X. Administrative Law A.
General principles
Administrative agencies came about because of the growing complexities of modern life, increased subjects of government regulation and increased difficulty in administering laws. There is a need for Administrative agencies because the Government lacks time, expertise and organizational aptitude for effective continuing regulation of new developments in society.
B. Administrative agencies 1. Definition: The organs of government, other than a court and other than the legislature,
which affect the rights of private parties either through adjudication or through rule-making.
2. Manner of creation
a. 1987 Constitution (E.g. CSC, COMELEC, COA, CoA, CHR, JBC, and NEDA) b. Legislative Enactments (E.g. NLRC, SEC, PRC, SSC, CID, PPO, GAB, BoE, and IC) c. Executive Orders/ Authorities of law (E.g. Fact-finding Agencies)
3. Kinds
a. b. c. d. e. f. Government grant or gratuity, special privilege (e.g. GSIS, SSS, PAO); Carrying out the actual business of government (e.g. BIR, Customs); Service for public benefit (e.g. Philpost, PNR, MWSS, NFA, NHA); Regulation of businesses affected with public interest (e.g. LTFRB, NTC, HLURB); Regulation of private businesses and individuals (e.g. SEC); Adjustment of individual controversies because of a strong social policy involved (e.g. ECC, NLRC, SEC, DAR, COA).
C. Powers of administrative agencies 1. Quasi-legislative (rule making) power
The authority delegated by the law-making body to the administrative agency to adopt rules and regulations intended to carry out the provisions of a law and implement a legislative policy.
a) Kinds of administrative rules and regulations
Supplementary legislation - Pertains to rules and regulations to fix details in the execution of a policy in the law. e.g. IRRs of the Labor Code. Interpretative legislation - Pertains to rules and regulations construing or interpreting the provisions of a statute to be enforced and they are binding on all concerned until they are changed, i.e. BIR Circulars.
b) Requisites for validity of Delegation
(1) The law must be complete in itself and must set forth the policy to be executed (2) The law must fix a standard, the limits of which are sufficiently determinate or determinable, to which the delegate must conform
2. Quasi-judicial (adjudicatory) power
The power of the administrative agency to determine questions of fact to which the legislative policy is to apply, in accordance with the standards laid down by the law itself
a) Administrative due process
Cardinal Primary Rights: (Ang Tibay v CIR (1950))
(1) Right to a hearing (Includes the right of a party to present his own case and submit evidence in support thereof) (2) The tribunal must consider the evidence presented (3) Decision must be supported by evidence. (4) Evidence must be substantial. (5) Decision must be rendered on the evidence presented at the hearing or at least contained in the record and disclosed to the parties affected (6) Independent consideration of judge (Must not simply accept the views of a subordinate) (7) Decision rendered in such a manner as to let the parties know the various issues involved and the reasons for the decision rendered.
b) Administrative appeal and review
A party must prove that it has been affected or aggrieved by an administrative agency in order to entitle it to a review by an appellate administrative body or another administrative body.
c) Administrative res judicata
The doctrine of res judicata applies only to judicial or quasi-judicial proceedings and not to the exercise of purely administrative functions. Purely administrative proceedings are non-litigious and summary in nature; hence, res judicata does not apply.
3. Fact-finding, investigative, licensing and rate-fixing powers
Fact-finding power: power to declare the existence of facts as basis for enforcement of law. Investigative power: power to conduct investigations and hearings; inherent in the functions of an administrative agency. Licensing function: Notice and hearing required only for contested case. Rate Fixing power: Generally, the power to fix rates is a quasi-legislative function. However, it becomes judicial when the rate is applicable only to an individual.
D. Judicial recourse and review 1. Doctrine of primary administrative jurisdiction
Courts will not intervene if the question to be resolved is one which requires the expertise of administrative agencies and the legislative intent on the matter is to have uniformity in the rulings. It can only occur where there is a concurrence of jurisdiction between the court and the administrative agency.
2. Doctrine of exhaustion of administrative remedies
Where the law has delineated the procedure by which administrative appeal or remedy could be effected, the same should be followed before recourse to judicial action can be initiated.
3. Doctrine of finality of administrative action
A broader doctrine which encompasses the Doctrine of Exhaustion of Administrative Remedies. It is a prerequisite for judicial review.
