Department of Finance v. Dela Cruz
Department of Finance v. Dela Cruz
Department of Finance v. Dela Cruz
11/22, 9:26 PM SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM
_______________
* SECOND DIVISION.
1 Carmelita M. Talusan withdrew as petitioner in Civil Case No. 13-
130820, noted by the trial court in its Order dated 4 October 2013. Rollo,
p. 58.
2 Arefiles H. Carreon manifested his intent to withdraw as petitioner
in Civil Case No. 13-130820 per letter to counsel dated 16 October 2013.
G.R. No. 209331. August 24, 2015.* Id., at p. 119.
respective competence.·The doctrine of exhaustion of 2013 was issued, EO No. 140 was not yet effective. Article 2 of the
administrative remedies allows administrative agencies to carry out Civil Code of the Philippines, as amended by Executive Order No.
their functions and discharge their responsibilities within the 200, is clear on this issue. It states: Art. 2. Laws shall take effect
specialized areas of their respective competence. The doctrine after fifteen days following the completion of their publication
entails lesser expenses and provides for the speedier resolution of either in the Official Gazette, or in a newspaper of general
controversies. Therefore, direct recourse to the trial court, when circulation in the Philippines, unless it is otherwise provided. The
administrative remedies are available, is a ground for dismissal of proviso „unless it is otherwise provided‰ refers to an effectivity date
the action. The doctrine, however, is not without exceptions. Among other than after fifteen days following the completion of the lawÊs
the exceptions are: (1) where there is estoppel on the part of the publication. Thus, it is within the discretion of the legislature, or
party invoking the doctrine; (2) where the challenged the Executive Department in this case, whether to shorten or
administrative act is patently illegal, amounting to lack of extend the fifteen-day period as long as there is compliance with the
jurisdiction; (3) where there is unreasonable delay or official requirement of publication. Here, Section 9 of EO No. 140 provides
inaction that will irretrievably prejudice the complainant; (4) where that the „order shall take effect immediately upon publication in
the amount involved is relatively so small as to make the rule two (2) newspapers of general circulation.‰ EO No. 140 was
impractical and oppressive; (5) where the question involved is published in Manila Bulletin and Philippine Star on 17 September
purely legal and will ultimately have to be decided by the courts of 2013. As such, EO No. 140 took effect on 17 September 2013.
justice; (6) where judicial intervention is urgent; (7) where the Detail; Under Section 8, Rule VII of the Omnibus Rules, a detail
application of is temporary in nature. In fact, detail of employees is only allowed
for a maximum period for those occupying professional, technical,
and scientific positions.·Under Section 8, Rule VII of the Omnibus
Rules, a detail is temporary in nature. In fact, detail of employees is
75 only allowed for a maximum period for those occupying
professional, technical, and scientific positions.
allowed provided it is with the consent of the detailed employee. Administrative Law; Civil Service Commission; Jurisdiction;
The extension or renewal of the period of the detail shall be within View that the Constitution confers jurisdiction over the Civil Service
the authority of the mother agency. If the employee believes that Commission (CSC) for cases involving the civil service.·The
there is no justification for the detail, he/she may appeal his/her Constitution confers jurisdiction over the Civil Service Commission
case to the proper Civil Service Commission Regional Office. for cases involving the civil service. Article IX(B), Section 1(1) of the
Pending appeal, the detail shall be executory unless otherwise Constitution provides: SECTION 1. (1) The Civil Service shall be
ordered by said regional office. Decision of said regional office may administered by the Civil Service Commission composed of a
be further appealed to the Commission En Banc. In this case, CPO Chairman and two Commissioners who shall be natural-born
189-2013 did not provide for the period of respondentsÊ detail. It citizens of the Philippines and, at the time of their appointment, at
only provided that the order „shall be effective immediately and least thirty-five years of age, with proven capacity for public
valid until sooner revoked,‰ making the detail of respondents administration, and must not have been candidates for any elective
indefinite. There was nothing to show that respondents were position in the elections immediately preceding their appointment.
occupying professional, technical, and scientific positions that would
have allowed their detail for the maximum period provided under Same; Same; Same; View that the Constitution gives the Civil
Section 8, Rule VII of the Omnibus Rules. Further, CSC Resolution Service Commission (CSC) quasi-judicial powers through Article
No. 021181 did not distinguish between an ordinary employee and IX(A), Sections 6 and 7.·The Constitution gives the Civil Service
an employee occupying professional, technical, and scientific Commission quasi-judicial powers through Article IX(A), Sections 6
position. Hence, it should have been specified that the maximum and 7, which provide: SECTION 6. Each Commission En Banc may
period of respondentsÊ detail should not exceed one year. promulgate its own rules concerning pleadings and practice before it
or before any of its offices. Such rules, however, shall not diminish,
increase, or modify substantive rights. SECTION 7. Each
LEONEN, J., Dissenting Opinion: Commission shall decide by a majority vote of all its Members any
case or matter brought before it within sixty days from the date of
its submission for decision or resolution. A case or matter is deemed
Administrative Agencies; Civil Service Commission; submitted for decision or resolution upon the filing of the last
Jurisdiction; View that the Civil Service Commission (CSC) has pleading, brief, or memorandum required by the rules of the
exclusive jurisdiction over questions regarding personnel actions Commission or by the Commission itself. Unless otherwise provided
affecting civil service employees.·The Civil Service Commission has by this Constitution or by law, any decision, order, or ruling of each
exclusive jurisdiction over questions regarding personnel actions Commission may be brought to the Supreme Court on certiorari by
affecting civil service employees. It is the sole arbiter that decides the aggrieved party within thirty days from receipt of a copy
controversies regarding the civil service at first instance. Courts thereof.
should not directly assume jurisdiction based on allegations of
Same; Same; Same; View that as the „central personnel agency
unconstitutionality and invalidity of government regulations when
of the Government‰ with quasi-judicial powers and as the body
the question, in essence, involves a personnel action.
tasked to administer the civil service, the Civil Service Commission
(CSC) is the „sole arbiter of controversies relating to the civil
service.‰·As the „central personnel agency of the Government‰
with quasi-judicial powers and as the body tasked to administer the
77 civil service, the Civil Service Commission is the „sole arbiter of
controversies relating to the civil service[,]‰ including personnel
VOL. 768, AUGUST 24, 2015 77 actions, as this court has ruled.
until the process comes to an end.·The doctrine of exhaustion of the orders of the court would be null and void for lack of
administrative remedies presupposes that the court has jurisdiction jurisdiction.·The exceptions to the doctrine of exhaustion of
over the subject matter of the complaint or petition. Otherwise, it administrative remedies likewise do not apply because the Regional
can never have the power to take cognizance of the case as Trial Court has no jurisdiction to resolve the dispute in the first
contemplated by Soto. While both the court and the administrative place. In order for the exceptions to apply, the court to which the
agency have jurisdiction over the subject matter, the general rule is petition was prematurely filed should have jurisdiction; otherwise,
that the courts, because of comity, practicality, and convenience, will the orders of the court would be null and void for lack of
not interfere with the administrative process until the process jurisdiction. Decisions or orders rendered by tribunals and agencies
comes to an end. This is because availing administrative remedies that do not have subject matter jurisdiction are null and void.
entails lesser expenses and results in a speedier resolution of Hence, the exceptions to the doctrine of exhaustion of
controversies. On the other hand, since the court and the administrative remedies should not be applicable since the Regional
administrative agency have concurrent jurisdiction, exceptions may Trial Court, the court to which the Petition for declaratory relief
be warranted by the circumstances, and the court may choose to was filed, lacks subject matter jurisdiction, and any order or
assume jurisdiction over the controversy. decision rendered by it would be null and void.
