Concept and definition

 Belongs to public law

 “the entire system of laws under which the machinery of the state works and by which the state performs all government acts”.
Scope of Administrative Law
 The law which fixes the administrative organization structure of the government;
 The, law, the execution or enforcement of which is entrusted to administrative authorities;
 The law which governs public officers including their competence to act, rights, duties, election, etc;
 The law which creates administrative agencies, defines their powers and functions, prescribes their procedure, including the
adjudication or settlement by them of contested matters involving private interests;
 The law which provides the remedies, administrative or judicial, available to those aggrieve by administrative actions or decisions;
 The law which governs judicial review of or relief against, administrative actions or decisions;
 The rules, regulations, orders and decisions (including presidential proclamations) made by administrative authorities dealing with
the interpretation and enforcement of the laws entrusted to their administration;
 The body of judicial decisions and doctrines dealing with any of the above.
What is the reason for the development of Admin Law?
It arises out of Necessity. The existence and powers proceed from:
Increased function of gov’t;
Complexity of modern social, economic, and industrial systems;
Inability of legis or courts to perform their functions directly;
Necessity for constant supervision by experts and specialists and the experience acquired by such specialist in difficult and complicated
fields;
Flexibility which is the mark of admin process in contrast to leg or judicial process.

Administrative authorities
 All those public officers and organs (administrative agencies) of the government that are charged with the amplification,
application, and execution of the law, but do not include, by virtue of separation of powers, Congress and the regular courts.
Distinguished from constitutional law
 CL prescribes the general plan framework of governmental organization, while AL gives and carries out this plan in the minutest
details ;
 CL treats of the rights of the individuals, while AL treats them from the standpoint of the powers of the government; the first lays
stress upon rights, the second emphasizes the powers of government and duties of the citizen; and
 CL prescribes limitations on the powers of the government to protect the rights of individuals against abuse in their exercise, while
administrative law indicates to individuals, remedies for the violation of their rights.
Principal subdivision of AL
 In general- internal or external
 Internal administration- It treats of the legal relations between the government and its administrative officers and of the legal
relations that one administrative officer or organ bears to another:
o It considers legal; aspect of public administration on its institutional side as a going concern.
o It comprehends such topics as the nature of public office, de jure and de facto officers, and incompatible and forbidden
offices.
 External administration – concerned with the legal relations between administrative authorities and private interests. 4 parts:
1. a survey of those powers and duties of administrative authorities that relate directly to private interest;
2. an analysis of the scope and limits of such powers;
3. some account of the sanctions attached to, or the means of enforcing official determinations;
4. an examination of the remedies against official action;
 Principal concern- administrative regulation, rather than with those of administrative management.
Classification of AL
1. As to its source:
a. the law that controls administrative authorities – Constitution, statutes, judicial decisions, executive orders of the president and
administrative orders of superiors giving directions to subordinates;
b. the law made by administrative authorities- general relations and particular determinations. (presidential proclamations, rules of
practice, and decisions of administrative tribunals, and cease and-desist orders of the Securities and Exchange Commission).
2. as to its purpose:
a. adjective and procedural administrative law- establishes the procedure which an agency must follow in the pursuit of its legal purpose. It
is derived from the constitution or a statute or from agency relations.
b.) substantive administrative law- same sources, but its content establishes primary rights and duties, such as the conditions under which
a broadcaster may operate or the labor practices in which the employers and unions must not indulge.
3. as to its applicability
a. General administrative law- part of administrative law which is of a general nature and common to all, or most, administrative agencies.
It is chiefly but not exclusively procedural law. “due process”; which establish the doctrine of exhaustion of administrative remedies
b. Special or particular administrative law-pertains to particular agencies. It proceeds from a particular statute creating the individual
agency and thus, has little or no particular application, except in connection with such agency.

Administration of government (AG) distinguished from administration of justice (AJ)

 Those charged with AG are known administrative officers while those charged with the AJ are known as judicial officers.
 Judicial officers- decides controversies between individuals and government officers, as to the applicability in the cases in question
of a particular rule of law. Determine what law is applicable to the facts brought before them.
  Administrative officers- not really the result of any controversy and is not merely dependent on the solution of the question “what
is the law” but made also as a result of consideration of expediency. Must determine what is the law in order to determine
whether they are competent to act and in case they are competent to act, is it wise for them to act.
Administration as a separate function
1. as a function- “Administration” is the execution, in non-judicial matters, of the law or will of the state as expressed by the competent
authority.
 Activity of the executive officers of the government. Found in all manifestations of executive actions
 Had to do with carrying laws into effect
2. as an organization- It is the group or aggregate of persons in whose hands the reins of the government are for the time being.
Administration is both the function of execution of the law and the totality of the executive and administrative authorities.

Administration as an organization distinguished from government

Government- that “institution or aggregate of institutions by which an independent society makes and carries out those rules of action
which are necessary to enable men to live in civilized state, or which are imposed upon the people forming that society by those who
possess the power or authority of prescribing them. Government is the aggregate of authorities which rule a society.”
Administration- the aggregate of those persons in whose hands the rein of government is entrusted by the people for the time being.
Chapter II Nature and organization of Administrative Agencies

Creation, reorganization, and abolition of administrative agencies.

