Source: http://lawlibrary.chanrobles.com/index.php?option=com_content&amp;view=article&amp;id=45903:156109&amp;catid=1459&amp;Itemid=566
Timestamp: 2019-04-20 00:38:20+00:00

Document:
G.R. No. 156109 - KHRISTINE REA M. REGINO v. PANGASINAN COLLEGES OF SCIENCE AND TECHNOLOGY, ET AL.
KHRISTINE REA M. REGINO, Assisted and Represented by ARMANDO REGINO, Petitioner, v. PANGASINAN COLLEGES OF SCIENCE AND TECHNOLOGY, RACHELLE A. GAMUROT and ELISSA BALADAD, Respondents.
Upon enrolment, students and their school enter upon a reciprocal contract. The students agree to abide by the standards of academic performance and codes of conduct, issued usually in the form of manuals that are distributed to the enrollees at the start of the school term. Further, the school informs them of the itemized fees they are expected to pay. Consequently, it cannot, after the enrolment of a student, vary the terms of the contract. It cannot require fees other than those it specified upon enrolment.
The second challenged Order denied petitioner's Motion for Reconsideration.
Petitioner Khristine Rea M. Regino was a first year computer science student at Respondent Pangasinan Colleges of Science and Technology (PCST). Reared in a poor family, Regino went to college mainly through the financial support of her relatives. During the second semester of school year 2001-2002, she enrolled in logic and statistics subjects under Respondents Rachelle A. Gamurot and Elissa Baladad, respectively, as teachers.
In February 2002, PCST held a fund raising campaign dubbed the "Rave Party and Dance Revolution," the proceeds of which were to go to the construction of the school's tennis and volleyball courts. Each student was required to pay for two tickets at the price of P100 each. The project was allegedly implemented by recompensing students who purchased tickets with additional points in their test scores; those who refused to pay were denied the opportunity to take the final examinations.
Financially strapped and prohibited by her religion from attending dance parties and celebrations, Regino refused to pay for the tickets. On March 14 and March 15, 2002, the scheduled dates of the final examinations in logic and statistics, her teachers - - Respondents Rachelle A. Gamurot and Elissa Baladad - - allegedly disallowed her from taking the tests. According to petitioner, Gamurot made her sit out her logic class while her classmates were taking their examinations. The next day, Baladad, after announcing to the entire class that she was not permitting petitioner and another student to take their statistics examinations for failing to pay for their tickets, allegedly ejected them from the classroom. Petitioner's pleas ostensibly went unheeded by Gamurot and Baladad, who unrelentingly defended their positions as compliance with PCST's policy.
On April 25, 2002, petitioner filed, as a pauper litigant, a Complaint5 for damages against PCST, Gamurot and Baladad. In her Complaint, she prayed for P500,000 as nominal damages; P500,000 as moral damages; at least P1,000,000 as exemplary damages; P250,000 as actual damages; plus the costs of litigation and attorney's fees.
On May 30, 2002, respondents filed a Motion to Dismiss6 on the ground of petitioner's failure to exhaust administrative remedies. According to respondents, the question raised involved the determination of the wisdom of an administrative policy of the PCST; hence, the case should have been initiated before the proper administrative body, the Commission of Higher Education (CHED).
In her Comment to respondents' Motion, petitioner argued that prior exhaustion of administrative remedies was unnecessary, because her action was not administrative in nature, but one purely for damages arising from respondents' breach of the laws on human relations. As such, jurisdiction lay with the courts.
On July 12, 2002, the RTC dismissed the Complaint for lack of cause of action.
In its dispositive portion, the assailed Order dismissed the Complaint for "lack of cause of action" without, however, explaining this ground.
"Whether or not the principle of exhaustion of administrative remedies applies in a civil action exclusively for damages based on violation of the human relation provisions of the Civil Code, filed by a student against her former school.
"Whether or not there is a need for prior declaration of invalidity of a certain school administrative policy by the Commission on Higher Education (CHED) before a former student can successfully maintain an action exclusively for damages in regular courts.
All of the foregoing point to one issue - - whether the doctrine of exhaustion of administrative remedies is applicable. The Court, however, sees a second issue which, though not expressly raised by petitioner, was impliedly contained in her Petition: whether the Complaint stated sufficient cause(s) of action.
"The doctrine of exhaustion of administrative remedies is basic. Courts, for reasons of law, comity, and convenience, should not entertain suits unless the available administrative remedies have first been resorted to and the proper authorities have been given the appropriate opportunity to act and correct their alleged errors, if any, committed in the administrative forum. x x x.13 "
Petitioner is not asking for the reversal of the policies of PCST. Neither is she demanding it to allow her to take her final examinations; she was already enrolled in another educational institution. A reversal of the acts complained of would not adequately redress her grievances; under the circumstances, the consequences of respondents' acts could no longer be undone or rectified.
