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Department of Finance v. Dela Cruz

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SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22,

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.

DEPARTMENT OF FINANCE, represented by HON.


CESAR V. PURISIMA in his official capacity as
SECRETARY, and the BUREAU OF CUSTOMS,
74
represented by HON. ROZZANO RUFINO B. BIAZON, in
his official capacity as Commissioner of Customs,
petitioners, vs. HON. MARINO M. DELA CRUZ, JR., in his 74 SUPREME COURT REPORTS ANNOTATED
capacity as Executive Judge, Regional Trial Court, Manila, Department of Finance vs. Dela Cruz, Jr.
HON. FELICITAS O. LARON-CACANINDIN, in her
capacity as Presiding Judge, Regional Trial Court, Manila,
Branch 17, RONNIE C. SILVESTRE, EDWARD P. DELA assignment, demotion, and separation,‰ are within the
CUESTA, ROGEL C. GATCHALIAN, IMELDA D. CRUZ, exclusive jurisdiction of the CSC. This rule is embodied in Section 1,
LILIBETH S. SANDAG, RAYMOND P. VENTURA, MA. Rule V of the Omnibus Rules Implementing Book V of Executive
LIZA S. TORRES, ARNEL C. ALCARAZ, MA. LOURDES Order No. 292 and Other Pertinent Civil Service Laws (Omnibus
V. MANGAOANG, FRANCIS AGUSTIN Y. ERPE, Rules) which states: SECTION 1. x x x. As used in these Rules, any
CARLOS T. SO, MARIETTA D. ZAMORANOS, action denoting movement or progress of personnel in the civil
CARMELITA M. TALUSAN,1 AREFILES H. CARREON,2 service shall be known as personnel action. Such action shall
and ROMALINO G. VALDEZ, respondents. include promotion, transfer, reinstatement, reemployment, detail,
secondment, reassignment, demotion and separation.
Detail; Words and Phrases; Under Section 8, Rule VII of the
Administrative Agencies; Civil Service Commission;
Omnibus Rules, „[a] detail is the movement of an employee from one
Jurisdiction; The Civil Service Commission (CSC) has
department or agency which is temporary in nature, which does not
jurisdiction over all employees of government branches,
involve a reduction in rank, status or salary and does not require the
subdivisions, instrumentalities, and agencies, including
issuance of another appointment.‰·Under Section 8, Rule VII of the
government-owned or -controlled corporations with original
Omnibus Rules, „[a] detail is the movement of an employee from
charters.·The CSC has jurisdiction over all employees of
one department or agency which is temporary in nature, which does
government branches, subdivisions, instrumentalities, and
not involve a reduction in rank, status or salary and does not
agencies, including government-owned or controlled
require the issuance of another appointment.‰ CPO 189-2013 is an
corporations with original charters. The CSC is the sole
order detailing personnel from the BOC to CPRO under the DOF.
arbiter of controversies relating to the civil service. The
rule is that disciplinary cases and cases involving Remedial Law; Civil Procedure; Exhaustion of Administrative
personnel actions, including „appointment through Remedies; The doctrine of exhaustion of administrative remedies
certification, promotion, transfer, reinstatement, allows administrative agencies to carry out their functions and
reemployment, detail, re- discharge their responsibilities within the specialized areas of their

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SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM

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.

VOL. 768, AUGUST 24, 2015 75


Department of Finance vs. Dela Cruz, Jr.
76
the doctrine may cause great and irreparable damage; (8)
where the controverted acts violate due process; (9) where the issue
76 SUPREME COURT REPORTS ANNOTATED
of non-exhaustion of administrative remedies had been rendered
moot; (10) where there is no other plain, speedy and adequate Department of Finance vs. Dela Cruz, Jr.
remedy; (11) where strong public interest is involved; and (12) in
quo warranto proceedings. Same; Section 2 of Civil Service Commission (CSC) Resolution
Executive Order No. 140; Section 9 of Executive Order (EO) No. No. 021181, dated 13 September 2002, clarified the maximum period
140 provides that the „order shall take effect immediately upon of detail of employees; The detail shall be allowed only for a
publication in two (2) newspapers of general circulation.‰ EO No. maximum period of one (1) year. Details beyond one (1) year may be
140 was published in Manila Bulletin and Philippine Star on 17 allowed provided it is with the consent of the detailed employee.·
September 2013. As such, EO No. 140 took effect on 17 September Section 2 of CSC Resolution No. 021181, dated 13 September 2002,
2013.·Respondents allege that EO No. 140 took effect only on 2 clarified the maximum period of detail of employees. It states:
October 2013, fifteen days after its publication in two newspapers of Section 2. Duration of the detail.·The detail shall be allowed only
general circulation. Hence, respondents argue that when CPO 189- for a maximum period of one year. Details beyond one year may be

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SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM

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.

Department of Finance vs. Dela Cruz, Jr.

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SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM

78 determine a controversy involving a question which is within the


jurisdiction of an administrative tribunal prior to the decision of
that question by the administrative tribunal[.]‰ The doctrine of
78 SUPREME COURT REPORTS ANNOTATED
primary administrative jurisdiction presupposes that the
Department of Finance vs. Dela Cruz, Jr. administrative agency has jurisdiction over the subject matter
while the court does not. The Complaint or Petition,

Same; Same; Same; View that cases involving personnel actions


are within the exclusive jurisdiction of the Civil Service Commission
(CSC) and not within the trial courtsÊ jurisdiction.·Cases involving
personnel actions are within the exclusive jurisdiction of the Civil 79
Service Commission and not within the trial courtsÊ jurisdiction.
Same; Same; Same; Doctrine of Primary Administrative VOL. 768, AUGUST 24, 2015 79
Jurisdiction; View that the doctrine of primary administrative
Department of Finance vs. Dela Cruz, Jr.
jurisdiction precludes trial courts from resolving a controversy
involving a question that is within the exclusive jurisdiction of an
administrative tribunal.·The doctrine of primary administrative therefore, cannot be filed before the court. As the issue is
jurisdiction precludes trial courts from resolving a controversy jurisdictional, there should be no exception to the doctrine of
involving a question that is within the exclusive jurisdiction of an primary administrative jurisdiction. When the complaint or petition
administrative tribunal. The doctrine disallows courts „to arrogate is filed before a court with no subject matter jurisdiction, the court
unto itself the authority to resolve a controversy the jurisdiction has no other option but to dismiss the case.
over which is initially lodged with an administrative body of special
Same; Same; Same; Doctrine of Exhaustion of Administrative
competence.‰
Remedies; Under the doctrine of exhaustion of administrative
Same; Same; Same; Same; View that considering the exclusive remedies, before a party may seek intervention from the court, he or
jurisdiction of the Civil Service Commission (CSC) to hear and she should have already exhausted all the remedies in the
decide administrative cases, including those involving personnel administrative level; The doctrine of exhaustion of administrative
actions, as granted by the Constitution, the Regional Trial Court remedies presupposes that both the courts and the administrative
(RTC) cannot assume jurisdiction based on the doctrine of primary agency have concurrent jurisdiction.·Under the doctrine of
administrative jurisdiction.·Considering the exclusive jurisdiction exhaustion of administrative remedies, before a party may seek
of the Civil Service Commission to hear and decide administrative intervention from the court, he or she should have already
cases, including those involving personnel actions, as granted by exhausted all the remedies in the administrative level. If there is
the Constitution, the Regional Trial Court cannot assume still a remedy available within the administrative machinery, „then
jurisdiction based on the doctrine of primary administrative such remedy should be exhausted first before [the] courtÊs judicial
jurisdiction. power can be sought.‰ The doctrine of exhaustion of administrative
remedies presupposes that both the courts and the administrative
Same; Same; Same; Same; View that the doctrine of primary
agency have concurrent jurisdiction. This is because nonobservance
administrative jurisdiction presupposes that the administrative
of the doctrine of exhaustion of administrative remedies does not
agency has jurisdiction over the subject matter while the court does
affect the courtÊs jurisdiction.
not.·The doctrine of primary administrative jurisdiction is
different from the doctrine of exhaustion of administrative Same; Same; Same; Same; View that while both the court and
remedies. Under the doctrine of primary administrative the administrative agency have jurisdiction over the subject matter,
jurisdiction, when an administrative agency is granted primary the general rule is that the courts, because of comity, practicality,
jurisdiction over the subject matter, the courts „cannot or will not and convenience, will not interfere with the administrative process

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SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM

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.

