Case Summary (G.R. No. 201501)
Procedural History
Dela Merced & Sons requested extensions, filed a motion for reconsideration, and met conditions for a Temporary Lifting Order. A November 2007 sampling confirmed compliance, but DENR-PAB initiated proceedings to impose fines for the entire 398-day violation period at P10,000 per day, totaling P3.98 M. DENR-PAB denied reconsideration; the Court of Appeals affirmed liability but reduced the fine to P2.63 M, citing alleged delays by DENR in post-TLO sampling. Both parties sought Supreme Court review under Rule 45.
Issues Presented
- Whether Dela Merced & Sons was denied due process.
- Whether a Certificate of Non-Coverage (CNC) exempts compliance with the Clean Water Act.
- Whether Section 28 of RA 9275 is unconstitutional as imposing excessive fines.
- Whether the proper fine amount should be P3.98 M or a reduced figure.
Due Process Claim Rejected
The Supreme Court found that Dela Merced & Sons enjoyed full administrative due process: notices, hearings (technical conference and position paper submission), motions for reconsideration, and opportunity to present evidence. Administrative proceedings under RA 9275 require fairness but not trial-type formality. Any procedural lapses were cured by the reconsideration phase.
CNC Does Not Exempt Compliance
A CNC merely certifies non-coverage under the Environmental Impact Statement System and does not absolve a project from other environmental permits or standards. Under P.D. 1586, non-critical projects must still adopt environmental safeguards. Jurisprudence confirms CNC holders remain subject to laws like the Clean Water Act.
Constitutionality of Fine Provision
Section 28 of RA 9275 prescribes administrative fines, not criminal penalties, placing it outside the constitutional ban on excessive fines in criminal cases (Article III, Section 19). Even if the Bill of Rights applied, the fines do not shock the moral sense or otherwise qualify as flagrantly oppressive. Legislative history shows lawmakers deliberately set deterrent rates to protect water resources.
Amount of Fine and its Sufficiency
The PAB correctly computed the fine for 398 days of
...continue readingCase Syllabus (G.R. No. 201501)
Facts of the Case
- The Guadalupe Commercial Complex, owned and operated by N. Dela Merced & Sons, Inc., houses a wet market and kitchenettes along the Pasig River.
- On 13 July 2006, the DENR’s Environmental Management Bureau–National Capital Region (EMB-NCR) inspected the complex and found:
- Operation of a generator set without an Air Pollution Source Installation Permit (DENR AO 2004-26, Sec. 1).
- Discharge of regulated water pollutants without a discharge permit (RA 9275 Sec. 27(i)).
Inspection and Notice of Violation
- EMB-NCR served a Notice of Violation (NOV-608-203) on 28 August 2006, charging Dela Merced & Sons with the above infractions and ordering compliance.
- The company requested—and received—an extension to comply with NOV requirements.
Cease and Desist Order and Temporary Lifting Order
- A follow-up inspection on 11 October 2006 collected an effluent sample that failed DENR standards.
- On 6 February 2007, the DENR Secretary, upon EMB-NCR recommendation, issued a Cease and Desist Order (CDO) for RA 9275 violations, denying any TLO unless statutory requirements were met.
- On 30 March 2007, EMB-NCR partially executed the CDO by sealing kitchen sinks of identified wastewater sources; the wet market and turo-turo eateries received warnings.
- On 3 April 2007, Dela Merced & Sons filed a Motion for Reconsideration and submitted documents (pollution control program, surety bond, interim measures, accredited PCO proof, presidential undertaking).
- The Pollution Adjudication Board (PAB) issued a Temporary Lifting Order (TLO) on 3 July 2007, valid for 150 days pending completion of pollution control measures.
Effluent Sampling, Certificate of Non-Coverage, and Technical Conference
- On 9 August 2007, EMB-DENR issued a Certificate of Non-Coverage (CNC) under PD 1586, exempting the complex only from EIS requirements.
- A new effluent sample on 14 November 2007 conformed to DENR standards.
- DENR-PAB called a technical conference, attaching an initial fine computation of ₱3,980,000 (₱10,000/day × 398 days, from 12 October 2006 to 13 November 2007) and invited a position paper.