Cordillera Global Network vs. Paje

A separate Environmental Compliance Certificate is required for tree-cutting and earth-balling operations not contemplated in the original ECC, particularly where the operations involve naturally grown trees protected by a moratorium, and where the amended ECC issued years later fails to specifically evaluate the environmental impact of removing additional trees.

SM Investments Corporation (SMIC) secured Environmental Compliance Certificate (ECC) CAR0106-047-120 on September 13, 2001, for the SM Pines Resort Project, a mixed-use development in Baguio City including a shopping mall, hotel, and service apartments. The ECC contemplated the removal of approximately 112 trees. Construction of SM City Baguio was completed in November 2003. Nearly a decade later, SMIC proposed an Expansion Project to increase parking and commercial spaces, requiring the removal of 182 Benguet pine and Alnus trees on Luneta Hill. The DENR amended the 2001 ECC and issued a tree-cutting permit in 2011 subject to conditions, including the procurement of an ECC before operations began. Residents and environmental groups challenged these permits, alleging violations of environmental laws, Executive Order No. 23's moratorium on cutting naturally grown trees, and Baguio City's zoning ordinances.

• The Original Project: On September 13, 2001, the DENR issued ECC CAR0106-047-120 to SMIC for the SM Pines Resort Project, covering 8.5 hectares and contemplating the removal of approximately 112 trees with a replacement ratio of 25 saplings per tree cut. Construction of SM City Baguio was completed in November 2003.
• The Expansion Project: In 2010, SMIC proposed to expand the mall to increase parking and commercial spaces. On December 29, 2010, SMIC submitted an Environmental Performance Report and Management Plan (EPRMP) to the Environmental Management Bureau (EMB)-Cordillera Administrative Region (CAR) to amend the 2001 ECC.
• Permit Issuance: On September 22, 2011, the DENR granted the amendment for "additional parking levels, retail shops, and restaurants." On October 27, 2011, the DENR-CAR, with clearance from Secretary Ramon J.P. Paje, issued a permit to cut and earth-ball 182 trees (43 planted Alnus trees to be cut; 97 naturally grown Benguet pine trees and 42 saplings to be earth-balled), subject to conditions including public consultations and securing an ECC before operations. On December 19, 2011, the Baguio City Planning and Development Office granted locational clearance.
• Commencement of Operations: On April 4, 2012, Regional Executive Director Clarence Baguilat authorized the earth-balling. SMIC began operations on April 9, 2012.
• Judicial Intervention: On April 10, 2012, the RTC issued a 72-hour TEPO, later extended pendente lite. SMIC ceased operations upon receipt of the order on April 11, 2012.
• Lower Court Rulings: The RTC dismissed the cases on December 3, 2012, finding petitioners had standing but failed to exhaust administrative remedies and failed to prove irreparable environmental damage. The Court of Appeals affirmed on December 12, 2014.

• Substantial Compliance: The verification and certification against forum shopping signed by only 30 of approximately 200 petitioners constituted substantial compliance under Altres v. Empleo, as all petitioners shared a common interest in preventing the illegal removal of trees.
• Questions of Law: The petition raised pure questions of law regarding the interpretation of DENR Administrative Order No. 2003-30 and the validity of permits, not questions of fact.
• Exhaustion of Administrative Remedies: As non-parties to the ECC application proceedings who were never furnished copies of the decisions, petitioners were not required to exhaust administrative remedies; moreover, the doctrine does not apply where the controverted act is patently illegal.
• Validity of the Amended ECC and Tree-Cutting Permit: The amended ECC could not cover the cutting of 182 trees not contemplated in the original 2001 ECC issued nine years prior; the Expansion Project was effectively a new project requiring a separate ECC and full Environmental Impact Assessment. The DENR failed to distinguish between planted and naturally grown trees in violation of Executive Order No. 23's moratorium on cutting naturally grown trees.
• Zoning Violation: The locational clearance improperly allowed a regional mall in a low-density commercial zone (C-1) when such projects belong in a high-density commercial zone (C-3).

