FIRST DIVISION

LEPANTO CONSOLIDATED
MINING CO.,
Petitioner,
- versus -
WMC RESOURCES INTL. PTY.
LTD., WMC PHILIPPINES, INC.
and SAGITTARIUS MINES, INC.,
Respondents.
G.R. No. 1621
Present:
PANGANIBAN, CJ
Chairperson,
YNARES-SANTIAGO,
AUSTRIA-MARTINE,
CA!!E"O, SR., and
C#ICO-NAARIO, JJ.
Pro$%&'ated:
No!"#$"% 2&, 2&&6
(- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -(
) E C I S I O N
C#ICO-NAARIO, J.:
Be*ore Us is a Petition *or Re+ie, on Certiorari %nder R%&e -. o* the
R%&es o* Ci+i& Pro/ed%re, assai&in' the )e/ision
0
o* the Co%rt o* Appea&s in
CA-G.R. SP No. 1-020, dated 30 No+e$4er 3556, ,hi/h dis$issed herein
petitioner7s Petition *or Re+ie, o* the )e/ision
3
o* the O**i/e o* the
President dated 36 "%&8 3553 a**ir$in' in toto the Order
6
o* the Se/retar8 o*
the )epart$ent o* En+iron$ent and Nat%ra& Reso%r/es 9)ENR: dated 0;
)e/e$4er 3550 appro+in' the app&i/ation *or and the /onse<%ent
0
Penned 48 Asso/iate "%sti/e Ro$eo A. Bra,ner, ,ith Asso/iate "%sti/es "ose !. Sa4io, "r.
and "ose C. Re8es, "r., /on/%rrin'. Rollo, pp. ..-2;.
3
O.P. Case No. 53-A-536= id. at 61>-6>0.
6
Re: Trans*er o* the ?inan/ia& and Te/hni/a& Assistan/e A'ree$ent )eno$inated as ?TAA
No. 53- >.-@I= id. at 603-60-.
re'istration o* ?TAA No. 53->.-@I *ro$ AMC Phi&ippines to Sa'ittari%s
Mines, In/.
On 33 Mar/h 0>>., the Phi&ippine Go+ern$ent and AMC
Phi&ippines, the &o/a& ,ho&&8-o,ned s%4sidiar8 o* AMC Reso%r/es
Internationa& Pt8. !td. 9AMC Reso%r/es: e(e/%ted a ?inan/ia& and Te/hni/a&
Assistan/e A'ree$ent, deno$inated as the Co&%$4io ?TAA No. 53->.-@I
9Co&%$4io ?TAA: *or the p%rpose o* &ar'e s/a&e e(p&oration, de+e&op$ent,
and /o$$er/ia& e(p&oration o* possi4&e $inera& reso%r/es in an initia&
/ontra/t area o* >>,6;1 he/tares &o/ated in the pro+in/es o* So%th Cota4ato,
S%&tan B%darat, )a+ao de& S%r, and North Cota4ato in a//ordan/e ,ith
E(e/%ti+e Order No. 31> and )epart$ent Ad$inistrati+e Order No. 26,
Series o* 0>>0.
The Co&%$4io ?TAA is /o+ered in part 48 0.2 $inin' /&ai$s he&d
%nder +ario%s Minera& Prod%/tion Sharin' A'ree$ents 9MPSA: 48 So%th/ot
Minin' Corporation, Ta$paCan Minin' Corporation, and Sa'ittari%s Mines,
In/. 9/o&&e/ti+e&8 /a&&ed the Ta$paCan Co$panies:, in a//ordan/e ,ith the
Ta$paCan Option A'ree$ent entered into 48 AMC Phi&ippines and the
Ta$paCan Co$panies on 3. Apri& 0>>0, as a$ended 48 A$endator8
A'ree$ent dated 0. "%&8 0>>-, *or p%rposes o* e(p&oration o* the $inin'
/&ai$s in Ta$paCan, So%th Cota4ato. The Option A'ree$ent, a$on' other
thin's, pro+ides *or the 'rant o* the ri'ht o* *irst re*%sa& to the Ta$paCan
Co$panies in /ase AMC Phi&ippines desires to dispose o* its ri'hts and
interests in the $inin' /&ai$s /o+erin' the area s%4De/t o* the a'ree$ent.
AMC Reso%r/es s%4se<%ent&8 di+ested itse&* o* its ri'hts and interests
in the Co&%$4io ?TAA, and on 03 "%&8 3555 e(e/%ted a Sa&e and P%r/hase
A'ree$ent ,ith petitioner !epanto o+er its entire shareho&din's in AMC
Phi&ippines, s%4De/t to the e(er/ise o* the Ta$paCan Co$panies7 e(er/ise o*
their ri'ht o* *irst re*%sa& to p%r/hase the s%4De/t shares. On 3; A%'%st 3555,
petitioner so%'ht the appro+a& o* the 03 "%&8 3555 A'ree$ent *ro$ the
)ENR Se/retar8.
In an A'ree$ent dated 2 O/to4er 3555, ho,e+er, the Ta$paCan
Co$panies so%'ht to e(er/ise its ri'ht o* *irst re*%sa&. Th%s, in a &etter dated
06 O/to4er 3555, petitioner assai&ed the Ta$paCan Co$panies7 e(er/ise o*
its ri'ht o* *irst re*%sa&, a&&e'in' that the Ta$paCan Co$panies *ai&ed to
$at/h the ter$s and /onditions set *orth in the 03 "%&8 3555 A'ree$ent.
Therea*ter, petitioner *i&ed a /ase
-
*or InD%n/tion, Spe/i*i/
Per*or$an/e, Ann%&$ent o* Contra/ts and Contra/t%a& Inter*eren/e ,ith the
Re'iona& Tria& Co%rt o* MaCati, Bran/h 06., a'ainst AMC Reso%r/es,
AMC Phi&ippines, and the Ta$paCan Co$panies. AMC Phi&ippines and
the Ta$paCan Co$panies $o+ed *or the dis$issa& o* said /ase. Said
Motion to )is$iss ha+in' 4een denied, AMC Phi&ippines /ha&&en'ed the
order dis$issin' the Motion on appea&
.
