Eastern Shipping Lines Inc.

V CA
G.R No. 116356; June 29,1998

Facts:

The case involves a dispute over the constitutionality of the Executive

Order 1088 and the payment of pilotage fees. Eastern Shipping argues that
EO 1088 is unconstitutional because its interpretation and application are
left to private person. They insist that the paying of pilotage fees should be
based on the circulars issued by the PPA, the administrative body vested
with the power to regulate and prescribe pilotage fees.

Issue:

Whether or not EO 1088 is unconstitutional

Ruling:

Yes, EO 1088 is constitutional. Supreme Court held that PPA has no

discretion whether to implement the law or not because its duty is to
enforce the law. If there is a conflict between PPA circular and EO 1088, the
EO should prevail. Supreme Court cited that conclusive effect of
administrative construction is not absolute. The Judicial department can
disturb or set aside administrative construction if there is an error of law, a
grave abuse of power or lack of jurisdiction or grave abuse of discretion
clearly conflicting with either the leLer or spirit of the law. Therefore,
Petitioner has no legal basis to refuse payment of pilotage fees to the
private respondent, as computed according to the rates of EO 1088.