Chapter 1 GENERAL CONSIDERATIONS Nature ADMINISTRATIVE LAW is defined by Dean Roscoe Pound as “that branch of modern law under which the executive de- partment of the government, acting in a quasi-legislative or quasi-judicial capacity, interferes with the conduct of the individual for the purpose of Promoting the well-being of the community, as under laws regulating public interest, profes- sions, trades and callings, rates and Prices, laws for the pro- tection of public health and safety, and the promotion of public convenience.”' This definition embodies the fundamental characteris- tics of Administrative Law. Thus, it Suggests, correctly, that this field of law is a recent development, being a consequence of the ever-increasing complexities of society and the prolif- eration of problems of government that cannot readily or effectively by addressed by the traditional public agencies or solved by the other disciplines of public law. The definition likewise indicates the two major powers of the administrative agency, to wit, its quasi-legislative authority or rule- power and its quasi-judicial power or adjudicatory function. Finally, it announces both the object and scope of Adminis- trative Law, which is essentially the regulation of private right for public welfare. Professor Goodnow describes the discipline as “that part of public law which fixes the organization of the government and determines the competence of the authorities who exe- cute the law and indicates to the individual remedies for the violation of his rights.” ' Growth of American Administrative Law, p. 110. * Goodnow, Comparative Administrative Law, p. 8. 1of the public institutions to which ad- public law in terms pul or assistance and the Sera cae allah they are established to serve. For the reasons given above, Dean Pound's definition of Administrative Law shall be adopted in this study. Origin and Development The origin of Administrative Law is in legislation. Its justification is expediency. It is the result of the pervasive prolixity of the modern age and the increasing difficulties confronting the govern- ment, which, given the sophisticated nature of the problems it must address, is no longer able to employ, with the same activities multiplied, it became legislature to deal directh increasingly difficult for the lem, and for the judiciary to deen sy with every prob- *75 NY Pa. L. Rev. 615,GENERAL Consiperanions e enforcement of the law also became more complicated as the areas of concern of the general public expanded. It was felt that the legislative and judicial departments no longer had either the time or the needed expertise to at- tend to these new problems, not to mention the lack of inter- est, particularly in the legislature, as most of these problems did not immediately affect the constituents of its members. Insofar as the courts were concerned, there was a natural reluctance to interfere with these problems which they felt were the concern of and should consequently be resolved by the executive department. The courts have enough to deal with without concerning themselves with the purely admin- istrative tasks of the executive department. It is to be stressed that this reluctance is justified under the doctrine of separa- tion of powers. The obvious solution was delegation of power. Thus, hesitantly at first but later even with alacrity, the legislature began authorizing certain specialized bodies to lay down rules for the regulation of the matters entrusted to their jurisdiction and, additionally, to apply these rules in the ad- judication of factual issues relating to these matters, subject only to certain broad policies intended to guide and limit them in the exercise of their delegated power. The initial demonstrated success of this experiment encouraged further delegations, with the result that the number of these bodies grew to proportions that have led to the tenable observation that, in the legislature, delegation has become the rule and non-delegation, the exception. An illustration is the regulation of common carriers, like buses and passenger jeeps. It is now accepted that such matters as the type of vehicles to be used by the operator, the routes through which he may operate, the conveniences he should offer to his passengers and the safety devices he should install are better provided for by detailed administra- tive rules, promulgated by persons with the needed expertise and time, rather than by general statute. such questions as who may be permitted to operate, in the light of the qualifications of the applicants andPriuprine ApministraTive Law sity for the services, or the fare that may be the making into account the cost of fuel and the distance of the trip, these matters are better resolved not by the legis- jature or, even less, by the courts of justice but by the ap- propriate administrative body in the exercise of its fact- finding and adjudicatory powers. By delegation, therefore, the legislature is able to relieve itself of the responsibility to legislate directly on relatively minor matters and of attending as well to the adjudication of essentially factual questions that more properly pertain to the executive authorities. In this manner, the legislature can concentrate on matters of national or greater significance. Present Status Being the latest development in the field of Political Law, Administrative Law is still in a state of flux, with many of its rules still to achieve the permanence of the more settled prin- ciples in its allied disciplines. Its boundaries are as yet unde- fined. It is still undergoing a process of experimentation. The tentativeness of this modern branch of public law is illustrated by the instability of the administrative body itself, which is created today, abolished tomorrow and revived the next day—all often without exciting public curiosity or suspi- cion, The people acknowledge that Administrative Law, at this point, must proceed on a trial-and-error basis as it seeks to discover the most acceptable ways by which it may ensure the proper enforcement of law with a minimum of interfer- ence with individual rights. Sources Administrative Law Sliced? elses is derived from four sources or is of (1) Constitutional or p Ree ee mene: creating ort ‘42 Am. Jur. 286.GeNERAL Consiveranions . Examples of this class are Article IX of the Constitution on the Constitutional Commissions; the Social Security Act which established the Social Security Commission; and the Administrative Code of 1987 or Executive Order No. 292 on. among others, the regular departments and bureaus of the Executive Branch; and Presidential Decree No. 902-A, as amended, on the Securities and Exchange Commission. All of these laws establish the aforementioned administrative agen- cles and determine their organizational structures, provide for the functions and powers of their officers, and confer upon them authority over quasi-judicial matters or conflicts. (2) Decisions of courts interpreting the charters of ad- ministrative bodies and defining their powers, rights, inhibitions, among others. and the effects of their de- terminations and regulations. Included in this class are such decisions of the Supreme Court as Aratuc vs. Commission on Elections’ and Maceda vs. Energy Regulatory Board.