Loc Gov Digests

DLCLN1kALI2A1ICN, LCCAL AU1CNCM, CWLkS CI MUNICIAL CCkCkA1ICNS
Ak1 II

18

Ak1 II: DLCLN1kALI2A1ICN, LCCAL AU1CNCM, CWLkS CI MUNICIAL CCkCkA1ICNS
1. Loca| Government Un|ts v|s--v|s Nat|ona| Government
ower of Genera| Superv|s|on
2. Decentra||zat|on, Loca| Autonomy
3. Intergovernmenta| ke|at|ons
4. owers of Mun|c|pa| Corporat|ons]Governments
4.1 o||ce ower
4.2 ower of 1axat|on, Loca| 1axes and kea| roperty 1ax
Loca| 1axat|on
Iranch|ses
4.3 Shares of LGUs |n Nat|ona| 1axes
4.4 Abatement of Nu|sance
4.S ower of Lm|nent Doma|n
4.6 kec|ass|s|fcat|on of Lands
4.7 C|osure and Cpen|ng of koads
4.8 Corporate owers
4.9 Author|ty to Negot|ate and Secure Grants, kece|ve Donat|ons, I|oat 8onds, 8C1
4.10 Mayor's ower over the o||ce, Cperat|ona| Contro|, Suspens|on

1. LCCAL GCVLkNMLN1 UNI1S VIS-A-VIS NA1ICNAL GCVLkNMLN1
!"#$% "' ($)$%*+ ,-.$%/0,0")

Dr||on v. L|m (1994)

IAC1S:
1hen SecreLary of !usLlce lranklln M. urllon, pursuanL Lo Lhe auLhorlLy granLed upon hlm by SecLlon 187 of Lhe LCC
and upon appeal of concerned parLles, declared Lhe Manlla 8evenue Code null and vold for non-compllance wlLh
Lhe prescrlbed procedure ln Lhge enacLmenL of local Lax ordlnances and for conLalnlng provlslons conLrary Lo law
and publlc pollcy.

upon appeal Lo Lhe 81C, Lhe Lrlal [udge reversed Lhe order of peLlLloner and, ln addlLlon, declared SecLlon 187 of
Lhe LCC unconsLlLuLlonal as lL gave Lhe SecreLary of !usLlce Lhe power of conLrol over local governmenLs ln
vlolaLlon of Lhe prlnclple of local auLonomy mandaLed by Lhe ConsLlLuLlon. 1he 81C ruled LhaL Lhe LxecuLlve only
had Lhe power of supervlslon and noL conLrol.

nLLD:
1he SC overruled Lhe Lrlal courL lnsofar as lL declared SecLlon 187 unconsLlLuLlonal. 1he power of conLrol
encompasses Lhe power Lo lay down Lhe rules ln Lhe accompllshmenL of an acL. lf Lhey are noL followed, Lhe one ln
conLrol may order Lhe acL done, re-done, or do lL hlmself. Cn Lhe oLher hand, Lhe power Lo supervlse only enLalls a
deLermlnaLlon of WCn Lhe rules were followed and Lo have Lhe work done or re-done ln accordance wlLh Lhe
prescrlbed rules.

ConLrary Lo Lhe holdlng of Lhe lower courL, Lhe SC sald LhaL Lhe provlslon only gave Lhe SecreLary of !usLlce Lhe
power Lo supervlse, noL conLrol, ln LhaL Lhe SecreLary of !usLlce could only deLermlne Lhe consLlLuLlonallLy or
legallLy of Lhe local Lax ordlnance and revoke Lhem on such grounds. 1he provlslon dld noL em power Lhe SecreLary
Lo subsLlLuLe hls own [udgmenL for Lhe [udgmenL of Lhe LCu, Lhe SecreLary was noL auLhorlzed by SecLlon 187 Lo
deLermlne wheLher Lhe law was wlse or reasonable or oLherwlse a generally bad law. Pe was glven no dlscreLlon ln
Lhe maLLer.

1haL noLwlLhsLandlng, Lhe SC agreed wlLh Lhe Lrlal courL ln LhaL Lhe procedural requlremenLs for Lhe passage of Lhe
ordlnance were fulfllled. 1he lnlLlal declslon of Lhe SecreLary, lL sald, was a resulL of Lhe lnsufflclenL Llme lL gave Lo
Ak1 II

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Lhe respondenLs Lo procure Lhe necessary evldence of such procedural compllance. 1he Manlla 8evenue Code was
upheld.

"#$%&' #$ (&)%*$) +,- (,.& *) %/& 0*),1 .&2*-*$) 3&4,3.*)4 %/& 53$6*-*$)- 2$)%3,37 %$ 1,+ ,). 5891*2 5$1*27 &,31*&3
2*%&. 97 %/& :&23&%,37 ,- ,..*%*$),1 43$8).-;<

So||c|tor Genera| v. Metopo||tan Man||a Author|ty (1991)

IAC1S:
Cn !uly 13, 1990, Lhe Conong declslon was promulgaLed whereln Lhe CourL held LhaL conflscaLlon of llcense plaLes
ls nC1 allowed Lo be lmposed by MeLro Manlla AuLhorlLy (MMA) under u 1603 LxCL1 as provlded for under LCl
43 ln case of sLalled vehlcles obsLrucLlng Lhe publlc sLreeLs. Llkewlse, u 1603 does noL allow conflscaLlon of
drlver's llcense.

Powever, subsequenLly, a number of conflscaLlons of drlver's llcense and llcense plaLes were sLlll commlLLed by
Lrafflc enforcers ln MeLro Manlla. Pence, SC recelved several leLLer-complalnLs regardlng Lhls maLLer.

1he accused Lrafflc enforcers lnvoked Crdlnance no. 7, Serles of 1988 and Crdlnance no. 11, Serles of 1991 whlch
boLh auLhorlze conflscaLlon of drlver's llcense and removal of llcense plaLe.

ISSULS:
1. WCn Lhere ls a valld delegaLlon of leglslaLlve power Lo promulgaLe Lhe ordlnances
2. WCn Lhe ordlnances were valld

nLLD:
1. ?LS. 1he requlslLes of a valld delegaLlon were presenL namely:
a. CompleLeness of sLaLuLe maklng Lhe delegaLlon
b. resence of sufflclenL sLandard: ubllc convenlence and welfare ln Lhls case

2. nC. 1o LesL Lhe valldlLy of such acLs, apply Lhe parLlcular requlslLes of a valld ordlnance namely:
a. lL musL noL conLravene Lhe ConsLlLuLlon or any sLaLuLe
b. lL musL noL be unfalr nor oppresslve
c. lL musL noL be parLlal nor dlscrlmlnaLory
d. lL musL noL prohlblL buL regulaLe Lrade
e. lL musL noL be unreasonable
f. lL musL be general and conslsLenL wlLh publlc pollcy

Applylng Lhe Conong declslon, measures under conslderaLlon does noL pass Lhe flrsL requlslLe because Lhey are noL
conformlng Lo Lhe exlsLlng law whlch was u 1603 ln Lhls case. u 1603 expressly prohlblLs removal of llcense plaLe
and conflscaLlon of drlver's llcense conLrary Lo Lhe ordlnances.

Ganzon vs. CA (1991)

IAC1S:
Canzon was Lhe Lhen mayor of llollo ClLy. 10 admlnlsLraLlve cases were flled agalnsL hlm on grounds of mlsfeasance
of offlce, abuse of auLhorlLy, oppresslon, grave mlsconducL, eLc. llndlng probable cause for Lhe charges, Lhe
SecreLary of lnLerlor lssued several 60-day prevenLlve suspenslon orders agalnsL Canzon, posslbly reachlng 600
days of suspenslon. Canzon appealed Lhe lssue Lo Lhe CA whlch afflrmed Lhe suspenslon orders by Lhe SecreLary.
Canzon Lhen lnsLlLuLed an acLlon for prohlblLlon agalnsL Lhe SecreLary ln Lhe 81C of llollo ClLy where he succeeded
ln obLalnlng a wrlL of prellmlnary ln[uncLlon. Pe also lnsLlLuLed acLlons for prohlblLlon before Lhe CourL of Appeals
buL were boLh dlsmlssed. 1he Supreme CourL noneLheless lssued a Lemporary resLralnlng order en[olnlng Lhe
Ak1 II

20

SecreLary from lmplemenLlng hls suspenslon orders. 1hus, Lhls peLlLlon for revlew wlLh Lhe argumenL LhaL LhaL Lhe
1987 ConsLlLuLlon does noL auLhorlze Lhe resldenL nor any of hls alLer ego, lncludlng Lhe respondenL SecreLary, ls
devold, ln any evenL, of any auLhorlLy Lo suspend and remove local offlclals as Lhe 1987 ConsLlLuLlon no longer
allows Lhe resldenL Lo exerclse sald power, and lnsLead lL supporLs local auLonomy and sLrengLhens Lhe same.
WhaL was glven by Lhe presenL ConsLlLuLlon was mere supervlsory power.

ISSUL:
WheLher or noL Lhe SecreLary of Local CovernmenL, as Lhe resldenL's alLer ego, can suspend and or remove local
offlclals.

nLLD: ?LS.
- noLwlLhsLandlng Lhe change ln Lhe ConsLlLuLlonal language, Lhe ConsLlLuLlon dld noL lnLend Lo dlvesL Lhe
leglslaLure of lLs rlghL, or Lhe resldenL of her prerogaLlve as conferred by exlsLlng leglslaLlon Lo provlde
admlnlsLraLlve sancLlon agalnsL local offlclals. AuLonomy does noL conLemplaLe maklng mlnl-sLaLes ouL of LCus,
and ls sub[ecL Lo Lhe guldance, Lhough noL conLrol, of Lhe leglslaLure, albelL Lhe leglslaLlve responslblllLy under Lhe
ConsLlLuLlon and as Lhe "supervlslon clause" lLself suggesL-ls Lo wean local governmenL unlLs from over-
dependence on Lhe cenLral governmenL. Local auLonomy ls noL lnsLanLly self-execuLlng, sub[ecL Lo Lhe passage of a
LCC, and oLher measures Lo reallze auLonomy aL Lhe local level. 1he deleLlon of "as may be provlded by law" ln Sec.
4, ArL. 10 of Lhe ConsLlLuLlon was meanL Lo sLress, sub sllenclo, Lhe ob[ecLlve of Lhe framers Lo sLrengLhen local
auLonomy by severlng congresslonal conLrol of lLs affalrs.

- Canzon: LhaL Lhe ConsLlLuLlon has lefL Lhe resldenL mere supervlsory powers, whlch supposedly excludes Lhe
power of lnvesLlgaLlon, and denled her conLrol, whlch allegedly embraces dlsclpllnary auLhorlLy.
- SC: Legally, "supervlslon" ls noL lncompaLlble wlLh dlsclpllnary auLhorlLy. Mondano v. Sllvosa held LhaL:
- - "conLrol" - Lhe power of an offlcer Lo alLer or modlfy or nulllfy or seL aslde whaL a subordlnaLe offlcer had
done ln Lhe performance of hls duLles and Lo subsLlLuLe Lhe [udgmenL of Lhe former for LesL of Lhe laLLer
- - "supervlslon" - overseelng or Lhe power or auLhorlLy of an offlcer Lo see LhaL subordlnaLe offlcers perform
Lhelr duLles.
- Powever, "lnvesLlgaLlng" ls noL lnconslsLenL wlLh "overseelng", alLhough lL ls a lesser power Lhan "alLerlng".
revlous [urlsprudence dld noL caLegorlcally ban Lhe Chlef LxecuLlve from exerclslng acLs of dlsclpllnary auLhorlLy
because she dld noL exerclse conLrol powers, buL because no law allowed her Lo exerclse dlsclpllnary auLhorlLy.
Local governmenLs, under Lhe ConsLlLuLlon, are sub[ecL Lo regulaLlon, however llmlLed, and for no oLher purpose
Lhan preclsely, albelL paradoxlcally, Lo enhance self- governmenL.
- uecenLrallzaLlon means devoluLlon of naLlonal admlnlsLraLlon buL noL power Lo Lhe local levels.
- - uecenLrallzaLlon of admlnlsLraLlon - when Lhe cenLral governmenL delegaLes admlnlsLraLlve powers Lo
pollLlcal subdlvlslons Lo broaden Lhe base of governmenL power and Lo make local governmenLs "more responslve
and accounLable," and "ensure Lhelr fullesL developmenL as self-rellanL communlLles and make Lhem more
effecLlve parLners ln Lhe pursulL of naLlonal developmenL and soclal progress." lL relleves Lhe cenLral governmenL
of Lhe burden of managlng local affalrs and enables lL Lo concenLraLe on naLlonal concerns. 1he resldenL exerclses
"general supervlslon" over Lhem, noL conLrol.
- - uecenLrallzaLlon of power - an abdlcaLlon of pollLlcal power ln Lhe favor of local governmenLs unlLs declared
Lo be auLonomous, whlch are free Lo charL Lhelr own desLlny and shape Lhelr fuLure wlLh mlnlmum lnLervenLlon
from cenLral auLhorlLles. lL amounLs Lo "self-lmmolaLlon," slnce Lhe auLonomous governmenL becomes
accounLable noL Lo Lhe cenLral auLhorlLles buL Lo lLs consLlLuency.
- Slnce Canzon ls faclng 10 admlnlsLraLlve charges, he ls faclng Lhe posslblllLy of 600 days of suspenslon, ln Lhe
evenL LhaL all 10 cases yleld prlma facle flndlngs. 1o make Mayor Canzon serve 600 days of suspenslon ls Lo
effecLlvely suspend hlm ouL of offlce.
- - A baslc assumpLlon of Lhe elecLoral process lmpllclL ln Lhe rlghL of suffrage LhaL Lhe people are enLlLled Lo Lhe
servlces of elecLlve offlclals of Lhelr cholce. lor mlsfeasance or malfeasance, Lhey could be proceeded agalnsL
admlnlsLraLlvely or crlmlnally. A prevenLlve suspenslon may be [usLlfled. lLs conLlnuance, however, for an
unreasonable lengLh of Llme ralses a due process quesLlon. lor even lf LhereafLer he were acqulLLed, ln Lhe
meanwhlle hls rlghL Lo hold offlce had been nulllfled. Clearly, Lhere would be ln such a case an ln[usLlce suffered by
Ak1 II

21

hlm. nor ls he Lhe only vlcLlm. 1here ls ln[usLlce lnfllcLed llkewlse on Lhe people for havlng been deprlved of hls
servlces.
- 1he sole ob[ecLlve of a suspenslon ls slmply "Lo prevenL Lhe accused from hamperlng Lhe normal cause of Lhe
lnvesLlgaLlon wlLh hls lnfluence and auLhorlLy over posslble wlLnesses" or Lo keep hlm off "Lhe records and oLher
evldence. lL ls a means, and no more, Lo asslsL prosecuLors ln flrmlng up a case agalnsL an errlng local offlclal.
under Lhe LCC, lL can noL exceed 60 days. lL ls noL a penalLy, and lL ls only Lemporary.
- We are noL precludlng Lhe resldenL, Lhrough Lhe SecreLary of lnLerlor from exerclslng a legal power, yeL we are
of Lhe oplnlon LhaL Lhe SecreLary of lnLerlor ls exerclslng LhaL power oppresslvely, and needless Lo say, wlLh a grave
abuse of dlscreLlon.

Mactan Cebu Internat|ona| A|rport Author|ty v. Marcos (1996).

IAC1S::
ln 1994, Lhe Cebu ClLy governmenL asked Lhe MClAA Lo pay 2.229 mllllon ln real esLaLe Laxes. MClAA sald LhaL lLs
charLer exempLed lL from paymenL of real Laxes, and furLher argued LhaL as an lnsLrumenLallLy of Lhe governmenL
performlng governmenLal funcLlons, lL was exempL from Lhe Laxes levled by local governmenL unlLs.

ISSUL:
WheLher or noL Lhe Laxlng powers glven Lo local governmenL unlLs by Lhe 1987 ConsLlLuLlon exempLed governmenL
owned or conLrolled corporaLlons such as Lhe MClAA.

nLLD:
nC, governmenL owned or conLrolled corporaLlons are noL exempL from real esLaLe Laxes levled by LCus.

kA1IC:
8ecause Lhe general rule ls Lo Lax, Lhe exempLlon musL be clear and expressly provlded for ln Lhe law. 1he 81C
ruled LhaL Lhe LCC was clear ln revoklng all Lax exempLlons or lncenLlves granLed, excepL Lhose speclflcally
provlded for ln Lhe LCC, and Lhe MClAA dld noL fall under Lhose exempLlons.

1he SC, ln upholdlng Lhe 81C declslon, sald Lhe exempLlons granLed under Sec 133 of Lhe LCC were furLher
quallfled by oLher secLlons (232, 234) ln Lhe same Code and LhaL, Laken LogeLher, lL was clear Lhe MClAA was noL
exempL from paylng realLy Laxes.

1. Whlle 8A 6938, Lhe charLer of MClAA, expressly exempLed lL from paylng Laxes, Lhe Local CovernmenL Code (8A
7160) laLer enacLed ln pursuance of ArL x of Lhe 1987 ConsLlLuLlon revoked all exempLlons (Sec 193: unless
oLherwlse provlded for ln Lhls Code, Lax exempLlons or lncenLlves granLed Lo, or presenLly en[oyed by all persons
wheLher naLural or [urldlcal, lncludlng governmenL-owned or conLrolled corporaLlons, excepL local waLer dlsLrlcLs,
cooperaLlves duly reglsLered under 8A no. 6938, non-sLock and non-proflL hosplLals and educaLlonal lnsLlLuLlons,
are hereby wlLhdrawn.)

2. MClAA, however, clalmed LhaL lL was exempL under Sec 133 (o), whlch sald LhaL Lhe exerclse of Lhe Laxlng
powers of Lhe LCus shall noL exLend Lo.(o) 1axes, fees, charges of any klnd on Lhe naLlonal CovernmenL, lLs
agencles and lnsLrumenLallLles, and local governmenL unlLs.

1he SC however polnLed ouL LhaL Sec 234 speclflcally menLloned LhaL exempLlons prevlously granLed Lo or
presenLly en[oyed by.governmenL owned and conLrolled corporaLlons were wlLhdrawn upon Lhe effecLlvlLy of Lhe
Code. lL dld noL dlfferenLlaLe beLween CCCCs performlng governmenLal or proprleLary funcLlons.

1he exempLlons glven under Lhe LCC were based on ownershlp (owned by: Lhe 8epubllc, provlnce, clLy,
munlclpallLy, barangay, or a reglsLered cooperaLlve), characLer (charlLable lnsLlLuLlons, houses and Lemples of
prayer, non-proflL or rellglous cemeLerles), and use of properLy (lf acLually, dlrecLly, or excluslvely used for
rellglous, charlLable, or educaLlonal purposes, by local waLer dlsLrlcLs or governmenL-owned or conLrolled
Ak1 II

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corporaLlons engaged ln Lhe supply/dlsLrlbuLlon of waLer/elecLrlclLy, and machlnery and equlpmenL used for
polluLlon conLrol and envlronmenLal proLecLlon).

Whlle 133 ls Lhe general rule (Lhe Laxlng power of LCus cannoL exLend Lo Laxes, fees, charges levled on agencles
and lnsLrumenLallLles of naLlonal CovernmenL) lL ls furLher quallfled by 232 (whlch allowed LCus ln MeLropollLan
Manlla Lo levy real properLy Laxes) and 234 (whlch, whlle exempLlng real properLy owned by Lhe 8epubllc of Lhe
hlllpplnes or any of lLs pollLlcal subdlvlslons, added Lhe phrase: LxCL1 when Lhe beneflclal use Lhereof had been
granLed.Lo a Laxable person.)

Slnce Lhe lasL paragraph of SecLlon 234 unequlvocally wlLhdrew, upon Lhe effecLlvlLy of Lhe LCC, exempLlons from
paymenL of real properLy Laxes granLed Lo naLural or [urldlcal persons, lncludlng governmenL-owned or conLrolled
corporaLlons, excepL as provlded ln Lhe sald secLlon, and Lhe peLlLloner ls, undoubLedly, a governmenL-owned
corporaLlon, lL necessarlly follows LhaL lLs exempLlon from such Lax granLed lL ln SecLlon 14 of lLs CharLer, 8.A. no.
6938, has been wlLhdrawn.

3. 1he quesLlon ls, ls Lhe land exempL from real properLy Laxes, by vlrLue of 234 (a): properLy owned by Lhe
8epubllc of Lhe hlllpplnes.

1he SC sald nC: Whlle 133 (o) menLloned lnsLrumenLallLles of Lhe naLlonal CovernmenL, lL polnLed ouL LhaL 234
only menLloned 8epubllc of Lhe hlllpplnes or lLs pollLlcal subdlvlslons."

1he Lwo Lerms, 8epubllc of Lhe hlllpplnes and naLlonal CovernmenL are noL lnLerchangeable, Lhe SC sald. 1he flrsL
ls Lhe corporaLe governmenLal enLlLy Lhrough whlch Lhe funcLlons of governmenL are exerclsed LhroughouL Lhe
hlllpplnes, lncludlng Lhe varlous arms Lhrough whlch pollLlcal auLhorlLy ls made effecLlve." whlle naLlonal
CovernmenL ls Lhe enLlre machlnery of Lhe cenLral governmenL, as dlsLlngulshed from Lhe dlfferenL forms of local
governmenLs."

lf SecLlon 234(a) lnLended Lo exLend Lhe excepLlon Lhereln Lo Lhe wlLhdrawal of Lhe exempLlon from paymenL of
real properLy Laxes under Lhe lasL senLence of Lhe sald secLlon Lo Lhe agencles and lnsLrumenLallLles of Lhe naLlonal
CovernmenL menLloned ln SecLlon 133(o), Lhen lL should have resLaLed Lhe wordlng of Lhe laLLer.

1he SC added LhaL Lhe source of Lhls exempLlon could be Lraced Lo u 464, Lhe 8eal roperLy 1ax Code, whlch
exempLs real properLy owned by Lhe 8epubllc of Lhe hlllpplnes or any of lLs pollLlcal subdlvlslons. Whlle Lhe same
provlslon also exempLs CCCCs, lL added LhaL Lhe exempLlon shall noL apply Lo real properLy Lhe beneflclal use of
whlch has been granLed Lo a Laxable person.

So even lf Lhe land belonged Lo Lhe 8epubllc of Lhe hlllpplnes, buL has been Lransferred Lo a Laxable person, lL was
sLlll noL exempL. ArL. 13 of Lhe MClAA charLer Lransferred Lhe asseLs Lo Lhe MClAA.

1he SC polnLed ouL LhaL under lLs own charLer, MClAA was only exempL from paylng real properLy Laxes, lL dld noL
say LhaL Lhe auLhorlLy was noL a Laxable person. And even lf was noL a Laxable person for purposes of paymenL of
real properLy Laxes, lL became one Lhrough Lhe lasL paragraph of Sec 234 of Lhe LCC, whlch wlLhdrew exempLlons
from paymenL of real properLy Lax from all persons.lncludlng CCCCs."

rov|nce of Negros Ccc|denta| v. Comm|ss|on on Aud|t(2010)

IAC1S:
eLlLloner, Lhrough an approved Sanggunlang anlalawlgan resoluLlon , granLed and released Lhe paymenL for
healLh care lnsurance beneflLs of Lhe provlnce's offlclals and employees wlLhouL any prlor approval from Lhe
resldenL, as requlred by an admlnlsLraLlve order. CCA dlsallowed Lhe premlum paymenL for such beneflLs because
aslde from conLravenlng Lhe admlnlsLraLlve order, lL ls allegedly also a form of addlLlonal compensaLlon, whlch ls
agalnsL Lhe Salary SLandardlzaLlon Law.
Ak1 II

23

ISSUL:
WCn Lhe admlnlsLraLlve order applles also Lo LCus

nLLD:
no, Lhe resldenL, pursuanL Lo ArL x Sec. 4 of Lhe ConsLlLuLlon can only exerclse general supervlslon, whlch ls Lhe
power of a superlor offlcer Lo see Lo lL LhaL subordlnaLes perform Lhelr funcLlons accordlng Lo law. 1hls ls dlfferenL
from Lhe power of conLrol , whlch ls Lo alLer, modlfy, or seL aslde whaL a subordlnaLe has done ln performance of
hls duLles. 1hus, an admlnlsLraLlve order does noL apply Lo LCus buL only Lo governmenL offlces /agencles, and
CCCCs whlch are under Lhe conLrol of Lhe resldenL. 1he granL of addlLlonal compensaLlon llke healLh lnsurance
beneflLs do noL need Lhe prlor approval of Lhe resldenL.

2. DLCLN1kALI2A1ICN, LCCAL AU1CNCM

L|mbona vs. Mange||n (1989)

IAC1S:
eLlLloner SulLan Allmbusar Llmbona was elecLed Speaker of Lhe LeglslaLlve Assembly of 8eglon xll or 8aLasang
ampook of CenLral Mlndanao (Assembly). ConsequenLly, he was lnvlLed by Lhe Chalrman of Lhe CommlLLee on
Musllm Affalrs of Lhe Pouse of 8epresenLaLlves for consulLaLlon and dlalogue as prelude Lo Lhe esLabllshmenL of an
auLonomous governmenL. ConslsLenL wlLh Lhe sald lnvlLaLlon, eLlLloner advlsed all Assemblymen Lhrough Lhe
AcLlng SecreLary of Lhe Assembly LhaL Lhere shall be no sesslon ln november as our presence ln Lhe house
commlLLee hearlng of Congress Lakes precedence over any pendlng buslness ln baLasang pampook..." Powever,
Lhe Assembly (8espondenLs) sLlll held sesslon ln deflance of eLlLloner's advlce. AfLer declarlng Lhe presence of a
quorum, Lhe Speaker ro-1empore Mangelln was auLhorlzed Lo preslde ln Lhe sesslon. Cn MoLlon Lo declare Lhe
seaL of Lhe Speaker vacanL, all Assemblymen ln aLLendance voLed ln Lhe afflrmaLlve. Accordlngly, eLlLloner flled
before Lhe Supreme CourL for Lhe lssuance of a resLralnlng order en[olnlng respondenLs from proceedlng wlLh Lhelr
sesslon, and prayed LhaL hls elecLlon as Speaker of sald LeglslaLlve Assembly be held valld and subslsLlng. endlng
furLher proceedlngs, CourL also recelved a resoluLlon flled by Lhe Sanggunlang ampook, Lxpelllng Allmbusar .
Llmbona from Membershlp of Lhe Sanggunlang ampook AuLonomous 8eglon xll." Accordlng Lo 8espondenLs,
eLlLloner flled a case before Lhe Supreme CourL agalnsL some members of Lhe Assembly on quesLlon whlch should
have been resolved wlLhln Lhe conflnes of Lhe Assembly.

ISSUL:
Are Lhe so-called auLonomous governmenLs of Mlndanao sub[ecL Lo Lhe [urlsdlcLlon of Lhe naLlonal courLs? (ln
oLher words, whaL ls Lhe exLenL of self-governmenL glven Lo Lhe Lwo auLonomous governmenLs of 8eglons lx and
xll?)

nLLD:
?es. An examlnaLlon of Lhe presldenLlal decree creaLlng Lhe auLonomous governmenLs of Mlndanao and
promulgaLed on !uly 23, 1979 shows LhaL Lhey were never meanL Lo exerclse auLonomy such LhaL Lhe cenLral
governmenL commlLs an acL of self-lmmolaLlon. llrsL, .u. no. 1618 mandaLes LhaL [L]he resldenL shall have Lhe
power of general supervlslon and conLrol over AuLonomous 8eglons." Second, Lhe Sanggunlang ampook, Lhe
leglslaLlve arm, ls made Lo dlscharge chlefly admlnlsLraLlve servlces.

kA1IC:
AuLonomy ls elLher decenLrallzaLlon of admlnlsLraLlon or decenLrallzaLlon of power. 1here ls decenLrallzaLlon of
admlnlsLraLlon when Lhe cenLral governmenL delegaLes admlnlsLraLlve powers Lo pollLlcal subdlvlslons ln order Lo
broaden Lhe base of governmenL power. 1he resldenL exerclses general supervlslon" over Lhem, buL only Lo
ensure LhaL local affalrs are admlnlsLered accordlng Lo law." Pe has no conLrol over Lhelr acLs ln Lhe sense LhaL he
can subsLlLuLe Lhelr [udgmenLs wlLh hls own. Cn Lhe oLher hand, decenLrallzaLlon of power lnvolves an abdlcaLlon
of pollLlcal power ln favor of local governmenLs unlLs declared Lo be auLonomous. 8ecause Lhe auLonomous
Ak1 II

24

governmenL becomes accounLable noL Lo Lhe cenLral auLhorlLles buL Lo lLs consLlLuency, decenLrallzaLlon of power
essenLlally amounLs Lo self-lmmolaLlon."