• Formal Defects: The petition should be dismissed for defective verification and certification against forum shopping, as only 30 of 202 petitioners signed, and two signatories were not parties to the original cases.
• Questions of Fact: The petition improperly raised questions of fact regarding irreparable damage and compliance with permits, which are prohibited in a Rule 45 petition for review on certiorari.
• Exhaustion of Administrative Remedies: Petitioners failed to exhaust administrative remedies by not appealing to the DENR Secretary or the Office of the President before filing suit, as required by DENR Administrative Order No. 2003-30.
• Validity of Permits: The amended ECC validly covered the Expansion Project, including tree-cutting operations; no separate ECC was required as the tree-cutting was merely part of the project implementation. The permits were issued regularly with strict compliance to procedural requirements. The project complied with zoning laws as Luneta Hill is a C-1 (Central Business District) zone permitting commercial establishments including department stores and supermarkets.

• Verification and Certification: Whether the petition should be dismissed for defective verification and certification against forum shopping where only a fraction of petitioners signed.
• Questions of Fact: Whether the petition raised improper questions of fact in violation of Rule 45.
• Exhaustion of Administrative Remedies: Whether petitioners, as non-parties to the ECC application, were required to exhaust administrative remedies before seeking judicial review.
• Validity of the Amended ECC and Tree-Cutting Permit: Whether the DENR validly amended the 2001 ECC to cover the cutting and earth-balling of 182 trees without requiring a separate ECC, notwithstanding Executive Order No. 23's moratorium on naturally grown trees.
• Zoning Compliance: Whether the locational clearance was validly issued for a regional mall in a low-density commercial zone.

• Verification and Certification: The requirement was substantially complied with. While non-signing petitioners were dropped as parties pursuant to Altres v. Empleo, the signature of 30 petitioners representing a common interest in preventing the illegal cutting of trees sufficed to prevent dismissal of the entire petition.
• Questions of Fact: The petition was reviewable under the exceptions in Medina v. Mayor Asistio, Jr., specifically where the judgment was based on a misapprehension of facts and where findings were conclusions without citation of specific evidence.
• Exhaustion of Administrative Remedies: Petitioners were not required to exhaust administrative remedies. Under Boracay Foundation, Inc. v. Aklan, the appeal provision in DENR Administrative Order No. 2003-30 applies only to parties to the ECC proceedings. As non-parties never furnished copies of the ECC decisions, the 15-day appeal period never commenced for them. Furthermore, the doctrine does not apply where the controverted act is patently illegal.
• Validity of the Amended ECC and Tree-Cutting Permit: The amended ECC did not validly cover the tree-cutting operations. The original 2001 ECC contemplated only 112 trees for the entire SM Pines Resort Project. The 2011 amendment, issued nearly a decade later, covered "additional parking levels, retail shops, and restaurants" but did not account for the removal of 182 additional trees. The October 17, 2011 Memorandum by Secretary Paje itself required a separate ECC before tree-cutting. Moreover, the DENR failed to determine whether the trees were naturally grown (covered by Executive Order No. 23's moratorium) or planted, rendering the permit patently illegal.
• Zoning Compliance: The locational clearance was validly issued. The Baguio City Zoning Ordinance classifies Luneta Hill as C-1 (Low Density Commercial Zone/Central Business District), which permits commercial condominiums, hotels, and department stores. Challenges to the zoning clearance should have been brought before the Housing and Land Use Regulatory Board, not the courts.

