Procedure to be followed: - Not the same in ordinary civil actions - Administrative procedure may refer to : 1) Purely executive or ministerial

functions (e.g. issuance of license) 2) Rule-making 3) Adjudication of disputes (A) Procedures set forth: 1. Statute creating the agency 2. Rules promulgated by the agency by authority of law a.) b.) c.) Must be: Construed liberally Not strictly construed Substantial Compliance is sufficient

Book VII of the Administrative Code of 1987: RULES (procedures): Chapter 3. Adjudication Sec. 10. Compromise and Arbitration. - Must be encouraged by agencies - Amicable settlement, compromise and arbitration: 1. To expedite proceedings involving conflicting rights of claim; and 2. Obviate expensive litigation. Sec. 11. Notice and Hearing in Contested Cases. A. All parties are entitled to notice and hearing - Notice shall be served at least 5 days before the date of hearing - Notice shall state the date, time and place of hearing B. The parties shall be given opportunity to present evidence and argument on all issues. - Stipulation, agreed settlement of defaults may be made 1. If not precluded by law; 2. Kind of informal disposition of contested cases may be made C. Agency shall keep an official record of its proceedings. - Adjudication agency process for the formulation of a final order - Contested Case agency is required by law to afford an opportunity for hearing in connection with its determination of legal rights, duties or privileges (RDP) Includes licensing, in which the RDP asserted by specific parties as required by the Constitution or By-law are to be determined after hearing. Sec. 12. Rules of Evidence. In a Contested Case (CC) (1) Substantial evidence evidence commonly accepted by reasonably prudent men in the conduct of their affairs - May be: 1. Admitted; and 2. Given probative value. (2) Documentary Evidence - May be received in: 1. Copies or excerpts (if original is not readily available 2. Upon request, parties shall be given opportunity to compare the copy with the original

(B) Reasonable Method is used to carry out the agencys functions - Where no available method is prescribed by the statute for the enforcement of statutory rights - Technical rules of procedure and evidence are not binding - Admin. Agencies are not bound by the rigid requirements of the Rules of Court - Important consideration: 1.) Both parties were afforded an opportunity to be heard; and 2.) They availed of it to present their respective positions on the matter in dispute (C) Informal methods of adjudication is allowed: - Formal Procedures: 1.) Testimony of witnesses; 2.) Stenographic record; 3.) Briefs; 4.) Arguments; and 5.) Findings of fact or opinion - Informal Procedures: 1.) Inspection or tests; 2.) Complaints disposed of by consent or by correspondence Provided: Right to hearing must not be denied to the parties. i.e. Discussion even without hearing is valid if valid issues are drawn (compliance with statutory requirements)

3. If original is in the official custody of a public officer, a certified copy thereof may be accepted. 4. The agency may take notice of: a. Judicially cognizable facts; and b. Generally cognizable technical or scientific fact - Within its specialized knowledge - The parties shall be notified and afforded an opportunity to contest the facts so noticed Sec. 13. Subpoena. In CC: The agency has the power to: 1. Require the attendance of witnesses; or 2. Production of books, papers, documents and other pertinent data. - Upon request of any party before or during the hearing upon showing of GENERAL RELEVANCE. RTC having jurisdiction of the CC: 1. Where aid is resorted to by the agency in case of disobedience; 2. May punish contumacy or refusal as contempt. Sec. 14. Decision. In a CC. - Shall be in writing - Shall state clearly and distinctly the facts and the law on which it is based - Made within 30 days following its submission - Notice of decision be made personally or by registered mail addressed to either the counsel or the parties - Decision: 1. The whole or any part of the final disposition; 2. Not interlocutory in character 3. Whether affirmative, negative or injunctive 4. Include licensing, rate fixing and granting of rights and privileges Sec. 15. Finality of Order. Decision shall become final and executory 15 days after the receipt of a copy thereof by the party adversely affected - Unless: Within 15 days 1. An administrative appeal; or 2. Judicial review, if proper - Has been perfected Motion for Reconsideration (MR) - Allowed only once - Suspends the running of the said period Sec. 16. Publication and Compilation of Decisions

