Republic of the Philippines

SUPREME COURT
Manila

SECOND DIVISION

G.R. No. 188500               July 24, 2013

PROVINCE OF CAGAYAN, represented by HON. ALVARO T. ANTONIO, Governor, and

RESOLUTION

PERLAS-BERNABE, J.:

This is a direct recourse to the Court from the Decision1 of the Regional Trial Court of Tuguegarao
City, Cagayan, Branch 5 (RTC), through a petition for review on certiorari 2 under Rule 45 of the
Rules of Court, raising a pure question of law. In particular, petitioners assail the RTC's June 30,
2009 Decision in Civil Case No. 7077, enjoining them from disturbing the quarrying operations of
respondent Joseph Lasam Lara (Lara).

The Facts

On September 14, 2007, Lara obtained an Industrial Sand and Gravel Permit 3 (ISAG Permit) from
the Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural
Resources (DENR), authorizing him to conduct quarrying operations in a twenty-hectare area
situated in Barangay Centro, Muncipality of Peñablanca (Peñablanca), Cagayan (Permit Area) and
extract and dispose of sand, gravel, and other unconsolidated materials from the Permit Area. For
the same purpose, Lara obtained an Environmental Compliance Certificate 4 (ECC) from the DENR
Environmental Management Bureau (EMB).5

On January 3, 2008, Jovy Balisi (Balisi), Lara’s representative, went to the Cagayan Provincial
Treasurer’s Office (Treasurer’s Office) to pay the extraction fee and other fees for Lara’s quarrying
operations but she was directed to first secure an Order of Payment from the Environmental and
Natural Resources Officer, petitioner Robert Adap (ENRO Adap). However, when Balisi went to
ENRO Adap, the latter refused to issue an Order of Payment. Despite various pleas from Balisi and
Atty. Victorio N. Casauay (Atty. Casauay), Lara’s counsel, ENRO Adap remained adamant with his
refusal. This prompted Atty. Casauay to tender and deposit the amount of ₱51,500.00 with the
Treasurer’s Office corresponding to the said extraction fee and other related fees. 6

On January 11, 2008, Lara commenced his quarrying operations. Later that day, however, a total of
four trucks loaded with sand and gravel extracted from the Permit Area were stopped and
impounded by several local officials. 7 Consequently, Lara filed an action for injunction with prayer for
the issuance of a writ of preliminary injunction, docketed as Civil Case No. 7049, against the said
officials, seeking to enjoin the stoppage of his quarrying operations. After due proceedings, a writ of
preliminary injunction was issued enabling Lara to restart his business. 8

Nonetheless, on March 17, 2008, Lara received a Stoppage Order 9 dated March 13, 2008 (Stoppage
Order) this time from Cagayan Governor Alvaro T. Antonio (Gov. Antonio), directing him to stop his
quarrying operations for the following reasons: (a) the ISAG Permit was not in accordance with
Republic Act No. (RA) 7942,10 otherwise known as the "Philippine Mining Act of 1995," and its
implementing rules and regulations; (b) Lara’s failure to pay sand and gravel fee under Provincial
Ordinance No. 2005-07; and (c) Lara’s failure to secure all necessary permits or clearances from the
local government unit concerned as required by the ECC.11 Hence, Lara filed the present action for
injunction and damages with an urgent and ex-parte motion for the issuance of a temporary
restraining order and/or preliminary injunction before the RTC, docketed as Civil Case No. 7077.

In their Answer dated June 10, 2008, petitioners raised the following defenses: (a) the mere
issuance of the ISAG Permit does not give Lara the right to commence his quarrying operations as
he still had to comply with the terms and conditions stated therein; (b) Lara has neither secured all
the necessary permits nor paid the local fees and taxes; and (c) Gov. Antonio was merely
performing his duty to enforce all laws and ordinances relative to the governance of the Province of
Cagayan pursuant to the provisions of RA 7160, 12 otherwise known as the "Local Government Code
of 1991."13

In an Order14 dated August 11, 2008, the RTC granted Lara’s application for a writ of preliminary
injunction based on a prima facie finding that he is authorized to extract gravel and sand from the
Permit Area. Petitioners filed a motion for reconsideration15 which was, however denied on
September 26, 2008.16

During the pre-trial, the parties stipulated on the following facts: (a) that Lara was able to secure an
ISAG Permit from the MGB and an ECC from the DENR-EMB; (b) that Lara deposited the amount of
₱51,500.00 with the Treasurer’s Office for the extraction and other related fees; and (c) that Gov.
Antonio issued a Stoppage Order directing Lara to stop the quarrying operations in the Permit Area.
The parties also determined that the submission of documentary evidence would be sufficient to
reach a decision and as such, the RTC directed them to simultaneously file their respective
memoranda.17

The RTC Ruling

In a Decision18 dated June 30, 2009, the RTC made permanent the writ of preliminary injunction and
thus, enjoined petitioners from stopping or disturbing Lara’s quarrying operations.

It held that Lara legally acquired the right to operate his quarrying business, as evidenced by the
ISAG Permit and ECC issued by the MGB and the EMB, respectively, which are the government
agencies tasked to grant or deny any application for quarrying of industrial sand and gravel. 19 In this
regard, the RTC observed that if Gov. Antonio perceived any defect in Lara’s ISAG Permit, the
proper recourse would have been to bring the matter to the attention of the MGB and not to issue a
Stoppage Order.20 It further noted that Lara could not pay the extraction and other related fees only
because ENRO Adap adamantly refused to issue an Order of Payment. In this relation, the RTC
concluded that there was substantial compliance with the requirements since Lara, in good faith,
tendered and deposited the amount of ₱51,500.00 with the Treasurer’s Office, which can be treated
as Lara’s payment of the pertinent fees.21 Finally, the RTC found no need to touch on the necessity
of securing a mayor’s permit before starting his quarrying operations, given that it is the main issue
in another case, Civil Case No. 7049, pending before the same court. 22

Aggrieved, petitioners sought direct recourse to the Court via the instant petition.