Detail; Security of Tenure; View that detail of government
personnel to other offices does not involve and violate the employeesÊ
security of tenure in the absence of any grave abuse of discretion or
80 improper motive or purpose.·In any case, detail of government
personnel to other offices does not involve and violate the
employeesÊ security of tenure in the absence of any grave abuse of
80 SUPREME COURT REPORTS ANNOTATED
discretion or improper motive or purpose.
Department of Finance vs. Dela Cruz, Jr.
executive order or regulation, ordinance, or any other governmental Marino M. Dela Cruz, Jr. (Executive Judge Dela Cruz) in
regulation may, before breach or violation thereof, bring an action in favor of respondents Silvestre, et al.4 to 20 days or until 21
the appropriate Regional Trial Court to determine any question of October 2013 without need of posting bond.
construction or validity arising, and for a declaration of his rights or
duties, thereunder. The Antecedent Facts
Same; Same; Same; View that for a petition for declaratory
relief to prosper, there should be no other adequate relief available to The case stemmed from the issuance of Executive Order
petitioners.·For a Petition for declaratory relief to prosper, there No. 140 (EO 140) on 2 September 2013, which created the
should be no other adequate relief available to petitioners. „If Customs Policy Research Office (CPRO) in the Department
adequate relief is available through another form of action or of Finance (DOF). EO 140 states that the CPRO „shall be
proceeding, the other action must be preferred over an action for responsible for reviewing the customs administration
declaratory relief.‰ policies, rules and procedures, and thereafter providing
sound recommendations for the improvement of the same.‰
PETITION for review on certiorari of the order of the Section 3 of EO 140 provides that „CPRO shall be composed
Regional Trial Court of Manila, Br. 17. of its organic personnel, as approved by the Department of
The facts are stated in the opinion of the Court. Budget and Management (DBM) upon recommendation of
Office of the Solicitor General for petitioners. the DOF Secretary, augmented and reinforced by DOF and
Esguerra and Blanco for private respondents. BOC personnel as well as those detailed or seconded from
other agencies, whether attached to the DOF or not. x x x.‰
CARPIO, J.: Section 9 of EO 140 states that it shall „take effect
immediately upon publication in two (2) newspapers of
The Case general circulation.‰ EO 140 was published in Manila
Bulletin and Philippine Star on 17 September 2013.
Petitioners assail the Order dated 4 October 20133 On the same day of the publication of EO 140, Bureau of
issued by Judge Felicitas O. Laron-Caca- Customs (BOC) Commissioner Rozzano Rufino B. Biazon
(Commissioner Biazon) issued Customs Personnel Order
_______________ No. B-189-2013 (CPO 189-2013) detailing 27 BOC
personnel holding the positions of Collector of Customs V
3 Id., at pp. 57-63. and VI, including
83
82
Declaratory Relief with Application for Temporary action for declaratory relief. As regards its effectivity,
Restraining Order and/or Writ of Preliminary Injunction petitioners alleged that EO 140 states that it shall „take
before the Regional Trial Court (RTC) of Manila. On 1 effect immediately upon publication in two (2) newspapers
October 2013, Executive Judge Dela Cruz issued a TRO for of general circulation.‰
a period of 72 hours enjoining petitioners or any person In an Order dated 21 October 2013, Judge Laron-Caca-
acting for and in their behalf from implementing CPO 189- nindin denied respondentsÊ application for the issuance of a
2013. Thereafter, the case was raffled to the sala of Judge writ of preliminary injunction.
Laron-Cacanindin. In an Order dated 5 November 2013, Judge Laron-Caca-
In the assailed Order of 4 October 2013, Judge Laron- nindin inhibited herself from further hearing the case.
Cacanindin extended Executive Judge Dela CruzÊs 72-hour
TRO for 20 days or until 21 October 2013. She then set the The Issues
hearing for the issuance of a preliminary injunction on 18
October 2013. The issues for determination by this Court are the
On 21 October 2013, petitioners filed a Petition for following:
Certiorari and Prohibition before this Court, with prayer 1. Whether the RTC has jurisdiction over the action
for the issuance of a TRO or a writ of preliminary for declaratory relief filed by respondents;
mandatory injunction. Petitioners alleged that the case 2. Whether respondents failed to exhaust
involves personnel action affecting public officers which is administrative remedies in filing the action
under the exclusive jurisdiction of the Civil Service before the RTC;
Commission (CSC). Petitioners also alleged that 3. Whether EO 140 violated Article 2 of the Civil
respondents failed to exhaust all administrative remedies Code when it became effective immediately after
available to them before filing the petition before the RTC. its publication; and
Petitioners also alleged that CPO 189-2013 is an internal 4. Whether CPO 189-2013 was validly issued.
personnel order with application that is limited to and only
within BOC and as such, it cannot be the subject of an The Ruling of this Court
action for declaratory relief.
In their Comment, respondents alleged that the case Jurisdiction over the Petition
involves the validity and constitutionality of CPO 189-
2013, and thus, it is beyond the jurisdiction of the CSC. The CSC has jurisdiction over all employees of
Respondents further alleged that EO 140 violated Article 2 government branches, subdivisions, instrumentalities, and
of the Civil Code when it became effective immediately agencies, including government-owned or -controlled
after its publication. corporations with original charters.5 The CSC is the sole
arbiter of controversies
_______________
84
5 Corsiga v. Defensor, 439 Phil. 875; 391 SCRA 267 (2002).
84 SUPREME COURT REPORTS ANNOTATED
Department of Finance vs. Dela Cruz, Jr.
85
In their Reply, petitioners alleged that respondents only
assailed the validity of EO 140 to justify their filing of an
complainant; (4) where the amount involved is relatively so Article 2 of the Civil Code of the Philippines, as
small as to make the rule impractical and oppressive; (5) amended by Executive Order No. 200,11 is clear on this
where the question involved is purely legal and will issue. It states:
ultimately have to be decided
Art. 2. Laws shall take effect after fifteen days following the
completion of their publication either in the Official Gazette, or in a
_______________
newspaper of general circulation in the Philippines, unless it is
8 Addition Hills Mandaluyong Civic & Social Organization, Inc. v. otherwise provided.
Megaworld Properties & Holdings, Inc., G.R. No. 175039, 18 April 2012,
670 SCRA 83.
The proviso „unless it is otherwise provided‰ refers to an
9 Id.
effectivity date other than after fifteen days following the
com-
_______________
87
10 Vigilar v. Aquino, 654 Phil. 755; 639 SCRA 772 (2011).
11 Providing for the Publication of Laws Either in the Official Gazette
VOL. 768, AUGUST 24, 2015 87
or in a Newspaper of General Circulation in the Philippines as a
Department of Finance vs. Dela Cruz, Jr. Requirement for their Effectivity.
published.‰14 EO 140 is an internal regulation that affects provide necessary support in the performance of its mandate.
primarily the personnel of the DOF and the BOC. It
remains valid even without publication.
Respondents were supposed to augment and reinforce
Validity of CPO 189-2013 the existing organic personnel of CPRO. Yet, at the time of
respondentsÊ detail, CPRO had not been formally
Respondents assail the validity of CPO 189-2013. organized. CPRO had no organic personnel that had been
Respondents allege that under EO 140, CPRO shall be approved by the DBM upon recommendation of the DOF
composed of its organic personnel, as approved by the DBM Secretary. The DOF Secretary had yet to promulgate rules
upon recommendation of the DOF Secretary. The organic and regulations and to prescribe procedures and processes
personnel was supposed to be augmented and reinforced by to enable CPRO to effectively exercise its powers and
DOF and BOC personnel. Respondents allege that they duties, as required by Section 4 of EO 140.
were detailed to CPRO even before its organic personnel In addition, under Section 8, Rule VII of the Omnibus
could be constituted. Rules, a detail is temporary in nature. In fact, detail of
We rule for respondents. employees is only allowed for a maximum period for those
Section 3 of EO 140 provides: occupying professional, technical, and scientific positions.15
Section 8, Rule VII of the Omnibus Rules provides:
_______________ SEC. 8. A detail is the movement of an employee from one
department or agency to another which is temporary in
12 Nagkakaisang Maralita ng Sitio Masigasig, Inc. v. Military Shrine
nature, which does not involve a reduction in rank, status or
Services-Philippine Veteran Affairs Office, Department of National
salary and does not require the issuance of another
Defense, G.R. No. 187587, 5 June 2013, 697 SCRA 359.
appointment.
