ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 1

ENVERGA LAW SCHOOL

Statutory Construction
Midterms Reviewer
CHAPTER 1: STATUES
Laws, generally

A whole body or system of law

Rule of conduct formulated and made obligatory by legitimate power of the state

Includes RA, PD, EO (president in the ex of legislative power), Presidential issuances (ordinance power)
Jurisprudence, ordinances passed by sanggunians of local government units.
Statutes, generally

An act of legislature (Philippine Commission, Phil. Legislature, Batasang Pambansa, Congress)

PDs of Marcos during the period of martial law 1973 Constitution

EO of Aquino revolutionary period Freedom Constitution

Public affects the public at large

General applies to the whole state and operates throughout the state alike upon all people or all of
a class.
Special relates to particular person or things of a class or to a particular community, individual or
thing.
Local Law operation is confined to a specific place or locality (e.g municipal ordinance)

Private applies only to a specific person or subject.

Permanent and temporary statutes

Permanent - one whose operation is not limited in duration but continues until repealed.

Temporary - duration is for a limited period of time fixed in the statute itself or whose life ceases upon the happening of
an event.
E.g. statute answering to an emergency

Other classes of statutes

Prospective or retroactive accdg. to application
Declaratory, curative, mandatory, directory, substantive, remedial, penal accdg. to operation
According to form
Affirmative
Negative

Manner of referring to statutes

Public Acts Phil Commission and Phil Legislature 1901- 1935

Commonwealth Acts 1936- 1946

Republic Acts Congress 1946- 1972, 1987

Batas Pambansa Batasang Pambansa

Identification of laws serial number and/or title

ENACTMENT OF STATUTES
Legislative power, generally

Power to make, alter and repeal laws

Vested in congress 1987 Constitution

President 1973 & Freedom (PD and EO respectively)

Sangguniang barangay, bayan, panglungsod, panlalawigan only within respective jurisdiction ordinances

Administrative or executive officer

Delegated power

Issue rules and regulations to implement a specific law

Congress legislative power

The determination of the legislative policy and its formulation and promulgation as a defined and binding rule
of conduct.

Legislative power - plenary except only to such limitations as are found in the constitution
Procedural requirements, generally

Provided in the constitution (for Bills, RA)

Provided by congress enactment of laws

Rules of both houses of congress (provided also by the Constitution)

ELS: Statutory Construction

Steps in the Passage of Bill into Law

Midterms Reviewer

Rae Gammad 2

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 3

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 4

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 5

Parts of Statutes:
Title
Enacting Clause
Preamble
Purview of the Statute
Separability Clause
Repealing Clause
Effectivity Clause: Teppsere
Parts of Statutes:
1. Preamble: A prefatory statement or explanation or a finding of facts, reciting the
Purpose

Reason

Where is the Preamble usually found in a statute?:

Occasion
for making the law to which it is prefixed.

Do all laws have preambles?

It is usually found after the enacting clause and before the body of the law.

The legislature seldom puts a preamble to a statute it enacts into a law.

Reason: The statement embodying the PRO for the enactment of the law is contained in its explanatory note.

Do Presidential Decrees and Executive Orders need preambles?

They generally have preambles because unlike statutes enacted by the legislature in which the members thereof
expound n the purpose of the bill its explanatory note or in the course of deliberations, no better place than in the
preamble can the reason and purpose of the decree be stated. Preambles play an important role in the construction of
PD and EO.

2. Title

What does the Constitution say about the Title of a Statute?

Dual limitations provided by the Constitution to the legislature regarding title of a statute:

The Constitution provides that "every bill passed by Congress shall embrace only one subject which shall be
expressed in the title thereof." Hence, it is mandatory and to violate such is deemed unconstitutional.

First: The legislature is to refrain from conglomeration (a group or mixture of different things), under one statute, of
heterogenous subjects.
Second: The title of the bill is to be couched in a language sufficient to notify the legislature and the public and those
concerned of the import of the single subject thereof.

Principal purpose of title requirement:

To apprise the legislators of the object,nature, and scope of the provision of the bill and to prevent the enactment into
law of matters which have not received the notice, action and study of the legislators.
It is to prohibit duplicity in legislation.