1. Each agency shall publish and make available for public inspection all decisions or final orders in CC; 2. Records Officer or his equivalent functionarys duty: - Prepare a register or compilation of those decisions or final orders for use by the public Sec. 17. Licensing Procedure. 1. When the Grant, Renewal, Denial or Cancellation of a license is requires prior notice and hearing, the provisions concerning contested cases shall apply if practicable 2. No license may be Withdrawn, Suspended, Revoked or Annulled without notice and hearing. Except: a. In cases of wilful violation of pertinent laws, rules and regulations; or b. In cases when Public Security, Health or Safety requires otherwise Sec. 18. Non-expiration of License. - Where licensee has made timely and sufficient application for: 1. The renewal or a license; or 2. A new license - With reference to any activity of a continuing nature - The existing license shall not expire until the application shall apply insofar as practicable Chapter 4. Administrative Appeal in CC Sec. 19. Appeal. Appeal from an agencys final decision may be taken to the Department Head. - Unless otherwise provided by law or executive order. Sec. 20. Perfection of Administrative Appeals. 1. Administrative appeals shall be perfected within 15 days after receipt of the copy of the decision complained of by the party adversely affected, by: a. Filing a notice of appeal with the agency which adjudicated the case; b. Serve copies of the notice of appeal upon the prevailing party AND the appellate agency; and c. Pay the required fees. 2. A. If MR is denied, the period within which a movant can perfect his appeal: Remainder of the period of appeal From receipt of the resolution of denial B. Upon MR, decision is reversed:

- aggrieved party shall have 15 days to perfect the appeal - 15 days from receipt of the resolution C. Upon perfection of the appeal, the agency shall transmit the records of the case to the appellate agency. Sec. 21. Effect of Appeal. General Rule: The appeal shall stay the decision appealed from Exception: If the agency directs otherwise, upon such terms as it may deem just, considering the nature and circumstances of the case. Sec. 22. Action on Appeal. The appellate agency shall: 1. Review the records of the proceedings; and 2. May receive additional evidence - On its own initiative or upon motion Sec. 23. Finality of Decision of Appellate Agency. Decision shall become final and executory 15 days after the receipt by the parties of a copy thereof. Sec. 24. Hearing Officers. HO - Each agency shall have: 1. Qualified and competent members of the bar as HO 2. Such number as may be necessary for the hearing and adjudication of contested cases. - No HO shall: 1. Engage in the performance of prosecuting functions in any: a. Contested case; or b. Factually related case. Sec. 25. Judicial Review. 1. Agency decisions shall be subject to judicial review, in accordance with: a.) Chapter 4 of Book VII of the Admin Code of 1987; and b.) Applicable laws 2. Aggrieved party of an agency decision may seek judicial review; 3. Action for judicial review may be brought against: a. The agency; or b. Agencys Officers; and c. All indispensable and necessary parties 4. Perfection of an appeal from an agency decision:

a. File with the agency a notice of appeal within 15 days from receipt of a copy of the agency decision; and b. File with the reviewing court a petition for review of the order. - Copies of the petition shall be served upon the agency and all parties of record - Contents of Petition: a. Concise statement of the issues involved; b. Grounds relied upon for the review; c. Accompanied by a true copy of the order appealed from; d. Accompanied by copies of such material portions of the record as are referred to therein; and e. Accompanied by other supporting papers; f. Shall be under oath (petition); g. Show that it was filed within the prescribed period by stating specific material dates. 5. Only one MR may be allowed. Same rules stated supra on grant or denial of MR as to the period to file or perfect the appeal. 6. Review proceeding must be filed in: a. The court specified by stature; or b. In the absence of No. 1, any court of competent jurisdiction in accordance with the provisions on VENUE of the ROC. 7. Review shall be made based on the record taken as a whole. - Finding of fact of the agency when supported by SUBSTANTIAL EVIDENCE, shall be final EXCEPT when specifically provided otherwise by law. Sec. 26. Transmission of Record. Within 15 days from the service of the petition for review: 1. The agency shall transmit to the court the original or a certified copy of the entire records of the proceeding under review. 2. The record to be transmitted may be shortened by agreement of ALL parties to the proceedings. - The court may require or permit subsequent correction of additions to the record. These Rules are applicable to all agencies, except: 1. Congress; 2. Judiciary; 3. Constitutional Commissions; 4. Military Establishments in all matters relating exclusively to Armed Forces personnel; 5. Board of Pardons and Parole; and 6. State universities and colleges.

