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    25 - Falgui - Association of Philippine Coconut Desiccators V Philippine Coconut Authority (1998) - CONSTI

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    Marc Yu
    1) The Philippine Coconut Authority (PCA) issued a resolution withdrawing from regulating the coconut processing industry and limiting registration of processors to monitoring production volumes and quality standards. 2) An association of coconut desiccators challenged the resolution, arguing the PCA had abdicated its regulatory role over the industry. 3) The Supreme Court agreed, finding the PCA had exceeded its powers by essentially deregulating the industry and leaving it to uncontrolled competition, reviving past issues that led to industry problems. The Court declared the resolution and related registrations null and void.

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    25 - Falgui - Association of Philippine Coconut Desiccators V Philippine Coconut Authority (1998) - CONSTI

    Uploaded by

    Marc Yu
    12 views2 pages
    1) The Philippine Coconut Authority (PCA) issued a resolution withdrawing from regulating the coconut processing industry and limiting registration of processors to monitoring production volumes and quality standards. 2) An association of coconut desiccators challenged the resolution, arguing the PCA had abdicated its regulatory role over the industry. 3) The Supreme Court agreed, finding the PCA had exceeded its powers by essentially deregulating the industry and leaving it to uncontrolled competition, reviving past issues that led to industry problems. The Court declared the resolution and related registrations null and void.

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    25_Falgui_Association of Philippine Coconut Desiccators v Philippine Coconut Authority (1998)_CONSTI.docx

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    1) The Philippine Coconut Authority (PCA) issued a resolution withdrawing from regulating the coconut processing industry and limiting registration of processors to monitoring production volumes and quality standards. 2) An association of coconut desiccators challenged the resolution, arguing the PCA had abdicated its regulatory role over the industry. 3) The Supreme Court agreed, finding the PCA had exceeded its powers by essentially deregulating the industry and leaving it to uncontrolled competition, reviving past issues that led to industry problems. The Court declared the resolution and related registrations null and void.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    12 views2 pages

    25 - Falgui - Association of Philippine Coconut Desiccators V Philippine Coconut Authority (1998) - CONSTI

    Uploaded by

    Marc Yu
    1) The Philippine Coconut Authority (PCA) issued a resolution withdrawing from regulating the coconut processing industry and limiting registration of processors to monitoring production volumes and quality standards. 2) An association of coconut desiccators challenged the resolution, arguing the PCA had abdicated its regulatory role over the industry. 3) The Supreme Court agreed, finding the PCA had exceeded its powers by essentially deregulating the industry and leaving it to uncontrolled competition, reviving past issues that led to industry problems. The Court declared the resolution and related registrations null and void.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    [15] ASSOCIATION OF PHILIPPINE COCONUT DESICCATORS v PHILIPPINE

    coconut-based products, and to require the submission of such reports or


    COCONUT AUTHORITY
    documents as may be deemed necessary by the Authority to ascertain whether the
    levy payments and/or subsidy claims are due and correct and whether the
    GR No. 110526 | February 10, 1998 | Delegation of Powers | William Falgui
    subsidized products are distributed among,... and utilized by, the consumers
    Petitioner: Association of Philippine Coconut Desiccators authorized by the Authority.
    Respondents: Philippine Coconut Authority
    Recit-Ready: Our Constitutions, beginning with the 1935 document, have repudiated laissez-
    faire as an economic principle.[18] Although the present Constitution enshrines
    Doctrine: free enterprise as a... policy,[19] it nonetheless reserves to the government the
    Under Art. II, §3(a) of the Revised Coconut Code (P.D. No. 1468), the role of the power to intervene whenever necessary to promote the general welfare.
    PCA is "To formulate and adopt a general program of development for the coconut
    and other palm oil industry in all its aspects." By limiting the purpose of provisions of Art. XII of the Constitution
    registration to merely
    Sec. 6. . . . Individuals and private groups, including corporations, cooperatives,
    "monitoring volumes of production [and] administration of quality standards" of and similar collective organizations, shall have the right to own, establish, and
    coconut processing plants, the PCA in effect abdicates its role and leaves it operate economic enterprises, subject to the duty of the State to promote
    almost completely to market forces how the coconut industry will develop. distributive... justice and to intervene when the common good so demands.

    Art. II, §3 of P.D. No. 1468 further requires the PCA: Sec. 19. The State shall regulate or prohibit monopolies when the public interest
    so requires. No combinations in restraint of trade or unfair competition shall be
    (h) To regulate the marketing and the exportation of copra and its by-products by allowed.
    establishing standards for domestic trade and export and, thereafter, to conduct
    an inspection of all copra and its by-products proposed for export to determine if
    they conform to... the standards established; FACTS:

    .D. No. 1644 On November 5, 1992, seven desiccated coconut processing companies
    belonging to the APCD brought suit in the Regional Trial Court, National Capital
    Section 1. The Philippine Coconut Authority shall have full power and authority to Judicial Region in Makati, Metro Manila, to enjoin the PCA from issuing permits
    regulate the marketing and export of copra, coconut oil and their by-products, in to certain applicants for the... establishment of new desiccated coconut
    furtherance of the steps being taken to rationalize the coconut oil milling... processing plants. Petitioner alleged that the issuance of licenses to the
    industry. applicants would violate PCA's Administrative Order No. 02, series of 1991, as
    the applicants were seeking permits to operate in areas considered "congested"
    Revised Coconut Code (P.D. No. 1468), Art. II, §3,... (m) Except in respect of under the administrative order.
    entities owned or controlled by the Government or by the coconut farmers under
    Sections 9 and 10, Article III hereof, the Authority shall have full power and While the case was pending in the Regional Trial Court, the Governing Board of
    authority to regulate the production, distribution and utilization of all... subsidized the PCA issued on March 24, 1993 Resolution No. 018-93, providing for the
    withdrawal of the Philippine Coconut Authority from all regulation of the coconut
    product processing industry. While it continues the registration of coconut
    product processors, the registration would be limited to the "monitoring" of their
    volumes of production and administration of quality standards.

    The PCA then proceeded to issue "certificates of registration" to those wishing to


    operate desiccated coconut processing plants, prompting petitioner to appeal to
    the Office of the President of the Philippines on April 26, 1993 not to approve the
    resolution in question.

    Despite follow-up letters sent on May 25 and June 2, 1993, petitioner received no
    reply from the Office of the President. The "certificates of registration" issued in
    the meantime by the PCA has enabled a number of new coconut mills to operate.

    ISSUES:

    Validity of a resolution, dated March 24, 1993, of the Philippine Coconut Authority

    RATIO:

    the PCA adopted the resolution in question to render the case


    moot. In so doing, the PCA abdicated its function of regulation
    and left the 6eld to untrammeled competition
    that is likely to resurrect the evils of cut-throat competition,
    underselling and overproduction which in 1982 required the
    temporary closing of the field to new players in
    order to save the industry.

    WHEREFORE, the petition is GRANTED. PCA Resolution No. 018-93 and all
    certificates of registration issued under it are hereby declared NULL and VOID for
    having been issued in excess of the power of the Philippine Coconut Authority to
    adopt or... issue

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