• Substantial Compliance Rule for Verification and Certification Against Forum Shopping — Non-compliance with verification requirements or defects therein do not necessarily render a pleading fatally defective; courts may order submission or correction. For certification against forum shopping, non-signing petitioners are generally dropped as parties, but when all petitioners share a common interest and invoke a common cause of action, the signature of one or some substantially complies with the rule.
• Exceptions to the Rule on Exhaustion of Administrative Remedies — The rule does not apply where: (1) the question is purely legal; (2) the controverted act is patently illegal or performed without jurisdiction; (3) the respondent is a department secretary whose acts bear the President's implied approval; (4) urgent judicial intervention is necessary; or (5) there is no plain, speedy, and adequate administrative remedy. Non-parties to administrative proceedings who were never furnished copies of administrative decisions are not bound to appeal through administrative channels.
• Separate Environmental Compliance Certificate for Tree-Cutting — Tree-cutting and earth-balling operations not contemplated in the original ECC, particularly those involving naturally grown trees protected by moratorium, require a separate ECC to ensure specific evaluation of environmental impact. An amended ECC issued years after the original cannot serve as blanket authorization for new environmental disturbances without proper assessment.

• "Shortcuts in the processes prescribed by law to protect the endowments of nature should never be countenanced."
• "The depth, quality, and complexity of our forests' biodiversity is a marker of humanity's enlightenment. Every tree saved from being sacrificed in the name of profits matters."
• "Commerce is important for human survival, but so is ecology."
• "We belong to the land, its waters, and its forests. Protection of the environment on behalf of our present and future communities is progress."

• Altres v. Empleo, 594 Phil. 246 (2008) — Established guidelines for substantial compliance with verification and certification against forum shopping requirements; followed in holding that non-signing petitioners sharing a common interest may be dropped without dismissing the entire petition.
• Boracay Foundation, Inc. v. Aklan, 689 Phil. 218 (2012) — Clarified that the appeal provision under DENR Administrative Order No. 2003-30 applies only to parties to the ECC proceedings; followed to exempt non-parties from the exhaustion requirement.
• Medina v. Mayor Asistio, Jr., 269 Phil. 225 (1990) — Enumerated exceptions to the rule that only questions of law may be raised in Rule 45 petitions; applied to justify review of factual findings based on misapprehension and lack of evidence citation.
• Pagara v. Court of Appeals, 325 Phil. 66 (1996) — Listed exceptions to the doctrine of exhaustion of administrative remedies; cited as basis for bypassing administrative appeals where acts are patently illegal.
• Iloilo City Zoning Board of Adjustment and Appeals v. Gegato-Abecia Funeral Homes, Inc., 462 Phil. 803 (2003) — Affirmed the Housing and Land Use Regulatory Board's retained appellate jurisdiction over local zoning decisions despite devolution under Executive Order No. 72.

• Article II, Section 16, 1987 Constitution — Mandates the State to protect and advance the right of the people to a balanced and healthful ecology; cited as constitutional basis for strict environmental protection.
• Rule 45, Rules of Civil Procedure — Governs petitions for review on certiorari to the Supreme Court; provisions on verification, certification against forum shopping, and questions of law applied.
• DENR Administrative Order No. 2003-30 — Procedural manual for DENR DAO 2003-30 implementing the Philippine Environmental Impact Statement System; Section 6 on appeals interpreted to apply only to parties to ECC proceedings.
• Executive Order No. 23, Series of 2011 — Declared a moratorium on the cutting and harvesting of timber in natural and residual forests; applied to invalidate the tree-cutting permit for failure to distinguish naturally grown from planted trees.
• Executive Order No. 72, Series of 1993 — Devolved authority to issue locational clearances to cities and municipalities but retained the Housing and Land Use Regulatory Board's appellate jurisdiction.
• Baguio City Ordinance No. 51, Series of 2001 — Comprehensive Zoning Ordinance defining C-1 (Low Density Commercial Zone) to include the Central Business District and permitting department stores and commercial condominiums.

Bersamin, C.J., Carpio, Peralta, Caguioa, A. Reyes, Jr., Gesmundo, J. Reyes, Jr., Hernando, Carandang, and Lazaro-Javier, JJ.

N/A (Del Castillo, J., on wellness leave; Perlas-Bernabe, J., on leave; Jardeleza, J., no part and on wellness leave)