Aims of the Constitutional Title Requirement:

1. To prevent hodgepodge/ logrolling legislation
2. To prevent surprise or fraud upon the legislature
3. To fairly apprise the people, through publication of the subjects of the legislation
4. To be used as a guide in ascertaining legislative intent when the language of the act does not clearly express its purpose; may
clarify doubt or ambiguity.
Subject of repeal of statute:

The repeal of a statute on a given subject is properly connected with the subject matter of a new statute on the same
subject; and therefore a repealing section in the new statute is valid notwithstanding that the title is silent on the subject.

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 6

How requirement of title construed?

Liberally construed

should not be given a technical interpretation.should not be narrowly construed to cripple or impede the power of
legislation
When title requirement not applicable?

The requirement applies only to bills which may thereafter (1935, 1973 and 1987 Constitution) be enacted into law. It does
not apply to laws in force and existing at the time the 1935 Constitution took effect.
Effect of Insufficiency of title:

A statute whose title does not conform to the constitutional requirement or is not related in any manner to its subject is null
and void.

Subject matter not sufficiently expressed

subject is void but the rest in force, unless the invalid provisions are inseparable from the others, in which case the
nullity of the former vitiates the latter.

3. Enacting Clause:

The part of a statute written immediately after the title which states the authority by which the act is enacted.
Enacting Clause in:
Laws passed by the Philippine Commission: "By authority of the President of theUS, be it enacted by the US Philippine
Commission
Philippine Legislature: "By authority of the US, be it enacted by the Philippine Legislature"

Philippine Legislature became Bicameral: Be it enacted by theSenate and House of Representatives of the Philippines in
legislature assembled and by authority of the same"
During the Commonwealth: Be it enacted by the NationalAssembly of the Philippines"
During the Commonwealth: became bicameral: "Be it enacted by the Senate and House of Representatives in congress
assembled same19461972/1987present.
Batasang Pambansa: "Be it enacted by the Batasang Pambansa in session assembled"
Presidential Decrees: Now therefore, I ______ President of thePhilippines, by the powers vested in me by the Constitution
do hereby decree as follows
Executive Orders: Now, therefore, I, ____ hereby order

4. Purview or Body of Statute:

The purview or body of a statute is that part which tells what the law is all about.

The body of a statute should embrace only one subject matter.

Statue is usually divided into section which contains a single proposition.

Parts/Sections of a complex and comprehensive piece of legislation: (tipodasvitsre)
1. a short title
2. a policy section
3. definition section
4. administrative section
5. sections prescribing standards of conduct
6. section imposing sanctions for violations of its provisions
7. transitory provisions
8. separability clause
9. repealing clause
10. effectivity clause
5. Separability Clause:

A separability clause is that part of a statute which states that if any provision of the act is declared invalid, the remainder
shall not be affected thereby.

It is not controlling and the courts may invalidate the whole statute where what is left, after the void part, is not complete
and workable
Presumption on statutes (Separability Clause):

Statute is effective as a whole and would not have passed it had it foreseen that some part of it is invalid
Effect of Separability Clause:

The effect of a separability clause is to create in the place of such presumption the opposite one of separability.

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 7

6. Repealing Clause:

When the legislature repeals a law, the repeal is not a legislative declaration finding the earlier law unconstitutional.

The power to declare a law unconstitutional does not lie with the legislature, but with the courts.
7. Effectivity Clause:

The effectivity clause is the provision when the law takes effect.

15 days from publication in the Official Gazette or in a newspaper of general circulation.

Appropriations and Revenue Bills:

undergo same procedure of enactment of ordinary bills

can only originate from the Lower House

although the Senate may propose or concur with amendments

Budget Process:
Four major phases:
1. Budget Preparation
2. Budget Authorization
3. Budget Execution
4. Budget Accountability
*After approval of the "proposed budget" by the Department of Budget and Management, the same is submitted to
Congress for evaluation and inclusion in the appropriations law.
General Appropriation Bill:

A special type of legislation, whose content is limited to specified sums of money dedicated to specific purposes or a
separate fiscal unit.

Inherent in the power of appropriation is the power to specify how the money shall be spent.
Restrictions in passage of budget or revenue bills (as per Constitution) Art 6 Sec. 27 (2):
1. Congress may not increase the appropriations recommended by the President for the operation of the Government as
specified in the budget.
2. Each provision must relate specifically to particular appropriation.

3.
4.
5.

6.
7.
8.