1. those created by the constitution- Constitutional Commissions, self-executing
2. created by legislative enactments
3. created by the Executive- ex. Investigating agencies

 Duly executed acts of an administrative agency can have valid effects even beyond the life span of said agency.
 The power of the president to reorganize agencies under the Executive Department by executive or administrative order is
constitutionally and statutorily recognized.
 Pichay Jr. vs. Office of the deputy Executive Secretary- Sec. 31, chapter 10 Book 3 of E.O. NO. 292 “Administrative code of 1987”,
vests in the president the continuing authority to reorganize the offices under him in order to achieve simplicity, economy, and
efficiency. He may transfer any agency under the OP to any department or agency as well as transfer agencies to the OP form
other departments or agencies.
 Congress can delegate the power to create positions. Well-settled rule, reorganization is regarded as valid provided it is pursued in
good faith.
 Olaguer vs. RTC. In the exercise of its functions, the presidential Commission on Good Government (PCGG) is a co-equal body with
the regional trial courts and co-equal bodies have no power to control the other. The RTC and CA have no jurisdiction over the
PCGG in the exercise of its powers under the EO and the Constitution (ART. XVIII, Sec. 26) and therefore may not interfere with
and restrain or set aside the orders and actions of the PCGG. By the same token, they have no jurisdiction over the acts of the
agents of the PCGG acting for and in behalf.

What are some limitations of Admin agencies acting as a court?

Administrative agencies:
CANNOT exercise PURELY judicial functions,
Do NOT have the inherent powers of a court,
Are NOT bound in their proceedings by all the rules applicable to proceeding in court.

Types of administrative agencies

1. Those created to function in situation wherein the government is offering some gratuity, grant, or special privilege. Ex. GSIS, SSS, Public
atty.’s office
2. Those set up to function in situation wherein government is seeking to carry on certain functions of government. Ex. BIR, customs,
immigration
3. To function in situations wherein the government is performing some business service for the public Ex. Phil. Postal corp., Phil. Nat’l
railways, NHA
4. seeking to regulate business affected with public interest. Ex. LTFRB, Insurance commission, Energy regulatory board
5. Under the police power to regulate private businesses and individuals Ex. Securities and exchange commission, MTRCB
6. seeking to adjust individual controversies because of some strong social policy involved. Ex. NLRC, DAR, COA
*admin agency may fall under more than one type

How are Administrative Agencies Reorganized and Abolished?

Experimentation is frequent in the field of administration, and particular admin agencies
are sometimes:
Abolished and new ones created embodying the fruits of experience;
Reorganized or their functions transferred to other agencies.
Congress has at various times vested powers in the President to reorganize executive agencies and redistribute functions and the
transfers made under such are held by the SC to be within the authority of President.
Any doubt as to the authority granted to the President and the due exercise thereof, is
determined by congressional approval and ratification in subsequently recognizing the validity of the transfer by making appropriations for
the purpose of carrying out the transferred function.
Constitutionally created admin agencies cannot be abolished by statute, while admin agencies created by statute or through the
authority of a statute may be validly abolished and reorganized
B. Administrative Organization
3 independent constitutional commissions: CSC, COMELEC, COA
 DOCTRINE OF POLITICAL AGENCY- the establishment of a single executive, all executive and administrative organizations are
adjuncts of the Executive department, the heads of various executive departments are assistants and agents of the chief
 executive, and, except in cases where the Chief Executive is required by the Constitution or law to act in person or the exigencies
of the situation demand that he acts personally, the multifarious executive and administrative functions of the chief executive are
performed by and through the executive departments, and the acts of the Secretaries of such departments, performed and
promulgated in the regular course of business, are, unless disapproved or reprobated by the Chief Executive, presumptively the
acts of the Chief executive.

Organization of the Office of the President

1. Office of the President Proper
 The private office- provide direct services to the pres. And matters that pertain to the first family
 The executive Office- headed by the executive sec.; responsive to the specific needs and requirements of the pre. To achieve the
purposes and objectives of the office.
 The Common Staff Support System- embraces the offices or units under the general categories of development and management,
general gov’t administration and internal administration
 Presidential Special Assistants/Advisers System-provide advisory or consultative services to the Pres. In such fields and under such
conditions as the President may determine.
2. Continuing authority to reorganize administrative structure of the OP. (Presidential check)
a. Restructure the internal organization of the Office of the Pres. Proper, including immediate Offices…. by abolishing, consolidating or
merging units thereof or transferring functions from one unit to another;
b. Transfer any function under the OP to any other Department or any other Agency as well as transfer functions to the OP from other
departments and agencies
c. Transfer agency under the OP to any other department or agency as well as transfer agencies to the OP from other departments or
agencies.

Department- refers to an executive department created by law. It includes any instrumentality having or assigned the rank of a
department, regardless of its name or designation.
Bureau- any principal subdivision or unit of any department. It shall include any principal subdivision or unit of any instrumentality given or
assigned the rank of a bureau, regardless of actual name or designation, as in the case of department-wide regional offices.
Office- within the framework of governmental organization, to any major functional unit of a department or bureau including regional
offices.
Agency of the government- to any various units of the government including a department bureau, office, instrumentality, or government-
owned or controlled corporation or a local gov’t or district unit therein.

