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La Bugal-B'Laan vs. Ramos, G.R. No. 127882, Dec. 1, 2004
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LA BUGAL B’LAAN TRIBAL
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David vs Senate Electoral
29 Tan vs Director of
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La Bugal-B’laan Tribal Association, Inc. vs. Ramos Ponente: Panganiban Parties Involved:
Date: 1 December 2004
La Bugal-B’laan Tribal Association, Inc., represented by its Chairman F’long ig!el " #!mayong$ et" al" %petitioner
Nature: Special Civil Action for Prohibition and Mandamus
ictor Ramos, D&'( Sec"$ )oracio (amos* +,-D&'( Dir"$ (!ben .o CP* nc" %respondent
!acts and Bac"ground o# t$e %ase unconstitutional5 &a' certain (rovisions o# RA No. )*+ %ining #a6* &b' its mplementing (!les and (eg!lation 24 3an!ary 2005 the Co!rt en banc declared unconstitutional5 &c' the !inancial and Tec$nical Assistance Agreement &!TAA' dated arch 70* 1889* e/ec!ted by the government 6ith estern ining Corporation %Philippin mainly on the finding that FTAAs are service contracts prohibited by the 1987 Constitution (espondents filed separate otions for (econsideration Sign up to vote on this title
Useful Not useful Legal Issues A" :' case has been rendered moot moot by the sale of C C shares in CP to Sagittari!s ines* nes* nc" %a Filipino corporation corporation and by the s!bse;!ent s!bse;!ent transfer and reg from CP to Sagittari!s" ," :' it is still proper to resolve constit!tionality constit!tionality of the assailed provisions* provisions* ass!ming ass!ming that the case case has been rendered rendered moot"
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La Bugal-B'Laan vs. Ramos, G.R. No. 127882, Dec. 1, 2004
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ratify the void contract" B. 4- hat is at iss!e is not only the validity of the CPF.AA* b!t also t$e constitutionalit7 o# RA )*+ and its Im(lementing Rules and Regulations - the acts of private respondent cannot operate to c!re the la6 of its alleged !nconstit!tionality or to divest this Co!rt of its @!risdiction to decide" 5- the Constit!tion imposes !pon the S!preme Co!rt the d!ty to declare invalid any la6 that offends the Constit!tion"
David vs Senate Electoral
29 Tan vs Director of
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it had been issued to an allegedly non,*uali$ied $oreign, o"ned corporation# B. .he co!rt concedes that there e/ists the distinct possibility B. .he co!rts 6ill decide a ;!estion>ot that one or more of the f!t!re F.AAs 6ill be the s!b@ect of yet academic>if it is Ecapable of repetition y another s!it gro!nded on constit!tional iss!es" =as of 3!ne 2002* some 47 F.AAs had been filed? .he Co!rt m!st recognie the e/ceptional character of the sit!ation and the paramo!nt p!blic interest involved* as 6ell as t$e necessit7 #or a ruling to (ut an end to t$e uncertainties (laguing t$e mining industr7 and t$e a##ected communities as a result o# doubts cast u(on t$e constitutionalit7 and validit7 o# t$e 1ining Act, t$e sub8ect !TAA and #uture !TAAs, and t$e need to avert a up to vote on this title Sign multi(licit7 o# suits. .he real iss!e in this case is 6hether paragraph 4 Useful of Section 2 Not useful of Article < of the Constit!tion is contravened by (A 842 and DA 8-40" B7 t$e mere enactment o# t$e 9uestioned la6 or t$e a((roval o# t$e c$allenged action, t$e dis(ute
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La Bugal-B'Laan vs. Ramos, G.R. No. 127882, Dec. 1, 2004
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LA BUGAL B’LAAN TRIBAL
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David vs Senate Electoral
29 Tan vs Director of
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#ull7 #oreign-o6ned cor(orations, 6it$ t$e result t$at t$e =tate is allegedl7 reduced to a (assive regulator de(endent on submitted (lans and re(orts, 6it$ 6ea" revie6 and audit (o6ers. .he la6* the implementing reg!lations* and the CP F.AA cede Ebene#icial o6ners$i( of the mineral reso!rces to the foreign contractor"
!TAA contractor is not #ree to do 6$atever it (leases and get a6a7 6it$ it> on t$e contrar7, it 6ill $ave to #ollo6 t$e government line i# it 6ants to sta7 in t$e enter(rise. nel!ctably then* RA )*+ and DA *-+/ vest in t$e government more t$an a su##icient degree o# control and su(ervision over t$e conduct o# mining o(erations.
Section 7 of (A 842>6hich allo6s a foreign contractor to apply for and hold an e/ploration permit>is !nconstit!tional"
.he e/ploration permit serves a practical and legitimate p!rpose in that it protects the interests and preserves the rights of the e/ploration permit grantee %the 6o!ld-be contractor>foreign or local>d!ring the period of time that it is spending heavily on e/ploration 6orBs* 6itho!t yet being able to earn reven!es to reco!p any of its investments and Sign up to vote on this title e/pendit!res"
Useful
T$e evaluation and anal7sis o# t$e !TAA (rovisions su##icientl7 overturn (etitioners’ litan7 o# ob8ections to and criticisms o# t$e =tate’s alleged lac" o# control. .he
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La Bugal-B'Laan vs. Ramos, G.R. No. 127882, Dec. 1, 2004
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LA BUGAL B’LAAN TRIBAL
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David vs Senate Electoral
29 Tan vs Director of
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of the government
udgment A" ,eca!se of the validity of sale and the transfer* and that the F.AA is not void per se* the case has become moot" )o6ever* ," there is a need to resolve the !nconstit!tionality of the assailed provisions" C" .he phrase Eagreements involving either technical and financial assistance* as !sed interchangeably 6ith the term Eservice contracts by the drafters of the Cons interpreted by the co!rt* is not e/cl!sionary and limiting" D" .he assailed provisions are not !nconstit!tional"
Im(ortant Notes 'orth Cotab .he F.AA is for the e/ploration* development and commercial e/ploitation of mineral deposits in So!thSign Cotabato* H!darat* Davao del S!r and up S!ltan to vote on this title of 88*G7 ha" C is 6holly o6ned s!bsidiary of estern ining Corporation )oldings #imited* a p!blicly listed ma@or A!stralian mining and e/ploration compan A service contract has been defined as a contract!al agreement for engaging in the e/ploitation and development mineral* energy* land and other n Usefulof petrole!m* Not useful 6hereby a government or an agency thereof* or a private person granted a right or privilege by said government* a!thories the other party>the service contract participate in the e/ercise of s!ch right or the en@oyment of the privilege* by providing financial or technical reso!rces* !ndertaBing the e/ploitation or prod!ction o directly managing the prod!ctive enterprise* operations of the e/ploration and e/ploitation of the reso!rces* or the disposition or marBeting of said reso!rces"
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