G.R. No. L-48478 September 30, 1982
AGUSMIN PROMOTIONAL ENTERPRISES, INC., petitioner, vs. HON. COURT OF APPEALS, P.B. DE JESUS & CO., INC., BENJAMIN V. GUIANG, and CRISOSTOMO LICERALDE, respondents.

FACTS

Benjamin Guiang and Crisostomo Liceralde were holders of separate timber licenses. In 1957, they and six other licensees, with government approval, consolidated their licenses into a single license issued to a newly formed corporation, Agusmin Promotional Enterprises, Inc. (AGUSMIN). In 1968, due to internal differences, Guiang and Liceralde sought to withdraw their original areas from AGUSMIN’s consolidated license to consolidate them with another licensee, Pedro B. de Jesus. The Secretary of Agriculture and Natural Resources (DANR) granted their request, reversing the Director of Forestry. The DANR authorized immediate execution of this decision upon respondents posting a bond to answer for damages AGUSMIN might suffer if its appeal succeeded. Guiang, Liceralde, and de Jesus then formed P.B. de Jesus & Co., Inc. (DE JESUS & CO.), which was issued a new consolidated timber license covering the contested areas.
AGUSMIN appealed the DANR decision to the Office of the President. The respondents moved to dismiss the appeal, arguing AGUSMIN failed to perfect it by not paying the required P20 appeal fee to the Office of the President on time. The Office of the President dismissed the appeal for non-perfection, rendering the DANR decision final. AGUSMIN subsequently filed a petition for certiorari with the Court of Appeals, which was dismissed. AGUSMIN then appealed to the Supreme Court.

ISSUE

The primary issue is whether the Court of Appeals erred in affirming the dismissal of AGUSMIN’s appeal to the Office of the President and in upholding the award of damages to DE JESUS & CO.

RULING

The Supreme Court denied the petition. On procedural grounds, the Court upheld the dismissal of AGUSMIN’s administrative appeal. Per Executive Order No. 19, series of 1966, payment of the appeal fee to the Office of the President is a mandatory requirement to perfect an appeal from a department secretary’s decision. The records showed AGUSMIN paid the P10 fee to the DANR but only paid the P20 fee to the Office of the President on July 12, 1967, which was beyond the reglementary period from its receipt of the adverse DANR decision on June 2, 1967. This failure deprived the Office of the President of jurisdiction, making the DANR decision final and executory.
On the substantive issue of damages, the Court affirmed the award. The DANR decision allowing the withdrawal of areas from AGUSMIN’s license had become final. The respondents had posted a bond to answer for potential damages, which inherently meant AGUSMIN’s rights were safeguarded and it was precluded from logging the withdrawn areas. Despite this, AGUSMIN continued logging operations in the areas already awarded to DE JESUS & CO. under the new consolidated license. This constituted bad faith, making AGUSMIN liable for the actual damages incurred, which were duly proven. The Court found no reason to disturb the appellate court’s factual findings and award.