Complaints vs Ceneco, NEPC, PEH dismissed
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.