Controversies among government offices and corporations: 1. All disputes, claims and controversies (dcc) , solely between or among the: a.) Departments; b.) Bureaus; c.) Offices; d.) Agencies and Instrumentalities of the National Government; e.) Including GOCCs - Those arising from the interpretation and application of statutes, contracts or agreements - Shall be administratively settled or adjudicated in the manner provided in Book IV, Chapter 14 of the Administrative Code (AC). - Not apply to disputes involving the Congress, Supreme Court, Constitutional Commissions, Local Governments - shall be conclusive and binding on all the parties concerned. 2. Disputes involving questions of law - Submitted to and settled or adjudicated by the Secretary of Justice (SJ) - SJ as Attorney-General of the National Government - SJ as ex officio legal adviser of all GOCCs - SJs ruling shall be conclusive and binding on all the parties concerned. 3. Disputes involving questions of fact and law. - Cases involving mixed questions of law and fact or only factual issues shall be submitted to and settled or adjudicated by: a.) Solicitor General: if dcc involves only those in number 1 letters a-e or entities of whom the Sol Gen is the principal law officer or general counsel; and b.) Secretary of Justice, in all other cases not falling under paragraph 1 4. Arbitration. Arbitration panel: - Composed of 1 representative each of the parties involved - Presided over by a representative of the SJ or Sol Gen, as the case may be - To which, determination of factual issues may be referred to 5. Appeals. Decision off the: 1. SG; and 2. Sol Gen when approved by SJ.

- Shall be final and binding upon the parties. - Appeals may be taken to the: 1. President, where the amount of the claim or value of the property exceeds 1 million pesos; or Decision of the President shall be final 6. Rules and Regulations. - SJ shall promulgate rules and regulations necessary to carry out the provisions of chapter 14. [Admin Code, book IV, chap. 14, sections 66-71. Due process of law in administrative adjudication: 1. Nature. Right to due process is a constitutional right. Must be observed in proceedings (judicial or administrative) which may deprive a person of life, liberty, or property. 2. Essence Opportunity to be heard. - In administrative proceedings: 1. Opportunity to explain ones side; or 2. Opportunity to seek a reconsideration of the action or ruling complained of. Before judgment sufficiently meets demand of due process Technical rules of procedure and evidence not strictly applied not necessary to apply due process in its strict judicial sense. Means to be heard: 1.) Orally; 2.) Through pleadings - A party must be afforded every opportunity to present his side - Not a violation of due process: failure to cross-examine the adverse party and his witnesses 3. Standard. - Disputes before agencies must be resolved in the most expeditious and inexpensive manner possible. - However, agencies are still bound by law, practice or equity to observe the fundamental and essential requirements of due process in the Constitution - Latitude is allowed so long as fairness is not ignored 4. Requisites. Administrative due process includes: a.) Right to notice (actual or constructive) Of the institution of the proceedings - may affect a persons legal right

b.) Reasonable opportunity to appear and defend his rights 1. Introduce witnesses 2. Introduce relevant evidence By testimony or otherwise 3. Controvert the evidence of the other party c.) Tribunal that: 1.) Is one of competent jurisdiction; 2.) will give a party reasonable assurance of honesty and impartiality - The member must not be related to any of the parties d.) Decision or finding by the said tribunal must be supported by substantial evidence: 1. Presented at the hearing; or at least 2. Ascertained in the records or disclosed to the parties affected. Right to counsel not necessary in administrative investigation / due process unless required by the Constitution or the law - Administrative investigations Where the inquiries are conducted merely to determine whether there are facts that merit disciplinary measures against erring public officers and employees with the purpose of maintaining the dignity of the government service. (right to counsel immaterial) e.) Effect of non-observance. - Denial of due process: 1.) Grave abuse of discretion; 2.) May invalidate the administrative proceedings; and 3.) May invalidate the order or determination entered against a party. See pp. 243-247 of the book: For the case of AV re: construction of funeral parlor near a hospital. Institution of proceedings: - Depends upon the: 1.) Purpose served by the particular agency; 2.) Governing statute or rules of the agency. A. ex parte application: 1. License; 2. Permit; 3. Approval; 4. Consent; 5. Filing of a claim; or 6. For benefits;

a. 1. 2. 3.

