434 TAN Gordon v. Veridiano

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Gordon v. Veridiano 1.

WoN the Mayor of Olongapo City has the authority and jurisdiction to
November 8, 1988 | Cruz, J. | Implications suspend the operations of drug stores – YES for Olongapo City Drug
store (violation of permit), NO for San Sebastian Drug Store (FDA has
PETITIONER: Richard Gordon, as City Mayor of Olongapo authority over the committed violation)
RESPONDENTS: Judge Regino Veridiano II and Spouses Eduardo and
Rosalinda Yambao RULING:

SUMMARY: A test buy was committed to see if San Sebastian Drug Store and WHEREFORE, the challenged Orders of July 6, 1980 and September 4, 1980, are
Olongapo City Drug Store will sell drugs without necessary prescription. Both MODIFIED in the sense that the suspension of Mayor’s Permit No. 1955 shall be
drug stores were found to be in violation of such act and the FDA filed a considered valid but only until the San Sebastian Drug Store and the Olongapo City
suspension, while Mayor of Olongapo moved to revoke the Mayor’s permit. Drug Store return to their original sites as specified in the FDA licenses and the
mayor’s permits or until the request for transfer, if made by the private respondents,
Spouses Yambao, owner of both drug stores, moved to annul the revocation of
their permit, to which the RTC sided with them. However, the Court finds that is approved but the petitioner. The rest of the said Orders are AFFIRMED, with costs
while San Sebastian Drug Store should not be subjected to revocation of against the petitioner.
Mayor’s permit as it served its sanction already with FDA (the proper body to
impose sanction based on violation), Olongapo City Drug Store violated SO ORDERED.
municipal laws that may cause its rightful revocation of permit to operate.
Narvasa, Gancayco, Griño-Aquino and Medialdea, JJ., concur.
DOCTRINE: Implications – A law that provides the power to grant licenses
implies that there is also a granted power to revoke such licenses. However, the
limitation of such implication is that there should be a violation or express RATIO:
disregard for pertinent laws/conditions attached to the granting/maintenance of
permit for the revocation to be valid. 1. Generally, the power to handle all drug-related inspections and issue
licenses for food, drug, and cosmetic-related products is vested with the
FDA through Republic Act No. 3720. Herein, the license to operate may be
suspended or revoked by the FDA if violations are found. PD No. 280 also
FACTS:
strengthens this power to allow the FDA to revoke and immediately cloase
1. San Sebastian Drug Store and Olongapo City Drug Store, owned by
drug-related establishments that do not follow FDA rules and guidelines.
Yambao, is potentially being stripped of its license to operate. An
undercover team did a “test buy” of certain drugs without prescription, to
Olongapo City also has authority due to its charter (RA 4645) that grants
which both drug stores complied without any question.
the Mayor the power to grant or refuse municipal licenses to operate for all
2. Both drug stores have a Mayor’s permit and FDA permit; however, FDA
types of businesses. Revokation can be done when there is evident violation
administrator issued a three-day suspension following the results of the test-
of city ordinances or laws.
buy.
3. Spouses Yambao then filed a complaint for mandamus and damages as well
By virtue of implication, it can be said that the power to grant licenses
as a writ of preliminary injunction against Olongapo Mayor Gordon for the
also provides the power to revoke such licenses. However, the limitation
latter’s attempt to suspend the Mayor’s permit of San Sebastian Drug Store
is that each party may only revoke their granted license based on the
for rampant violation of R.A. 5921, otherwise known as the Pharmacy Law
expressly stated conditions found within the laws that grant them the
and R.A. 6425 or the Dangerous Drugs Act of 1972.
authority to do so. Herein, FDA cannot revoke licenses for if the violation
4. Spouses Yambao also requested an exchange of location for both drug
only involves a municipal law violation but not an action sanctioned by RA
stores through FDA, but LGU responded by cancelling the Mayor’s permit
3720. The same holds true for the Mayor of Olongapo City as a violation
for Olongapo City Drug Store.
covered by the FDA cannot be used to revoke the Mayor’s permit if it is not
5. Judge of RTC Olongapo City sided with Spouses Yambao and filed a status
considered to be a violation within the scope of the charter.
quo order to prevent suspension of Mayor’s permit.

ISSUE/s:

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