Mifaa, Divine Grace M.

13-11233

Facts
This is a petition for review on certiorari assailing the Decision and Resolution
of the CA which reversed and set aside the Orders of petitioner Public Hearing
Authority of the LLDA and denied its Motion for Reconsideration.

The instant petition arose from an inspection conducted on February 4,

2002 by the Pollution Control Division of the LLDA of the wastewater
collected from respondents SM City Manila branch.
Sample collected from the said facility failed to conform with the effluent
standards for inland water imposed in accordance with law.
On March 12, 2002, LLDA informed SM City Manila of its violation:
-

directing the same to perform corrective measures to abate or control the

pollution caused by the said company; and

ordering the latter to pay P1,000 per day of discharging pollutive

wastewater to be computed from February 4, 2002 (date of inspection),
until full cessation of discharging pollutive wastewater.

March 23, 2002: In a letter, respondents Pollution Control

Officer requested the LLDA to conduct a re-sampling of
their effluent, claiming that they already took the
measures to enable their sewage treatment plant to meet
the standards set forth by the LLDA.

In an Order to Pay dated October 2, 2002, petitioner

required respondent to pay a fine of P50,000 which
represents the accumulated daily penalty computed from
February 4 March 25, 2002.
The respondent issued follow up letters which the
petitioner treated as Motion for Reconsideration, where
respondent asked for a waiver of the fine assessed by
the LLDA in its March 12, 2002 Notice of Violation and
Order of October 2, 2002

Requests for reconsideration were denied.

On May 27, 2003, the LLDA issued another Order to
Pay, requiring payment of the fine within 10 days
from respondents receipt of a copy of the said order.
Aggrieved, respondent filed a petition for certiorari
with the CA praying for the nullification of the Orders
of the LLDA.

Ruling of the CA
CA rendered its Decision, granting and setting aside
the assailed Orders of the LLDA
Ruling that an administrative agencys power to
impose fines may not be implied
The CA found that under its charter RA 4850, the
LLDA is not expressly granted any power or authority
to impose fines for violations of effluent standards set
by law.

The assailed Orders of the petitioner are issued

without jurisdiction and with grave abuse of
discretion.

Issue
Whether or not the Laguna Lake Development
Authority has the power to impose fines

Ruling of the SC
Yes.
The LLDA has the power to impose fines
exercise of its function as a regulatory and
judicial body with respect to pollution cases
Laguna Lake region. (Pacific Steam Laundry,
LLDA)

in the
quasiin the
Inc. v.

Under Section 4-A of RA 4850, the LLDA is entitled to

compensation for damages resulting from failure to meet
established and effluent standards.
In addition, Section 4 (d) of EO No. 927, which further defines
certain functions and powers of the LLDA, provides that the
LLDA has the power to make, alter or modify orders requiring
the discontinuance of pollution specifying the conditions and the
time within which such discontinuance must be accomplished.
Section 4 (i) of the same EO states that the LLDA is given
authority to exercise such powers and perform such other
functions as may be necessary to carru out its duties and
responsibilities.
Also, Section 4 (c) authorizes the LLDA to issue orders or
decisions to compel compliance with the provisions the EO and
its implementing rules and regulations only after proper notice
and hearing.

The intendment of the law, as gleaned from Section

(i) of EO No. 927, is to clothe the LLDA not only with
the express powers granted to it, but also those
which are implied or incidental but, nonetheless, are
necessary or essential for the full proper
implementation of its purposes and functions.
Petition is GRANTED. The Orders of the LLDA are
reinstated and affirmed.

Questions
1.

What was the penalty imposed by the LLDA to SM City Manila?

The LLDA ordered SM City manila to pay P1,000 per day of discharging pollutive
wastewater computed from February 4, 2002 (date of inspection), until full cessation of
discharging pollutive wastewater.
2. The LLDA has jurisdiction over what area?
The Laguna Lake region.
The jurisdiction and scope of authority of the LLDA comprises the towns of Rizal and
Laguna provinces, towns of Silang, General Mariano Alvarez, Carmona, Tagaytay City in
Cavite, Lucban, Quezon, City of Tanauan, towns of Sto. Tomas and Malvar in Batangas,
Cities of Marikina, Pasig, Taguig, Muntinlupa, Pasay, Caloocan, Quezon and town of
Pateros in Metro Manila