Gascon v. Arroyo

Gascon v. Arroyo

G.R. No. 78389 October 16, 1989

Padilla, J.

Facts:

                Petitioners seek to annul and set aside the “Agreement to Arbitrate” entered into by and between the Republic of the Philippines, represented by Executive Secretary Joker T. Arroyo, and ABS-CBN Broadcasting Corporation, represented by its President, Eugenio Lopez, Jr., dated 6 January 1987, to settle the claims of ABS-CBN for the return of radio and television stations (TV Station Channel 4), and to enjoin the Arbitration Committee created under the aforesaid agreement from adjudicating the claims of ABS-CBN.

Issue:

                whether the Executive Secretary had the power and authority to enter into the “Agreement to Arbitrate” with the ABS- CBN Broadcasting Corporation

Held:

                Yes. Under the Provisional Constitution of the Republic of the Philippines also known as the Freedom Constitution), which was in force and effect when the “Agreement to Arbitrate” was signed by the parties thereto on 6 January 1987, the President exercised both the legislative and executive powers of the Government. As Chief Executive, the President was (and even now) “assisted by a Cabinet” composed of Ministers (now Secretaries), who were appointed by and accountable to the President. In other words, the Members of the cabinet, as heads of the various departments, are the assistants and agents of the Chief Executive, and, except in cases where the Chief Executive is required by the Constitution or the law to act in person, or where the exigencies of the situation demand that he act personally, the multifarious executive and administrative functions of the Chief Executive are performed by and through the executive departments, and the acts of the heads of such departments performed in the regular course of business, are, unless disapproved or reprobated by the Chief Executive, presumptively the acts of the Chief Executive.

Respondent Executive Secretary had, therefore, the power and authority to enter into the “Agreement to Arbitrate” with the ABS- CBN Broadcasting Corporation, as he acted for and in behalf of the President when he signed it; hence, the aforesaid agreement is valid and binding upon the Republic of the Philippines, as a party thereto.