Restriction of including inappropriate provisions (provisions which is intended to amend another law; includes
unconstitutional provisions and provisions which are intended to amend or repeal other laws)
Restriction of the Fiscal Autonomy (contemplates a guarantee of full fexibility to allocate and utilize their resources
with the wisdom and dispatch that their needs require; freedom from external control) of the Judiciary, the Civil
Commission, COMELEC, Commission on Audit, and Office of the Ombudsman.
Congress must strictly follow the procedure in approving appropriations for the other departments and agencies
A special appropriations bill shall specify the purpose and supported by funds actually available as certified by the
National Treasurer, or to be raised by a corresponding revenue
No transfer of appropriations
Exception: The following may, by law, be authorized to augment any item in the general appropriations law for their
respective offices from savings in other items of their respective appropriations. They are authorize to realign savings :
President
Senate President
Speaker of the HOR
Chief Justice of the Supreme Court
Heads of Constitutional Commissions
- Requirements:
the funds to be transferred are actually savings in the items of expenditures from which the same are to
be taken
the transfer or realignment is for the purpose of augmenting the items of expenditures to which transfer
or realignment is to be made.
Discretionary funds requirements: funds disbursed only for public purposes supported by appropriate vouchers
Automatic reenactment of budget
President's Veto Power
The President may veto any particular item/s in an appropriation revenue, or tariff bill.
Item in a bill refers to the particulars, details, the distinct and several parts of the bill.
- an indivisible sum dedicated to a stated purpose
Item in an appropriation bill means an item which in itself is a specific appropriation of money, not some
general provision of law, which happens to be put into an appropriation bill.

ELS: Statutory Construction

9.
10.
11.
12.

Midterms Reviewer

Rae Gammad 8

No public funds to be spent except by law

No public money or property for religious purposes (does not apply to the temporary use of public streets or places)
Money for special purpose special fund and paid out for such purpose only
Highest budgetary priority to education

Rules and records of legislative proceedings:

Constitution Article 6
Section 16 (3 rules of proceedings), (4 journal),
Section 26 (2 last reading)
Section 27 (1 President)
Journal: Article 6 Section 16 (4)

Each House shall keep a journal of its proceedings, and from time to time publish the same, excepting parts as may, inits
judgement, affect national security; and the yeas and nays on any question shall, at the request of onefifth of the members
present, be entered in the Journal. Each House shall also keep a Record of its proceedings
Power to issue its rules of proceedings:

Each house has the power to issue its own rules of proceedings

However, rules may not ignore constitutional restraint or violate fundamental rights, and further that there should be a
reasonable relation between the mode or the method of proceedings established by the rules and the result which is sought
to be attained.
Francisco v HOR

all rules must not contravene the Constitution which is the fundamental law.
Osmena v Pendatun

it is within either of the House of Congress to interpret its rules and that it it was the best judge of what constitutes
disorderly behavior of its members
Paceta v Secretary of the Commission on Appointments

where the construction to be given a rule affects persons other than members of the Legislature, the question becomes
judicial in nature.
Arroyo v De Venecia

While the Congress empowers each house to determine its rules of proceedings, it may not by its rules ignore
Constitutional retraints or violate fundamental rights that there should be a reasonable relation between the mode or the
method of proceedings established by the rules and the result which is sought to be attained.

It is only within these limitations that all matters of method are open to the determination of the Legislature.
Power to make rules:

not one which once exercised is exhausted

it is a continuous power, always subject to be exercised by the House, and within the limitations suggested, absolute and
beyond the challenge of any other body or tribunal.
Test to confirm the jurisdiction of courts to pass upon the validity of congressional rules:
1. that it does not ignore any constitutional restraint
2. it does not violate any fundamental right
3. its method had a reasonable relationship with the result sought to be attained.
Unimpeachability of Legislative Journals:

The journal is regarded as conclusive with respect to matters that are required by the Constitution to be recorded therein.

Disputable with respect to all other matters

By reason of public policy, authenticity of laws should rest upon public memorials of the most permanent character

Should be public

In case of confict between the enrolled bill and the legislative journals, what should prevail?

The enrolled bill should prevail, except as to matters that the Constitution requires to be entered in the journals.

Entries in the Legislative Journals according to the Constitution:

1. yeas and nays on the final reading of a bill or
2. on any question at the request of at least onefifth of the members of the House
3. objections of the President to a vetoed bill or item
4. names of the members voting for or against overriding the President's veto

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 9

Enrolled Bill:

Bills passed by congress authenticated by the Speaker and the Senate President and approved by the President

deemed importing absolute verity and is binding on the courts

Enrolled bill doctrine:

The signing of a bill by the Speaker of the House and the Senate President and the certification of the Secretaries of both
houses of Congress that the bill was passed are conclusive of its due enactment.
Courts regarding enrolled bills :

Courts cannot go behind the enrolled act to discover what really happened.

