Philippine Contractors Accreditation Board v. Central Mindanao Construction Multi-Purpose Cooperative
REITERATIONFacts
The Antecedents: The Central Mindanao Construction Multi-Purpose Cooperative (CMCM Cooperative), a duly registered service cooperative, had been engaged in construction contracting and held a contractor's license from the Philippine Contractors Accreditation Board (PCAB). PCAB issued Board Resolution No. 915, Series of 2011, mandating that cooperatives must incorporate into a business corporation as a condition for the continued grant of a contractor's license, setting a deadline for renewal. Procedural History: CMCM Cooperative filed a complaint before the Regional Trial Court (RTC) seeking the nullification of Resolution No. 915, arguing it defied state policy on promoting cooperatives. The RTC ruled in favor of CMCM Cooperative, enjoining the implementation of Resolution No. 915 for lack of approval by the President of the Philippines. PCAB appealed to the Court of Appeals (CA). The Petition: The CA dismissed PCAB's appeal on technicality, holding that an appeal raising purely legal questions should have been filed directly with the Supreme Court. PCAB filed a Petition for Review on Certiorari before the Supreme Court, raising two issues: (1) whether the CA erred in dismissing the case outright; and (2) whether Board Resolution No. 915 requires presidential approval or CIAP confirmation for implementation.
Issue(s)
Whether the Court of Appeals erred in dismissing the appeal outright. Whether Board Resolution No. 915 requires the approval of the President and/or confirmation from the CIAP to be implemented, and whether it runs counter to the constitutional policy of promoting and protecting cooperatives.
Ruling
The Petition is DENIED. The Decision of the Court of Appeals dismissing the appeal, and consequently affirming the Decision of the Regional Trial Court enjoining the implementation of Philippine Contractors Accreditation Board's Board Resolution No. 915, Series of 2011 for lack of approval by the President of the Philippines, is AFFIRMED.
Ratio Decidendi
On the issue of the Court of Appeals' dismissal: The Court affirmed the CA's dismissal of PCAB's appeal. The CA correctly determined that PCAB's appeal raised a purely legal question concerning the validity and application of Resolution No. 915. Under Rule 41, Section 2(c) and Rule 45 of the Rules of Court, appeals raising only questions of law must be filed directly with the Supreme Court via a petition for review on certiorari. Rule 50, Section 2 of the Rules of Court mandates the outright dismissal of appeals erroneously taken to the Court of Appeals that raise only questions of law. Therefore, the CA's dismissal was in accordance with the Rules of Court, and PCAB's argument for relaxation of the rules due to public interest was not sufficiently compelling to override the procedural mandate. On the validity of Board Resolution No. 915 and its conflict with cooperative policy: The Court ruled that Resolution No. 915 is null and void. Section 5 of Republic Act No. 4566 explicitly requires that any rules and regulations issued by the PCAB to carry out the provisions of the Act must have the approval of the President of the Philippines. The resolution in question, which imposes a condition for the renewal of contractor's licenses, constitutes a rule and regulation carrying out the provisions of RA 4566. PCAB failed to present evidence of presidential approval for Resolution No. 915. Furthermore, the Rules and Regulations Governing Licensing and Accreditation of Constructors in the Philippines require confirmation by the Construction Industry Authority of the Philippines (CIAP), which was also absent. The resolution also runs counter to the constitutional policy of promoting and protecting cooperatives, as CMCM Cooperative, a service cooperative, falls within the broad definition of services a cooperative may render under Republic Act No. 9520, including construction and housing services.
Main Doctrine
Board Resolution No. 915 of the Philippine Contractors Accreditation Board (PCAB) is null and void for being an ultra vires act, as it was issued without the required approval of the President of the Philippines and contravenes the constitutional protection afforded to cooperatives.