Same; Same; Same; Doctrine of Primary Administrative


Jurisdiction; View that considering that the Civil Service 81
Commission (CSC) is granted exclusive jurisdiction over cases
involving personnel actions, the doctrine of primary administrative
VOL. 768, AUGUST 24, 2015 81
jurisdiction, not the doctrine of exhaustion of administrative
remedies, applies.·When jurisdiction is exclusively granted to an Department of Finance vs. Dela Cruz, Jr.
administrative agency, the doctrine of exhaustion of administrative
remedies does not apply. Here, considering that the Civil Service Remedial Law; Special Civil Actions; Declaratory Relief; View
Commission is granted exclusive jurisdiction over cases involving that a petition for declaratory relief may prosper only if there is no
personnel actions, the doctrine of primary administrative breach or violation yet of the assailed government regulation, and
jurisdiction, not the doctrine of exhaustion of administrative adequate relief is not available through other means or other forms
remedies, applies. of action or proceeding.·A petition for declaratory relief may
Same; Same; Same; Exhaustion of Administrative Remedies; prosper only if there is no breach or violation yet of the assailed
View that the exceptions to the doctrine of exhaustion of government regulation, and adequate relief is not available through
administrative remedies likewise do not apply because the Regional other means or other forms of action or proceeding. Rule 63, Section
Trial Court (RTC) has no jurisdiction to resolve the dispute in the 1 of the Rules of Court provides: SECTION 1. Who may file petition.
first place. In order for the exceptions to apply, the court to which the ·Any person interested under a deed, will, contract or other
petition was prematurely filed should have jurisdiction; otherwise, written instrument, or whose rights are affected by a statute,

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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

VOL. 768, AUGUST 24, 2015 83


82 SUPREME COURT REPORTS ANNOTATED
Department of Finance vs. Dela Cruz, Jr.
Department of Finance vs. Dela Cruz, Jr.

respondents in this case, to CPRO „effective immediately


nindin (Judge Laron-Cacanindin) of the Regional Trial
and valid until sooner revoked.‰ CPO 189-2013 was
Court of Manila, Branch 17 (RTC Branch 17), in Civil Case
approved by DOF Secretary Cesar V. Purisima (Secretary
No. 13-130820. The Order extended the 72-hour Temporary
Purisima).
Restraining Order (TRO) issued by Executive Judge
On 30 September 2013, respondents filed an action for

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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

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VOL. 768, AUGUST 24, 2015 85 6 Id.


7 Olanda v. Bugayong, 459 Phil. 626; 413 SCRA 255 (2003).
Department of Finance vs. Dela Cruz, Jr.

relating to the civil service.6 The rule is that disciplinary


cases and cases involving personnel actions, including
„appointment through certification, promotion, transfer, 86

reinstatement, reemployment, detail, reassignment,


demotion, and separation,‰ are within the exclusive 86 SUPREME COURT REPORTS ANNOTATED
jurisdiction of the CSC.7 This rule is embodied in Section 1,
Department of Finance vs. Dela Cruz, Jr.
Rule V of the Omnibus Rules Implementing Book V of
Executive Order No. 292 and Other Pertinent Civil Service
Laws (Omnibus Rules) which states: which CPO 189-2013 was issued, became effective.
Respondents alleged that CPO 189-2013 was issued to beat
SECTION 1. x x x. the deadline of the Commission on ElectionsÊ ban on
As used in these Rules, any action denoting movement or personnel movement from 28 September 2013 to 20
progress of personnel in the civil service shall be known as October 2013 due to the scheduled barangay elections.
personnel action. Such action shall include promotion, transfer, When respondents raised the issue of validity and
reinstatement, reemployment, detail, secondment, reassignment, constitutionality of CPO 189-2013, the issue took the case
demotion and separation. x x x. beyond the scope of the CSCÊs jurisdiction because the
matter is no longer limited to personnel action. Thus, the
RTC did not abuse its discretion in taking cognizance of the
Under Section 8, Rule VII of the Omnibus Rules, „[a] action.
detail is the movement of an employee from one
department or agency which is temporary in nature, which Failure to Exhaust Administrative Remedies
does not involve a reduction in rank, status or salary and
does not require the issuance of another appointment.‰ Petitioners allege that respondents failed to exhaust
CPO 189-2013 is an order detailing personnel from the their administrative remedies before filing the case with
BOC to CPRO under the DOF. the RTC.
A reading of the petition filed before the RTC shows that The doctrine of exhaustion of administrative remedies
respondents were questioning their mass detail and allows administrative agencies to carry out their functions
reassignment to CPRO. According to respondents, their and discharge their responsibilities within the specialized
detail was carried out in bad faith and was meant to areas of their respective competence.8 The doctrine entails
remove them from their permanent positions in the BOC. lesser expenses and provides for the speedier resolution of
The action appears to be a personnel action under the controversies.9 Therefore, direct recourse to the trial court,
jurisdiction of the CSC. when administrative remedies are available, is a ground
However, the petition went beyond questioning the for dismissal of the action.
detail of respondents. Respondents further assailed the The doctrine, however, is not without exceptions. Among
validity and constitutionality of CPO 189-2013. the exceptions are: (1) where there is estoppel on the part
Respondents alleged that CPO 189-2013 was issued even of the party invoking the doctrine; (2) where the challenged
before EO 140, pursuant to administrative act is patently illegal, amounting to lack of
jurisdiction; (3) where there is unreasonable delay or
_______________ official inaction that will irretrievably prejudice the

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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.

by the courts of justice; (6) where judicial intervention is


urgent; (7) where the application of the doctrine may cause
great and irreparable damage; (8) where the controverted 88
acts violate due process; (9) where the issue of non-
exhaustion of administrative remedies had been rendered
moot; (10) where there is no other plain, speedy and 88 SUPREME COURT REPORTS ANNOTATED
adequate remedy; (11) where strong public interest is Department of Finance vs. Dela Cruz, Jr.
involved; and (12) in quo warranto proceedings.10
In this case, respondents allege that CPO 189-2013 is
pletion of the lawÊs publication.12 Thus, it is within the
contrary to law and unconstitutional. Respondents assail
discretion of the legislature, or the Executive Department
CPO 189-2013 as patently illegal, arbitrary, and
in this case, whether to shorten or extend the fifteen-day
oppressive. This case clearly falls within the exceptions
period13 as long as there is compliance with the
where exhaustion of administrative remedies need not be
requirement of publication.
resorted to by respondents.
Here, Section 9 of EO 140 provides that the „order shall
take effect immediately upon publication in two (2)
Effectivity of EO 140
newspapers of general circulation.‰ EO 140 was published
in Manila Bulletin and Philippine Star on 17 September
Respondents allege that EO 140 took effect only on 2
2013. As such, EO 140 took effect on 17 September 2013.
October 2013, fifteen days after its publication in two
In addition, the Court already ruled that
newspapers of general circulation. Hence, respondents
„[i]nterpretative regulations and those merely internal in
argue that when CPO 189-2013 was issued, EO 140 was
nature, that is, regulating only the personnel of the
not yet effective.
administrative agency and not the public, need not be

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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.

_______________

15 Section 26(6), Chapter V, Book V, Title I of Executive Order No.


89 292 provides that the detail shall be allowed „only for a limited period in
the case of employees occupying professional, technical and scientific
positions.‰
VOL. 768, AUGUST 24, 2015 89
Department of Finance vs. Dela Cruz, Jr.

SECTION 3. Personnel and Staffing Complement.·The


90
CPRO shall be composed of its organic personnel, as approved
by the Department of Budget and Management (DBM) upon
recommendation of the DOF Secretary, augmented and 90 SUPREME COURT REPORTS ANNOTATED
reinforced by DOF and BOC personnel as well as those Department of Finance vs. Dela Cruz, Jr.
detailed or seconded from other agencies, whether attached to
the DOF or not. In addition, the CPRO, upon approval of the
Detail shall be allowed only for a maximum period in the
DOF Secretary, may hire or engage technical consultants to
case of employees occupying professional, technical and

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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.

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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.

Department of Finance vs. Dela Cruz, Jr.

Leonen, J., See Separate Dissenting Opinion.


