Corona v.

United Harbor PIlots Association

Summary Cases:

● Corona vs. United Harbor Pilots Association

Subject: DueProcess, Right to Exercise Profession, License

Facts:

The Philippine Ports Authority (PPA)issued an Administrative Order which provided that that all
appointments for harborpilots made by the PPA will have to be renewed every year, and that theexisting
appointments made will only be valid until December 1991. Thus,respondents sought to have the
implementation of this order suspended. In themeantime, the PPA issued the guidelines for the issuance
of new appointments.These issuances were thus brought before the courts by the respondents on
thequestion of their constitutionality based on violation of their right toexercise their profession and on
due process grounds.

Held:

Due Process

1. In order to fall within the aegis of thedue process provision, two conditions must concur, namely, that
there is adeprivation and that such deprivation is done without proper observance of due process.

2. When one speaks of due process of law, however, a distinction must bemade between matters of
procedure and matters of substance.

3. In essence, procedural due process ?refers to the method or manner bywhich the law is enforced,?
while substantive due process ?requires that thelaw itself, not merely the procedures by which the law
would be enforced, isfair, reasonable, and just.?

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4. Asa general rule, notice and hearing, as the fundamental requirements ofprocedural due process, are
essential only when an administrative bodyexercises its quasi-judicial function. In the performance of
itsexecutive or legislative functions, such as issuing rules and regulations, anadministrative body need
not comply with the requirements of notice andhearing.

Right to Exercise Profession

5. Pilotage,just like other professions, may be practiced only by duly licensedindividuals. Licensure is
?the granting of license especially to practicea profession.? It is also ?the system of granting licenses (as
for professionalpractice) in accordance with established standards.?

6. Beforeharbor pilots can earn a license to practice their profession, they literallyhave to pass through
the proverbial eye of a needle by taking, not one but fiveexaminations, each followed by actual training
and practice.

7. However,pre-evaluation cancellation is constitutionally infirm and unreasonable, andconstitutes as

deprivation of property without due process of law.

License

8. Alicense is a right or permission granted by some competent authority to carryon a business or do an

act which, without such license, would be illegal.

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