13 Tañada v. Tuvera, 230 Phil. 528; 146 SCRA 446 (1986), Resolution
The employee detailed receives his salary only from his
on Motion for Reconsideration.
mother unit/agency.
14 Id.
_______________
scientific position. If the employee believes that there is no VOL. 768, AUGUST 24, 2015 91
justification for the detail, he may appeal his case to the
Department of Finance vs. Dela Cruz, Jr.
Commission. Pending appeal, the decision to detail the
employee shall be executory unless otherwise ordered by the
Commission.
tion. Hence, it should have been specified that the
maximum period of respondentsÊ detail should not exceed
Section 2 of CSC Resolution No. 021181, dated 13 one year.
September 2002,16 clarified the maximum period of detail Petitioners assert, and we quote:
of employees. It states:
There is a cancer of corruption we must extinguish. The drive to
Section 2. Duration of the detail.·The detail shall be rid the government of graft and corruption deserves the support of
allowed only for a maximum period of one year. Details everyone.
beyond one year may be allowed provided it is with the The principle of good governance cannot, should not, be
consent of the detailed employee. The extension or renewal of trivialized nor oversimplified by tenuous whimpering and
the period of the detail shall be within the authority of the individualism intended to detract from the urgent need to cleanse
mother agency. the Republic from a mainstream culture of unabated corruption,
If the employee believes that there is no justification for perpetuated with impunity and sense of self-entitlement. The issue
the detail, he/she may appeal his/her case to the proper Civil at hand is not about who, but what; it is not about individual loss,
Service Commission Regional Office. Pending appeal, the but about national gain. Whether from the birth pains of reform,
detail shall be executory unless otherwise ordered by said this nation can gain a foothold, nay, a stride into restoring this
regional office. Decision of said regional office may be further nation into its prideful place from the clutches of a „kleptocratic
appealed to the Commission En Banc. mafia‰ that had gained a strangehold into one of the nationÊs
primary sources of revenue.17
In this case, CPO 189-2013 did not provide for the period
of respondentsÊ detail. It only provided that the order „shall Indeed, we commend and support the reforms being
be effective immediately and valid until sooner revoked,‰ undertaken in the different agencies of the government.
making the detail of respondents indefinite. There was However, we cannot allow department heads to take
nothing to show that respondents were occupying shortcuts that will undermine and disregard the basic
professional, technical, and scientific positions that would procedures of the law.
have allowed their detail for the maximum period provided WHEREFORE, we PARTIALLY GRANT the petition.
under Section 8, Rule VII of the Omnibus Rules. Further, We sustain the validity of Executive Order No. 140. We rule
CSC Resolution No. 021181 did not distinguish between an that the Regional Trial Court has jurisdiction over the
ordinary employee and an employee occupying professional, action for declaratory relief filed by respondents. We
technical, and scientific posi- further rule that Customs Personnel Order No. B-189-2013
was not validly issued.
_______________
SO ORDERED.
16 As contained in CSC Memorandum Circular No. 21, Series of 2002. Peralta,** Del Castillo and Mendoza, JJ., concur.
_______________
17 Rollo, p. 10.
91
** Designated acting member per Raffle dated 10 August 2015.
2 Id.
3 Rollo, pp. 10-50.
4 Id., at pp. 54-56.
92 5 Id., at pp. 57-63.
6 Id., at p. 44.
92 SUPREME COURT REPORTS ANNOTATED 7 Id.
_______________
APPROVED:
(signed)
CESAR V. PURISIMA
Secretary
Department of Finance
Date: ________17
_______________
29 Id., at pp. 80 and 84. Bureau of Customs filed this Petition for certiorari and
30 Civil Code, Art. 2, as amended by Exec. Order No. 200 (1987), prohibition.43
provides:
ART. 2. Laws shall take effect after fifteen days following the _______________
completion of their publication either in the Official Gazette or in a
newspaper of general circulation in the Philippines, unless it is otherwise 34 Id.
provided. 35 Id., at pp. 94-115.
31 Rollo, p. 84. 36 Id., at pp. 98-99.
32 Id., at pp. 15-16. 37 Id., at p. 39.
33 Id., at p. 16. 38 Id., at p. 62.
39 Id., at pp. 323-326.
40 Id., at p. 326.
41 Id., at p. 351. The employees were Arnel C. Alcaraz, Ma. Lourdes
V. Mangaoang, Romalino G. Valdez, Lilibeth S. Sandag, Ma. Liza S.
99
Torres, and Raymond P. Ventura.
42 Id.
VOL. 768, AUGUST 24, 2015 99 43 Id., at p. 9.
Department of Finance vs. Dela Cruz, Jr.
Customs argued that some of the requirements for filing a Detail, the detail shall only last for at most, one (1) year.56
Petition for declaratory relief were absent.49 First, a In their Comment dated January 8, 2014, the 15
declaratory relief is available only when the government employees countered that the Regional Trial Court had
issuance being questioned is a national law or an ordinance jurisdiction as the main issue was the validity and
of general application.50 Since Customs Personnel Order constitutionality of Customs Personnel Order No. B-189-
No. B-189-2013 was an internal personnel order whose 2013.57 The resolution of this issue required the exercise of
application was limited within the Bureau of Customs, it judicial review, which was beyond the competence of the
cannot be a subject of a Petition for declaratory relief.51 Civil Service Commission.58
Second, the declaratory relief was no longer available Since the 15 employeesÊ Petition for declaratory relief
because Customs Personnel Order No. B-189-2013 had alleges that Customs Personnel Order No. B-189-2013 is
been breached prior to the filing of the Petition.52 The 15 unconstitutional and invalid, those allegations should
employees allegedly committed a breach when they failed suffice for the Regional Trial Court to assume
to report to the Customs Policy Research Office upon the jurisdiction.59
effectivity of Customs Personnel Order No. B-189-2013 According to the 15 employees, Customs Personnel
Order No. B-189-2013 is unconstitutional for violating their
_______________ right to security of tenure.60 Their detail to the Customs
Policy and Research Office amounts to constructive
44 Id., at p. 125. dismissal61 as they are now „mere researchers[.]‰62
45 Id., at pp. 127-154.
46 Id., at p. 359.
_______________
47 Id., at pp. 24-25.
48 Id., at p. 28. 53 Id.
49 Id., at p. 24. 54 Id., at p. 37.
50 Id., at p. 33. 55 Id., at pp. 116-118.
51 Id. 56 Id., at pp. 39-40.
52 Id., at p. 35. 57 Id., at p. 135.
58 Id., at p. 140.
59 Id., at p. 143.
60 Id., at pp. 137-140.
61 Id., at pp. 149-150.
101
62 Id., at p. 142.
claim that Customs Personnel Order No. B-189-2013 is a Department of Finance vs. Dela Cruz, Jr.
government regulation, affecting their rights, duties, rank,
and status.64 Hence, Customs Personnel Order No. B-189- tions immediately preceding their appointment. (Emphasis
2013 is a proper subject of a Petition for declaratory supplied)
relief.65 They also argue that Customs Personnel Order No.