4e*ore the Co%rt o* Appea&s ,hi/h
s%4se<%ent&8 ordered the dis$issa& o* the /ase on the 'ro%nd o* *or%$
shoppin' in this ,ise:
Ne+erthe&ess, the Co%rt *inds that pri+ate respondent is '%i&t8 o*
*or%$-shoppin'. There is *or%$-shoppin' ,hene+er, as a res%&t o* an
ad+erse opinion in one *or%$, a part8 seeCs a *a+ora4&e opinion 9other
than 48 appea& or /ertiorari: in another. The prin/ip&e app&ies not on&8
,ith respe/t to s%its *i&ed in /o%rts 4%t a&so in /onne/tion ,ith &iti'ation
/o$$en/ed in the /o%rts ,hi&e an ad$inistrati+e pro/esses and in
anti/ipation o* an %n*a+ora4&e ad$inistrati+e r%&in' and a *a+ora4&e /o%rt
r%&in'.
In this /ase, petitioners ar'%e that pri+ate respondent is '%i&t8 o*
*or%$ shoppin' *or ha+in' &od'ed the /o$p&ain 4e*ore respondent Co%rt
pendin' a/tion 48 the Se/retar8 o* the )ENR thro%'h the Mines and Geo-
S/ien/es B%rea% 9MGB: on its appro+a& o* the Sa&e and P%r/hase
A'ree$ent dated "%&8 03, 3555. Pri+ate respondent on the other hand,
-
)o/Ceted as Ci+i& Case No. 50-;1.
.
CA G.R. SP No. 2.->2.
opposes the *ore'oin' /ontention ar'%in' that the MGB ,i&& 4e $ere&8
e(er/isin' its ad$inistrati+e not <%asi-D%di/ia& po,er.
The a/tion 4e*ore respondent /o%rt ,as *i&ed 48 pri+ate respondent
to /o$pe& petitioner AMC Reso%r/es to /on+e8 its e<%it8 in AMC Phi&s.
and #i&&/rest to the *or$er. Mean,hi&e, in the /ase 4e*ore the MGB,
pri+ate respondent so%'ht the appro+a& o* Sa&e and that the MGB7s
a%thorit8 o+er the /ase is p%re&8 ad$inistrati+e, 4%t *%rther re+ie, sho,s
that pri+ate respondent raised /ontentio%s iss%es ,hi/h need reso&%tion 48
the MGB 4e*ore it /an re/o$$end an8 appro+a& to the Se/retar8 o* the
)ENR. Parti/%&ar&8, in its &etter dated O/to4er 06, 3555 to the Se/retar8
o* the )ENR, pri+ate respondent posed its o4De/tion to the appro+a& o* the
Sa&es and P%r/hase a'ree$ents 4et,een AMC Reso%r/es and the
Ta$paCan Co$panies, assertin' that the &atter *ai&ed to +a&id&8 e(er/ise its
ri'ht o* *irst re*%sa&. A&so, in its &etter to the )ire/tor o* the MGB dated
)e/e$4er ;, 3555, pri+ate respondent spe&&ed o%t in detai& its reasons *or
o4De/tin' to the a'ree$ent 4et,een AMC Reso%r/es and the Ta$paCan
Co$panies, and in the sa$e 4reath, ar'%ed *or the appro+a& o* its o,n
/ontra/t. And 4e/a%se o* the opposin' /&ai$s posited 48 pri+ate
respondent and petitioners, the MGB ,as /onstrained to re<%ire the parties
to s%4$it their respe/ti+e /o$$ents. At the D%n/t%re, the MGB7s a%thorit8
/eased to 4e ad$inistrati+e. E+ident&8, the MGB has to re+ie, a&& these
opposin' /ontentions and reso&+e the sa$e. A reso&%tion o* the MGB on
,hi/h /ontra/t to re/o$$end or endorse to the Se/retar8 o* the )ENR *or
appro+a& ,i&& ne/essari&8 in/&%de a de/&aration on the +a&idit8 o* the
di**erent Sa&e and P%r/hase A'ree$ents e(e/%ted 4et,een the disa'reein'
parties, as ,e&& as on the e(er/ise o* the Ta$paCan Co$panies e(er/ise o*
its ri'ht o* *irst re*%sa& and its <%a&i*i/ation as a /ontra/tor %nder the
?TAA. E+en the MGB is a,are that the disp%te re+o&+es aro%nd these
sa&es and p%r/hase a'ree$ents. #en/e, it /annot 4e 'ainsaid that the
MGB ,i&& 4e e(er/isin' its <%asi-D%di/ia& po,ers in reso&+in' the /on*&i/t
4e*ore it. Ahether the MGB /an +a&id&8 e(er/ise s%/h D%risdi/tion o+er
the /ontro+ers8 is another iss%e 4%t nonethe&ess i$$ateria& in deter$inin'
,hether pri+ate respondent is '%i&t8 o* *or%$-shoppin'. Ahat is
deter$inati+e is the *i&in' o* t,o 93: separate a/tions in di**erent *or a
4ased prin/ipa&&8 on the sa$e /a%se on the s%pposition that one or the
other /o%rt ,o%&d $aCe a *a+ora4&e disposition. Th%s, it is not hi'h&8
%n&iCe&8 that respondent Co%rt and MGB ,i&& /o$e %p ,ith /on*&i/tin'
prono%n/e$ents on the disp%te, there48 /reatin' a <%andar8 as to ,hi/h
one ,i&& pre+ai&. Pri+ate respondent7s a/t %ndisp%ta4&8 /onstit%tes a /&ear
/ase o* *or%$-shoppin', a 'ro%nd *or s%$$ar8 dis$issa& ,ith preD%di/e o*
the a/tion. The respondent /o%rt /o$$itted 'ra+e a4%se o* dis/retion in
re*%sin' to dis$iss Ci+i& Case No. 50-5;1 on 'ro%nd o* *or%$-shoppin'.