93
DISSENTING OPINION
VOL. 768, AUGUST 24, 2015 93
LEONEN, J.:
Department of Finance vs. Dela Cruz, Jr.
Respectfully, I dissent.
The Civil Service Commission has exclusive jurisdiction On September 2, 2013, President Benigno Aquino III
over questions regarding personnel actions affecting civil issued Executive Order No. 1408 creating the Customs
service employees.1 It is the sole arbiter that decides Policy Research Office in the Department of Finance.9 The
controversies regarding the civil service at first instance.2 Customs Policy Research Office shall review the Bureau of
Courts should not directly assume jurisdiction based on CustomsÊ administration policies, rules, and procedures,
allegations of unconstitutionality and invalidity of and provide recommendations for their improvement.10
government regulations when the question, in essence, Section 3 of Executive Order No. 140 provides for the
involves a personnel action. composition of the Customs Policy Research Office:
This is a Petition for certiorari and prohibition with very
SECTION  3.  Personnel and Staffing Complement.·The
urgent prayer for the immediate issuance of a temporary
[Customs Policy Research Office] shall be composed of its organic
restraining order and/or writ of preliminary mandatory
personnel, as approved by the Department of Budget and
injunction3 filed by the Department of Finance and the
Management (DBM) upon recommendation of the [Department of
Bureau of Customs before this court, assailing the Manila
Finance] Secretary, augmented and reinforced by [Department of
Regional Trial CourtÊs Order4 dated October 1, 2013 issued
Finance] and [Bureau of Customs] personnel as well as those
by Executive Judge Marino M. Dela Cruz, Jr., the Order5
detailed or seconded from other agencies, whether attached to the
dated October 4, 2013 issued by Presiding Judge Felicitas
[Department of Finance] or not. In addition, the [Customs Policy
O. Laron-Cacanindin, and all other subsequent Orders
Research Office], upon approval of the [Department of Finance]
preventing the implementation of Customs Personnel
Secretary, may hire or engage technical consultants to provide
Order No. B-189-2013.6 The Department of Finance and
necessary support in the performance of its mandate.11
Bureau of Customs also pray for the dismissal of the
Petition for declaratory relief filed by private respondents
before the Regional Trial Court of Manila.7 Executive Order No. 140 was published on September
17, 2013 in Manila Bulletin and Philippine Star.12 Section 9
_______________ of Executive Order No. 140 provides:
1 Olanda v. Bugayong, 459 Phil. 626, 632; 413 SCRA 255, 260 (2003)
[Per J. Carpio-Morales, Third Division]. SECTION  9.  Effectivity.·This Order shall take effect

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immediately upon publication in two (2) newspapers of general of Finance:


circulation.13

On September 17, 2013, or on the same day of


publication of Executive Order No. 140, Bureau of Customs
Commis-

_______________

8 Id., at pp. 64-67.


9 Id., at p. 14.
10 Id., at p. 65; Exec. Order No. 140 (2013), Sec. 1.
11 Rollo, p. 66.
12 Id., at p. 14.
13 Id., at p. 67. _______________

14 Id., at pp. 69-70.


15 Id., at p. 14.
16 Id., at p. 69; BOC Customs Personnel Order No. B-189-2013, par.
94 1.

94 SUPREME COURT REPORTS ANNOTATED


Department of Finance vs. Dela Cruz, Jr.
95

sioner Rozzano Rufino B. Biazon issued Customs Personnel


Order No. B-189-2013,14 with the approval of Department VOL. 768, AUGUST 24, 2015 95
of Finance Secretary Cesar V. Purisima.15 Customs Department of Finance vs. Dela Cruz, Jr.
Personnel Order No. B-189-2013 detailed 27 Bureau of
Customs personnel to the Customs Policy Research Office
under the Department of Finance.16 Thus:

September 17, 2013


CUSTOMS PERSONNEL ORDER
No. B-189-2013

Under Section 3 of Executive Order No. 140, Series of 2013, the


Customs Policy Research Office („the CPRO‰) shall be composed of
its organic personnel, augmented and reinforced by personnel from
the Department of Finance and Bureau of Customs as well [as]
those detailed or seconded from other agencies. Pursuant to the
foregoing, the following personnel are detailed from the Bureau of
Customs to [Customs Policy Research Office] under the Department

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This Order shall be effective immediately and valid until sooner


revoked.
For strict compliance.
(signed)
ROZZANO RUFINO B. BIAZON
Commissioner of Customs

APPROVED:
(signed)
CESAR V. PURISIMA
Secretary
Department of Finance
Date: ________17

Only 1218 of the affected employees complied with the


directive in Customs Personnel Order No. B-189-2013 and
reported to the Customs Policy Research Office after its
effectivity on September 17, 2014.19
The other 1520 affected employees refused to comply
with the Order21 and instead filed on September 30, 2013 a
Petition22 for declaratory relief with an application for a
temporary restraining order and/or a writ of preliminary
injunction before the Regional Trial Court of Manila.23
The 15 employees assailed the validity of Customs
Personnel Order No. B-189-2013.24 They argued that
Customs Per-

_______________

17 Rollo, pp. 69-70.


All orders, circulars, memoranda, issuances contrary to
18 Id., at p. 71. 12 out of the 27 affected employees did not file for a
or inconsistent herewith are hereby revoked and/or
Petition for declaratory relief.
modified, and all concerned shall be guided accordingly.
19 Id., at p. 400.
20 Id., at p. 71.
21 Id., at p. 400.
96 22 Id., at pp. 71-93. The Petition was docketed as Civil Case No. 13-
130820.
23 Id., at p. 15.
96 SUPREME COURT REPORTS ANNOTATED
24 Id., at p. 72.
Department of Finance vs. Dela Cruz, Jr.

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positions in scientific or research institutions which shall establish


and maintain their own merit systems;
97 (3) Positions in the Career Executive Service; namely,
Undersecretary, Assistant Secretary, Bureau Director, Assistant
VOL. 768, AUGUST 24, 2015 97 Bureau Director, Regional Director, Assistant

Department of Finance vs. Dela Cruz, Jr.

sonnel Order No. B-189-2013 violated (a) Section 70325 of


98
Republic Act No. 1937 or the Tariff and Customs Code;26 (b)
their right to security of tenure as career service officers
defined under Book V, Title I, Subtitle A, Chapter 2, 98 SUPREME COURT REPORTS ANNOTATED
Section 7 of Executive Order No. 292;27 and (c) Section 3 of
Department of Finance vs. Dela Cruz, Jr.
Executive Order

No. 140.28 They further argued that Customs Personnel


_______________
Order No. B-189-2013 was invalid for having been issued
25 Rep. Act No. 1937 (1957), Sec. 703, as amended, provides: prior to the effectivity of Executive Order No. 140.29 They
SECTION 703. Assignment of Customs Officers and Employees to relied on Article 230 of the Civil Code that provides that
Other Duties.·The Commissioner of Customs may, with the approval of laws become effective 15 days after complete publication.31
the Secretary of Finance, assign any employee of the Bureau of Customs On October 1, 2013, Executive Judge Marino M. Dela
to any port, service, division or office within the Bureau or assign him Cruz, Jr. granted a 72-hour temporary restraining order to
duties as the best interest of the service may require, in accordance with stop the implementation of Customs Personnel Order No.
the staffing pattern or organizational set up as may be prescribed by the B-189-2013.32 The case was then raffled to Branch 17
Commissioner of Customs with the approval of the Secretary of Finance: presided by Judge Felicitas O. Laron-Cacanindin (Judge
Provided, That such assignment shall not affect the tenure of office of the Laron-Cacanindin).33
employees nor result in the change of status, demotion in rank and/or
deduction in salary. (Emphasis supplied) _______________
26 Rollo, pp. 76-77.
Regional Director, Chief of Department Service and other officers
27 Id., at p. 77; Exec. Order No. 292 (1987), Book V, Title I, SubTitle
of equivalent rank as may be identified by the Career Executive
A, Chap. 2, Sec. 7 provides:
Service Board, all of whom are appointed by the President;
SECTION 7. Career Service.·The Career Service shall be
(4) Career officers, other than those in the Career Executive
characterized by (1) entrance based on merit and fitness to be
Service, who are appointed by the President, such as the Foreign
determined as far as practicable by competitive examination, or based on
Service Officers in the Department of Foreign Affairs;
highly technical qualifications; (2) opportunity for advancement to higher
(5) Commissioned officers and enlisted men of the Armed
career positions; and (3) security of tenure.
Forces which shall maintain a separate merit system;
The Career Service shall include:
(6) Personnel of government-owned or -controlled corporations,
whether performing governmental or proprietary functions, who
(1) Open Career positions for appointment to which prior
do not fall under the noncareer service; and
qualification in an appropriate examination is required;
(7) Permanent laborers, whether skilled, semi-skilled, or
(2) Closed Career positions which are scientific, or highly
unskilled.
technical in nature; these include the faculty and academic staff of
28 Rollo, pp. 80-81.
state colleges and universities, and scientific and technical

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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.