B-189-2013 is void, producing no effect.66 According to
them, a void or unconstitutional law or issuance cannot be As part of the Civil Service CommissionÊs mandate to
a source of an obligation so it cannot be breached.67 administer the civil service, Article IX(B), Section 3 of the
This case should consider the following issues: Constitution provides:
First, whether the Regional Trial Court has jurisdiction
SECTION 3. The Civil Service Commission, as the central personnel
over private respondentsÊ Petition for declaratory relief;
agency of the Government, shall establish a career service and adopt
Second, whether all the requisites for the filing of a
measures to promote morale, efficiency, integrity, responsiveness,
Petition for declaratory relief are present; and
progressiveness, and courtesy in the civil service. It shall
Finally, whether Customs Personnel Order No. B-189-
strengthen the merit and rewards system, integrate all human
2013 is void because of its indefinite term.
resources development programs for all levels and ranks, and
institutionalize a management climate conducive to public
I.
accountability. It shall submit to the President and the Congress an
annual report on its personnel programs. (Emphasis supplied)
The Constitution confers jurisdiction over the Civil
Service Commission for cases involving the civil service.
Article IX(B), Section 1(1) of the Constitution provides: The Constitution gives the Civil Service Commission
SECTION 1. (1) The Civil Service shall be administered by the Civil quasi-judicial powers through Article IX(A), Sections 6 and
Service Commission composed of a Chairman and two 7, which provide:
Commissioners who shall be natural-born citizens of the Philippines
SECTION 6. Each Commission En Banc may promulgate its own
and, at the time of their appointment, at least thirty-five years of
rules concerning pleadings and practice before it or before any of its
age, with proven capacity for public administration, and must not
offices. Such rules, however, shall not diminish, increase, or modify
have been candidates for any elective position in the elec-
substantive rights.
SECTION 7. Each Commission shall decide by a majority vote of all
_______________ its Members any case or matter brought before it within sixty days
from the date of its submission for decision or resolution. A case or
63 Id., at pp. 141-144.
matter is deemed submitted for decision or resolution upon the
64 Id., at pp. 141-143.
filing of the last pleading, brief, or memorandum required by the
65 Id., at p. 143.
rules of the Commission or by the Commission itself. Unless
66 Id.
otherwise provided by this Constitution or by law, any decision,
67 Id.
order, or ruling of each Commission may be brought to the Supreme
Court on certiorari by the aggrieved party within thirty days from
receipt of a copy thereof. (Emphasis supplied)
103
_______________
9. Thus, [private respondentsÊ] original and permanent
appointments in plantilla positions as Collectors of Customs VI and
72 CSC Memorandum Circular No. 19-99 (1999), Rule I, Sec. 2(b) V were effectively and constructively revoked even before the
provides: effectivity of [Executive Order] No. 140 creating the [Customs
SECTION 2. Coverage and Definition of Terms.· . . . Policy Research Office]. They are all „detailed‰ to the [Customs
b. COMMISSION refers to the Civil Service Commission (Central Policy Research Office] without any appointment papers providing
Office and Regional Offices). for their specific functions, status, salary grades, ranks, and
73 Const., Art. IX(B), Sec. 3. designation. By virtue of the assailed issuance, [private
74 Const., Art. IX(A), Secs. 6 and 7. respondentsÊ] were all removed from their respective permanent
75 Const., Art. IX(B), Sec. 1(1). positions as Collectors of Customs to form a supposed „research
76 Corsiga v. Defensor, 439 Phil. 875, 883; 391 SCRA 267, 272-273 (2002) body.‰
10. The Department of Budget and Management (DBM), Security of Tenure of Civil Service Officers and Employees in the
pursuant to [Executive Order] No. 140 has not even approved the Implementation of Government Reorganization] further provides
composition of the organic personnel of the [Customs Policy that due notice and hearing are required to remove a public officer
Research Office]. Neither has the [Department of Finance] or employee pursuant to a bona fide reorganization, viz.:
appeared to have made the requisite recommendation for that No officer or employee in the career service shall be removed
purpose, as mandated by [Executive Order] No. 140. except for a valid cause and after due notice and hearing. A valid
108 109
108 SUPREME COURT REPORTS ANNOTATED VOL. 768, AUGUST 24, 2015 109
Department of Finance vs. Dela Cruz, Jr. Department of Finance vs. Dela Cruz, Jr.
20. The patent nullity of [Customs Personnel Order] No. B- augmented and reinforced by Department of Finance and Bureau of
189-2013 is readily apparent since Section 703 of [the Tariff and Customs personnel. Despite the absence of any organic personnel,
Customs Code] merely authorizes the [Bureau of Customs] much less approval from the Department of Budget and
Commissioner to assign or move [Bureau of Customs] personnel Management or even a recommendation from the [Department of
only within the Bureau. Since the [Customs Policy Research Office] Finance], [private respondents] have, in speed haste, already been
is a newly created „office‰ outside of the [Bureau of Customs], the ordered to be „detailed‰ by the [Bureau of Customs] to the [Customs
[Bureau of Customs] CommissionerÊs issuance of [Customs Policy Research Office], and thus, effectively removed from their
Personnel Order] No. B-189-2013 which „details‰ [private current respective permanent positions.
respondents] to the [Customs Policy Research Office] is clearly an 23. The landmark case of Dario v. Mison, et al., where the
ultra vires act, and is therefore inva- Supreme Court voided the personnel reorganization within the
[Bureau of Customs], is highly instructive in this case, thus:
111
110
VOL. 768, AUGUST 24, 2015 111
110 SUPREME COURT REPORTS ANNOTATED Department of Finance vs. Dela Cruz, Jr.
112 113
112 SUPREME COURT REPORTS ANNOTATED VOL. 768, AUGUST 24, 2015 113
Department of Finance vs. Dela Cruz, Jr. Department of Finance vs. Dela Cruz, Jr.
the [Customs Policy Research Office] under [Customs Personnel diminution of pay. The test of constructive dismissal is whether a
Order] No. B-189-2013 does not even provide for a definite period of reasonable person in the employeeÊs position would have felt
duty, their titles, new functions, or ranks. compelled to give up his position under the circumstances. It is an
27. Moreover, under CSC Memorandum Circular No. 06-05, act amounting to dismissal but is made to appear as if it were not.
otherwise known as the „Guidelines on Designation,‰ it is clear that: Constructive dismissal is therefore a dismissal in disguise. The law
recognizes and resolves this situation in favor of employees in order
....
B. Designees can only be designated to to protect their rights and interests from the coercive acts of the
positions within the level they are currently employer. Thus, the Supreme Court has ruled that the management
occupying. However, Division Chiefs may be prerogative to transfer an employee „cannot be used as a subterfuge
designated to perform the duties of third
level positions by the employer to rid himself of an undesirable worker.‰
First level personnel cannot be 32. Evidently, [private respondentsÊ] „detail‰ to the [Customs
designated to perform the duties of second Policy Research Office] operated as a blanket and forced
level positions.
.... relinquishment of their permanent positions as Collectors of
Customs in violation of their right to security of tenure. In view
29. The basis of [private respondentsÊ] reassignment or the thereof, it behooves upon this Honorable Court to correct such
exigency necessary to remove them from their positions is likewise abuse of powers and retain [private respondents] to their rightful
inexistent. Such blanket „detail‰ relinquishes [private respondentsÊ] ranks.
permanent positions as Collectors of Customs without due process ....
and is contrary to their Constitutional right to security of tenure. 35. . . . in accordance with the Supreme CourtÊs ruling in Tañada
Clearly, the disparity between the positions of a Collector of v. Tuvera, laws and executive issuances shall take effect after
Customs and a mere researcher is blatant. Therefore, the transfer fifteen (15) days following the completion of their publication in the
from the former to the latter unmistakeably denotes demotion. . . . Official Gazette, or in a newspaper of general circulation.
36. In this case, [Executive Order] No. 140 was published in the Thus, there is a manifest urgency for this Honorable Court
17 September 2013 issue of the broadsheet newspaper, Manila to immediately restrain [petitioners] from implementing
Bulletin. Thus, following the above legal standards, it is clear that [Customs Personnel Order] No. B-189-2013 upon receipt of
[Executive Order] No. 140 has yet to take legal effect on 2 October this petition and before the matter can be heard on notice.
