform him that the bank had chosen thecompassionate option of "waiting" for Torre's resignation. Torre wasasked, without being dismissed, to turn over the documents of allcases handled by him to another official of the bank but Torrerefused to resign and requested for a "full hearing", Days later, hereiterated his request for a "full hearing", claiming that he hadbeen "constructively dismissed", Moret assured Torre that he is "freeto remain in the employ of the bank" even if he has no particularwork assignment. After another request for a "full hearing" wasignored, Torre filed a complaint with the arbitration branch of NLRCfor illegal dismissal. Reacting thereto, the bank terminated theservices of Torre.

Questions: (a) Was Torre "constructively dismissed" before he filedhis complaint? (b) Given the multiple meetings held among the bankofficials, the lawyers and Torre, is it correct for him to say thathe was not given an opportunity to be heard? Explain your answers.

SUGGESTED ANSWER:A.1.) A law violates substantive due process when it is unreasonableor unduly oppressive. For example, Presidential Decree No. 1717,which cancelled all the mortgages and liens of a debtor, wasconsidered unconstitutional for being oppressive. Likewise, as statedin Ermita-Malate Hotel and Motel Operators Association, Inc. v. CityMayor of Manila, 20 SCRA 849, a law which is vague so that men ofcommon intelligence must guess at its meaning and differ as to itsapplication violates substantive due process. As held in Taada v.Tuvera, 146 SCRA 446, due process requires that the law be published.2.) In State Prosecutors v. Muro, 236 SCRA 505, it was held that thedismissal of a case without the benefit of a hearing and without anynotice to the prosecution violated due process. Likewise, as held inPeople v. Court of Appeals, 262 SCRA 452, the lack of impartiality ofthe judge who will decide a case violates procedural due process.B.The Police Commission is not bound by the findings of the CityFiscal. In Mangubat v. de Castro, 163 SCRA 608, it was held that thePolice Commission is not prohibited from making its own findings onthe basis of its own evaluation of the records. Likewise, theprotestation of lack of due process is not well-grounded, since thehearings before the Municipal Board and the City Fiscal offeredGatdula the chance to be heard. There is no denial of due process ifthe decision was rendered on the basis of evidence contained in therecord and disclosed to the parties affected.C.a) Torre was constructively dismissed, as held in Equitable BankingCorporation v. National Labor Relations Commission, 273 SCRA 352.Allowing an employee to report for work without being assigned anywork constitutes constructive dismissal.b) Torre is correct in saying that he was not given the chance to beheard. The meetings in the nature of consultations and conferencescannot be considered as valid substitutes for the proper observanceof notice and hearing.

1998 BAR EXAMINATION

ITOPIC: EXHAUSTION OF ADMINISTRATIVE REMEDIESThe Department of National Defense entered into contract withRaintree Corporation for the supply of ponchos to the Armed Forces ofthe Philippines (AFP), stipulating that, in the event of breach,action may be filed in the proper court in Manila.Suppose the AFP fails to pay for delivered ponchos where mustRaintree Corporation file its claim? Why?

SUGGESTED ANSWER:

Raintree Corporation must file its claim with the Commission onAudit. Under Section 2(1) IX-D of the Constitution, the Commission onAudit has the authority to settle all accounts pertaining toexpenditure of public funds. Raintree Corporation cannot file a casein court. The Republic of the Philippines did not waive its immunityfrom suit when it entered into the contract with Raintree Corporationfor the supply of ponchos for the use of the Armed Forces of thePhilippines. The contract involves the defense of the Philippines andtherefore relates to a sovereign function.In-United States vs. Ruiz, 136 SCRA 487,492, the Supreme Court held:"The restrictive application of State immunity is proper only whenthe proceedings arise out of commercial transactions of the foreignsovereign, its commercial activities or economic affairs. Stateddifferently, a State may be said to have descended to the level of anindividual and can thus be deemed to have tacitly given its consentto be sued only when it enters into business contracts. It does notapply where the contract relates to the exercise of its sovereignfunctions. In this case the project are an integral part of the navalbase which is devoted to the defense of both the United States andthe Philippines, indisputably a function of the government of thehighest order: they are not utilized for nor dedicated to commerce orbusiness purposes"The provision for venue in the contract does not constitute a waiverof the State immunity from suit, because the express waiver of thisimmunity can only be made by a statute.In Republic vs. Purisima. 78 SCRA 470 474, the Supreme Court ruled:"Apparently respondent Judge was misled by the terms of the contractbetween the private respondent, plaintiff in his sala, and defendantRice and Com Administration which, according to him, anticipated thecase of a breach of contract between the parties and the suits thatmay thereafter arise. The consent, to be effective though, must comefrom the State acting through a duly enacted statute as pointed outby Justice Bengzon in Mobil."