B. Filing of a: Charge or complaint by an aggrieved person Notice of hearing issued on the basis of said charge or complaint C. Under other statutes: Admin. Agencies may institute proceedings: On their own initiative; Upon Motion; or Based on a complaint.

Necessity for Notice and Hearing: - Depends on the: 1. Character of the proceeding; and 2. Circumstances involved. A. General Rule: Notice and hearing are not essential to the validity of administrative action where the administrative body acts in the exercise of the ff. functions: 1. Executive; 2. Administrative; or 3. Legislative. B. Exceptions: 1. Where a public administrative body: a. Acts in a judicial or quasi-judicial matter; b. Its acts are particular and immediate; c. Acts are not general and prospective; d. Person whose rights or property may be affected by the action is entitled to notice and hearing. In one case, Justice Gutierrez, Jr. concurred by stating: - In the exercise of quasi-legislative powers, administrative agencies xxx should hold public hearings and should be given guidelines as to when notices and hearings are essential even in quasi-legislation. C. Due Process of law: Notice and opportunity to be heard before judgment is rendered. - Judgment affects the person, his property or rights. - In this scenario, notice may be dispensable but not the opportunity to be heard (due process) D. 1. 2. Source of right to due process: Statute conferring power upon an agency; Constitutional guarantee of due process. Notice is to enable a party to be heard and to present evidence (i.e. service of summons) is a very vital and indispensable ingredient of due process.

Delegation of authority to hear and receive evidence: (notebook) Power of an administrative agency to issue rules and regulations to carry out its functions as a REGULATORY BODY: adequate source of authority to delegate a particular function (i.e. adjudicatory), unless otherwise provided in the statute by express provision of the statute or by implication. Essential that judgment and discretion are finally exercised by (him) proper officer. May resort to the aid of subordinates to investigate and report to him the facts [as basis for his decision] Essential that due process requirements are observed. Not necessary that the actual taking of testimony be before the deciding officer Provided the party is granted his right to: a. Present his case b. Submit evidence in support thereof Provided the decision is supported by the evidence on record. Essential that proper officer acts on his own independent judgment. The officer who makes determinations must: Consider and appraise the evidence which justifies them; Act on his own independent consideration of the law and facts of the controversy; and Not simply accept the views of a subordinate in arriving at a decision.

3. Essential rules of evidence. a. Giving of evidence under oath; b. Evidence must have probative value; c. Proper allocation of the burden of proof; d. Degree of proof; e. Right to know the evidence submitted or to be considered; f. Inspect documents; g. Cross-examine witnesses, and h. Offer evidence in explanation or rebuttal. 4. Probative Value. - Complainant has burden of proving by substantial evidence, the allegations in his complaint. - Substantial Evidence: Is more than mere scintilla. It means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. - Evidence or testimony that must be excluded by the agency, as a matter of policy: a. Irrelevant; b. Immaterial; or c. Unduly repetitious - No law, rule or jurisprudence states that an uncorroborated evidence is ipso facto insufficient. - Where 2 conflicting occasions are supported by substantial evidence, the administrative agency may: a. Choose which to uphold; and b. Flip-flop on its actual findings. Without committing grave abuse of discretion - In a case, the Undersecretary of Labor and Employment and POEA Administrator reversed a penalty imposed: a. Based not on the fact that one version was more believable; b. But rather based on the testimonies of complainants after describing them to be more convincing than respondents stand and inspired belief It was held that respondents committed grave abuse of discretion correctible by certiorari. 5. Hearsay Rule. - Must be excluded, based on: a. Necessity of an opportunity for crossexamination; and b. Requirement that the substance of the testimony be given under oath. - Generally admissible in proceedings before administrative agencies For a limited purpose; and When not objected to.

1. 2. 3. 1. 2. 3.

See case: Director of Patents delegated the hearing of petitioners cases to hearing officers. Pp. 276 277. EVIDENCE IN ADMINISTRATIVE PROCEEDINGS: 1. Application of strict rules of evidence. - Agency is not bound by strict rules in reception of evidence observed in court proceedings. (reception of incompetent evidence would not invalidate administrative determination) 2. Particular judicial rules. - Best evidence rule: a. Res inter alios acta: principle that transactions between two parties should not be used against a third party; b. Res gestae: Expert and opinion evidence; c. Privilege of witnesses; d. Proper authentication of records; e. Use of interrogatories; and f. Rule as to contradiction of ones own witness.

