Janet Harayo- CASE DIGEST

PERNITO ARRASTRE SERVICES,INC.

FACTS:

Waterfront Services was created by the government to study and resolved the problems of arrastre and stevedoring  operations in various ports in the Philippines. Problems like the proliferation of the oppressive "cabo system" and the increase in the incidence of violence and thefts in the ports. There was also recognized a need to streamline port operations, ensure the smooth flow of water borne commerce in international and domestic trade, and promote regional development through improved port facilities.

ISSUE:

Whether the taking over of the PPA over the arrastre and stevedoring is unconstitutional.

RULING:

The court ruled that the taking-over is not violative and just in a sense that the PPA in the exercise of its police power to promote the public interest and welfare both if the stevedoring industry and the workers therein justifies such take over, therefore the case at bar is dismissed, and the temporary restraining order issued to stop the PPA from collecting 10% charge on the monthly gross earnings of the operators of arrastre and stevedoring services is dissolved.

LA BUGAL-B’LAAN TRIBAL ASSOCIATION, INC.

FACTS:

On March 3, 1995, President Ramos signed into law R.A. No. 7942.  Section 15 thereof declares that the Act “shall govern the exploration, development, utilization, and processing of all mineral resources.”  Such declaration notwithstanding, R.A. No. 7942 does not actually cover all the modes through which the State may undertake the exploration, development, and utilization of natural resources.

The State, being the owner of the natural resources, is accorded the primary power and responsibility in the exploration, development and utilization thereof.  As such, it may undertake these activities through four modes:

The State may directly undertake such activities.

(2) The State may enter into co-production, joint venture or production-sharing agreements with Filipino citizens or qualified corporations.

(3) Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens.

(4) For the large-scale exploration, development and utilization of minerals, petroleum and other mineral oils, the President may enter into agreements with foreign-owned corporations involving technical or financial assistance.

ISSUE:

The Constitutionality of the Republic Act No. 7942 known as Philippine Mining Act 1995.

RULING:

The court granted the petition, and that R.A. No. 7942 is unconstitutional in violation to section 2, Article Xll of the Constitution (National Economy and Patrimony), wherein said provision states that all other natural resources shall not be alienated, it is preserved for the Filipino people.