If there has been any mistake in the printing of the bill before it was certified by the officer of the assembly and approved
by the chief executive, the remedy is by amendment by enacting a curative legislation, not by judicial decree.
Withdrawal of authenticity:

The Speaker and the President of the Senate may withdraw their respective signatures from the signed bill where there is
serious and substantial discrepancy between the text of the bill as deliberated in the legislature and shown by the journal
and that of the enrolled bill.

Effects:

nullifies its status as an enrolled bill

courts can declare that bill has not been duly enacted and did not accordingly become a law.
Presidential issuances :

Presidential issuances are those which the President issues in the exercise of his ordinance power.

have force and effect of laws

1. Executive Orders - acts of the President providing for rules of a general or permanent character in the implementation or
execution of constitutional or statutory powers. : EO execution
2. Administrative Orders acts which relate to particular aspects of governmental operations in pursuance of his duties as
administrative head.
3. Proclamations acts fixing a date or declaring a statute or condition of public moment or interest, upon the existence of which the
operation of a specific law or regulation is made to depend.
4. Memorandum Orders acts on matters of administrative detail or of subordinate or temporary interest which only concern a
particular office or office of the Government
5. Memorandum Circulars - acts on matters relating to internal administration which the President desires to bring to the attention
of all or some of the departments, agencies, bureaus or offices of the Government for information or compliance.
6. General or Specific Orders - acts and commands of the President in his capacity as CommanderinChief of the Armed Forces of
the Philippines
Presidential Decrees - Laws which are of the same category and binding force as statutes because they were issued by the President
in the exercise of his legislative power during the period of Martial Law under the 1973 Constitution
Ople v Torres
Facts:
The petition at bar is a commendable effort on the part of Senator Blas F. Ople to prevent the shrinking of the rightto privacy, which
the revered Mr. Justice Brandeis considered as "the most comprehensive of rights and the rightmost valued by civilized men."
Petitioner Ople prays that we invalidate Administrative Order No. 308 entitled"Adoption of a National Computerized Identification
Reference System" on two important constitutional grounds, :
(1)it is a usurpation of the power of Congress to legislate, and
(2)it impermissibly intrudes on our citizenry's protected zone of privacy.
ISSUE: Whether the issuance of A.O. No. 308 is an unconstitutional usurpation of the power of Congress to legislate.
RULING: Legislative power is the authority to make laws, and to alter and repeal them. The Constitution has vested this power in
the Congress. The grant of legislative power toCongress is broad, general, and comprehensive. Any power deemed to be legislative
by usage and tradition, is necessarily possessed by Congress, unless the Constitution has lodged it elsewhere. The executive power,
on the other hand, is vested in the President. It is generally defined as the power to enforce and administer the laws. It is the power
of carrying the laws into practical operation and enforcing their due observance. As head of the Executive Department, the
President is the Chief Executive. He represents the government as a whole and sees to it that all laws are enforced by the officials
and employees of his department. He has control over the executive department, bureaus and offices. Corollary to the power of
control, the President also has the duty of supervising the enforcement of laws for the maintenance of general peace and public
order. Thus, he is granted administrative power over bureaus and offices under his control to enable him to discharge his duties

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 10

effectively. Administrative power is concerned with the work of applying policies and enforcing orders as determined by proper
governmental organs. It enables the President to fix a uniform standard of administrative efficiency and check the official conduct of
his agents. To this end, he can issue administrative orders, rules and regulations.From these precepts, the Court holds that A.O. No.
308 involves a subject that is not appropriate to be covered by an administrative order.
Administrative Code of 1987:

A general law and incorporates in a unified document the major structural, functional and procedural principles of
governance and embodies changes in administrative structures and procedures designed to serve the people.
7 Books of the Code:
Book 1: Sovereignty and General Administration
Book 2: Distribution of powers of the 3 branches of the government
Book 3: Office of the President
Book 4: Executive Branch
Book 5: Constitutional Commissions
Book 6: National Government Budgeting
Book 7: Administrative Procedure
Administrative rules and regulations:

Rules and regulations issued by administrative or executive officers in accordance with, and as authorized by law have the
force and effect of law or partake of a statute.
Requirements for the validity of Administrative rules and Regulations:
1. Rules should be germane to the objects and purposes of the law
2. The regulations be not in contradiction with, but conform to, standards that the law prescribes
3. That they be for the sole purpose of carrying into effect the general provisions of the law
4. Law cannot be extended nor its terms and provisions restricted
Fundamental Rule in Administrative Law:

To be valid, administrative rules and regulations must be issued by authority of a law and must not contravene the
provisions of the Constitution
Rule-making power of a public administrative agency:

a delegated legislative power

may not use the power to bridge the authority to enlarge its power beyond the scope intended.

