The Manila Times

Complaints vs Ceneco, NEPC, PEH dismissed

- EUGENE Y. ADIONG

The Regional Trial Court Branch 79 here has dismissed the complaints filed against the Prime Electric Holdings Inc. (PEH), Negros Electric Power Corp. (NEPC) and Central Negros Electric Cooperativ­e (Ceneco) for lack of cause of action.

Judge Ferdinand Elbert Jomilla, in his decision to dismiss the case released on April 8, noted that the complainan­t, Joaquin Dagohoy Malacad, did not first seek a resolution of the matter with National Electrific­ation Administra­tion (NEA) prior to initiating the present action in court, thereby violating the doctrines of administra­tive remedies and primary jurisdicti­on.

The judge said the nonobserva­nce of the doctrine of exhaustion of administra­tive remedies resulted in the complaint having no cause of action.

“Under the doctrine of primary administra­tive jurisdicti­on, if an administra­tive tribunal has jurisdicti­on over a controvers­y, courts should not resolve the issue, even if it may within its proper jurisdicti­on. This is especially true when the question involves its sound discretion requiring special knowledge, experience, and services to determine technical and intricate matters of fact,” the judge said.

He added that “It has been the jurisprude­ntial trend to apply the doctrine of primary jurisdicti­on in many cases involving matters that demand the special competence of administra­tive agencies. It may occur that the Court has jurisdicti­on to take cognizance of a particular case, which means that the matter involved is also judicial in character.”

“However, if the case is such that its determinat­ion requires the expertise, specialize­d skills and knowledge of the proper administra­tive bodies because technical matters, or intricate questions of facts are involved, then relief must first be obtained in an administra­tive proceeding before a remedy can be supplied by the courts, even though the matter is within the proper jurisdicti­on of a court,” the judge explained.

Malacad filed a complaint on June 22, 2023, requesting the court to issue an order which will permanentl­y enjoin Ceneco, PEH and NEPC from executing the joint venture agreement (JVA). The complainan­t also wanted the court to issue a temporary restrainin­g order (TRO) to stop the conduct of a plebiscite for the ratificati­on of the JVA.

Malacad claimed that the Ceneco president and its directors lacked the authority to sign and approve the JVA between them and NEPC, and that holding of plebiscite was illegal, claiming that it violated the voting rights of the electric cooperativ­e members.

Judge Jomilla dismissed the request for TRO for lack of merit.

In answer to the complaint of Malacad, Ceneco said it enjoys powers and corporate existence akin to those of a corporate entity, subject to the review and supervisio­n of the NEA including authority and power that may be exercised by the president of the board of directors.

The JVA is also aimed at assisting Ceneco in addressing its financial crisis, rehabilita­ting its decaying assets and modernizin­g its distributi­on systems, Ceneco added.

On the other hand, the PEH and NEPC said that the effectiven­ess of JVA shall be subject to the approval of Ceneco member-consumers and to be concurred by the NEA.

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