On October 4, 2013,34 the Department of Finance and


the Bureau of Customs filed a Motion to Dismiss.35 They 100
argued that the Regional Trial Court had no jurisdiction
over the employeesÊ Petition for declaratory relief and that 100 SUPREME COURT REPORTS ANNOTATED
the requisites for the filing of a Petition for declaratory
relief were lacking.36 Department of Finance vs. Dela Cruz, Jr.
In the Order dated October 4, 2013, Judge Laron-Caca-
nindin extended the temporary restraining order to 20 days This court required the 15 employees to file a Comment
after finding that Customs Personnel Order No. B-189- on the Petition.44 After filing the Comment,45 the
2013 had „violate[d] the rules on detail because it failed to Department of Finance and Bureau of Customs were
provide the duration of the detail.‰37 In the same Order, ordered to file a Reply.46
Judge Laron-Cacanindin stated that the Order was without In their Petition for certiorari, the Department of
prejudice to further findings of the court after trial on the Finance and Bureau of Customs argued that the Civil
merits of the main case for declaratory relief.38 Service Commission, not the Regional Trial Court, had
In the Order39 dated October 21, 2013, Judge Laron- jurisdiction over the subject matter of this case and that
Cacanindin denied the employeesÊ application for a writ of the 15 employees failed to exhaust all available
preliminary injunction.40 The denial of their application for administrative remedies before filing their Petition for
a writ of preliminary injunction prompted six (6) of the declaratory relief.47 According to the Department of
employees who filed the Petition to report to the Customs Finance and Bureau of Customs, Customs Personnel Order
Policy Research Office.41 The returning employees reasoned No. B-189-2013 was a personnel action, and questions
that they reported for work so they would not be charged involving personnel actions in the civil service should be
with insubordination.42 lodged before the Civil Service Commission.48
On October 21, 2013, the Department of Finance and Further, the Department of Finance and Bureau of

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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.

VOL. 768, AUGUST 24, 2015 101


Department of Finance vs. Dela Cruz, Jr.
102
on September 17, 2013.53 Third, a declaratory relief was
not available to the 15 employees because they had an 102 SUPREME COURT REPORTS ANNOTATED
adequate remedy with the Civil Service Commission.54
Regarding the duration of the detail, the Department of Department of Finance vs. Dela Cruz, Jr.
Finance and Bureau of Customs argued that the detail was
not indefinite and that pursuant to Civil Service The 15 employees argue that all the requisites for the
Commission Resolution No. 02118155 or the Policies on filing of a Petition for declaratory relief are present.63 They

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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

VOL. 768, AUGUST 24, 2015 103 104

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104 SUPREME COURT REPORTS ANNOTATED 105

Department of Finance vs. Dela Cruz, Jr.


VOL. 768, AUGUST 24, 2015 105
As the „central personnel agency of the Government,‰68 Department of Finance vs. Dela Cruz, Jr.
Book V, Title I, Subtitle A, Chapter 3, Section 12(11) of
Executive Order No. 292 or the Administrative Code of
SECTION 5. Jurisdiction of the Civil Service Commission Proper.70
1987 provides:
·The Civil Service Commission Proper shall have jurisdiction over
the following cases:
SECTION 12. Powers and Functions.·The [Civil Service]
....
Commission shall have the following powers and functions:
B. Non-Disciplinary
....
....
(11) Hear and decide administrative cases instituted by
3. Protests against the appointment, or other personnel
or brought before it directly or on appeal, including
actions, involving third level officials;71 and
contested appointments, and review decisions and
....
actions of its offices and of the agencies attached to it.
SECTION 6. Jurisdiction of Civil Service Regional Offices.·The
Officials and employees who fail to comply with such
Civil Service Commission Regional Offices shall have jurisdiction
decisions, orders, or rulings shall be liable for
over the following cases:
contempt of the Commission. Its decisions, orders, or
....
rulings shall be final and executory. Such decisions,
B. Non-Disciplinary
orders, or rulings may be brought to the Supreme
....
Court on certiorari by the aggrieved party within
3. Decisions of national agencies and local government
thirty (30) days from receipt of a copy thereof[.]
units within their geographical boundaries relative to
(Emphasis supplied)
personnel actions and non-disciplinary cases brought before it
on appeal; and
Further, for the implementation of Book V, Title I, ....
Subtitle A, Chapter 3, Section 12(11) of Executive Order
No. 292,69 Sections 5(B)(3), 6(B)(3), and 7(B)(2) of Civil _______________
Service Commission Memorandum Circular No. 19-99 or
the Revised Uniform Rules on Administrative Cases in the 70 CSC Memorandum Circular No. 19-99 (1999), Rule I, Sec. 2(c)
Civil Service lay down the different offices of the civil provides:
service where complaints involving personnel actions SECTION 2. Coverage and Definition of Terms.·. . .
should be filed. Hence: c. COMMISSION PROPER refers to the Civil Service Commission-
Central Office.
71 CSC Memorandum Circular No. 19-99 (1999), Rule I, Sec. 2(o)
_______________
provides:
68 Const., Art. IX(B), Sec. 3. SECTION 2. Coverage and Definition of Terms.· . . .
69 CSC Memorandum Circular No. 19-99 (1999), second Whereas o. THIRD LEVEL refers to positions in the Career Executive Service
clause. (CES) which include Undersecretary, Assistant Secretary, Bureau
Director, Regional Director, Assistant Regional Director and other
officers of equivalent rank.

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[Per J. Quisumbing, Second Division].


77 Mantala v. Salvador, G.R. No. 101646, February 13, 1992, 206
106 SCRA 264, 267 [Per CJ. Narvasa, En Banc].
78 Department of Agrarian Reform v. Cuenca, 482 Phil. 208, 216; 439
106 SUPREME COURT REPORTS ANNOTATED SCRA 15, 22 (2004) [Per J. Panganiban, Third Division].

Department of Finance vs. Dela Cruz, Jr.

SECTION 7. Jurisdiction of Heads of Agencies.·Heads of


107
Departments, agencies, provinces, cities, municipalities and other
instrumentalities shall have original concurrent jurisdiction, with
the Commission,72 over their respective officers and employees. VOL. 768, AUGUST 24, 2015 107
....
Department of Finance vs. Dela Cruz, Jr.
B. Non-Disciplinary
....
8. On 17 September 2013, without waiting for [Executive Order]
2. Complaints on personnel actions and other non-
No. 140Ês effectivity on 2 October 2013, the [Bureau of Customs]
disciplinary actions of their respective personnel. (Emphasis
issued [Customs Personnel Order] No. B-189-2013, signed by
supplied)
[Bureau of Customs] Commissioner Rozzano Rufino B. Biazon and
approved by [Department of Finance] Secretary, Cesar V. Purisima
As the „central personnel agency of the Government‰73 on even date. [Customs Personnel Order] No. B-189-2013 states:
with quasi-judicial powers74 and as the body tasked to Under Section 3 of Executive Order No.
administer the civil service,75 the Civil Service Commission 140, Series of 2013, the Customs Policy
is the „sole arbiter of controversies relating to the civil Research Office (the „CPRO‰) shall be
composed of its organic personnel,
service[,]‰76 including personnel actions, as this court has augmented and reinforced by personnel
ruled.77 from the Department of Finance and
The material allegations in the Complaint or Petition Bureau of Customs as well as those (sic)
detailed or seconded from other agencies.
and the character of the relief sought determine which Pursuant to the foregoing, the following
court has jurisdiction.78 In private respondentsÊ 44 personnel are detailed from the Bureau of
paragraphs in their Petition for declaratory relief filed Customs to [the Customs Policy Research
Office] under the Department of Finance:
before the Regional Trial Court, they alleged: ....

_______________
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.‰

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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.