May not issue rules and regulations which are inconsistent with the provisions of the Constitution or a statute

must not restrict or enlarge

Two test of a valid law as delegation of legislative power:

law must be complete in itself must set forth policy to be executed, carried out or implemented by the delegate

law must fix a standard the limits of which are sufficiently determinate or determinable- to which the delegate must
conform in the performance of his functions
standard may be:
expressed or implied from the policy and purpose of the act as a whole
marks its limits
maps out boundaries
specifies the public agency to apply it

adequate standards:
simplicity and dignity
public interest
public welfare
interest of law and orders
justice and equity
substantial merit of the case
adequate and efficient instruction
Cemco Holdings, Inc. V National Life Insurance

Rules and regulations when promulgated in pursuance of the procedure or authority conferred upon the administrative
agency by law, partake of the nature of a statute, and compliance therewith may be enforced by a penal sanction provided
in the law.

The details and the manner of carrying out the law are often times left to the administrative agency entrusted with its
enforcement.
United BF Homeowner's Assn. V BF Homes, Inc.,

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 11

HIGC has no jurisdiction to hear the case. Originally, administrative supervision was vested by law with the SEC but
pursuant to PD902-A, this function was delegated to the HIGC. As stated in PD92-A, HIGC was given the original and exclusive
jurisdiction to hear and decide homeowners disputes a rising out of the following intra-corporate relations:
1. Between and among members of the association;
2. Between any and/or all of them and the association of which they are member; and
3. In so far as it concerns its right to exist as a corporate entity, between the association and the state.
When HIGC adopted its revised rules of procedure in the hearing of homeowners disputes, it added the phrase between
the association and the state/general public or other entity. The HIGC went beyond the authority provided by the law when it
promulgated the revised rules of procedure. There was a clear attempt to unduly expand the provisions of Presidential Decree 902A. The inclusion of the phrase GENERAL PUBLIC OR OTHER ENTITY is a matter which HIGC cannot legally do .
The rule-making power of a public administrative body is a delegated legislative power, which it may not use either to
abridge the authority given it by Congress or the Constitution or to enlarge its power beyond the scope intended. The rule-making
power must be confined to details for regulating the mode or proceedings to carry into effect the law as it has been enacted, and it
cannot be extended to amend or expand the statutory requirements or to embrace matters not covered by the statute." 26 If a
discrepancy occurs between the basic law and an implementing rule or regulation, it is the former that prevails. Moreover, where
the legislature has delegated to an executive or administrative officers and boards authority to promulgate rules to carry out an
express legislative purpose, the rules of administrative officers and boards, which have the effect of extending, or which confict
with the authority-granting statute, do not represent a valid exercise of the rule-making power but constitute an attempt by an
administrative body to legislate. "A statutory grant of powers should not be extended by implication beyond what may be
necessary for their just and reasonable execution.
China Bank Corp v Members of Board of Trustees
Issue/Held: Did the Board act with grave abuse of discretion amounting to lack of jurisdiction in issuing the Amendment and
Guidelines in imposing the requirement of both a superior housing plan and a provident plan? YES (the Board acted in excess of
jurisdiction)
Ratio:
The rules and regulations which are the product of a delegated power to create new/additional legal provisions that have
the effect of law, should be within the scope of the authority granted by the legislature to the Administrative agency.
Administrative regulations adopted under legislative authority must be in harmony with the provisions of the law, and
should be for the sole purpose of carrying into effect its general provisions.
The rule making power must be confined to details for regulating the mode or proceeding to carry into effect the law as it
was enacted.
The power cannot be extended to amending or expanding the statutory requirements.
RE: The law
There is no question that the Board has rule-making powers:

Sec 5 of RA 7742 provides that within 60 days from the approval of the Act, the Board of Trustees of the HDMF shall
promulgate the rules and regulations necessary for the effective implementation.
So the Board did promulgate the rules and regulations.