Administrative Relationship
1. Supervision and control- include the authority to:
a. act directly whenever a specific function is entrusted by law or regulation to a subordinate;
b. directs the performance of duty; restrain the commission of acts;
c. review, approve. Reverse, or modify acts and decisions of subordinate officials or units;
d. determines priorities in the execution of plans and programs; and
e. prescribes standards, guidelines, plans and programs

2. Administrative supervision
a. It shall govern the administrative relationship between a department or its equivalent and regulatory agencies or other agencies as may
be provided by law. Limited to:
 Generally, oversee the operations of such agencies and to insure that they are managed effectively, efficiently and economically
but without interference with day-to-day activities;
 Require the submission of reports and cause the conduct of management audit, performance, evaluation and inspection to
determine compliance with policies, standards and guidelines of the department;
 To take such action as may be necessary for the proper performance of official functions, including ratification of violations,
abuses and other forms of maladministration
 To review and pass upon budget proposals of such agencies but may not increase or add to them.
b. such authority shall not, however, extend to:
1. appointment and other personnel actions in accordance with the decentralization of personnel functions under the Code, except when
appeal is made from an action of the appointing authority
2. contracts entered into by agency in the pursuit of its objectives,
3. The power to review, reverse, revise, or modify the decisions of regulatory agencies in the exercise of their regulatory or quasi-judicial
functions.

3. Attachment
a. refers to the lateral relationship between the department or its equivalent and the attached agency or corporation for purposes of policy
and program coordination.

Line bureau authority- shall exercise supervision and control over their regional and field offices.

Relationship of government-owned or controlled corporations to the Department

Government-owned or controlled corporations- refer to any agency organized as a stock or non-stock corporation, vested with functions
relating to public needs whether governmental or proprietary in nature, and owned by the government directly or through its
instrumentalities either wholly, or, where applicable, as in the case of stock corporations, to the extent of at least 50% of its capital stock.
 They may perform governmental or proprietary functions or both, depending on the purpose for which they have been created. If
for the purpose is to obtain special corporate benefits or earn pecuniary profit, the function is proprietary. If it is in the interest of
health, safety and for the advancement of public good and welfare, affecting the public in general, the function is governmental.
Powers classified as “proprietary” are those intended for private advantage and benefit.
What are the most common limitations imposed by the constitution?
Constitutional principles of separation of powers and non-delegability of powers.
Prohibits the delegation of legislative power, the vesting of judicial officers with nonjudicial functions, as well as the investing of non-
judicial officers with judicial powers.
It is for these reasons that the principles separation and non-delegation of powers are intertwined with the 1st & 3rd segments in the
study of admin law.
What is the effect of the emergence of administrative agencies in the execution of laws and promulgation of rules and regulations?
It has to a large extent, relaxed the rigidity of the theory of separation of powers by permitting the delegation of greater power by the
legislature and vesting a large amount of discretion in administrative and executive officials
What is the Rule of Non-Delegation of Powers?
No department of the gov’t (legis, exec &judiciary) can abdicate authority or escape responsibility by delegating any of its power to
another body.
EXCEPT: when such delegation is authorized by the Constitution.
EFFECT of delegation: It is VOID under the maxim of potestas delegate non potest delagari
What are the exceptions to non-delegation of powers by legis?
1) When permitted by the Constitution itself;
2) In case of delegation of legislative powers to local gov’ts
3) Delegation of the power to “fill in” details;
4) Delegation of rule-making and adjudicatory powers to admin bodies, PROVIDED, ascertainable standards are set;

Chapter 3
Powers and Functions of Administrative Agencies
 Function- is that which one is bound or which it is one’s business to do
 Power- means by which a function is fulfilled

Scope of Powers
1. Express and implied- the jurisdiction and powers of administrative agencies are measured and limited by the Constitution or law creating
them or granting their powers, to those conferred expressly or by necessary or fair implication (doctrine of necessary implication)
 Implied powers are those which are necessarily included in, and are, therefore of lesser degree than the powers granted. It cannot
extend to other matters not embraced therein, nor are not incidental thereto.
2. Inherent powers- in the absence of any provision of law, administrative agencies do not possess the inherent power to punish for
contempt which has always been regarded as a necessary incident and attribute of the courts.
3. Quasi- judicial powers- Unless expressly empowered, administrative agencies are bereft of quasi-judicial powers. The jurisdiction of
administrative authorities is dependent entirely upon the provisions of the statute reposing power in them; they cannot confer it upon
themselves

Nature of powers
1. Jurisdiction limited- they possess a limited jurisdiction, or purely constitutional or statutory powers. They possess only such powers and
authority as have been specifically granted to them by the Constitution or statutes and those as may be necessarily implied in the exercise
thereof or incidental to the attainment of their purposes or objectives.
2. Powers within their jurisdiction board- must commensurate with the duties to be performed and the purposes to be lawfully effected
 It is only where such power and authority have been manifestly abused that court may interfere
3. Powers subject to the Constitution, applicable law, or administrative regulation

What constitutes administrative power or administrative function

1. convenient rather than technical
2. powers not explicitly legislative, executive and judicial
3. Powers involve exercise of judgment and discretion

Powers of administrative agencies classified

1. As to nature
a. investigatory powers
b. quasi-legislative or rule making powers
c. quasi-judicial or adjudicatory powers
2. As to the degree of subjective choice
a. discretionary – the person exercising it may choose which of several courses will be followed.
 Discretion –the power or right conferred upon them by law of acting officially under certain circumstances, according to the
dictates of their own judgment and conscience, and not controlled by the judgment or conscience of others

b. ministerial- nothing is left to the discretion. A definite duty arising under conditions admitted or proved to exist, and imposed by LAW.
 Ministerial act- performed in response to a duty which has been positively imposed by law and its performance required at a time
and in a manner or upon conditions specifically designated, the duty to perform under the conditions specified not being
dependent upon the officer’s judgment or discretion.