San Iuan vs. C|v|| Serv|ce Comm|ss|on (1991)

IAC1S:
- 1he poslLlon of rovlnclal 8udgeL Cfflcer (8C) became vacanL for Lhe rovlnce of 8lzal.
- 1he rovlnclal Covernor, 8eynaldo San !uan, lnformed Lhe ueparLmenL of 8udgeL and ManagemenL
(u8M) ulrecLor for 8eglon lv, 8eynaldo Abella, LhaL uallsay SanLos assumed offlce as acLlng 8C pursuanL Lo a
Memo lssued by Lhe Covernor whlch also requesLed Lhe ulrecLor Lo endorse uallsay SanLos Lo Lhe poslLlon of 8C.
- ulrecLor Abella lnsLead recommended Cecllla Alma[ose as 8C of 8lzal sLaLlng LhaL Lhe laLLer ls Lhe mosL
quallfled amongsL Lhe lndlvlduals lnvolved ln a comparaLlve sLudy of all Lhe Munlclpal 8udgeL Cfflcers of Lhe
rovlnce as she ls a CerLlfled ubllc AccounLanL. u8M undersecreLary, nazarlo CabuqulL, slgned Alma[ose's
appolnLmenL papers on Lhe basls of ulrecLor Abella's recommendaLlon.
- Covernor San !uan relLeraLed hls requesL for appolnLmenL noL knowlng LhaL CabuqulL already slgned Lhe
appolnLmenL papers. ulrecLor Calvez, Lhe successor of ulrecLor Abella, lnformed Cov. San !uan LhaL hls
recommendees dld noL meeL Lhe mlnlmum requlremenLs under Local 8udgeL Clrcular # 31 for Lhe 8C poslLlon
and requlred hlm Lo submlL aL leasL Lhree nomlnees.
- Cov. San !uan proLesLed Lhe appolnLmenL Lo Lhe u8M SecreLary and ln response, Lhe 8ureau of Legal and
LeglslaLlve Affalrs (8LLA) of u8M lssued a Memo rullng LhaL hls proLesL lsn'L merlLorlous slnce u8M valldly
exerclsed lLs prerogaLlve ln fllllng up Lhe conLesLed poslLlon slnce none meL Lhe prescrlbed requlremenLs from
among hls nomlnees.
- Cov. San !uan moved for reconslderaLlon buL lL was denled so he proLesLed agalnsL Lhe appolnLmenL Lo
Lhe Clvll Servlce Commlsslon (CSC) whlch agaln denled hls proLesL. Pence, he appealed Lo Lhe Supreme CourL
argulng LhaL Lhe CSC commlLLed grave abuse of dlscreLlon ln refuslng Lo allow Cov. San !uan Lo submlL new
nomlnees who could meeL Lhe requlred quallflcaLlons.

ISSUL:
- WheLher or noL Lhe u8M ls free Lo appolnL anyone ln Lhe evenL LhaL Lhe rovlnclal Covernor recommends
an unquallfled person.

kULING:
- no

kA1IC:
- 1he recommendlng power of Lhe rovlnclal Covernor ln L.C. 112 ls noL dlrecLory buL mandaLory pursuanL
Lo Lhe consLlLuLlonal and sLaLe pollcy of local auLonomy as enunclaLed ln ArLlcle ll, Sec. 23 and ArLlcle x SecLlons 2
and 3 of Lhe 1987 ConsLlLuLlon. 1hus, a mere admlnlsLraLlve lssuance (Local 8udgeL Clrcular # 31) by Lhe u8M
reservlng Lhe rlghL Lo flll-up any exlsLlng poslLlon ln case Lhe nomlnees of Lhe rovlnclal Covernor do noL meeL Lhe
requlred quallflcaLlons ls Lherefore ulLra-vlres. lf Lhe u8M SecreLary hounds all Lhe budgeLary powers and lgnores
Lhe rlghL of local governmenL unlLs Lo develop self-rellance and resoluLeness ln handllng Lhelr own funds, Lhe goal
of local auLonomy ls frusLraLed and seLback and all Lhe efforL for Lhe exerclse of local governmenLs of meanlngful
power slnce resldenL Mcklnley's lnsLrucLlons ln 7 Aprll 1900, Lo Lhe Second hlllpplne Commlsslon, Lo Lhe 1933
ConsLlLuLlon whlch dlsLlngulshed beLween resldenLlal conLrol and supervlslon, Lo 8.A. 2264 lncreaslng Lhe
auLonomy of local governmenLs, Lo 8.A. 8183, Lhe uecenLrallzaLlon Law, Lo Lhe 1973 ConsLlLuLlon, Lo 8.. 337, Llll
Lhe 1987 ConsLlLuLlon wlll be puL Lo naughL.
- 1he 8C synchronlzes hls/her work wlLh Lhe u8M and ensures proper admlnlsLraLlve flscal affalrs aL Lhe
local level. rovlnclal and munlclpal budgeLs are prepared aL Lhe local level and forwarded Lo Lhe naLlonal level
offlclals for revlew. Slnce Lhey are prepared by local offlclals who musL work wlLhln Lhe consLralnLs of Lhose
budgeLs, lL ls only flLLlng LhaL Lhere should be a genulne lnLerplay and a harmonlzaLlon of proposal for boLh Lhe
local and naLlonal offlclals and Lhus, Lhe nomlnaLlon and appolnLmenL process should lnvolve a sharlng of power
beLween Lhe Lwo levels of governmenL. AddlLlonally, Lhe appolnLmenL was aggravaLed by Lhe facL LhaL ulrecLor
Ak1 II

23

Calvez requlred Cov. San !uan Lo submlL aL leasL 3 oLher names afLer Lhe appolnLmenL of Alma[ose has already
been formallzed. Pence, lL was manlfesL LhaL Lhere was a compleLe dlsregard of Lhe local governmenL's prerogaLlve
and Lhe smug bellef LhaL Lhe u8M has absoluLe wlsdom, auLhorlLy and dlscreLlon.

Ganzon vs. CA (1991)

IAC1S:
Canzon was Lhe Lhen mayor of llollo ClLy. 10 admlnlsLraLlve cases were flled agalnsL hlm on grounds of mlsfeasance
of offlce, abuse of auLhorlLy, oppresslon, grave mlsconducL, eLc. llndlng probable cause for Lhe charges, Lhe
SecreLary of lnLerlor lssued several 60-day prevenLlve suspenslon orders agalnsL Canzon, posslbly reachlng 600
days of suspenslon. Canzon appealed Lhe lssue Lo Lhe CA whlch afflrmed Lhe suspenslon orders by Lhe SecreLary.
Canzon Lhen lnsLlLuLed an acLlon for prohlblLlon agalnsL Lhe SecreLary ln Lhe 81C of llollo ClLy where he succeeded
ln obLalnlng a wrlL of prellmlnary ln[uncLlon. Pe also lnsLlLuLed acLlons for prohlblLlon before Lhe CourL of Appeals
buL were boLh dlsmlssed. 1he Supreme CourL noneLheless lssued a Lemporary resLralnlng order en[olnlng Lhe
SecreLary from lmplemenLlng hls suspenslon orders. 1hus, Lhls peLlLlon for revlew wlLh Lhe argumenL LhaL LhaL Lhe
1987 ConsLlLuLlon does noL auLhorlze Lhe resldenL nor any of hls alLer ego, lncludlng Lhe respondenL SecreLary, ls
devold, ln any evenL, of any auLhorlLy Lo suspend and remove local offlclals as Lhe 1987 ConsLlLuLlon no longer
allows Lhe resldenL Lo exerclse sald power, and lnsLead lL supporLs local auLonomy and sLrengLhens Lhe same.
WhaL was glven by Lhe presenL ConsLlLuLlon was mere supervlsory power.

ISSUL:
WheLher or noL Lhe SecreLary of Local CovernmenL, as Lhe resldenL's alLer ego, can suspend and or remove local
offlclals.

nLLD:
?LS.
- noLwlLhsLandlng Lhe change ln Lhe ConsLlLuLlonal language, Lhe ConsLlLuLlon dld noL lnLend Lo
dlvesL Lhe leglslaLure of lLs rlghL, or Lhe resldenL of her prerogaLlve as conferred by exlsLlng leglslaLlon Lo provlde
admlnlsLraLlve sancLlon agalnsL local offlclals. AuLonomy does noL conLemplaLe maklng mlnl-sLaLes ouL of LCus,
and ls sub[ecL Lo Lhe guldance, Lhough noL conLrol, of Lhe leglslaLure, albelL Lhe leglslaLlve responslblllLy under Lhe
ConsLlLuLlon and as Lhe "supervlslon clause" lLself suggesL-ls Lo wean local governmenL unlLs from over-
dependence on Lhe cenLral governmenL. Local auLonomy ls noL lnsLanLly self-execuLlng, sub[ecL Lo Lhe passage of a
LCC, and oLher measures Lo reallze auLonomy aL Lhe local level. 1he deleLlon of "as may be provlded by law" ln Sec.
4, ArL. 10 of Lhe ConsLlLuLlon was meanL Lo sLress, sub sllenclo, Lhe ob[ecLlve of Lhe framers Lo sLrengLhen local
auLonomy by severlng congresslonal conLrol of lLs affalrs.
- Canzon: LhaL Lhe ConsLlLuLlon has lefL Lhe resldenL mere supervlsory powers, whlch supposedly
excludes Lhe power of lnvesLlgaLlon, and denled her conLrol, whlch allegedly embraces dlsclpllnary auLhorlLy.
- SC: Legally, "supervlslon" ls noL lncompaLlble wlLh dlsclpllnary auLhorlLy. Mondano v. Sllvosa held
LhaL:
- - "conLrol" - Lhe power of an offlcer Lo alLer or modlfy or nulllfy or seL aslde whaL a subordlnaLe
offlcer had done ln Lhe performance of hls duLles and Lo subsLlLuLe Lhe [udgmenL of Lhe former for LesL of Lhe laLLer
- - "supervlslon" - overseelng or Lhe power or auLhorlLy of an offlcer Lo see LhaL subordlnaLe
offlcers perform Lhelr duLles.
- Powever, "lnvesLlgaLlng" ls noL lnconslsLenL wlLh "overseelng", alLhough lL ls a lesser power Lhan
"alLerlng". revlous [urlsprudence dld noL caLegorlcally ban Lhe Chlef LxecuLlve from exerclslng acLs of dlsclpllnary
auLhorlLy because she dld noL exerclse conLrol powers, buL because no law allowed her Lo exerclse dlsclpllnary
auLhorlLy. Local governmenLs, under Lhe ConsLlLuLlon, are sub[ecL Lo regulaLlon, however llmlLed, and for no oLher
purpose Lhan preclsely, albelL paradoxlcally, Lo enhance self- governmenL.
- uecenLrallzaLlon means devoluLlon of naLlonal admlnlsLraLlon buL noL power Lo Lhe local levels.
- - uecenLrallzaLlon of admlnlsLraLlon - when Lhe cenLral governmenL delegaLes admlnlsLraLlve
powers Lo pollLlcal subdlvlslons Lo broaden Lhe base of governmenL power and Lo make local governmenLs "more
responslve and accounLable," and "ensure Lhelr fullesL developmenL as self-rellanL communlLles and make Lhem
Ak1 II

26

more effecLlve parLners ln Lhe pursulL of naLlonal developmenL and soclal progress." lL relleves Lhe cenLral
governmenL of Lhe burden of managlng local affalrs and enables lL Lo concenLraLe on naLlonal concerns. 1he
resldenL exerclses "general supervlslon" over Lhem, noL conLrol.
- - uecenLrallzaLlon of power - an abdlcaLlon of pollLlcal power ln Lhe favor of local governmenLs
unlLs declared Lo be auLonomous, whlch are free Lo charL Lhelr own desLlny and shape Lhelr fuLure wlLh mlnlmum
lnLervenLlon from cenLral auLhorlLles. lL amounLs Lo "self-lmmolaLlon," slnce Lhe auLonomous governmenL
becomes accounLable noL Lo Lhe cenLral auLhorlLles buL Lo lLs consLlLuency.
- Slnce Canzon ls faclng 10 admlnlsLraLlve charges, he ls faclng Lhe posslblllLy of 600 days of
suspenslon, ln Lhe evenL LhaL all 10 cases yleld prlma facle flndlngs. 1o make Mayor Canzon serve 600 days of
suspenslon ls Lo effecLlvely suspend hlm ouL of offlce.
- - A baslc assumpLlon of Lhe elecLoral process lmpllclL ln Lhe rlghL of suffrage LhaL Lhe people are
enLlLled Lo Lhe servlces of elecLlve offlclals of Lhelr cholce. lor mlsfeasance or malfeasance, Lhey could be
proceeded agalnsL admlnlsLraLlvely or crlmlnally. A prevenLlve suspenslon may be [usLlfled. lLs conLlnuance,
however, for an unreasonable lengLh of Llme ralses a due process quesLlon. lor even lf LhereafLer he were
acqulLLed, ln Lhe meanwhlle hls rlghL Lo hold offlce had been nulllfled. Clearly, Lhere would be ln such a case an
ln[usLlce suffered by hlm. nor ls he Lhe only vlcLlm. 1here ls ln[usLlce lnfllcLed llkewlse on Lhe people for havlng
been deprlved of hls servlces.
- 1he sole ob[ecLlve of a suspenslon ls slmply "Lo prevenL Lhe accused from hamperlng Lhe normal
cause of Lhe lnvesLlgaLlon wlLh hls lnfluence and auLhorlLy over posslble wlLnesses" or Lo keep hlm off "Lhe records
and oLher evldence. lL ls a means, and no more, Lo asslsL prosecuLors ln flrmlng up a case agalnsL an errlng local
offlclal. under Lhe LCC, lL can noL exceed 60 days. lL ls noL a penalLy, and lL ls only Lemporary.
- We are noL precludlng Lhe resldenL, Lhrough Lhe SecreLary of lnLerlor from exerclslng a legal
power, yeL we are of Lhe oplnlon LhaL Lhe SecreLary of lnLerlor ls exerclslng LhaL power oppresslvely, and needless
Lo say, wlLh a grave abuse of dlscreLlon.

Cord|||era 8road Coa||t|on vs. CCA (1990)

IAC1S:
PlsLorlcal AnLecedenLs
March 1, 1986: new eople's Army Lumbaya Company under ka-Ambo (lr. Conrado 8alweg, Svu) formed Lhe
Cordlllera eople's LlberaLlon Army (CLA)
urpose:
1. defend Lhe Cordlllera homeland and lLs people, and
2. Lo push for Cordlllera AuLonomy.
3. Also Lo esLabllsh Lhe Cordlllera AuLonomous SoclallsL SLaLe Lhrough a lederal 8epubllc of Lhe hlllpplnes

osL LuSA 1 8evoluLlon: resldenL Aqulno advocaLed naLlonal reconclllaLlon. She called on all revoluLlonary forces
for peace dlalogue. CLA heeded Lhe call for peace and reconclllaLlon.

Lxchange of leLLers beLween vlce resldenL Laurel and lr. Conrado 8alweg and serles of prellmlnary Lalks beLween
presldenLlal emlssary 8uLch Aqulno and members and leaders of Lhe Cordlllera 8odong AssoclaLlon (C8A), CLA
and Lhe MonLanosa naLlonal SolldarlLy were held (C8A ls a confederaLlon of Lrlbes LhaL had lLs rooLs ln Lhe Lrlbal
organlzaLlons ln Lhe cordllleras).

1he negoLlaLlons resulLed Lo a submlsslon of a poslLlon paper from C8A and CLA ouLllnlng Lhelr 26 speclflc
demands. 1hls was submlLLed Lo resldenL Aqulno on SepLember 13, 1986. lL conLalned Lhe followlng:

uemand no. 1: 8ecognlLlon by Lhe naLlonal governmenL of Lhe auLonomy of Lhe varlous eLhnollngulsLlc
groups ln Lhe Cordllleras.
uemand no. 4: lor Lhe naLlonal governmenL Lo guaranLee Lhe lndependence and freedom of Lhe
Cordlllera naLlon, ln preservlng, consolldaLlng and developlng Lhe soclallsL way of llfe and moral order lndlgenous
Lo lLs homelands.
Ak1 II

27

uemand no. 6: lor Lhe naLlonal governmenL Lo seL-up a lederal 8epubllc of Lhe hlllpplnes LhaL allows Lhe
exlsLence wlLhln Lhe framework of auLonomous and co-equal sLaLes, lncludlng a Cordlllera AuLonomous SoclallsL
SLaLe.

7 monLhs of peace Lalks ensued: ln 1986, Lhe Cordlllera 8road CoallLlon or C8C was founded. All of Lhose noL llnked
Lo C8A/CLA composed Lhe coallLlon. uurlng Lhls Llme, Lhe Cordlllera eople's Alllance was also formed.

!une 9, 1987: 1he resulL of Lhe peace Lalks and negoLlaLlons ls Lhe ln1L8lM CC8ulLLL8A 8LClCnAL
AuMlnl18A1lCn or lC8A. lL ls Lhe maln basls for Lhe lssuance of LC no. 220 by resldenL Aqulno.

C8C proLesLed. lL proposed lnsLead Lhe creaLlon of Cordlllera 8eglonal uevelopmenL Councll as Lhe lnLerlm reglonal
seL-up pendlng esLabllshmenL of an auLonomous reglon. 1hls proposal mlnorlLlzed Lhe CLA and C8A group. Pence,
C8A and CLA re[ecLed Lhe proposal.

Ambassador elaez and lr. 8alweg, as Chalrman of Lhe Cordlllera slgned Lhe !olnL AgreemenL. 8oLh worked
LogeLher ln drafLlng an LxecuLlve Crder Lo creaLe a preparaLory body LhaL could perform pollcy-maklng and
admlnlsLraLlve funcLlons and underLake consulLaLlons and sLudles leadlng Lo a drafL organlc acL of Lhe cordllleras.

ursuance hereLo, LC no. 220 was slgned by resldenL Aqulno (!uly 13, 1987) enLlLled, CreaLlng a Cordlllera
AdmlnlsLraLlve 8eglon, ApproprlaLlng lunds 1hereof and for oLher urpose." 1hls ls ln pursuanL Lo Sec. 6, ArL. xvlll
of Lhe ConsLlLuLlon, ln whlch Lhe resldenL has Lhe power Lo conLlnue Lo exerclse leglslaLlve powers unLll Lhe flrsL
Congress ls convened.

1he LxecuLlve Crder (no. 220) conLalned Lhe followlng:

Sec. 2. 1errlLorlal Coverage: Abra, 8engueL, lfugao, kallnga-Apayao, ML. rovlnce and charLered clLy of
8agulo.
Sec. 8. Cordlllera 8eglonal Assembly (C8A): pollcy-formulaLlng body conslsLlng of 230 represenLaLlves from
Lhe munlclpallLles and Lhe clLy of 8agulo, nCCs, and Lrlbes. 1he resldenL appolnLs Lhe head of Lhls body.
Sec. 9. Sesslons: once every year, 3 days sesslons.
Sec. 10. Cordlllera LxecuLlve 8oard (CL8): CL8 shall lmplemenL declslons of C8A. 1he resldenL appolnLs
29 members.
Sec. 11. LxecuLlve ulrecLor
Sec. 12. LxecuLlve CommlLLee
Sec. 13. Cordlllera 8odong AdmlnsLraLlon
Sec. 17. erlod of LxlsLence: lL shall exlsL unLll such Llme as Lhe auLonomous reglonal governmenL shall
have been esLabllshed and organlzed under an organlc acL passed by Congress ln accordance wlLh Sec. 18, ArL. x of
Lhe ConsLlLuLlon.

uurlng Lhe pendency of Lhls case, 8epubllc AcL 6766 enLlLled An AcL rovldlng for and Crganlc AcL for Lhe
Cordlllera AuLonomous 8eglon" was enacLed and slgned lnLo law. lL recognlzed Lhe CA8 esLabllshed by LC no. 220,
lLs offlces, and agencles.

lSSuL # 1:LC no. 220 pre-empLed Congress from lLs mandaLed Lask of enacLlng an organlc acL and creaLed an
auLonomous reglon ln Cordlllera. nC.

kA1IC:
a. 8eadlng Lhe law: only envlslons consolldaLlon and coordlnaLlon of Lhe dellvery of servlces of llne
deparLmenLs and agencles of Lhe naLlonal governmenL, as a sLep preparaLory Lo Lhe granL of auLonomy Lo
Cordllleras.
b. lL does noL creaLe Lhe auLonomous reglon:
1. only provldes for Lhe LranslLory measures
Ak1 II

28

2. lL prepares Lhe ground for auLonomy
c. 1he process of creaLlng Lhe AuLonomous 8eglon wlll Lake Llme and Lhe flrsL congress had noL yeL been
convened. 1he resldenL saw lL flL Lo address Lhe urgenL needs of Lhe Cordllleras.
d. SC can'L lnqulre lnLo Lhe wlsdom of Lhe resldenL. eLlLloner alleges LhaL LC no. 220 ls a caplLulaLlon Lo
CLA of lr. 8alweg.
e. lL ls noL an lnLerlm auLonomous reglon ln Lhe Cordllleras:
1. lL only creaLed an admlnlsLraLlve reglon wlLh Lhe sole ob[ecLlve of plannlng and lmplemenLlng
programs and servlces of Lhe naLlonal governmenL,
2. only consLlLuLe as an umbrella" LhaL brlngs LogeLher Lhe exlsLlng local governmenLs, agencles of
Lhe naLlonal CovernmenL, eLhnollngulsLlc groups/Lrlbes, and nCCs, ln a concerLed efforL Lo spur
developmenL, and
3. glve avallable funds for prlorlLy developmenL programs and pro[ecLs recommended by CA8.
f. 1here ls now 8A no. 6638 whlch creaLed Lhe Cordlllera 8eglonal ConsulLaLlve Commlsslon. ln shorL, Lhe
auLonomous reglon ln Lhe Cordllleras ls sLlll Lo be creaLed. 1herefore, LC 220 was noL a shorL-cuL Lo auLonomy.

lSSuL # 2: CollaLeral lssue - WhaL ls Lhe naLure of CA8 wheLher or noL lL ls a LerrlLorlal and pollLlcal subdlvlslon. uld
LC no. 220 creaLe a new LerrlLorlal and pollLlcal subdlvlslon. nC.

kA1IC:

a. CA8 ls noL a publlc corporaLlon or LerrlLorlal and pollLlcal subdlvlslon
lL has no separaLe [urldlcal enLlLy
lL has no power Lo sue and be sued, own and dlspose properLy, creaLe lLs own revenue (powers LhaL are
normally granLed Lo publlc corporaLlon)
lL ls llkened Lo resldenLlal uecree #1 of 1972 or Lhe lnLegraLed 8eorganlzaLlon lan of 1972 whlch
esLabllshed 12 reglons, wlLh deflnlLe reglonal cenLers and requlred deparLmenLs and agencles of Lhe LxecuLlve
8ranch of Lhe naLlonal governmenL Lo seL-up fleld offlces Lhereln
b. CA8 ls ln Lhe same genre as Lhe admlnlsLraLlve reglons creaLed under reorganlzaLlon plan of resldenL Marcos.
c. lL ls noLhlng buL a reglonal coordlnaLlng agency of Lhe naLlonal governmenL conslderlng Lhe conLrol and
supervlslon exerclsed by Lhe resldenL over Lhe CA8 and offlces creaLed under LC no. 220.
d. CA8 ls a more sophlsLlcaLed verslon of Lhe reglonal developmenL councll.

lSSuL # 3: CreaLlon of CA8 conLravened Lhe consLlLuLlonal guaranLee of local auLonomy for Lhe provlnces of Abra,
8engueL, lfugao, kallnga-Apayao, and ML. rovlnce and Lhe clLy of 8agulo. nC.

kA1IC:
a. 1here ls a mlsconcepLlon abouL Lhe concepL of local auLonomy
b. 1he consLlLuLlonal guaranLee of local auLonomy (ArL. x, Sec. 2) refers Lo admlnlsLraLlve auLonomy of LCus.
c. 1he cenLrallzaLlon of governmenLal auLhorlLy vs. creaLlon of AuLonomous 8eglons: auLonomous reglon
conLemplaLes Lhe granL of pollLlcal auLonomy and noL [usL admlnlsLraLlve auLonomy.
d. ollLlcal AuLonomy of auLonomous reglons: 1here ls esLabllshed an execuLlve deparLmenL, a leglslaLlve assembly
and speclal courLs wlLh personal, famlly and properLy law [urlsdlcLlon ln each of Lhe auLonomous reglons.
e. CA8 has noL dlmlnlshed Lhe local auLonomy.
f. ure speculaLlon and a resorL Lo probablllLles.

DISCSI1IVL:
L1l1lCnS A8L ulSMlSSLu lC8 LACk Cl ML8l1.

Concurr|ng Cp|n|on: I. Gut|errez Ir.
lssues have become mooL and academlc because Lhe Cordlllera 8eglonal ConsulLaLlve Commlsslon and Lhe
Cordlllera AuLonomous 8eglon have Laken over Lhe funcLlons of Lhe Cordlllera AdmlnlsLraLlve 8eglon.

Ak1 II

29

Magta[as vs. ryce ropert|es Corp, Inc. (1991)

IAC1S:
- 1he hlllpplne AmusemenL and Camlng CorporaLlon (ACCC8) ls a corporaLlon creaLed dlrecLly by
resldenLlal uecree 1869 Lo help cenLrallze and regulaLe all games of chance, lncludlng caslnos on land and sea
wlLhln Lhe LerrlLorlal [urlsdlcLlon of Lhe hlllpplnes (Lhe consLlLuLlonallLy of Lhe decree was susLalned ln 8asco v.
hlllpplne AmusemenLs and Cambllng CorporaLlon).
- Cagayan de Cro ClLy, llke oLher local pollLlcal subdlvlslons, ls empowered Lo enacL ordlnances for Lhe
purposes lndlcaLed ln Lhe Local CovernmenL Code. lL ls expressly vesLed wlLh Lhe pollce power under whaL ls
known as Lhe Ceneral Welfare Clause embodled ln SecLlon 16. lLs Sanggunlang anglungsod derlves lLs powers,
duLles and funcLlons under SecLlon 438 of sald Code.
- ln 1992, followlng lLs success ln several clLles, ACCC8 declded Lo expand lLs operaLlons Lo Cagayan de
Cro ClLy. 1o Lhls end, lL leased a porLlon of a bulldlng belonglng Lo ryce roperLles CorporaLlon lnc., renovaLed
and equlpped Lhe same, and prepared Lo lnauguraLe lLs caslno Lhere durlng Lhe ChrlsLmas season.
- 1he reacLlon of Lhe Sanggunlang anlungsod of Cagayan de Cro ClLy was swlfL and hosLlle. Cn 7 uecember
1992, lL enacLed Crdlnance 3333 (An Crdlnance rohlblLlng Lhe lssuance of buslness permlL and cancellng exlsLlng
buslness permlL Lo any esLabllshmenL for Lhe uslng and allowlng Lo be used lLs premlses or porLlon Lhereof for Lhe
operaLlon of Caslno). Cn 4 !anuary 1993, lL adopLed a sLerner Crdlnance 3373-93 (An Crdlnance prohlblLlng Lhe
operaLlon of Caslno and provldlng penalLy for vlolaLlon Lherefore).
- ryce assalled Lhe ordlnances before Lhe CourL of Appeals, where lL was [olned by ACCC8 as lnLervenor
and supplemenLal peLlLloner. 1he CourL found Lhe ordlnances lnvalld and lssued Lhe wrlL prayed for Lo prohlblL
Lhelr enforcemenL. 8econslderaLlon of Lhe declslon was denled on 13 !uly 1993. Cagayan de Cro ClLy and lLs mayor
flled a peLlLlon for revlew under 8ules of CourL wlLh Lhe Supreme CourL.

ISSUL:
WheLher Lhe Sanggunlang anlungsod of Cagayan de Cro can prohlblL Lhe esLabllshmenL of a caslno, or gambllng,
operaLed by ACCC8 Lhrough an ordlnance or resoluLlon.

nLLD:
no,
- 1he morallLy of gambllng ls noL [usLlclable lssue. Cambllng ls noL lllegal per se. Whlle lL ls generally
consldered lnlmlcal Lo Lhe lnLeresLs of Lhe people, Lhere ls noLhlng ln Lhe ConsLlLuLlon caLegorlcally proscrlblng or
penallzlng gambllng or, for LhaL maLLer, even menLlonlng lL aL all.
- lL ls lefL Lo Congress Lo deal wlLh Lhe acLlvlLy as lL sees flL. ln Lhe exerclse of lLs own dlscreLlon, Lhe
leglslaLure may prohlblL gambllng alLogeLher or allow lL wlLhouL llmlLaLlon or lL may prohlblL some forms of
gambllng and allow oLhers for whaLever reasons lL may conslder sufflclenL.
- lurLher, Lhere are Lwo klnds of gambllng, Lo wlL, Lhe lllegal and Lhose auLhorlzed by law. Legallzed
gambllng ls noL a modern concepL, lL ls probably as old as lllegal gambllng, lf noL lndeed more so. 1he suggesLlon
LhaL Lhe Local CovernmenL Code (LCC) auLhorlze Local CovernmenL unlLs (LCus) Lo prohlblL all klnds of gambllng
would erase Lhe dlsLlncLlon beLween Lhese Lwo forms of gambllng wlLhouL a clear lndlcaLlon LhaL Lhls ls Lhe wlll of
leglslaLure.
- Crdlnances should noL conLravene a sLaLuLe as munlclpal governmenLs are only agenLs of Lhe naLlonal
governmenL. Local counclls exerclse only delegaLed leglslaLlve powers conferred on Lhem by Congress as Lhe
naLlonal lawmaklng body. 1he delegaLe cannoL be superlor Lo Lhe prlnclpal or exerclse powers hlgher Lhan Lhose of
Lhe laLLer.

