National Electrification Administration v. Borja
REITERATIONFacts
The Antecedents: Respondents Oscar C. Borja and Venancio B. Regulado were incumbent members of the Board of Directors of Camarines Sur Electric Cooperative II (CASURECO II). Borja filed his certificate of candidacy for mayor, and Regulado ran for municipal councilor in the May 2013 elections. Petitioner National Electrification Administration (NEA) issued Memorandum No. 2012-016, providing guidelines for the 2013 elections, which stated that Electric Cooperative (EC) officials filing Certificates of Candidacy would be considered automatically resigned effective the start of the campaign period. Procedural History: Aggrieved, Borja and Regulado filed a petition before the Regional Trial Court (RTC) seeking to declare Section 2 of Memorandum No. 2012-016 unconstitutional. The RTC granted a preliminary injunction in favor of Borja, noting Regulado had already won and assumed office. The RTC subsequently declared Section 2 of the Memorandum unconstitutional, finding it expanded upon laws declared void in Quinto v. COMELEC. On appeal, the Court of Appeals (CA) dismissed the case as moot and academic due to the expiration of the election period and the respondents' terms. However, the CA also passed upon the merits, affirming the RTC's ruling that Section 2 of the Memorandum contravened Presidential Decree No. 269 (NEA's charter) by effectively amending an act of Congress. The CA denied NEA's motion for reconsideration. The Petition: NEA filed a Petition for Review on Certiorari before the Supreme Court, asserting the validity of Section 2 of Memorandum No. 2012-016.
Issue(s)
Whether the Court of Appeals erred in decreeing the case as moot and academic. Whether the Court of Appeals erred in decreeing that Section 2 of Memorandum No. 2012-016 contravenes the NEA's charter. Whether the Court of Appeals erred in failing to rule that the petition before the RTC should have been dismissed on procedural grounds.
Ruling
The Supreme Court denied the Petition for Review on Certiorari for lack of merit and affirmed the Decision and Resolution of the Court of Appeals.
Ratio Decidendi
On the issue of mootness: The Court affirmed that the case was rendered moot and academic because the Memorandum's effectivity was limited to the 2013 elections, which had concluded, and the respondents were no longer members of the CASURECO II Board. However, the Court invoked the exception for issues capable of repetition, yet evading review. The Court found that the challenged action (NEA's issuance of such guidelines) was too short to be fully litigated before its cessation, and there was a reasonable expectation that NEA might issue similar guidelines in the future, subjecting other EC officials to the same treatment. Therefore, a definitive ruling was necessary to forestall future litigation. On the validity of Section 2 of Memorandum No. 2012-016: The Court held that an administrative agency cannot amend an act of Congress through its issuances. The Omnibus Election Code's provision on ipso facto resignation applies only to public appointive office holders, active members of the AFP, and officers/employees of government-owned or controlled corporations. Electric cooperatives are private entities, not government agencies or GOCCs. While Presidential Decree No. 269 (NEA's charter) states that elective officers of the government (except barrio captains and councilors) are ineligible to become officers and/or directors of cooperatives, it does not grant NEA the authority to deem them automatically resigned upon filing a certificate of candidacy. Furthermore, Republic Act No. 10531, which amended PD 269, added qualifications for directors and officers, prohibiting those who held public office or were candidates in the last preceding elections, but it did not include a provision for automatic resignation, reinforcing the intent that NEA could not arrogate such power. On procedural grounds: The Court found no need to delve into the procedural issue of dismissing the petition before the RTC, as it had already definitively ruled on the legality of the Memorandum. The Court reiterated its stance that procedural rules may be relaxed to advance substantial justice, which it did in this instance by resolving the substantive issue.
Main Doctrine
The National Electrification Administration (NEA) cannot, through its administrative issuances, deem officers of electric cooperatives as automatically resigned upon filing their Certificates of Candidacy, as this power rests with Congress and was not extended to such positions under existing laws, including the NEA's charter (Presidential Decree No. 269) and subsequent amendments.