2013. In other words, the [Bureau of CustomsÊ] issuance of Otherwise, grave injustice and irreparable injury would be
[Customs Personnel Order] No. B-189-2013 on 17 September 2013 suffered by [private respondents], in that:
simply has no legal basis, and is therefore premature and patently
(a) [Executive Order] No. 140, on
invalid. To deprive [private respondents] of their permanent
which [Customs Personnel Order]
positions as Collectors of Customs and to „detail‰ all 15 of them No. B-189-2013 is based, has yet
indefinitely as members of a research body on the basis of an to take effect upon publication in
invalid [Bureau of Customs] and [Department of Finance] order are two (2) newspapers of general
not only illegal but also unconstitutional for being violative of circulation. [Executive Order] No.
[private respondentsÊ] right to security of tenure. 140 was published in the 17
September 2013 issue of the
Manila Bulletin, hence, it will
only take effect on 2 October 2013.
[Customs Personnel Order] No. B-
189-2013 cannot be given any
114
effectivity as it is invalid for being
SECTION 26. Personnel Actions.·. . .
115 As used in this Title, any action denoting the movement or
progress of personnel in the civil service shall be known as
personnel action. Such action shall include appointment through
VOL. 768, AUGUST 24, 2015 115
certification, promotion, transfer, re-
Department of Finance vs. Dela Cruz, Jr.
118
instatement, reemployment, detail, reassignment, demotion, and
separation. (Emphasis supplied)
118 SUPREME COURT REPORTS ANNOTATED
Department of Finance vs. Dela Cruz, Jr.
The assailed Customs Personnel Order No. B-189-2013
is a personnel action because it details 27 employees from
the Bureau of Customs to the Customs Policy Research Disciplinary cases and cases involving „personnel actions‰
Office. It is a movement of personnel in the civil service. affecting employees in the civil service including „appointment
Cases involving personnel actions are within the through certification, promotion, transfer, reinstatement,
exclusive jurisdiction of the Civil Service Commission and reemployment, detail, reassignment, demotion and separation‰ are
not within the trial courtsÊ jurisdiction.80 within the exclusive jurisdiction of the Civil Service Commission
The issue is not novel. which is the sole arbiter of controversies relating to the civil service.
In Olanda v. Bugayong,81 respondent Leonardo G. ....
Bugayong (Bugayong), as President of the Philippine It was thus error for the trial court, which does not have
Merchant Marine Academy, relieved petitioner Menelieto jurisdiction, to, in the first, [sic] place take cognizance of the
A. Olanda (Olanda) from his post as the Dean of the petition of petitioner assailing his relief as Dean and his
College of Marine Engineering of the Philippine Merchant designation to another position. This leaves it unnecessary to dwell
Marine Academy82 and imposed a three (3)-month on the issues herein raised by petitioner.
suspension83 on the latter for allegedly „misusing classified WHEREFORE, the petition is, upon the ground of lack of
information.‰84 Olanda filed before the Regional Trial Court jurisdiction of the trial court, hereby DENIED.
of Iba, Zambales a Petition for „quo warranto, mandamus, SO ORDERED.87 (Emphasis supplied, citation omitted)
and prohibition with prayer for the issuance of a writ of
preliminary injunction and damages, claiming that there
In Casimina v. Judge Legaspi,88 petitioner Pablo B.
was no valid cause to deprive him of his position[.]‰85
Casimina (Casimina), General Manager of the Philippine
This court ruled that the trial court had no
Fisheries Development Authority, issued Special Order No.
jurisdiction.86 Hence:
82, which reassigned private respondent Emmanuel T.
Illera (Illera), Port Manager of the Iloilo Fishing Port
_______________ Complex, from Iloilo to the central office in Quezon City.89
80 Olanda v. Bugayong, supra note 1 at pp. 632-633; p. 260; Mantala After the denial of his request for reconsideration,90 Illera
v. Salvador, G.R. No. 101646, February 13, 1992, 206 SCRA 264, 267 filed for injunction with a prayer for temporary restraining
[Per CJ. Narvasa, En Banc]; and Corsiga v. Defensor, supra note 76 at order and a writ of preliminary injunction against
pp. 883-884; p. 271. Casimina before the Regional Trial Court of Iloilo „to
81 Id. restrain [Casimina] from transferring him to the central
82 Id., at p. 629; p. 256. office in Quezon City.‰91
83 Id., at p. 630; p. 257.
84 Id., at p. 629; p. 256. _______________
85 Id., at p. 630; p. 257.
87 Id., at pp. 632-633; pp. 259-260.
86 Id., at p. 633; p. 260.
88 500 Phil. 560; 462 SCRA 171 (2005) [Per J. Corona, Third
Division].
Motion to Dismiss.111
In all these cases, this court upheld the jurisdiction of Upon appeal, this court applied the „exclusion theory,‰112
the Civil Service Commission over complaints involving the i.e., „where jurisdiction is conferred in express terms upon
movement of personnel in the civil service. one court, and not upon another [and where] it has been
held that it is the intention that the jurisdiction conferred
II. shall be exclusive‰113 and upheld the exclusive jurisdiction
of the Court of Industrial Relations (now National Labor
The doctrine of primary administrative jurisdiction Relations Commission).114 Hence:
precludes trial courts from resolving a controversy
involving a question that is within the exclusive
jurisdiction of an administrative tribunal.105 The doctrine But judicial wisdom in this particular matter would seem to favor
disallows courts „to arrogate adherence to the exclusion theory, what with the litigantÊs ordinary
duty to exhaust administrative reme-
_______________
_______________
104 Id., at pp. 267-268.
105 Javier v. Court of Appeals, G.R. No. 96617, October 14, 1992, 214 106 Catipon, Jr. v. Japson, G.R. No. 191787, June 22, 2015, 759 SCRA
SCRA 572, 576 [Per J. Nocon, Second Division]. 557, 574 [Per J. Del Castillo, Second Division].
107 94 Phil. 932 (1954) [Per J. Bengzon, En Banc].
108 Id., at p. 933.
109 Id., at p. 934.
110 Id.
121
111 Id.
112 Id., at p. 941.
VOL. 768, AUGUST 24, 2015 121 113 Id.
114 Id., at pp. 941-942.
Department of Finance vs. Dela Cruz, Jr.
demands the exercise of sound seas Employment Administration, it was the Philippine
administrative discretion requiring the
special knowledge, experience, and services
Overseas Employment Administration that had original
of the administrative tribunal to determine and exclusive jurisdiction over LolitaÊs Complaint and that
technical and intricate matters of fact, and the trial court had no jurisdiction over the subject matter of
a uniformity of ruling is essential to comply
with the purposes of the regulatory statute
her Complaint.122 Hence, under the doctrine of primary
administered.‰ (42 Am. Jur. 698)115 administrative jurisdiction, the trial court cannot resolve
the controversy.123 This court ordered the Regional Trial
Court to dismiss the case for lack of jurisdiction.141
This court also made a similar ruling in Javier v. Court In Catipon, Jr. v. Japson,125 respondent Jerome Japson
of Appeals.116 In Javier, Normito Javier (Normito) was (Japson), „a former Senior Member Services Representative
„employed by private respondent Jebsens Maritime, Inc. as of [the] [Social Security System], Bangued, filed a letter-
a boatswain[.]‰117 Normito, however, died at sea.118 Upon complaint [before] the Civil Service Commission-[Cordillera
learning of her husbandÊs death, Lolita Javier (Lolita) went Administrative Region] Regional Director[.]‰126 He alleged
to the office of Jebsens Maritime, Inc. and the latter that petitioner Macario U. Catipon, Jr. (Catipon) made
„promised to give the corresponding death benefits[.]‰119 deliberate false entries in his application to take the Civil
After Jebsens Maritime, Inc. had failed to pay the promised Service Professional Examination.127 The Civil Service
death benefits, Lolita filed a Complaint before the Regional Commission-Cordillera Administrative Region Regional
Trial Court of Makati for a sum of money for herself and on Director found Catipon guilty of conduct prejudicial to the
behalf of her six (6) minor children against Jebsens best interest of the service.128
Maritime, Inc. and its shipmaster.120 Catipon appealed to the Court of Appeals, which
This court ruled that under Section 3(d)121 of Executive dismissed the appeal.129 The Court of Appeals held that
Order No. 247 or the Reorganization Act of the Philippine instead of filing the appeal before the Court of Appeals,