In this case, the legal meaning of the words and/or should be taken in its ordinary signification (meaning: either and
or which means butter and/or eggs means butter and eggs or butter or eggs).
The intention of the legislature in using and/or is that the word and and the word or are to be used
interchangeably.
It is clear that Sec19 of PD 1752, intended that an employer with a provident plan or an employee housing plan superior to
that of the Pag-IBIG fund may obtain exemption.
If the law had intended that the employee should have both a superior provident plan and a housing plan in order to
qualify for exemption, it would have used the words and instead of and/or.
The law obviously contemplates that the existence of either plan is considered as sufficient basis for the grant of an
exemption. To require the existence of both would impose a more stringent condition for waiver which was not envisioned
by the law.
By removing the disjunctive word or in the Guidelines, the Board has exceeded its authority.
Dispositive: The
Amendment and the Guideline, insofar as they require that an employer should have both a provident/retirement
plan superior to that of the Pag-IBIG housing program are declared null and void.

Cases: Validity of EO, rules and regulations

Executive Secretary v Southwing Heavy Industries, Inc.
Police power is inherent in a government to enact laws, within constitutional limits, to promote the order, safety, health,
morals, and general welfare of society . It is lodged primarily with the legislature . By virtue of a valid delegation of legislative
power, it may also be exercised by the President and administrative boards, as well as the lawmaking bodies on all municipal levels,

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 12

including the barangay. Such delegation confers upon the President quasi-legislative power which may be defined as the authority
delegated by the law-making body to the administrative body to adopt rules and regulations intended to carry out the provisions of
the law and implement legislative policy provided that it must comply with the following requisites:
(1) Its promulgation must be authorized by the legislature
(2) It must be promulgated in accordance with the prescribed procedure;
(3) It must be within the scope of the authority given by the legislature; and
(4) It must be reasonable.
The first requisite was actually satisfied since EO 156 has both constitutional and statutory bases.
Anent the second requisite, that the order must be issued or promulgated in accordance with the prescribed procedure, the
presumption is that the said executive issuance duly complied with the procedures and limitations imposed by law since the
respondents never questioned the procedure that paved way for the issuance of EO 156 but instead, what they challenged was the
absence of substantive due process in the issuance of the EO.
In the third requisite, the Court held that the importation ban runs afoul with the third requisite as administrative
issuances must not be ultra vires or beyond the limits of the authority conferred. In the instant case, the subject matter of the laws
authorizing the President to regulate or forbid importation of used motor vehicles, is the domestic industry. EO 156, however,
exceeded the scope of its application by extending the prohibition on the importation of used cars to the Freeport, which RA 7227,
considers to some extent, a foreign territory. The domestic industry which the EO seeks to protect is actually the "customs territory"
which is defined under the Rules and Regulations Implementing RA 7227 which states: "the portion of the Philippines outside the
Subic Bay Freeport where the Tariff and Customs Code of the Philippines and other national tariff and customs laws are in force and
effect."
Regarding the fourth requisite, the Court finds that the issuance of EO is unreasonable. Since the nature of EO 156 is to
protect the domestic industry from the deterioration of the local motor manufacturing firms, the Court however, finds no logic in all
the encompassing application of the assailed provision to the Freeport Zone which is outside the customs territory of the
Philippines. As long as the used motor vehicles do not enter the customs territory, the injury or harm sought to be prevented or
remedied will not arise.
The Court finds that Article 2, Section 3.1 of EO 156 is VOID insofar as it is made applicable within the secured fenced-in
former Subic Naval Base area but is declared VALID insofar as it applies to the customs territory or the Philippine territory outside
the presently secured fenced-in former Subic Naval Base area as stated in Section 1.1 of EO 97-A (an EO executed by Pres. Fidel V.
Ramos in 1993 providing the Tax and Duty Free Privilege within the Subic Freeport Zone). Hence, used motor vehicles that come
into the Philippine territory via the secured fenced-in former Subic Naval Base area may be stored, used or traded therein, or
exported out of the Philippine territory, but they cannot be imported into the Philippine territory outside of the secured fenced-in
former Subic Naval Base area.
Petitions are PARTIALLY GRANTED provided that said provision is declared VALID insofar as it applies to the Philippine
territory outside the presently fenced-in former Subic Naval Base area and VOID with respect to its application to the secured
fenced-in former Subic Naval Base area.
Dela Cruz v Paras
ISSUE: Whether or not the ordinance is valid
The SC ruled against Paras. If night clubs were merely then regulated and not prohibited, certainly the assailed ordinance would
pass the test of validity. SC had stressed reasonableness, consonant with the general powers and purposes of municipal
corporations, as well as consistency with the laws or policy of the State. It cannot be said that such a sweeping exercise of a
lawmaking power by Bocaue could qualify under the term reasonable. The objective of fostering public morals, a worthy and
desirable end can be attained by a measure that does not encompass too wide a field. Certainly the ordinance on its face is
characterized by overbreadth. The purpose sought to be achieved could have been attained by reasonable restrictions rather than by
an absolute prohibition. Pursuant to the title of the Ordinance, Bocaue should and can only regulate not prohibit the business of
cabarets.
Lupangco v CA
The enforcement of Resolution No. 105 is not a guarantee that the alleged leakages in the licensure examinations
will be eradicated or at least minimized. Making the examinees suffer by depriving them of legitimate means of review or
preparation on those last three precious days when they should be refreshing themselves with all that they have learned in the
review classes and preparing their mental and psychological make-up for the examination day itself would be like uprooting
the tree to get rid of a rotten branch. What is needed to be done by the respondent is to find out the source of such leakages and stop
it right there. If corrupt officials or personnel should be terminated from their loss, then so be it. Fixers or swindlers should be
fushed out. Strict guidelines to be observed by examiners should be set up and if violations are committed, then licenses
should be suspended or revoked.
Lucena Grand Terminal Inc. V JAC Liner