1au|e vs. Santos (1991)

IAC1S:
- 1he lederaLlon of AssoclaLlons of 8arangay Councll (lA8C) of CaLanduanes convened Lo elecL lLs offlcers.
- 1he elecLlon was Lo be supervlsed by Lhe 8oard of LlecLlon Supervlsors/ConsulLanLs composed of Lhe
Ak1 II

30

rovlnclal CovernmenL CperaLlon Cfflcer (CCC), Lhe rovlnclal 1reasurer, and Lhe rovlnclal LlecLlon Supervlsor.
- CuL of lLs 11 members, only 6 were ln aLLendance. When Lhe group declded Lo push Lhrough wlLh Lhe
elecLlon, Lhe rovlnclal 1reasurer and Lhe rovlnclal LlecLlon Supervlsor walked ouL.
- neverLheless, Lhe elecLlon pushed Lhrough wlLh Lhe CCC as presldlng offlcer.
- eLlLloner 8uperLo 1aule was elecLed resldenL.
- 8espondenL Leandro verceles, governor of CaLanduanes, senL a leLLer-proLesL Lo respondenL Luls SanLos,
who was Lhen SecreLary of Local CovernmenL (SecreLary"), seeklng Lhe nulllflcaLlon of Lhe elecLlon ln vlew of Lhe
lrregularlLles ln Lhe manner lL was conducLed.
- eLlLloner, ln hls commenL Lo Lhe leLLer-proLesL, denled Lhe allegaLlons of respondenL Cov. verceles and
requesLed LhaL he, as Lhe duly elecLed resldenL of Lhe lA8C ln CaLanduanes, be appolnLed as member of Lhe
Sanggunlang anlalawlgan of Lhe provlnce.
- 8espondenL SecreLary nulllfled Lhe elecLlon and ordered a new one Lo be conducLed.
- eLlLloner flled a moLlon for reconslderaLlon buL Lhe SecreLary denled lL.

ISSUL:
WCn Lhe respondenL SecreLary has [urlsdlcLlon Lo enLerLaln an elecLlon proLesL lnvolvlng Lhe elecLlon of Lhe
offlcers of Lhe lA8C.

ArgumenLs:
eLlLloner: lL ls Lhe CCMLLLC, noL Lhe SecreLary, whlch has [urlsdlcLlon over all conLesLs lnvolvlng elecLlve barangay
offlclals (ArL. lx-C, Sec. 2, 1987 ConsLlLuLlon)
8espondenL: 1he SecreLary has [urlsdlcLlon because Lhe case lnvolves a vlolaLlon of ueparLmenL of Local
CovernmenL Clrcular 89-09 , any vlolaLlon of whlch ls a ground for flllng a proLesL wlLh Lhe SecreLary.

nLLD]kA1IC:
nC. resldenLlal power over local governmenLs ls llmlLed by Lhe ConsLlLuLlon Lo Lhe exerclse of general supervlslon
Lo ensure LhaL local affalrs are admlnlsLered accordlng Lo law. 1he general supervlslon ls exerclsed by Lhe resldenL
Lhrough Lhe SecreLary of Local CovernmenL . ln admlnlsLraLlve law, supervlslon means overseelng or Lhe power or
auLhorlLy of an offlcer Lo see LhaL Lhe subordlnaLe offlcers perform Lhelr duLles. lf Lhe laLLer falls or neglecLs Lo
fulflll Lhem Lhe former may Lake such acLlon or sLep as prescrlbed by law Lo make Lhem perform Lhelr duLles.
ConLrol, on Lhe oLher hand, means Lhe power of an offlcer Lo alLer or modlfy or nulllfy or seL aslde whaL a
subordlnaLe offlcer had done ln Lhe performance of hls duLles and Lo subsLlLuLe Lhe [udgmenL of Lhe former for
LhaL of Lhe laLLer. lrom Lhe foregolng, Lhe SecreLary of Local CovernmenL has no [urlsdlcLlon Lo enLerLaln any
proLesL lnvolvlng Lhe elecLlon of offlcers of Lhe lA8C. 1o allow respondenL SecreLary Lo do so wlll ln effecL glve hlm
conLrol over local governmenL offlclals for lL wlll permlL hlm Lo lnLerfere ln a purely democraLlc and non-parLlsan
acLlvlLy almed aL sLrengLhenlng Lhe barangay as Lhe baslc componenL of local governmenLs so LhaL Lhe ulLlmaLe
goal of fullesL auLonomy may be achleved.

Cn Lhe oLher hand, Lhe conLenLlon of peLlLloners LhaL lL ls Lhe CCMLLLC whlch has [urlsdlcLlon over Lhe dlspuLe ls
also unLenable. 1he CCMLLLC exerclses only appellaLe [urlsdlcLlon over elecLlon conLesLs lnvolvlng elecLlve
barangay offlclals declded by Lhe MeLropollLan or Munlclpal 1rlal CourLs. 1he recourse of Lhe parLles ls Lo Lhe
ordlnary courLs.

8|nay vs. Dom|ngo (1991)

IAC1S:
eLlLloner MunlclpallLy of MakaLl, Lhrough lLs Councll, approved 8esoluLlon no. 60. 1hls resoluLlon alms Lo exLend
300 burlal asslsLance Lo poor, bereaved famllles, Lhe funds Lo be Laken ouL of Lhe unapproprlaLed avallable funds
ln Lhe munlclpal Lreasury. 1he MeLro Manlla Commlsslon approved 8es. no. 60.

1hereafLer, Lhe Munlclpal secreLary cerLlfled a dlsbursemenL of 400,000 for Lhe lmplemenLaLlon of Lhe program.
Powever, Commlsslon on AudlL dlsapproved sald resoluLlon and dlsbursemenL of funds. 1he reasons lL gave were:
Ak1 II

31

1)Lhe resoluLlon has no connecLlon Lo alleged publlc safeLy, general welfare, safeLy, eLc. of Lhe lnhablLanLs of
MakaLl, 2)lL wlll only beneflL a few lndlvlduals. ubllc funds should only be used for publlc purposes. 1he lssue ls
WCn 8es. no. 60, reenacLed as 8es. no. 243, ls a valld exerclse of Lhe pollce power under Lhe general welfare
clause.

nLLD]kA1IC:
?es. ollce power ls a governmenLal funcLlon, an lnherenL aLLrlbuLe of soverelgnLy - lnherenL ln Lhe sLaLe buL noL
ln munlclpal corporaLlons. 8efore a munlclpal corporaLlon may exerclse such power, Lhere musL be a valld
delegaLlon of such power by Lhe leglslaLure. Munlclpal corporaLlons exerclse pollce power under Lhe general
welfare clause. under Sec. 7 of 8 337, every local governmenL unlL shall exerclse Lhe powers expressly granLed,
Lhose necessarlly lmplled Lherefrom, as well as necessary and proper for governance such as Lo promoLe healLh
and safeLy, enhance prosperlLy, lmprove morals, and malnLaln peace and order ln Lhe LCu, and preserve Lhe
comforL and convenlence of Lhe lnhablLanLs Lhereln." ollce power ls Lhe power Lo prescrlbe regulaLlons Lo
promoLe Lhe healLh, morals, peace, educaLlon, good order or safeLy and general welfare of Lhe people. lL ls Lhe
mosL essenLlal, lnslsLenL, and llllmlLable of powers. 1he pollce power of a munlclpal corporaLlon ls broad, and has
been sald Lo be commensuraLe wlLh, buL noL Lo exceed, Lhe duLy Lo provlde for Lhe real needs of Lhe people ln
Lhelr healLh, safeLy, comforL, and convenlence as conslsLenLly as may be wlLh prlvaLe rlghLs. lL exLends Lo all Lhe
greaL publlc needs, and, ln a broad sense lncludes all leglslaLlon and almosL every funcLlon of Lhe munlclpal
governmenL. 1hus, lL ls lnadvlsable Lo frame any deflnlLlon whlch shall absoluLely lndlcaLe Lhe llmlLs of pollce
power. ubllc purpose ls noL unconsLlLuLlonal merely because lL lncldenLally beneflLs a llmlLed number of persons.
1he care for Lhe poor ls generally recognlzed as a publlc duLy. 1he supporL for Lhe poor has long been an accepLed
exerclse of pollce power ln Lhe promoLlon of Lhe common good. 1here ls no vlolaLlon of Lhe equal proLecLlon
clause ln classlfylng paupers as sub[ecL of leglslaLlon because Lhe classlflcaLlon ls reasonable. reclous Lo Lhe hearLs
of our leglslaLors, down Lo our local councllors, ls Lhe welfare of Lhe paupers. 1hus, sLaLuLes have been passed
glvlng rlghLs and beneflLs Lo Lhe dlsabled, emanclpaLlng Lhe LenanL-farmer from Lhe bondage of Lhe soll, houslng
Lhe urban poor, eLc.
8es. no. 60 of MakaLl ls a paragon of Lhe conLlnulng program of our governmenL Lowards soclal [usLlce.

C|ty Government of uezon C|ty v. Lr|cta (1983)

IAC1S:
SecLlon 9 of ClLy Crdlnance no. 6118, S-64 enLlLled "C8ulnAnCL 8LCuLA1lnC 1PL LS1A8LlSPMLn1,
MAln1LnAnCL Anu CL8A1lCn Cl 8lvA1L MLMC8lAL 1?L CLML1L8? C8 8u8lAL C8Cunu Wl1Pln 1PL
!u8lSulC1lCn Cl CuLZCn Cl1? Anu 8CvlulnC LnAL1lLS lC8 1PL vlCLA1lCn 1PL8LCl" provldes:

"AL leasL slx (6) percenL of Lhe LoLal area of Lhe memorlal park cemeLery shall be seL aslde for charlLy
burlal of deceased persons who are paupers and have been resldenLs of Cuezon ClLy for aL leasL 3 years prlor Lo
Lhelr deaLh, Lo be deLermlned by compeLenL ClLy AuLhorlLles. 1he area so deslgnaLed shall lmmedlaLely be
developed and should be open for operaLlon noL laLer Lhan slx monLhs from Lhe daLe of approval of Lhe
appllcaLlon."

lor seven years, Lhls provlslon has noL been enforced unLll Lhe Cuezon ClLy Councll passed Lhe resoluLlon
requesLlng Lhe ClLy Lnglneer of Cuezon ClLy Lo sLop and furLher selllng and/or LransacLlon of memorlal park loLs ln
CC where Lhe owners Lhereof falled Lo donaLe Lhe requlred 6 for pauper burlal. ursuanL Lo such resoluLlon, Lhe
ClLy Lnglneer noLlfled Plmlayang lllplno lnc ln wrlLlng LhaL Sec 9 of Crdlnance 6118 would be enforced.

8ecause of Lhls, Plmlayang lllplno flled Lhe Cll aL CC a peLlLlon for declaraLory rellef, prohlblLlon and mandamus
wlLh prellmlnary ln[uncLlon seeklng Lo annul SecLlon 9 of Lhe ordlnance for belng conLrary Lo Lhe ConsLlLuLlon, Lhe
CC CharLer, Local AuLonomy AcL and 8evlsed AdmlnlsLraLlve Code.

1he lower courL declared sald provlslon null and vold, Lhus Lhe ClLy Councll of CC flled Lhe peLlLlon for revlew
before Lhe SC.
Ak1 II

32

1he CC Councll argue LhaL Lhe Laklng of Lhe respondenL's properLy ls a valld and reasonable exerclse of pollce
power and LhaL Lhe land ls Laken for a publlc use as lL ls lnLended for Lhe burlal ground of paupers. 1hey furLher
argue LhaL Lhe Cuezon ClLy Councll ls auLhorlzed under lLs charLer, ln Lhe exerclse of local pollce power, " Lo make
such furLher ordlnances and resoluLlons noL repugnanL Lo law as may be necessary Lo carry lnLo effecL and
dlscharge Lhe powers and duLles conferred by Lhls AcL and such as lL shall deem necessary and proper Lo provlde
for Lhe healLh and safeLy, promoLe Lhe prosperlLy, lmprove Lhe morals, peace, good order, comforL and
convenlence of Lhe clLy and Lhe lnhablLanLs Lhereof, and for Lhe proLecLlon of properLy Lhereln."

Cn Lhe oLher hand, Plmlayang lllplno, lnc. conLends LhaL Lhe Laklng or conflscaLlon of properLy ls obvlous because
Lhe quesLloned ordlnance permanenLly resLrlcLs Lhe use of Lhe properLy such LhaL lL cannoL be used for any
reasonable purpose and deprlves Lhe owner of all beneflclal use of hls properLy. 1he respondenL also sLresses LhaL
Lhe general welfare clause ls noL avallable as a source of power for Lhe Laklng of Lhe properLy ln Lhls case because
lL refers Lo "Lhe power of promoLlng Lhe publlc welfare by resLralnlng and regulaLlng Lhe use of llberLy and
properLy." 1he respondenL polnLs ouL LhaL lf an owner ls deprlved of hls properLy ouLrlghL under Lhe SLaLe's pollce
power, Lhe properLy ls generally noL Laken for publlc use buL ls urgenLly and summarlly desLroyed ln order Lo
promoLe Lhe general welfare.

ISSULS:
1. uoes CC councll have Lhe auLhorlLy Lo lssue creaLe Lhe provlslon ln quesLlon?
2. ls SecLlon 9 of Crdlnance no. 6118, S-64 ls a valld exerclse of pollce power?

nLLD:
1. nC.
1here ls noLhlng ln Lhe CharLer of CuesLlon ClLy LhaL would [usLlfy provlslon ln quesLlon. lL cannoL be [usLlfled under
Lhe power granLed Lo Cuezon ClLy Lo Lax, flx Lhe llcense fee, and regulaLe such oLher buslness, Lrades, and
occupaLlon as may be esLabllshed or pracLlced ln Lhe ClLy because Lhe power Lo regulaLe does noL lnclude Lhe
power Lo prohlblL.

nelLher ls Lhe provlslon [usLlfled under 8.A. 337 auLhorlzlng Lhe clLy councll Lo 'prohlblL Lhe burlal of Lhe dead
wlLhln Lhe cenLer of populaLlon of Lhe clLy and provlde for Lhelr burlal ln such proper place and ln such manner as
Lhe councll may deLermlne, sub[ecL Lo Lhe provlslons of Lhe general law regulaLlng burlal grounds and cemeLerles
and governlng funerals and dlsposal of Lhe dead' because such provlslon does noL auLhorlze conflscaLlon of
properLy Lo serve as burlal grounds.

2. nC.
1he pollce power of Cuezon ClLy provldes:
"1o make such furLher ordlnance and regulaLlons noL repugnanL Lo law as may be necessary Lo carry lnLo
effecL and dlscharge Lhe powers and duLles conferred by Lhls acL and such as lL shall deem necessary and
proper Lo provlde for Lhe healLh and safeLy, promoLe, Lhe prosperlLy, lmprove Lhe morals, peace, good
order, comforL and convenlence of Lhe clLy and Lhe lnhablLanLs Lhereof, and for Lhe proLecLlon of properLy
Lhereln, and enforce obedlence LhereLo wlLh such lawful flnes or penalLles as Lhe ClLy Councll may
prescrlbe under Lhe provlslons of subsecLlon ([[) of Lhls secLlon."

ln a long llne of cases, pollce power ls usually exerclsed ln Lhe form of mere regulaLlon or resLrlcLlon ln Lhe use of
llberLy or properLy for Lhe promoLlon of Lhe general welfare. lL does noL lnvolve Lhe Laklng or conflscaLlon of
properLy wlLh Lhe excepLlon of a few cases where Lhere ls a necesslLy Lo conflscaLe prlvaLe properLy ln order Lo
desLroy lL for Lhe purpose of proLecLlng Lhe peace and order and of promoLlng Lhe general welfare as for lnsLance,
Lhe conflscaLlon of an lllegally possessed arLlcle, such as oplum and flrearms. 1he provlslon ln quesLlon ls noL
merely regulaLlon buL an ouLrlghL conflscaLlon. lL deprlves a person of lLs properLy wlLhouL compensaLlon.

1he provlslon can nelLher be susLalned on Lhe ground of presumpLlon of valldlLy of a duly enacLed leglslaLlon.
Ak1 II

33

1here ls no reasonable relaLlon beLween Lhe seLLlng aslde of aL leasL slx (6) percenL of Lhe LoLal area of an prlvaLe
cemeLerles for charlLy burlal grounds of deceased paupers and Lhe promoLlon of healLh, morals, good order,
safeLy, or Lhe general welfare of Lhe people. 1he ordlnance ls acLually a Laklng wlLhouL compensaLlon of a cerLaln
area from a prlvaLe cemeLery Lo beneflL paupers who are charges of Lhe munlclpal corporaLlon. lnsLead of bulldlng
or malnLalnlng a publlc cemeLery for Lhls purpose, Lhe clLy passes Lhe burden Lo prlvaLe cemeLerles. Slmllarly,
when Lhe Local CovernmenL Code, 8aLas ambansa 8lg. 337 provldes ln SecLlon 177 (q) LhaL a Sanggunlang
panlungsod may "provlde for Lhe burlal of Lhe dead ln such place and ln such manner as prescrlbed by law or
ordlnance" lL slmply auLhorlzes Lhe clLy Lo provlde lLs own clLy owned land or Lo buy or exproprlaLe prlvaLe
properLles Lo consLrucL publlc cemeLerles.

1he quesLloned ordlnance ls dlfferenL from laws and regulaLlons requlrlng owners of subdlvlslons Lo seL aslde
cerLaln areas for sLreeLs, parks, playgrounds, and oLher publlc faclllLles from Lhe land Lhey sell Lo buyers of
subdlvlslon loLs. 1he necesslLles of publlc safeLy, healLh, and convenlence are very clear from sald requlremenLs
whlch are lnLended Lo lnsure Lhe developmenL of communlLles wlLh conduclve and wholesome envlronmenLs and
Lhe beneflclarles of Lhe regulaLlon, ln Lurn, are made Lo pay by Lhe subdlvlslon developer when lndlvldual loLs are
sold

V|||anueva vs. Castaneda (1987)

IAC1S:
- 1he munlclpal councll of San lernando adopLed 8esoluLlon no. 218 auLhorlzlng 24 members of lernandlno
unlLed MerchanLs and 1raders AssoclaLlon Lo consLrucL permanenL sLalls and sell ln Lhe sub[ecL properLy wlLhln Lhe
vlclnlLy of Lhe publlc markeL.
- 8esoluLlon 218 was proLesLed. Clvll Case no. 2040 was flled. Cll lssued wrlL of prellmlnary ln[uncLlon Lo prevenL
Lhe consLrucLlon of sLalls.
- Whlle Lhe case was pendlng, Lhe munlclpal councll adopLed 8esoluLlon no. 29 whlch declared Lhe sub[ecL area as
a parklng place and as Lhe publlc plaza of Lhe munlclpallLy.
- Cll declded Clvll Case no. 2040. lL held LhaL Lhe sub[ecL land was publlc ln naLure and was beyond Lhe commerce
of man. 1he prellmlnary ln[uncLlon was made permanenL.
- vendors (peLlLloners) were noL evlcLed. 1hey were asslgned speclflc areas and were made Lo pay dally fees Lo Lhe
munlclpal governmenL for use of Lhe area.
- Cn !anuary 12, 1982 (more Lhan 13 years afLer Cll declslon), Lhe AssoclaLlon of Concerned ClLlzens and
Consumers of San lernando flled a peLlLlon for Lhe lmmedlaLe lmplemenLaLlon of 8esoluLlon no. 29.
- AfLer lnvesLlgaLlon was conducLed by Lhe munlclpal aLLorney, Macallno, offlcer-ln-charge of Lhe offlce of Lhe
mayor, lssued a resoluLlon orderlng Lhe demollLlon of Lhe sLalls ln Lhe sub[ecL area.
- eLlLloners flled a peLlLlon for prohlblLlon wlLh Lhe Cll (Clvll Case no. 6470). 1he [udge denled Lhe peLlLlon and
Lhe M8. A peLlLlon for cerLlorarl was flled wlLh Lhe SC.

ISSUL:
WheLher or noL Lhe vendors had Lhe rlghL Lo occupy and make use of Lhe properLy.

ArgumenLs of parLles:
- eLlLloners argued LhaL Lhey had rlghL Lo occupy Lhe area by vlrLue of lease conLracLs enLered lnLo wlLh Lhe
munlclpal governmenL, and laLer, by vlrLue of space allocaLlons made ln Lhelr favor for whlch Lhey pald dally fees.
- 1he munlclpallLy denled LhaL Lhey enLered lnLo sald agreemenLs. lL argued LhaL even lf Lhe leases were valld, Lhe
same could be LermlnaLed aL wlll because renL was collecLed dally.

nLLD:
1he peLlLloners had no rlghL Lo occupy Lhe properLy.
- 1he properLy was declared a publlc plaza, a promenade for publlc use. lL was ouLslde Lhe commerce of man and
cannoL be Lhe sub[ecL of a lease conLracL.
- SLrucLures on Lhe properLy consLlLuLe a nulsance sub[ecL Lo abaLemenL.
Ak1 II

34

- Macallno (ClC) dld noL acL wlLhouL auLhorlLy when he lssued Lhe order for Lhe demollLlon of sLalls. Pe was
seeklng Lo enforce Lhe declslon ln Clvll Case no. 2040.
- Ceneral welfare clause -> auLhorlzes Lhe munlclpal councll Lo enacL such ordlnances and make such regulaLlons,
noL repugnanL Lo law, as may be necessary Lo carry lnLo effecL and dlscharge Lhe powers and duLles conferred
upon lL by law and such as shall seem necessary and proper Lo provlde for Lhe healLh and safeLy , promoLe Lhe
prosperlLy, lmprove Lhe morals, peace, good order, comforL and convenlence of Lhe munlclpallLy and Lhe
lnhablLanLs Lhereof, and for Lhe proLecLlon of properLy Lhereln.
- AuLhorlLy was valldly exerclsed. Slnce Lhe occupaLlon of Lhe place by Lhe vendors, lL had deLerloraLed Lo Lhe
pre[udlce of Lhe communlLy. SLalls, belng made of flammable maLerlals, became a poLenLlal flre Lrap, access Lo and
from Lhe markeL was obsLrucLed, Lhere were aggravaLed healLh and sanlLaLlon problems, flow of Lrafflc was
obsLrucLed, sLallholders ln Lhe publlc markeL were deprlved of a slzable volume of buslness, Lhe people were
deprlved of Lhe use of Lhe place as a publlc plaza.
- Lven lf Lhe lease was valld, 8esoluLlon no. 29 could have LermlnaLed lL. ollce power can be acLlvaLed aL any Llme
Lo change or even annul conLracLs for Lhe promoLlon and proLecLlon of general welfare.
- 1he Cll [udge dld noL commlL grave abuse of dlscreLlon ln denylng Lhe peLlLlon for prohlblLlon.

eLlLlon dlsmlssed.

kepub||c vs. Gonza|ez (1991)

IAC1S:
- ln response Lo several resoluLlons passed by Lhe Munlclpal Councll of Malabon as regards Lhe lncreaslng
vehlcular Lrafflc and congesLlon along l. Sevllla 8oulevard, res. 8amon Magsaysay lssued roc. no. 144, whlch
wlLhdrew LoLs 1 and 2 ln 1anong, Malabon from sale and seLLlemenL as Lhey wlll be used ln Lhe sLreeL wldenlng
and Lhe puLLlng up of parklng spaces near Lhe proposed markeL and slaughLerhouse of Malabon.

- 8espondenLs ollcarplo Conzales and AugusLo !osue consLrucLed Lhelr own mlxed resldenLlal and
commerclal bulldlngs ln Lhe lnLerlor parL of LoL 2. 8ecause of Lhls, e[ecLmenL proceedlngs were lnsLlLuLed agalnsL
Lhem by Malabon. ln Lhelr defense, respondenLs argued LhaL: a.) Lhe loLs ln quesLlon were covered by a lease
appllcaLlon and subsequenLly by a mlscellaneous sales appllcaLlon, b.) Lhey were glven permlLs by Malabon Lo puL
commerclal lmprovemenLs on sald loLs, and LhaL c.) LoLs 1 and 2 are noL really needed ln Lhe road wldenlng
pro[ecL.

- uesplLe sald defenses, Lhe lower courL ruled ln favor of respondenLs' evlcLlon. 1hls declslon was reversed
by Lhe CourL of Appeals rullng LhaL Lhe reservaLlon of Lhe sald loLs for parklng spaces ls noL requlred by publlc
lnLeresL as mandaLed by Sec. 84 of Lhe ubllc Land AcL, nor ls lL for Lhe beneflL of Lhe publlc because only Lhose few
who own cars can use Lhe parklng loL. Accordlng Lo Lhe CA, Lhe llmlLed use Lo speclflc persons dlsquallfles Lhe
reservaLlon as one whlch beneflLs Lhe general publlc. 8ecause of Lhls adverse declslon, Lhe republlc flled lLs appeal
ln Lhe Supreme CourL.

ISSULS:
a. WheLher or noL roc. no. 144 ls valld.
b. WheLher or noL respondenLs musL be evlcLed.

nLLD]kA1IC:
- ?es, roc. no. 144 ls valld. Sald proclamaLlon was lssued ln response Lo Lhe deLermlnaLlon of Lhe
Munlclpal Councll of Malabon LhaL Lhe exLreme Lrafflc and congesLlon problem ln l. Sevllla 8oulevard has already
caused recurrlng problems of greaL dlscomforL and lnconvenlence Lo Lhe publlc. 1hey also foresaw LhaL Lhls Lrafflc
problem wlll worsen upon compleLlon of Lhe proposed markeL and slaughLerhouse ln LhaL area.

- 1he Lrafflc problem ls noL an lsolaLed lssue. lL mlghL have deleLerlous effecLs whlch mlghL LranslaLe Lo
LhreaLs Lo Lhe healLh, welfare, safeLy and convenlence of Lhe people. As such, roc. no. 144 ls noL of llmlLed
Ak1 II

33

beneflL only Lo Lhose who drlve cars. lLs poslLlve effecLs wlll splll over Lo Lhe general publlc wlll be dlspensed from
such greaL dlscomforL and lnconvenlence broughL by Lhe exLreme Lrafflc and congesLlon ln Lhe area.

?es, Lhe respondenLs musL be evlcLed. As Lo Lhe second lssue, Lhe CourL ruled LhaL Lhe mlscellaneous sales
appllcaLlons of respondenLs were never approved Lhus Lhey have noLhlng Lo hold on Lo as regards Lhelr ownershlp
of Lhe sald loLs. Moreover, Lhe munlclpal permlLs lssued Lo Lhem by Malabon cannoL also save Lhem as Lhe same
were lssued by Malabon ln excess of lLs auLhorlLy. lL ls Lhe ulrecLor of Lands and noL Lhe local governmenL unlL
lnvolved who has execuLlve conLrol as regards Lhe lease, sale or any oLher form of concesslon or dlsposlLlon of
lands under Lhe publlc domaln.

ata||nghug vs. CA (1994)

IAC1S:
1he Sanggunlang anlungsod of uavao ClLy enacLed Crdlnance no. 363, serles of 1982 (Lxpanded Zonlng
Crdlnance of uavao ClLy), SecLlon 8 of whlch requlred LhaL funeral parlors shall be esLabllshed noL less Lhan 30
meLers from any resldenLlal sLrucLures, churches and oLher lnsLlLuLlonal bulldlngs."

upon prlor approval and cerLlflcaLlon of zonlng compllance, aLallnghug was lssued a bulldlng permlL for Lhe
consLrucLlon of a funeral parlor ln Lhe name and sLyle of MeLropollLan luneral arlor aL Cabagulo Avenue, Agdao,
uavao ClLy. 1hereafLer, aLallnghug commenced Lhe consLrucLlon of hls funeral parlor.

AcLlng on Lhe complalnL of several resldenLs of 8arangay Agdao, uavao ClLy LhaL Lhe consLrucLlon of aLallnghug's
funeral parlor vlolaLed Crdlnance no. 363, slnce lL was allegedly slLuaLed wlLhln a 30-meLer radlus from Lhe lglesla
nl krlsLo Chapel and several resldenLlal sLrucLures, Lhe Sanggunlang anlungsod conducLed an lnvesLlgaLlon and
found LhaL Lhe nearesL resldenLlal sLrucLure, owned by Wllfred 1epooL ls only 8 lnches Lo Lhe souLh. 8uL,
aLallnghug conLlnued Lo consLrucL hls funeral parlor.

