Title
Benguet Electric Cooperative, Inc. vs. National Electrification Administration
Case
G.R. No. 93924
Decision Date
Jan 23, 1991
BENECO challenged NEA's dismissal of its board, alleging abuse of discretion and due process violations. SC dismissed the petition, citing legal grounds for NEA's action, found forum shopping, and imposed contempt sanctions.

Case Digest (G.R. No. 93924)
Expanded Legal Reasoning Model

Facts:

  • Initiation of Proceedings
    • On July 4, 1990, petitioners—Benguet Electric Cooperative, Inc. (BENECO), members of its Board of Directors, and Baguio-Benguet Community Credit Cooperative, Inc.—filed a petition for certiorari.
    • The petition sought to nullify Resolution No. 51 issued by the National Electrification Administration (NEA), which dismissed the BENECO Board of Directors, and to enjoin NEA from taking over the management of BENECO.
  • Content and Verification of the Petition
    • The petition was verified by Sinai C. Hamada, President of the BENECO Board, and Gregorio S. Rimas, President and Chairman of the Baguio-Benguet Community Credit Cooperative, Inc.
    • The relief sought included both the quashing of the contested NEA resolution and the prevention of NEA’s seizure of BENECO’s operations, collection centers, and substations.
  • Escalation of the Case and Supplementary Pleadings
    • Due to NEA personnel, accompanied by armed military men from the Philippine Constabulary, forcibly taking over BENECO facilities, petitioners heightened their plea for a temporary restraining order or preliminary injunction.
    • On August 23, 1990, a supplemental petition was filed reiterating the urgent need for restraining orders in light of mounting resistance from BENECO employees and members-consumers.
  • Involvement of NEA and the Solicitor General
    • NEA was required to comment on the petition as early as July 9, 1990, and again on September 12, 1990.
    • The Solicitor General, on behalf of NEA, submitted comments outlining several defenses: allegations of forum shopping, failure to exhaust administrative remedies, the propriety of NEA’s actions, and the proper observance of due process for the dismissed board members.
  • Parallel Proceedings in the Regional Trial Court
    • On August 31, 1990, BENECO, through the same counsel, filed a separate complaint (Civil Case No. 2160-R) before the Regional Trial Court of Baguio City.
    • The complaint contained similar allegations regarding NEA’s conduct and resulted in the granting of a temporary restraining order by the trial court on September 6, 1990.
    • The existence of this parallel action was not initially disclosed in the petition to the Supreme Court.
  • Subsequent Court Motions and Developments
    • Petitioners later filed a motion for reconsideration on November 5, 1990, and a supplemental motion on November 9, 1990, both reiterating the same arguments without presenting new matters of substance.
    • The Supreme Court took cognizance of the simultaneous actions and the failure to disclose the pending trial court litigation, highlighting these as deceptive practices undermining judicial procedures.

Issues:

  • Validity of NEA’s Administrative Action
    • Whether the dismissal of the BENECO Board of Directors by NEA was legally justified and free from grave abuse of discretion.
    • Whether due process was duly observed in executing the dismissal.
  • Allegation of Forum Shopping and Judicial Duplication
    • Whether petitioners committed forum shopping by filing similar petitions concurrently before the Supreme Court and the Regional Trial Court.
    • Whether the failure to disclose the parallel case in the trial court constituted an abuse of judicial process.
  • Appropriateness of Judicial Remedies and Sanctions
    • Whether the Supreme Court could entertain and grant relief despite the simultaneous filing of similar actions in different judicial venues.
    • Whether the actions of petitioner’s counsel, in pursuing parallel remedies, warranted disciplinary measures including potential contempt and suspension.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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