CA rules local court lacked jurisdiction in Puerto Princesa power outage case

MANILA, Philippines – The Court of Appeals (CA) has rejected Puerto Princesa city government’s bid to reverse the dismissal of its lawsuit against Palawan Electric Cooperative (Paleco) over frequent power outages.

In a 12-page ruling, the CA’s 14th Division, led by Associate Justice Emilio Rodolfo Legaspi III, said the petition lacked merit and should be dismissed.

The case traces back to a 2019 complaint filed by Puerto Princesa Mayor Lucilo Bayron on behalf of the local government against Paleco and its officials, including chairman Jeffrey Tan-Endriga, board members Maylene Ballares, Moises Arzaga, Marrieta Seratubias, Julieta Magbanua, Rodolfo Garceron, Rodantes Onda Sr., Nicolas Contreras, lawyer Raymund Acosta, and acting general manager Nelson Lalas.

The city government said the respondents failed to provide adequate, regular and reliable electricity to the residents of Puerto Princesa City. It sought P1 million in damages, citing frequent power interruptions that it said disrupted government services, harmed the tourism industry, and damaged household appliances.

But the Regional Trial Court (RTC) dismissed the petition on August 28, 2020, citing lack of jurisdiction. The court also denied city hall’s motion for reconsideration in an order on September 5, 2022.

“The assailed Orders of the RTC were not shown to be patently erroneous or done in a capricious or whimsical exercise of judgment. Rather, the same were issued in obedience and consistent with pertinent rules and existing jurisprudence, thus, the court a quo cannot be said to have gravely abused its discretion,” read part of the CA ruling.  

The CA agreed that the regional court lacked authority over the petition because the National Electrification Administration (NEA) oversees and regulates electric cooperatives based on the NEA Reform Act.

It noted that city hall’s claim focused on alleged negligence and failure by Paleco to provide a stable and adequate electricity supply, which is considered an administrative matter. 

The court said the complaint should have been filed with the NEA, which sets and enforces performance standards for electric cooperatives and their officials.

The CA added that resolving these issues requires the NEA’s technical expertise, making the local court’s dismissal appropriate under the doctrine of primary jurisdiction. – Rappler.com