ConsequenLly, prlvaLe respondenLs flled a case for Lhe declaraLlon of nulllLy of a bulldlng permlL wlLh prellmlnary
prohlblLory and mandaLory ln[uncLlon and/or resLralnlng order wlLh Lhe Lrlal courL.

1C: dlsmlssed. AfLer conducLlng lLs own ocular lnspecLlon, lL found LhaL:
1. Lhe resldenLlal bulldlng of Crlblllo and lglesla nl krlsLo chapel are 63.23 meLers and 33.93 meLers away,
respecLlvely, from Lhe funeral parlor.
2. alLhough Lhe resldenLlal bulldlng owned by Mr. 1epooL ls ad[acenL Lo Lhe funeral parlor (separaLed only by a
concreLe fence), sald resldenLlal bulldlng ls belng renLed by Mr. AslaLen, who acLually devoLes lL Lo hls laundry
buslness wlLh machlnery Lhereon.

CA: reversed and annulled aLallnghug's bulldlng permlL on Lhe ground LhaL Lhe funeral parlor was wlLhln Lhe 30-
meLer radlus from Mr. 1epooL's bulldlng. AlLhough Mr. 1eepoL's bulldlng was used by hls lessee for laundry
buslness, lL was a resldenLlal loL as reflecLed ln Lhe Lax declaraLlon, Lhus pavlng Crdlnance no. 363 applles.

ISSUL:
WheLher or noL peLlLloner's operaLlon of a funeral home consLlLuLes permlsslble use wlLhln a parLlcular dlsLrlcL or
zone ln uavao ClLy.

nLLD:
?LS.
1he LesLlmony of ClLy Councllor vergara shows LhaL Mr. 1epooL's bulldlng was used for a dual purpose boLh as a
dwelllng and as a place where a laundry buslness was conducLed. 8uL whlle lLs commerclal aspecL has been
esLabllshed by Lhe presence of machlnerles and laundry paraphernalla, lLs use as a resldence, oLher Lhan belng
declared for LaxaLlon purposes as such, was noL fully subsLanLlaLed.

Ak1 II

36

A Lax declaraLlon ls noL concluslve of Lhe naLure of Lhe properLy for zonlng purposes. A properLy may have been
declared by lLs owner as resldenLlal for real esLaLe LaxaLlon purposes buL lL may well be wlLhln a commerclal zone.
A dlscrepancy may Lhus exlsL ln Lhe deLermlnaLlon of Lhe naLure of properLy for real esLaLe LaxaLlon purposes vls-a-
vls Lhe deLermlnaLlon of a properLy for zonlng purposes. A Lax declaraLlon only enables Lhe assessor Lo ldenLlfy Lhe
same for assessmenL levels. ln facL, a Lax declaraLlon does noL blnd a provlnclal/clLy assessor, for under Sec. 22 of
Lhe 8eal LsLaLe 1ax Code, appralsal and assessmenL are based on Lhe acLual use lrrespecLlve of "any prevlous
assessmenL or Laxpayer's valuaLlon Lhereon," whlch ls based on a Laxpayer's declaraLlon. ln facL, a plece of land
declared by a Laxpayer as resldenLlal may be assessed by Lhe provlnclal or clLy assessor as commerclal because lLs
acLual use ls commerclal.

1he flndlng LhaL Mr. 1epooL's bulldlng ls commerclal ls sLrengLhened by Lhe Sanggunlang anlungsod's declaraLlon
of Lhe quesLloned area as commerclal or C-2 under Lhe same ordlnance. ConsequenLly, even lf 1epooL's bulldlng
was declared for LaxaLlon purposes as resldenLlal, once a local governmenL has reclasslfled an area as commerclal,
LhaL deLermlnaLlon for zonlng purposes musL prevall. Whlle Lhe commerclal characLer of Lhe quesLloned vlclnlLy
has been declared Lhru Lhe ordlnance, prlvaLe respondenLs falled Lo subsLanLlaLe Lhelr clalm LhaL Cabagulo Avenue,
where Lhe funeral parlor was consLrucLed, was sLlll a resldenLlal zone. unquesLlonably, Lhe operaLlon of a funeral
parlor consLlLuLes a "commerclal purpose".

1he declaraLlon of Lhe sald area as a commerclal zone Lhru a munlclpal ordlnance ls an exerclse of pollce power Lo
promoLe Lhe good order and general welfare of Lhe people ln Lhe locallLy. Corollary LhereLo, Lhe sLaLe, ln order Lo
promoLe Lhe general welfare, may lnLerfere wlLh personal llberLy, wlLh properLy, and wlLh buslness and
occupaLlons. 1hus, persons may be sub[ecLed Lo cerLaln klnds of resLralnLs and burdens ln order Lo secure Lhe
general welfare of Lhe sLaLe and Lo Lhls fundamenLal alm of governmenL, Lhe rlghLs of Lhe lndlvldual may be
subordlnaLed. 1he ordlnance whlch regulaLes Lhe locaLlon of funeral homes has been adopLed as parL of
comprehenslve zonlng plans for Lhe orderly developmenL of Lhe area covered Lhereunder.

CA declslon ls reversed. 1C declslon ls relnsLaLed.

Ampatuan vs. uno (2011)

IAC1S:
Cn 24 nov. 2009, Lhe day afLer Lhe Magulndanao Massacre, Lhen res. Arroyo lssued roclamaLlon 1946, placlng
Lhe rovlnces of Magulndanao and SulLan kudaraL and Lhe ClLy of CoLabaLo under a sLaLe of emergency." She
dlrecLed Lhe Al and Lhe n Lo underLake such measures as may be allowed by Lhe ConsLlLuLlon and by law Lo
prevenL and suppress all lncldenLs of lawless vlolence" ln Lhe named places. 1hree days laLer, she also lssued AC
273 Lransferrlng" supervlslon of Lhe A8MM from Lhe Cfflce of Lhe resldenL Lo Lhe ulLC. She subsequenLly lssued
AC 273-A, whlch amended Lhe former AC (Lhe Lerm Lransfer" used ln AC 273 was amended Lo delegaLe",
referrlng Lo Lhe supervlslon of Lhe A8MM by Lhe ulLC).

L1l1lCnL8S' CCn1Ln1lCn: 1he resldenL's proclamaLlon and orders encroached on Lhe A8MM's auLonomy as
Lhese lssuances empowered Lhe ulLC SecreLary Lo Lake over A8MM's operaLlons and Lo selze Lhe reglonal
governmenL's powers, ln vlolaLlon of Lhe prlnclple of local auLonomy under 8A 9034 (Lhe Lxpanded A8MM AcL)
and Lhe ConsLlLuLlon.

ISSUL:
WheLher roclamaLlon 1946 and ACs 273 and 273-A vlolaLe Lhe prlnclple of local auLonomy under Sec. 16 ArL. x of
Lhe ConsLlLuLlon and Sec. 1 ArL. v of 8A 9034

nLLD:
nC. 1he ulLC SecreLary dld noL Lake over conLrol of Lhe powers of Lhe A8MM. AfLer law enforcemenL agenLs Look
Lhe respondenL Covernor of A8MM lnLo cusLody for alleged compllclLy ln Lhe Magulndanao Massacre, Lhe A8MM
Ak1 II

37

vlce-Covernor, peLlLloner Adlong, assumed Lhe vacaLed posL on 10 uec. 2009 pursuanL Lo Lhe rule on successlon
found ln Sec. 12 ArL.vll of 8A 9034. ln Lurn, AcLlng Covernor Adlong named Lhe Lhen Speaker of Lhe A8MM
8eglonal Assembly, peLlLloner Sahall-Cenerale, AcLlng A8MM vlce-Covernor. 1he ulLC SecreLary Lherefore dld noL
Lake over Lhe admlnlsLraLlon or Lhe operaLlons of Lhe A8MM.

3. IN1LkGCVLkNMLN1AL kLLA1ICNS: 8ook I, Chapters 3,4, kA 7160

4. CWLkS CI MUNICIAL CCkCkA1ICNS]LCCAL GCVLkNMLN1S
123 !"+04$ !"#$%

8|nay v. Dom|ngo (1991) - supra

Chua nuat vs. CA (1991)

IAC1S:
n 14 SepLember 1982 - Manuel uy and Sons, lnc., one of Lhe respondenLs, requesLed Manlla ClLy Lnglneer
and 8ulldlng Cfflclal Manuel del 8osarlo (ClLy Lnglneer") Lo condemn Lhe dllapldaLed sLrucLures on 12 loLs
occupled by peLlLloners.
n Cn 17 november 1982 - 8aslng on lnspecLlon 8eporLs showlng LhaL Lhe bulldlngs suffered from sLrucLural
deLerloraLlon of as much as 80, Lhe ClLy Lnglneer lssued Lo hereln eLlLloners Lhe requesLed CondemnaLlon
Crders. 1he CondemnaLlon Crder also sLaLed LhaL lL was:
(1) sub[ecL Lo Lhe conflrmaLlon of Lhe Mayor as requlred by SecLlon 276 of Lhe CompllaLlon of Crdlnances of
Lhe ClLy of Manlla, and
(2) nC1 an order Lo demollsh as Lhe flndlngs of Lhe ClLy Lnglneer are sLlll sub[ecL Lo Lhe approval of Lhe
Mayor. 1he orders were based on lnspecLlon reporLs made by Lhe Cfflce of Lhe ClLy Lnglneer whlch showed LhaL
Lhe bulldlngs suffered from sLrucLural deLerloraLlon of as much as 80. 1he Mayor conflrmed Lhe condemnaLlon
orders.
n 22 lebruary 1983 - or more Lhan 3 monLhs afLer Lhe lssuance of Lhe CondemnaLlon Crders, Lhe
eLlLloners formally proLesLed agalnsL Lhe CondemnaLlon Crders.
n 26 Aprll 1983 - one of Lhe peLlLloners was lnformed LhaL Lhe ClLy Lnglneer lssued a demollLlon order wlLh
respecL Lo Lhe sLrucLure she was occupylng. ClLy Mayor 8amon 8agaLslng would laLer conflrm all Lhe uemollLlon
Crders lssued by Lhe ClLy Lnglneer.
n Cn 2 May 1983, peLlLloners flled Lhe lnsLanL eLlLlon for rohlblLlon, wlLh rellmlnary ln[uncLlon and/or
8esLralnlng Crder, agalnsL Lhe ClLy Mayor, ClLy Lnglneer, who ls also Lhe 8ulldlng Cfflclal, and Manuel uy and Sons
lnc.
n 1he CourL granLed Lhe 18C and requlred respondenLs Lo commenL.
n 8espondenLs prayed LhaL Lhe peLlLlon be dlsmlssed, conslderlng LhaL:
(1) Lhe power Lo condemn bulldlngs and sLrucLures ln Lhe ClLy of Manlla falls wlLhln Lhe excluslve domaln of
Lhe ClLy Lnglneer pursuanL Lo SecLlons 273 and 276 of lLs CompllaLlon of Crdlnances (also 8evlsed Crdlnances
1600), and
(2) Lhe power Lo condemn and remove bulldlngs and sLrucLures ls an exerclse of Lhe pollce power granLed Lhe
ClLy of Manlla Lo promoLe publlc safeLy.

ISSUL:
(1) WCn Lhe power Lo condemn bulldlngs and sLrucLures ln Lhe ClLy of Manlla falls wlLhln Lhe excluslve
[urlsdlcLlon of Lhe ClLy Lnglneer, who ls aL Lhe same Llme Lhe 8ulldlng Cfflclals,
(2) WCn Lhe ClLy Mayor and ClLy Lnglneer commlLLed grave abuse of dlscreLlon ln Lhe exerclse of Lhelr such
powers.

Ak1 II

38

nLLD:
(1) ?LS. 1he CompllaLlon of Crdlnances of Lhe ClLy of Manlla and Lhe naLlonal 8ulldlng Code (u 1096),
provlde Lhe auLhorlLy of Lhe 8ulldlng Cfflclals, wlLh respecL Lo dangerous bulldlngs. 8espondenL ClLy Lnglneer and
8ulldlng Cfflclal can, Lherefore, valldly lssue Lhe quesLloned condemnaLlon and demollLlon orders. lL ls also clear
from Lhe CompllaLlon of Crdlnances of Lhe ClLy of Manlla LhaL Lhe Mayor has Lhe power Lo conflrm or deny Lhe
acLlon Laken by Lhe 8ulldlng Cfflclals, wlLh respecL Lo Lhe dangerous or rulnous bulldlngs.

(2) nC. 1Lhe orders were made only afLer Lhorough ocular lnspecLlons were conducLed by Lhe ClLy's 8ulldlng
lnspecLors. 1he respondenL Mayor's acL of approvlng Lhe condemnaLlon orders was llkewlse done ln accordance
wlLh law. eLlLloners were glven Lhe opporLunlLy Lo proLesL Lhe condemnaLlon buL only dld so long afLer Lhe lapse
of Lhe perlod (7 days) allowed Lhem under Lhe CompllaLlon of Crdlnances.

1ate| v. Mun|c|pa||ty of V|rac (1992)

IAC1S:
- Mar. 18, 1966 - 8esldenLs of 8rgy. SLa. Llena flled a complalnL wlLh Lhe munlclpal councll agalnsL Lhe
dlsLurbance caused by Lhe operaLlon of an abaca ballng machlne lnslde Lhe warehouse of 1aLel, whlch ls slLuaLed ln
Lhe sald barangay.
- ulsLurbance: smoke, obnoxlous odor and dusL emlLLed by Lhe machlne - affecLed peace and LranqulllLy
of Lhe nelghborhood.
- A commlLLee appolnLed by Lhe munlclpal councll lnvesLlgaLe Lhe maLLer furLher.
- CCMMl11LL llnulnCS: warehouse locaLed ln a crowded nelghborhood. Crowded roads. So much so LhaL
any flre LhaL could sLarL from Lhe warehouse (where Lhe abaca producLs are locaLed) wlll easlly spread Lo Lhe
nelghborlng houses-danger Lo llfe and properLy.
- Apr. 22, 1966 - Munclpal Councll lssued 8eso. 29, declarlng 1aLel's warehouse a nulsance pursuanL Lo ArL.
694 of Lhe Clvll Code.
- 1aLel flled a peLlLlon for prellmlnary ln[uncLlon Lo prevenL councll from lmplemenL such a resoluLlon.

CCn1Ln1lCn c/o vl8AC | 8eso. 29 ls [usLlfled as Lhere has been a vlolaLlon by 1aLel agalnsL Crdlnance 13 (Serles of
1932), prohlblLlng Lhe consLrucLlon of warehouses whereln lnflammable maLerlals are sLored where such
warehouses are locaLed aL a dlsLance of 200 meLers from a block of houses. 1he purpose ls Lo avold Lhe loss of llfe
and properLy ln case of flre whlch ls one of Lhe prlmordlal obllgaLlon of Lhe governmenL.

CCn1Ln1lCn c/o 1A1LL | Crdlnance unconsLlLuLlonal. conLrary Lo Lhe due process and equal proLecLlon clause of
Lhe ConsLlLuLlon and null and vold for noL havlng been passed ln accordance wlLh law.

ISSUL:
WCn Crdlnance 13 consLlLuLlonal?

nLLD]kA1IC:
Crdlnance ls consLlLuLlonal.
- valld exerclse of pollce power. uCC18lnL | lL ls a seLLled prlnclple of law LhaL munlclpal corporaLlons are
agencles of Lhe SLaLe for Lhe promoLlon and malnLenance of local self-governmenL and as such are endowed wlLh
Lhe pollce powers ln order Lo effecLlvely accompllsh and carry ouL Lhe declared ob[ecLs of Lhelr creaLlon. AuMln
CCuL, Ceneral Welfare Clause: Lo carry lnLo effecL and dlscharge Lhe powers and duLles conferred upon lL by law
and such as shall seem necessary and proper Lo provlde for Lhe healLh and safeLy, promoLe Lhe prosperlLy, lmprove
Lhe morals, peace, good order, comforL and convenlence
- Crdlnance was valld. 8equlslLes: 1) noL ln conLravenLlon wlLh law, 2) noL unfalr and oppresslve, 3) noL
parLlal or dlscrlmlnaLory, 4) noL prohlblL buL regulaLe Lrade, 3) general and conslsLenL wlLh publlc pollcy, and 6) noL
unreasonable.

Ak1 II

39

8ayan v. Lrm|ta (2006) : ower of Mayor Lo lssue permlLs for rallles, 8 880

IAC1S:
A serles of rallles and demonsLraLlons were conducLed ln Manlla ClLy from SepLember Lo CcLober 2003. eLlLloners
8ayan eL al., !ess uel rado eL al., and kllusang Mayo uno (kMu) eL al. parLlclpaLed ln Lhese rallles whlch were
allegedly vlolenLly dlspersed due Lo Lhe fallure Lo secure permlLs from Lhe Cfflce of Lhe Mayor. Such permlLs are
requlred Lo be obLalned under 8aLas ambansa (8..) 880 whlch sLaLes,

Sec. 4. ermlL when requlred and when noL requlred. - A wrlLLen permlL shall be requlred for any person or
persons Lo organlze and hold a publlc assembly ln a publlc place. Powever, no permlL shall be requlred lf Lhe
publlc assembly shall be done or made ln a freedom park duly esLabllshed by law or ordlnance or ln prlvaLe
properLy, ln whlch case only Lhe consenL of Lhe owner or Lhe one enLlLled Lo lLs legal possesslon ls requlred,
or ln Lhe campus of a governmenL-owned and operaLed educaLlonal lnsLlLuLlon whlch shall be sub[ecL Lo Lhe
rules and regulaLlons of sald educaLlonal lnsLlLuLlon. ollLlcal meeLlngs or rallles held durlng any elecLlon
campalgn perlod as provlded for by law are noL covered by Lhls AcL.

x x x

Sec. 12. ulspersal of publlc assembly wlLhouL permlL. - When Lhe publlc assembly ls held wlLhouL a permlL
where a permlL ls requlred, Lhe sald publlc assembly may be peacefully dlspersed.

AddlLlonally, LxecuLlve SecreLary Lduardo LrmlLa sLaLed ln an earller ress 8elease LhaL Lhe rule of CallbraLed
reempLlve 8esponse (C8) wlll be observed ln lleu of maxlmum Lolerance under 8.. 880.

eLlLloners alleged LhaL 8.. 880 or some porLlons Lhereof and Lhe C8 vlolaLe Lhe rlghL of Lhe people Lo peaceably
assemble and Lo peLlLlon Lhe governmenL for redress of grlevances.

8espondenLs counLer-alleged LhaL 8.. 880 only regulaLes Lhe Llme, manner and place of Lhe publlc assembly
sub[ecL Lo Lhe recognlzed clear and presenL danger" sLandard. lor hls parL, Manlla ClLy Mayor LlLo ALlenza alleged
LhaL lndependenL of 8.. 880, Lhe Local CovernmenL Code glves hlm Lhe power Lo deny permlLs based on Lhe clear
and presenL danger" sLandard. Pe asserLed LhaL hls denlal of Lhe permlL was pursuanL Lo Lhls sLandard slnce Lhere
was a clamor Lo sLop rallles LhaL dlsrupL Lhe economy and Lo proLecL Lhe llves of oLher people.

ISSULS:
1. Won under Lhe Local CovernmenL Code mayors have Lhe power Lo deny an appllcaLlon for permlL Lo rally?
2. Won Lhe power Lo granL or deny permlL glven Lo mayors under 8.. 880 ls unconsLlLuLlonal?

nLLD:
1. 1he Supreme CourL dld noL conslder Lhls lssue slnce Lhe parLles dld noL pursue Lhls.
2. nC. ClLlng rlmlclas v. lugoso, Lhe Supreme CourL reafflrmed Lhe prlmacy of freedom of speech and Lo assembly
and peLlLlon over comforL and convenlence ln Lhe use of sLreeLs and parks. Powever, Lhe Supreme CourL also
relLeraLed Lhe quallflcaLlon made ln 8eyes v. 8agaLslng LhaL whlle Lhe freedoms of speech, expresslon, of Lhe press,
Lo peaceably assemble and Lo peLlLlon Lhe governmenL for redress rank hlgh among Lhe consLlLuLlonal values, sLlll
Lhey can be regulaLed by Lhe pollce power of Lhe sLaLe whlch ls exerclsed for Lhe promoLlon of healLh, morals,
peace, educaLlon, good order or safeLy, and general welfare of Lhe people.

8ecognlzlng Lhls quallflcaLlon ln 8agaLslng, Lhe Supreme CourL held LhaL Lhe sLandards provlded ln 8agaLslng for
Lhe valld exerclse of Lhls pollce power was falLhfully adopLed ln 8.. 880. 1hus, Lhe no permlL, no rally" pollcy ls
consLlLuLlonal.
Ak1 II

40

1he exerclse by Lhe mayor of Lhe power Lo granL or deny permlL based on Lhe sLandards under Lhe law ls Lherefore,
also, consLlLuLlonal.

Integrated 8ar of the h|||pp|nes v. At|enza (2010)

IAC1S:
l8 flled wlLh Lhe Cfflce of Lhe ClLy Mayor of Manlla an appllcaLlon for a permlL Lo rally aL Lhe fooL of Mendlola
8rldge. 1he mayor lssued a permlL allowlng Lhe l8 Lo sLage a rally on glven daLe buL lndlcaLed Lhereln laza
Mlranda as Lhe venue, lnsLead of Mendlola 8rldge. 1he rally pushed Lhrough aL Mendlola 8rldge. A crlmlnal acLlon
was LhereafLer lnsLlLuLed agalnsL Cadlz for vlolaLlng Lhe ubllc Assembly AcL ln sLaglng a rally aL a venue noL
lndlcaLed ln Lhe permlL.

nLLD:
1he Supreme CourL held LhaL ln modlfylng Lhe permlL ouLrlghL, respondenL Mayor gravely abused hls dlscreLlon
when he dld noL lmmedlaLely lnform Lhe l8 who should have been heard flrsL on Lhe maLLer of hls percelved
lmmlnenL and grave danger of a subsLanLlve evll LhaL may warranL Lhe changlng of Lhe venue. 1he opporLunlLy Lo
be heard precedes Lhe acLlon on Lhe permlL, slnce Lhe appllcanL may dlrecLly go Lo courL afLer an unfavorable
acLlon on Lhe permlL. 8espondenL mayor falled Lo lndlcaLe how he had arrlved aL modlfylng Lhe Lerms of Lhe
permlL agalnsL Lhe sLandard of a clear and presenL danger LesL whlch ls an lndlspensable condlLlon Lo such
modlflcaLlon. noLhlng ln Lhe lssued permlL adverLs Lo an lmmlnenL and grave danger of a subsLanLlve evll, whlch
blank" denlal or modlflcaLlon would, when granLed lmprlmaLur as Lhe appellaLe courL would have lL, render
lllusory any [udlclal scruLlny Lhereof.

Wh|te L|ght v. C|ty of Man||a (2009)

IAC1S:
ClLy of Manlla, ln Lhe exerclse of pollce power, enacLed an ordlnance enLlLled An ordlnance rohlblLlng ShorL-1lme
Admlsslon, ShorL-1lme Admlsslon 8aLes, and Wash-up 8aLe Schemes ln PoLels, MoLels, lnns, Lodglng Pouses,
enslon Pouses, and Slmllar LsLabllshmenLs ln Lhe ClLy of Manlla". CperaLors of drlve-ln hoLels and moLels
challenges Lhe ordlnance for belng unconsLlLuLlonal alleglng LhaL lL vlolaLes Lhe rlghL Lo prlvacy and Lhe freedom of
movemenL, lL ls an lnvalld exerclse of pollce power, and lL ls an unreasonable and oppresslve lnLerference ln Lhelr
buslness.

ISSUL:
WCn Lhe ordlnance ls unconsLlLuLlonal

nLLD:
?es. lor an ordlnance Lo be a leglLlmaLe exerclse of pollce power, (1) lL musL appear LhaL Lhe lnLeresLs of Lhe publlc
generally, as dlsLlngulshed from Lhose of a parLlcular class, requlre an lnLerference wlLh prlvaLe rlghLs and Lhe
means musL be reasonably necessary for Lhe accompllshmenL of Lhe purpose and noL unduly oppresslve of prlvaLe
rlghLs. (2) lL musL also be evldenL LhaL no oLher alLernaLlve for Lhe accompllshmenL of Lhe purpose less lnLruslve of
prlvaLe rlghLs can work. (3) a reasonable relaLlon musL exlsL beLween Lhe purposes of Lhe measure and Lhe means
employed for lLs accompllshmenL

We cannoL dlscounL oLher leglLlmaLe acLlvlLles whlch Lhe Crdlnance would proscrlbe or lmpalr. 1here are very
leglLlmaLe uses for a wash raLe or renLlng Lhe room ouL for more Lhan Lwlce a day. 1he behavlor whlch Lhe
Crdlnance seeks Lo curLall ls ln facL already prohlblLed and could ln facL be dlmlnlshed slmply by applylng exlsLlng
laws. Less lnLruslve measures such as curblng Lhe prollferaLlon of prosLlLuLes and drug dealers Lhrough acLlve
pollce work would be more effecLlve ln easlng Lhe slLuaLlon. 1he ordlnance ls an arblLrary and whlmslcal lnLruslon
lnLo Lhe rlghLs of Lhe esLabllshmenLs as well as Lhelr paLrons. 1he Crdlnance needlessly resLralns Lhe operaLlon of
Ak1 II

41

Lhe buslnesses of Lhe peLlLloners as well as resLrlcLlng Lhe rlghLs of Lhelr paLrons wlLhouL sufflclenL [usLlflcaLlon.

125 !"#$% "' 6*7*60")8 +"4*+ 6*7$, *)9 %$*+ .%".$%6: 6*7
;"4*+ <*7*60")

8asco v. h|| Amusement and Gam|ng Corp. (1991)

IAC1S:
eLlLloners assall Lhe valldlLy of u 1869, Lhe ACCC8 CharLer on Lhe followlng grounds:
1sL: Cambllng ls generally prohlblLed, and Lhe ACCC8 CharLer leglLlmlzes lL,
2nd: SecLlon 2, aragraph 2 of hLe CharLer exempLlng ACCC8 from all oLher Laxes and ln lleu Lhereof lmposes a
3 franchlse fee, consLlLuLes a walver of hLe rlghL of Lhe clLy of Manlla Lo Lax (l.e. lmpose llcense fees and oLher
levles) ACCC8 and/ or gambllng,
3rd: Llkewlse, Lhls vlolaLes Lhe local auLonomy clause of Lhe consLlLuLlon, ArLlcle x, SecLlon 3,
4Lh: lL vlolaLes Lhe equal proLecLlon clause of Lhe consLlLuLlon, whlle mosL forms of gambllng are lllegal, Lhose done
by ACCC8 are legal,
3Lh: lL ls vlolaLlve of Lhe governmenL sLand agalnsL monopolles,
6Lh: lL vlolaLes SecLlons 11 (ersonallLy ulgnlLy) 12 (lamlly) and 13 (8ole of ?ouLh) of ArLlcle ll, SecLlon 13 (Soclal
!usLlce) of ArLlcle xlll and SecLlon 2 (LducaLlonal values) of ArLlcle xlv of Lhe 1987 ConsLlLuLlon

nLLD:
u 1869, ACCC8 CharLer ls valld.

kA1IC:
WhaL ls seLLled ls LhaL Lhe maLLer of regulaLlng, Laxlng or oLherwlse deallng wlLh gambllng ls a SLaLe concern and
hence, lL ls Lhe sole prerogaLlve of Lhe SLaLe Lo reLaln lL or delegaLe lL Lo local governmenLs.

As gambllng ls usually an offense agalnsL Lhe SLaLe, leglslaLlve granL or express charLer power ls generally necessary
Lo empower Lhe local corporaLlon Lo deal wlLh Lhe sub[ecL. . . .

1sL: 8egardlng Cambllng -

(a.) u 1869 was enacLed Lo regulaLe and cenLrallze games of chance,
(b.) 1he duLy Lo regulaLe and cenLrallze games of chance ls parL of Lhe pollce power of Lhe SLaLe, whlch ACCC8
accompllshes,
Cambllng, ln all lLs forms, ls generally prohlblLed, unless allowed by law. 8uL Lhe prohlblLlon of gambllng does noL
mean LhaL Lhe governmenL can noL regulaLe lL ln Lhe exerclse of lLs pollce power, whereln Lhe sLaLe has Lhe
auLhorlLy Lo enacL leglslaLlon LhaL may lnLerfere wlLh personal llberLy or properLy ln order Lo promoLe Lhe general
welfare. 1he !udlclary does noL seLLle pollcy lssues whlch are wlLhln Lhe domaln of Lhe pollLlcal branches of
governmenL and Lhe people Lhemselves as Lhe reposlLory of all sLaLe power.
(c.) ACCC8 ls Lhe 3rd largesL source of governmenL revenue, earnlng 3.438 ln 1989.

