Case Digest (G.R. No. 13638) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In the Petition for Certiorari and Prohibition filed on June 26, 1989, Congressman Enrique T. Garcia, representing the Second District of Bataan, assailed the action of the Board of Investments (BOI) and the Department of Trade and Industry (DTI) in approving an amended registration by the Bataan Petrochemical Corporation (BPC) to transfer its petrochemical complex from Lamao, Limay, Bataan to Batangas. By Proclamation No. 361 (March 6, 1968) as amended by Proclamation No. 630 (November 29, 1969) and later by P.D. No. 1803 (January 16, 1981), the State had reserved 576 hectares in Bataan for a petrochemical industrial zone under the Philippine National Oil Company. In December 1987, Taiwanese investors formed BPC, specifying Lamao, Limay, Bataan as its plant site and using naphtha as feedstock. BOI granted pioneer status on February 24, 1988, with fiscal incentives under the Omnibus Investments Code of 1987, and Congress even moved to eliminate the 48% ad valorem tax on naphtha Case Digest (G.R. No. 13638) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Reservation and Development of Bataan Petrochemical Zone
- Proclamation No. 361 (Mar. 6, 1968), as amended by Proclamation No. 630 (Nov. 29, 1969), reserved 388 hectares at Lamao, Limay, Bataan for an industrial estate.
- P.D. No. 1803 (Jan. 16, 1981) enlarged the reserved area by 188 hectares (total 576 ha), under PNOC administration as the Petrochemical Industrial Zone.
- Establishment and Registration of Bataan Petrochemical Corporation (BPC)
- Taiwanese investors formed BPC and applied to the BOI to establish a petrochemical complex in Bataan using naphtha as feedstock.
- On Feb. 24, 1988, BOI issued a Certificate of Registration granting pioneer status and incentives (tax exemptions, repatriation of proceeds, etc.). Congress, through petitioner’s initiative, passed a bill eliminating the 48% ad valorem tax on naphtha feedstock.
- Proposed Amendments to BPC’s Registration
- In January 1989, BPC’s major investor signaled intent to amend its registration: increase investment from US$220 M to US$320 M; boost production capacities; change feedstock to “naphtha and/or LPG”; and transfer the plant site from Limay, Bataan to Batangas (citing insurgency, labor unrest, LPG depot access).
- Formal amendment request filed April 11, 1989. Prominent Bataan congressmen, the provincial governor, civic groups and PNOC objected. Petitioner sought copies of BPC’s applications; BOI denied consent-based disclosure. On May 25, 1989, BOI approved the amendments without publication or hearing.
- Petition to the Supreme Court
- On June 26, 1989, Congressman Enrique T. Garcia filed a petition for certiorari and prohibition with prayer for preliminary injunction, alleging:
- Grave abuse of discretion and violation of due process in approving amendments sans notice/hearing.
- Denial of transparency by refusing document access.
- Violation of P.D. Nos. 949/1803 by authorizing site transfer.
- Partiality toward BPC.
- The Court, noting purely legal issues and economic importance, decided to resolve the merits without awaiting injunction hearing.
Issues:
- Did BOI’s approval of BPC’s amended registration without publication and hearing amount to grave abuse of discretion and denial of due process?
- Does petitioner, as representative of the affected community, have legal interest and right of access to BPC’s application records?
- Did the site transfer and feedstock change contravene P.D. Nos. 949 and 1803 establishing Bataan’s petrochemical zone?
- What procedural remedies must BOI afford when an amended registration effectively constitutes a new application?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)