B. Investigatory Powers
1. Scope- include the power of an administrative agency to inspect the records and premises, and investigate the activities of persons or
entities coming under its jurisdiction or to secure or to require the disclosure of information by means of accounts, records, reports,
statements, testimony of witnesses, production of documents, or otherwise.
2. As distinguished from judicial functions- It does not exercise judicial functions and its power is limited to investigating the facts and
making findings and recommendation in respect thereto.
3. Test of determining whether an administrative body is exercising judicial functions or merely investigatory functions: if the only purpose
for investigation is to evaluate evidence submitted before it because of the facts and circumstances presented to it, and if the agency is not
authorized to make a final pronouncement affecting the parties, then there is the absence of judicial discretion and judgment.

3 Basic Principles in administrative investigations initiated by complaint

1. Burden is on the complainant to prove his allegations by substantial evidence.
2. The findings of fact made therein are to be respected as long as they are supported by substantial evidence.
3. The administrative decision or finding can only be set aside on proof of gross abuse of discretion, fraud, or error of law.
 A fact finding and recommendatory body has no power to settle controversies or adjudicate cases.

Requiring the attendance of witnesses, giving testimony and production of evidence

 May validly vested in administrative agencies even for purposes not quasi-judicial
 An administrative agency may not itself be empowered to compel the attendance and testimony of witnesses but the compulsion
must be exerted through judicial process.
 The power to compel a witness to testify may not be inferred from a grant of authority to summon and examine witnesses. It must
be clearly given by statute.
Hearing- general rule; a hearing is not necessary part of an investigation by an administrative agency or official. A requirement that there
be an investigation carries with it no command that quasi-judicial hearing be conducted.
Contempt proceeding- persons failing to attend, give testimony and procedure records at an investigative proceeding may be punished for
contempt.
 An administrative body, however, cannot exercise its power to punish a person for contempt in the absence of any statutory
grant, for such power is inherently judicial in nature.
Application of technical rules of procedure and evidence- not strictly applied

Carmelo vs. Ramos

Facts: Committee created by executive order of mayor of manila to investigate anomalies issued subpoenas and demanded the witnesses
testify under oath.
ISSUE: Does the committee have the power to subpoena witnesses to appear before it and to ask their punishment in case of refusal.
Held:
None.
1. Committee is without authority to issue subpoenas and require appearance of witnesses.
“Before one can apply to the courts for the punishment of a hostile witness, he must first show that he has authority to take
testimony or evidence.
The delegation by the Mayor of the power to investigate does not imply also a delegation of the power to take testimony or
evidence of witnesses whose appearance may be acquired by the compulsory process of subpoena. Whatever power may be
claimed by petitioner’s committee may only be traced to the power of the Mayor to remove certain city employees. There is no
statutory grant of power to petitioner’s committee.”
2. Mayor without power to delegate the authority to committee.
“Even granting that the Mayor has implied power to require the appearance of witnesses before him, the rule is that the Mayor
cannot delegate this power to a body like the committee of the petitioner.”

Right to counsel in administrative investigations

1. Hearing not part of criminal prosecution-a party in an administrative inquiry may or may not be assisted by counsel,
irrespective of the nature of the charges and of the respondent’s capacity to represent himself. A respondent has the option
of engaging the services of counsel or nor.
2. Exclusionary rule in custodial investigation not applicable- The exclusionary rule under SEc.12(3) of the Bill of Rights applies
only to admissions made in a criminal investigation but not to those made in an administrative investigation.
 Custodial investigation is the stage where the police investigation is no longer general inquiry into an unsolved crime but has
begun to focus on a particular suspect process of interrogation that lends itself to elicit incriminating statements.

C. Rule-Making Powers
Definition; agency process for “formulating, amending, or repealing as a rule.”
 The essential legislative functions may not be delegated to administrative agencies.
 What may be granted to an administrative agency is rule-making power to implement the law entrusted to enforce. It necessarily
includes the power to amend, revise, alter, or repeal its rules and regulations.
 Administrative body may implement broad policies laid down in a statute by “filing in” only the details which the Legislature may
neither have time nor competence to provide. Administrative agency may only exercise quasi-legislative or rule-making powers if
there exists a law which delegates that power to them. This is a valid exception to the rule on non-delegation of legislative
provided 2 conditions concur:
a. The statute is complete itself, setting forth the policy to be executed [completeness test]
b. Said statute fixes a standard, mapping out the boundaries of the agency’s authority to which it must conform. [sufficient-
standard test]
 The rules and regulation have the presumption of validity and constitutionality. Conversely, a regulation not adopted pursuant to
law is no law and has neither the effect nor force of law.

