Dagan v. Phil. Racing Commission (Philracom) G.R. No. 175220 February 12, 2009 Tinga FACTS: Aug. 11, 2004- Philraco i!!ue" a "irec#i$e "irec#ing #he %anila &oc'ey (lub, )nc. *%&()+ an" Philiine Racing (lub, )nc. *PR()+ #o ie"ia#ely coe u i#h #heir re!ec#i$e (lub! /ou!e Rule #o a""re!! uine )nec#iou! Aneia *)A+ roble an" #o ri" #heir acili#ie! o hor!e! inec#e" i#h )A. 3ai" "irec#i$e "irec#i$e a! i!!ue" ur!uan# ur!uan# #o A"ini!#ra#i$e A"ini!#ra#i$e r"er No. 5 "a#e" 2 %arch 1994 by #he 6ear#en# o Agricul#ure "eclaring i# unlaul or any er!on, r or corora#ion #o !hi, "ri$e, or #ran!or# hor!e! ro any locali#y or lace e8ce# hen accoanie" by a cer#ica#e i!!ue" by #he au#hori#y o #he 6irec#or o #he ureau o Anial )n"u!#ry *A)+. )n coliance i#h #he "irec#i$e, %&() an" PR() or"ere" #he oner! o racehor!e! !#able in #heir e!#abli!hen#! #o !ubi# #he hor!e! #o bloo" !aling an" a"ini!#ra#ion o #he Coggins Test #o "e#e "e#er rin ine e he# he#he herr #hey #hey are are a:ic a:ic#e #e" " i#h i#h #he #he )A )A $iru $iru!. !. 3ub! 3ub!e eue uen#l n#ly, y, on 17 3e#eber 2004, Philraco i!!ue" coie! o #he gui"eline! or #he oni#oring an" era"ica#ion o )A.*2n" "irec#i$e+ Pe#i#ioner! reu!e" #o coly i#h #he "irec#i$e!. 6e!i#e re!i!#ance ro e#i#ioner!, #he bloo" #e!#ing rocee"e". The hor!e!, ho!e oner! reu!e" reu!e" #o coly ere banne" ro #he race!, ere reo$e" ro #he ac#ual "ay o race, rohibi#e" ro reneing #heir licen!e! or e$ic#e" ro #heir !#able!. Racehor!e oner! colaine" beore #he ;ce o #he Pre!i"en# *P+ hich in #urn i!!ue" a "irec#i$e in!#ruc#ing Philraco #o in$e!#iga#e #he a##er. Pe#i#ioner! le" or a TR i#h #he RT(- gran#e". RT( hoe$er "i!i!!e" #heir e#i#ion or in an" 2. )# i! a $ali" e8erci!e o olice oer. oer. ?on aeal, (A a;re" a ;re" #he RT( RT( "eci!ion in #o#o. •
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3( le$el= Petitioner's arguments = 1. They ain#ain #ha# #he a!!aile" gui"eline! "o no# coly i#h "ue roce!! reuireen#!> 2. No in$e!#iga#ion or a# lea!# a !uary rocee"ing a! con"uc#e" a@or"ing e#i#ioner! an oor#uni#y #o be hear". . a!!aile" gui"eline! are ultra vires in #ha# #he !anc#ion! io!e" or reu!ing #o !ubi# #o e"ical e8aina#ion are !uary e$ic#ion ro #he !#able! or arbi#ra arbi#rary ry banning banning o ar#ici ar#icia#i a#ion on in #he race!, race!, no#i#h! no#i#h!#an" #an"ing ing #he enal#i enal#ie! e! re!c re!crib ribe" e" in #he con#rac# o lea!e. •
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Philraco al!o
That That is %h %h $eti $etiti tion oner ers s rais raise e &or &or the the *rst *rst time time the the issu issue e that that Phil Philra raco com m ha! ha! unconstitutionall !elegate! !elegate! its rule"ma#ing rule"ma#ing $o%er to PRC an! an! MJC in issuing the !irective &or them to come u$ %ith clu rules. They !ai" #ha# oer gran#e" #o PR() an" %&() %&() un"er un"er #heir #heir re!e re!ec#i c#i$e $e ranch ranchi!e i!e! ! i! lii#e" lii#e" #o= *1+ #he con!#r con!#ruc# uc#ion, ion, oera# oera#ion ion an" ain#enance o race#rac'!> *2+ #he e!#abli!hen# o branche! or boo'ing uro!e!> an" *+ #he con"uc# o hor!e race!.
SS+,: -/ there is a vali! !elegation o& legislative $o%er to Philracom R+0/1: 2,S The $ali"i#y o an a"ini!#ra#i$e i!!uance, !uch a! #he a!!aile" gui"eline!, hinge! on coliance i#h #he olloing reui!i#e!= 1. 2. . 4.