Over- Catipon should have appealed to the Civil Service
Commission, based on Sections
_______________
_______________
116 Supra note 105.
117 Id., at p. 573. (d) Exercise original and exclusive jurisdiction to hear and
118 Id., at p. 574. decide all claims arising out of an employer-employee relationship
119 Id. or by virtue of any law or contract involving Filipino workers for
120 Id. overseas employment including the disciplinary cases[.]
121 Exec. Order No. 247 (1987), Sec. 3(d) provides: 122 Supra note 105 at pp. 575-576.
SECTION 3. Powers and Functions.· 123 Id., at p. 576.
124 Id., at pp. 575 and 577.
125 Supra note 106.
126 Id., at p. 562.
123 127 Id.
128 Id.
129 Id., at p. 567.
VOL. 768, AUGUST 24, 2015 123
Department of Finance vs. Dela Cruz, Jr.
130 CSC Memorandum Circular No. 19-99 (1999), Rule I, Sec. 5(A)(1) VOL. 768, AUGUST 24, 2015 125
provides: Department of Finance vs. Dela Cruz, Jr.
SECTION 5. Jurisdiction of the Civil Service Commission Proper.
·The Civil Service Commission Proper shall have jurisdiction
This court affirmed the Decision of the Court of
over the following cases:
Appeals134 and held:
A. Disciplinary
1. Decisions of Civil Service Regional Offices brought before it on The [Court of Appeals] is further justified in refusing to take
petition for review[.] cognizance of the petition for review, as „[t]he doctrine of primary
131 CSC Memorandum Circular No. 19-99 (1999), Rule III, Sec. 43 jurisdiction does not warrant a court to arrogate unto itself the
provides: authority to resolve a controversy the jurisdiction over which is
SECTION 43. Filing of Appeals.·Decisions of heads of initially lodged with an administrative body of special competence.‰
departments, agencies, provinces, cities, municipalities and other When petitionerÊs recourse lies in an appeal to the Commission
instrumentalities imposing a penalty exceeding thirty (30) days Proper in accordance with the procedure prescribed in [Revised
suspension or fine in an amount exceeding thirty days salary, may Uniform Rules on Administrative Cases in the Civil Service], the
be appealed to the Commission Proper within a period of fifteen [Court of Appeals] may not be faulted for refusing to acknowledge
(15) days from receipt thereof. petitioner before it.135 (Emphasis supplied)
In case the decision rendered by a bureau or office head is
appealable to the Commission, the same may be initially appealed
to the department head and finally to the Commission Proper. Hence, considering the exclusive jurisdiction of the Civil
Pending appeal, the same shall be executory except where the Service Commission to hear and decide administrative
penalty is removal, in which case the same shall be executory only cases, including those involving personnel actions, as
after confirmation by the Secretary concerned. granted by the Constitution, the Regional Trial Court
A notice of appeal including the appeal memorandum shall be cannot assume jurisdiction based on the doctrine of
filed with the appellate authority, copy furnished the disciplining primary administrative jurisdiction.
office. The latter shall submit the records of the case, which shall In sustaining the trial courtÊs assumption of jurisdiction
be systematically and chronologically arranged, paged and over the Petition for declaratory relief, the ponencia held
securely bound to prevent loss, with its comment, within fifteen that the case falls under an exception to the doctrine of
(15) days, to the appellate authority. exhaustion of administrative remedies.136 The ponencia
132 CSC Memorandum Circular No. 19-99 (1999), Rule III, Sec. 49 states:
provides:
In this case, respondents allege that [Customs Personnel Order
SECTION 49. Petition for Review.·A complainant may elevate
No. B-189-2013] is contrary to law and unconstitutional.
Respondents assail [Customs Personnel Order No. B-189-2013] as primary jurisdiction over the subject matter, the courts
patently illegal, arbitrary, and oppressive. This case clearly falls „cannot or will not determine a controversy involving a
within the exceptions question which is within the jurisdiction of an
administrative tribunal prior to the decision of that
_______________ question by the administrative tribunal[.]‰141 The doctrine
of primary administrative jurisdiction presupposes that the
134 Id., at p. 574. administrative agency has jurisdiction over the subject
135 Id., citing Vidad v. Regional Trial Court of Negros Oriental, matter while the court does not. The Complaint or Petition,
Branch 42, G.R. No. 98084, October 18, 1993, 227 SCRA 271, 276 [Per J. therefore, cannot be filed before the court. As the issue is
Vitug, En Banc].
136 Ponencia, p. 87.
_______________
137 Id.
138 G.R. No. 85439, January 13, 1992, 205 SCRA 92, 110 [Per J.
Davide, Jr., En Banc].
126
139 Rollo, p. 140.
140 Id.
126 SUPREME COURT REPORTS ANNOTATED 141 Supra note 105 at p. 576.
Department of Finance vs. Dela Cruz, Jr.
Private respondents, citing Kilusang Bayan sa VOL. 768, AUGUST 24, 2015 127
Paglilingkod ng mga Magtitinda ng Bagong Pamilihang Department of Finance vs. Dela Cruz, Jr.
Bayan ng Muntinlupa, Inc. (KBMBPM) v. Dominguez,138
likewise argue that exceptions to the doctrine of exhaustion jurisdictional, there should be no exception to the doctrine
of administrative remedies apply.139 Hence: of primary administrative jurisdiction. When the complaint
Moreover, the doctrine of exhaustion of administrative remedies
or petition is filed before a court with no subject matter
also yields to other exceptions, such as when the question involved
jurisdiction, the court has no other option but to dismiss
is purely legal, as in the instant case, or where the questioned act is
the case.142
patently illegal, arbitrary or oppressive.140
On the other hand, under the doctrine of exhaustion of
administrative remedies, before a party may seek
intervention from the court, he or she should have already
The doctrine of exhaustion of administrative remedies exhausted all the remedies in the administrative level.143 If
does not apply and, consequently, its exceptions. there is still a remedy available within the administrative
The doctrine of primary administrative jurisdiction is machinery, „then such remedy should be exhausted first
different from the doctrine of exhaustion of administrative before [the] courtÊs judicial power can be sought.‰144 The
remedies. doctrine of exhaustion of administrative remedies
Under the doctrine of primary administrative presupposes that both the courts and the administrative
jurisdiction, when an administrative agency is granted agency have concurrent jurisdiction. This is because
128
Development Corporation, G.R. No. 173386, February 11, 2014, 715 In Department of Agrarian Reform v. Trinidad Valley
SCRA 650, 670 [Per J. Villarama, Jr., En Banc]. Realty & Development Corporation,163 Trinidad Valley
155 Id. Realty &
156 Supra note 76.
157 Id., at p. 879; p. 269. _______________
Reform asserted that „jurisdiction over all agrarian reform authority by the simple expediency of
appending an allegedly constitutional
matters is exclusively vested in the [Department of or legal dimension to an issue that is
Agrarian Reform,]‰169 not in the regular courts. This court clearly agrarian.
ruled that the Regional Trial Court had no jurisdiction.170
The legal recourse undertaken by Trinidad Valley Realty and
The Court likewise ruled in the similar case of [Department of Development Corporation, et al. is on all-fours with the remedy
Agrarian Reform] v. Cuenca that „[a]ll controversies on the adopted by the private respondents in Cuenca. In this case,
implementation of the Comprehensive Trinidad Valley Realty and Development Corporation, et al. cloaked
the issue as a constitutional question · assailing the
constitutionality of administrative issuances promulgated to
_______________
implement the agrarian reform law · in order to annul the titles
163 Supra note 154. issued therein. In Cuenca, private respondents assailed the
164 Id., at pp. 653-654. constitutionality of EO 45 in order to annul the Notice of Coverage
165 Id., at p. 654. issued therein. The only difference is that in Cuenca, private
166 Id., at pp. 661-662. respondents directly filed with the RTC their complaint to obtain
167 Id., at p. 654. the aforesaid reliefs while in this case, Trinidad Valley Realty and
168 Id., at p. 656. Development Corporation, et al. filed their original petition for
169 Id., at p. 655. certiorari with the RTC after the protest of Trinidad Valley Realty
170 Id., at p. 671. and Development Corporation against the coverage of its
landholding under CARP was dismissed by the DAR Regional
Director and such dismissal was affirmed by DAR
133
134
VOL. 768, AUGUST 24, 2015 133
Department of Finance vs. Dela Cruz, Jr.