2
Aith the denia& o* petitioner7s Motion *or Re/onsideration, the /ase
1
,as e&e+ated to this Co%rt. In a )e/ision dated 3- Septe$4er 3556, the
2
Rollo, pp. 635-633.
1
Lepanto Consolidated Mining Co. v. WMC Resources Intl. Pty Ltd., G.R. Nos. 0.6;;. E
0.230-, 3- Septe$4er 3556, -.; SCRA 150.
Co%rt a**ir$ed the )e/ision o* the appe&&ate /o%rt and dis$issed the
petition. In said )e/ision, the Co%rt e&%/idated that:
Tr%e, the <%estioned a'ree$ents o* sa&e 4et,een petitioner and
AMC on one hand and 4et,een AMC and the Ta$paCan Co$panies on
the other pertain to trans*er o* shares o* sto/C *ro$ one entit8 to another.
B%t said shares o* sto/C represent o,nership o* $inin' ri'hts or interest in
$inin' a'ree$ents. #en/e, the po,er o* the MGB to r%&e on the +a&idit8
o* the <%estioned a'ree$ents o* sa&e, ,hi/h ,as raised 48 petitioner
4e*ore the )ENR, is ine(tri/a4&8 &inCed to the +er8 nat%re o* s%/h
a'ree$ents o+er ,hi/h the MGB has D%risdi/tion %nder the &a,.
Una+oida4&8, there is identit8 o* re&ie*s that petitioner seeCs *ro$ 4oth the
MGB and the RTC.
?or%$ shoppin' e(ists ,hen 4oth a/tions in+o&+e the sa$e
transa/tions, sa$e essentia& *a/ts and /ir/%$stan/es and raise identi/a&
/a%ses o* a/tions, s%4De/t $atter, and iss%es. S%/h e&e$ents are e+ident&8
present in 4oth the pro/eedin's 4e*ore the MGB and 4e*ore the tria& /o%rt.
The /ase instit%ted ,ith the RTC ,as th%s /orre/t&8 ordered dis$issed 48
the appe&&ate /o%rt on the 'ro%nd o* *or%$ shoppin'. Besides, not on&8 did
petitioner /o$$it *or%$ shoppin' 4%t it a&so *ai&ed to e(ha%st
ad$inistrati+e re$edies 48 optin' to 'o ahead in seeCin' re&ie*s *ro$ the
/o%rt e+en ,hi&e those sa$e re&ie*s ,ere appropriate&8 a,aitin' reso&%tion
48 the MGB.
;
In the interi$, on 05 "an%ar8 3550, /ontendin' that the 03 "%&8
A'ree$ent 4et,een petitioner and AMC Phi&ippines had e(pired d%e to
*ai&%re to $eet the ne/essar8 pre/onditions *or its +a&idit8, AMC Reso%r/es
and the Ta$paCan Co$panies e(e/%ted another Sa&e and P%r/hase
A'ree$ent, ,here Sa'ittari%s Mines, In/. ,as desi'nated assi'nee and
/orporate +ehi/&e ,hi/h ,o%&d a/<%ire the shareho&din's and %ndertaCe the
Co&%$4io ?TAA a/ti+ities. On 0. "an%ar8 3550, Sa'ittari%s Mines, In/.
in/reased its a%thoriFed /apita&iFation to P3.5 $i&&ion. S%4se<%ent&8, AMC
Reso%r/es and Sa'ittari%s Mines, In/. e(e/%ted a )eed o* A4so&%te Sa&e o*
Shares o* Sto/Cs on 36 "an%ar8 3550.
A*ter d%e /onsideration and e+a&%ation o* the *inan/ia& and te/hni/a&
<%a&i*i/ations o* Sa'ittari%s Mines, In/., the )ENR Se/retar8 appro+ed the
;
Id. at 105-100.
trans*er o* the Co&%$4io ?TAA *ro$ AMC Phi&ippines to Sa'ittari%s Mines,
In/. in the assai&ed Order. A//ordin' to said Order, p%rs%ant to Se/tion 22
o* )epart$ent Ad$inistrati+e Order No. >2--5, as a$ended, Sa'ittari%s
Mines, In/. $eets the <%a&i*i/ation re<%ire$ents as Contra/tor-Trans*eree o*
?TAA No. 53->.-@I, and that the app&i/ation *or trans*er o* said ?TAA ,ent
thr% the pro/ed%re and other re<%ire$ents set *orth %nder the &a,.
A''rie+ed 48 the trans*er o* the Co&%$4io ?TAA in *a+or o*
Sa'ittari%s Mines, In/., petitioner *i&ed a Petition *or Re+ie, o* the Order o*
the )ENR Se/retar8 ,ith the O**i/e o* the President. Petitioner assai&s the
+a&idit8 o* the 0; )e/e$4er 3550 Order on the 'ro%nd that: 0: it +io&ates the
/onstit%tiona& ri'ht o* !epanto to d%e pro/ess= 3: it pree$pts the reso&%tion
o* +er8 /r%/ia& &e'a& iss%es pendin' ,ith the re'%&ar /o%rts= and 6: it
4&atant&8 +io&ates Se/tion -5 o* the Minin' A/t.