ALTERNATIVE ANSWER:In accordance with the doctrine of exhaustion of administrativeremedies, Raintree Corporation should first file a claim with theCommission on Audit. If the claim is denied, it should file apetition for certiorari with the Supreme Court.

IITopic: Administrative rulings subject to final determination of thecourtsAndres Ang was born of a Chinese father and a Filipino mother inSorsogon, Sorsogon, on January 20, 1973. In 1988, his father wasnaturalized as a Filipino citizen On May 11, 1998. Andres Ang waselected Representative of the First District of Sorsogon. Juan Bontowho received the second highest number of votes, filed a petition forQuo Warranto against Ang. The petition was filed with the House ofRepresentative Electoral Tribunal (HRET). Bonto contends that Ang isnot a natural born citizen of the Philippines and therefore isdisqual1fied to be a member of the House.The HRET ruled in favor of Ang. Bonto filed a petition for certiorariin the Supreme Court. The following issues are raised:1. Whether the case is justiciable considering that Article VI.Section 17 of the Constitution declares the HRET to be the sole Judge-of all contests relating to the election returns anddisqualifications of members of the House of Representatives.2. Whether Ang is a natural born citizen of the Philippines.How should this case be decided?

SUGGESTED ANSWER:1. The case is justiciable. As stated in Lazatinvs.House ElectoralTribunal. 168 SCRA 391, 404, since judicial power includes the dutyto determine whether or not there has been a grave abuse ofdiscretion amounting to lack or excess of jurisdiction on the part ofany branch or instrumentality of the Government, the Supreme Courthas the power to review the decisions of the House of RepresentativesElectoral Tribunal in case of grave abuse of discretion on its part.2. Andres Ang should be considered a natural born citizen of thePhilippines. He was born of a Filipino mother on January 20, 1973.This was after the effectivity of the 1973 Constitution on January17, 1973. Under Section (I), Article III of the 1973 Constitution,those whose fathers or-mothers are citizens of the Philippines arecitizens of the Philippines. Andres Ang remained a citizen of thePhilippines after the effectivity of the 1987 Constitution. Section1. Article IV of the 1987 Constitution provides:"The following are citizens of the Philippines:"(1) Those who are citizens of the Philippines at the time of theadoption of this Constitution:"

IIITOPIC: SELF INCRIMINATIONSuppose Congress passed a law to implement the Constitutionalprinciple that a public office is a public trust, by providing asfollows:"No employee of the Civil Service shall be excused from attending andtestifying or from producing books, records, correspondence,documents or other evidence in any administrative investigationconcerning the office in which he is employed on the ground that histestimony or the evidence required of him may tend to incriminate himor subject him to a penalty or forfeiture: but his testimony or anyevidence produced by him shall not be used against him in criminalprosecution based on the transaction, matter or thing concerningwhich is compelled, after invoking his privilege against self-incrimination to testify or produce evidence. Provided, however, thatsuch individual so testifying shall not be exempt from prosecutionand punishment for perjury committed in so testifying nor shall he beexempt from demotion or removal from office. Any employee who refusesto testify or produce any documents under this Act shall be dismissedfrom the service."Suppose further, that Ong, a member of the Professional RegulatoryBoard, is required to answer questions in an investigation regardinga LEAKAGE in a medical examination.1. Can Ong refuse to answer questions on the ground that he wouldincriminate himself?2. Suppose he refuses to answer, and for that reason, is dismissedfrom the service; can he pausibly argue that the Civil Commission hasinferred his guilt from his refusal to answer in violation of theConstitution?3. Suppose on the other hand, he answers the question and on thebasis of his answers, he is found guilty and is dismissed. Can hepausibly assert that his dismissa1 is based on coerced confession?