° (3) Rules and regulations issued by the administrative bodies in pursuance of the purposes for which they were created. Among the rules which fall under this class are the Om- nibus Rules Implementing the Labor Code, as Promulgated by the Department of Labor and Employment, the circulars of the Central Monetary Authority on interest rates, and the regulations of the Commission on Immigration and Deporta- tion, not to mention the rules promulgated by the Securities and Exchange Commission as well as the Bureau of Patents, Trademarks and Technology Transfer on matters these agen- cies are called upon to regulate, all of which are promulgated pursuant to the rule-making or quasi-legislative prerogatives usually assigned to administrative bodies. * 88 SCRA 251. ° GR Nos. 95203-05, December 18, 1990; 192 SCRA 363.PHIUPPINE ADMINISTRATIVE LAW orders of @ ee are of controversies arising in This class refers to the adjudications ei ane agencies in the exercise of their quasi-judi eS = sees the awards of the National Labor Relations ee Se respect to money claims of employees and the rulings = Securities and Exchange Commission on intra-corpo: controversies. Administration The term “administration” is understood in two senses, viz., as an institution and as a function. In the first sense, administration refers to the aggregate of individuals in whose hands the reins of government are for the time being.’ It refers to the persons who actually run the government during their prescribed terms of office. This in- cludes all the personnel in the executive branch who are charged with the enforcement of the law. Administration is to be distinguished from government, which is the agency or instrumentality through which the will of the State is formu- lated, expressed and realized.® In other words, it is the ad- ministration, which is transitional in nature, which actually mans the government, which, in turn, is a more or less per- manent fixture in every State. In the second sense, administration means the actual running of the government by the executive authorities through the enforcement of laws and the implementation of policies. Any activity outside of legislation and the rendering of judicial decisions will come under administration, as when the authorities collect taxes, drill an army, prosecute law- breakers, enforce sanitary rules, investigate certain busi- nesses and regulate the prices of prime commodities.” "US vs. Dorr, 2 Phil. 339, * Poindexter vs. Greenhox . - Greenhow, 114 US Goodnow. Comparative Ae Law, p. 5.General Constperanions Administration as an activity 1s either internal or exter- nal. Intemal administration covers those rules defining the relations of public functionaries inter se and embraces whole range of the law of public officers. Thus, provisions regarding the qualifications, selection, powers, rights, duties and li- abilities of public officers are considered part of administra- tive law. Internal administration consists, among others, of rules laid down in a particular agency or office, like those prescribing work assignments or job descriptions, uniforms, procedures for submission of reports, and the like, all of which are imposed by the superior in said office upon his subordinates. External administration, on the other hand, defines the relations of the public office with the public in general. The rules prescribed thereunder do not necessarily affect the personnel of the office but are promulgated for observance by those who have dealings or transactions with said office. Among the manifestations of external administration are the rules of the Energy Regulatory Commission on adjustments in the prices of oil products and of the Philippine Overseas Employment Administration on recruitment for overseas employment. These rules are promulgated by the administra- tive agency in the exercise of its quasi-legislative authority for the regulation of specific matters placed under its jurisdic- tion. Distinguished from Law Law is an impersonal command provided with sanctions to be applied in case of violation, while Administration is preventive rather than punitive and is accepted to be more personal than law. Its directive having been established, law steps back, folds its arms and maintains a watchful eye on those who would violate its order. The culprit, whoever he may be, is then pounced upon and visited with the threatened punish- ment. Being impersonal, law is concerned only with obedi-8 Priuppine ApminisTRaTIVe Law ence to its mandate and not with the circumstances or ex- cuses of the violator. Administration, on the other hand, has a more sympa- thetic regard for the individual and seeks to spare him from the punishments of the law by persuading him to observe its commands. Thus, the Bureau of Internal Revenue announces, usu- ally through the mass media for better effect, the deadlines for tax payments, urging the citizens to pay their taxes on time, and providing legal and moral justifications for prompt and correct payment by the individual of the taxes due on his income and other activities. The Bureau publishes and dis- tributes as well primers on the value added tax system or on the gross compensation tax scheme, which are designed for the people to better understand these complicated laws. All these are intended to prevent the enforcement by the Bureau of Internal Revenue of sanctions specified in tax laws against tardy taxpayers or those who altogether fail to pay their taxes. Administration may also clarify certain ambiguous pro- visions in statutes through the issuance of interpretative regulations meant to make it easier for the people to under- stand and so obey the law. Thus, the Bureau of Internal Revenue periodically promulgates revenue regulations and the Department of Labor and Employment has issued the Omnibus Rules Implementing the Labor Code precisel simplify their enforcement of the laws which thi are ae upon to execute. ws While the personal nature of Administration is erally viewed as a weleome balancing factor against the harchnee,GENERAL CONSIDERATIONS y applies to anyone committing the offense. Even so, the fiscal conducting the preliminary investigation may declare that there is no prima facie case against the Person charged with the offense and so prevent his punishment. Conversely, the same fiscal may decide to file the seemingly appropriate in- formation against the respondent despite the clear absence of evidence tending to support a prima facie case against the respondent. Either of these findings may be prompted not by an objective consideration of the evidence but by the relations of the respondent, or the complainant, with the fiscal. This defect is, however, not peculiar to administrative agencies and may attend, regrettably, even proceedings taken before the traditional departments of government which are, after all, manned by human beings, who are prone to bias, error and failings of the will.