Title
Supreme Court
Executive Secretary Leandro Mendoza, Department of Energy-Attorney General Joint Task Force, and Secretary Angelo Reyes vs. Pilipinas Shell Petroleum Corporation
Case
G.R. No. 209216
Decision Date
Feb 21, 2023
A challenge to the constitutionality of Section 14(e) of RA 8479, allowing DOE to control oil operations during emergencies, deemed unconstitutional for improper delegation of legislative power.

Case Digest (G.R. No. 209216)
Expanded Legal Reasoning Model

Facts:

  • Parties and Statutory Background
    • Petitioners: former Executive Secretary Leandro Mendoza, DOE-DOJ Joint Task Force, Energy Secretary Angelo T. Reyes.
    • Respondent: Pilipinas Shell Petroleum Corporation.
    • Republic Act No. 8479 (Downstream Oil Industry Deregulation Act of 1998), § 14(e) empowers the DOE, “in times of national emergency…under reasonable terms prescribed by it,” to temporarily take over or direct operations in the oil industry.
  • Events and Procedural History
    • In October 2009, Typhoons Ondoy and Pepeng ravaged Luzon. President Arroyo declared a state of calamity (Proclamation No. 1898) and issued EO 839 directing oil companies to freeze prices under § 14(e).
    • Pilipinas Shell filed a Petition for Prohibition, Mandamus, and Injunction (with TRO/Prelim. Inj.) in the RTC of Makati, challenging EO 839 and § 14(e) as an invalid delegation of emergency powers.
    • The RTC granted a TRO (Nov 13, 2009), which became moot when EO 845 lifted EO 839 (Nov 2009). The RTC then dismissed the petition as moot (Jan 5, 2010), later granted Shell’s motion for reconsideration, and declared § 14(e) unconstitutional (Aug 23, 2010).
    • The Court of Appeals affirmed (June 25, 2013) and denied reconsideration (Sept 19, 2013). Petitioners sought review under Rule 45 before the Supreme Court.

Issues:

  • Procedural
    • Did the CA err in dismissing petitioners’ appeal as the wrong mode of appeal?
    • Does res judicata bar review in light of this Court’s prior Garcia v. Corona ruling?
    • Is the controversy moot after the lifting of EO 839?
    • Was a Petition for Declaratory Relief the proper remedy to challenge § 14(e)?
  • Substantive
    • Is § 14(e) of RA 8479 an unconstitutional delegation of emergency takeover powers to the DOE rather than to the President?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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