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Sterling Selections Corporation v LLDA installations are exempted from the above subject

Sterling Selections Corporation v Laguna Lake Development Authority (LLDA) and requirements
Joaquin G. Mendoza, in his capacity as General Manager of LLDA xxxx
30. Cottage industries including
Keywords: Sterling Selections, silver jewelry, cottage industry - stuffed toys manufacturing
Nature: petition for review on certiorari - handicrafts
Date: March 30, 2011 - rattan/furniture manufacturing
Ponente: J. Nachura  The provision did not restrict exemption to the three activities mentioned.
The word include means “to take in or comprise as a part of a whole The
Facts: principle of expressio unius est exclusion alterius does not apply where other
 Sterling Selections Corporation is a company engaged in the fabrication of circumstances indicate that the enumeration was not intended to be
sterling silver jewelry which are manufactured in one of the homes of its exclusive, or where the enumeration is by way of example only. It does not
stockholders. apply when words are mentioned by way of example.
 Neighbors of the respondents complained about the loud unceasing noise  However, the nature of the activity is only one of the factors to consider in
and emission of toxic fumes. determining whether it is a cottage industry or not.
 Complaints reached the LLDA which had territorial and functional jurisdiction o The law then in force was RA 6977 where to qualify as a cottage
over the matter. industry, the business must have a total asset of P50,001-P500,000.
 LLDA sent a Notice of Violation and a Cease and Desist Order to the company The company claimed that its assets only amount to P312,500.
when it was found that it is operating without an LLDA Clearance and Permit What it actually represents is the capital stock subscribed by the
as required by RA 4850. stockholders and not its total assets. In the basic information of the
 The Office of the Mayor of Quezon City, where the business is situated, issued company found by the Board of Investments, the total sales of the
a Closure Order after finding out that it was running a jewelry manufacturing company amounts to P37,160,340 based on its 1998 ITR. Therefore,
plant with an “Office Only” permit and for violation of Zoning and it is not a cottage industry and consequently, it is not exempted
Environmental Laws. from the requirement to secure an LLDA clearance.
 The company claims that it is exempted from the requirement to secure a
permit from the LLDA because it is a cottage industry.

Issue/s:
 W/N Sterling Selections Company is a cottage industry – NO

Held/Ratio:
 RA 8502 or the Jewelry Industry Development Act of 1998 is aimed to
support, promote, and encourage growth and development of small and
medium scale jewelry industries. It did not use the term cottage industry,
instead, it characterized businesses engaged in jewelry-making as micro/small
scale/medium scale/large scale jewelry enterprise.
 RA 4850 created the LLDA for the development of the Laguna Lake.
o LLDA’s Resolution No. 41 Series of 1997 required development
activities, programs, projects, and installations to secure a
clearance. It also set out activities exempted from complying with
the clearance requirement.
 Sec. 2. Exemptions. The following activities, projects, or

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