11. While they have not been officially notified thereof, [private


cause for removal exists when, pursuant to
respondents] were reliably informed of the issuance of [Customs
a bona fide reorganization, a position has
Personnel Order] No. B-189-2013 and [petitionersÊ] attempt to been abolished or rendered redundant or
unlawfully „detail‰ them to the [Customs Policy Research Office]. there is a need to merge, divide, or
consolidate positions in order to meet the
....
exigencies of the service, or other lawful
13. While the [Bureau of Customs] CommissionerÊs authority to causes allowed by the Civil Service Law.
reorganize is recognized, it is neither absolute nor unbridled. The
16. Thus, while the necessity and indispensability of
exercise thereof should not violate the law and the 1987
reorganization when public interest demands may be justified, civil
Constitution. The Constitution clearly mandates that „no officer or
service employees, much more career service officers with
employee of the civil service shall be removed or suspended except
permanent appointments like [private respondents], cannot be
for cause provided by law.‰
removed, suspended, or demoted from office except for cause
14. Section 703 of [Republic Act] No. 1937, as amended, provides
provided by law.
that:
....
Assignment of Customs Officers and 18. In this case, [Customs Personnel Order] No. B-189-2013
Employees to other duties.·The
allegedly „detailed‰ all 15 [private respondents], together with 12
Commissioner of Customs may, with the
approval of the Secretary of Finance, assign other Collectors of Customs, to an advisory capacity of a policy
any employee of the Bureau of Customs to coordinating body (CPRO) under the guise of reorganization, thus
any port, service, division or office within
effectively rendering vacant the 27 positions of collector of customs
the Bureau or assign him duties as the best
interest of the service may require, in throughout the country.
accordance with the staffing pattern or 19. Section 8, Rule VII of Civil Service Commission (CSC)
organizational setup as may be prescribed
Resolution No. 91-1631, otherwise known as the „Omnibus Civil
by the Commissioner of Customs with the
approval of the Secretary of Finance: Service Rules and Regulations,‰ provides that a „detail‰ is „the
Provided, that such assignment shall not movement of an employee from one department or agency to another
affect the tenure of office of the employees
which is temporary in nature, which does not involve a reduction in
nor result in the change of status, demotion
in rank and/or deduction of salary. rank, status or salary and does not require the issuance of another
appointment.‰
15. Section 2 of [Republic Act] No. 6656 [or An Act to Protect the

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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.

Department of Finance vs. Dela Cruz, Jr.


Reorganizations in this jurisdiction have
been regarded as valid provided they are
lid. In fact, the [Bureau of Customs] CommissionerÊs own admission pursued in good faith. . . .
....
proves this ultra vires and invalid issuance, thus:
24. By no stretch of the imagination can the issuance of
„It is more than a reshuffle because
[private respondents] have actually been [Customs Personnel Order] No. B-189-2013 be said to have been
transferred to the [Department of Finance], carried out in good faith. The undue haste in issuing [Customs
out of the Bureau of Customs,‰ Biazon said Personnel Order] No. B-1892013 clearly shows that respondents are
in an ANC interview, confirming news first
reported by the Philippine Daily Inquirer. attempting to beat the deadline on the COMELEC election ban on
„Instead of just reassignment [to] another personnel movement from 28 September 2013 to 28 October 2013
port, theyÊre basically reassigned to another due to the forthcoming Barangay Elections. It cannot be denied that
office.‰
„After their transfer out of the [Bureau [Executive Order] No. 140, which was signed by the President on 2
of Customs], the next-in-rank collectors or September 2013, has yet to take effect on 2 October 2013, which is
division heads are taking over as officers-in- 15 days after its publication in two (2) newspapers of general
charge of the different ports,‰ he said.
circulation. On 17 September 2013, however, the [Bureau of
Customs] already issued [Customs Personnel Order] No. B-189-
21. There is no bona fide reorganization that took place. [Private 2013, which is based on [Executive Order] No. 140, and attempted
respondentsÊ] mass „detail‰ to the [Customs Policy Research Office] to serve copies thereof to [respondents] on 26 to 27 September 2013
was without any clear or definite direction as to their career status supposedly just in time before the COMELEC election ban on
and functions. As a consequence, [private respondents] were personnel movement takes effect on 28 September 2013.
intentionally and effectively placed on a „floating status.‰ 25. More importantly, [Executive Order] No. 140 mandates that
22. Furthermore, [Executive Order] No. 140 clearly provides that the transfer of [Bureau of Customs] personnel should merely
the [Customs Policy Research Office] shall be composed of its augment or reinforce the organic personnel of the [Customs Policy
organic personnel, and that said policy research body · after the Research Office]. Obviously, without any organic personnel, there is
organization of its own organic personnel · shall merely be still nothing to augment or reinforce. . . . Hence, [private

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respondentsÊ] „detail‰ to the [Customs Policy Research Office] ....


absent any compliance with the requirements under [Executive 30. In the case of Pastor v. City of Pasig, the Supreme Court held
Order] No. 140, was surely carried out in bad faith, and was meant that a reassignment or even detail which is indefinite and which
to illegally remove [private respondents] from their respective results in a reduction of rank and status is effectively a
permanent positions, in blatant violation of the law and the constructive dismissal from the service. . . .
Constitution. ....
26. It should also be stressed that [private respondents] were 31. The principles on constructive dismissal clearly find
appointed as Collectors of Customs with Position Titles VI and V, analogous application to [private respondents]. By definition,
with specific functions, duties, titles, and ranks clearly provided for constructive dismissal is a quitting because continued employment
in their respective appointment papers. In contrast, their supposed is rendered impossible, unreasonable or unlikely; when there is a
„detail‰ to demotion in rank or a

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.

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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

114 SUPREME COURT REPORTS ANNOTATED 115

Department of Finance vs. Dela Cruz, Jr.


VOL. 768, AUGUST 24, 2015 115
37. An unconstitutional act is not a law; it confers no Department of Finance vs. Dela Cruz, Jr.
rights; it imposes no duties; it affords no protection; it
creates no office; it is, in legal contemplation, inoperative, blatantly premature and without
as if it had not been passed. . . . For these reasons, legal basis;
[Customs Personnel Order] No. B-189-2013 should be (b) [Customs Personnel Order] No. B-
189-2013 violates [Executive
nullified and set aside, and its enforcement enjoined. Order] No. 140, as the latter
38. . . . The consequence [of implementing Customs mandates that the [Department of
Personnel Order No. B-189-2013] that is also readily Finance], with the approval of the
obvious is the chaos entailed in port operations, the [Department of Budget and
collection of much needed Government revenues and public Management], has to recommend
the composition of the organic
service as [private respondents] perform functions either as
personnel of the [Customs Policy
District Collectors of all the 17 Collection Districts in the Research Office]. No such
country, or as Deputy Collectors for administration, recommendation by the
assessment and operation in those different ports. [Department of Finance], much
.... less the approval of the
41. It cannot be overemphasized that the issuance of [Department of Budget and
Management], has been made. In
[Customs Personnel Order] No. B-189-2013 is illegal, and
fact, [Executive Order] No. 140
blatantly violates existing law and the Constitution. As provides that the transfer of
above mentioned, respondents intend to have [Customs [Bureau of Customs] personnel
Personnel Order] No. B-189-2013 immediately effective. should merely augment or

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reinforce the organic personnel of constructively dismiss and demote


the [Customs Policy Research [private respondents]. [Customs
Office]. Obviously, without any Personnel Order] No. B-189-2013
organic personnel, there is still operates as a blanket and forced
nothing to augment or reinforce. relinquishment of [private
The [Customs Policy Research respondentsÊ] permanent positions
Office] is thus in limbo, as there is as Collectors of Customs in
yet no organic personnel in place; violation of their constitutional
(c) [Customs Personnel Order] No. B- right to security of tenure.
189-2013 is also contrary to [Private respondents] are all
Section 703 of [Republic Act] No. „detailed‰ to the [Customs Policy
1937, as amended, which provides Research Office] without any
that „(t)he Commissioner of appointment papers providing for
Customs may, with the approval of their specific functions, status,
the Secretary of Finance, assign salary grades, ranks, and
any employee of the Bureau of designation, thereby intentionally
Customs to any port, service, and effectively placing them on
division or office within the „floating status‰; and
Bureau or assign him duties as (e) [Private respondents] would be
the best interest of the service unduly displaced from their
may require.‰ Even Commissioner permanent positions with the
Biazon, in an interview with [the appointment and/or designation
ABS-CBN News Channel] by the [Bureau of Customs] of new
admitted that „it is more than a Collectors of Customs.79
reshuffle because they have (Emphasis supplied, citations
actually been transferred to the omitted)
[Department of Finance], out of
the Bureau of Customs.‰ The
Commissioner of Customs thus An examination of the text of the Petition for declaratory
committed an illegal and ultra relief readily shows that private respondents originally
vires act in „detailing‰ [private
respondents] to the [Customs
questioned a personnel action. They essentially questioned
Policy their detail to the Customs Policy and Research Office.
Book V, Title I, Subtitle A, Chapter 5, Section 26 of
Executive Order No. 292 defines a personnel action:

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.

Research Office], an office


admittedly outside the [Bureau of
Customs]; 117
(d) [private respondentsÊ] „detail‰ to
the [Customs Policy Research
Office] is [petitionersÊ] scheme to VOL. 768, AUGUST 24, 2015 117

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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].

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89 Id., at p. 563; p. 173. 94 Id.


