Title
Castillejos Consumers Association, Inc. vs. Dominguez
Case
G.R. No. 189949
Decision Date
Mar 25, 2015
Electric consumers' group challenged ZAMECO II board's removal; SC upheld NEA's authority, found respondents guilty of indirect contempt for disregarding court orders.

Case Summary (G.R. No. 189949)

Background of the Case

CASCONA is an organization representing electric consumers in Castillejos, Zambales, who were affected by the actions of the board members of ZAMECO II. The controversy arose after the National Electrification Administration (NEA) issued a resolution removing several members of the board for mismanagement. Dominguez and other former board members appealed the NEA's decision, arguing that the Electric Power Industry Reform Act of 2001 (EPIRA) had stripped the NEA of its supervisory powers, thereby placing jurisdiction under the CDA. The Court upheld NEA's authority, leading to a further remand due to unresolved issues about ZAMECO II's compliance with regulatory conversion to a stock cooperative.

Issue of Contempt

The core issue presented in the petition was whether the actions taken by the respondents—specifically their attempts to regain control of ZAMECO II—constituted indirect contempt against the Supreme Court, considering there was an ongoing jurisdictional clarification regarding the NEA and CDA's regulatory powers over ZAMECO II.

Acts of Indirect Contempt

CASCONA argued that the actions of the CDA and the other respondents amounted to indirect contempt under Rule 71, Section 3 of the Rules of Court, citing their memorandum asserting authority over ZAMECO II and their attempts to physically occupy the premises, which directly contradicted the Supreme Court's decision. The fundamental contention was that these actions preempted the Court's authority and undermined the judicial process by disregarding a decision that was not final but still in the course of legal evaluation.

Respondents' Defense

In their defense, Dominguez and co-respondents contended that the March 13, 2009 decision did not contain execution orders against them, thus absolving them from contempt claims. They argued that since the case was interlocutory, there could be no willful disobedience of any non-final ruling. They also referenced the enactment of the Philippine Cooperative Code and previous court rulings suggesting that the authority over ZAMECO II had transferred to the CDA away from the NEA.

Court's Ruling on Indirect Contempt

The Supreme Court found that the respondents' actions constituted indirect contempt. The Court highlighted the nature of contempt as a disregard for judicial authority and asserted that the respondents' interference was not only obstructive but also contemptuous of the Court's earlier rulings. The Court clarified that the alleged compliance of the NEA did not alter their jurisdiction status, and any assumption of authority by the CDA before a definitive court ruling constituted an act of contempt.

Liability of Respondents

The Court assessed the culpability of respondents individually, determining

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