2nd: 8egardlng ACCC8's exempLlon from Laxes
(a.) Accordlng Lo Lhe declslon, Local CovernmenL unlLs have no lnherenL power Lo Lax,
1he "power Lo Lax" granLed Lo L.C.u.s by Lhelr charLer musL yleld Lo a leglslaLlve acL whlch ls superlor (naLlonal
leglslaLlon) havlng been passed upon by Lhe sLaLe lLself whlch has Lhe "lnherenL power Lo Lax."
(b.) 1he CharLer of Lhe ClLy CovernmenL of Manlla ls sub[ecL Lo conLrol by Congress. Congress can granL Lhe ClLy Lhe
power Lo Lax, can provlde for exempLlons and even Lake back Lhe power.
(c.) 1he ClLy of Manlla's power Lo lmpose llcense fees on gambllng, has long been revoked. As early as 1973, Lhe
power of local governmenLs Lo regulaLe gambllng Lhru Lhe granL of "franchlse, llcenses or permlLs" was wlLhdrawn
Ak1 II

42

by .u. no. 771 and was vesLed excluslvely on Lhe agcor.
(d.) Local CovernmenLs have no power Lo Lax lnsLrumenLallLles of Lhe governmenL. ACCC8 ls an lnsLrumenLallLy
of Lhe naLlonal governmenL wlLh lLs own charLer. 1he docLrlne of supremacy of naLlonal governmenL over local
governmenL was applled.

3rd: 8egardlng Local AuLonomy
1he exerclse by local governmenLs of Lhe power Lo Lax ls sub[ecL Lo llmlLaLlons LhaL may be esLabllshed by
Congress. Congress may amend, repeal or revoke such powers.
ACCC8 CharLer consLlLuLes an exempLlon Lo Lhe power of local governmenL Lo Lax. A Local CovernmenL unlL ls a
pollLlcal subdlvlslon, lnLra-soverelgn subdlvlslon wlLhln one soverelgn naLlon and musL yleld Lo Lhe soverelgn.

4Lh: 8egardlng Lhe Lqual roLecLlon Clause:
1he peLlLlon was noL clear as Lo how Lhe ACCC8 CharLer vlolaLed Lhe equal proLecLlon clause.
1he mere facL LhaL some gambllng acLlvlLles llke cockflghLlng (u 449) horse raclng (8A 306 as amended by 8A
983), sweepsLakes, loLLerles and races (8A 1169 as amended by 8 42) are legallzed under cerLaln condlLlons, whlle
oLhers are prohlblLed, does noL render Lhe appllcable laws, u. 1869 for one, unconsLlLuLlonal.
1he clause does noL preclude classlflcaLlon of lndlvlduals who may be accorded dlfferenL LreaLmenL under Lhe law
as long as Lhe classlflcaLlon ls noL unreasonable or arblLrary.

3Lh: 8egardlng Lhe CovernmenL SLand agalnsL Monopolles:
Lvery law has ln lLs favor Lhe presumpLlon of consLlLuLlonallLy. lor u 1869 Lo be nulllfled, lL musL be shown LhaL
Lhere ls a clear and unequlvocal breach of Lhe ConsLlLuLlon, noL merely a doubLful and equlvocal one. ln oLher
words, Lhe grounds for nulllLy musL be clear and beyond reasonable doubL.
Monopolles are noL necessarlly prohlblLed by Lhe ConsLlLuLlon. 1he sLaLe musL sLlll declde wheLher publlc lnLeresL
demands LhaL monopolles be regulaLed or prohlblLed. Agaln, Lhls ls a maLLer of pollcy for Lhe LeglslaLure Lo declde.

6Lh: 8egardlng SecLlons 11 (ersonallLy ulgnlLy) 12 (lamlly) and 13 (8ole of ?ouLh) of ArLlcle ll, SecLlon 13 (Soclal
!usLlce) of ArLlcle xlll and SecLlon 2 (LducaLlonal values) of ArLlcle xlv of Lhe 1987 ConsLlLuLlon:
lL should be noLed LhaL Lhese are merely sLaLemenLs of prlnclples and, pollcles. 1hey are noL self-execuLlng,
meanlng a law should be passed by Congress Lo clearly deflne and effecLuaLe such prlnclples.

DISCSI1ICN:
eLlLlon ls dlsmlssed.

h|| etro|eum Corp vs. Mun. of |||||a, k|za| (1991)

IAC1S:
C ls engaged ln Lhe manufacLure of lubrlcaLed oll basesLock whlch ls a peLroleum producL, wlLh lLs reflnery planL
slLuaLed aL Malaya, llllla, 8lzal. lL owns and malnLalns an oll reflnery lncludlng 49 sLorage Lanks for lLs peLroleum
producLs. under SecLlon 142 of Lhe nl8C of 1939, manufacLured olls and oLher fuels are sub[ecL Lo speclflc Lax.

Cn !une 28, 1973, u 231 (Local 1ax Code) was lssued enacLed. SecLlons 19 and 19 (a) Lhereof provlde LhaL Lhe
munlclpallLy may lmpose Laxes on buslness, excepL on Lhose for whlch flxed Laxes are provlded on manufacLurers,
lmporLers or producers of any arLlcle of commerce of whaLever klnd or naLure, lncludlng brewers, dlsLlllers,
recLlflers, repackers, and compounders of llquors, dlsLllled splrlLs and/or wlnes ln accordance wlLh Lhe schedule
llsLed Lhereln.

1he SecreLary of llnance lssued rovlnclal Clrcular no. 26-73 dlrecLlng all provlnclal, clLy and munlclpal Lreasurers
Lo refraln from collecLlng any local Lax lmposed ln old or new Lax ordlnances ln Lhe buslness of manufacLurlng,
wholesallng, reLalllng, or deallng ln peLroleum producLs sub[ecL Lo Lhe speclflc Lax under Lhe nl8C.

rovlnclal Clrcular no. 26 A-73 was also lssued lnsLrucLlng all clLy Lreasurers Lo refraln from collecLlng any local Lax
Ak1 II

43

lmposed ln Lax ordlnances enacLed before or afLer Lhe effecLlvlLy of Lhe Local 1ax Code, on Lhe buslnesses of
manufacLurlng, wholesallng, reLalllng, or deallng ln, peLroleum producLs sub[ecL Lo Lhe speclflc Lax under Lhe nl8C.

MunlclpallLy of llllla, 8lzal enacLed Munlclpal 1ax Crdlnance no. 1, S-1974 oLherwlse known as "1he llllla 1ax
Code of 1974". SecLlons 9 and 10 of Lhe sald ordlnance lmposed a Lax on buslness, excepL for Lhose for whlch flxed
Laxes are provlded ln Lhe Local 1ax Code on manufacLurers, lmporLers, or producers of any arLlcle of commerce of
whaLever klnd or naLure, lncludlng brewers, dlsLlllers, recLlflers, repackers, and compounders of llquors, dlsLllled
splrlLs and/or wlnes ln accordance wlLh Lhe schedule found ln Lhe Local 1ax Code, as well as mayor's permlL,
sanlLary lnspecLlon fee and sLorage permlL fee for flammable, combusLlble or exploslve subsLances. SecLlon 139 of
Lhe dlspuLed ordlnance lmposed surcharges and lnLeresLs on unpald Laxes, fees or charges.

Cn March 30, 1974, u 426 was lssued amendlng provlslons of u 231 buL reLalnlng SecLlons 19 and 19(a) [LhaL
munlclpallLles may lmpose Laxes on buslness]. 1hereafLer, .u. 436 was promulgaLed lncreaslng Lhe speclflc Lax on
lubrlcaLlng olls, gasollne, bunker fuel oll, dlesel fuel oll and oLher slmllar peLroleum producLs levled under SecLlons
142, 144 and 143 of Lhe nl8C, and granLlng provlnces, clLles and munlclpallLles cerLaln shares ln Lhe speclflc Lax on
such producLs ln lleu of local Laxes lmposed on peLroleum producLs.

Munlclpal 1ax Crdlnance no. 1 was noL lmplemenLed and/or enforced because of lLs havlng been suspended ln
vlew of rovlnclal Clrcular nos. 26-73 and 26 A-73. rovlnclal Clrcular no. 6-77 was also lssued dlrecLlng all clLy and
munlclpal Lreasurers Lo refraln from collecLlng sLorage fee on flammable or combusLlble maLerlals lmposed under
local Lax ordlnance. Cn !une 3, 1977, u 1138 or Lhe nl8C of 1977 was enacLed, SecLlon 133 of whlch speclflcally
lmposes speclflc Lax on reflned and manufacLured mlneral olls and moLor fuels.

Lnforclng Lhe provlslons of Lhe ordlnance, Lhe respondenL flled a complalnL agalnsL C for Lhe collecLlon of Lhe
buslness Lax from 1979 Lo 1986, sLorage permlL fees from 1973 Lo 1986, mayor's permlL and sanlLary lnspecLlon
fees from 1973 Lo 1984. C, however, have already pald Lhe lasL-named fees sLarLlng 1983. 1he 81C rendered a
declslon agalnsL peLlLloner.

ISSUL:
WCn C ls sLlll llable Lo pay Lax on buslness and sLorage fees, conslderlng rovlnclal Clrcular no. 6-77, and
mayor's permlL and sanlLary lnspecLlon fee based on Munlclpal Crdlnance no. 1

nLLD:
C ls llable Lo pay buslness Laxes buL lL ls noL llable Lo pay sLorage fees

C presenLed Lhe followlng conLenLlons:

(a) rovlnclal Clrcular no. 26-73 declared as conLrary Lo naLlonal economlc pollcy Lhe lmposlLlon of local Laxes on
Lhe manufacLure of peLroleum producLs as Lhey are already sub[ecL Lo speclflc Lax under Lhe nl8C,
(b) lL covers noL only old Lax ordlnances buL new ones, as well as Lhose whlch may be enacLed ln Lhe fuLure,
(c) boLh rovlnclal Clrculars 26-73 and 26 A-73 are sLlll effecLlve and unLll revoked, any efforL on Lhe parL of Lhe
respondenL Lo collecL Lhe suspended Lax on buslness from Lhe peLlLloner would be lllegal and unauLhorlzed, and
(d) SecLlon 2 of u. 436 prohlblLs Lhe lmposlLlon of local Laxes on peLroleum producLs.

C no. 26-73 and C no. 26 A-73 suspended Lhe effecLlvlLy of local Lax ordlnances lmposlng a Lax on buslness
under SecLlon 19 (a) of Lhe Local 1ax Code, wlLh regard Lo manufacLurers, reLallers, wholesalers or dealers ln
peLroleum producLs sub[ecL Lo Lhe speclflc Lax under Lhe nl8C.

llllla's Munlclpal 1ax Crdlnance no. 1 lmposlng Lhe assalled Laxes, fees and charges ls valld especlally SecLlon 9 (A)
whlch "was llfLed ln LoLo and/or ls a llLeral reproducLlon of SecLlon 19 (a) of Lhe Local 1ax Code as amended by u
no. 426." lL conforms wlLh Lhe mandaLe of sald law.

Ak1 II

44

u 426 amendlng Lhe Local 1ax Code ls deemed Lo have repealed rovlnclal Clrcular nos. 26-73 and 26 A-73 when
SecLlons 19 and 19 (a), were carrled over lnLo u 426 and no exempLlons were glven Lo manufacLurers,
wholesalers, reLallers, or dealers ln peLroleum producLs.

Whlle SecLlon 2 of u 436 prohlblLs Lhe lmposlLlon of local Laxes on peLroleum producLs, sald decree dld noL
amend SecLlons 19 and 19 (a) of u 231 as amended by .u. 426, whereln Lhe munlclpallLy ls granLed Lhe rlghL Lo
levy Laxes on buslness of manufacLurers, lmporLers, producers of any arLlcle of commerce of whaLever klnd or
naLure. A Lax on buslness ls dlsLlncL from a Lax on Lhe arLlcle lLself. 1hus, lf Lhe lmposlLlon of Lax on buslness of
manufacLurers, eLc. ln peLroleum producLs conLravenes a declared naLlonal pollcy, lL should have been expressly
sLaLed ln .u. no. 436.

1he exerclse by local governmenLs of Lhe power Lo Lax ls ordalned by Lhe presenL ConsLlLuLlon. 1o allow Lhe
conLlnuous effecLlvlLy of Lhe prohlblLlon seL forLh ln C no. 26-73 (1) would be LanLamounL Lo resLrlcLlng Lhelr
power Lo Lax by mere admlnlsLraLlve lssuances. under SecLlon 3, ArLlcle x of Lhe 1987 ConsLlLuLlon, only guldellnes
and llmlLaLlons LhaL may be esLabllshed by Congress can deflne and llmlL such power of local governmenLs.

rovlnclal Clrcular no. 6-77 en[olnlng all clLy and munlclpal Lreasurers Lo refraln from collecLlng Lhe so-called
sLorage fee on flammable or combusLlble maLerlals lmposed ln Lhe local Lax ordlnance of Lhelr respecLlve locallLy
frees peLlLloner C from Lhe paymenL of sLorage permlL fee.

1he sLorage permlL fee ls a fee for Lhe lnsLallaLlon and keeplng ln sLorage of any flammable, combusLlble or
exploslve subsLances. lnasmuch as sald sLorage makes use of Lanks owned noL by Lhe munlclpallLy of llllla, buL by
peLlLloner C, same ls obvlously noL a charge for any servlce rendered by Lhe munlclpallLy as whaL ls envlsloned ln
SecLlon 37 of Lhe same Code.

As Lo Lhe auLhorlLy of Lhe mayor Lo walve paymenL of Lhe mayor's permlL and sanlLary lnspecLlon fees, Lhe Lrlal
courL dld noL err ln holdlng LhaL "slnce Lhe power Lo Lax lncludes Lhe power Lo exempL Lhereof whlch ls essenLlally
a leglslaLlve prerogaLlve, lL follows LhaL a munlclpal mayor who ls an execuLlve offlcer may noL unllaLerally
wlLhdraw such an expresslon of a pollcy Lhru Lhe enacLmenL of a Lax."

1he walver parLakes of Lhe naLure of an exempLlon. LxempLlons from LaxaLlon are consLrued ln sLrlcLlsslml [urls
agalnsL Lhe Laxpayer and llberally ln favor of Lhe Laxlng auLhorlLy. 1ax exempLlons are looked upon wlLh dlsfavor.
1hus, ln Lhe absence of a clear and express exempLlon from Lhe paymenL of sald fees, Lhe walver cannoL be
recognlzed. lL ls Lhe law-maklng body, and noL an execuLlve llke Lhe mayor, who can make an exempLlon. under
SecLlon 36 of Lhe Code, a permlL fee llke Lhe mayor's permlL, shall be requlred before any lndlvldual or [urldlcal
enLlLy shall engage ln any buslness or occupaLlon under Lhe provlslons of Lhe Code.

I|oro Cement Corp vs. Gorospe

IAC1S:
lloro CemenL CorporaLlon ls a domesLlc corporaLlon duly organlzed and exlsLlng under Lhe laws of Lhe 8epubllc of
Lhe hlllpplnes wlLh buslness esLabllshmenL and offlce address aL lLs compound ln Lhe munlclpallLy of LugalL.

As a mlnlng operaLor of mlneral lands slLuaLed aL LugalL, Mlsamls CrlenLal, lloro CemenL was granLed by Lhe
SecreLary of AgrlculLure and naLural 8esources a CerLlflcaLe of CuallflcaLlon for 1ax LxempLlon as an exempLlon
from Lhe paymenL of all Laxes, excepL lncome Lax for a perlod of 3 years (Aprll 30, 1969 - Aprll 29, 1974).

1he sald CerLlflcaLe was amended on nov. 3, 1974, when Lhe SecreLary of naLural 8esources, Mr. !ose Leldo !r.
granLed Lo lloro CemenL a CerLlflcaLe, whlch exLended Lhe exempLlon from all Laxes, duLles, and fees, excepL
lncome Lax for 3 years (May 17, 1974 - !an. 1, 1978). 1he amended CerLlflcaLe was lssued pursuanL Lo Sec. 32, u
463:

Ak1 II

43

Sec. 32. ower Lo Levy 1axes on Mlnes, Mlnlng CperaLlons and Mlneral roducLs.-Any law Lo Lhe conLrary
noLwlLhsLandlng, no provlnce, ClLy, munlclpallLy, barrlo or munlclpal dlsLrlcL shall levy and collecL Laxes, fees,
renLals, royalLles or charges of any klnd whaLsoever on mlnes, mlnlng clalms, mlneral producLs, or on any
operaLlon, process, or acLlvlLy LherewlLh.

Cn !uly 3, 1974, Lhe MunlclpallLy Lhrough lLs Munlclpal Mayor, wlred Lhe SecreLary of llnance, opposlng Lhe
appllcaLlon of lloro CemenL for Lhe exLenslon of lLs exempLlon, whlch opposlLlon was noL favorably acLed upon.

1he MunlclpallLy, pursuanL Lo u 231 (!une 28, 1973), passed Munlclpal Crdlnance no. 3, oLherwlse known as
Munlclpal 8evenue Code of 1974, effecLlve !an. 1, 1974.

1he MunlclpallLy, pursuanL Lo u 426 (March 30, 1974), passed Munlclpal 8evenue Crdlnance no. 10.

ursuanL Lo Munlclpal Crdlnances nos. 3 and 10, Lhe MunlclpallLy demanded of lloro CemenL Lhe paymenL of
manufacLurer's and exporLer's Laxes lncludlng surcharge for Lhe perlod coverlng !an. 1, 1974 Lo SepL. 30, 1973, buL
lloro CemenL refused ln vlew of Lhe Lax exempLlon granLed Lo lL.

1he munlclpallLy of LugalL, Lhrough lLs Mun. 1reasurer and rov. 1reasurer, flled wlLh Lhe Cll of Mlsamls CrlenLal a
verlfled complalnL for collecLlon of manufacLurer's and exporLer's Laxes of 161,873.00 (!an. 1, 1974 - SepL. 30,
1973) plus 23 Lhereof as surcharge.

Cn Lhe basls of Lhe sLlpulaLlons of facLs, Lhe parLles submlLLed Lhelr respecLlve memoranda.

Cll: ln favor of Lhe MunlclpallLy of LugalL and ordered lloro CemenL CorporaLlon Lo pay 161,873.00 as
manufacLurer's and exporLer's Laxes and surcharges.
Pence, Lhls appeal.

lloro CemenL holds LhaL:
1. Slnce Crdlnances nos. 3 and 10 were enacLed pursuanL Lo u 231 and u 426, respecLlvely, sald
ordlnances do noL apply Lo lLs buslness ln vlew of Lhe llmlLaLlon on Lhe Laxlng power of local governmenL provlded
ln Sec. 3m of u 231, Lo wlL:
Sec. 3. Common LlmlLaLlons on Lhe 1axlng owers of Local CovernmenLs. 1he exerclse of Laxlng
power of provlnces, clLles, munlclpallLles and barrlos shall noL exLend Lo Lhe lmposlLlon of Lhe
followlng:
. . .
(m) 1axes on mlnes, mlnlng operaLlons and mlneral producLs and Lhelr by-producLs
when sold domesLlcally by Lhe operaLor.

2. LhaL cemenL ls a mlneral producL and Lhe prohlblLlon on lmposlLlon of Laxes ln Sec. 32 of u 463 lncludes
any operaLlon, process or acLlvlLy connecLed wlLh lLs producLlon. 1he manufacLure of cemenL ls a process
lnherenLly connecLed wlLh Lhe mlnlng operaLlon underLaken by lloro CemenL.

1he MunlclpallLy:
1. admlLs LhaL lloro CemenL underLakes exploraLlon, developmenL and explolLaLlon of mlneral producLs, buL
Lhe Laxes soughL Lo be collecLed were noL lmposed on Lhese acLlvlLles,
2. 1he Laxes were levled on Lhe corporaLlon's buslness of manufacLurlng and exporLlng cemenL, whlch does
noL fall under exploraLlon, developmenL nor explolLaLlon of mlneral resources as deflned ln Sec. 2 of u 463.
Pence, lL ls ouLslde Lhe scope of appllcaLlon of Sec. 32 of sald decree.
3. lLs power Lo levy Laxes on manufacLurers and exporLers ls provlded ln ArLlcle 2, Sec. 19 of u 231, as
amended by u426: "1he munlclpallLy may lmpose a Lax on buslness excepL Lhose for whlch flxed Laxes are
provlded for ln Lhls Code:
(a) Cn manufacLurers, lmporLers, or producers of any arLlcle of commerce of whaLever klnd or naLure,
Ak1 II

46

lncludlng brewers, dlsLlllers, recLlflers, repackers, and compounders of llquors, dlsLllled splrlLs and/or wlnes ln
accordance wlLh Lhe followlng schedule: . . .
(a-1) Cn reLallers, lndependenL wholesalers, and dlsLrlbuLors . . .

ISSUL:
WCn Crdlnances nos. 3 and 10 of LugalL, Mlsamls CrlenLal apply Lo lloro CemenL noLwlLhsLandlng Lhe llmlLaLlon
on Lhe Laxlng power of local governmenL as provlded for ln Sec. 32 of u 231 and Sec. 32 of u 463.

nLLD]kA1IC:
?LS.
1hls CourL has conslsLenLly held LhaL cemenL ls noL a mlneral producL buL raLher a manufacLured producL. Whlle
cemenL ls composed of 80 mlnerals, lL ls noL merely an admlxLure or blendlng of raw maLerlals, as llme, slllca,
shale and oLhers. lL ls Lhe resulL of a deflnlLe process - Lhe crushlng of mlnerals, grlndlng, mlxlng, calclnlng addlng
of reLarder or raw gypsum ln shorL, before cemenL reaches lLs saleable form, Lhe mlnerals had already undergone a
chemlcal change Lhrough manufacLurlng process.

As held by Lhe lower courL, Lhe exempLlon ln Sec. 32 of u 463 refers only Lo machlnerles, equlpmenL, Lools for
producLlon, eLc., as provlded ln Sec. 33 of Lhe same decree. 1he manufacLure and Lhe exporL of cemenL does noL
fall under Lhe sald provlslon for lL ls noL a mlneral producL. lL ls noL cemenL LhaL ls mlned only Lhe mlneral producLs
composlng Lhe flnlshed producL.

As Lhe power of LaxaLlon ls a hlgh prerogaLlve of soverelgnLy, Lhe rellnqulshmenL ls never presumed and any
reducLlon or dlmlnuLlon Lhereof wlLh respecL Lo lLs mode or lLs raLe, musL be sLrlcLly consLrued, and Lhe same musL
be coached ln clear and unmlsLakable Lerms ln order LhaL lL may be applled. 1he general rule ls LhaL any clalm for
exempLlon from Lhe Lax sLaLuLe should be sLrlcLly consLrued agalnsL Lhe Laxpayer. Pe who clalms an exempLlon
musL be able Lo polnL ouL some provlslon of law creaLlng Lhe rlghL, lL cannoL be allowed Lo exlsL upon a mere vague
lmpllcaLlon or lnference. lloro CemenL falled Lo prove Lhls.

ln facL, by Lhe parLles' own sLlpulaLlon of facLs, lL ls admlLLed LhaL lloro CemenL ls engaged ln Lhe manufacLurlng
and selllng, lncludlng exporLlng of cemenL. As such, and slnce Lhe Laxes soughL Lo be collecLed were levled on Lhese
acLlvlLles, Crdlnances nos. 3 and 10 properly apply Lo lloro CemenL. Alll8MLu.

1uzon and Mapagu vs. CA (1992)

IAC1S:
14 March 1977: Sanggunlang 8ayan of Camalanlugan, Cagayan, adopLed 8esoluLlon no. 9 sollclLlng 1 donaLlon of
Lhe palay Lhreshed from Lhe Lhresher operaLors who wlll apply for a permlL Lo Lhresh. 1he proceeds wlll fund Lhe
consLrucLlon of Lhe SporLs and nuLrlLlon CenLer 8ldg of Lhe munlclpallLy.

eLlLloner Lope Mapagu (Lreasurer) prepared a documenL for slgnaLure of all Lhresher/ owner/ operaLors who
applled for a mayor's permlL.

rlvaLe respondenL !urado Lrled Lo pay Lhe 283.00 llcense fee for Lhresher operaLors buL lL was refused on Lhe
ground LhaL he musL flrsL geL a mayor' permlL (by Mapagu) and second, Lhe he dld noL slgn Lhe agreemenL Lo glve
1 of Lhe palay he produced (by Mayor 1uzon).

!urado flled for an acLlon for mandamus wlLh Lhe 81C ln Aparrl, Cagayan (Cll Lhen) Lo compel Lhe lssuance of Lhe
mayor's permlL and llcense. Pe flled anoLher peLlLlon for declaraLory [udgmenL agalnsL Lhe resoluLlon for belng
lllegal elLher as a donaLlon or as a Lax measure.

81C: upheld Lhe challenge measure. ulsmlssed Lhe clalms for damages.

Ak1 II

47

!urado appealed Lo CA.

CA: Afflrmed Lhe valldlLy of 8esoluLlon no. 9 buL declared LhaL lL ls noL mandaLory. 8uL held LhaL Mayor 1uzon and
1reasurer Mapagu are llable Lo pay 201 as acLual damages and 31 as moral damages.

As for Lhe 8esoluLlon, lL was passed by Lhe Sanggunlan ln Lhe lawful exerclse of lLs leglslaLlve powers granLed by
ArLlcle xl, SecLlon 3 of Lhe 1973 ConsLlLuLlon whlch provlded LhaL each LCu shall have Lhe power Lo creaLe lLs own
source revenue and Lo levy Laxes, sub[ecL Lo such llmlLaLlon as may be provlded by law. And also under ArLlcle 4,
Sec. 29, u 231: 1he barrlo councll may sollclL money, maLerlals, and oLher conLrlbuLlons from prlvaLe agencles and
lndlvlduals.

lSSuL 1: WCn a resoluLlon lmposlng a 1 donaLlon ls a valld exerclse of Lhe Laxlng power of an LCu. nC 8uLlnC.

kA1IC:
1he CourL [usL remarked LhaL Lhe reasonlng of Lhe CA ls an over-slmpllflcaLlon. lL held LhaL Lhe respondenL courL
has noL offered any explanaLlon for lLs concluslon LhaL Lhe challenged measures are valld nor does lL dlscuss lLs
own concepL of Lhe naLure of Lhe resoluLlon.

1he CourL dld noL concern lLself wlLh Lhe valldlLy of Lhe 8esoluLlon slnce Lhe lssue was noL ralsed ln Lhe peLlLlon as
an asslgned error of Lhe CA. 1he measures have been susLalned ln Lhe challenged declslon, from whlch Lhe
respondenL has noL appealed. 1he lmplemenLlng agency made Lhe donaLlon" obllgaLory.

AlLhough agaln Lhe valldlLy of Lhe resoluLlon was noL ln lssue, Lhe SC observed LhaL: lL seems Lo make Lhe donaLlon
obllgaLory and a condlLlon precedenL Lo Lhe lssuance of Lhe mayor's permlL. 1hls goes agalnsL Lhe naLure of a
donaLlon, whlch ls an acL of llberallLy and ls never obllgaLory.

lf lL ls Lo be consldered as a Lax ordlnance, lL musL be shown:
1. Lo have been enacLed ln accordance wlLh Lhe requlremenLs of Lhe Local 1ax Code ,
2. lL would lnclude Lhe holdlng of a publlc hearlng on Lhe measure, and
3. lLs subsequenL approval by Lhe SecreLary of llnance, ln addlLlon Lo Lhe requlslLes for publlcaLlon of
ordlnances ln general.

lSSuL2: WCn Lhe refusal on Lhe parL of Lhe peLlLloners Lo lssue a Mayor's permlL and llcense Lo operaLe a Lhresher
Lo Lhe prlvaLe respondenL ls un[usLlfled and consLlLuLes bad falLh" on Lhelr parL. nC.

kA1IC:
eLlLloners acLed wlLhln Lhe scope of Lhelr auLhorlLy and ln consonance wlLh Lhelr honesL lnLerpreLaLlon of Lhe
resoluLlon ln quesLlon. lL was noL for Lhem Lo rule on lLs valldlLy. ln Lhe absence of a [udlclal declslon declarlng lL
lnvalld, lLs legallLy would have Lo be presumed. As execuLlve offlclals of Lhe munlclpallLy, Lhey had Lhe duLy Lo
enforce lL as long as lL had noL been repealed by Lhe Sanggunlang 8ayan or annulled by Lhe courLs.

xxx As a rule, a publc offlcer, wheLher, [udlclal, quasl-[udlclal or execuLlve, ls noL personally llable Lo one ln[ured ln
consequence of an acL performed wlLhln Lhe scope of hls offlclal auLhorlLy, and ln llne of hls offlclal duLy.
xxx lL has been held LhaL an erroneous lnLerpreLaLlon of an ordlnance does noL consLlLuLe nor does lL amounL Lo
bad falLh, LhaL would enLlLle an aggrleved parLy Lo an award for damages. (hlllpplne MaLch Co. LLd. v. ClLy of
Cebu)

=%*)4>0,$,

LD1 vs. C|ty of Davao (2001)
Ak1 II

48

lAC1S:
- eLlLloner Lu1 applled for a mayor's permlL Lo operaLe lLs uavao MeLro Lxchange buL 8espondenL uavao
ClLy wlLhheld lLs acLlon Lo Lhe appllcaLlon pendlng paymenL by peLlLloner of Lhe local franchlse Lax ln Lhe amounL of
hp3,681,983.72. eLlLloner conLesLed Lhe assessmenL saylng LhaL lL was exempL from such franchlse Lax as
evldenced by Lhe oplnlon of Lhe 8ureau of Local CovernmenL llnance (8LCl) lnvoklng Sec. 23 of 8A 7923 whlch
mandaLes Lhe equallLy of LreaLmenL ln Lelecom companles. Accordlng Lo peLlLloner, slnce Clobe and SmarL are
boLh en[oylng exempLlon from franchlse Lax and are paylng a flxed percenLage of Lhelr gross recelpLs ln lleu of Lhe
franchlse Lax, Lhen Lhe same exempLlon should also be granLed Lo lL.
- Cn Lhe oLher hand, uavao ClLy ls lnvoklng Sec. 137of Lhe LCC whlch provldes LhaL Lhe noLwlLhsLandlng any
exempLlon granLed by law, Lhe local governmenL unlL may lmpose a franchlse Lax aL a raLe noL exceedlng 30 of
1 of Lhe gross annual recelpLs of Lhe buslness. 8espondenL also ralsed Lhe provlslon of Sec. 193 whlch removed
all exlsLlng Lax exempLlons and lncenLlves granLed Lo [urldlcal and naLural persons, unless oLherwlse provlded by
Lhe Local CovernmenL Code.

