Gordon V Veridiano

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G.R. No.

L-55230 November 8, 1988


HON. RICHARD J. GORDON, in his capacity as City Mayor of Olongapo, petitioner,
vs.
JUDGE REGINO T. VERIDIANO II and Spouses EDUARDO and ROSALINDA
YAMBAO, respondents.

The issue before the Court is the conflict between the Food and Drug Administration and the
mayor of Olongapo City over the power to grant and revoke licenses for the operation of
drug stores in the said city. While conceding that the FDA possesses such power, the mayor
claims he may nevertheless, in the exercise of his own power, prevent the operation of drug
stores previously permitted by the former.

Facts:
The San Sebastian Drug Store (SSDS) and the Olongapo City Drug Store (OCDS), both
owned by respondent Rosalinda Yambao, are located a few meters from each other in the
same building in Olongapo City. They were covered by Mayor's Permits issued for the year
1980 and licenses to operate issued by the Food and Drug Administration (FDA) for the same
year.

In 1980, a joint team of agents from the FDA and narcotics agents from the Philippine
Constabulary conducted a "test buy" at SSDS and was sold 200 tablets of Valium 10 mg.
worth P410 without a doctor's prescription.

A report on the operation was submitted to Mayor Richard Gordon of Olongapo City. He
issued a letter summarily revoking the store's Mayor's Permit of SSDS "for rampant violation of
the Pharmacy Law and the Dangerous Drugs Act of 1972."

Acting on the same investigation report of the "test-buy," and after hearing, FDA Administrator
Arsenio Regala directed the closure of the drug store for 3 days and its payment of a P100 fine
for violation of R.A. 3720. He also issued a stern warning to Yambao against a repetition of the
infraction. Later, the FDA lifted its closure order after noting that the penalties imposed had
already been discharged and allowed the drug store to resume operations. Valium is not a
prohibited drug, which is why the penalty imposed was only a 3-day closure and a fine of
P100.

Yambao wrote a letter to Mayor Gordon seeking reconsideration of the revocation of the
Mayor's Permit. Having received no reply, she filed with the RTC of Olongapo City a complaint
for mandamus and damages, with a prayer for a writ of preliminary injunction, against Mayor
Gordon.

On the same day, Yambao requested permission from the FDA to exchange the locations of
the two stores for reasons of "business preference." The request was granted but Mayor
Gordon disapproved the transfers and suspended the Mayor's Permit for the OCDS. The CFI
issued a writ of preliminary prohibitory injunction against Mayor Gordon

Issue:
Whether or not Mayor Gordon may, in the exercise of his power, prevent the operation of the
drug stores previously permitted by the FDA.

Held:
The power to approve a license includes by implication, even if not expressly granted, the
power to revoke it. By extension, the power to revoke is limited by the authority to grant the
license, from which itis derived in the first place.
If the FDA grants a license upon its finding that the applicant drug store has complied with
the requirements of the general laws and the implementing administrative rules and
regulations, it is only for their violation that the FDA may revoke the said license. By the
same token, having granted the permit upon his ascertainment that the conditions as applied
particularly to Olongapo City have been complied with, it is only for the violation of such
conditions that the mayor may revoke the said permit

In this case, the closure of the San Sebastian Drug Store was ordered by the FDA for
violation of its own conditions, which it had the primary power to enforce. By revoking the
mayor's permit on the same ground for which the SSDS had already been penalized by the
FDA, the mayor was in effect reversing the decision of the latter on a matter that came under
its jurisdiction. As the infraction involved the pharmacy and drug laws which the FDA had the
direct responsibility to execute, the mayor had no authority to interpose his own findings on
the matter and substitute them for the decision already made by the FDA.

Orders of the CFI MODIFIED in the sense that suspension of Mayor's Permit for OCDS
considered valid but only until the two drug stores return to their original sites as specified in
the FDA licenses and the mayor's permits or until the request for transfer, if made, is
approved by the petitioner. The rest of the said Orders are AFFIRMED.

Settled is the rule that the factual findings of administrative authorities are accorded great
respect because of their acknowledged expertise in the field of specialization to which they
are assigned. Even the Courts of Justice, including this Court, are concluded by such
findings in the absence of a clear showing of a grave abuse of discretion, which is not
present in the case at bar. For all his experience in the enforcement of the pharmacy and
drug addiction laws. He should therefore also be prepared, like the courts of justice
themselves, to accept its decision on this matter.

There are several guides to consider in reconciling or harmonizing statutes pari materia,
depending on the kind of statutes involved.

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