Kinds of Administrative Rules or Regulations

1. Supplementary or Detailed Legislation
 Fix the details in the execution and enforcement of a policy set out in the law.
2. Interpretative Legislation
 Construe or interpret the provisions of a statute to be enforced
 Binding on all concerned until they are changed
 Effect of law and are entitled to respect
  Have in their favor presumption of legality
 Erroneous application of the law by public officers does not bar subsequent correct application of the law
3. Contingent Legislation or determination- under delegated powers, whether a statute shall go into effect
Requisites for Validity
1. Issued under authority of law
2. must be not contrary to law and the constitution
3. Reasonable
4. promulgated in accordance with the prescribed procedure

Publication in the OG or in a newspaper of general circulation

 Interpretative rules and regulations/mere internal in nature/ letters of instructions concerning the rules and guidelines to be
followed by their subordinates in the performance of their duties may simply be POSTED in CONSPICUOUS PLACES in the
AGENCY.
 DOLE Department Order and POEA Memorandum Circulars – proper publication + filing in the Office of the National
Administrative Register (Article 5 of LC)

Administrative Rules with Penal Sanctions (additional requisites)

1. law itself must declare as punishable the violation of the administrative rule or regulation
2. law should define or fix the penalty for the violation of the administrative rule or regulation

Necessity for Notice and Hearing

NO constitutional requirement for a hearing:
1. promulgation of a general regulation
2. rule is procedural
3. merely legal opinions
4. substantive rules where the class to be affected is large and the questions to be resolved involve the use of discretion committed to the
rule-making body
Hearing Requirement:
1. subordinate legislation, designed to implement a law by providing details
2. substantially adds to or increase the burden of those concerned
3. exercise of quasi-legislative authority
Function of Prescribing Rates by an Administrative Agency may either be:
Legislative Function: prior notice and hearing is not a requirement
-Where the rules and rates are meant to apply to ALL enterprises of a given kind throughout the country, they may partake of a
legislative character
Adjudicative Function: prior notice and hearing are essential to the validity
- Where the rules and rates are meant to apply exclusively to a particular party, then its function is quasi-judicial in character

• Where hearing is indispensable, it does not preclude the Board from ordering, ex parte, a provisional increase subject to its final
disposition of whether or not to make it permanent, to reduce or increase it further or to deny the application. (Maceda vs. Energy
Regulatory Board)
Determinative Powers
1. Directing -Power of assessment of BIR and Customs
2. Enabling -Permit or to allow something which the law undertakes to regulate
3. Dispensing -To exempt from a general prohibition OR Relieve individual or corporation from an affirmative duty
4. Examining- Investigatory power
5. Summary - Power to apply compulsion or force against persons or property to effectuate a legal purpose without a judicial
warrant to authorize such action
The standard of due process that must be met in administrative tribunals allows a certain latitude as long as the element of fairness is not
ignored; even in the absence of previous notice, there is no denial of due process as long as the parties are given the opportunity to be
heard.
Substantial evidence: such relevant evidence as a reasonable mind might accept as adequate to support a conclusion which is the quantum
of proof necessary to prove a change in an administrative case - “To be heard” does not mean only verbal agreements in court, one may
also be heard through pleadings.
Administrative Determinations where Notice and Hearing are NOT necessary for due process 1. Grant of provisional authority for
increased rates or to engage in a particular line of business 2. Summary proceedings of distraint and levy upon the property of a delinquent
taxpayer
3. Cancellation of passport, no abuse of discretion
4. Summary abatement of a nuisance per se which affects the immediate safety of persons/property
5. Preventive suspension of a public officer/employee pending investigation of administrative charges

Administrative Decisions not Part of the Legal System

- no vested right
-could not place government in estoppel
Administrative Appeal and Review
1. higher or superior administrative body
2. President/ Department Secretaries by virtue of the power of Control
3. appellate administrative agency
Doctrine of res judicata
-Decisions and orders of administrative agencies have upon their finality, the force and effect of a final judgment within the purview of the
doctrine of res judicata.
- Conclusive upon the rights of the affected parties as though the same had been rendered by a court of general jurisdiction.
- Forbids the reopening of a matter once determined by competent authority acting within their exclusive jurisdiction.
- Applies to adversary administrative proceeding
- Does NOT apply in administrative adjudication relative to citizenship
Exception: Zita Ngo Burca vs. Republic
1. question of citizenship is resolved by a court or an administrative body as a material issue in the controversy after a full-blown hearing
2. active participation of the SolGen
3. finding made by the administrative body on the citizenship issue is affirmed by the SC

EXHAUSTION OF ADMINISTRATIVE REMEDIES-Whenever there is an available administrative remedy provided by law, no judicial recourse
can be made until all such remedies have been availed of and exhausted.
Only decision of administrative agencies made in the exercise of QUASIJUDICIAL and ADJUDICATORY POWERS are subject to the rule on
exhaustion.
The Constitutionality/validity of a rule or regulation in the performance of quasi-legislative function it is the regular courts that have
jurisdiction.

