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101083, July 30, 1993) (2) Whether or not the original prayer of the plaintiffs result in the
impairment of contracts.
The plaintiffs in this case are all minors duly represented and joined by (3) Whether or not the TLAs can be cancelled.
their parents. The first complaint was filed as a taxpayer's class suit at
the Branch 66 (Makati, Metro Manila), of the Regional Trial Court,
National capital Judicial Region against defendant (respondent) First Issue: Cause of Action.
Secretary of the Department of Environment and Natural Reasources
(DENR). Plaintiffs alleged that they are entitled to the full benefit, use
Do petitioners have a cause of action to prevent the
and enjoyment of the natural resource treasure that is the country's
misappropriation or impairment of Philippine rainforests and
virgin tropical forests. They further asseverate that they represent their
arrest the unabated hemorrhage of the country’s vital life-support
generation as well as generations yet unborn and asserted that
systems and continued rape of Mother Earth? [in legal terms, do
continued deforestation have caused a distortion and disturbance of
the petitioners have a cause of action under sec. 16 of Art II based
the ecological balance and have resulted in a host of environmental
on “inter-generational justice and responsibility”] – YES.
tragedies.
Can the Court grant the cancellation of all TLAs and to order the o JAPEX conducted drill one exploration well during the
cessation and desistance from receiving, accepting, processing project in compliance with the Environmental Impact
and approving new TLAs? - Yes Assessment found in PD 1586.
o JAPEX was issued an Environmental Compliance
Certificate (ECC).
• RTC dismissed the complaint because the prayer is violative of the
non-impairment clause – but SC said it does not.
• Petitioners now went to the SC for redress seeking to enjoin SC-46
from implementation and to nullify the ECC in violation of the
o A Timber License Agreement is not a Constitution.
contract, property or a property right protested by the
due process clause of the Constitution.
o RMM and their Stewards contend that JAPEX’s oil
exploration activities have an adverse ecological impact on
o Factoran would have acted with utmost infidelity the Tañon Strait.
to the Govt by providing undue and unwarranted benefits
and advantages to the timber license holders because he
would have forever bound the Government to strictly respect o RMM and the Stewards showed a study made that showed
the said licenses according to their terms and conditions that the fish catch was reduced drastically by 50 to 70
regardless of changes in policy and the demands of public percent, the average harvest per day went from 15-20 kilos
interest and welfare. to 1-2 kilos a day. They attribute these decreases to the
destruction of the "payao" also known as the “artificial
reef."
o Sec. 20 of the Forestry Reform Code must be
read in every TLA: “That when the national interest so
requires, the President may amend, modify, replace or o They further contend that the ECC obtained by JAPEX
rescind any contract, concession, permit, licenses or any is invalid because public consultations and discussions
other form of privilege granted herein” – all licenses may with the affected stakeholders were not held.
thus be revoked or rescinded by executive action. It is not a
contract, property or a property right protested by the due o FIDEC confirms the allegations made by RMM of reduced
process clause of the Constitution. fish catch and lack of public consultations with the fisherfolk
and other stakeholders prior to the issuance of the ECC.
ISSUES/HELD;
Can they implead Pres. GMA as an unwilling co-petitioner?—NO.
o He said that “a ship has a legal personality for maritime purposes. holder's time, also demands undivided attention."
The corporation sole is an acceptable adversary and large fortunes
ride on its cases. The ordinary corporation is a "person" for purposes of
Is Service Contract No. 46 valid?—NO, it is unconstitutional.
the adjudicatory processes, whether it represents proprietary, spiritual,
aesthetic, or charitable causes. So valleys, alpine meadows, rivers,
lakes, estuaries, beaches, ridges, groves of trees, swampland, or even • According to Sec. 2, Art. 12 of the Constitution:
air that feels the destructive pressures of modern technology and o The President may enter into agreements with foreign-owned
modem life. The river is the living symbol of all the life it sustains or corporations involving either technical or financial assistance for
nourishes—fish, aquatic insects, water ouzels, otter, fisher, deer, elk, large-scale exploration, development, and utilization of minerals,
bear, and all other animals, including man, who are dependent on it or petroleum, and other mineral oils according to the general terms
who enjoy it for its sight, its sound, or its life.” and conditions provided by law, based on real contributions to
the economic growth and general welfare of the country. In such
agreements, the State shall promote the development and use of local
In the PH, locus standi in environmental cases has a more scientific and technical resources. The President shall notify the
liberalized approach. Congress of every contract entered into in accordance with this
o The current trend moves towards simplification of provision, within thirty days from its execution.
procedures and facilitating court access in
environmental cases.