In a )e/ision dated 36 "%&8 3553, the O**i/e o* the President
dis$issed the petition in this ,ise:
At the o%tset, it 4ears e$phasis that <%ite /ontrar8 to the ar'%$ent
o* petitioner !epanto, the a4o+e Order o* the )ENR Se/retar8 is not
+io&ati+e o* the Minin' !a,. Sin/e the s%4De/t Co&%$4io ?TAA ,as
'ranted in a//ordan/e ,ith the pertinent pro+isions o* E(e/%ti+e Order
No. 31> and )epart$ent Ad$inistrati+e Order No. 26 on 33 Mar/h 0>>.,
or prior to the e**e/ti+it8 o* the Phi&ippine Minin' A/t o* 0>>., espe/ia&&8
as it hi'h&i'hts the non-i$pair$ent o* e(istin' $inin' andGor <%arr8in'
ri'hts, %nder Se/tion 0-.0 94: thereo*, on&8 the /onsent o* )ENR Se/retar8
is re<%ired. To ho&d other,ise ,o%&d 4e to %nd%&8 i$pose a 4%rden on
trans*eror AMC and there48 restri/t its *reedo$ to dispose o* or a&ienate
this propert8 ri'ht ,itho%t d%e pro/ess. Th%s, %nder the Re+ised
I$p&e$entin' R%&es and Re'%&ations o* the Phi&ippine Minin' A/t o*
0>>., Chapter @@@ thereo* e(press&8 e/hoes the '%arant8:
HSe/tion 313. Non-Impairment o !"isting
Mining#$uarrying Rig%ts.- A&& +a&id and e(istin' $inin'
&ease /ontra/ts, per$itsG&i/enses, &eases pendin' rene,a&,
Minera& Prod%/tion Sharin' A'ree$ents, ?TAA 'ranted
%nder E(e/%ti+e Order No. 31>, at the date o* the A/t sha&&
re$ain +a&id, sha&& not 4e i$paired and sha&& 4e re/o'niFed
48 the Go+ern$ent ( ( (.
( ( ( Pro+ided, *ina&&8, That this pro+ision is
app&i/a4&e on&8 to a&& ?TAAGMPSA app&i/ations *i&ed %nder
)epart$ent Ad$inistrati+e Order No. 26 prior to the
e**e/ti+it8 o* the a/t and these i$p&e$entin' r%&es and
re'%&ations.I
As /orre/t&8 stated 48 the MGB )ire/tor and a**ir$ed 48 the
)ENR Se/retar8, Se/tion 0-.0 o* the Co&%$4io ?TAA pro+ides that the
?TAA $a8 4e trans*erred pro+ided that the Se/retar8 /onsents to the
sa$e. P%rs%ant to Se/tion 003 o* the Minin' A/t and Se/tion 313 o* )AO
No. >2--5, as a$ended, on non-i$pair$ent o* e(istin' $inin' ri'hts, the
s%4De/t app&i/ation *or trans*er o* the Co&%$4io ?TAA to Sa'ittari%s
re<%ires on&8 the appro+a& o* the )ENR Se/retar8.
Moreo+er, there is no $erit in petitioner !epanto7s ar'%$ent that
the )ENR Se/retar8 and /onse<%ent&8, this O**i/e, has no D%risdi/tion
o+er the s%4De/t $atter in iss%e. The assai&ed Order o* the )ENR
Se/retar8 ,as p%rs%ant to the &atter7s e(er/ise o* the ,e&&-entren/hed
do/trine o* pri$ar8 D%risdi/tion o* ad$inistrati+e a'en/ies.
B8 +irt%e o* the operation o* the do/trine o* pri$ar8 D%risdi/tion,
H/o%rts /annot and ,i&& not deter$ine a /ontro+ers8 in+o&+in' a <%estion
,hi/h is ,ithin the D%risdi/tion o* an ad$inistrati+e tri4%na&, espe/ia&&8
,here the <%estion de$ands the e(er/ise o* so%nd ad$inistrati+e
dis/retion re<%irin' the spe/ia& Cno,&ed'e, e(perien/e and ser+i/es o* the
tri4%na& to deter$ine te/hni/a& and intri/ate $atters o* *a/t and ,here a
%ni*or$it8 o* r%&in' is essentia& to /o$p&8 ,ith the p%rposes re'%&ator8
stat%te ad$inistered.I 9Province o &am'oanga del Norte v. Court o
(ppeals, 6-3 SCRA .-> J3555K= )actoran v. Court o (ppeals, 635 SCRA
.65 J0>>>K= *rett v. Intermediate (ppellate Court, 0>0 SCRA 2;1 J0>>5K=
$ualitrans Limousine +ervice, Inc. v. Royal Class Limousine +ervice, 01>
SCRA .2> J0>;>K:. Th%s, e+en tho%'h an a/tion $a8 4e &od'ed in /o%rt
that is ostensi4&8 *or ann%&$ent or Hres/ission o* ,hat appears to 4e an
ordinar8 /i+i& /ontra/t /o'niFa4&e 48 a /i+i& /o%rt,I the do/trine o* pri$ar8
D%risdi/tion sti&& app&ies. 9Industrial !nterprises, Inc. v. Court o (ppeals,
0;- SCRA -32 J0>>5K:.
Se/tion -, Chapter 0, Tit&e @IL, BooC IL o* the Ad$inistrati+e
Code o* 0>;1 spe/i*ies the po,ers and *%n/tions o* the )ENR. A&so, the
Phi&ippine Minin' A/t o* 0>>. pro+ides that the )ENR Hsha&& 4e the
pri$ar8 'o+ern$ent a'en/8 responsi4&e *or the /onser+ation,
$ana'e$ent, de+e&op$ent, and proper %se o* the State7s $inera& reso%r/es
in/&%din' those in reser+ations, ,atershed areas, and &ands o* the p%4&i/
do$ain. The Se/retar8 sha&& ha+e the a%thorit8 to enter into $inera&
a'ree$ents on 4eha&* o* the Go+ern$ent %pon the re/o$$endation o* the
)ire/tor, pro$%&'ate s%/h r%&es and re'%&ations as $a8 4e ne/essar8 to
i$p&e$ent the intent and pro+isions o* this A/t.I 9Chapter II, Se/tion ;:.