Doctrine of Prior Resort/ Doctrine of Primary Administrative Jurisdiction- Where there is competence or jurisdiction vested upon an
administrative body to act upon a matter, no resort to the courts may be made before such administrative body shall have acted upon the
matter.
2. Doctrine of Finality of Administrative Action- No resort to the courts will be allowed unless the administrative action has been
completed and there is nothing left to be done in the administrative structure.
Effect of Failure to Exhaust Administrative Remedies –
 Jurisdiction of court is NOT affected
 Complainant is deprived of a CAUSE OF ACTION which is a ground for MTD (motion to dismiss)
 If no MTD is filed, deemed a waiver

Exceptions
1. Doctrine of Qualified Political Agency (alter ego doctrine)
2. Administrative remedy is fruitless
3. Estoppel on the part of the Administrative Agency
4. Issue involved is purely a legal question
5. Administrative action is patently illegal
6. Unreasonable delay or official inaction
7. Irreparable injury or threat, unless judicial recourse is immediately made
8. Land cases, where subject matter is private land
9. Law does not make exhaustion a condition precedent to judicial recourse
10. Observance of the doctrine will result in the nullification of the claim
11. Special reasons or circumstances demanding immediate court action
12. Due process of law is clearly violated
13. Rules does not provide a plain, speedy and adequate remedy
Questions which may be subject of judicial review
1. Question of Law
2. Question of Fact
 Factual findings of administrative agencies are generally conclusive upon the courts if supported by substantial evidence,
 EXCEPT: 1. expressly allowed by statute
2. fraud, imposition or mistake other than error of judgment
3. error in appreciation of the pleadings and in the interpretation of the documentary evidence presented by the parties
3. Mixed Question of Law and Fact (Doctrine of Assimilation of Facts)
Administrative decision in matters with the executive jurisdiction can only be set aside on proof of 1. grave abuse of discretion 2. fraud 3.
collusion 4. error of law
Courts will not generally interfere with purely administrative matters unless there is clear showing of arbitrary, capricious or grave abuse
of discretion amounting to lack of jurisdiction.
What are permissible delegations under the Constitution?
Art. VI, Sec. 23(2) & 28(2) of the 1987 Constitution respectively
 The grant of emergency powers to the President in times of war or any other national emergency should be for a “limited period”.
And such powers are  Self-liquidating in nature  Co-extensive and co-existent with the emergency w/c gave rise to the grant
thereof.
  Sec. 15 of 1973 Constitution (see left) solved the problem by providing that the Nat’l Assembly (Congress) need not pass a bill
repealing a statute granting emergency powers and may be withdrawn by mere resolution.  If not withdrawn sooner by a
resolution, such powers cease upon the next adjournment of Congress.
 In cases of authority of President to fix tariff rates, etc., Sec. 17, of 1973 Constitution provides that the delegated power must be
exercised “within specified limits” and “subject to such limitations and restrictions as it may impose” to prevent a wholesale
abdication of authority by the legislature.  The max and min should be fixed by law and the authority granted to Pres must be
exercised within these limits.
What are the powers usually delegated to Local governments?
1) Part of Police Power of the state 2) Power of Taxation 3) Power of Eminent Domain 4) Creation of Municipal Offices 5)
Establishment of Municipal hospitals, asylums, poor-houses and other charitable institutions; 6) Franchises to use municipal
streets 7) Incurring of Municipal Indebtedness 8) Municipal Licenses for Occupations/Privileges 9) Ownership of Public Utilities 10)
Regulation and Control over Streets 11) Special Assessments and others.

What is the “Completeness or Incompleteness of the Statute” Test?  A law must be complete in all its terms and provisions when it leaves
the legislative branch of gov’t.  Nothing is left to the judgment of others, or other appointee or delegate of the legislature.  A law is
unconstitutional and deemed as an improper delegation of legislative power where:  It is incomplete as a legislation; and  Authorizes an
executive board to decide what shall and what shall not be deemed as an infringement of the law.
 A statute is COMPLETE when the following are stated: (1) Subject of the law (2) The manner of its application (3) The extent of
its operation
What is the “Absence of Sufficiency of Standard” Test?  Even if a statute delegates authority, if it lays down a policy and a definite
standard by which the executive or admin officer or board may be guided in the exercise of his discretionary authority, there is no undue
delegation of legislative power.
Is the power to fix rates legislative or quasi-legislative?
 It partakes a legislative character when:  Rules and/or rates laid down by an administrative body are meant to apply to all enterprises
of a given kind, throughout the Philippines. (No previous notice or hearing is required in these cases.)
 It partakes a judicial character when:  Rules and/or rates apply: (1) Exclusively to a particular party (2) It is predicated upon a finding of
fact (based upon a report submitted by the Gen Auditing Office) (3) Such fact is denied by said party.  In these cases, SC has held that in
making said findings of fact, the agency performed a function partaking of a quasi-judicial character w/c demands previous notice and
hearing for its valid exercise.

What is the Power to fix Rates and Charges?