ISSUL:
WCn uavao ClLy may lmpose a franchlse Lax agalnsL Lu1.

nLLD]kA1IC:
- ?LS. 1he clalm of peLlLloner LhaL Lhe exempLlon exLended Lo Clobe and SmarL by vlrLue of Lhelr leglslaLlve
franchlses, should also be exLended Lo lL because of Sec. 23 of 8A 7923, cannoL sLand. 1hls wlll resulL Lo absurd
consequences slnce Clobe and SmarL have varylng percenLages as regards Lhe Lax Lhey should pay based on Lhelr
gross recelpLs, ln lleu of paymenL of franchlse Lax. Clobe ls requlred Lo pay 1.3 of all gross recelpLs from lLs
LransacLlons whlle SmarL musL pay 3 on all lLs gross recelpLs. lf peLlLloner's Lheory of levellng Lhe playlng fleld wlll
be followed, Lhen SmarL can also clalm LhaL Lhe percenLage lmposed Lo lL be lowered Lo LhaL of Clobe. And lf ln Lhe
fuLure, Congress agaln granLs a franchlse Lo anoLher Lelecom company lmposlng a lower percenLage, say 1
franchlse Lax, Lhen all oLher Lelecom franchlses can also clalm LhaL Lhelrs be lowered Lo LhaL percenLage. 1hls ls
noL Lhe lnLenL of Congress ln Sec. 23 of 8A 7923 as Lhls would leave Lhe CovernmenL wlLh Lhe burden of havlng Lo
keep Lrack of all granLed Lelecom franchlses, lesL some companles be LreaLed equally.

1he exempLlon menLloned ln Sec. 23 of 8A 7923 ls Loo general. 1he lnLenL of Lhe framers of 8A 7923 ls Lo promoLe
gradually Lhe deregulaLlon of Lhe enLry, prlclng and operaLlons of all publlc Lelecom enLlLles and Lhus promoLe a
level playlng fleld ln Lhe Lelecom lndusLry. 1here ls noLhlng ln Sec. 23 whlch shows LhaL lL conLemplaLes Lhe granL of
Lax exempLlons Lo all Lelecom enLlLles, lncludlng Lhose whose exempLlons have been wlLhdrawn by Lhe LCC. 1he
exempLlon menLloned ln Sec. 23 refers Lo cerLaln regulaLory or reperLory requlremenLs and noL Lo Lhe paymenL of
franchlse Laxes.

C|ty Government of .C. v. 8ayante| (2006)

IAC1S: :
1. 8ayanLel ls a leglslaLlve franchlse holder under 8. A. 3239 Lo esLabllsh and operaLe radlo sLaLlons for
domesLlc LelecommunlcaLlons, radlophone, broadcasLlng and LelecasLlng. 1he franchlse lncluded an exempLlon
from Laxes:
SLC1lCn 14. (a) 1he granLee shall be llable Lo pay Lhe same Laxes on lLs real esLaLe, bulldlngs and
personal properLy, excluslve of Lhe franchlse, as oLher persons or corporaLlons are now or hereafLer may
be requlred by law Lo pay. (b) 1he granLee shall furLher pay Lo Lhe 1reasurer of Lhe hlllpplnes each year,
wlLhln Len days afLer Lhe audlL and approval of Lhe accounLs as prescrlbed ln Lhls AcL, one and one-half
per cenLum of all gross recelpLs from Lhe buslness LransacLed under Lhls franchlse by Lhe sald granLee."

2. 1he Local CovernmenL Code (LCC), whlch Look effecL ln !anuary 1992, granLs local governmenL unlLs
wlLhln Lhe MeLro Manlla Area Lhe power Lo levy Lax on real properLles, vlz:
SLC. 232. - ower Lo Levy 8eal roperLy 1ax. - A provlnce or clLy or a munlclpallLy wlLhln Lhe
Ak1 II

49

MeLropollLan Manlla Area may levy an annual ad valorem Lax on real properLy such as land, bulldlng,
machlnery and oLher lmprovemenLs noL herelnafLer speclflcally exempLed."
and
SLC. 234 - LxempLlons from 8eal roperLy 1ax. 1he followlng are exempLed from paymenL of Lhe
real properLy Lax:
xxx xxx xxx
LxcepL as provlded hereln, any exempLlon from paymenL of real properLy Lax prevlously granLed Lo,
or en[oyed by, all persons, wheLher naLural or [urldlcal, lncludlng governmenL-owned-or-conLrolled
corporaLlons ls hereby wlLhdrawn upon effecLlvlLy of Lhls Code."

3. ShorLly LhereafLer, or ln !uly 1992, 8ayanLel's franchlse was amended, buL lL reLalned Sec. 14 of 8.A. 3239.
1he new law, ln Sec. 11 of 8.A. 7633, resLaLed Sec. 14. of 8.A. 3239.

4. ln 1993, Lhe governmenL of Cuezon ClLy enacLed Lhe Cuezon ClLy 8evenue Code (CC8C), whlch lmposes a
real properLy Lax on all real properLles ln Cuezon ClLy, and relLeraLed Lhe wlLhdrawal of exempLlon from real
properLy Lax under SecLlon 234 of Lhe LCC.

3. Conformably wlLh Lhe CC8C, Lhe ClLy Assessor lssued new Lax declaraLlons for 8ayanLel's real properLles
ln Cuezon ClLy.

6. 8ayanLel requesLed Lhe ClLy Assessor Lo exclude lLs real properLles ln Lhe clLy from Lhe roll of Laxable real
properLles. lLs requesL havlng been denled, lL appealed Lo Lhe Local 8oard of AssessmenL Appeals (L8AA).

7. 8ecause 8ayanLel dld noL pay Lhe real properLy Laxes assessed agalnsL lL, Lhe ClLy 1reasurer senL ouL
noLlces of dellnquency followed by warranLs of levy agalnsL 8ayanLel's properLles, preparaLory Lo Lhelr sale aL a
publlc aucLlon.

8. 8ayanLel lmmedlaLely wlLhdrew lLs appeal aL Lhe L8AA and flled wlLh Lhe 81C a peLlLlon for prohlblLlon
wlLh an urgenL appllcaLon for a Lemporary resLralnlng order and/or wrlL of prellmlnary ln[uncLlon.

ISSUL:
WCn 8ayanLel's real properLles ln Cuezon ClLy are, under lLs amended franchlse, exempL from real properLy Lax.

nLLD:
?es.

kA1IC:
1. 8ayanLel's amended franchlse reLalned Lhe phrase excluslve of Lhls franchlse," whlch phrase ls also ln lLs
orlglnal franchlse.
2. 1he phrase excluslve of Lhls franchlse" (found ln Sec. 14 of 8.A. 3239 and ln Sec. 11 of 8A 7633)
dlsLlnghulshes beLween Lwo seLs of properLles: a) Lhose acLually, dlrecLly and excluslvely used ln lLs radlo or
LelecommunlcaLlon buslness and b) Lhose properLles whlch are noL so used.
3. Whlle Sec. 14 granLed local governmenLs Lhe power Lo Lax Lhose properLles noL acLually, dlrecLly and
excluslvely used ln Lhe pursulL of franchlsee's buslness, Lhe same provlslon also worked Lo llmlL Lhe local
governmenL's power Lo lmpose Laxes only on Lhe franchlsee's properLles LhaL are noL acLually, dlrecLly and
excluslvely used ln Lhe pursulL of lLs franchlse. necessrlly, oLher properLles of 8ayanLel acLually, dlrecLly, and
excluslvely used ln Lhe operaLlon of lLs franchlse are noL wlLhln Lhe delegaLed power Lo Lax of local governmenLs
and are exempL from real properLy Laxes.
4. AlLhough Lhe enacLmenL lnLo law of Lhe LCC effecLlvely wlLhdrew 8ayanLel's exempLlons from real esLaLe
Laxes for properLles wlLhln MeLro Manlla, Lhe subsequenL enacLmenL of 8A 7633, whlch amended 8ayanLel's
franchlse, reenacLed Lhe Lax provlslon, Sec. 14 of Lhe orlglnal franchlse, 8A 3239. ln shorL, Sec. 14, whlch exempLs
8ayanLel from real properLy Laxes, and whlch was deemed repealed by Lhe LCC, was revlved by 8A 7633.
Ak1 II

30

3. Congress was well aware LhaL Lhe LCC wlLhdrew 8ayanLel's former exempLlon from properLy Laxes such
LhaL lL opLed Lo enacL lnLo law 8A 7633. Sald law conLalns Lhe same deflnlng phrase excluslve of lLs franchlse"
whlch was Lhe basls of 8ayanLel's exepmLlon from realLy Laxes prlor Lo Lhe LCC. 8.A. 7633, a subsequenL
leglslaLlon, ls an expresslon of Congress' lnLenLlon Lo remove from Lhe LCC's delegaLed Laxlng power all Lhe
franchlsee's properLles LhaL are acLually, dlrecLly, and excluslvely used ln Lhe pursulL of lLs franchlse.
6. 1he power Lo Lax ls sLlll prlmarlly vesLed ln Lhe Congress. 1he LCC lLself hlghllghLed Lhe LeglslaLure's power
Lo exempL cerLaln realLles from Lhe Laxlng power of local governmenL unlLs (ArL. 232. ... noL herelnafLer
speclflcally exempLed").

ILLS Lnergy v. rov. Cf 8atangas (2007)

IAC1S:
1he law does noL look wlLh favor on Lax exempLlons and Lhe enLlLy LhaL would seek Lo be Lhus prlvlleged musL
[usLlfy lL by words Loo plaln Lo be mlsLaken and Loo caLegorlcal Lo be mlslnLerpreLed. 1hus, applylng Lhe rule of
sLrlcL consLrucLlon of laws granLlng Lax exempLlons, and Lhe rule LhaL doubLs should be resolved ln favor of
provlnclal corporaLlons, we hold LhaL lLLS ls consldered a Laxable enLlLy. 1he rlghL of local governmenL unlLs Lo
collecL Laxes due musL always be upheld Lo avold severe Lax eroslon. 1hls conslderaLlon ls conslsLenL wlLh Lhe SLaLe
pollcy Lo guaranLee Lhe auLonomy of local governmenLs and Lhe ob[ecLlve of Lhe LCC LhaL Lhey en[oy genulne and
meanlngful local auLonomy Lo empower Lhem Lo achleve Lhelr fullesL developmenL as self-rellanL communlLles and
make Lhem effecLlve parLners ln Lhe aLLalnmenL of naLlonal goals.

D|g|te| v. rov. Cf angas|nan (2007)

IAC1S:
- !anuary 1, 1992 - effecLlvlLy of Local CovernmenL Code (8A 7160)
Cf slgnlflcance Lo Lhe presenL peLlLlon are SecLlons 137 and 232 of Lhe Local CovernmenL Code.
SecLlon 137 of Lhe Local CovernmenL Code, ln prlnclple, wlLhdrew any exempLlon from Lhe paymenL of a
Lax on buslnesses en[oylng a franchlse.
Lxpressly, lL auLhorlzed local governmenLs Lo lmpose a franchlse Lax on buslnesses en[oylng a franchlse
wlLhln lLs LerrlLorlal [urlsdlcLlon.
SecLlon 232 llkewlse auLhorlzes Lhe lmposlLlon of an ad valorem Lax on real properLy by Lhe local
governmenL.

- november 13, 1992 - peLlLloner ulCl1LL was granLed, under rovlnclal Crdlnance no. 18-92, a provlnclal
franchlse Lo lnsLall, malnLaln and operaLe a LelecommunlcaLlons sysLem
SecLlon 6 - ulCl1LL ls requlred Lo pay franchlse and real properLy Laxes.

- uecember 29, 1992 - Lhe Sanggunlang anlalawlgan of respondenL rovlnce of angaslnan enacLed on 29
uecember 1992, rovlnclal 1ax Crdlnance no. 1, pursuanL Lo Lhe mandaLe of SecLlons 137 and 232 of Lhe Local
CovernmenL Code

- SepLember 10, 1993 - rovlnclal 1ax Crdlnance no. 4, oLherwlse known as "1he angaslnan lranchlslng
Crdlnance of 1993," was slmllarly raLlfled.
SecLlons 4, 3 and 6 Lhereof, poslLlvely lmposed a franchlse Lax on buslnesses en[oylng a franchlse wlLhln
lLs LerrlLorlal [urlsdlcLlon

- leb 17, 1994 - ulCl1LL was granLed by 8epubllc AcL no. 7678, a leglslaLlve franchlse
Sec. 3 - ulCl1LL ls llable for Lhe paymenL of a franchlse Lax "as may be prescrlbed by law of all gross
recelpLs of Lhe Lelephone or oLher LelecommunlcaLlons buslnesses LransacLed under lL by Lhe granLee," as well as
real properLy Lax "on lLs real esLaLe, and bulldlngs "excluslve of Lhls franchlse."

Ak1 II

31

- rovlnce of angaslnan, ln lLs examlnaLlon of lLs record found LhaL peLlLloner ulCl1LL had a franchlse Lax
deflclency for Lhe years 1992, 1993 and 1994.

- March 16, 1993 - Congress passed 8epubllc AcL no. 7923, oLherwlse known as "1he ubllc
1elecommunlcaLlons ollcy AcL of Lhe hlllpplnes."
SecLlon 23 of Lhls law enLlLled LquallLy of 1reaLmenL ln Lhe 1elecommunlcaLlons lndusLry, provlded for Lhe
lpso facLo appllcaLlon Lo any prevlously granLed LelecommunlcaLlons franchlses of any advanLage, favor, prlvllege,
exempLlon or lmmunlLy granLed under exlsLlng franchlses, or Lhose sLlll Lo be granLed, Lo be accorded lmmedlaLely
and uncondlLlonally Lo earller granLees.

- 1he provlnclal franchlse and real properLy Laxes remalned unpald by ulglLel Lo Lhe rovlnce of angaslnan.
Cn 1 March 2000, no seLLlemenL havlng been made, rovlnce of angaslnan flled a ComplalnL13 for Mandamus,
CollecLlon of Sum of Money and uamages before 8ranch 68 of Lhe 81C of Llngayen, angaslnan.

- 81C ruled ln favor of Lhe rovlnce of angaslnan:
ulCl1LL's leglslaLlve franchlse does noL work Lo exempL Lhe laLLer from paymenL of provlnclal franchlse
and real properLy Laxes, Lhe provlnclal and leglslaLlve franchlses are separaLe and dlsLlncL from each oLher
SecLlon 137 of Lhe Local CovernmenL Code had already wlLhdrawn any exempLlon granLed Lo anyone, as
such, Lhe local governmenL of a provlnce may lmpose a Lax on a buslness en[oylng a franchlse

- ulCl1LL argues:
8y vlrLue of SecLlon 23 of 8epubllc AcL no. 7923, Lhe lpso facLo, lmmedlaLe and uncondlLlonal appllcaLlon
Lo lL of Lhe Lax exempLlon found ln Lhe franchlses of Clobe, SmarL and 8ell
SLaLed slmply, SecLlon 23 of 8epubllc AcL no. 7923, ln relaLlon Lo Lhe perLlnenL provlslons of Lhe leglslaLlve
franchlses of Clobe, SmarL and 8ell, "Lhe naLlonal franchlse Lax for whlch peLlLloner (ulCl1LL) ls llable Lo pay shall
be 'ln lleu of any and all Laxes of any klnd, naLure or descrlpLlon levled, esLabllshed or collecLed by any auLhorlLy
whaLsoever, munlclpal, provlnclal, or naLlonal, from whlch Lhe granLee ls hereby expressly granLed."

ISSULS:
1. WheLher or noL peLlLloner ulCl1LL ls enLlLled Lo Lhe exempLlon from Lhe paymenL of provlnclal franchlse
Lax ln vlew of SecLlon 23 of 8epubllc AcL no. 7923, ln relaLlon Lo Lhe Lax exempLlon provlslons found ln Lhe
leglslaLlve franchlses of Clobe, SmarL and 8ell? (SLaLed oLherwlse, are Lhe "ln-lleu-of-all-Laxes" clauses/provlsos
found ln Lhe leglslaLlve franchlses of Clobe, SmarL and 8ell, vls-a-vls SecLlon 23 of 8epubllc AcL no. 7923, appllcable
Lo peLlLloner ulCl1LL such LhaL Lhe laLLer ls now exempL from Lhe paymenL of any oLher Laxes excepL Lhe naLlonal
franchlse and lncome Laxes?)
2. lf answered ln Lhe negaLlve, wheLher or noL peLlLloner ulCl1LL's real properLles found wlLhln Lhe
LerrlLorlal [urlsdlcLlon of respondenL rovlnce of angaslnan are exempL from Lhe paymenL of real properLy Laxes
by vlrLue of Lhe phrase "excluslve of Lhls franchlse" found ln SecLlon 3 of lLs leglslaLlve franchlse?

nLLD:
1. nC. 1he case aL bar ls acLually noL one of flrsL lmpresslon. lndeed, as far back as 2001, Lhls CourL has had
Lhe occaslon Lo rule agalnsL Lhe clalm for Lax exempLlon under 8epubllc AcL no. 7923. ln Lhe case of hlllpplne Long
ulsLance 1elephone Company, lnc. v. ClLy of uavao, we already clarlfled Lhe confuslon broughL abouL by Lhe effecL
of SecLlon 23 of 8epubllc AcL no. 7923 - LhaL Lhe word "exempLlon" as used ln Lhe sLaLuLe refers or perLalns merely
Lo an exempLlon from regulaLory or reporLlng requlremenLs of Lhe uC1C or Lhe n1C and noL Lo Lhe granLee's Lax
llablllLy.
ln approvlng SecLlon 23 of 8epubllc AcL no. 7923, Congress dld noL lnLend lL Lo operaLe as a blankeL Lax
exempLlon Lo all LelecommunlcaLlons enLlLles
1he Lax exempLlon musL be expressed ln Lhe sLaLuLe ln clear language LhaL leaves no doubL of Lhe
lnLenLlon of Lhe leglslaLure Lo granL such exempLlon. And, even lf lL ls granLed, Lhe exempLlon musL be lnLerpreLed
ln sLrlcLlsslml [urls agalnsL Lhe Laxpayer and llberally ln favor of Lhe Laxlng auLhorlLy
1here ls noLhlng ln Lhe language of 23 nor ln Lhe proceedlngs of boLh Lhe Pouse of 8epresenLaLlves and
Ak1 II

32

Lhe SenaLe ln enacLlng 8.A. no. 7923 whlch shows LhaL lL conLemplaLes Lhe granL of Lax exempLlons Lo all
LelecommunlcaLlons enLlLles, lncludlng Lhose whose exempLlons had been wlLhdrawn by Lhe LCC.
1he word 'exempLlon' ln 23 of 8.A. no. 7923 conLemplaLes exempLlon from cerLaln regulaLory or
reporLlng requlremenLs, bearlng ln mlnd Lhe pollcy of Lhe law. PLnCL, ulCl1LL lS LlA8LL 1C A? 1PL 8CvlnClAL
l8AnCPlSL 1Ax.

2. ?LS. Powever, lL ls wlLh Lhe caveaL LhaL such exempLlon solely applles Lo Lhose real properLles acLually,
dlrecLly and excluslvely used by Lhe granLee ln lLs franchlse.

1he presenL lssue acLually bolls down Lo a dlspuLe beLween Lhe lnherenL Laxlng power of Congress and Lhe
delegaLed auLhorlLy Lo Lax of Lhe local governmenL borne by Lhe 1987 ConsLlLuLlon. ln Lhe afore-quoLed case of
Lu1 v. ClLy of uavao, we already susLalned Lhe power of Congress Lo granL exempLlons over and above Lhe power
of Lhe local governmenL's delegaLed Laxlng auLhorlLy noLwlLhsLandlng Lhe source of such power.

1he granL of Laxlng powers Lo local governmenL unlLs under Lhe ConsLlLuLlon and Lhe LCC does noL affecL Lhe
power of Congress Lo granL exempLlons Lo cerLaln persons, pursuanL Lo a declared naLlonal pollcy. 1he legal effecL
of Lhe consLlLuLlonal granL Lo local governmenLs slmply means LhaL ln lnLerpreLlng sLaLuLory provlslons on
munlclpal Laxlng powers, doubLs musL be resolved ln favor of munlclpal corporaLlons.

?$*+ !%".$%6: <*7*60") @A$4 3BCD5EFG ?H C3IJK *)9 A.$40*+ L9-4*60") =-)9 <*7

Sec of I|nance vs. I|arde & C|pr|ano Caba|una (200S)

IAC1S:
Cabaluna ls Lhe 8eglonal ulrecLor of 8eglonal Cfflce no. vl of Lhe uepL. of llnance ln llollo ClLy. Pe co-owns wlLh hls
wlfe several real properLles, on whlch Lhe ClLy 1reasurer's Cfflce assessed real properLy Lax dellnquencles from
1986-1992. Cabaluna pald under proLesL, conLendlng LhaL Lhe penalLles lmposed are ln excess Lhan LhaL provlded
by Sec. 66 of u 464 (8eal roperLy 1ax Code), whlch flxed Lhe maxlmum penalLy aL 24 of Lhe dellnquenL Lax.
AfLer hls reLlremenL, he flled a formal proLesL whlch was denled by Lhe ClLy 1reasurer, clLlng Sec. 4(c) of !olnL
AssessmenL 8egulaLlon no. 1-83 and Local 1reasury 8egulaLlon no. 2-83 lssued by respondenL SecreLary (formerly
MlnlsLer) of llnance, provldlng LhaL Lhe penalLy of 2 per monLh of dellnquency or 24 per annum as Lhe case
may be, conLlnued Lo be lmposed from Lhe Llme of dellnquency lncurred unLll Lhe Llme lL ls fully pald. AfLer
exhausLlng all admlnlsLraLlve remedles, he flled a sulL before Lhe 81C whlch found LhaL SecLlon 4(c) of !olnL
AssessmenL 8egulaLlon no. 1-83 and Local 1reasury 8egulaLlon no. 2-83 (8egulaLlons") are vold, because Lhe
penalLy lmposed Lhereln has no llmlL as Lhe 24 penalLy per annum ls conLlnually lmposed unLll dellnquenL Lax ls
fully pald for, unllke under Sec. 66 of u 464 (81 Code") where LoLal penalLy ls llmlLed only Lo 24 of Lhe
dellnquenL Lax.

ISSUL:
WheLher or noL Lhe Lhen MlnlsLry of llnance could legally promulgaLe 8egulaLlons prescrlblng a raLe of penalLy on
dellnquenL Laxes oLher Lhan LhaL provlded for under u 464 (81 Code").

nLLD:
nC.
- eLlLloner: LhaL Lhe 8egulaLlons are sancLloned by LC 73.
SC: nC.
- LC 73 was enacLed Lo anLedaLe Lhe effecLlvlLy of Lhe 1984 8eal roperLy 1ax values from 01 !anuary 1988
Lo 01 !anuary 1987, Lhus repeallng Lhe earller LC 1019, whlch reorganlzed Lhe Lax collecLlon and assessmenL ln
provlnces, munlclpallLles and clLles. LC 73 merely deslgnaLed Lhe MlnlsLer of llnance Lo promulgaLe rules Lo
lmplemenL such appllcaLlon of Lhe 1984 values (Sec. 2 of LC 73), noL Lhe amendmenL of raLes of penalLy on
Ak1 II

33

dellnquenL Laxes (Sec. 66 of u 464).
- 1he MlnlsLry (now SecreLary) of llnance cannoL promulgaLe regulaLlons prescrlblng a raLe of penalLy on
dellnquenL Laxes. uesplLe Lhe promulgaLlon of LC 73, u 464 ln general and Sec. 66 ln parLlcular, remalned Lo be
good law. 1o accepL Lhe SecreLary's premlse LhaL LC 73 had accorded hlm Lhe auLhorlLy Lo alLer, lncrease, or
modlfy Lhe Lax sLrucLure would be LanLamounL Lo saylng LhaL LC 73 has repealed or amended u 464. 8epeal of
laws should be made clear and expressed. 8epeals by lmpllcaLlon are noL favored as laws are presumed Lo be
passed wlLh dellberaLlon and full knowledge of all laws exlsLlng on Lhe sub[ecL. 1here ls no lnconslsLency beLween
LC 73 and u 464. lL ls only 8A 7160 (LCC) whlch repealed u 464.
- Assumlng argumenLl LhaL LC 73 has auLhorlzed Lhe SecreLary Lo lssue Lhe 8egulaLlons, such confermenL of
powers ls vold for belng repugnanL Lo Lhe well-encrusLed docLrlne ln pollLlcal law LhaL Lhe power of LaxaLlon ls
generally vesLed wlLh Lhe leglslaLure.
- eLlLloner: LhaL slnce Cabaluna was responslble for Lhe lssuance and lmplemenLaLlon of 8eglonal Cfflce
Memorandum Clrcular no. 04-89 whlch lmplemenLed Lhe 8egulaLlons, he ls now esLopped from seeklng Lhe
nulllflcaLlon of Lhe 8egulaLlons.
SC: nC.
- lacL LhaL Cabaluna prevlously endorsed lmplemenLaLlon of Lhe 8egulaLlons ls of no momenL, because he
dld lL ln hls capaclLy as Lhe 8eglonal ulrecLor of 8eglonal Cfflce no. vl of Lhe ueparLmenL of llnance ln llollo ClLy. As
such, he was a subordlnaLe of Lhe SecreLary of llnance so LhaL he was duLy bound Lo lmplemenL sub[ecL
regulaLlons. ln Lhls presenL case, however, he ls sulng as a plaln Laxpayer, he havlng already reLlred. Pls offlclal
acLs as 8eglonal ulrecLor could noL have sLrlpped hlm of hls rlghLs as a Laxpayer.
- 1hus, for purposes of compuLaLlon of Lhe real properLy Laxes due from Cabaluna for years 1986-1991,
lncludlng Lhe penalLles and lnLeresLs, Lhe law appllcable ls sLlll Sec. 66 of u 464. 1he penalLy LhaL oughL Lo be
lmposed for dellnquency ln Lhe paymenL of real properLy Laxes should, Lherefore, be 2 of Lhe dellnquenL Lax for
each monLh of dellnquency or fracLlon Lhereof buL ln no case shall Lhe LoLal penalLy exceed 24 of Lhe dellnquenL
Lax. Powever, from 01 !anuary 1992 onwards, Lhe proper basls of Lhe real properLy Lax, lncludlng penalLles and
lnLeresLs, musL now be 8A 7160 (LCC), lnasmuch as Sec. 334 expressly repealed u 464 (81 Code).

8enguet Corp vs. Centra| 8oard of Assessment Appea|s (1992)

IAC1S:
8engueL corporaLlon has bunkhouses used by lLs rank and flle employees for resldenLlal purposes. 1he provlnclal
assessor of 8engueL assessed real properLy Lax on Lhese bunkhouses. Accordlng Lo hlm Lhe Lax exempLlon of Lhe
bunkhouses under u 743 was already removed by u 1933. 1he MAln CCn1Ln1lCn Cl 8LnCuL1 CC8 lS 1PA1
1PL 8LAL1? 1AxLS A8L LCCAL 1AxL 8LCAuSL 1PL? A8L LLvlLu 8? 1PL LCu'S u8SuAn1 1C SLC1lCn 39 Cl u
464.

SecLlon 39 - 1he provlnclal, clLy, or munlclpallLy board or councll shall flx a unlform raLe of real properLy Lax
appllcable Lo Lhelr respecLlve locallLlLes.

8engueL conLends LhaL LCu's are wlLhouL auLhorlLy Lo levy realLy Laxes on mlnes per u 463 and Lhe local Lax code.