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 13

Issue: Whether or not the ordinance satisfies the requisite of valid exercise of police power, i.e. lawful subject and lawful means.
Held: The local government may be considered as having properly exercised its police power only if the following requisites are
met:
(1) the interests of the public generally, as distinguished from those of a particular class, require the interference of the State,
and
(2) the means employed are reasonably necessary for the attainment of the object sought to be accomplished and not unduly
oppressive upon individuals. Otherwise stated, there must be a concurrence of a lawful subject and lawful method
The questioned ordinances having been enacted with the objective of relieving traffic congestion in the City of Lucena, they
involve public interest warranting the interference of the State. The first requisite for the proper exercise of police power is thus
present. This leaves for determination the issue of whether the means employed by the Lucena Sangguniang Panlungsod to attain
its professed objective were reasonably necessary and not unduly oppressive upon individuals. The ordinances assailed herein are
characterized by overbreadth. They go beyond what is reasonably necessary to solve the traffic problem. Additionally, since the
compulsory use of the terminal operated by petitioner would subject the users thereof to fees, rentals and charges, such measure is
unduly oppressive, as correctly found by the appellate court. What should have been done was to determine exactly where the
problem lies and then to stop it right there.
The true role of Constitutional Law is to effect an equilibrium between authority and liberty so that rights are exercised
within the framework of the law and the laws are enacted with due deference to rights. It is its reasonableness, not its effectiveness,
which bears upon its constitutionality. If the constitutionality of a law were measured by its effectiveness, then even tyrannical laws
may be justified whenever they happen to be effective.
DAR v Sutton
ISSUE: Whether or not DAR has exceeded its power in issuing the assailed A.O. regulating livestock farms which have been
exempted by the Constitution from the coverage of agrarian reform.
HELD: Yes. The A.O. sought to regulate livestock farms by including them in the coverage of agrarian reform and prescribing a
maximum retention limit for their ownership. However, the deliberations of the 1987 Constitutional Commission show a clear
intent to exclude, inter alia, all lands exclusively devoted to livestock, swine and poultry- raising. The Court clarified in the Luz
Farms case that livestock, swine and poultry-raising are industrial activities and do not fall within the definition of "agriculture" or
"agricultural activity."
The fundamental rule in administrative law is that, to be valid, administrative rules and regulations must be issued by
authority of a law and must not contravene the provisions of the Constitution. The rule-making power of an administrative agency
may not be used to abridge the authority given to it by Congress or by the Constitution. Nor can it be used to enlarge the power of
the administrative agency beyond the scope intended. Constitutional and statutory provisions control with respect to what rules
and regulations may be promulgated by administrative agencies and the scope of their regulations.
Administrative agencies are endowed with powers legislative in nature, i.e., the power to make rules and regulations. They
have been granted by Congress with the authority to issue rules to regulate the implementation of a law entrusted to them.
Delegated rule-making has become a practical necessity in modern governance due to the increasing complexity and variety of
public functions. However, while administrative rules and regulations have the force and effect of law, they are not immune from
judicial review. They may be properly challenged before the courts to ensure that they do not violate the Constitution and no grave
abuse of administrative discretion is committed by the administrative body concerned.
Maxima Realty Management v Parkway Real Estate Dev.
While the 1994 HLURB Rules of Procedure suggest a 30-day period of appeal under Section 27, the same stipulation also
provides for following Administrative Order No. 18 series of 1987, which starts with
Section 1. Unless otherwise governed by special laws, an appeal to the Office of the President shall be taken within thirty (30) days
from receipt by the aggrieved party of the decision/resolution/order complained of or appealed from.
This Administrative Order qualifies such 30-day period, and because of the two PDs mentioned above that falls squarely
on the controversy (a sale of a condo), the 15-day period applies.
In fact, Sec. 27 of HLURB 1994 Rules of Procedure no longer holds true for being in confict with the provisions of the
aforementioned presidential decrees. For it is axiomatic that administrative rules derive their validity from the statute that they are
intended to implement. Any rule which is not consistent with [the] statute itself is null and void.
In the case at bar, the 15-day period applies, so if the adverse decision was received on April 19, 1994, the appeal to the
Office of the President should have been filed on May 4, 1994. May 10 was beyond the reglementary period.
Administrative rule and interpretation distinguished
Rule makes new law with the force and effect of a valid law; binding on the courts even if they are not in agreement
with the policy stated therein or with its innate wisdom
Interpretation merely advisory for it is the courts that finally determine what the law means

