Digest prepared by N.

Palacios

La Bugal-BLaan Tribal Association Inc. vs Ramos
FACTS:
This petition assails the constitutionality of the PHILIPPINE MINING ACT OF 1995, along
with the IRR issued pursuant thereto, the DENR Administrative Order, and the FTAA entered into
by the Republic of the Philippines and the Philippine corporation WMC.
Year Law Effect
July 1987 EO 279 Authorized DENR Secretary to accept, consider, and evaluate proposals
from foreign-owned corporations/investors involving large scale
mining.
(Large scale = at least 50 Million USD.)
March 1995 RA 7942 Defines modes of mineral agreements, outlines procedure for filing and
approval, and fixes their terms.
Prescribes qualifications and grants them certain rights.
April 9, 1995 Thirty days following its publication on March 10, 1995 in Malaya and Manila
Times, RA 7942 took effect.

Shortly before the effectivity of RA 7942, the President entered into an FTAA with WMCP
covering 99 thousand hectares of land in South Cotabato, Sultan Kudarat, Davao Del Sur and North
Cotabato.
Counsel for petitioners sent a letter to the DENR Secretary demanding that DENR stop the
implementation of RA 7942 and its IRR. However, DENR has yet to act on petitioners letter.
Petitioners allege that 100 FTAA applications have already been filed, covering 8.4 million
hectares, 64 of which applications are by fully foreign-owned corporations and at least one by a
fully foreign-owned mining company over offshore areas. Petitioners claim that the DENR Secretary
acted in excess of jurisdiction.
Respondents argue that the requisites for judicial inquiry have not been met, and the
petition does not comply with the criteria for prohibition and mandamus. Additionally, WMCP
argues that there has been a violation of the rule of hierarchy of courts.
WMCP subsequently filed a manifestation that WMC sold all its shares in WMCP to
Sagittarius Mines, a Philippine corporation. WMCP has thus ceased to be connected with WMC.
PROCEDURAL ISSUES:
1) Have the requisites for judicial inquiry been met?
2) Is a petition for prohibition an appropriate remedy?
3) Has the hierarchy of courts been violated?
SUBSTANTIVE ISSUES:
1) W/N EO 279, the law in force when the WMC FTAA was executed, came into effect.
2) W/N the FTAAs should be limited to technical or financial assistance only, in accordance
with Article XII of the Constitution.
Digest prepared by N. Palacios

HELD/RATIO:
Procedural Issues:
1) Have the requisites for judicial inquiry been met? - YES
- Existence of actual and appropriate case
- Personal and substantial interest by the party
- Pleaded at the earliest opportunity
- Constitutional question is the lis mota

2) Is a petition for prohibition an appropriate remedy? YES

Prohibition is a preventive remedy. It seeks a judgment ordering the defendant to desist
from continuing with the commission of an act perceived to be illegal. Petitioners seek to
prevent respondents from fulfilling obligations under the contract on the theory that it is
unconstitutional and therefore, void.

3) Has the hierarchy of courts been violated? NO

The repercussions of the issues in this case on the Philippine mining industry constitute
exceptional and compelling circumstances to justify resort to this Court in the first instance.
In all events, this Court has the discretion to take cognizance of a suit which does not satisfy
the requirements of an actual case or legal standing when paramount public interest is
involved.
Substantive Issues:
1) W/N EO 279, the law in force when the WMC FTAA was executed, came into effect. - YES

Petitioners contend that EO No. 279 did not take effect because its supposed date of
effectivity came after President Aquino had already lost her legislative powers under the
Provisional Constitution.

She signed it into law two days before the opening of Congress on July 27, 1987. Section 8 of
the EO states that the same shall take effect immediately. ~ Tanada vs Tuvera doctrine

2) W/N the FTAAs should be limited to technical or financial assistance only, in accordance
with Section 2, Article XII of the Constitution. YES

The WCMP FTAA allows WCMP, a fully foreign-owned mining corporation, to extend more
than mere financial or technical assistance to the State, for it permits WCMP to manage and
operate every aspect of the mining activity.

It is a cardinal rule in the interpretation of Constitutions that the instrument must be so
construed as to give effect to the intention of the people who adopted it. Accordingly,
foreign-owned corporations should be limited to technical or financial assistance only.
Digest prepared by N. Palacios

The phrase service contracts has been omitted from the 1987 Constitutions article on
National Economy and Patrimony. That which has been omitted from an enumeration myst
be held to have been omitted intentionally. The WCMP FTAA is a service contract.
Petition GRANTED.