Case Summary (G.R. No. 191427)
Petitioner and Respondent
Petitioner: Universal Robina Corp. (Corn Division)
Respondent: Laguna Lake Development Authority
Key Dates
• March 14, 2000: Initial LLDA sampling reveals effluent violations.
• May 30, 2000: Ex parte order issued requiring explanation or cessation of operations.
• August 31, 2000 & May 3, 2002: Subsequent samplings confirm continued non-compliance.
• March 1, 2001: Pollution hearings commence.
• Early 2003–2007: URC upgrades its wastewater treatment facility (WTF).
• May 9, 2007: Re-sampling shows compliance.
• January 21, 2008: LLDA issues Order to Pay penalizing 1,247 days of violation.
• July 11, 2008: LLDA denies reconsideration, revising total days to 1,274.
• October 27, 2009: Court of Appeals affirms LLDA orders.
• February 23, 2010: CA denies URC’s motion for reconsideration.
• May 30, 2011: Supreme Court renders decision under the 1987 Constitution.
Applicable Law
• 1987 Philippine Constitution (environmental protection mandate)
• DENR Administrative Orders Nos. 34 and 35, s. 1990 (effluent standards)
• EO 192 (reorganization of DENR; creation of Pollution Adjudication Board)
• LLDA Resolution No. 33, s. 1996, Art. VI, Sec. 32 (daily penalty up to ₱1,000 per violation day)
• 2004 Revised Rules Implementing RA 4850, Rule X, Sec. 2 (verified evidence requirement for penalty computation)
Factual Background
LLDA’s laboratory analyses in 2000 and 2002 showed that URC’s corn oil refinery effluent exceeded permitted levels of total suspended solids, biochemical oxygen demand, color, and oil/grease. LLDA issued orders for explanation and hearings commenced. Despite monitoring and inspections, URC remained non-compliant until it completed its WTF upgrade in 2007.
Administrative Proceedings
Following URC’s 2007 request, LLDA re-sampled and found compliance. URC then filed a motion to reduce penalties, attaching daily operation reports claiming only 560 days of violation. LLDA’s Order to Pay (January 21, 2008) assessed 1,247 days of violations and imposed ₱1,247,000 in daily penalties. In denying reconsideration (July 11, 2008), LLDA explained it computed 932 days (March 14, 2000–November 3, 2003) and 342 days (March 15, 2006–April 17, 2007), having deducted laboratory rehabilitation and periods without monitoring. LLDA deemed URC’s reports self-serving and unverified, thus disregarding them.
Court of Appeals Ruling
The Court of Appeals affirmed both LLDA orders. It held that LLDA’s penalty computation adhered to DENR guidelines and that LLDA properly rejected unverified documentation. The court also ruled URC’s certiorari petition premature for failure to exhaust available administrative remedies—specifically, appeal to the DENR Secretary or President.
Supreme Court Analysis
- 1987 Constitution: Encompasses state policy to protect the environment and grants agencies rule-making and adjudicatory authority in specialized fields such as pollution control.
- Exhaustion of Remedies: URC failed to appeal LLDA’s orders to the DENR Secretary per EO 192 and applicable regulations. Judicial
Case Syllabus (G.R. No. 191427)
Facts of the Case
- Universal Robina Corp. (URC) operates a corn oil refinery plant in Bagong Ilog, Pasig City, as part of its animal feed manufacturing business.
- On March 14, 2000, the LLDA’s Pollution Control Division conducted a laboratory analysis of URC’s wastewater, finding violations of DENR DAO Nos. 34 and 35 (1990) effluent standards.
- On May 30, 2000, LLDA issued an Ex-Parte Order directing URC to show cause why operations should not cease for discharging pollutive effluents and operating without LLDA clearance.
- Following a phone‐in complaint, LLDA re‐sampled wastewater on August 31, 2000, and again found non‐compliance in Total Suspended Solids, Biochemical Oxygen Demand, Color and Oil/Grease.
- Hearings commenced March 1, 2001; subsequent monitoring likewise showed continued violations.
- Early 2003, URC notified LLDA of its plan to upgrade its wastewater treatment facility (WTF); the upgrade was completed only in 2007.
- On May 9, 2007, LLDA re‐sampled and found URC finally compliant with effluent standards.
- URC filed a Manifestation and Motion on August 24, 2007, attaching Daily Operation Reports and Certifications to argue that penalties should cover only 560 days of operation.
LLDA’s Order to Pay and Reconsideration
- In an Order to Pay dated January 21, 2008, LLDA computed accrued daily penalties for two periods:
• March 14, 2000 to November 3, 2003 (932 days)
• March 15, 2006 to April 17, 2007 (448 days, later corrected)
Total penalties: PHP 1,247,000.00. - URC moved for reconsideration, arguing that LLDA erred by:
• Ignoring the rehabilitation period of the LLDA laboratory (Dec 1, 2000 to Jun 30, 2001, 212 days) and the two‐year, four‐month no‐inspection interval;
• Disregarding its Daily Operation Reports and Certifications showing only 560 days of operation. - By Order dated July 11, 2008, LLDA denied reconsideration, clarifying its computations as:
• March 14, 2000 to November 3, 2003 (932 days at six days per week, excluding 212 rehab days)
• March 15, 2006 to April