CONSTITUTIONAL LAW 1 SUN | 1-5:00PM

ATTY. CLARICE JOY SAN JOSE

TOPIC: The Exercise of Government Power

NPC Drivers and Mechanical Association v. NaPoCor
503 SCRA 138 / G.R. No. 156208
September 26, 2006
PONENTE: Chico-Nazario, J. DIGESTED BY:
FACTS:
- The Philippine Government embarked on a program to reform the electric
power industry through the enactment of the "Electric Power Industry
Reform Act of 2001" (EPIRA Law), which was approved and signed into law
by President Gloria Macapagal-Arroyo.
- Part of this program involved the privatization of the National Power
Corporation’s (NPC) assets and restructuring of its personnel, which
affected its employees’ tenure.
- The National Power Board (NPB) released Resolution Nos. 2002-124 and
2002-125, mandating the termination of NPC employees effective January
31, 2003 and they shall be entitled to separation benefits.
- The NPC Drivers and Mechanics Association (NPC DAMA) and other NPC
employees, through their representative, contested these resolutions,
arguing that the termination was implemented without proper board
approval, as the resolutions were passed without a majority vote (i.e., no
quorum) from the NPB’s members and signed by unauthorized
representatives. In other words, there was undue delegation of power
ISSUE/S:
- Whether or not the NPB Resolutions were properly enacted.
RULING:
- The Court GRANTED the petition for Injunction.
- National Power Board Resolutions No. 2002-124 and No. 2002-125 are
hereby declared VOID and WITHOUT LEGAL EFFECT.
- Respondents are hereby ENJOINED from implementing said NPB
Resolutions No. 2002-124 and No. 2002-125.
RATIO DECIDENDI:
- The department secretaries who were members of the NPB cannot delegate
their duties and power to vote and approve board resolutions.
- The exercise of discretion and judgment in running the affairs of the NPC is
vested upon these department secretaries, and they cannot delegate such
responsibilities to their representatives.
- Since there were only three valid votes cast out of the nine board members,
the Resolutions lacked the necessary number of votes for their adoption.
Therefore, the Resolutions were declared void and without legal effect.