The Issue Before the Court

Among others, petitioners argue that despite the issuance of the ISAG Permit, Lara has yet to
comply with its terms and conditions – as he has yet to secure the necessary permits and
clearances from the local government unit concerned – and hence, remains to be proscribed from
conducting any quarrying operations.23

On the other hand, Lara maintains that the MGB and DENR-EMB had already authorized him to
extract sand and gravel from the Permit Area, as evidenced by the ISAG Permit and ECC, thereby
dispensing with the need to secure any permit from the local government. In any case, he contends
that the only reason why he failed to secure such permits was because the local government officials
deliberately refused to process his applications without any legitimate reason whatsoever. 24

The Court’s Ruling

The petition is meritorious.

It is well-settled that a writ of injunction would issue upon the satisfaction of two (2) requisites,
namely: (a) the existence of a right to be protected; and (b) acts which are violative of the said right.
In the absence of a clear legal right, the issuance of the injunctive relief constitutes grave abuse of
discretion. Injunction is not designed to protect contingent or future rights. Where the complainant’s
right is doubtful or disputed, injunction is not proper. The possibility of irreparable damage without
proof of actual existing right is not a ground for an injunction. 25

In order for an entity to legally undertake a quarrying business, he must first comply with all the
requirements imposed not only by the national government, but also by the local government unit
where his business is situated. Particularly, Section 138(2) of RA 7160 26 requires that such entity
must first secure a governor’s permit prior to the start of his quarrying operations, viz:

SECTION 138. Tax on Sand, Gravel and Other Quarry Resources.

– x x x.

The permit to extract sand, gravel and other quarry resources shall be issued exclusively by the
provincial governor, pursuant to the ordinance of the sangguniang panlalawigan. (Emphasis and
underscoring supplied)

xxxx

In connection thereto, the Sangguniang Panlalawigan of Cagayan promulgated Provincial Ordinance

SECTION 2H.04. Permit for Gravel and Sand Extraction and Quarrying. – No person shall extract
ordinary stones, gravel, earth, boulders and quarry resources from public lands or from the beds of
seas, rivers, streams, creeks or other public waters unless a permit has been issued by the
Governor (or his deputy as provided herein) x x x. (Emphasis and underscoring supplied)

A plain reading of the afore-cited provisions clearly shows that a governor’s permit is a pre-requisite
before one can engage in a quarrying business in Cagayan. Records, however, reveal that Lara
admittedly failed to secure the same; hence, he has no right to conduct his quarrying operations
within the Permit Area. Consequently, he is not entitled to any injunction.

In view of the foregoing, the Court need not delve into the issue respecting the necessity of securing
a mayor’s permit, especially since it is the main issue in another case, Civil Case No. 7049, which
remains pending before the court a quo.

WHEREFORE, the petition is GRANTED. Accordingly, the June 30, 2009 Decision of the Regional
Trial Court of Tuguegarao City, Cagayan, Branch 5 in Civil Case No. 7077 is hereby REVERSED
and SET ASIDE.

SO ORDERED.

ESTELA M. PERLAS-BERNABE
Associate Justice

WE CONCUR:

ANTONIO T. CARPIO
Associate Justice
Chairperson

ARTIRO D. BRION MARIANO C. DEL CASTILLO

JOSE PORTUGAL PEREZ

ATTESTATION

I attest that the conclusions in the above Resolution had been reached in consultation before the
case was assigned to the writer of the opinion of the Court’s Division.

ANTONIO T. CARPIO
Associate Justice
Chairperson, Second Division

CERTIFICATION

Pursuant to Section 13, Article VIII of the Constitution, and the Division Chairperson's Attestation, I
certify that the conclusions in the above Resolution had been reached in . consultation before the
case was assigned to the writer of the opinion of the Court's Division.

MARIA LOURDES P. A. SERENO

Footnotes
1
 Rollo, pp. 41-50. Penned by Judge Jezarene C. Aquino.

2
 Id. at 19-39.

3
 Id. at 59-63.

4
 Id. at 73-78.

5
 Id. at 41-42.

6
 Id. at 20-21, 42, and 48-49.

7
 Id. at 42. Referring to the Mayor of Peñablanca, Board Member Taguinod and other local
officials.

8
 Id. at 42-43.

9
 Id. at 65.

 "AN ACT INSTITUTING A NEW SYSTEM OF MINERAL RESOURCES EXPLORATION,

DEVELOPMENT, UTILIZATION AND CONSERVATION."

11
 Rollo, p. 43.

12
 "AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991."

13
 Rollo, pp. 43-44.

14
 Id. at 51-54.

15
 Id. at 66-70.

16
 Id. at 71.

17
 Id. at 44-45.

18
 Id. at 41-50.

19
 Id. at 46-47.

20
 Id. at 48.

21
 Id. at 48-49.

22
 Id. at 49.

23
 Id. at 25-37.

24
 Id. at 111.
25
 BP Philippines, Inc. (Formerly Burmah Castrol Philippines, Inc.) v. Clark Trading
Corporation, G.R. No. 175284, September 19, 2012, 681 SCRA 365, 375, citing Manila
International Airport Authority v. Rivera Village Lessee Homeowners Association
Incorporated, 508 Phil. 354, 375 (2005).

26
 "AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991."