Title
Laguna Lake Development Authority vs. Court of Appeals
Case
G.R. No. 110120
Decision Date
Mar 16, 1994
Conflict between LLDA and Caloocan City over illegal dumpsite operations; Supreme Court upheld LLDA's authority to issue cease and desist orders, prioritizing environmental protection.

Case Summary (G.R. No. 110120)

Key Dates

• March 8, 1991 – Letter-complaint filed with LLDA by Task Force Camarin Dumpsite
• December 5, 1991 – LLDA issues initial cease-and-desist order
• August 14, 1992 – LLDA issues alias cease-and-desist order after resumption of dumping
• September 25, 1992 – City Government files Civil Case No. C-15598 in RTC; temporary restraining order issued
• November 10, 1992 – Supreme Court refers LLDA’s petition (G.R. No. 107542) to the Court of Appeals
• April 30, 1993 – Court of Appeals decision: LLDA lacks authority to issue cease-and-desist orders
• July 19, 1993 – Supreme Court issues temporary restraining order in G.R. No. 110120
• March 16, 1994 – Final Supreme Court decision

Applicable Law

• 1987 Constitution, Article II, Section 16 (right to a balanced and healthful ecology)
• Republic Act No. 4850, as amended by PD No. 813 and EO No. 927 (LLDA charter)
• Presidential Decree No. 1586 (Environmental Impact Statement System)
• Presidential Decree No. 1152 (Philippine Environment Code)
• Republic Act No. 3931, as amended by PD No. 984 (Pollution Control Law)
• Executive Order No. 192 (DECS reorganization, creation of Pollution Adjudication Board)
• Republic Act No. 7160 (Local Government Code of 1991)

Procedural History

LLDA first sought Court of Appeals review of an RTC order granting a preliminary injunction against its cease-and-desist order (G.R. No. 107542). The Court of Appeals dismissed LLDA’s petition, holding LLDA had no authority to issue such orders and that the RTC had jurisdiction. LLDA then filed a petition for review on certiorari in the Supreme Court (G.R. No. 110120), challenging both the jurisdictional ruling and the holding on its powers.

Facts

• Caloocan City operates an 8.6-hectare open dumpsite in Barangay Camarin without an Environmental Compliance Certificate or LLDA clearance.
• LLDA investigation (November 1991) confirmed leachate contamination risk to Marilao River tributaries.
• LLDA’s December 1991 and August 1992 orders compelled cessation of dumping; the city initially complied but later resumed operations.
• RTC Branch 127 enjoined LLDA from enforcing its orders; LLDA appealed to the Court of Appeals.

Jurisdictional Issues

The Court of Appeals held:

  1. RTC lacked jurisdiction to hear Civil Case No. C-15598 since review of LLDA’s administrative orders lies exclusively with the Court of Appeals under Section 9(3) of Batas Pambansa Blg. 129.
  2. LLDA’s charter (RA 4850, as amended) did not authorize issuance of cease-and-desist orders.

Authority of LLDA to Issue Cease-and-Desist Orders

The Supreme Court found that:
• Executive Order No. 927, Section 4(d), expressly empowers LLDA to “make, alter or modify orders requiring the discontinuance of pollution.”
• Sections 4(c), (e), (f), and (g) further grant LLDA quasi-judicial and enforcement powers, including compelling compliance, revoking permits, and deputizing other agencies.
• Even absent an express ex-parte grant, the power to issue such orders is necessarily implied in LLDA’s regulatory mandate.

Constitutional and Policy Foundations

• Article II,

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