 The power to fix or limit the rates or charges exacted by public service corporations, such as railroads and other carriers, telephone
companies, gas, electric, power, and bridge companies may be conferred upon administrative authorities without involving any unlawful
delegation of legislative power.
 Same rule has been applied in the regulation of prices in other businesses, personal services and commodity prices.
 Authorizing a commission to change existing rats fixed by legislature itself is valid for in such a case, the legislature itself has repealed the
prior enactment, only leaving to the commission to fix the time when such repeal shall become operative.
 The only standard that legislature must prescribe for the guidance of the administrative authorities is that the rate be reasonable and
just.
 This standard is implied in the absence of an express requirement as to reasonableness.
When is Publication of Administrative Rules and Regulations Necessary?
 Administrative rules and regulations which are general in character and which carry criminal or penal sanctions, publication is necessary.
 While such are not statutes or law, these are issued in implementation of the laws authorizing their issuance and have the force and
effect of law.
 RATIO: General principle and theory that before the public is bound by their contents, especially their penal provisions, such regulations
must first be published and the people officially and specifically informed of their contents and penalties.
 Art. 2, NCC provides that laws are to take effect 15 days following the completion of their publication in the OG, UNLESS otherwise
provided.
When is Publication of Administrative Rules and Regulations NOT Necessary?
 The requirement above does not apply when the administrative regulation: (1) Merely interprets the provision of a law being
administered for the proper guidance of those concerned; and (2) Merely furnishes the implementing details of another regulation already
duly published.
Do Administrative Interpretative rulings have statutory force?
 Interpretative rulings DO NOT have statutory force but are accorded great weight when questioned in the court and will not be
overturned unless such are patently erroneous.

Administrative Rule-Making v. Quasi-Judicial Power.

Administrative Rule- Making Administrative Adjudication

Consists of the issuance of rules and regulations Applies only to a specific situation, hence it is particular and
Admin rule or regulation has general applicability immediate
Prospective in that it envisages the promulgation of a rule or
regulation generally applicable in the future

Refers to its end product called, order, award or decision Present determination of rights, privileges and duties as of a
previous or present time or concurrence.
(Transcribed from kuya ralph)
Checks of Administrative Agencies
 Presidential Check
 Congressional Check
 Legislative Check
 Check by the courts
 Judicial Review
 Ombudsman – may investigate on its own, or on complaint by any person, any act or omission appears to be
illegal, unjust, improper or inefficient.

Where is executive power vested?

The executive power is vested in the president. The president holds the position of chief executive, and so because
of this position under the Constitution, he has control over the administrative agencies therefore these admin
agencies are under check of the president. Under Sec 17 of Art 7 of Constitution “the president shall have control
of all the executive departments, bureaus and offices. “
What is the difference of those within the framework and outside the framework?
Only up to these offices that the power of control could be exercised, other than that waray na.
How does the President exercises power of check over these agencies?
The power to reorganize for economic and simplicity purposes; the power to abolish;
How do we abolish agencies?
It depends, if the agency is created by the constitution by amendment; if it is created by a statute, by creation of
another statute.
Does the president possess the power to create offices?
Yes, by authority of law including executive actions.
Case: Buklod vs. Zamora
In this case, the EIIB (Economic Intelligence and Investigation Bureau) was created to investigate help and
prosecute illegal acts affecting the national economy (economic sabotage, smuggling, among others). Its primary
responsibility is for anti-smuggling operation. Due to its redundant and overlapping function with other agencies,
the President deactivated the EIIB and transfer its function to Bureau of Customs and NBI. The personnel of EIIB
were deemed separated from service under reorganization. Presidential anti-smuggling taskforce was created
performing similar functions as EIIB. So, the employees filed a case contending the following:
1. Violation of Security of tenure
2. Created in bad faith because it leads to a creation of taskforce performing similar functions
3. It usurps the power of congress to abolish
The contention of the SolGen representing the president is that reorganization is part of the totality of the
executive power under the constitution and it is in the national interest of the economy to avoid duplicity of work
and next in line bureaucracy. The court held abolition and deactivation are both measures of reorganization. The
president has the power or reorganize. Abolition and deactivation according to the supreme court is a measure of
reorganization. To abolish is to do away with, to annul, to abrogate, or destroy completely. To deactivate is to
render ineffective or to break up by discharging or reassigning personnel. The president may reorganize for
simplicity, economy and efficiency. The creation of the task force does not entail additional cost, in fact it was
reduced. No new employees were appointed and the employees of other agencies were merely detailed to the
task force. Deactivation is a valid measure of check.
The president cannot abolish but it can deactivate.
How does the president exercise check over administrative agency?
Art 7, sec. 16 of Consti. “The president shall nominate and, with the consent of the Commission on appointments,
appoint the heads of the executive departments, ambassadors, other public ministers and consuls, or officers of
the armed forces from the rank of colonel or naval captain, and other officers whose appointments are vested in
him in this Constitution. He shall also appoint all other officers of the government whose appointments are not
otherwise provided for by law, and those whom he may be authorized by law to appoint. The Congress may, by
law, vest the appointment of other officers lower in rank in the President alone, in the courts, or in the heads of
departments, agencies, commissions, or boards.…. (Appointing power of the president.)
What does the phrase “the president alone” mean?
It means … court the heads of the department, bureaus and offices, agencies, commission and board.
But the congress has the authority to decide whether the appointment of the officer of the lower rank should be
preserve to the president alone or shared with the department or heads.
Congressional Check
Art 6 of Constitution
The congress has to power to create and abolish, Through appropriation measures and Confirmation of
appointment
Commissioner calderon vs. carale: In this case, according to the SC the NLRC chair and commissioners do not fall
under any of the enumerations. Therefore, they do not need confirmation by commission on appointments. With
respect to other officers whose appointments are not otherwise for by law, no confirmation is required.
Judicial Review of Administrative decision
Case: Chung Fu vs. CA (this is an ADR case)
Two entities entered into construction agreement but one party violated the terms and conditions of the contract
by virtue of which a case was filed in court. During the pendency of the case, they submit the dispute to arbitration
where they mutually agreed that the decision of the arbitrator should be final and unappealable. The arbitrator
awarded a substantial amount to one party. But the other party disagreed and cited several instances of grave
abuse of discretion on the part of the arbitrator because it departed with the terms of contract and applied the law
in excess of the delegated power and authority. The trial court confirmed the award and issued a writ of execution.
The aggrieved party went to the CA via certiorari but it was denied on the ground of estoppel.
Is the arbitration award agreed by the parties final and unappealable beyond judicial review?
No. under the civil code, the finality of arbitration is not absolute. It is subject to exceptions such as grave abuse of
discretion, if it acts without or in excess of jurisdiction. The remedy is certiorari under rule 65.
Final decisions of administrative agencies may still be subject to judicial review for lack of jurisdiction which is
actually a continuing ground for dismissal, grave abuse of discretion, violation of due process, denial of substantial
justice, erroneous interpretation of law.
If the authority is excessive it does not preclude judicial review. Even if based on agreement. It does not on the
litigants but on the law.
Available grievance mechanism under Art 11 of Consti (impeachment, accountability of public officers)
Sandiganbayan (Note the jurisdiction: Salary grade 27 and those included in the enumeration)
Ombudsman
The power of ombudsman to check administrative agencies is broad and it encompasses all kinds of malfeasance,
nonfeasance and misfeasance. That power of the ombudsman is not only recommendatory but mandatory.
President’s power of Administrative Agencies
Alter-ego doctrine
Qualified political agency doctrine
Control and supervision
Attachment
This is relevant because in administrative law most administrative agencies belong to the executive branch.
Exception: constitutional commission
In general, since the act of the secretary of the department is presumed to be the act of the president, one need
not bring the case to the office of the president under the political agency doctrine.
What’s the basis of alter-ego doctrine?
The president alone cannot perform all the acts personally. Therefore, the president will have to perform these
acts with other instrumentalities of other individuals or offices. Exception: when law provides president personally
act on it.

