Francisco S. Tatad vs. The Secretary of the Department of Energy and the Secretary of the Department of Finance, G.R. No. 124360

Nature of the Case

Petition to challenge the constitutionality of Republic Act 8180 deregulating the Philippine oil industry. This case addresses a range of issues, including, prohibition against monopolies, and the extent of judicial authority.

Enforcement of the Decision and Outcomes

With respect to enforcement, the Court held that the offending provisions of the legislation so permeate its essence that the entire law had to struck down. Following the judgment, a motion for reconsideration of the decision was filed by the government but was dismissed by the Court for lack of merit. To counter the Tatad decision declaring RA 8180 unconstitutional, the Philippines passed the Republic Act No. 8479 (“RA 8479”) otherwise known as the Downstream Oil Industry Deregulation Act of 1998, on February 10, 1998. This new legislation omitted the offending sections of RA 8180. The constitutionality of this law was challenged as well but the claim was not successful at court where the judiciary demonstrated significant deference to the legislature stating that “…the challenged provision is a policy decision of Congress and that the wisdom of the provision is outside the authority of this Court to consider.”

Significance of the Case

The Tatad decision is an example of socio-economic litigation which focuses on processes associated with privatization. (Malcolm Langford ed., Social Rights Jurisprudence, 2008, p. 19) This is particularly significant given current global trends regarding privatization. The case is considered a landmark judgment with respect to the Philippines’ nascent anti-trust scene.

The Tatad decision is noteworthy for its clear recognition of the role of the judiciary in protecting the political and economic rights of the people of the Philippines as demonstrated in its observations that the Court could not “shirk its duty of striking down a law that offends the Constitution,” even if such law was an economic decision of the legislature. However subsequent related decisions have demonstrated the impact the separation of powers doctrine can have on cases dealing with economic and social policies.

(Updated August 2015)

Groups Involved in the Case

Free Legal Assistance Group (FLAG)