ISSULS:
1) WCn Lhe assessor can assess Lhe Lax desplLe Lhe proscrlpLlon ln Lhe local Lax code agalnsL Lhe lmposlLlon of
Laxes by local governmenL unlLs on mlnes.
2) WCn real properLy Lax exempLlon granLed under u 743 was removed by u 1933.

nLLD:
yes Lo boLh lssues, peLlLlon denled.

kA1IC:
Whlle Lhe local governmenL unlLs are charged wlLh flxlng Lhe raLe of real properLy Laxes, lL does noL necessarlly
Ak1 II

34

follow from LhaL auLhorlLy Lhe deLermlnaLlon of wheLher or noL Lo lmpose Lhe Lax. ln facL, local governmenLs have
no alLernaLlve buL Lo collecL Laxes as mandaLed ln sec 38 of Lhe 8eal properLy Lax code as sLaLed ln sec 38 of Lhe
code.

lL ls Lhus clear LhaL lL ls Lhe naLlonal governmenL expresslng lLself Lhrough Lhe leglslaLlve branch LhaL levles Lhe Lax.
ConsequenLly when local governmenLs are requlred Lo flx Lhe raLes, Lhey are merely consLlLuLed as agenLs of Lhe
naLlonal governmenL ln Lhe enforcemenL of Lhe real properLy Lax code. 1he delegaLlon of Lhe Laxlng power ls noL
even lnvolved here because Lhe naLlonal governmenL has already lmposed realLy Lax ln sec 38 leavlng only Lhe
enforcemenL Lo be done by Lhe local governmenLs.

8ealLy Lax ls enforced LhroughouL Lhe hlllpplnes and noL merely ln a parLlcular munlclpallLy or clLy buL Lhe
proceeds of Lhe Lax accrue Lo Lhe provlnce, clLy, munlclpallLy and barrlo where Lhe realLy Laxed ls slLuaLed. ln
conLrasL a local Lax ls lmposed by Lhe munlclpal or clLy councll by vlrLue of Lhe local Lax code.

1he provlslons are a mere llmlLaLlon on Lhe Laxlng powers of Lhe LCu and are noL perLlnenL Lo Lhe lssue ln Lhe case
aL bar. lL cannoL affecL Lhe lmposlLlon of real properLy Lax by Lhe naLlonal governmenL.

Nat|ona| Deve|opment Co. vs. Cebu C|ty

IAC1S:
naLlonal uevelopmenL Company (nuC) ls a CCCC auLhorlzed Lo engage ln commerclal, lndusLrlal, mlnlng,
agrlculLural and oLher enLerprlses necessary or conLrlbuLory Lo economlc developmenL or lmporLanL Lo publlc
lnLeresL. lL also operaLes subsldlary corporaLlons one of whlch ls naLlonal Warehouslng CorporaLlon (nWC).

ln 1939, Lhe resldenL lssued roclamaLlon no. 430 reservlng 8lock no. 4, 8eclamaLlon Area no. 4, of Cebu ClLy for
warehouslng purposes under Lhe admlnlsLraLlon of nWC. ln 1940, a warehouse wlLh a floor area of 1,940 square
meLers more or less, was consLrucLed Lhereon. ln 1947, LC 93 dlssolved nWC wlLh nuC Laklng over lLs asseLs and
funcLlons. ln 1948, Cebu ClLy assessed and collecLed from nuC real esLaLe Laxes on Lhe land and Lhe warehouse
Lhereon. 8y Lhe flrsL quarLer of 1970, a subsLanLlal amounL of Lhe Laxes were pald under proLesL. nuC asked for a
full refund conLendlng LhaL Lhe land and Lhe warehouse belonged Lo Lhe 8epubllc and Lherefore exempL from
LaxaLlon.

ISSUL:
WCn Lhe nuC ls exempL from real esLaLe Laxes

nLLD:
?es, as Lo Lhe land reserved, for Lhe prevlous slx years . no, as Lo Lhe warehouse

1o come wlLhln Lhe amblL of Lhe exempLlon provlded ln ArL. 3, par. (a), of Lhe AssessmenL Law, lL ls lmporLanL Lo
esLabllsh LhaL Lhe properLy ls owned by Lhe governmenL or lLs unlncorporaLed agency, and once governmenL
ownershlp ls deLermlned, Lhe naLure of Lhe use of Lhe properLy, wheLher for proprleLary or soverelgn purposes,
becomes lmmaLerlal. WhaL appears Lo have been ceded Lo nWC ls merely Lhe admlnlsLraLlon of Lhe properLy whlle
Lhe governmenL reLalns ownershlp of whaL has been declared reserved for warehouslng purposes under
roclamaLlon no. 430.

A reserved land ls deflned as a publlc land has been wlLhheld or kepL back from sale or dlsposlLlon". 1he
governmenL does noL parL wlLh lLs LlLle by reservlng Lhem, buL glves noLlce Lo Lhe world LhaL lL deslres Lhem for a
cerLaln purpose AbsoluLe dlsposlLlon of land ls noL lmplled from reservaLlon, lL merely means a wlLhdrawal of a
speclfled porLlon of Lhe publc domaln from dlsposal under Lhe land laws and Lhe approprlaLlon for Lhe Llme belng
Lo some parLlcular use or purpose of Lhe general governmenL."As lLs LlLle remalns wlLh Lhe 8epubllc, Lhe reserved
land ls clearly covered by Lhe Lax exempLlon provlslon.

Ak1 II

33

Land sLlll noL sub[ecL Lo real esLaLe LaxaLlon under Sec 11 of ubllc Land AcL:
-1axable land ls llmlLed only Lo publlc lands LhaL have undergone Lhese modes of dlsposlLlon: PomesLead,
concesslon and conLracL
-noL concesslon because lL enLalls allenaLlon of land, ln Lhls case, land ls sLlll absoluLely owned by Lhe
governmenL.
As Lo warehouse consLrucLed on a publlc reservaLlon, a dlfferenL rule should apply because "[L]he exempLlon of
publlc properLy from LaxaLlon does noL exLend Lo lmprovemenLs on Lhe publlc lands made by pre-empLloners,
homesLeaders and oLher clalmanLs, or occupanLs, aL Lhelr own expense, and Lhese are Laxable by Lhe sLaLe . . ."
Cnly slx years of refund because Lax refund ls ln Lhe naLure of soluLlon lndeblLl whlch has a prescrlpLlve perlod of
only slx years.

rov. of 1ar|ac vs. Iudge A|cantara (1992)

IAC1S:
- 1arlac LnLerprlse, lnc. ls Lhe owner of Lhe followlng properLles: a. A plece of land locaLed aL Mablnl, 1arlac,
1arlac, b. lce urop facLory locaLed aL Mablnl, 1aarlac, 1arlac, c. A machlnery shed locaLed aL Mablnl, 1arlac, 1arlac,
d. A machlnery of uelsel LlecLrlc SeLs-Make MAn Cyllnders 1ype C.u. 4160 Sno. 40336, 226 P.. CeneraLor,
laLed k8u 4263, AC CeneraLor 3328042, L8 MC8CLL 816826, and WorLhlngLon 2901.
- 1he rovlnclal 1reasurer found LhaL real esLaLe Laxes for Lhe years 1974 unLll 1992 ln Lhe amounL of
332,433.33 lncludlng penalLles have noL been pald for Lhe aforemenLloned properLles. 1he company refused Lo
pay afLer repeaLed demands so afLer Lhe lasL demand ln wrlLlng made on uecember 3, 1982, by Lhe rovlnclal
1reasurer, !ose M. Meru, he flled a complalnL for Lhe paymenL of Lhe realLy Laxes amounLlng Lo Lhe
aforemenLloned sum plus damages.
- 1he company flled a moLlon Lo dlsmlss. 8uL Lhe lower courL denled Lhe moLlon. 1hereafLer, Lhe rovlnce
of 1arlac seL Lhe aucLlon sale of 1arlac LnLerprlses' properLles Lo saLlsfy Lhe real esLaLe Laxes due. 1hls prompLed
1arlac LnLerprlses Lo flle a moLlon praylng LhaL Lhe rovlnce be dlrecLed Lo deslsL from proceedlng wlLh Lhe publlc
aucLlon sale. 1he lower courL lssued an order granLlng sald moLlon Lo prevenL mooLness of Lhe case conslderlng
LhaL Lhe properLles Lo be sold are Lhe sub[ecLs of Lhe complalnL.
- 1he company Lhen flled an answer saylng LhaL under SecLlon 40(g) of u46 ln relaLlon Lo u 331, lL was
exempL from paylng sald Lax. 1he courL rendered Lhe declslon dlsmlsslng Lhe complalnL. lL ruled LhaL .u. no. 331
expressly exempLs 1arlac LnLerprlses from paylng Lhe real properLy Laxes demanded, lL belng a granLee of a
franchlse Lo generaLe, dlsLrlbuLe and sell elecLrlc currenL for llghL. 1he courL held LhaL ln lleu of sald Laxes, 1arlac
LnLerprlses had been requlred Lo pay 2 franchlse Lax ln llne wlLh Lhe lnLenL of Lhe law Lo glve asslsLance Lo
operaLors such as Lhe 1arlac LnLerprlses Lo enable Lhe consumers Lo en[oy cheaper raLes. ClLlng Lhe case of 8uLuan
Sawmlll, lnc. v. ClLy of 8uLuan, Lhe courL ruled LhaL local governmenLs are wlLhouL power Lo Lax Lhe elecLrlc
companles already sub[ecL Lo franchlse Lax unless Lhelr franchlse allows Lhe lmposlLlon of addlLlonal Lax.
- Pence, Lhe presenL recourse. eLlLloner conLends LhaL respondenL [udge erred ln: (a) holdlng LhaL prlvaLe
respondenL ls exempL from Lhe paymenL of realLy Lax under .u. no. 331, as amended, (b) rullng under Lhe
auLhorlLy of 8uLuan Sawmlll, lnc v. 8uLuan ClLy, LhaL lL ls wlLhouL power Lo lmpose sald realLy Lax on prlvaLe
respondenL, and (c) dlsmlsslng Lhe complalnL and denylng lLs moLlon for reconslderaLlon of lLs declslon.

ISSUL:
WCn 1arlac LnLerprlses, lnc. ls exempL from Lhe paymenL of real properLy Lax under Sec. 40 (g) of .u. no. 464 ln
relaLlon Lo .u. no. 331, as amended.

kULING:
no

kA1IC:
- Sec. 40(g) of .u. no. 464, Lhe 8eal roperLy 1ax Code, provldes LhaL real properLy a: SLC. 40. LxempLlons
from 8eal roperLy 1ax. - 1he exempLlon shall be as follows: (g) 8eal properLy exempL under oLher laws.
- 1arlac LnLerprlses conLends LhaL Lhe "oLher laws" referred Lo ln Lhls SecLlon ls .u. no. 331 (Lowerlng Lhe
Ak1 II

36

CosL Lo Consumers of LlecLrlclLy by 8educlng Lhe lranchlse 1ax ayable by LlecLrlc lranchlse Polders and Lhe 1arlff
on luel Clls for Lhe CeneraLlon of LlecLrlc ower by ubllc uLlllLles). lLs perLlnenL provlslons sLaLe: SLC1lCn 1. Any
provlslon of law or local ordlnance Lo Lhe conLrary noLwlLhsLandlng, Lhe franchlse Lax payable by all granLees of
franchlses Lo generaLe, dlsLrlbuLe and sell elecLrlc currenL for llghL, heaL and power shall be Lwo (2) of Lhelr gross
recelpLs recelved from Lhe sale of elecLrlc currenL and from LransacLlons lncldenL Lo Lhe generaLlon, dlsLrlbuLlon
- SC held LhaL Lhe phrase "ln lleu of all Laxes and assessmenLs of whaLever naLure" ln Lhe second paragraph
of Sec. 1 of .u. no. 331 does noL expressly exempLs 1arlac LnLerprlses from paylng real properLy Laxes. As
correcLly observed by Lhe rovlnce, sald provlso ls modlfled and dellmlLed by Lhe phrase "on earnlngs, recelpLs.
lncome and prlvllege of generaLlon, dlsLrlbuLlon and sale" whlch speclfles Lhe klnds of Laxes and assessmenLs whlch
shall noL be collecLed ln vlew of Lhe lmposlLlon of Lhe franchlse Lax. Sald enumeraLed lLems upon whlch Laxes shall
noL be lmposed, have no relaLlon aL all Lo, and are enLlrely dlfferenL from real properLles sub[ecL Lo Lax.
- SC also held LhaL lf Lhe lnLenLlon of Lhe law ls Lo exempL elecLrlc franchlse granLees from paylng real
properLy Lax and Lo make Lhe 2 franchlse Lax Lhe only lmposable Lax, Lhen sald enumeraLed lLems would noL have
been added when u 832 was enacLed Lo amend .u. no. 331. 1he leglslaLlve auLhorlLy would have slmply sLopped
afLer Lhe phrase "naLlonal or local auLhorlLy" by puLLlng Lhereln a perlod. Cn Lhe conLrary, lL wenL on Lo enumeraLe
whaL should noL be sub[ecL Lo Lax Lhereby dellmlLlng Lhe exLenL of Lhe exempLlon.
- SC also do noL flnd merlL ln 1arlac LnLerprlses' conLenLlon LhaL Lhe real properLles belng Laxed, vlz., Lhe
machlnery for Lhe generaLlon and dlsLrlbuLlon of elecLrlc power, Lhe bulldlng houslng sald machlnery, and Lhe land
on whlch sald bulldlng ls consLrucLed, are necessary for Lhe operaLlon of lLs buslness of generaLlon, dlsLrlbuLlon
and sale of elecLrlc currenL and, Lherefore, Lhey should be exempLed from LaxaLlon. 1arlac LnLeprlses apparenLly
does noL qulLe comprehend Lhe dlsLlncLlon among Lhe sub[ecL maLLers or ob[ecLs of Lhe Laxes lnvolved. lL bears
emphasls LhaL .u. no. 331 as amended by .u. no. 832 deals wlLh franchlse Lax and Larlff on fuel olls and Lhe
"earnlngs, recelpLs, lncome and prlvllege of generaLlon, dlsLrlbuLlon and sale of elecLrlc currenL" are Lhe lLems
exempLed from LaxaLlon by Lhe lmposlLlon of sald Lax or Larlff duLy. Cn Lhe oLher hand, Lhe collecLlon complalnL
flled by peLlLloner speclfled only Laxes due on real properLles. Whlle .u. no. 331 was lnLended Lo glve "asslsLance
Lo Lhe franchlse holders by reduclng some of Lhelr Lax and Larlff obllgaLlons," Lo consLrue sald decree as havlng
granLed such franchlse holders exempLlon from paymenL of real properLy Lax would unduly exLend Lhe amblL of
exempLlons beyond Lhe purvlew of Lhe law.
- 1he annexes aLLached Lo 1arlac LnLerprlses's commenL on Lhe peLlLlon Lo prove by conLemporaneous
lnLerpreLaLlon lLs clalmed Lax exempLlon are noL of much help Lo lL. ueparLmenL Crder no. 33-74 daLed SepLember
16, 1974 11 regulaLlng Lhe lmplemenLaLlon of .u. no. 331 merely relLeraLes Lhe "ln lleu of all Laxes" provlso. Local
1ax 8egulaLlons no. 3-73 12 lssued by Lhen SecreLary of llnance Cesar vlraLa and addressed Lo all rovlnclal and
ClLy 1reasurers en[olns sLrlcL compllance wlLh Lhe dlrecLlve LhaL "Lhe franchlse Lax lmposed under Local 1ax
Crdlnances pursuanL Lo SecLlon 19 of Lhe Local 1ax Code, as amended, shall be collecLed from buslness holdlng
franchlses buL noL from esLabllshmenLs whose franchlse conLalns Lhe ln lleu of all Laxes' provlso," Lhereby clearly
lndlcaLlng LhaL sald provlso exempLs Laxpayers llke prlvaLe respondenL from paylng Lhe franchlse Lax collecLed by
Lhe provlnces under Lhe Local 1ax Code. LasLly, Lhe leLLer 13 of Lhe Lhen 8ureau of lnLernal 8evenue AcLlng
Commlssloner addressed Lo Lhe MaLlc Law Cfflce granLlng exempLlon Lo Lhe laLLer's cllenL from paylng Lhe
"prlvllege (flxed) Lax whlch ls an exclse Lax on Lhe prlvllege of engaglng ln buslness" clearly excludes realLy Lax from
such exempLlon.
- SC also found Lhe lower courL's rellance on 8uLuan Sawmlll. lnc. v. ClLy of 8uLuan as mlsplaced. ln LhaL
case, Lhe quesLloned Lax ls a Lax on Lhe gross sales or recelpLs of sald sawmlll whlle Lhe Lax lnvolved hereln ls a real
properLy Lax. 1he ClLy of 8uLuan ls caLegorlcally prohlblLed Lhereln by Sec. 2([) of Lhe Local AuLonomy AcL from
lmposlng "Laxes of any klnd . . . on person paylng franchlse Lax." Cn Lhe oLher hand, .u. no. 331 ls noL as all-
encompasslng as sald provlslon of Lhe Local AuLonomy AcL for lL enumeraLes Lhe lLems whlch are noL Laxable by
vlrLue of Lhe paymenL of franchlse Lax.
- lL has always been Lhe rule LhaL "exempLlons from LaxaLlon are consLrued ln sLrlcLlsslml [urls agalnsL Lhe
Laxpayer and llberally ln favor of Lhe Laxlng auLhorlLy" prlmarlly because "Laxes are Lhe llfeblood of governmenL
and Lhelr prompL and cerLaln avallablllLy ls an lmperlous need." 1hus, Lo be exempLed from paymenL of Laxes, lL ls
Lhe Laxpayer's duLy Lo [usLlfy Lhe exempLlon "by words Loo plaln Lo be mlsLaken and Loo caLegorlcal Lo be
mlslnLerpreLed., rlvaLe respondenL has uLLerly falled Lo dlscharge Lhls duLy.
- ueclslon reversed and remanded Lo Lhe lower courL for compuLaLlon of Lhe real properLy Laxes.
Ak1 II

37

12F A>*%$, "' ;MNA 0) )*60")*+ 6*7$,

|mente| vs. Agu|rre (2000)

IAC1S:
Cn 27 uecember 1997, resldenL 8amos lssued AC 372 wlLh Lhe followlng conLenLlous
provlslons:
:&2%*$) = - All governmenL deparLmenLs and agencles, lncludlng SuCs, CCCCs and LCus w|||
|dent|fy and |mp|ement measures |n I 1998 that w||| reduce tota| expend|tures for the year by
at |east 2S of author|zed regu|ar appropr|at|ons for non-personal servlces lLems,

:&2%*$) > - endlng Lhe assessmenL and evaluaLlon of Lhe uevelopmenL 8udgeL CoordlnaLlng
CommlLLee of Lhe emerglng flscal slLuaLlon, the amount equ|va|ent to 10 of the IkA to LGUs
sha|| be w|thhe|d.
Cn 10 uecember 1998, resldenL LsLrada lssued AC 43, amendlng SecLlon 4 of AC 372 by
reduclng Lo 3 Lhe amounL of l8A Lo be wlLhheld

?&%*%*$)&3@- ,348(&)%-'
ln lssulng AC 372, Lhe resldenL exerclsed Lhe power of contro| over LCus when ln facL he only
has Lhe power of genera| superv|s|on, pursuanL Lo Lhe prlnclple of local auLonomy.
1he dlrecLlve Lo wlLhhold 10 of Lhe l8A ls ln conLravenLlon of SecLlon 286 of LCC and SecLlon 6,
ArLlcle x of Lhe ConsLlLuLlon, provldlng for Lhe auLomaLlc release Lo each LCu.

A&-5$).&)%@- ,348(&)%-'
AC 372 was lssued Lo allevlaLe Lhe economlc dlfflculLles broughL abouL by Lhe peso devaluaLlon
and lL was merely an exerclse of Lhe resldenL's power of supervlslon over LCus
lL does noL vlolaLe flscal auLonomy because lL merely dlrecLs Lhe LCus Lo ldenLlfy measures LhaL
wlll reduce Lhelr LoLal expendlLures.
1he wlLhholdlng of 10 of Lhe LCus' l8A does noL vlolaLe Lhe sLaLuLory prohlblLlon slnce lLs
merely Lemporary ln naLure pendlng Lhe assessmenL and evaluaLlon by Lhe u8CC of Lhe emerglng
flscal slLuaLlon.

ISSULS:
1. WCn SecLlon 1 of AC 372 whlch dlrecLs" all LCus Lo reduce Lhelr expendlLures by 23 ls a valld
exerclse of Lhe resldenL's power of general supervlslon over LCus. ?LS
2. WCn SecLlon 4 of AC 372 whlch wlLhholds 10 of Lhe LCus' l8A ls a valld exerclse of Lhe
resldenL's power of general supervlslon over LCus. nC

kA1IC:
LCus have admlnlsLraLlve auLonomy ln Lhe exerclse of Lhelr funcLlons, as well as flscal auLonomy.
llscal auLonomy - LCus have Lhe power Lo creaLe Lhelr own sources of revenue ln addlLlon Lo
Lhelr equlLable share ln Lhe naLlonal Laxes released by Lhe naLlonal governmenL as well as Lhe
power Lo allocaLe Lhelr resources ln accordance wlLh Lhelr prlorlLles.

8equlslLes before Lhe resldenL may lnLerfere ln local flscal maLLers (LCC, SecLlon 284):
1. unmanaged publlc secLor deflclL of Lhe naLlonal governmenL
Ak1 II

38

2. ConsulLaLlons wlLh Lhe presldlng offlcers of Lhe SenaLe and Lhe Pouse of 8epresenLaLlves and Lhe
pres|dents of the var|ous |oca| |eagues
3. Correspondlng recommendaLlon of Lhe secreLarles of uCl, ulLC and u8M
4. Any ad[usLmenL ln Lhe alloLmenL shall ln no case be less Lhan 30 of Lhe collecLlon of naLlonal
lnLernal revenue Laxes of Lhe Lhlrd flscal year precedlng Lhe currenL one

CourL:
8espondenLs falled Lo comply wlLh Lhese requlslLes before Lhe lssuance and lmplanLaLlon of AC
372.
Cn Lhe flrsL lssue, SecLlon 1 ls merely advlsory ln characLer and does noL consLlLuLe a mandaLory
order LhaL lnLerferes wlLh Lhe local auLonomy. lL ls merely an advlsory Lo prevall upon LCLs Lo
recognlze Lhe need for flscal resLralnL ln a perlod of economlc dlfflculLy.
Cn Lhe second lssue, baslc feaLure of local flscal auLonomy ls Lhe automat|c re|ease of Lhe shares
of LCus ln Lhe naLlonal lnLernal revenue(ConsLl, ArLlcle x, Sec. 6). LCC, SecLlon 286 speclfles LhaL
Lhe release shall be made dlrecLly Lo Lhe LCu concerned wlLhln 3 days afLer every quarLer of Lhe
year and sha|| not be sub[ect to any ||en or ho|dback that may be |mposed by the nat|ona|
government for whatever purpose. 1hls wlLhholdlng, alLhough Lemporary, conLravenes Lhe
ConsLlLuLlon and Lhe law slnce lL ls LanLamounL Lo a holdback and any reLenLlon ls prohlblLed.

ulscusslon: :2$5& $0 %/& ?3&-*.&)%@- 5$+&3 $0 4&)&3,1 -85&36*-*$) $6&3 BCD-
ConsLlLuLlon, ArLlcle x, SecLlon 4: 1he resldenL of Lhe hlllpplnes shall exerclse general
supervlslon over local governmenLs."
Superv|s|on Contro|
Cverseelng or Lhe power or Lhe power or
auLhorlLy of any offlcer Lo see LhaL
subordlnaLe offlcers perform Lhelr duLles.
lf Lhey fall, Lhe former may Lake such
acLlon or sLep prescrlbed by law Lo make
Lhem perform Lhelr duLles
ower of an offlcer Lo
- AlLer
- Modlfy
- nulllfy
- SeL aslde
WhaL a subordlnaLe has done ln Lhe
performance of hls duLles and Lo subsLlLuLe
Lhe [udgmenL of Lhe former for Lhe laLLer
Supervlslng offlclals merely see Lo lL LhaL
Lhe rules are followed, buL Lhey
Lhemselves do noL lay down such rules, nor
do Lhey have Lhe dlscreLlon Lo modlfy or
replace Lhem.
Cfflcers ln conLrol lay down Lhe rules ln Lhe
performance or accompllshmenL of an acL.
lf Lhese rules are noL followed, Lhey may
order Lhe acL undone or redone by Lhelr
subordlnaLes.
Peads of pollLlcal subdlvlslons are elecLed
by Lhe people and Lhelr soverelgn powers
emanaLe from Lhe elecLoraLe. 1hey are
sub[ecL Lo Lhe resldenL's supervlslon only,
noL conLrol, as long as Lhelr acLs are
exerclsed wlLhln Lhe sphere of Lhelr
Members of Lhe CablneL and oLher
execuLlve offlclals are alLer egos of Lhe
resldenL and Lhey are sub[ecL Lo hls
power of conLrol
Ak1 II

39

leglLlmaLe powers.
EF%&)% $0 1$2,1 ,8%$)$(7
Local auLonomy slgnlfled a more responslve and accounLable local governmenL sLrucLure
lnsLlLuLed Lhrough a sysLem of decenLrallzaLlon.
uecenLrallzaLlon - devoluLlon of naLlonal admlnlsLraLlon, noL power, Lo local governmenLs. Local
offlclals remaln accounLable Lo Lhe cenLral governmenL as Lhe law may provlde.
noLe: ln Lhe hlllpplnes, only admlnlsLraLlve powers over local affalrs are delegaLed Lo pollLlcal
subdlvlslons Lo make governance more dlrecLly responslve and effecLlve aL Lhe local levels.
Decentra||zat|on of Adm|n|strat|on Decentra||zat|on of ower
CenLral governmenL delegaLes
admlnlsLraLlve powers Lo pollLlcal
subdlvlslons ln order Lo broaden Lhe base
of governmenL power and make local
governmenLs more responslve and
accounLable.
1hls lnvolves an abdlcaLlon of pollLlcal
power ln Lhe favor of LCus declared Lo be
auLonomous.
resldenL exerclses general supervlslon Lo
ensure LhaL local affalrs are admlnlsLered
accordlng Lo law.
1hls amounLs Lo self-lmmolaLlon slnce Lhe
auLonomous governmenL becomes
accounLable noL Lo Lhe cenLral auLhorlLles
buL Lo lLs consLlLuency.

E2 1 HO*6$P$)6 "' Q-0,*)4$

Lstate of Gregor|a Iranc|sco vs. CA

IAC1S:
A quonseL was consLrucLed by Amerlcan LlberaLlon lorces on a loL owned by hlllpplne orLs AuLhorlLy (A).
Cregorla lranclsco boughL a quonseL bulldlng ln 1946 and used lL for sLorage of copra. She dled 1976. ln 1989, A
lssued a permlL Lo occupy Lhe loL for a year, unLll uecember 1989. Powever, ln May 1989, Mayor valencla senL Lwo
leLLers orderlng Cregorla's survlvlng spouse, 1an Cln San, Lo remove or relocaLe Lhe quonseL by vlrLue of Crdlnance
147, esLabllshlng Comprehenslve Zonlng 8egulaLlons for MunlclpallLy of lsabela, whlch provldes for clean-up
campalgn on lllegal squaLLers and unsanlLary surroundlngs along SLrong 8oulevard". uue Lo 1an's lnacLlon, Lhe
mayor ordered Lhe demollLlon of Lhe quonseL. 1an soughL for WrlL of rellmlnary ln[uncLlon.

81C upheld Lhe power of of Lhe mayor Lo order Lhe demollLlon wlLhouL [udlclal auLhorlLy ln accordance wlLh Lhe
ordlnance. CA lnlLlally ruled LhaL Lhe Mayor was noL vesLed wlLh Lhe power Lo order summary demollLlon buL upon
reconslderaLlon flled by Lhe mayor, laLer afflrmed Lhe 81C declslon and dlsmlssed Lhe case.

ISSUL:
WheLher or noL Lhe mayor could order Lhe demollLlon of Lhe quonseL wlLhouL [udlclal process? nC

kA1IC:
1. 1he mayor cannoL clalm auLhorlLy Lo summarlly abaLe nulsance under Lhe general welfare clause of Lhe Local
CovernmenL Code. 1hls only applles Lo nulsance per se or one whlch affecLs Lhe lmmedlaLe safeLy of persons and
Ak1 II

60

properLy and may be summarlly abaLed under Lhe undeflned law of necesslLy.
.
WheLher or noL a sLrucLure ls nulsance per se can only be ad[udged by [udlclal deLermlnaLlon. ln Lhls case Lhe courL
held LhaL,
- 1he sLorage of copra ln Lhe quonseL bulldlng ls a leglLlmaLe buslness. 8y lLs naLure, lL can noL be
sald Lo be ln[urlous Lo rlghLs of properLy, of healLh or of comforL of Lhe communlLy.
- 1an was ln lawful possesslon by vlrLue of Lhe permlL from A and was noL squaLLlng on publlc
land
- lL was noL of Lrlfllng value
- 1an was enLlLled Lo an lmparLlal hearlng Lo declde lf lL be a nulsance per se or per accldens
- 1here was no compelllng necesslLy for Lhe summary abaLemenL

2. 1o consLrue Sec 16 of Crdlnance 47 as auLhorlzlng Lhe summary removal of non conformlng sLrucLures, such as
Lhe quonseL whlch was bullL ouLslde Lhe zone for warehouses, would be null and vold for vlolaLlng Lhe
requlremenLs of due process.