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 14

Administrative construction is not necessarily binding upon the courts; it may be set aside by judicial department (if there
is an error of law, or abuse of power or lack of jurisdiction or GAD grave abuse of discretion)

Supreme Court rulemaking power: The 1987 Constitution grants the SC the power to promulgate rules concerning the protection
and enforcement of constitutional rights, pleading, practice, and procedure in all courts, the admission to the practice of law, the
Integrated Bar, and legal assistance to the underprivileged.
Rules of SC shall provide:
1. A simplified and inexpensive procedure for the speedy disposition of cases
2. Shall be uniform for all courts of the same grade
3. And shall not diminish, increase, or modify substantive rights
Supreme Court circulars; rules and regulations
See Art 8, Sec. 5(5) 1987 Constitution

See Art. 6, Sec. 30 1987 Constitution

It has been held that a law which provides that a decision of a quasi-judicial body be appealable directly to the SC,

if enacted without the advice and concurrence of the SC, ineffective

Remedy or applicable procedure go to CA

Rules of Court product of the rule-making power of the SC

Power to repeal procedural rules

No power to promulgate rules substantive in nature (unlike the legislative department)

Substantive rules if it affects or takes away vested rights; right to appeal

Legislative power of local Government units: Refers to the power of local legislative bodies to enact ordinances, consisting of:
1. Barangay ordinance
2. Municipal irdinance
3. City ordinance
4. Provincial Ordinance
Requisites for valid local ordinance:
1. Must not contravene the Constitution or any statute
2. Must no be unfair or oppressive
3. Must not be partial or discriminatory
4. Must not prohibit but may regulate trade
5. Must be general and consistent with public policy
6. Must not be unreasonable
Barangay Ordinance: subject to review by the sangguniang bayan or sangguniang panlungsod to determine whether it is
consistent with law or with municipal or city ordinance
SP or SB shall take action within 30 days from submission
if it does not take action within said period: approved if consistent
if inconsistent: will be returned to the SB concerned in which effectivity is suspended
Municipal Ordinance: Lodged in Sangguniang bayan
Majority of the quorum voting, ordinance is passed
ordinance sent to Mayor within 10 days for approval or veto; if not acted upon, ordinance is presumed approved; if vetoed, can be
overriden by 2/3 of all members
approved ordinance is passed to Sangguniang panlalawigan for review
= within 30 days may invalidate in whole or in part and its action is final; if there's inaction within 30 days, it is deemed valid
City Ordinance: Vested in Sangguniang panglungsod
Majority of the quorum voting, ordinance is passed
Submitted to Mayor within 10 days
= approve
= veto override by 2/3 of all members approved
= inaction deemed approved
if city or component city: submit to Sangguniang panlalawigan for review which shall take action within 30 days, otherwise, it
will be deemed valid
Provincial Ordinance: Sangguniang panlalawigan: majority of quorum voting, passage of ordinance
Forwarded to the Governor who within 15 days from shall
= approve
= veto: 2/3 of all members:approved
= inaction: deemed approved

ELS: Statutory Construction

Midterms Reviewer

Rae Gammad 15