Title
Supreme Court
Chairman, Palawan Council for Sustainable Development vs. Lim
Case
G.R. No. 183173
Decision Date
Aug 24, 2016
PCSD's accreditation requirement for live fish transport upheld by SC, reversing CA's nullification, affirming PCSD's authority under R.A. No. 7611.

Case Digest (G.R. No. 183173)
Expanded Legal Reasoning Model

Facts:

  • Parties and Background
    • Petitioners
      • Messrs. Winston G. Arzaga (Executive Director) and Vicente A. Sandoval (Chairman) of the Palawan Council for Sustainable Development (PCSD), the agency created under RA 7611 to implement the Strategic Environmental Plan (SEP) for Palawan.
      • PCSD is responsible for governance, implementation, and policy direction of the SEP.
    • Respondent
      • Ejercito Lim, operating as Bonanza Air Services, an ATO-authorized non-scheduled air taxi transporter of live fish from Palawan to traders.
      • Claimed exemption from PCSD accreditation requirement as an ATO-authorized common carrier.
  • Regulatory Issuances and Non-Compliance
    • Administrative Order No. 00-05 (Feb. 25, 2002)
      • Required accreditation by PCSD for all live-fish traders and carriers in Palawan.
      • Enacted under RA 7611 to regulate live fish transport for environmental protection.
    • ATO Communication (Sept. 4, 2002)
      • Declared ATO-authorized carriers, including respondent, exempt from PCSD accreditation.
    • PCSD Memorandum Circular No. 02, Series 2002
      • Imposed sanctions (accreditation cancellation, perpetual disqualification) on unaccredited carriers.
  • Court of Appeals Proceedings
    • Notice of Violation and Show Cause Order (Oct. 2002)
      • Charged respondent with 19 unauthorized flights; threatened a P50,000 fine.
      • Respondent denied receipt and continued operations.
    • Petition for Prohibition in CA
      • CA issued a TRO and, after petitioners’ non-comment, a preliminary injunction upon bond.
    • PCSD’s Counter-Measures
      • Argued A.O. No. 00-05’s validity under RA 7611 and mootness due to Resolution No. 03-211 (Aug. 18, 2003) amending accreditation rules.
      • Issued a supplemental show cause order (Sept. 9, 2003) for continued non-compliance.
    • CA Decision (May 28, 2008)
      • Granted prohibition petition; declared A.O. 00-05, Res. 03-211, and related orders null and void.
      • Made injunction permanent; costs against petitioners.
  • Appeal to the Supreme Court
    • Petitioners filed a petition for review on certiorari under Rule 45.
    • Sole issue: whether CA erred in invalidating PCSD issuances as beyond its authority under RA 7611.

Issues:

  • Procedural Jurisdiction
    • Did the CA have jurisdiction to issue a writ of prohibition against PCSD’s quasi-legislative issuances?
    • Is prohibition the appropriate remedy to challenge the validity of administrative regulations?
  • Substantive Authority
    • Did A.O. No. 00-05 and Resolution No. 03-211 exceed PCSD’s delegated powers under RA 7611, Secs. 16 and 19?
    • Did the CA misinterpret RA 7611’s limitations on PCSD’s rule-making authority?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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