Case Summary (G.R. No. 169228)
Factual Background
PhilRealty developed The Alexandra Condominium Complex from 1987 to 1993 on a 9,876-square-meter parcel in Pasig City, title No. 64355, and transferred the common areas to TACC by Deed of Conveyance dated 18 April 1988. Building and sanitary permits were issued by the Pasig City Building Official between 1987 and 1993, and certificates of final inspection and occupancy were likewise issued for the project phases. PhilRealty formally turned over the completed project to TACC on 31 December 1993 but did not deliver certain as-built plans for perimeter drainage, foundation, and electrical and plumbing layout. TACC thereafter managed the condominium through Century Properties Management Corporation.
Administrative Findings and Orders
On 24 June 1998 LLDA advised TACC that its wastewater did not meet effluent standards under the NPCC rules as amended by DENR Administrative Order No. 34, and informed TACC that it must construct its own sewage treatment plant. LLDA collected wastewater samples on 26 March 1999 and found elevated Chemical Oxygen Demand (COD) and Oil/Grease (OG) beyond the statutory limits of 150 for COD and 5 for OG. LLDA issued a Notice of Violation dated 6 May 1999 and imposed a daily fine of P1,000 from 26 March 1999 until cessation of pollutive discharge. TACC contracted World Chem Marketing to construct an STP for P7,550,000, completed by October 2001, but LLDA proceeded to issue an Order dated 4 September 2003 assessing a penalty of P1,062,000 for the period 26 March 1999 to 20 February 2002.
Procedural History
TACC filed a petition for certiorari with the Court of Appeals challenging LLDA’s imposition of the penalty and sought a temporary restraining order. The Court of Appeals dismissed the petition as prematurely filed in a Decision dated 26 April 2005 and denied TACC’s motion for reconsideration in a Resolution dated 1 August 2005. TACC then filed the present petition for review in the Supreme Court.
The Parties' Contentions
TACC argued that it exhausted efforts to comply with government effluent standards, having constructed an STP and employed interim treatments, and that the noncompliance resulted from PhilRealty’s omissions; TACC sought condonation of the penalty. TACC also contended that the petition for certiorari was not premature because administrative remedies were ineffective or had been pursued. LLDA countered that the petition was premature because TACC failed to exhaust administrative remedies, that LLDA had statutory authority to impose penalties under RA 4850, and that compromise or condonation of the assessed penalty required action by the Commission on Audit or, for amounts exceeding the COA’s authority, by Congress under the Administrative Code of 1987 and Presidential Decree No. 1445.
Court of Appeals' Ruling
The Court of Appeals dismissed the petition on the ground of prematurity. It held that TACC failed to file a motion for reconsideration of LLDA’s 4 September 2003 Order and that TACC should have availed itself of the administrative remedies available under the DENR and related rules before seeking judicial intervention. The Court of Appeals also recognized LLDA’s authority under RA 4850, Executive Order No. 927, and Presidential Decree No. 984 to order discontinuance of pollution and to impose penalties for noncompliance.
Issues Presented to the Supreme Court
The Supreme Court stated the principal issues as whether the Court of Appeals erred in disregarding TACC’s efforts to comply with effluent standards and whether the Court of Appeals erred in finding the petition for certiorari prematurely filed.
Ruling of the Supreme Court
The Supreme Court denied the petition and affirmed the Court of Appeals’ Decision and Resolution. The Court held that TACC’s petition was premature for failure to exhaust available administrative remedies and for failure to file a motion for reconsideration of the LLDA Order. The Court also held that LLDA possessed authority to impose the penalty and that TACC could not shift responsibility to PhilRealty for the condominium’s noncompliance with effluent standards. The Court found no compelling or valid reason to dispense with the motion for reconsideration requirement under Rule 65, Rules of Court.