Sin/e an ?TAA is Ha /ontra/t in+o&+in' *inan/ia& or te/hni/a& assistan/e
*or &ar'e-s/a&e e(p&oration, de+e&op$ent and %ti&iFation o* $inera&
reso%r/esI 9I'id., Chapter 0, Se/tion 6 JrK:, an8 iss%e a**e/tin' the sa$e is
ind%4ita4&8 ,ithin the pri$ar8 D%risdi/tion o* the )ENR, as in *a/t, the
'o+ern$ent enters into ?TAA7s thro%'h the )ENR 9I'id., Chapter LI,
Se/tion 66:.
There is no disp%te that the instant /ase in+o&+es and re<%ires the
spe/ia& te/hni/a& Cno,&ed'e and e(pertise o* the )ENR. In the
deter$ination 48 the )ENR o* a H<%a&i*ied personI p%rs%ant to the
Phi&ippine Minin' A/t o* 0>>., s%/h person $%st possess the te/hni/a& and
*inan/ia& /apa4i&it8 to %ndertaCe $inera& reso%r/es de+e&op$entI.
9Chapter I, Se/tion 6 Ja<K: O4+io%s&8, this deter$ination pe/%&iar&8 &ies
,ithin the e(pertise o* the )ENR.
The +a&idit8 o* the s%//essi+e trans*ers is not a /i+i& iss%e, /ontrar8
to the a&&e'ation o* petitioner !epanto, 4e/a%se +a&idit8 o* trans*er
depends on te/hni/a& <%a&i*i/ations o* the trans*eree and /o$p&ian/e ,ith
the )ENR re<%ire$ents on <%a&i*i/ations, a&& o* ,hi/h re<%ire
ad$inistrati+e e(pertise. No'a$(), *"'+'+on"% L"*an'o +, ",'o**"d -%o#
a,,a+(+n. '/" *%+#a%) 01%+,d+2'+on o- '/" DENR ,+n2" *"'+'+on"%
L"*an'o +',"(- an2/o%"d +', P"'+'+on 3cf. **. 4567 on '/" 2on'"n'+on '/a',
a(("."d(), 8'/" Ta#*a9an Co#*an+", -a+("d 'o #a'2/ '/" '"%#, and
2ond+'+on, o- '/" :1() 12 A.%""#"n' ;+'/ *"'+'+on"% L"*an'o +n '/a'
'/") d+d no' *o,,",, '/" -+nan2+a( and '"2/n+2a( <1a(+-+2a'+on, 1nd"%
'/" M+n+n. A2' and +', I#*("#"n'+n. R1(",=. P"'+'+on"% L"*an'o,
o$0"2'+on, '/"%"-o%" .o +n'o '/" !"%) <1a(+-+2a'+on, o- a '%an,-"%""
;/+2/ +, a '"2/n+2a( +,,1".
This /ontention is a re/o'nition 48 petitioner !epanto itse&* o* the
*a/t that the /r%/ia& and deter$inati+e iss%e in the instant /ase is 'ro%nded
on the *inan/ia& and te/hni/a& <%a&i*i/ations o* a trans*eree, ,hi/h iss%e,
indisp%ta4&8, is ,ithin the e(/&%si+e do$ain and e(pertise o* the )ENR
and not o* the /o%rts.
( ( ( (
Mo%"o!"%, *"'+'+on"% L"*an'o, $) +', 2ond12', +, a.a+n ",'o**"d
-%o# a,,a+(+n. '/" DENR, 01%+,d+2'+on a-'"% a2'+!"() *a%'+2+*a'+n. +n
'/" *%o2""d+n., '/"%"+n and ,""9+n. a--+%#a'+!" %"(+"-. A part8 ,ho
in+oCed the D%risdi/tion Jo*K a tri4%na& and a/ti+e&8 parti/ipated in the
pro/eedin's therein /annot i$p%'n s%/h D%risdi/tion ,hen *a/ed ,ith an
ad+erse de/ision. 9c. *riad (gro ,evelopment Corporation v. dela +erna,
01- SCRA .3- J0>;>K:.
>
JE$phasis o%rsK
Aith the denia& o* its Motion *or Re/onsideration, petitioner &od'ed an
appea& 4e*ore the Co%rt o* Appea&s ,hi/h ,as /onse<%ent&8 dis$issed 48
>
OP )e/ision pp. --2, 00-03= rollo, pp. 6;3-6;-, 6;>-6>5.
the appe&&ate /o%rt in the herein assai&ed )e/ision. A//ordin' to the Co%rt
o* Appea&s:
Petitioner *or/e*%&&8 ar'%es that the )ENR Se/retar8 had %s%rped
the po,er o* the President o* the Phi&ippines to appro+e the trans*er o*
?TAA, as %nder the pro+ision o* Se/tion -5 o* the Phi&ippine Minin' A/t
o* 0>>., an8 trans*er or assi'n$ent o* an ?TAA has to 4e appro+ed not 48
the )ENR Se/retar8 4%t 48 the President.
The ar'%$ent does not ,ash.
The iss%e hin'es on the app&i/a4i&it8 o* Se/tion -5 o* RA 1>-3 or
the Phi&ippine Minin' A/t o* 0>>., ,hi/h tooC *or/e on 0- Apri& 0>>., on
the trans*er o* ?TAA *ro$ AMC to the Ta$paCan Co$panies, parti/%&ar&8
the Sa'ittari%s Mines, In/.
The said &a, pro+ides:
HSe/. -5. Assi'n$entGTrans*er M A *inan/ia& or
te/hni/a& assistan/e a'ree$ent $a8 4e assi'ned or
trans*erred, in ,ho&e or in part, to a <%a&i*ied person s%4De/t
to the prior appro+a& o* the President: Pro+ided, that the
President sha&& noti*8 Con'ress o* e+er8 *inan/ia& or
te/hni/a& assistan/e a'ree$ent assi'ned or /on+erted in
a//ordan/e ,ith this pro+ision ,ithin thirt8 965: da8s *ro$
the date o* appro+a&.I
#o,e+er, the a4o+e pro+ision does not app&8 to the Co&%$4io
?TAA ,hi/h ,as entered into 48 and 4et,een the Phi&ippine Go+ern$ent
and AMCP on 33 Mar/h 0>>., or prior to the e**e/ti+it8 o* RA No. 1>-3.