134 SUPREME COURT REPORTS ANNOTATED
Agrarian Reform Program (CARP) fall under the jurisdiction of the Department of Finance vs. Dela Cruz, Jr.
Department of Agrarian Reform (DAR), even though they raise
questions that are also legal or constitutional in nature.‰ In OIC Secretary Jose Mari B. Ponce. But in both cases, it is evident
said case, it was noted that the main thrust of the allegations in the that the constitutional angle was an attempt to exclude the cases
Complaint was the propriety of the Notice of Coverage and „not from the ambit of the jurisdictional prescriptions under RA
x x x the Âpure question of lawÊ spawned by the alleged 6657.171 (Emphasis supplied, citations omitted)
unconstitutionality of EO 405 · but x x x the annulment of the
DARÊs Notice of Coverage.‰ The Court thus held that:
Invocations of issues of validity and constitutionality of
To be sure, the issuance of the Notice of Customs Personnel Order No. B-189-2013 will not suffice
Coverage constitutes the first necessary
step towards the acquisition of private land for the courts to assume jurisdiction, if the order sought to
under the CARP. Plainly then, the propriety be declared invalid is a personnel action. Since the
of the Notice relates to the implementation questioned order is a personnel action, the exclusive
of the CARP, which is under the quasi-
judicial jurisdiction of the DAR. Thus, the jurisdiction of the Civil Service Commission as the sole
DAR could not be ousted from its arbiter of controversies relating to the civil service must be
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175 Id.
176 Commissioner of Customs v. Hypermix Feeds Corporation, supra
note 173 at p. 686; p. 672.
135
177 Id., at pp. 684-685; pp. 667-668.
178 Id., at p. 691; p. 674.
VOL. 768, AUGUST 24, 2015 135
Department of Finance vs. Dela Cruz, Jr.
136
der, instruction, ordinance, or regulation in the courts,
including the regional trial courts.‰175
In Hypermix, Hypermix Feeds Corporation filed a 136 SUPREME COURT REPORTS ANNOTATED
Petition for declaratory relief before the Regional Trial
Department of Finance vs. Dela Cruz, Jr.
Court, with the Petition challenging the validity and
Case law states that the following are the requisites for an action 189-2013Ês effectivity.181 Private respondents Arnel C.
for declaratory relief: first, the subject matter of the controversy Alcaraz, Ma. Lourdes V. Mangaoang, Romalino G. Valdez,
must be a deed, will, contract or other written instrument, statute, Lilibeth S. Sandag, Ma. Liza S. Torres, and Raymond P.
executive order or regulation, or ordinance; second, the terms of Ventura only reported for work after the trial courtÊs denial
said documents and the validity thereof are doubtful and require of their application for a writ of preliminary injunction.182
judicial construction; third, there must have been no breach of the By not reporting for work upon the issuance of Customs
documents in question; fourth, there must be an actual justiciable Personnel Order No. B-189-2013 on September 17, 2015,
controversy or the „ripening seeds‰ of one between persons whose private respondents committed a breach of the Order. Since
interests are adverse; fifth, the issue must be ripe for judicial they committed the breach prior to the filing of their
determination; and sixth, adequate relief is not available through Petition for declaratory relief, the petition is no longer
other means or other forms of action or proceeding.180 (Emphasis in available.
the original, citation omitted) In Martelino, et al. v. National Home Mortgage Finance
Corporation, et al.,183 petitioners (Martelino, et al.)
obtained housing loans from respondents National Home
The third and sixth requisites are absent. The Mortgage Finance Corporation and Home Development
Complaint before the lower court did not simply ask for a Mutual Fund.184 National Home Mortgage Finance
declaration of a hypothetical breach. Adequate relief Corporation and Home Development Mutual Fund directly
through the Civil Service Commission was also available. released the proceeds of the housing loans to the
Executive Order No. 140 was published on September subdivision developer, Shelter Philippines, Inc. (Shelter).185
17, 2013. According to Section 9, Executive Order No. 140 Shelter did not complete the subdivision pursuant to its
shall take effect immediately. On September 17, 2013, subdivision plan.186 Martelino, et al. then filed a Petition
Bureau of Customs Commissioner Rozzano Rufino B. for declaratory relief to determine whether they can
Biazon issued Customs Personnel Order No. B-189-2013. suspend payment to National Home Mortgage Finance
On September 30, 2013, private respondents filed their Corporation and Home Development Mutual Fund because
Petition for declaratory relief. There was no denial by of ShelterÊs failure to complete the subdivision and whether
private respondents that they did not report for work upon interests and penalties should also be suspended.187
Custom Personnel Order No. B-
_______________ _______________
179 G.R. No. 204603, September 24, 2013, 706 SCRA 273 [Per J. 181 Rollo, pp. 400-401.
Perlas-Bernabe, En Banc]. 182 Id., at p. 351.
180 Id., at p. 283. 183 579 Phil. 145; 556 SCRA 663 (2008) [Per J. Quisumbing, Second
Division].
184 Id., at p. 148; p. 668.
185 Id.
_______________
138
188 Id., at p. 155; p. 676.
189 Id.
138 SUPREME COURT REPORTS ANNOTATED
Department of Finance vs. Dela Cruz, Jr.
This court found that at the time of the filing of their 139
Petition for declaratory relief, Martelino, et al. already
suspended payment of their amortizations to National VOL. 768, AUGUST 24, 2015 139
Home Mortgage Finance Corporation and Home
Development Mutual Fund.188 Hence, this court concluded Department of Finance vs. Dela Cruz, Jr.