SUGGESTED ANSWER:1. No. Ong cannot refuse to answer the question on the ground that hewould incriminate himself, since the Jaw grants him immunity andprohibits the use against him in a criminal prosecution of thetestimony or evidence produced by him. As stated by the United StatesSupreme Court in Brown vs. Walker, 161 U.S.591, 597, what theconstitutional prohibition against self-incrimination seeks toprevent is the conviction of the witness on the basis of testimonyelicited from him. The rule is satisfied when he is granted immunity.

ALTERNATIVE ANSWER:

1. In accordance with Evangelista vs. Jarencio, 68 SCRA 99, 107-108,if Ong is being cited merely as a witness, he may not refuse toanswer. However, if the question tends to violate his right againstself-incrimination, he may object to it. On the other hand, under theruling in Chavez vs. Court of Appeals. 24 SCRA 663, 680, if be is arespondent, Ong may refuse to answer any question because of hisright against self-incrimination.

SUGGESTED ANSWER:2. No Ong cannot argue that the Civil Service Commission inferredhis guilt from his refusal to answer. Be was not dismissed because ofhis involvement in the leakage in the medical examination but for hisrefusal to answer. This is a violation of the law. He could becompelled to answer the question on pain of being dismissed in caseof his refusal, because he was granted immunity.

In Lefkowitz vs. Turley, 414 U.S. 70,84, the United States SupremeCourt said:"Furthermore, the accommodation between the interest of the State andthe Fifth Amendment requires that the State have means at itsdisposal to secure testimony if immunity is supplied and testimony isstill refused. This is recognized by the power of courts to compeltestimony, after a grant of immunity, by use of civil contempt andcoerced imprisonment. Shilitani vs. United States, 384 US 364, 16 LEd 2d 622, 86 5 Ct 1531 (1966). Also, given adequate immunity theState may plainly insist that employees either answer questions underoath about the performance of their job or suffer the loss ofemployment."3. Yes, Ong can argue that his dismissal was based on coercedconfession. In Garrity vs. New Jersey, 385 U.S. 493, 500, the UnitedStates Supreme Court held:"We now hold the protection of the individual under the FourteenthAmendment against coerced statements prohibits use in subsequentcriminal proceedings of statements obtained under threat of removalfrom office, and that it extends to all, whether they are policemenor other members of the body politic."

IVTOPIC: LIMITATIONS OF POWERThe police had suspicions that. Juan Samson, member of the subversiveNew-Proletarian Army, was using the mail for propaganda purposes ingaining new adherents to its cause. The Chief of Police ofBantolan., Lanao del Sur ordered the Postmaster of the town tointercept and open all mail addressed to and coming from Juan Samsonin the interest of the national security. Was the order of the Chiefof Police valid?

SUGGESTED ANSWER:No, the order of the Chief of Police is not valid, because there isno law which authorizes him to order the Postmaster to open theletters addressed to and coming from Juan Samson. An official in theExecutive Department cannot interfere with the privacy ofcorrespondence and communication in the absence of a law authorizinghim to do so or a lawful order of the court.Section 3(1), Article III of the Constitution provides:"The privacy of communication and correspondence shall be inviolableexcept upon lawful order of the court, or when public safety or orderrequires otherwise as prescribed by law."

IV

TOPIC: JURISDICITONSuppose a Commissioner of the COMELEC is charged before theSandiganbayan for allegedly tolerating violation of the election lawsagainst proliferation of prohibited billboards and electionpropaganda with the end in view of removing him from office. Will theaction prosper?

SUGGESTED ANSWER:No, the action will not prosper. Under Section 8 Article Xl of theConstitution. the Commissioners of the Commission on Elections areremovable by impeachment. As held in the case of In re Gonzales, 160SCRA 771,774-775, a public officer who is removable by impeachmentcannot be charged before the Sandiganbayan with an offense whichcarries with it the penalty of removal from office unless he is firstimpeached. Otherwise, he will be removed from office by a methodother than impeachment.

1997 BAR EXAMINATIONITOPIC: ADMINISTRATIVE CODEAre the government-owned or controlled corporations within the scopeand meaning of the "Government of the Philippines"?