90 Id., at pp. 565-566; p. 176. 95 G.R. No. 101646, February 13, 1992, 206 SCRA 264 [Per CJ.
91 Id., at p. 566; id. Narvasa, En Banc].
96 Id., at p. 265.
97 Id.
98 Id., at p. 266.
99 Id.
100 Id.
119
101 Id.
102 Id., at p. 267.
VOL. 768, AUGUST 24, 2015 119 103 Id., at p. 269.
Department of Finance vs. Dela Cruz, Jr.

Casimina filed an Omnibus Motion to dismiss the


Complaint on the ground of, among others, lack of 120
jurisdiction.92 This court ruled that the trial court has no
jurisdiction over the Petition.93 „[T]his case falls within the 120 SUPREME COURT REPORTS ANNOTATED
jurisdiction of the Civil Service Commission (CSC) because
it involves the movement of government personnel to Department of Finance vs. Dela Cruz, Jr.
promote order and efficiency in public service.‰94
In Mantala v. Salvador,95 Dr. Julia P. Regino (Regino) Disciplinary cases, and cases involving „personnel actions‰
filed a formal protest before the Committee on Evaluation affecting employees in the civil service · including „appointment
and Protest of the Department of Health questioning the through certification, promotion, transfer, reinstatement,
appointment of Dr. Mariquita J. Mantala (Dr. Mantala).96 reemployment, detail, reassignment, demotion and separation,‰ and,
The Committee on Evaluation and Protest upheld Dr. of course, employment status and qualification standards · are
MantalaÊs appointment.97 Upon appeal and within the exclusive jurisdiction of the Civil Service Commission.
reconsideration, the Civil Service Commission also upheld The Constitution declares the Commission to be „the central
Dr. MantalaÊs appointment.98 The Resolution of the Civil personnel agency of the Government,‰ having power and authority
Service Commission became final and executory.99 Regino to administer the civil service; to promulgate its own rules
then filed an action for quo warranto and mandamus concerning pleadings and practice before it or before any of its
before the Regional Trial Court in Quezon City.100 The trial offices; and to render decision in „any case or matter brought before
court annulled and set aside Dr. MantalaÊs appointment it within sixty days from the date of its submission for decision or
and directed the Secretary of Health to withdraw Dr. resolution,‰ which decision, or order or ruling „may be brought to
MantalaÊs appointment and to issue another for Regino.101 the Supreme Court on certiorari by the aggrieved party within
Dr. Mantala then filed a Petition for Review on certiorari thirty days from receipt of a copy thereof.‰
before this court.102 This court granted the Petition and ....
annulled the Decision of the trial court:103 It was thus error, because beyond its competence, for the
respondent Trial Court to take cognizance of the quo warranto and
_______________ mandamus action instituted by Dr. Regino which was in essence a
protest against the appointment of Dr. Mantala.104 (Emphasis
92 Id. supplied, citations omitted)
93 Id., at p. 570; p. 180.

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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.

unto itself the authority to resolve a controversy the


jurisdiction over which is initially lodged with an
122
administrative body of special competence.‰106
In Pambujan Sur United Mine Workers v. Samar Mining
Company, Inc.,107 the plaintiff Pambujan Sur United Mine 122 SUPREME COURT REPORTS ANNOTATED
Workers filed a Complaint before the Court of First
Department of Finance vs. Dela Cruz, Jr.
Instance (now Regional Trial Court) against the Samar
Mining Company, Inc. (Samar Mining) alleging breach of
their closed-shop agreement.108 Samar Mining filed a dies and the „doctrine of primary administrative jurisdiction,‰
Motion to Dismiss arguing that the regular courts had no sense-making and expedient,
jurisdiction over the subject matter of the Complaint.109 „That the courts cannot or will not
Samar Mining argued that the Court of Industrial determine a controversy involving a
Relations (now National Labor Relations Commission) had question which is within the jurisdiction of
an administrative tribunal prior to the
jurisdiction over cases involving conditions of decision of that question by the
employment.110 The Court of First Instance granted the administrative tribunal, where the question

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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.

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124 the decision of the Civil Service Regional Office dismissing a


complaint for lack of a prima facie case before the Commission
Proper through a Petition for Review within fifteen (15) days from
124 SUPREME COURT REPORTS ANNOTATED
the receipt of said decision.
Department of Finance vs. Dela Cruz, Jr. 133 Supra note 106 at p. 567.

5(A)(1),130 43,131 and 49132 of the Civil Service Commission


Uniform Rules on Administrative Cases.133
125
_______________

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.

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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.

where exhaustion of administrative remedies need not be resorted


to by respondents.137 127

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

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nonobservance of the doctrine of exhaustion of Hence, the doctrine of exhaustion of administrative


administrative remedies does not affect the courtÊs remedies presupposes that the court has jurisdiction over
jurisdiction.145 In Soto v. Jareno,146 this court ruled: the subject matter of the complaint or petition. Otherwise,
Failure to observe the doctrine of exhaustion of it can never have the power to take cognizance of the case
administrative remedies does not affect the jurisdiction of as contemplated by Soto.
the court. We have repeatedly stressed this in a long line of While both the court and the administrative agency
decisions. The only effect of noncompliance with this rule is have jurisdiction over the subject matter, the general rule
that it will deprive the complainant of a cause of action, is that the courts, because of comity, practicality, and
which is a ground for a motion to dismiss. If not invoked at convenience, will not interfere with the administrative
the proper time, this ground is deemed waived and the court process until the process comes to an end.148 This is
can then take cognizance of the case and try it.147 (Emphasis because availing administrative remedies entails lesser
supplied) expenses and results in a speedier resolution of
controversies.149 On the other hand, since the court and the
_______________ administrative agency have concurrent jurisdiction,
exceptions may be warranted by the circumstances,150 and
142 See Katon v. Palanca, Jr., 481 Phil. 168, 183; 437 SCRA 565, 575 the court may choose to assume jurisdiction over the
(2004) [Per J. Panganiban, Third Division]. controversy.
143 Rosales v. Court of Appeals, 247-A Phil. 437, 443-444; 165 SCRA
344, 350 (1988) [Per J. Bidin, Third Division].
_______________
144 Paat v. Court of Appeals, 334 Phil. 146, 152; 266 SCRA 167, 175
(1997) [Per J. Torres, Jr., Second Division]. 148 Supra note 144 at p. 153; p. 176.
145 Soto v. Jareno, 228 Phil. 117, 119; 144 SCRA 116, 119 (1986) [Per 149 Id.
J. Cruz, First Division]. 150 Id. This court held: „However, we are not amiss to reiterate that
146 Id. the principle of exhaustion of administrative remedies as tested by a
147 Id., at p. 119; p. 119, citing C.N. Hodges v. Municipal Board of battery of cases is not an ironclad rule. This doctrine is a relative one and
Iloilo City, 125 Phil. 442, 447-448; 19 SCRA 28, 33-34 (1967) its flexibility is called upon by the peculiarity and uniqueness of the
[Per J. Ruiz Castro, En Banc], Municipality of La Trinidad, Benguet v. factual and circumstantial settings of a case. Hence, it is disregarded (1)
Court of First Instance of Baguio-Benguet, 208 Phil. 78, 83; 123 SCRA 81, when there is a violation of due process, (2) when the issue involved is
86 (1983) [Per J. Escolin, Second Division], Pineda v. Court of First purely a legal question, (3) when the administrative action is patently
Instance of Davao, 111 Phil. 643, 650; 1 SCRA 1020, 1026-1027 (1961) illegal amounting to lack or excess of jurisdiction, (4) when there is
[Per J. Concepcion, En Banc], and Atlas Consolidated Mining and estoppel on the part of the administrative agency concerned, (5) when
Development Corporation v. Mendoza, 112 Phil. 960, 965; 2 SCRA 1064, there is irreparable injury, (6) when the respondent is a department
1069 (1961) [Per J. Concepcion, En Banc]. secretary whose acts as an alter ego of the President bears the implied
and assumed approval of the latter, (7) when to require exhaustion of
administrative remedies

128

128 SUPREME COURT REPORTS ANNOTATED


129
Department of Finance vs. Dela Cruz, Jr.

VOL. 768, AUGUST 24, 2015 129

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Department of Finance vs. Dela Cruz, Jr.