Second, exhaustion of administrative remedies is applicable when there is competence on the part of the administrative body to act upon the matter complained of.14 Administrative agencies are not courts; they are neither part of the judicial system, nor are they deemed judicial tribunals.15 Specifically, the CHED does not have the power to award damages.16 Hence, petitioner could not have commenced her case before the Commission.
A motion to dismiss based on lack of cause of action hypothetically admits the truth of the alleged facts. In their Motion to Dismiss, respondents did not dispute any of petitioner's allegations, and they admitted that "x x x the crux of plaintiff's cause of action is the determination of whether or not the assessment of P100 per ticket is excessive or oppressive."21 They thereby premised their prayer for dismissal on the Complaint's alleged failure to state a cause of action. Thus, a reexamination of the Complaint is in order.
The foregoing allegations show two causes of action; first, breach of contract; and second, liability for tort.
In Alcuaz v. PSBA,23 the Court characterized the relationship between the school and the student as a contract, in which "a student, once admitted by the school is considered enrolled for one semester."24 Two years later, in Non v. Dames II,25 the Court modified the "termination of contract theory" in Alcuaz by holding that the contractual relationship between the school and the student is not only semestral in duration, but for the entire period the latter are expected to complete it."26 Except for the variance in the period during which the contractual relationship is considered to subsist, both Alcuaz and Non were unanimous in characterizing the school-student relationship as contractual in nature.
The terms of the school-student contract are defined at the moment of its inception - - upon enrolment of the student. Standards of academic performance and the code of behavior and discipline are usually set forth in manuals distributed to new students at the start of every school year. Further, schools inform prospective enrollees the amount of fees and the terms of payment.
In practice, students are normally required to make a down payment upon enrollment, with the balance to be paid before every preliminary, midterm and final examination. Their failure to pay their financial obligation is regarded as a valid ground for the school to deny them the opportunity to take these examinations.
The foregoing practice does not merely ensure compliance with financial obligations; it also underlines the importance of major examinations. Failure to take a major examination is usually fatal to the students' promotion to the next grade or to graduation. Examination results form a significant basis for their final grades. These tests are usually a primary and an indispensable requisite to their elevation to the next educational level and, ultimately, to their completion of a course.
Education is not a measurable commodity. It is not possible to determine who is "better educated" than another. Nevertheless, a student's grades are an accepted approximation of what would otherwise be an intangible product of countless hours of study. The importance of grades cannot be discounted in a setting where education is generally the gate pass to employment opportunities and better life; such grades are often the means by which a prospective employer measures whether a job applicant has acquired the necessary tools or skills for a particular profession or trade.
Thus, students expect that upon their payment of tuition fees, satisfaction of the set academic standards, completion of academic requirements and observance of school rules and regulations, the school would reward them by recognizing their "completion" of the course enrolled in.
The obligation on the part of the school has been established in Magtibay v. Garcia,28 Licup v. University of San Carlos29 and Ateneo de Manila University v. Garcia,30 in which the Court held that, barring any violation of the rules on the part of the students, an institution of higher learning has a contractual obligation to afford its students a fair opportunity to complete the course they seek to pursue.
We recognize the need of a school to fund its facilities and to meet astronomical operating costs; this is a reality in running it. Crystal v. Cebu International School31 upheld the imposition by respondent school of a "land purchase deposit" in the amount of P50,000 per student to be used for the "purchase of a piece of land and for the construction of new buildings and other facilities x x x which the school would transfer [to] and occupy after the expiration of its lease contract over its present site."
The amount was refundable after the student graduated or left the school. After noting that the imposition of the fee was made only after prior consultation and approval by the parents of the students, the Court held that the school committed no actionable wrong in refusing to admit the children of the petitioners therein for their failure to pay the "land purchase deposit" and the 2.5 percent monthly surcharge thereon.
In the present case, PCST imposed the assailed revenue-raising measure belatedly, in the middle of the semester. It exacted the dance party fee as a condition for the students' taking the final examinations, and ultimately for its recognition of their ability to finish a course. The fee, however, was not part of the school-student contract entered into at the start of the school year. Hence, it could not be unilaterally imposed to the prejudice of the enrollees.
"The State shall protect and promote the right of all citizens to quality education at all levels and shall take appropriate steps to make such declaration accessible to all.
"Every student has a right to select a profession or course of study, subject to fair, reasonable and equitable admission and academic requirements."
(2) The right to freely choose their field of study subject to existing curricula and to continue their course therein up to graduation, except in cases of academic deficiency, or violation of disciplinary regulations."
"Article 19. Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith."
"Article 21. Any person who wilfully causes loss or injury to another in a manner that is contrary to morals, good customs or public policy shall compensate the latter for the damage."