Suggested Answer:Section 2 of the Introductory Provisions of the Administrative Codeof 1987 defines the government of the Philippines as the corporategovernmental entity through which the functions of government areexercised throughout the Philippines, including, save as the contraryappears from the context, the various arms through which politicalauthority is made effective in the Philippines, whether pertaining tothe autonomous regions, the provincial, city, municipal or barangaysubdivisions or other forms of local government.Government-owned or controlled corporations are within the scope andmeaning of the Government of the Philippines if they are performinggovernmental or political functions.

IITOPIC: ADMINISTRATIVE CODE FLAG CEREMONYSection 28, Title VI, Chapter 9, of the Administrative Code of 1987requires all educational institutions to observe a simple anddignified flag ceremony, including the playing or singing of thePhilippine National Anthem, pursuant to rules to be promulgated bythe Secretary of Education, Culture and Sports. The refusal of ateacher, student or pupil to attend or participate in the flagceremony is a ground for dismissal after due investigation. TheSecretary of Education, Culture and Sports issued a memorandumimplementing said provision of law. As ordered, the flag ceremonywould be held on Mondays at 7:30 a.m. during class days. A group ofteachers, students and pupils requested the Secretary that they beexempted from attending the flag ceremony on the ground thatattendance thereto was against their religious belief. The Secretarydenied the request. The teachers, students and pupils concerned wentto the Court to have the memorandum circular declared null and void.Decide the case.

Suggested Answer:The teachers and the students should be exempted from the flagceremony. As held in Ebralinag vs. Division Superintendent of Schoolsof Cebu, 251 SCRA 569 , to compel them to participate in the flagceremony will violate their freedom of religion. Freedom of religioncannot be impaired except upon the showing of a clear and presentdanger of a substantive evil which the State has a right to prevent.The refusal of the teachers and the students to participate in theflag ceremony does not pose a clear and present danger.

1996 BAR EXAMINATIONITOPIC: ADMINISTRATIVE REMEDIES1. Distinguish the doctrine of primary jurisdiction from thedoctrine of exhaustion of administrative remedies.2. Does the failure to exhaust administrative remedies beforefiling a case in court oust said court of jurisdiction to hear thecase? Explain.Suggested Answer:1. The doctrine of primary jurisdiction and the doctrine ofexhaustion of administrative remedies both deal with the properrelationships between the courts and administrative agencies. Thedoctrine of exhaustion of administrative remedies applies where aclaim is cognizable in the first instance by an administrative agencyalone. Judicial interference is withheld until the administrativeprocess has been completed. As stated in Industrial Enterprises, Inc.vs. Court of Appeals, 184 SCRA 426, the doctrine of primaryjurisdiction applies where a case is within the concurrentjurisdiction of the court and an administrative agency but thedetermination of the case requires the technical expertise of theadministrative agency. In such a case, although the matter is withinthe jurisdiction of the court, it must yield to the jurisdiction ofthe administrative case.

2. No, the failure to exhaust administrative remedies beforefiling a case in court does not oust the court of jurisdiction tohear the case. As held in Rosario vs. Court of Appeals, 211 SCRA 384,the failure to exhaust administrative remedies does not affect thejurisdiction of the court but results in the lack of a cause ofaction, because a condition precedent that must be satisfied beforeaction can be filed was not fulfilled.

1995 BAR EXAMINATIONITOPIC: LOCAL GOVERNMENT UNIT VS. ADMINISTRATIVE AGENCYThe Municipality of Binangonan, Rizal passed a resolution authorizingthe operation of an open garbage dumpsite in a 9-hectare land in theReyes Estate within the Municipality's territorial limits. Someconcerned residents of Binangonan filed a complaint with the LagunaLake Development Authority (LLDA) to stop the operation of thedumpsite due to its harmful effects on the health of the residents.The LLDA conducted an on-site investigation, monitoring, testing andwater sampling and found that the dumpsite would contaminate Lagunade Bay and the surrounding areas of the Municipality. The LLDA alsodiscovered that no environmental clearance was secured by theMunicipality from the Department of Environment and Natural Resources(DENR) and the LLDA as required by law. The LLDA therefore issued tothe Binangonan Municipal Government a cease and desist order to stopthe operation of the dumpsite. The Municipality of Binangonan filed acase to annul the order issued by the LLDA.1. Can the Municipality of Binangonan invoke police power toprevent its residents and the LLDA from interfering with theoperation of the dumpsite by the Municipality? Explain.2. Can the LLDA justify its order by asserting that the healthof the residents will be adversely affected? Explain.

