Facts:

The case of Bangued Water District v. Hon. Harold M. Hernando, Presiding Judge, Branch I of the Court of First Instance of the Province of Abra, Dr. Ben Bringas, et al. was filed under G.R. No. 54043, dated November 28, 1980. The Bangued Water District, represented by its Acting Chairman Edgardo B. Hojilla, filed a petition for certiorari against Judge Hernando and private respondents Dr. Ben Bringas and others. The context of the case involves a compromise settlement reached by the parties involved in Civil Case No. 1257, which included an agreement for the respondents to enhance the Bangued Water System amounting to P3,310,000.00. This improvement was to commence immediately upon the signing of the agreement. In exchange for this undertaking, the petitioners—a group represented by the Bangued Water District—waived their claims for damages related to the management and accounting of funds and materials associated with the Bangued Water District. The settlement also established

...

Facts:

Background of the Case

• The Bangued Water District, represented by Edgar B. H. Hojilla in his capacity as Acting Chairman of the Board of Directors, filed a petition for certiorari.
• The petition sought relief against Hon. Harold M. Hernando, Presiding Judge, Branch I of the Court of First Instance of the Province of Abra, as well as against Dr. Ben Bringas and other private respondents.

Relief Sought and Petition Details

• The petitioner requested a writ of certiorari to have the proceedings in the lower court certified for review.
• A preliminary injunction was also sought to protect the rights of the petitioner pending the proceedings.
• After due hearing, the petitioner prayed that judgment be rendered annulling or modifying the respondent judge’s proceedings in accordance with the law.

Emergence of a Compromise Settlement

• Subsequent to the filing of the petition, both parties in Civil Case No. 1257 entered into a "Compromise Settlement."
• Key points in the settlement included:
• The respondents’ undertaking to improve the Bangued Water System at a cost of P3,310,000.00 with immediate effect upon signing.
• An agreement to perform a thorough accounting of all funds and materials of the Bangued Water District.
• The petitioners’ waiver of any claims for damages and accounting of funds/materials as a benefit derived from the promised improvements.
• The settlement also detailed the maintenance of existing water rates (P5.00 for domestic users and P10.00 for commercial/industrial users) until the water system was improved.
• A structured schedule for revised water rates was provided:
• For domestic, school, and hospital users, a tiered rate system based on cubic meter consumption beyond specified thresholds.
• For commercial, industrial, and bulk users, the rates were to be doubled or tripled respectively according to the rate for domestic users.
• Additional stipulations included:
• Any future change in water rates was to be determined by the parties in accordance with existing laws and regulations.
• The binding commitment of the Bangued Water Consumers to support the agreed rates, ensuring operation, maintenance, repayment of the loan, and other expenses.

Judicial Action on the Settlement

• The respondent judge rendered a final judgment approving the compromise agreement.
• The judge ordered that the parties comply with the terms and conditions of the settlement.
• Consequently, on the basis of the settlement, the petition for certiorari was dismissed with the final order stating: "WHEREFORE, as prayed for, this case is hereby DISMISSED."

Issue:

Jurisdiction and Appropriateness of Review

• Whether the petition for certiorari was the proper remedy given that the dispute had effectively been resolved by a compromise.
• The appropriateness of issuing a writ of certiorari to review the proceedings of a judge who had already rendered final judgment on a compromise settlement.

Effect of the Compromise Settlement on the Petition

• Whether the settlement, which included waivers of claims and a commitment to maintain certain water rates, extinguished or affected the standing of the petition.
• The impact of the approved compromise on the petitioners’ rights and the subsequent dismissal of their petition.

Judicial Oversight

• Whether the lower court's final judgment approving the compromise settlement was proper and beyond the scope of review by certiorari.
• The extent to which judicial review should interfere in cases where parties voluntarily agree to a settlement that ends their disputes.

Ruling:

• (Subscriber-Only)

Ratio:

• (Subscriber-Only)

Doctrine:

• (Subscriber-Only)