)#! roulga#ion u!# be au#horiBe" by #he legi!la#ure> )# u!# be roulga#e" in accor"ance i#h #he re!cribe" roce"ure> )# u!# be i#hin #he !coe o #he au#hori#y gi$en by #he legi!la#ure> )# u!# be rea!onable.C rea!onable.C
All #he re!cribe" reui!i#e! are e# a! regar"! #he ue!#ione" i!!uance!. Philraco! au#hori#y i! "ran ro P.6. P.6. No. 420. The "elega#ion a"e in #he re!i"en#ial "ecree i! $ali". Philraco "i" no# e8cee" i#! au#hori#y. au#hori#y. An" #he i!!uance! are air an" rea!onable.
FRST R,3+ST,: The The rule rule i! #ha# #ha# ha# ha# ha! been been "ele "elega# ga#e" e" canno canno## be "ele "elega ga#e #e", ", or a! e8r e8re! e!!e !e" " in #he #he Da#i Da#in n a8i= potestas a8i= potestas delegate non delegare potest . Thi! rule i! ba!e" uon #he e#hical rincile rincile #ha# !uch
"elega#e" oer con!#i#u#e! no# only a righ# bu# a "u#y #o be erore" by #he "elega#e by #he in!#ruen#ali#y o hi! on an" *b+ 8e! a !#an"ar"#he lii#! o hich are !u;cien#ly "e#erina#e an" "e#erinable#o hich #he "elega#e u!# conor in #he erorance o hi! unc#ion!. P.D. /o. ;8 hur!les the tests o& com$leteness an! stan!ar!s suuris!iction an! control over ever as$ect o& the con!uct o& horse racin g, inclu"ing #he raing an" !che"uling o race!, #he con!#ruc#ion an" !ae#y o race #rac'!, an" the securit o& racing.
Su g. To $rohiit the use o& im$ro$er !evices? !rugs? stimulants or other means to enhance or !iminish the s$ee! o& horse or materiall harm their con!ition@ /o !elegation o& rule"ma#ing $o%er to MJC an! PRC The Philraco "irec#i$e i! erely in!#ruc#i$e in charac#er. (oliance i#h #he Philraco! "irec#i$e i! ar# o #he an"a#e o PR() an" %&() un"er 3ec#ion! 1CE o R.A. No. 795C4E an" 3ec#ion! 1C5E an" 2CHE o 407.CA! correc#ly roerre" by %&(), its !ut is not !erive! &rom the !elegate! authorit o& Philracom ut arises &rom the &ranchise grante! to them Congress S,C/D R,3+ST,: -hile it is conce!e! that the gui!elines %ere issue! a month a&ter Philracoms !irective? this circumstance !oes not ren!er the !irective nor the gui!elines voi!. Philraco ha! e$ery righ# #o i!!ue "irec#i$e! #o %&() an" PR() i#h re!ec# #o #he con"uc# o hor!e racing, i#h or i#hou# ileen#ing gui"eline!. 0ac# o& $ulication: A! a rule, #he issuance o& rules an! regulations in the e5ercise o& an a!ministrative agenc o& its uasi"legislative $o%er !oes not reuire notice an! hearing. C40E )n Abella, Jr. v. Civil Service Commission,C41E #hi! (our# ha" #he occa!ion #o rule #ha# $rior notice an! hearing are not essential to the vali!it o& rules or regulations issue! in the e5ercise o& uasi"legislative $o%ers since there is no !etermination o& $ast events or &acts that have to e estalishe! or ascertaine!.6 Thir! reuisite: The a"ini!#ra#i$e bo"y ay no# a'e rule! an" regula#ion! hich are incon!i!#en# i#h #he ro$i!ion! o #he (on!#i#u#ion or a !#a#u#e, ar#icularly #he !#a#u#e i# i! a"ini!#ering or hich crea#e" i#, or hich are in "eroga#ion o, or "eea#, #he uro!e o a !#a#u#e.The a!!aile" gui"eline! re!cribe #he roce"ure or oni#oring an" era"ica#ing )A. The!e gui"eline! are in accor" i#h Philraco! an"a#e un"er #he la #o regula#e #he con"uc# o hor!e racing in #he coun#ry. Fourth reuisite: The a!!aile" gui"eline! "o no# aear #o be unrea!onable or "i!criina#ory. )n ac#, all horses stale! at the MJC an! PRCs $remises un!er%ent the same $roce!ure. The gui"eline! ileen#e" ere un"oub#e"ly rea!onable a! #hey bear a rea!onable rela#ion #o #he uro!e !ough# #o be accoli!he", i.e., #he cole#e ri""ance o hor!e! inec#e" i#h )A. /or!e-oner! ere al!o inore" beorehan". The lea!e con#rac# e8ecu#e" be#een e#i#ioner an" %&( con#ain! a ro$i!o re!er$ing #he righ# o #he le!!or, %&() in #hi! ca!e, #he righ# #o "e#erine he#her a ar#icular hor!e i! a ualie" hor!e. )n a""i#ion, Philraco! rule! an" regula#ion! on hor!e racing ro$i"e #ha# hor!e! u!# be ree ro any con#agiou! "i!ea!e or illne!! in or"er #o be eligible a! race en#rie!.