Suggested Answer:1. No, the Municipality of Binangonan cannot invoke its policepower. According to Laguna Lake Development Authority vs. Court ofAppeals, 231 SCRA 292, under Republic Act No. 4850, the LLDA ismandated to promote the development of the Laguna Lake area,including the surrounding Province of Rizal, with due regard to theprevention of pollution. The LLDA is mandated to pass upon andapprove or disapprove all projects proposed by local governmentoffices within the region.2. Yes, the LLDA can justify its order. Since it has beenauthorized by Executive Order No. 927 to make orders requiring thediscontinuance of pollution, its power to issue the order can beinferred from this. Otherwise, it will be a toothless agency.Moreover, the LLDA is specifically authorized under its Charter toissue cease and desist orders.

1991 BAR EXAMINATIONITOPIC: ADMINISTRATIVE BODIES OR AGENCYOn July 1991, the Energy Regulatory Board (ERB), in response topublic clamor, issued a resolution approving and adopting a schedulefor bringing down the prices of petroleum products over a period ofone (1) year starting 15 August 1991, over the objection of the oilcompanies which claim that the period covered is too long to prejudgeand foresee.Is the resolution valid?

Suggested Answer:No, the resolution is not valid, since the Energy Regulatory Boardissued the resolution without a hearing. The resolution here is not aprovisional order and therefore it can only be issued afterappropriate notice and hearing to affected parties. The ruling inPhilippine Communications Satellite Corporation vs. Alcuaz, 180 SCRA218, to the effect that an order provisionally reducing the rateswhich a public utility could charge, could be issued without previousnotice and hearing, cannot apply.1990 BAR EXAMINATIONITOPIC: EXECUTIVE AND ADMINISTRATIVE FUNCTIONSExecutive Orders Nos. 1 and 2, issued by President Corazon C. Aquinocreated the Presidential Commission on Good Government (PCGG) andempowered it to sequester any property shown prima facie to be ill-gotten wealth of the late President Marcos, his relatives andcronies. Executive Order No. 14 vests on the Sandiganbayanjurisdiction to try hidden wealth cases. On April 14, 1986, after aninvestigation, the PCGG sequestered the assets of X Corporation, Inc.(1) X Corporation, Inc, claimed that President Aquino as President,could not lawfully issue Executive Orders Nos. 1, 2, 14, which havethe force of law, on the ground that legislation is a function ofCongress. Decide.(2) Said corporation also questioned the validity of the threeexecutive orders on the ground that they are bills of attainder and,therefore, unconstitutional. Decide

Suggested Answer:(1) The contention of X Corporation should be rejected. Executiveorders Nos. 1, 2 and 14 were issued in 1986. At that time PresidentCorazon Aquino exercised legislative power Section 1, Article II ofthe Provisional Constitution established by Proclamation No. 3,provided:"Until a legislature is elected and convened under a newconstitution, the President shall continue to exercise legislativepower."In case of Kapatiran ng mgaNaglilingkodsaPamahalan ng Pilipinas,Inc. vs. Tan, 163 SCRA 371, the Supreme Court ruled that theProvisional Constitution and the 1987 Constitution, both recognizedthe power of the President to exercise legislative powers until thefirst Congress created under the 1987 Constitution was convened onJune 27, 1987.(2) Executive Orders Nos. 1,2 and 14 are not bill of attainder. Abill of attainder is a legislative act which inflicts punishmentwithout trial. On the contrary, the expressly provide that anyjudgment that the property sequestered is ill-gotten wealth is to bemade by a court (the Sandiganbayan) only after trial.IITOPIC: LAW ON PUBLIC OFFICERSA. After 2 February 1987, the Philippine National bank (PNB) grants aloan to congressman X. Is the loan violative of the Constitution?Suppose the loan had instead been granted before 2 February 1987, butwas outstanding on that date with a remaining balance on theprincipal in the amount of P50,000, can the PNB validly giveCongressman X an extension of time after said date to stele theobligation?B. For being notoriously undesirable and recidivist, Jose Tapulan, anemployee in the first level of the career service in the Office ofthe Provincial Governor of Masbate, was dismissed by the Governorwithout formal investigation pursuant to Section 40 of the CivilService Decree (P.D. No. 807) which authorizes summary proceedings insuch cases.As a lawyer of Jose what steps, if any, would you take to protect hisrights?