that the Regional Trial Court cannot assume jurisdiction
over the Petition for declaratory relief.189 Hence: guidance in its enforcement or compliance and not to settle issues
arising from its alleged breach. It may be entertained only before
the breach or violation of the statute, deed, contract, etc. to which it
Indeed, under Section 1, Rule 63, a person must file a petition for refers. Where the law or contract has already been contravened prior
declaratory relief before breach or violation of a deed, will, contract, to the filing of an action for declaratory relief, the court can no
other written instrument, statute, executive order, regulation, longer assume jurisdiction over the action.... Under such
ordinance or any other governmental regulation. In this case, the circumstances, inasmuch as a cause of action has already accrued in
petitioners had stated in their petition that respondents assessed favor of one or the other party, there is nothing more for the court to
them interest and penalties on their outstanding loans, initiated explain or clarify short of a judgment or final order.190 (Emphasis
foreclosure proceedings against petitioner Rafael Martelino as supplied, citations omitted)
evidenced by the notice of extrajudicial sale and threatened to
foreclose the mortgages of the other petitioners, all in disregard of
their right to suspend payment to Shelter for its failure to complete In Aquino v. Municipality of Malay, Aklan,191 petitioner
the subdivision. Said statements clearly mean one thing: petitioners Crisostomo B. Aquino (Aquino) is „the president and chief
had already suspended paying their amortization payments. executive officer of Boracay Island West Cove Management
Unfortunately, their actual suspension of payments defeated the Philippines, Inc. (Boracay West Cove).‰192 The Office of the
purpose of the action to secure an authoritative declaration of their Mayor of Malay, Aklan issued Executive Order No. 10,
supposed right to suspend payment, for their guidance. Thus, the Series of 2011, ordering the closure and demolition of a
RTC could no longer assume jurisdiction over the action for hotel owned by Boracay West Cove.193 On June 10, 2011,
declaratory relief because its subject initially unspecified, now Executive Order No. 10 was implemented partially.194
identified as P.D. No. 957 and relied upon · correctly or otherwise To stop the implementation of Executive Order No. 10,
· by petitioners, and assumed by the RTC to be Rep. Act No. 8501, Aquino filed a Petition for certiorari with prayer for
was breached before filing the action. As we said in Tambunting, Jr. injunctive relief before the Court of Appeals.195 The Court
v. Sumabat: of Appeals dismissed the Petition on the ground that the
correct remedy was for Aquino „to file a petition for
. . . The purpose of the action [for
declaratory relief with the Regional Trial Court.‰196 for carrying out the directives in the challenged [Executive Order
No. 10]. Indubitably, the CA erred when it ruled that declaratory
_______________ relief is the proper remedy given such a situation.197 (Emphasis
supplied, citation omitted)
190 Id., at pp. 155-156; pp. 676-677.
191 G.R. No. 211356, September 29, 2014, 737 SCRA 145 [Per J.
Velasco, Jr., Third Division]. In City of Lapu-Lapu v. Philippine Economic Zone
192 Id., at p. 152. Authority,198 the City of Lapu-Lapu and the Province of
193 Id., at p. 154. Bataan demanded from the Philippine Economic Zone
194 Id. Authority payment of real property taxes.199 The Philippine
195 Id. Economic Zone Authority filed a Petition for declaratory
196 Id., at p. 155. relief before the Regional Trial Court, „praying that the
trial court declare it ex-
_______________
140
197 Id., at p. 157.
198 G.R. No. 184203, November 26, 2014, 742 SCRA 524 [Per J.
140 SUPREME COURT REPORTS ANNOTATED Leonen, Second Division].
199 Id., at p. 547.
Department of Finance vs. Dela Cruz, Jr.
courts can no longer assume jurisdiction over the action. In so provides. Section 6 of the same rule, which allows the court to
other words, a court has no more jurisdiction over an action treat an action for declaratory relief as an ordinary action, applies
for declaratory relief if its subject has already been only if the breach or violation occurs after the filing of the action but
infringed or transgressed before the institution of the before the termination thereof.
action.207 Hence, if, as the trial court itself admitted, there had been a
Private respondents argue that Customs Personnel breach of the statute before the filing of this action, then indeed the
Order No. B-189-2013 is void, producing no effect. Hence, remedy of declaratory relief cannot be availed of, much less can the
„there is actually no breach, real or imaginary, to speak of suit be converted into an ordinary action.210 (Emphasis supplied,
in this case.‰208 citation omitted)
Subscribing to petitionersÊ theory will render ineffective
the phrase „before breach or violation thereof‰ found in
Section 1 of Rule 63 of the Rules of Court when a petitioner Considering that there was already a breach of Customs
questions the validity of a written instrument or Personnel Order No. B-189-2013 when private respondents
governmental regulation. By arguing that the instrument filed their Petition for declaratory relief, the Regional Trial
or regulation questioned is void at the onset, a petitioner Court can no longer act on the Petition for want of
may file any time a petition for declaratory relief with no jurisdiction.
regard to whether he or she violated the „void‰ instrument For a Petition for declaratory relief to prosper, there
or regulation. should be no other adequate relief available to
Private respondentsÊ belated compliance with Customs petitioners.211 „If adequate relief is available through
Personnel Order No. B-189-2013 cannot cure the defect of another form of action or proceeding, the other action must
want of jurisdiction. In Gomez v. Palomar, etc., et al.,209 this be preferred over an action for declaratory relief.‰212
court declared: In Ferrer, Jr., et al. v. Mayor Roco, Jr., et al.,213 this court
affirmed the dismissal of a Petition for declaratory relief
The prime specification of an action for declaratory relief is that where the doctrine of primary administrative jurisdiction
it must be brought „before breach or violation‰ of the statute has applied because it meant that there was another adequate
been committed. Rule 64, Section 1 remedy available to petitioners.214
Here, private respondentsÊ correct remedy was to file a
_______________ Complaint or Petition before the Civil Service Commission
to
206 616 Phil. 177; 600 SCRA 189 (2009) [Per J. Chico-Nazario, Third
Division].
_______________
207 Id., at p. 189; p. 202.
208 Rollo, p. 143. 210 Id., at p. 779; p. 832.
209 134 Phil. 771; 25 SCRA 827 (1968) [Per J. Castro, En Banc]. 211 Republic v. Roque, supra note 179 at p. 283.
212 City of Lapu-Lapu v. Philippine Economic Zone Authority, supra
note 198 at p. 562.
213 637 Phil. 310; 623 SCRA 313 (2010) [Per J. Mendoza, Second
Division].
144
214 Id., at pp. 318-319; p. 320.
145
217 Rollo, p. 117. There is nothing in Executive Order No. 140 that
218 Philippine International Trading Corporation v. Angeles, 331 requires that the organic personnel of the Customs Policy
Phil. 723, 747; 263 SCRA 421, 444 (1996) [Per J. Torres, Jr., Second Research Office must first be organized and that rules
Division]. must first be is-
219 Id., at p. 748; p. 444.
220 Id. _______________
later enactment may relate to the same subject matter as that of an 148
earlier statute is not of itself sufficient to cause an implied repeal of
the latter, since the law may be cumulative or a continuation of the
148 SUPREME COURT REPORTS ANNOTATED
old one.221 (Emphasis supplied, citations omitted)
Department of Finance vs. Dela Cruz, Jr.
Similarly, this court should also uphold as much as sued by the Department of Finance Secretary before the
possible the validity of Customs Personnel Order No. B- Bureau of Customs can start forming its team that will
189-2013 as a valid exercise of executive power to conform augment and reinforce the organic personnel of the
to the Policies on Detail. Customs Policy Research Office. Courts should avoid as
„Every inten[t] of the law should lean towards its much as possible any construction invalidating
validity, not its invalidity.‰222 Hence, the duration of administrative issuances.225 Unless there is a clear
Customs Personnel Order No. B-189-2013, being violation of Executive Order No. 140, Customs Personnel
independent and severable from the order of detail itself, Order No. B-189-2013 should remain valid.
should be the only provision declared void. ACCORDINGLY, the Petition should be GRANTED.
Since there is no record that private respondents Private respondentsÊ Petition for declaratory relief filed
consented to be detailed for more than one (1) year from before the Regional Trial Court should be DISMISSED for
September 17, 2013, Customs Personnel Order No. B-189- lack of jurisdiction.
2013, while effective for the duration of one (1) year from
enactment, already ceased to take effect. Petition partially granted, validity of Executive Order
The ponencia ruled that Customs Personnel Order No. No. 140 sustained. Regional Trial Court has jurisdiction
B-189-2013 violates Section 3 of Executive Order No. 140 over action for declaratory relief filed by respondents.
because at the time of its issuance, the Customs Policy
Research Office had no organic personnel yet.223 The Notes.·A party who seeks the intervention of a court of
ponencia also ruled that the Department of Finance law upon an administrative concern should first avail
Secretary had not yet issued rules and regulations for the himself of all the remedies afforded by administrative
Customs Policy Research Office.224 processes. (Special People, Inc. Foundation vs. Canda, 688
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