Cagayan v. Lara
REITERATIONFacts
The Antecedents: Respondent Joseph Lasam Lara (Lara) obtained an Industrial Sand and Gravel Permit (ISAG Permit) from the Mines and Geosciences Bureau (MGB) and an Environmental Compliance Certificate (ECC) from the DENR Environmental Management Bureau (EMB) to conduct quarrying operations in a twenty-hectare area in Peñablanca, Cagayan. Lara's representative attempted to pay extraction fees but was refused an Order of Payment by the Environmental and Natural Resources Officer (ENRO Adap). Lara subsequently deposited ₱51,500.00 with the Provincial Treasurer's Office. Lara commenced quarrying operations, but his trucks were stopped and impounded. He filed an action for injunction, which resulted in a preliminary injunction allowing him to restart operations. However, Cagayan Governor Alvaro T. Antonio (Gov. Antonio) issued a Stoppage Order, citing Lara's non-compliance with RA 7942, failure to pay sand and gravel fees under Provincial Ordinance No. 2005-07, and failure to secure local government clearances as required by the ECC. Procedural History: Lara filed an action for injunction and damages before the Regional Trial Court (RTC) of Tuguegarao City, Branch 5 (Civil Case No. 7077). The RTC granted a writ of preliminary injunction. Petitioners argued that Lara had not secured necessary local permits and had not paid local fees. During pre-trial, parties stipulated on Lara's possession of ISAG Permit and ECC, his deposit of fees, and the issuance of the Stoppage Order. The RTC, in its Decision dated June 30, 2009, made the preliminary injunction permanent, enjoining petitioners from disturbing Lara's quarrying operations. The RTC held that Lara legally acquired the right to operate based on the ISAG Permit and ECC, and that his inability to pay fees was due to ENRO Adap's refusal, with his deposit constituting substantial compliance. The RTC found no need to rule on the mayor's permit issue as it was pending in another case. The Petition: Petitioners Province of Cagayan, represented by Governor Alvaro T. Antonio and Environmental and Natural Resources Officer Robert Adap, filed a petition for review on certiorari before the Supreme Court, assailing the RTC's decision.
Issue(s)
Whether the Regional Trial Court (RTC) properly issued the permanent injunction given Lara's compliance with legal requirements. Whether Lara had a clear legal right to conduct quarrying operations, specifically considering the necessity of securing a governor's permit and paying local fees.
Ruling
The petition is meritorious. The Supreme Court GRANTED the petition, REVERSED, and SET ASIDE the June 30, 2009 Decision of the Regional Trial Court of Tuguegarao City, Cagayan, Branch 5 in Civil Case No. 7077.
Ratio Decidendi
On the propriety of the permanent injunction: The Court held that a writ of injunction requires the existence of a clear legal right to be protected and acts violative of that right. The issuance of an injunction without a clear legal right constitutes grave abuse of discretion. Injunction is not designed to protect contingent or future rights, and where a complainant's right is doubtful or disputed, injunction is not proper. The possibility of irreparable damage without proof of an actual existing right is not a ground for an injunction. In this case, Lara's right to conduct quarrying operations was doubtful due to his failure to comply with mandatory requirements. On Lara's right to conduct quarrying operations: The Court emphasized that to legally undertake a quarrying business, an entity must comply with requirements from both national and local government units. Section 138(2) of Republic Act No. (RA) 7160, the Local Government Code of 1991, explicitly requires a governor's permit to extract sand, gravel, and other quarry resources, which must be issued exclusively by the provincial governor pursuant to an ordinance. Similarly, Provincial Ordinance No. 2005-07 of Cagayan mandates that no person shall extract quarry resources unless a permit has been issued by the Governor. The records clearly showed that Lara admittedly failed to secure this prerequisite governor's permit. Therefore, he had no legal right to conduct his quarrying operations within the permit area and was consequently not entitled to any injunction.
Main Doctrine
A writ of injunction will not issue in the absence of a clear legal right, and the failure to secure a governor's permit, a prerequisite for quarrying operations under Section 138(2) of RA 7160 and Provincial Ordinance No. 2005-07, negates the existence of such a right.