Suggested Answer:A. whether or not the loan is violative of the 1987 Constitutiondepends upon its purpose, if it was obtained for a business purpose,it is violative of the Constitution. If it was obtained for someother purpose, e.g. for housing, it is not violative of theConstitution because under Section 16, Article XI, Members ofCongress are prohibited from obtaining loans from government-ownedbanks only if it is for a business purpose.If the loan was granted before the effectivity of the Constitution onFebruary 2, 1987, the Philippine National Bank cannot extend itsmaturity after February 2, 1987, if the loan was obtained for abusiness purpose. In such case the extension is a financialaccommodation which is also prohibited by the Constitution.B. Section 40 of the Civil Service Decree has been repealed byrepublic Act No. 6654. As a lawyer of Jose Tapulan, I will file apetition for mandamus to compel his reinstatement. In accordance withthe ruling in Mangubat vs. Osmea, G.R. No. L-12837, April 30, 1959,there is no need to exhaust all administrative remedies by appealingto Civil Service Commission, since the act of the governor ispatently illegal.

1989 BAR EXAMINATIONITOPIC: LAW ON PUBLIC OFFICERSAn existing law grants government employees the option to retire uponreaching the age of 57 years and completion of at least 30 years oftotal, government service. As a fiscal retrenchment measure, theOffice of the President later issued a Memorandum Circular requiringphysical incapacity as an additional condition for optionalretirement age of 65 years. A government employee, whose applicationfor optional retirement was denied because he was below 65 years ofage and was not physically incapacitated, filed an action in courtquestioning the disapproval of his application claiming that theMemorandum Circular is void. Is the contention of the employeecorrect? Explain.

Suggested Answer:Yes, the contention of the employee is correct. In Marasigan vs.Cruz, SCRA , it was held that such memorandum circular is void. Byintroducing physical capacity as additional condition for optionalretirement, the memorandum circular tried to amend the law. Suchpower is lodged with the legislative branch and not with theexecutive branch.IITOPIC: LAW ON PUBLIC OFFICERSIn 1986, F, then the officer-in-charge of Botolan, Zambales, wasaccused of having violated the ANTI-Graft and Corrupt Practices Actbefore the Sandigan Bayan. Before he could be arraigned, he waselected Governor of Zambales. After his arraignment, he put underpreventive suspension by the Sandiganbayan" for the duration of thetrial".(1) Can F successfully challenge the legality of his preventivesuspension on the ground that the criminal case against him involvedacts committed during his term as officer-in-charge and not duringhis term as Governor?(2) Can F validly object to the aforestated duration of hissuspension?

Suggested Answer:(1) No, F cannot successfully challenge the legality of hispreventive suspension on the ground that the criminal case againsthim involve acts committed during his term as OIC and not during histerm as governor because suspension from office under Republic Act3019 refers to any office that the respondent is presently holdingand not necessarily to the one which he hold when he committed thecrime with which he is charged. This was the ruling in Deloso vs.Sandiganbayan, 173 SCRA 409(2) Yes, F Can validly object to the duration of the suspension. InDeloso vs. Sandiganbayan, 173 SCRA 409, it was held that theimposition of preventive suspension for an indefinite period of timeis unreasonable and violates the right of the accused to due process.The people who elected the governor to office would be deprived ofhis services for an indefinite period, and his right to hold officewould be nullified. Moreover, since under Section 42 of the CivilService Decree the duration of preventive suspension should belimited to ninety (90) days, equal protection demands that theduration of preventive suspension under the Anti-Graft and CorruptPractices Act be also limited to ninety (90) days only.