Hence, when jurisdiction is exclusively granted to an 130


administrative agency, the doctrine of exhaustion of
administrative remedies does not apply. Here, considering
that the Civil Service Commission is granted exclusive 130 SUPREME COURT REPORTS ANNOTATED
jurisdiction over cases involving personnel actions, the Department of Finance vs. Dela Cruz, Jr.
doctrine of primary administrative jurisdiction, not the
doctrine of exhaustion of administrative remedies, applies. of vendors of the New Muntinlupa Public Market.152 There
The exceptions to the doctrine of exhaustion of is no personnel action involved in KBMBPM. Hence,
administrative remedies likewise do not apply because the private respondentsÊ reliance on the case is misplaced.
Regional Trial Court has no jurisdiction to resolve the The ponencia held that „[w]hen respondents raised the
dispute in the first place. In order for the exceptions to issue of validity and constitutionality of [Customs
apply, the court to which the petition was prematurely filed Personnel Order No. B-189-2013], the issue took the case
should have jurisdiction; otherwise, the orders of the court beyond the scope of the [Civil Service CommissionÊs]
would be null and void for lack of jurisdiction. Decisions or jurisdiction because the matter is no longer limited to
orders rendered by tribunals and agencies that do not have personnel action. Thus, the [Regional Trial Court] did not
subject matter jurisdiction are null and void.151 Hence, the abuse its discretion in taking cognizance of the action.‰153
exceptions to the doctrine of exhaustion of administrative The constitutional issues alleged in the Petition for
remedies should not be applicable since the Regional Trial declaratory relief do not suffice for the Regional Trial Court
Court, the court to which the Petition for declaratory relief to assume jurisdiction.
was filed, lacks subject matter jurisdiction, and any order The Civil Service Commission cannot be ousted from its
or decision rendered by it would be null and void. jurisdiction „by the simple expediency of appending an
allegedly constitutional or legal dimension to an issue‰154
Kilusang Bayan sa Paglilingkod ng mga Magtitinda ng that clearly involves a personnel action.155
Bagong Pamilihang Bayan ng Muntinlupa, Inc. In Corsiga v. Judge Defensor,156 petitioner Eduardo
(KBMBPM) cited by private respondents finds no Corsiga (Corsiga), „then Regional Irrigation Manager of the
application here. In KBMBPM, petitioners questioned the [National Irrigation Administration], Region VI, issued
takeover by the Department of Agriculture of the Regional Office Memorandum (ROM) No. 52, reassigning
management of petitioner KBMBPM, a service cooperative private respondent [Romeo Ortizo (Ortizo)] to [the]
organized by and composed Aganan-Sta. Barbara River Irrigation System[.]‰157 Ortizo
filed before the „Regional Trial Court of Iloilo City a
_______________ complaint for prohibition and injunction, with prayer for
issuance of [a] Temporary Restraining Order
would be unreasonable, (8) when it would amount to a nullification of a
claim, (9) when the subject matter is a private land in land case
_______________
proceedings, (10) when the rule does not provide a plain, speedy and
adequate remedy, and (11) when there are circumstances indicating the 152 Kilusang Bayan sa Paglilingkod ng mga Magtitinda ng Bagong
urgency of judicial intervention.‰ (Citations omitted) Pamilihang Bayan ng Muntinlupa, Inc. (KBMBPM) v. Dominguez, supra
151 Atuel v. Valdez, 451 Phil. 631, 646; 403 SCRA 517, 529 (2003) [Per note 138 at pp. 95-96.
J. Carpio, First Division]. 153 Ponencia, p. 86.
154 Department of Agrarian Reform v. Trinidad Valley Realty &

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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. _______________

158 Id., at p. 880; pp. 269-270.


159 Id., at p. 882; p. 272.
160 Id., at p. 881; p. 270.
131
161 Id., at pp. 883-884; pp. 273-274.
162 Id.
VOL. 768, AUGUST 24, 2015 131
Department of Finance vs. Dela Cruz, Jr.

and/or Writ of Preliminary Injunction.‰158 He argued that 132


the transfer or assignment without his consent is a
violation of his constitutional right to security of tenure.159 132 SUPREME COURT REPORTS ANNOTATED
Corsiga moved to dismiss the Petition for lack of
jurisdiction.160 Department of Finance vs. Dela Cruz, Jr.
This court ruled that the Regional Trial Court had no
jurisdiction over OrtizoÊs Complaint.161 Hence: Development Corporation and the other respondents
It is the intent of the Civil Service Law, in requiring the (Trinidad Valley Realty & Development Corporation, et al.)
establishment of a grievance procedure in Rule XII, Section are registered owners of a parcel of land in Negros
6 of the same rules, that decisions of lower level officials be Oriental.164 The Department of Agrarian Reform placed a
appealed to the agency head, then to the Civil Service substantial portion of the land under the coverage of the
Commission. Decisions of the Civil Service Commission, in Comprehensive Agrarian Reform Law of 1988 or Republic
turn, may be elevated to the Court of Appeals. Under this Act No. 6657.165 Administrative Order No. 10, Series of
set up, the trial court does not have jurisdiction over 1989, Administrative Orders No. 12, Series of 1989, No. 9,
personnel actions and, thus, committed an error in taking Series of 1990, and No. 2, Series of 1996, Administrative
jurisdiction over Civil Case No. 22462. The trial court Order No. 10, Series of 1990, Joint DAR-LRA
should have dismissed the case on motion of petitioner and Memorandum Circular No. 20, Series of 1997, and
let private respondent question RMO [sic] No. 52 before the Executive Order No. 405, among others, (collectively,
NIA Administrator, and then the Civil Service Commission. Orders) were then issued.166
As held in Mantala v. Salvador, cases involving personnel Private respondents Trinidad Valley Realty &
actions, reassignment included, affecting civil service Development Corporation, et al. filed before the Regional
employees, are within the exclusive jurisdiction of the Civil Trial Court a Petition for declaration of unconstitutionality
Service Commission.162 (Emphasis supplied, citations through certiorari, prohibition and mandamus against the
omitted) Land Registration Authority, the Department of Agrarian
Despite allegations of Regional Office Memorandum No. Reform, and the beneficiaries under the Comprehensive
52Ês constitutional infirmities, this court still upheld the Agrarian Reform Program questioning the Orders.167 This
exclusive jurisdiction of the Civil Service Commission over was later amended to an ordinary action of annulment of
cases involving personnel actions. land titles.168 In its Answer, the Department of Agrarian

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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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upheld. constitutionality of Customs Memorandum Order (CMO)


In any case, detail of government personnel to other 27-2003.176 CMO 27-2003 classified wheat according to (1)
offices does not involve and violate the employeesÊ security importer or consignee; (2) country of origin; and (3) port of
of tenure in the absence of any grave abuse of discretion or discharge, and imposed different tariff rates depending on
improper motive or purpose.172 such classification.177 This court concluded that „a petition
Hence, the Regional Trial Court has no jurisdiction over for declaratory relief is the right remedy given the
private respondentsÊ Petition for declaratory relief. circumstances of the case.‰178 Hypermix cannot be applied
because the circumstances in that case differ from the
III. circumstances here as Hypermix does not involve a
personnel action.
Private respondents rely on Commissioner of Customs, et
al. v. Hypermix Feeds Corporation.173 They argue that IV.
based on Hypermix, „[t]he determination of whether a
specific rule or set of rules issued by an administrative A petition for declaratory relief may prosper only if there
agency contravenes the law or the [C]onstitution is within is no breach or violation yet of the assailed government
the jurisdiction of the regular courts.‰174 They add that the regulation, and adequate relief is not available through
„Constitution vests the power of judicial review or the other means or other forms of action or proceeding.
power to declare a law, treaty, international or executive Rule 63, Section 1 of the Rules of Court provides:
agreement, presidential decree, or-
SECTION 1. Who may file petition.·Any person interested
under a deed, will, contract or other written instrument, or
_______________
whose rights are affected by a statute, executive order or
171 Id., at pp. 670-671. regulation, ordinance, or any other governmental regulation
172 Borres v. Canonoy, 195 Phil. 81, 92-93; 108 SCRA 190, 200 (1981) may, before breach or violation thereof, bring an action in the
[Per J. De Castro, First Division]. appropriate Regional Trial Court to determine any question of
173 680 Phil. 681; 664 SCRA 666 (2012) [Per J. Sereno, Second construction or valid-
Division].
174 Rollo, p. 141. _______________

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

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ity arising, and for a declaration of his rights or duties, 137


thereunder. (Emphasis supplied)

VOL. 768, AUGUST 24, 2015 137


In Republic v. Roque,179 this court enumerated the Department of Finance vs. Dela Cruz, Jr.
requisites for a petition for declaratory relief to prosper:

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.