SC discussed whether service contracts are still allowed in
the 1987 Constitution.
o In the case of La Bugal, the SC held that the deletion of the
Recently, the landmark Rules of Procedure for words “service contracts” in the
Environmental Cases was approved, it allows for a “citizen Constitution did not amount to a ban on them per se. The
same is evidenced in the deliberations in
the Constitutional Commission.
suit” and permit and Filipino citizen to file to courts violations
of the environmental laws basing on the reasoning that
More importantly, the case of La Bugal enumerated the
safeguards based on the Constitution and SC held
humans are “stewards of nature”:
that SC-46 is null and void for non-compliance:
o The enactment of the Rules of Procedure for Environmental Cases o Such service contracts may be entered into only with respect to
enabled litigants enforcing environmental rights to file their cases as minerals, petroleum and other mineral oils. The grant thereof is subject
citizen suits. to several safeguards, among which are these requirements:
(1) The service contract shall be crafted in accordance with a general
law that will set standard or uniform terms, conditions and
o It liberalized standing for all cases filed enforcing environmental laws
requirements, presumably to attain a certain uniformity in provisions
and collapses the traditional rule on personal and direct interest, based
and avoid the possible insertion of terms disadvantageous to the
on the principle that humans are stewards of nature.
country.
o The need to give animals legal standing in environmental cases has
(2) The President shall be the signatory for the government
been eliminated by the Rules
because, supposedly before an agreement is presented to the
President for signature, it will have been vetted several times over at
since any Filipino citizen, as a steward of nature, is allowed to different levels to ensure that it conforms to law and can withstand
bring a suit to enforce environmental laws. RMM and their public scrutiny.
stewards has locus standing to file this petition. – Hence, (3) Within thirty days of the executed agreement, the President shall
“humans are the stewards of nature”. report it to Congress to give that branch of government an
opportunity to look over the agreement and interpose timely objections,
if any.
• In fact, even before the Rules of Procedure for Environmental Cases
became effective, this Court had already taken a permissive position • 1st requisite: There is a subsisting general law:
on the issue of locus standi in environmental cases. (Oposa). o SC held that PD 87 or the Oil Exploration and Development Act
of 1972 is the general law that
o The right to a balanced and healthful ecology, a right that does not governs the oil exploration.
even need to be stated in our Constitution as it is assumed to exist o Even though it was enacted by Marcos, the same is considered valid
and effective absent a repealing
law. areas. In order to explore for resources in a protected area, the
• 2nd and 3rd requisites: President was not a signatory to SC-46 exploration must be performed in accordance with an environmental
and the same was not submitted to Congress. impact assessment (EIA). The Court noted that JAPEX started the
o SC held that even though there is a general law, the President was seismic surveys before any EIA was performed; therefore its activity
not a signatory and the Congress is not notified of such contract, was unlawful. Id., pp. 33-34. Furthermore, the Tanon Strait is a NIPAS
renders it null and void. area, and exploration and utilization of energy resources can only be
authorized through a law passed by the Philippine Congress. Because
o OSG opined that DOE Sec. acted as an “alter ego” of the President. Congress had not specifically authorized the activity in Tañon Strait,
The same does not apply in this case. the Court declared that no energy exploration should be permitted in
o SC held that in the case of Joson v. Torres, the same principle is that area.
limited, to wit: Under this doctrine, which recognizes the establishment
of a single executive, all executive and administrative organizations are
adjuncts of the Executive Department, the heads of the various
executive departments are assistants and agents of the Chief
Executive, and, except in cases where the Chief Executive is
required by the Constitution or law to act in person or the
exigencies of the situation demand that he act personally.
o Also, in the case of La Bugal, the SC held that “under the doctrine
of constitutional supremacy, if a law or contract violates any norm
of the constitution that law or contract whether promulgated by
the legislative or by the executive branch or entered into by
private persons for private purposes is null and void and without
any force and effect. Thus, since the Constitution is the fundamental,
paramount and supreme law of the nation, it is deemed written in every
statute and contract.”
The Court then held that while SC-46 was authorized Presidential
Decree No. 87 on oil extraction, the contract did not fulfill two additional
constitutional requirements. Section 2 Article XII of the 1987
Constitution requires a service contract for oil exploration and
extraction to be signed by the president and reported to
congress. Because the JAPEX contract was executed solely by the
Energy Secretary, and not reported to the Philippine congress, the
Court held that it was unconstitutional
In addition, the Court also ruled that the contract violated the National
Integrated Protected Areas System Act of 1992 (NIPAS Act), which
generally prohibits exploitation of natural resources in protected