Se/tion 0-.0 o* the Co&%$4io ?TAA, %nder ,hi/h the Ta$paCan
Co$panies /&ai$ their ri'hts to *irst re*%sa&, reads:
H0-.0 Assi'n$ent
HThe Contra/tor $a8 assi'n, trans*er, /on+e8 or other,ise
dispose o* a&& or an8 part o* its interest in the A'ree$ent
pro+ided that s%/h assi'n$ent, trans*er, /on+e8an/e or
disposition does not in*rin'e an8 Phi&ippine &a, app&i/a4&e
to *orei'n o,nership:
9a: to an A**i&iate pro+ided that it 'i+es noti/e o* s%/h
assi'n$ent to the Se/retar8 ,ithin 65 da8s a*ter s%/h
assi'n$ent= or
94: to an8 third part8 pro+ided that the Se/retar8 /onsents
to the sa$e, ,hi/h /onsent sha&& not 4e %nreasona4&8
,ithhe&d.I
Se/tion 05, Arti/&e III o* the Phi&ippine Constit%tion enDoins
Con'ress *ro$ passin' a &a, i$pairin' the o4&i'ation o* /ontra/ts. It is
a(io$ati/ that a &a, that i$pairs an o4&i'ation o* /ontra/t a&so +io&ates the
d%e pro/ess /&a%se. The o4&i'ation o* an e(istin' /ontra/t is i$paired
,hen its ter$s and /onditions are /han'ed 48 &a,, ordinan/e, or an8
iss%an/e ha+in' the *or/e o* &a,, there48 ,eaCenin' the position or
di$inishin' the ri'hts o* a part8 to the /ontra/t. The e(tent o* the /han'e
is not $ateria&. It is not a <%estion o* de'ree or $anner or /a%se, 4%t o*
en/roa/hin' in an8 respe/t on its o4&i'ations or dispensin' ,ith an8 part
o* its *or/e. I$pair$ent has a&so 4een predi/ated on &a,s ,hi/h, ,itho%t
destro8in' /ontra/ts, dero'ate *ro$ s%4stantia& /ontra/t%a& ri'hts.
The /ondition o* RA No. 1>-3 re<%irin' the *%rther appro+a& o* the
President, i* $ade to app&8 retroa/ti+e&8 to the Co&%$4io ?TAA, ,o%&d
i$pair the o4&i'ation o* /ontra/ts si$p&8 4e/a%se it /onstit%tes a
restri/tion on the ri'ht o* the /ontra/tor to assi'n or trans*er its interest in
an ?TAA. In other ,ords, it di$inished the +ested ri'hts o* the /ontra/tor
to assi'n or trans*er its interests on $ere appro+a& o* the )ENR Se/retar8.
The restri/tion is there*ore s%4stanti+e, and not $ere&8 pro/ed%ra&,
/ontrar8 to the /ontention o* petitioner.
( ( ( (
!iCe,ise $i&itatin' a'ainst the petitioner7s side is the do/trine that
stat%tes are to 4e /onstr%ed as ha+in' on&8 a prospe/ti+e operation %n&ess
the p%rpose and intention o* the !e'is&at%re to 'i+e the$ a retrospe/ti+e
e**e/t is e(press&8 de/&ared or is ne/essari&8 i$p&ied *ro$ the &an'%a'e
%sed. In /ase o* do%4t, the do%4t $%st 4e reso&+ed a'ainst the
retrospe/ti+e e**e/t. At an8 rate, e+en i* RA No. 1>-3 4e a//orded a
retroa/ti+e e**e/t, this does not ipso acto per$it the app&i/ation o* the
re<%ire$ent o* se/%rin' a prior presidentia& /onsent to the trans*er o*
?TAA, *or, to iterate, this ,o%&d i$pair the o4&i'ation o* /ontra/t. In s%/h
a /ase, the /orre/t app&i/ation o* RA No. 1>-3 is *or the pro+isions to J4eK
$ade to app&8 on e(istin' ?TAAs on&8 i* the sa$e ,o%&d not res%&t in
i$pair$ent o* o4&i'ation o* /ontra/ts.
This is as it sho%&d 4e. To ho&d other,ise ,o%&d 4e to %nd%&8
i$pose a 4%rden on trans*eror AMC and there48 restri/t its *reedo$ to
dispose o* or a&ienate its propert8 ri'ht ,itho%t d%e pro/ess. It /onstit%tes
i$pair$ent o* o4&i'ation o* /ontra/ts, ,hi/h the ?%nda$enta& !a,
enDoins, and /ontra+enes the do/trine o* prospe/ti+e app&i/ation o* &a,s.
05
#en/e, the instant Petition.
The pi+ota& iss%e to 4e reso&+ed herein in+o&+es the propriet8 o* the
app&i/ation to the Co&%$4io ?TAA o* Rep%4&i/ A/t No. 1>-3 or the
Phi&ippine Minin' A/t o* 0>>., parti/%&ar&8 Se/tion -5 thereo* re<%irin' the
05
CA )e/ision, pp. 2->= rollo, pp. 25-26.
appro+a& o* the President o* the assi'n$ent or trans*er o* *inan/ia& or
te/hni/a& assistan/e a'ree$ents. Petitioner $aintains that respondents *ai&ed
to /o$prehend the e(press &an'%a'e o* Se/tion -5 o* the Phi&ippine Minin'
A/t o* 0>>. re<%irin' the appro+a& o* the President on the trans*er or
assi'n$ent o* a *inan/ia& or te/hni/a& assistan/e a'ree$ent.
