United Claimants Association Vs NEA

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United Claimants association vs NEA shall in Consultation with the Electric

power industry and end users


- Under Sec. 3(b)(ii), Rule 33 of the Rules
Facts and Regulations, all the NEA employees
and officers are considered terminated
- Petitioners are former employees of and the 965 plantilla positions of NEA
NEA who were terminated from their vacant
employment with the implementation - Under Sec. 3(b)(ii), Rule 33 of the Rules
of the assailed resolutions and Regulations, all the NEA employees
- Respondent NEA is a government- and officers are considered terminated
owned and/or controlled corporation and the 965 plantilla positions of NEA
created in accordance with Presidential vacant
Decree No. (PD) 269 issued on August 6, - Meanwhile, on August 28, 2002, former
1973. Under PD 269, Section 5(a)(5), the President Gloria Macapagal- Arroyo
NEA Board is empowered to organize or issued Executive Order No. 119
reorganize NEA’s staffing structure directing the NEA Board to submit a
section 5 - All of the powers of the reorganization plan. Thus, the NEA
corporation shall be vested in and Board issued the assailed resolution
exercised by a Board of Administrators, - On September 17, 2003, the
which shall be composed of a Chairman Department of Budget and
and four (4) members, one of whom Management approved the NEA
shall be the Administrator as ex-officio Termination Pay Plan
member. The Chairman and the three - the NEA implemented an early
other members shall be appointed by retirement program denominated as
the President of the Philippines to serve the "Early Leavers Program," giving
for a term of six years incentives to those who availed of it
- To establish policies and guidelines for and left NEA before the effectivity of
employment on the basis of merit, the reorganization plan. The other
technical competence and moral employees of NEA were terminated
character, and, upon the effective December 31, 2003.
recommendation of the Administrator
to organize or reorganize NEA’s staffing The issues
structure, to fix the salaries of
On the other hand, respondents argue in their
personnel and to define their powers
Comment dated August 20, 2009 that:
and duties
- Republic Act No. (RA) 9136, otherwise Whether or not The Court has no jurisdiction
known as the Electric Power Industry over the petition;?
Reform Act of 2001 (EPIRA Law), was
NEA : Argues that petitioners violated the
enacted, taking effect on June 26, 2001.
principle of Hierarchy of Courts that it should be
The law imposed upon NEA additional
filed to the RTC first rather than the SC
mandates in relation to the promotion
of the role of rural electric cooperatives SC Ruling :
to achieve national electrification
Sec. 77 of RA 9136 – IRR That the DOE
Yes, they violated the principle of hierarchy of This Court’s original jurisdiction to issue writs of
courts, but it fall under the compelling reasons certiorari is not exclusive. It is shared by this
to set aside for special and important reason Court with Regional Trial Courts and with the
Court of Appeals. This concurrence of
In the case of National Power Corporation
jurisdiction is not, however, to be taken as
Drivers and Mechanics Association (NPC-DAMA)
according to parties seeking any of the writs an
v. National Power Corporation (NPC) where in
absolute, unrestrained freedom of choice of the
they file a petition for injuction directly to the
court to which application therefor will be
SC . Despite such apparent disregard of the
directed. There is after all a hierarchy of courts.
principle of hierarchy of courts, the petition was
That hierarchy is determinative of the venue of
given due course.
appeals, and also serves as a general
In the case at bar Evidently, the instant petition determinant of the appropriate forum for
should have been filed with the RTC. However, petitions for the extraordinary writs. A
as an exception to this general rule, the becoming regard for that judicial hierarchy most
principle of hierarchy of courts may be set aside certainly indicates that petitions for the
for special and important reasons. Such reason issuance of extraordinary writs against first level
exists in the instant case involving as it does the ("inferior") courts should be filed with the
employment of the entire plantilla of NEA, more Regional Trial Court, and those against the
than 700 employees all told, who were latter, with the Court of Appeals. A direct
effectively dismissed from employment in one invocation of the Supreme Court’s original
swift stroke. This to the mind of the Court jurisdiction to issue these writs should be
entails its attention. allowed only when there are special and
important reasons therefor, clearly and
specifically set out in the petition. This is [an]
General RULE : Principle of Hierarchy of Court established policy. It is a policy necessary to
should be followed prevent inordinate demands upon the Court’s
time and attention which are better devoted to
Exeption : those matters within its exclusive jurisdiction,
the principle of hierarchy of courts may be set and to prevent further over-crowding of the
aside for special and important reasons Court’s docket.
(Compelling Reason )

Dispositive part

WHEREFORE, the instant petition is hereby


DISMISSED. Resolution Nos. 46 and 59, dated
July 10, 2003 and September 3, 2003,
respectively, issued by the NEA Board of
Directors are hereby UPHELD.

Additional Info :

Hinog v. Melicor, citing People v. Cuaresma,

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