Title
National Electrification Administration vs. Oscar C. Borja and Vecio B. Regulado
Case
G.R. No. 232581
Decision Date
Nov 13, 2024
NEA's Memorandum deemed unconstitutional as it invalidly mandated directors of electric cooperatives to resign upon filing candidacy. The Court ruled that challenges were moot as the election period expired and parties are no longer members.
A

Case Summary (G.R. No. 232581)

Facts of the Case

Prior to this litigation, Borja and Regulado were elected members of the CASURECO II Board. Borja's term was set to expire in October 2014, while Regulado's was to end in December 2013. Borja filed a certificate of candidacy for mayor of Bombom, Camarines Sur, and Regulado ran for municipal councilor in Canaman. They contested Memorandum No. 2012-016, which mandated that any electric cooperative official who filed a certificate of candidacy would automatically be deemed resigned from their position.

Procedural History

Respondents filed a petition in the Regional Trial Court (RTC) of Naga City challenging the constitutionality of the Memorandum. NEA opposed this, claiming the petition was premature and that the respondents did not demonstrate the required elements for injunctive relief. The RTC granted Borja a temporary injunction but did not afford the same relief to Regulado since he had already assumed his position as municipal councilor. Subsequently, the RTC ruled the challenged section unconstitutional, referencing established precedents.

Court of Appeals Decision

The Court of Appeals upheld the RTC's findings but dismissed the case as moot and academic, given that the terms of Borja and Regulado had already expired. The appellate court found that Section 2 of the Memorandum was unconstitutional as it contravened NEA's charter, which does not stipulate automatic resignation for candidates and instead only disqualifies certain government officers from being members of cooperatives.

Issues for Consideration

The Supreme Court needed to decide whether the appellate court erred in concluding the case as moot, whether Section 2 of the Memorandum contradicted NEA's charter, and whether the petition should have been dismissed solely on procedural grounds.

Ruling of the Court

The Supreme Court found the petition to lack merit, aligning with the appellate court's findings regarding the mootness. Since the events rendered the case without practical value, the Court declined to adjudicate further. Both parties had effectively ceased to hold their positions in CASURECO II, obviating the necessity for a substantive ruling.

Constitutional Interpretation

The Court reaffirmed that the Omnibus Election Code only applies to public officials and does not extend its provisions to employees of cooperative organizations such as CASURECO II. The NEA, as an administrative agency, lacks the authority t

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