To reso&+e this $atter, it is i$perati+e at this point to stress the *a/t
that the Co&%$4io ?TAA ,as entered into 48 the Phi&ippine Go+ern$ent
and AMC Phi&ippines on 33 Mar/h 0>>., %ndo%4ted&8 4e*ore the Phi&ippine
Minin' A/t o* 0>>. tooC e**e/t on 0- Apri& 0>>.. ?%rther$ore, it is
%ndisp%ted that said ?TAA ,as 'ranted in a//ordan/e ,ith E(e/%ti+e Order
No. 31> and )epart$ent Ad$inistrati+e Order No. 26, Series o* 0>>0,
,hi/h does not /ontain an8 si$i&ar /ondition on the trans*er or assi'n$ent
o* *inan/ia& or te/hni/a& assistan/e a'ree$ents. Th%s, it ,o%&d see$ that
,hat petitioner ,o%&d ,ant this Co%rt to espo%se is the retroa/ti+e
app&i/ation o* the Phi&ippine Minin' A/t o* 0>>. to the Co&%$4io ?TAA, a
+a&id a'ree$ent /on/&%ded prior to the naissan/e o* said pie/e o* &e'is&ation.
This post%re o* petitioner ,o%&d /&ear&8 /ontradi/t the esta4&ished
&e'a& do/trine that stat%tes are to 4e /onstr%ed as ha+in' on&8 a prospe/ti+e
operation %n&ess the /ontrar8 is e(press&8 stated or ne/essari&8 i$p&ied *ro$
the &an'%a'e %sed in the &a,. As reiterated in the /ase o* +egovia v. Noel,
--
a so%nd /annon o* stat%tor8 /onstr%/tion is that a stat%te operates
prospe/ti+e&8 on&8 and ne+er retroa/ti+e&8, %n&ess the &e'is&ati+e intent to the
/ontrar8 is $ade $ani*est either 48 the e(press ter$s o* the stat%te or 48
ne/essar8 i$p&i/ation.
Arti/&e - o* the Ci+i& Code pro+ides that: H!a,s sha&& not ha+e a
retroa/ti+e e**e/t %n&ess therein other,ise pro+ided.I A//ordin' to this
00
-1 Phi&. .-6 90>3.:.
pro+ision o* &a,, in order that a &a, $a8 ha+e retroa/ti+e e**e/t it is
ne/essar8 that an e(press pro+ision to this e**e/t 4e $ade in the &a,,
other,ise nothin' sho%&d 4e %nderstood ,hi/h is not e$4odied in the &a,.
03
?%rther$ore, it $%st 4e 4orne in $ind that a &a, is a r%&e esta4&ished to
'%ide o%r a/tions ,itho%t no 4indin' e**e/t %nti& it is ena/ted, ,here*ore, it
has no app&i/ation to past ti$es 4%t on&8 to *%t%re ti$e, and that is ,h8 it is
said that the &a, &ooCs to the *%t%re on&8 and has no retroa/ti+e e**e/t %n&ess
the &e'is&ator $a8 ha+e *or$a&&8 'i+en that e**e/t to so$e &e'a& pro+isions.
06
In the /ase at 4ar, there is an a4sen/e o* either an e(press de/&aration
or an i$p&i/ation in the Phi&ippine Minin' A/t o* 0>>. that the pro+isions o*
said &a, sha&& 4e $ade to app&8 retroa/ti+e&8, there*ore, an8 se/tion o* said
&a, $%st 4e $ade to app&8 on&8 prospe/ti+e&8, in +ie, o* the r%&e that a
stat%te o%'ht not to re/ei+e a /onstr%/tion $aCin' it a/t retroa/ti+e&8, %n&ess
the ,ords %sed are so /&ear, stron', and i$perati+e that no other $eanin'
/an 4e anne(ed to the$, or %n&ess the intention o* the &e'is&at%re /annot 4e
other,ise satis*ied.
0-
Be that as it $a8, ass%$in' *or the saCe o* ar'%$ent that Ae are to
app&8 the Phi&ippine Minin' A/t o* 0>>. retrospe/ti+e&8 to the Co&%$4io
?TAA, the &a/C o* presidentia& appro+a& ,i&& not 4e *ata& as to render the
trans*er i&&e'a&, espe/ia&&8 sin/e, as in the instant /ase, the a&&e'ed &a/C o*
presidentia& appro+a& has 4een re$edied ,hen petitioner appea&ed the $atter
to the O**i/e o* the President ,hi/h appro+ed the Order o* the )ENR
Se/retar8 'rantin' the app&i/ation *or trans*er o* the Co&%$4io ?TAA to
Sa'ittari%s Mines, In/. As e(po%nded 48 the Co%rt in the Reso&%tion o* the
03
*alat'at v. Court o (ppeals, G.R. No. 6261;, 31 "an%ar8 0>>3, 35. SCRA -0>, -32.
06
Id.
0-
S%pra note >.
Motion *or Re/onsideration in the La *ugal-*Laan .ri'al (ssociation, Inc.
v. Ramos
-/
/ase, in+o&+in' the sa$e ?TAA s%4De/t o* the instant /ase:
( ( ( Moreo+er, ,hen the trans*eree o* an ?TAA is another *orei'n
/orporation, there is a &o'i/a& app&i/ation o* the re<%ire$ent o* prior
appro+a& 48 the President o* the Rep%4&i/ and noti*i/ation to Con'ress in
the e+ent o* assi'n$ent or trans*er o* an ?TAA. In this sit%ation, s%/h
appro+a& and noti*i/ation are appropriate sa*e'%ards, /onsiderin' that the
ne, /ontra/tor is the s%4De/t o* a *orei'n 'o+ern$ent.