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186 Id. declaratory relief] is to secure an


authoritative statement of the rights and
187 Id., at pp. 148-149; p. 669.
obligations of the parties under a statute,
deed, contract, etc. for their

_______________
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

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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.

This court disagreed with the Court of Appeals and


stated:
141
An action for declaratory relief presupposes that there has been
no actual breach of the instruments involved or of the rights arising
VOL. 768, AUGUST 24, 2015 141
thereunder. Since the purpose of an action for declaratory relief is to
secure an authoritative statement of the rights and obligations of Department of Finance vs. Dela Cruz, Jr.
the parties under a statute, deed, or contract for their guidance in
the enforcement thereof, or compliance therewith, and not to settle empt from payment of real property taxes.‰200 This court
issues arising from an alleged breach thereof, it may be entertained ruled that the Regional Trial Court had no jurisdiction to
before the breach or violation of the statute, deed or contract to decide Philippine Economic Zone AuthorityÊs Petition for
which it refers. A petition for declaratory relief gives a practical declaratory relief.201 This court explained:
remedy for ending controversies that have not reached the state
where another relief is immediately available; and supplies the We rule that the [Philippine Economic Zone Authority] erred in
need for a form of action that will set controversies at rest before availing itself of a petition for declaratory relief against the City.
they lead to a repudiation of obligations, an invasion of rights, and a The City had already issued demand letters and real property tax
commission of wrongs. assessment against the [Philippine Economic Zone Authority], in
In the case at bar, the petition for declaratory relief became violation of the [Philippine Economic Zone AuthorityÊs] alleged tax-
unavailable by [Executive Order No. 10Ês] enforcement and exempt status under its charter. The Special Economic Zone Act of
implementation. The closure and demolition of the hotel rendered 1995, the subject matter of [Philippine Economic Zone AuthorityÊs]
futile any possible guidelines that may be issued by the trial court petition for declaratory relief, had already been breached. The trial
court, therefore, had no jurisdiction over the petition for

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declaratory relief. action. Under such circumstances, inasmuch as a cause of


There are several aspects of jurisdiction. Jurisdiction over the action has already accrued in favor of one or the other
subject matter is „the power to hear and determine cases of the party, there is nothing more for the court to explain or
general class to which the proceedings in question belong.‰ It is clarify short of a judgment or final order.
conferred by law, which may either be the Constitution or a statute.
Jurisdiction over the subject matter means „the nature of the cause Here, an infraction of the mortgage terms had already taken
of action and the relief sought.‰ Thus, the cause of action and place before the filing of Civil Case No. C-7496. Thus, the CFI
character of the relief sought as alleged in the complaint are lacked jurisdiction when it took cognizance of the case in 1979. And
examined to determine whether a court had jurisdiction over the in the absence of jurisdiction, its decision was void and
subject matter. Any decision rendered by a court without without legal effect. As this Court held in Arevalo v. Benedicto:
jurisdiction over the subject matter of the action is void.202
(Emphasis supplied, citations omitted) Furthermore, the want of jurisdiction by a
court over the subject-matter renders its
judgment void and a mere nullity, and
considering that a void judgment is in legal
Further, Tambunting, Jr. v. Spouses Sumabat203 effect no judgment, by which no rights are
declared that when a court assumed jurisdiction over a divested, from which no rights can be
Petition for declaratory relief when there was already a obtained, which neither binds nor bars any
one, and under which all acts performed
breach of the sub- and all claims flowing out of are void, and
considering further, that the decision, for
want of jurisdiction of the court, is not a
_______________ decision in contemplation of law, and,
hence, can never become executory, it
200 Id., at p. 543. follows that such a void judgment cannot
201 Id., at p. 566. constitute a bar to another case by reason
of res judicata.205 (Emphasis supplied,
202 Id.
citations omitted)\
203 Tambunting, Jr. v. Sumabat, 507 Phil. 94; 470 SCRA 92 (2005)
[Per J. Corona, Third Division].
_______________

204 Id., at pp. 98-99; p. 96.


205 Id., at p. 99; pp. 96-97.
142

142 SUPREME COURT REPORTS ANNOTATED


143
Department of Finance vs. Dela Cruz, Jr.

VOL. 768, AUGUST 24, 2015 143


ject instrument or government regulation, the orders made
by that court would be null and void for want of Department of Finance vs. Dela Cruz, Jr.
jurisdiction.204 Hence:
In other words, a court has no more jurisdiction This was reiterated in Malana, et al. v. Tappa, et al.206
over an action for declaratory relief if its subject, i.e., where this court declared:
the statute, deed, contract, etc., has already been Where the law or contract has already been contravened
infringed or transgressed before the institution of the prior to the filing of an action for declaratory relief, the

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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.

144 SUPREME COURT REPORTS ANNOTATED


Department of Finance vs. Dela Cruz, Jr.

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145

VOL. 768, AUGUST 24, 2015 145 146


Department of Finance vs. Dela Cruz, Jr.
146 SUPREME COURT REPORTS ANNOTATED
assail their detail to the Customs Policy Research Office. Department of Finance vs. Dela Cruz, Jr.
Since they have another adequate remedy available to
them, their Petition for declaratory relief must fail.
If the employee believes that there is no justification for the
All told, a Petition for declaratory relief was not an
detail, he/she may appeal his/her case to the proper Civil Service
available remedy for private respondents. It was, therefore,
Commission Regional Office. Pending appeal, the detail shall be
error for the Regional Trial Court to assume jurisdiction
executory unless otherwise ordered by said regional office. Decision
over private respondentsÊ Petition for declaratory relief.
of said regional office may be further appealed to the Commission
The Orders of the Regional Trial Court dated October 1,
En Banc.217 (Emphasis supplied)
2013, October 4, 2013, and October 21, 2013 are declared
void for want of jurisdiction. All other Orders of the
Regional Trial Court pursuant to private respondentsÊ Customs Personnel Order No. B-189-2013Ês provision
Petition for declaratory relief are also void for lack of stating that „[t]his Order shall be effective immediately
jurisdiction. and valid until sooner revoked‰ appears contrary to Section
The Regional Trial Court should be directed to dismiss 2 of Resolution No. 02-1181. Pursuant, however, to Section
private respondentsÊ Petition for declaratory relief. 2 of Civil Service Commission Resolution No. 02-1181,
Customs Personnel Order No. B-189-2013 should be read
V. as valid only for a period of one (1) year. Consistency in
executive issuances is of utmost importance.218 As much as
Customs Personnel Order No. B-189-2013 provides that possible, it is the duty of the courts to harmonize and
it „shall be effective immediately and valid until sooner reconcile them.219
revoked.‰215 In Philippine International Trading Corporation v.
Civil Service Commission Resolution No. 021181 entitled Presiding Judge Angeles,220 this court ruled:
Policies on Detail and dated September 13, 2002 „govern[s]
the detail of employees in all agencies of the Thus, there is no real inconsistency between LOI 444 and EO
government.‰216 Section 2 of Policies on Detail provides: 133. There is, admittedly, a rearranging of the administrative
functions among the administrative bodies affected by the edict, but
Section  2.  Duration of the Detail.·The detail shall be
not an abolition of executive power. Consistency in statutes as in
allowed only for a maximum period of one year. Details beyond one
executive issuances, is of prime importance, and, in the absence of a
year may be allowed provided it is with the consent of the detailed
showing to the contrary, all laws are presumed to be consistent with
employee. The extension or renewal of the period of the detail shall
each other. Where it is possible to do so, it is the duty of courts, in
be within the authority of the mother agency.
the construction of statutes, to harmonize and reconcile them, and
to adopt a construction of a statutory provision which harmonizes
_______________ and reconciles it with other statutory provisions. The fact that a

215 Rollo, p. 70; BOC Customs Personnel Order No. B-189-2013,


penultimate paragraph. _______________
216 CSC Memorandum Circular No. 21, Series of 2002.

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SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM

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. _______________

221 Id., at pp. 747-748; p. 444.


222 San Miguel Corporation v. Avelino, 178 Phil. 47, 53; 89 SCRA 69,
75 (1979) [Per J. Fernando, Second Division].
147
223 Ponencia, p. 89.
224 Id.
VOL. 768, AUGUST 24, 2015 147
Department of Finance vs. Dela Cruz, Jr.

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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SUPREME COURT REPORTS ANNOTATED VOLUME 768 8/11/22, 9:26 PM

SCRA 403 [2013])


It is true that the doctrine of exhaustion of
administrative remedies is not an ironclad rule, but
recognizes exceptions. (Ejera vs. Merto, 714 SCRA 397
[2014])

··o0o··

_______________

225 Supra note 218 at p. 748; p. 444.

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