Lawyers League v. National Price Control Council

G.R. No. L-33090 · 1972-12-29 · J. FERNANDO, J.: · Primary: Commercial; Secondary: Taxation
REITERATION

Facts

1. The Antecedents: The underlying dispute involved the Price Control Council's order of January 28, 1971, which fixed the prices of various petroleum products, including regular and premium gasoline, diesel fuels, industrial fuel oil, liquefied petroleum gas, and asphalt. This order was challenged by the petitioners. 2. Procedural History: The petition for certiorari with a prayer for preliminary injunction was filed by the Lawyers League for Better Philippines and Oliver O. Lozano against the National Price Control Council and several oil companies. The Supreme Court issued a restraining order on July 6, 1971, commanding the respondent oil companies to desist from enforcing price increases announced for midnight of June 30, 1971, and to maintain prices at the levels set by the Price Control Council's January 28, 1971 order. Subsequently, the respondent oil companies filed motions to dismiss, arguing the case had become moot and academic. 3. The Petition: The petition sought to nullify the Price Control Council's order fixing petroleum product prices. The respondents moved to dismiss, contending that the case was moot and academic due to the enactment of the New Price Control Law (Republic Act No. 6361) on July 27, 1971. This new law continued to cover fuels, lubricants, crude oil, and petroleum products, effectively freezing prices at the June 30, 1971 levels, thus rendering the original dispute moot. The petitioners offered no satisfactory rebuttal, and the Solicitor General's comment, while opposing dismissal, acknowledged the new law and the ongoing proceedings before the Oil Industry Commission.

Issue(s)

Whether the petition for certiorari with prayer for preliminary injunction has become moot and academic. Whether the Court should still rule on the validity of the Price Control Council's order of January 28, 1971, and the restraining order issued on July 6, 1971.

Ruling

The motions to dismiss filed by the respondent Oil Companies are granted, and the petition is declared moot and academic.

Ratio Decidendi

On the issue of mootness: The Court held that the petition had indeed become moot and academic. This was primarily due to the enactment of Republic Act No. 6361, the New Price Control Law, approved on July 27, 1971. This new legislation explicitly included "fuels, lubricants, crude oil and petroleum products" among the essential commodities covered, thereby superseding the previous legal framework that was the subject of the petition. The Court noted that the new law's provisions, which included maintaining prices at levels enforced as of June 30, 1971, without prejudice to future actions by the Oil Industry Commission or the new Price Control Council, rendered the original issues of the petition no longer of practical consequence. The contention of respondent Caltex Philippines, Inc., that the new law effectively froze prices at the June 30, 1971 levels, thus making the prayer for injunction moot, was found persuasive. The Court also considered that any remaining legal issues of consequence were likely to be addressed in other pending proceedings before it, specifically those concerning the Oil Industry Commission's determinations. On the Court's role: Given that the core issues raised in the petition were rendered moot by subsequent legislation, the Court found no necessity to pass upon the validity of the Price Control Council's order of January 28, 1971, or the restraining order of July 6, 1971. The Court's resolution of July 6, 1971, which commanded oil companies to desist from price increases and maintain previous levels, was effective only until the Oil Industry Commission began its hearings. The subsequent proceedings before the Oil Industry Commission, and any appeals therefrom, were deemed to be the appropriate venue for resolving the price ceiling issues for petroleum products. Therefore, the Court concluded that the judicial cognizance of the original petition was no longer warranted.

Main Doctrine

A petition for certiorari with prayer for preliminary injunction becomes moot and academic when a new law is enacted that covers the subject matter of the controversy, rendering the issues presented for resolution no longer of practical consequence.

Access audio review, related cases, codal links, and more.

Open LexMatePH →