(4) Vexing or humiliating another on account of his beliefs, lowly station in life, place of birth, physical defect, or other personal condition."
In Tangonan v. PaÃ±o,39 the Court upheld, in the name of academic freedom, the right of the school to refuse readmission of a nursing student who had been enrolled on probation, and who had failed her nursing subjects. These instances notwithstanding, the Court has emphasized that once a school has, in the name of academic freedom, set its standards, these should be meticulously observed and should not be used to discriminate against certain students.40 After accepting them upon enrollment, the school cannot renege on its contractual obligation on grounds other than those made known to, and accepted by, students at the start of the school year.
In sum, the Court holds that the Complaint alleges sufficient causes of action against respondents, and that it should not have been summarily dismissed. Needless to say, the Court is not holding respondents liable for the acts complained of. That will have to be ruled upon in due course by the court a quo.
WHEREFORE, the Petition is hereby GRANTED, and the assailed Orders REVERSED. The trial court is DIRECTED to reinstate the Complaint and, with all deliberate speed, to continue the proceedings in Civil Case No. U-7541. No costs.
2 Id., pp. 18-19. Penned by Presiding Judge Alicia B. Gonzalez-Decano.
4 Assailed July 12, 2002 Order, p. 2; rollo, p. 19.
7 Assailed Order dated July 12, 2002, pp. 1-2; rollo, pp. 18-19. Citations omitted.
8 This case was deemed submitted for decision on December 23, 2003, upon receipt by this Court of petitioner's Memorandum, signed by Atty. Winifred L. Cruz. Respondents' Memorandum, signed by Atty. Joselino A. Viray, was received by the Court on December 22, 2003.
9 Petitioners' Memorandum, p. 3; rollo, p. 90. Original in upper case.
10 Respondents' Memorandum (citing Section 2 of RA 7722), p. 8; rollo, p. 78.
"Petitioner is not seeking any administrative action or relief such as make-up test or any disciplinary action against the school, its officials or members of the faculty involved. Neither is she challenging the validity of the school policy or decision to prohibit examinations to non-paying students. She does not even take issue with the validity of the fund-raising campaign or the forced selling of tickets. She is not invoking her right to a quality and affordable education. In sum, petitioner raises no administrative issue and seeks no action or relief which is administrative in character. She is invoking judicial intervention as her cause of action is based on violation of the Human Relations provision of the Civil Code, specifically Articles 19, 20, 21 and 26 for the loss or injury she suffered on account of the inhuman manner she was x x x treated when she was denied the examinations.
"x x x. The [school] policy may be legal but it does not necessarily follow that the manner it is implemented is legal - the manner it is implemented may be contrary to law, morals or public policy resulting in injury to a person. To say, therefore, that the validity of the school policy in question must have to be tested before an administrative body before an action for damages can be had, would be tantamount to saying that once it is upheld, the aggrieved party can no longer maintain an action for damages, for the wrongful, injurious manner by which the policy was implemented. x x x.
12 378 Phil. 282, December 13, 1999.
13 Id., p. 292, per De Leon Jr., J.
14 Miriam College Foundation v. CA, 348 SCRA 265, December 15, 2000.
15 United Residents of Dominican Hill, Inc. v. Commission on the Settlement of Land Problems, 353 SCRA 782, March 7, 2001.
o) perform such other functions as may be necessary for its effective operations and for the continued enhancement, growth or development of higher education."
17 One Heart Sporting Club, Inc. v. CA, 195 Phil. 253, October 23, 1981; Miriam College Foundation v. CA, 348 SCRA 265, December 15, 2000.
18 Ateneo de Manila University v. CA, 229 Phil. 128, October 16, 1986.
19 See '1 of Rule 16 of the 1997 Rules of Civil Procedure.
20 Paminsan v. Costales, 28 Phil 487, November 25, 1914.
21 Motion to Dismiss, p. 2; rollo, p. 28.
22 Complaint, pp. 2-3; rollo, pp. 22-23.
23 161 SCRA 7, May 2, 1988.
24 Id., p. 17, per Paras, J.
25 185 SCRA 523, May 20, 1990.
27 Philippine School of Business Administration v. CA, 205 SCRA 729, February 4, 1992; University of San Agustin v. CA, 230 SCRA 761, March 7, 1994.
28 205 Phil. 307, January 28, 1983.
29 178 SCRA 637, October 19, 1989.
31 356 SCRA 296, April 4, 2001.
32 Non v. Dames II, supra, p. 537, per Cortes, J.
33 Complaint, p. 3; rollo, p. 23.
35 Id., pp. 733-735, per Padilla, J.
36 Miriam College Foundation v. CA, supra.
37 68 SCRA 277, November 28, 1975.
39 137 SCRA 245, June 27, 1985.
40 Villar v. Technological Institute of the Philippines, 220 Phil. 379, April 17, 1985.

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