Why do we say anyone else who is task to perform the function of the president should only be considered
alter-ego?
Because they are performing in the capacity of the office of the president. Any act of the alter-ego is considered
an act of the president unless it is revoked or reprobated.
May the executive secretary, acting by authority of the president, reverse the decision of the director of lands,
that had been affirmed by the secretary of agriculture?
Yes. Basis is the control power of the president.
Case: Lacson vs. Magallanes
Congress passed fisheries code, and it specifically empowered the secretary of agriculture to issue rules and
regulations affecting prohibited forms of fishing such as troll fishing.
May the president issue and executive order ban troll fishing?
Yes. (Arameta vs. Gatmantan). Since the secretary of agriculture was empowered to regulate or ban fishing by troll,
the president in the exercise of his control power can take over from him such authority and issue EO to exercise it.
Administrative supervision
Section 38, paragraph 2 of the administrative code
*take note of that limitation because this limitation explains why the decisions of NLRC cannot be reviewed,
reversed, modified by the Secretary of Labor, even though the former is under the latter, because the Sec of Labor
merely has administrative supervision over the former. Instead of the Secretary, the decisions of NLRC are elevated
to the CA via rule 65.
May the court reverse the decision of the President in relation to the decision of his coordinates?
Yes, the control power of the President is still subject to judicial review.
Case: Montes vs. Civil Service board of appeal
The president’s decision on appeal from decision of administrative agency may still be reviewed by the courts.

Problem:
XYZ transit applied for an increase in bus fares for the route Moon municipality and Sun City. They were invoking
increase in fuel price, fuel expenses, and updated fare rates. LTFRB denied its application. XYZ elevated the
decision to the DOTC Secretary, which reversed the decision of the LTFRB. The decision of the Secretary became
final and executory but the President reversed and set aside the decision of Secretary invoking his power over his
subordinates. Is it allowed?
- We have to qualify the act or the nature of the decision subject to review. If it is administrative decision meaning
to say no case is pending, it can be reversed, but only as to the implementation or execution of law, it can never
attain finality. But if it exercised in its quasi-judicial function, there is rules of procedures that provides for the
remedies of those warranted.
Neypes Rule
Q: to what extent the neypes rule applies? Also applies to civil cases
What rule? Rule 40, 41
What is the purpose of the Neypes Doctrine? To standardize the appeal period to 15 days. Does it apply to Rule
42, 43 and 45? It need not apply because it is already the basis of the standard.
In labor Law for example you have illegal dismissal cases, there is specific provision on when to appeal. After the
lapse of the period to appeal it becomes final an executory. There is no way the president even in the invocation of
power of control can reverse that because it is so proven.
May the President discipline, in effect remove from office subordinates in the executive department?
It needs qualification. In relation to the power of control, only those appointed by the president. Do not think that
control power extends even up to the person of subordinates. While the power of control can undo act of those
appointed by someone else, if it is about the removal of the person then that affects the person and not the act.
So, we have to go by the rule as to who appointed them.

What are the powers of Administrative Agencies?

Quasi-legislative
Quasi-judicial
Others added investigatory or determinative