- May be accepted in judicial proceedings: As supplement to or in explaining any direct evidence - Inadmissible where the question at issue: a. Is not a matter of opinion b. Involves a question purely of fact which is susceptible of accurate determination c. I.E. Valuation of property; or Amount of gross receipts from retail sales. 6. Admissions and declarations. - Admissible Dying declarations declarations of deceased against his interest Others made against interest - Inadmissible: General Rule: Self-serving declarations 7. Evidence offered during the hearing. - All parties must be fully or fairly appraised of the evidence submitted or to be considered - Evidence not formally introduced is inadmissible Except when it is made known to all parties: --- 1. That evidence not formally introduced has been received by the administrative agency; or --- 2. A fact is properly supplied by official notice or presumption. Note: Decision must be rendered on the evidence: a. Presented at the hearing; b. Contained in the record; and c. Disclosed to the parties affected. 8. Agency files and records. - GENERALLY -- It is improper for an administrative agency: in a quasi-judicial or adjudicatory proceeding to base its decision or finding upon facts: --- gathered from its own files without introducing the files in evidence; or --- obtained from other cases pending before or previously decided by the tribunal. 1st Line of Cases: Agencies can take judicial notice of its own records or decisions or may act on the knowledge of matters disclosed to it through its own records. 2nd Line of Cases: Agencies may use evidence gathered from its own files and records for the limited purposes of supplementing or checking and weighing evidence properly introduced. BETTER RULE: Agencies may take notice of data on file or results reached by it in other cases: a.) Where such is made known; and b.) There is adequate opportunity for rebuttal.

9. Secret or Confidential Information: - General Rule: Information cannot be withheld from the parties on the ground that it is of confidential nature and at the same time be used as a basis for the agencys decision. - Exception: Right to hearing does not include the right to know information which must be kept secret in the public interest. 10. Quantum of proof. - A statute may specially provide for a greater or lesser degree of proof than simple preponderance. - Evidence creating an equipoise is insufficient; - Evidence to establish proof beyond reasonable doubt nor preponderance of evidence is not required. a. In our jurisdiction: Findings of fact of administrative agencies must be respected provided they are supported by substantial evidence - Absence of substantial evidence must not be shown by stressing that there is a contrary evidence on record, direct or circumstantial for it to be admissible - Courts cannot substitute its own judgment or criteria for that of the administrative agency. b. An administrative agency may not require: a. A degree of proof higher than substantial evidence. b. More than the rules of administrative due process enunciated in Ang Tibay. 1. A. B. DECISIONS OR ORDERS Necessity of findings: Right to adduce evidence mandates a duty on the part of the agency to consider it. The duty to deliberate implies a necessity of having something to support its decision. This duty does not impose the obligation to decide right. The necessity of a finding to sustain adjudicatory administrative action may be: A statutory requirement; or May even exist in the absence of specific legislative requirement. Express findings are necessary or desirable: a. To know the basis of an agencys action and protect and assure the parties against careless and arbitrary action; b. To enable the courts to perform their function of review: i.e. determine WON agency acted within its jurisdiction and WON agency decided the case based on evidence and law; and

2. a. -

b.

c. To give the reviewing court assistance of an expert judgment on matters entrusted to the agency for initial determination. Form. Agency orders or determinations must in certain cases conform to the statutes governing the particular proceeding. At times, they must: Be in proper form, authenticated (as prescribed by statute), and entered against the proper party. Be sufficiently definite and certain to inform the party what is required to be done, and to enable the courts, in proper cases, to enforce them. Constitutional mandate: (Obligation) to state clearly and distinctly the facts and law on which a decision is based applies only to a court. However, it also applies to administrative tribunals. Agencies are not justified to resort to summary disposition of controversial factual questions. Agencies should render its decisions in such a manner that the parties to the proceeding can know the various issues involved and the reasons for the decision rendered [which requires a finding of fact] See cases pp. 292-298

Administrative Body as a Collegiate Body Powers and duties of an agency composed of members or commissioners may not be exercised by the individual members SEPARATELY. Acts of the body are official only when: a. Done by members in a session; b. Upon concurrence of at least a majority; and c. With at least a quorum present. The action should appear in the records of the Board Unless an action may be determined not by the official body but by any of the individuals composing the said body.