Legal Basis and Reasoning
The Court applied the doctrine of non-exhaustion of administrative remedies, citing that Executive Order No. 149 transferred LLDA to the DENR for administrative supervision while Executive Order No. 192 vested the DENR with authority to promulgate pollution control standards and created a Pollution Adjudication Board to assume NPCC adjudicatory functions. The Court reasoned that TACC had an administrative recourse before the DENR Secretary which it should have pursued prior to filing a petition under Rule 65. The Court reiterated that a petitioner for certiorari must show that the administrative agency acted without or in excess of jurisdiction or with grave abuse of discretion and that no plain, speedy, and adequate remedy in the ordinary course of law existed; a motion for reconsideration is the ordinary remedy and must be filed unless concrete and compel
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Case Syllabus (G.R. No. 169228)
Parties and Posture
- The Alexandra Condominium Corporation (TACC) was the petitioner seeking review of the Court of Appeals' dismissal of its petition for certiorari.
- Laguna Lake Development Authority (LLDA) was the respondent which imposed administrative penalties for unlawful effluent discharge.
- The petition to this Court assailed the Court of Appeals' 26 April 2005 Decision and 1 August 2005 Resolution in CA-G.R. SP No. 82409, both of which dismissed TACC's petition for certiorari and denied its motion for reconsideration.
- PhilRealty was identified in the record as the developer and original owner who conveyed the condominium project to TACC.
Key Facts
- PhilRealty developed The Alexandra Condominium Complex and conveyed the project and common areas to TACC by Deed of Conveyance dated 18 April 1988.
- The property was covered by Transfer Certificate of Title No. 64355 and the project consisted of phased clusters A through E developed from 1987 to 1993.
- Pasig City Building Official Architect Walter R. Perez issued development, building, sanitary/plumbing permits, and certificates of final inspection and occupancy for the project between 1987 and 1993.
- PhilRealty formally turned over the completed project to TACC on 31 December 1993 but did not deliver certain as-built plans for drainage, foundation, electrical, and plumbing.
- LLDA notified TACC on 24 June 1998 that the condominium's wastewater failed to meet government effluent standards under the NPCC rules as amended by DENR Administrative Order No. 34.
- TACC experimented with enzyme treatment and later contracted World Chem Marketing to construct a Sewage Treatment Plant for PHP 7,550,000, completed in October 2001.
- LLDA sampled the effluent on 26 March 1999 and reported on 6 April 1999 that TACC's samples exceeded allowable levels for Chemical Oxygen Demand (COD) and Oil/Grease (OG).
- LLDA issued a Notice of Violation dated 6 May 1999 and assessed a daily fine of PHP 1,000 from 26 March 1999 until cessation of pollutive discharge.
- After administrative proceedings and hearings, LLDA issued an Order dated 4 September 2003 requiring TACC to pay PHP 1,062,000 representing penalties from 26 March 1999 to 20 February 2002.
Administrative Actions
- LLDA directed TACC to submit corrective measures and imposed a daily administrative penalty for continued pollutive discharge.
- LLDA’s 19 July 1999 Order reiterated that condonation of the penalty would defeat LLDA’s mandate to prevent pollution.
- TACC requested dismissal on 1 April 2002 and filed position papers seeking condonation in light of remedial measures and subsequent analysis dated 28 February 2002.
- TACC later manifested an offer to compromise by paying PHP 500,000 in May 2004, which LLDA acknowledged and referred for further administrative review.
- LLDA referred the compromise offer to its resident auditor who advised that the power to compromise such an amount rested with the Commission on Audit (COA) or Congress.
Procedural History
- TACC filed a petition for certiorari before the Court of Appeals seeking to annul LLDA's 4 September 2003 Order and prayed for a temporary restraining order.
- The Court of Appeals dismissed the petition on 26 April 2005 for prematurity and denied the prayer for a temporary restraining order.
- The Court of Appeals denied TACC's motion for reconsideration on 1 August 2005.
- TACC filed a petition for review w