On '/" o'/"% /and, ;/"n '/" '%an,-"%"" o- '/" FTAA /a**"n,
'o $" a F+(+*+no 2o%*o%a'+on, '/" n""d -o% ,12/ ,a-".1a%d +, no'
2%+'+2a(> /"n2", '/" (a29 o- *%+o% a**%o!a( and no'+-+2a'+on #a) no' $"
d""#"d -a'a( a, 'o %"nd"% '/" '%an,-"% +n!a(+d. ?",+d",, +' +, no' a, +-
a**%o!a( $) '/" P%",+d"n' +, "n'+%"() a$,"n' +n '/+, +n,'an2". ( ( ( That
/ase in+o&+ed the re+ie, o* the )e/ision o* the Co%rt o* Appea&s dated
No+e$4er 30, 3556 in CA G.R. SP No. 1-020, ,hi/h a**ir$ed the )ENR
Order dated )e/e$4er 60, 3550 and the )e/ision o* the O**i/e o* the
President dated "%&8 36, 3553, $o'/ approving '/" a,,+.n#"n' o- '/"
WMCP FTAA 'o Sa.+''a%+1,.
02
9E$phasis o%rs.:
?%rther$ore, i* petitioner ,as indeed o* the $ind that Se/tion -5 o*
the Phi&ippine Minin' A/t o* 0>>. is app&i/a4&e to the Co&%$4io ?TAA, th%s
ne/essitatin' the appro+a& o* the President *or the +a&idit8 o* its trans*er or
assi'n$ent, it ,o%&d see$ /ontradi/tor8 that petitioner so%'ht the appro+a&
o* the )ENR Se/retar8, and not that o* the President, o* its 03 "%&8 3555
Sa&e and P%r/hase A'ree$ent ,ith AMC Reso%r/es. #en/e, it $a8 4e
'&i$psed *ro$ the +er8 a/t o* petitioner that it re/o'niFed that the pro+ision
o* the Co&%$4io ?TAA re'ardin' the /onsent o* the )ENR Se/retar8 ,ith
respe/t to the trans*er o* said ?TAA $%st 4e %phe&d.
It is en'rained in D%rispr%den/e that the /onstit%tiona& prohi4ition on
the i$pair$ent o* the o4&i'ation o* /ontra/t does not prohi4it e+er8 /han'e
in e(istin' &a,s,
01
and to *a&& ,ithin the prohi4ition, the /han'e $%st not
on&8 i$pair the o4&i'ation o* the e(istin' /ontra/t, 4%t the i$pair$ent $%st
0.
G.R. No. 031;;3, 0 )e/e$4er 355-, --. SCRA 0.
02
Id. at ;>.
01
P%il. Rural !lectric Coop. (ssoc.Inc. v. ,epartment o Interior and Local 0overnment
+ecretary, -.0 Phi&. 2;6, 2>> 93556:.
4e s%4stantia&.
0;
S%4stantia& i$pair$ent as /on/ei+ed in re&ation to
i$pair$ent o* /ontra/ts has 4een e(p&ained in the /ase o* Clemons v.
Nolting,
-1
,hi/h stated that: a &a, ,hi/h /han'es the ter$s o* a &e'a&
/ontra/t 4et,een parties, either in the ti$e or $ode o* per*or$an/e, or
i$poses ne, /onditions, or dispenses ,ith those e(pressed, or a%thoriFes *or
its satis*a/tion so$ethin' di**erent *ro$ that pro+ided in its ter$s, is &a,
,hi/h i$pairs the o4&i'ation o* a /ontra/t and is there*ore n%&& and +oid.
Se/tion -5 o* the Phi&ippine Minin' A/t o* 0>>. re<%irin' the appro+a& o*
the President ,ith respe/t to assi'n$ent or trans*er o* ?TAAs, i* $ade
app&i/a4&e retroa/ti+e&8 to the Co&%$4io ?TAA, ,o%&d 4e tanta$o%nt to an
i$pair$ent o* the o4&i'ations %nder said /ontra/t as it ,o%&d e**e/ti+e&8
restri/t the ri'ht o* the parties thereto to assi'n or trans*er their interests in
the said ?TAA.
B8 i$posin' a ne, /ondition apart *ro$ those a&read8 /ontained in
the a'ree$ent, 4e*ore the parties to the Co&%$4io ?TAA $a8 assi'n or
trans*er its ri'hts and interest in the said a'ree$ent, Se/tion -5 o* the
Phi&ippine Minin' A/t o* 0>>., i* $ade to app&8 to the Co&%$4io ?TAA,
,i&& e**e/ti+e&8 $odi*8 the ter$s o* the ori'ina& /ontra/t and th%s i$pair the
o4&i'ations o* the parties thereto and restri/t the e(er/ise o* their +ested
ri'hts %nder the ori'ina& a'ree$ent. S%/h $odi*i/ation to the Co&%$4io
?TAA, parti/%&ar&8 in the /onditions i$posed *or its +a&id trans*er is
e<%i+a&ent to an i$pair$ent o* said /ontra/t +io&ati+e o* the Constit%tion.
A#ERE?ORE, pre$ises /onsidered, the instant petition is here48
)ENIE). The )e/ision o* the Co%rt o* Appea&s in CA G.R. SP No. 1-020
dated 30 No+e$4er 3556 is here48 A??IRME). Costs a'ainst petitioner.
0;
Id.
0>
-3 Phi&. 153, 101 90>33:.
SO ORDERED.
MINITA V. CHICO5NA@ARIO
Asso/iate "%sti/e
AE CONCUR:
ARTEMIO V. PANGANI?AN
Chie* "%sti/e
Chairperson
CONSUELO YNARES5SANTIAGO MA. ALICIA AUSTRIA5
MARTINE@
Asso/iate "%sti/e Asso/iate "%sti/e
ROMEO :. CALLE:O, SR.
Asso/iate "%sti/e
C E R T I F I C A T I O N
P%rs%ant to Arti/&e LIII, Se/tion 06 o* the Constit%tion, it is here48
/erti*ied that the /on/&%sions in the a4o+e )e/ision ,ere rea/hed in
/ons%&tation 4e*ore the /ase ,as assi'ned to the ,riter o* the opinion o* the
Co%rt7s )i+ision.
ARTEMIO V. PANGANI?AN
Chie* "%sti/e