3. 1he Crdlnance provldes for a [udlclal remedy ln Lhe enforcemenL of Lhe sald provlslon. 1he Zonlng AdmlnlsLraLor
may call upon Lhe flscal Lo lnsLlLuLe Lhe proper legal proceedlngs. lrom Lhls, lL ls clear LhaL Lhe mayor cannoL order
Lhe removal of Lhe sLrucLure wlLhouL [udlclal process.

4. 1he vlolaLlon of Lhe ordlnance does noL empower Lhe mayor Lo avall of exLra-[udlclal remedles. Cn Lhe conLrary,
Lhe Local CovernmenL Code also lmposes Lhe duLy upon hlm Lo cause Lo be lnsLlLuLes [udlclal proceedlngs ln
connecLlon of ordlnances. 1he Mayor and hls offlclals Lranscended Lhelr auLhorlLy.

SC relnsLaLed Lhe case Lo deLermlne [usL compensaLlon.

1echno|ogy Deve|opers, Inc v. CA (1991)

IAC1S:
1echnology uevelopers (a corporaLlon engaged ln Lhe manufacLure and exporL of charcoal brlqueLLe), recelved a
leLLer from acLlng mayor ablo Cruz: 1) orderlng Lhe full cessaLlon of lLs planL ln Cuyong, SLa. Marla, 8ulacan unLll
furLher order, and 2) requesLlng lLs lanL Manager Lo brlng before Lhe offlce of Lhe mayor lLs bulldlng permlL,
mayor's permlL, and 8eglon lll-olluLlon of LnvlronmenL and naLural 8esources AnLl-olluLlon ermlL. 1echnology
uevelopers underLook Lo comply wlLh Lhe requesL Lo produce Lhe requlred documenLs. lL soughL Lo secure Lhe
8eglon lll-olluLlon of LnvlronmenL and naLural 8esources AnLl-olluLlon ermlL (noLe: prlor Lo Lhe operaLlon of
Lhe planL, a 1emporary ermlL Lo CperaLe Alr olluLlon lnsLallaLlon was lssued Lo 1echnology uevelopers) and Lhe
mayor's permlL, buL as Lo Lhe laLLer, Lhe offlce of Lhe mayor dld noL enLerLaln lL. LvenLually, Lhe acLlng mayor
ordered LhaL Lhe planL premlses be padlocked, effecLlvely causlng Lhe sLoppage of operaLlon. 1hls was done
wlLhouL prevlous and reasonable noLlce. 1echnology uevelopers Lhen lnsLlLuLed an acLlon for cerLlorarl,
prohlblLlon and mandamus wlLh prellmlnary ln[uncLlon agalnsL Lhe acLlng mayor wlLh 8ulacan 81C, alleglng LhaL
Lhe closure order was lssued ln grave abuse of dlscreLlon. 1he 81C found LhaL Lhe lssuance of Lhe wrlL of
prellmlnary mandaLory ln[uncLlon was proper, orderlng Lhe acLlng mayor Lo lmmedlaLely revoke hls closure order
and allow 1echnology uevelopers Lo resume lLs normal buslness operaLlons unLll Lhe case has been ad[udlcaLed on
Lhe merlLs. upon M8, Lhe rovlnclal rosecuLor presenLed evldence as Lo Lhe allegaLlon LhaL "uue Lo Lhe
manufacLurlng process and naLure of raw maLerlals used, Lhe fumes comlng from Lhe facLory may conLaln
parLlculaLe maLLers whlch are hazardous Lo Lhe healLh of Lhe people. As such, Lhe company should cease operaLlng
unLll such a Llme LhaL Lhe proper alr polluLlon devlce ls lnsLalled and operaLlonal." 8eassesslng Lhe evldence, Lhe
81C seL aslde lLs order granLed Lhe wrlL of prellmlnary mandaLory ln[uncLlon. 1he CA denled 1echnology
ueveloper's peLlLlon for cerLlorarl for lack of merlL.

ISSUL:
W/n Lhe acLlng mayor had a legal ground for orderlng Lhe sLoppage of 1echnology ueveloper
Ak1 II

61

nLLD:
?LS 1) no mayor's permlL had been secured. Whlle lL ls Lrue LhaL Lhe maLLer of deLermlnlng wheLher Lhere ls a
polluLlon of Lhe envlronmenL LhaL requlres conLrol lf noL prohlblLlon of Lhe operaLlon of a buslness ls essenLlally
addressed Lo Lhe L Lhe LnvlronmenLal ManagemenL 8ureau of Lhe ueparLmenL of LnvlronmenL and naLural
8esources, lL musL be recognlzed LhaL Lhe mayor of a Lown has as much responslblllLy Lo proLecL lLs lnhablLanLs
from polluLlon, and by vlrLure of hls pollce power, he may deny Lhe appllcaLlon for a permlL Lo operaLe a buslness
or oLherwlse close Lhe same unless approprlaLe measures are Laken Lo conLrol and/or avold ln[ury Lo Lhe healLh of
Lhe resldenLs of Lhe communlLy from Lhe emlsslons ln Lhe operaLlon of Lhe buslness. 2) noLe: 1here was acLually
facLual bases for Lhe acLlon of Lhe acLlng mayor. a) Pe called Lhe aLLenLlon of 1echnology uevelopers Lo Lhe facL
LhaL lLs planL was emlLLlng fumes whose offenslve odor "noL only polluLe Lhe alr ln Lhe locallLy buL also affecL Lhe
healLh of Lhe resldenLs ln Lhe area," so LhaL peLlLloner was ordered Lo sLop lLs operaLlon unLll furLher orders and
compllance wlLh Lhe documenLary requlremenLs. b) 1here had been complalnLs from Lhe resldenLs of Lhe area
dlrecLlng Lo Lhe rovlnclal Covernor. 1he four-page peLlLlon, on Lhe whole, was slgned by dlfferenL persons. c) 1he
Closure Crder was lssued only afLer an lnvesLlgaLlon was made by Marlvlc Culna, whlch found LhaL Lhe fumes
emlLLed by Lhe planL goes dlrecLly Lo Lhe surroundlng houses and LhaL no proper alr polluLlon devlce has been
lnsLalled. d) 1echnology uevelopers dld noL even have a bulldlng permlL from Lhe munlclpallLy of SLa. Marla. e) 1he
1emporary permlL glven Lo 1echnology uevelopers was good only up Lo May 1988. 1hereafLer, 1echnology
uevelopers dld noL even exerL Lhe efforL Lo exLend or valldaLe lLs permlL, much less lnsLall any devlce Lo conLrol
and prevenL any hazard Lo Lhe healLh of Lhe resldenLs of Lhe communlLy. LasL noLe: concomlLanL wlLh Lhe need Lo
promoLe lnvesLmenL and conLrlbuLe Lo Lhe growLh of Lhe economy ls Lhe equally essenLlal lmperaLlve of proLecLlng
Lhe healLh, nay Lhe very llves of Lhe people, from Lhe deleLerlous effecL of Lhe polluLlon of Lhe envlronmenL.
eLlLlon uenled

Laguna Lake Deve|opment Author|ty vs. CA, 2S1 SCkA 421 (199S)

IAC1S:
- 8A 4830 was enacLed creaLlng Lhe "Laguna Lake uevelopmenL AuLhorlLy." 1hls agency was supposed Lo
acceleraLe Lhe developmenL and balanced growLh of Lhe Laguna Lake area and Lhe surroundlng provlnces, clLles
and Lowns, ln Lhe acL, wlLhln Lhe conLexL of Lhe naLlonal and reglonal plans and pollcles for soclal and economlc
developmenL.
- u 813 amended cerLaln secLlons 8A 4830 because of Lhe concern for Lhe rapld expanslon of
MeLropollLan Manlla, Lhe suburbs and Lhe lakeshore Lowns of Laguna de 8ay, comblned wlLh currenL and
prospecLlve uses of Lhe lake for munlclpal-lndusLrlal waLer supply, lrrlgaLlon, flsherles, and Lhe llke.
- 1o effecLlvely perform Lhe role of Lhe AuLhorlLy under 8A 4830, Lhe Chlef LxecuLlve lssued LC 927 furLher
deflned and enlarged Lhe funcLlons and powers of Lhe AuLhorlLy and named and enumeraLed Lhe Lowns, clLles and
provlnces encompassed by Lhe Lerm "Laguna de 8ay 8eglon". Also, perLlnenL Lo Lhe lssues ln Lhls case are Lhe
followlng provlslons of LC 927 whlch lnclude ln parLlcular Lhe sharlng of fees:
- Sec 2: xxx Lhe AuLhorlLy shall have excluslve [urlsdlcLlon Lo lssue permlL for Lhe use of all surface waLer for
any pro[ecLs or acLlvlLles ln or affecLlng Lhe sald reglon lncludlng navlgaLlon, consLrucLlon, and operaLlon of
flshpens, flsh enclosures, flsh corrals and Lhe llke.
- 1hen came 8epubllc AcL no. 7160. 1he munlclpallLles ln Lhe Laguna Lake 8eglon lnLerpreLed Lhe provlslons
of Lhls law Lo mean LhaL Lhe newly passed law gave munlclpal governmenLs Lhe excluslve [urlsdlcLlon Lo lssue
flshlng prlvlleges wlLhln Lhelr munlclpal waLers because 8.A. 7160 provldes: "Sec. 149. llshery 8enLals, lees and
Charges (a) MunlclpallLles shall have Lhe excluslve auLhorlLy Lo granL flshery prlvlleges ln Lhe munlclpal waLers and
lmpose renLal fees or charges Lherefor ln accordance wlLh Lhe provlslons of Lhls SecLlon.
- Munlclpal governmenLs Lhereupon assumed Lhe auLhorlLy Lo lssue flshlng prlvlleges and flshpen permlLs.
8lg flshpen operaLors Look advanLage of Lhe occaslon Lo esLabllsh flshpens and flshcages Lo Lhe consLernaLlon of
Lhe AuLhorlLy. unregulaLed flshpens and flshcages occupled almosL one-Lhlrd Lhe enLlre lake waLer surface area,
lncreaslng Lhe occupaLlon drasLlcally from 7,000 ha ln 1990 Lo almosL 21,000 ha ln 1993. 1he Mayor's permlL Lo
consLrucL flshpens and flshcages were all underLaken ln vlolaLlon of Lhe pollcles adopLed by Lhe AuLhorlLy on
flshpen zonlng and Lhe Laguna Lake carrylng capaclLy.
Ak1 II

62

- ln vlew of Lhe foregolng clrcumsLances, Lhe AuLhorlLy served noLlce Lo Lhe general publlc LhaL:
1. All flshpens, flshcages and oLher aqua-culLure sLrucLures ln Lhe Laguna de 8ay 8eglon, whlch
were noL reglsLered or Lo whlch no appllcaLlon for reglsLraLlon and/or permlL has been flled wlLh
Laguna Lake uevelopmenL AuLhorlLy as of March 31, 1993 are hereby declared ouLrlghLly as
lllegal.
2. All flshpens, flshcages and oLher aqua-culLure sLrucLures so declared as lllegal shall be sub[ecL
Lo demollLlon whlch shall be underLaken by Lhe resldenLlal 1ask lorce for lllegal llshpen and
lllegal llshlng.
3. Cwners of flshpens, flshcages and oLher aqua-culLure sLrucLures declared as lllegal shall,
wlLhouL pre[udlce Lo demollLlon of Lhelr sLrucLures be crlmlnally charged ln accordance wlLh
SecLlon 39-A of 8epubllc AcL 4830 as amended by .u. 813 for vlolaLlon of Lhe same laws.
vlolaLlons of Lhese laws carrles a penalLy of lmprlsonmenL of noL exceedlng 3 years or a flne noL
exceedlng llve 1housand esos or boLh aL Lhe dlscreLlon of Lhe courL.
- All operaLors of flshpens, flshcages and oLher aqua-culLure sLrucLures declared as lllegal ln accordance
wlLh Lhe foregolng noLlce shall have one (1) monLh on or before 27 CcLober 1993 Lo show cause before Lhe LLuA
why Lhelr sald flshpens, flshcages and oLher aqua-culLure sLrucLures should noL be demollshed/dlsmanLled."
- Cne monLh, LhereafLer, Lhe AuLhorlLy senL noLlces Lo Lhe concerned owners of Lhe lllegally consLrucLed
flshpens, flshcages and oLher aqua-culLure sLrucLures advlslng Lhem Lo dlsmanLle Lhelr respecLlve sLrucLures wlLhln
10 days from recelpL Lhereof, oLherwlse, demollLlon shall be effecLed.
- 1he flshpen owners flled ln[uncLlon cases agalnsL Lhe LLuA.
- 1he LLuA flled moLlons Lo dlsmlss Lhe cases agalnsL lL on [urlsdlcLlonal grounds.
- 1he moLlons Lo dlsmlss were denled. Meanwhlle, 18C/wrlLs of prellmlnary mandaLory ln[uncLlon were
lssued en[olnlng Lhe LLuA from demollshlng Lhe flshpens and slmllar sLrucLures ln quesLlon. Pence, Lhe presenL
peLlLlon for cerLlorarl, prohlblLlon and ln[uncLlon. 1he CA dlsmlssed Lhe LLuA's consolldaLed peLlLlons. lL ruled LhaL
(A) LLuA ls noL among Lhose quasl-[udlclal agencles of governmenL appealable only Lo Lhe CourL of Appeals, (8) Lhe
LLuA charLer does vesL LLuA wlLh quasl-[udlclal funcLlons lnsofar as flshpens are concerned, (C) Lhe provlslons of
Lhe LLuA charLer lnsofar as flshlng prlvlleges ln Laguna de 8ay are concerned had been repealed by Lhe Local
CovernmenL Code of 1991, (u) ln vlew of Lhe aforesald repeal, Lhe power Lo granL permlLs devolved Lo respecLlve
local governmenL unlLs concerned.
- LLuA flled a peLlLlon for cerLlorarl and prohlblLlon ln Lhe SC

ISSUL:
Whlch agency of Lhe CovernmenL - Lhe LLuA or Lhe Lowns and munlclpallLles comprlslng Lhe reglon - should
exerclse [urlsdlcLlon over Lhe Laguna Lake and lLs envlrons lnsofar as Lhe lssuance of permlLs for flshery prlvlleges ls
concerned?

nLLD:
LLuA

kA1IC:
lL has Lo be conceded LhaL Lhe charLer of Lhe LLuA consLlLuLes a speclal law. 8A 7160 ls a general law. lL ls baslc ls
baslc ln sLaLuLory consLrucLlon LhaL Lhe enacLmenL of a laLer leglslaLlon whlch ls a general law cannoL be consLrued
Lo have repealed a speclal law. lL ls a well-seLLled rule ln Lhls [urlsdlcLlon LhaL "a speclal sLaLuLe, provlded for a
parLlcular case or class of cases, ls noL repealed by a subsequenL sLaLuLe, general ln lLs Lerms, provlslons and
appllcaLlon, unless Lhe lnLenL Lo repeal or alLer ls manlfesL, alLhough Lhe Lerms of Lhe general law are broad
enough Lo lnclude Lhe cases embraced ln Lhe speclal law." Where Lhere ls a confllcL beLween a general law and a
speclal sLaLuLe, Lhe speclal sLaLuLe should prevall slnce lL evlnces Lhe leglslaLlve lnLenL more clearly LhaL Lhe general
sLaLuLe. 1he speclal law ls Lo be Laken as an excepLlon Lo Lhe general law ln Lhe absence of speclal clrcumsLances
forclng a conLrary concluslon. 1hls ls because lmplled repeals are noL favored and as much as posslble, glven Lo all
enacLmenLs of Lhe leglslaLure. A speclal law cannoL be repealed, amended or alLered by a subsequenL general law
by mere lmpllcaLlon.

Ak1 II

63

Conslderlng Lhe reasons behlnd Lhe esLabllshmenL of Lhe AuLhorlLy, whlch are envlromenLal proLecLlon,
navlgaLlonal safeLy, and susLalnable developmenL, Lhere ls every lndlcaLlon LhaL Lhe leglslaLlve lnLenL ls for Lhe
AuLhorlLy Lo proceed wlLh lLs mlsslon.

1hus, Lhe SC holds LhaL SecLlon 149 of 8A 7160, oLherwlse known as Lhe Local CovernmenL Code of 1991, has noL
repealed Lhe provlslons of Lhe charLer of Lhe LLuA, 8epubllc AcL no. 4830, as amended. 1hus, Lhe AuLhorlLy has Lhe
excluslve [urlsdlcLlon Lo lssue permlLs for Lhe en[oymenL of flshery prlvlleges ln Laguna de 8ay Lo Lhe excluslon of
munlclpallLles slLuaLed Lhereln and Lhe auLhorlLy Lo exerclse such powers as are by lLs charLer vesLed on lL.

12R !"#$% "' LP0)$)6 S"P*0)8

Moday et a| v. CA (1997)

IAC1S:
- ln 1989, Sanggunlang 8ayan of Lhe MunlclpallLy of 8unawan ln Agusan del Sur passed 8esoluLlon no. 43-
89, "AuLhorlzlng Lhe Munlclpal Mayor Lo lnlLlaLe Lhe eLlLlon for LxproprlaLlon of a Cne (1) PecLare orLlon of LoL
no. 6138-ls-4 Along Lhe naLlonal Plghway Cwned by erclval Moday for Lhe SlLe of 8unawan larmers CenLer and
CLher CovernmenL SporLs laclllLles."
- 1hls resoluLlon was approved by Lhen Munlclpal Mayor 8usLlllo and was LransmlLLed Lo Lhe Sanggunlang
anlalawlgan for lLs approval.
- Powever, Sanggunlang anlalawlgan dlsapproved sald 8esoluLlon reasonlng LhaL exproprlaLlon ls
unnecessary conslderlng LhaL Lhere are sLlll avallable loLs ln 8unawan for Lhe esLabllshmenL of Lhe governmenL
cenLer.
- neverLheless, MunlclpallLy flled a peLlLlon for LmlnenL uomaln agalnsL Lhe Modays.
- MunlclpallLy also flled a MoLlon Lo 1ake or LnLer upon Lhe ossesslon of Sub[ecL MaLLer of 1hls Case
sLaLlng LhaL lL had already deposlLed wlLh Lhe munlclpal Lreasurer Lhe necessary amounL ln accordance wlLh
SecLlon 2, 8ule 67 of Lhe 8evlsed 8ules of CourL and LhaL lL would be ln Lhe governmenL's besL lnLeresL for publlc
respondenL Lo be allowed Lo Lake possesslon of Lhe properLy.
- 81C granLed respondenL munlclpallLy's moLlon Lo Lake possesslon of Lhe land holdlng LhaL Lhe
Sanggunlang anlalawlgan's fallure Lo declare Lhe resoluLlon lnvalld leaves lL effecLlve. 1he duLy of Lhe Sanggunlang
anlalawlgan ls merely Lo revlew Lhe ordlnances and resoluLlons passed by Lhe Sanggunlang 8ayan under SecLlon
208 (1) of 8.. 8lg. 337, old Local CovernmenL Code and LhaL Lhe exerclse of emlnenL domaln ls noL one of Lhe Lwo
acLs enumeraLed ln SecLlon 19 Lhereof requlrlng Lhe approval of Lhe Sanggunlang anlalawlgan.
- Moday's Ml8 was denled, hence, he elevaLed Lhe case ln a peLlLlon for cerLlorarl alleglng grave abuse of
dlscreLlon on Lhe parL of Lhe Lrlal courL.
- CA dlsmlssed Lhe same holdlng LhaL LhaL Lhe publlc purpose for Lhe exproprlaLlon ls clear from 8esoluLlon
no. 43-89 and LhaL slnce Lhe Sanggunlang anlalawlgan of Agusan del Sur dld noL declare 8esoluLlon no. 43-89
lnvalld, exproprlaLlon of Modays' properLy could proceed. Ml8 llkewlse denled.
- MunlclpallLy of 8unawan had erecLed Lhree bulldlngs on Lhe sub[ecL properLy: Lhe AssoclaLlon of 8arangay
Counclls (A8C) Pall, Lhe Munlclpal MoLorpool, boLh wooden sLrucLures, and Lhe 8unawan Munlclpal Cymnaslum,
whlch ls made of concreLe.
- Moday flled Lhe lnsLanL peLlLlon for revlew seeklng Lhe reversal of Lhe declslon and resoluLlon of Lhe CA
and a declaraLlon LhaL 8esoluLlon no. 43-89 of Lhe MunlclpallLy ls null and vold.
- CourL lssued a 18C en[olnlng and resLralnlng Lhe [udge from enforclng her order granLlng possesslon of
Lhe land Lo munlclpallLy and munlclpallLy from uslng and occupylng all Lhe bulldlngs consLrucLed and from furLher
consLrucLlng any bulldlng on Lhe land sub[ecL of Lhls peLlLlon.
- CourL also lssued a 8esoluLlon clLlng lncumbenL munlclpal Mayor 8usLlllo for conLempL, orderlng hlm Lo
pay Lhe flne and Lo demollsh Lhe "blockLlendas" whlch were bullL ln vlolaLlon of Lhe resLralnlng order.

ISSULS:
1. WCn a munlclpallLy may exproprlaLe prlvaLe properLy by vlrLue of a munlclpal resoluLlon whlch was
Ak1 II

64

dlsapproved by Lhe Sanggunlang anlalawlgan
2. WCn Lhe exproprlaLlon was pollLlcally moLlvaLed and 8esoluLlon no. 43-89 was correcLly dlsapproved by
Lhe Sanggunlang anlalawlgan, Lhere belng oLher munlclpal properLles avallable for Lhe purpose
3. WCn former Mayor 8usLlllo ls llable Lo pay damages for lnslsLlng on Lhe enforcemenL of a vold munlclpal
resoluLlon

nLLD:
1. ?LS. LmlnenL domaln, Lhe power whlch Lhe MunlclpallLy of 8unawan exerclsed, ls a fundamenLal SLaLe
power LhaL ls lnseparable from soverelgnLy. lL ls governmenL's rlghL Lo approprlaLe, ln Lhe naLure of a compulsory
sale Lo Lhe SLaLe, prlvaLe properLy for publlc use or purpose. lnherenLly possessed by Lhe naLlonal leglslaLure, Lhe
power of emlnenL domaln may be valldly delegaLed Lo local governmenLs, oLher publlc enLlLles and publlc uLlllLles.
lor Lhe Laklng of prlvaLe properLy by Lhe governmenL Lo be valld, Lhe Laklng musL be for publlc use and Lhere musL
be [usL compensaLlon.

1he MunlclpallLy of 8unawan's power Lo exerclse Lhe rlghL of emlnenL domaln ls noL dlspuLed as lL ls expressly
provlded for ln Sec. 9 of 8 337, Lhe local CovernmenL Code ln force aL Lhe Llme exproprlaLlon proceedlngs were
lnlLlaLed.

1he Sanggunlang anlalawlgan's dlsapproval of Munlclpal 8esoluLlon no. 43-89 ls an lnflrm acLlon whlch does noL
render sald resoluLlon null and vold. 1he law, as expressed ln SecLlon 133 of 8.. 8lg. 337, granLs Lhe Sanggunlang
anlalawlgan Lhe power Lo declare a munlclpal resoluLlon lnvalld on Lhe sole ground LhaL lL ls beyond Lhe power of
Lhe Sanggunlang 8ayan or Lhe Mayor Lo lssue.

As held ln velazco vs 8las, 1he only ground upon whlch a provlnclal board may declare any munlclpal resoluLlon,
ordlnance, or order lnvalld ls when such resoluLlon, ordlnance, or order ls 'beyond Lhe powers conferred upon Lhe
councll or presldenL maklng Lhe same'. 1he provlnclal board's dlsapproval of any resoluLlon, ordlnance, or order
musL be premlsed speclflcally upon Lhe facL LhaL such resoluLlon, ordlnance, or order ls ouLslde Lhe scope of Lhe
legal powers conferred by law. lf a provlnclal board passes Lhese llmlLs, lL usurps Lhe leglslaLlve funcLlon of Lhe
munlclpal councll or presldenL."

1hus, Lhe Sanggunlang anlalawlgan was wlLhouL Lhe auLhorlLy Lo dlsapprove Munlclpal 8esoluLlon no. 43-89 for
Lhe MunlclpallLy of 8unawan clearly has Lhe power Lo exerclse Lhe rlghL of emlnenL domaln and lLs Sanggunlang
8ayan Lhe capaclLy Lo promulgaLe sald resoluLlon, pursuanL Lo Lhe Sec 9 of 8.. 8lg. 337. 1hus, lL follows LhaL
8esoluLlon no. 43-89 ls valld and blndlng and could be used as lawful auLhorlLy Lo peLlLlon for Lhe condemnaLlon of
Modays' properLy.

2. nC. 1he llmlLaLlons on Lhe power of emlnenL domaln are LhaL Lhe use musL be publlc, compensaLlon musL
be made and due process of law musL be observed. 1he necesslLy of exerclslng emlnenL domaln musL be genulne
and of a publlc characLer. CovernmenL may noL caprlclously choose whaL prlvaLe properLy should be Laken.

AfLer a careful sLudy of Lhe records of Lhe case, SC found no evldenLlary supporL for Modays' allegaLlons. 1he
uncerLlfled phoLocopy of Lhe skeLch plan does noL concluslvely prove LhaL Lhe munlclpallLy does own vacanL land
ad[acenL Lo Modays' properLy sulLed Lo Lhe purpose of Lhe exproprlaLlon. ln Lhe quesLloned declslon, respondenL
appellaLe courL slmllarly held LhaL Lhe pleadlngs and documenLs on record have noL polnLed ouL any of respondenL
munlclpallLy's "oLher avallable properLles avallable for Lhe same purpose."

3. nC. Slnce Lhe accusaLlons of pollLlcal reprlsal are llkewlse unsupporLed by compeLenL evldence, SC held
LhaL Modays' demand LhaL Lhe former munlclpal mayor be personally llable for damages ls wlLhouL basls.

rov. Cf Camar|nes Sur v. Court of Appea|s (1993)

Ak1 II

63

IAC1S:
- 8esoluLlon 129 s. 1988 was passed by Lhe Sanggunlang anlalawlgan of Cam Sur auLhorlzlng Lhe rovlnclal
Covernor Lo exproprlaLe prlvaLe properLy conLlguous Lo Lhe provlnclal caplLol slLe ln order Lo esLabllsh a plloL farm
for non-food ad non-LradlLlonal agrlculLural crops and a houslng pro[ecL for provlnclal employees.

- An exproprlaLlon peLlLlon was flled by Lhe rov. Cf Cam Sur (CS) agalnsL prlvaLe owners LrnesLo and
Lfren San !oaquln. 1he 81C ruled ln favor of Lhe CS:
o lL denled Lhe moLlon Lo dlsmlss flled by Lhe San !oaqulns
o CranLed Lhe moLlon Lo lssue wrlL of possesslon and auLhorlzed Lhe CS Lo Lake possesslon wlLh Lhe
condlLlon Lo posL a bond
- When lL was elevaLed Lo Lhe CA, lL:
o seL aslde Lhe order of Lhe Lrlal courL allowlng CS Lo Lake possesslon of Lhe prlvaLe properLles
o lL ordered Lhe Lrlal courL Lo suspend Lhe exproprlaLlon proceedlng unLll CS shall have submlLLed
Lhe requlslLe approval of Lhe ueparLmenL of Agrarlan 8eform Lo converL Lhe reclasslflcaLlon.
o 1he rullng of Lhe CA assumed LhaL Lhe resoluLlon was valld and LhaL Lhe exproprlaLlon was for
publlc purpose.
- CS assalls Lhe declslon of Lhe CA

ISSULS:
1. WCn, Lhe exproprlaLlon was for a publlc purpose. ?LS
2. WCn, CS needs Lhe approval of Lhe uA8. nC

nLLD:
eLlLlon ls C8An1Lu. 1he purpose for whlch Lhe exproprlaLlon ls made pursuanL Lo saLlsfles Lhe consLlLuLlonal
requlremenL of law and LhaL Lhe CS ls wlLhln lLs llmlLed delegaLed power Lo exproprlaLe such properLy noL sub[ecL
Lo Lhe approval of Lhe ueparLmenL of AgrlculLure.

kA1IC:
1. 1he esLabllshmenL of a loL developmenL cenLer would lnure Lo Lhe dlrecL beneflL and advanLage of Lhe
people of CS. Llkewlse Lhe houslng pro[ecL saLlsfles Lhe publlc purpose requlremenL of Lhe ConsLlLuLlon clLlng:
Sumulong v Cuerrero: Pouslng ls a baslc human need. ShorLage ln houslng ls a maLLer of sLaLe concern slnce lL
dlrecLly and slgnlflcanLly affecLs publlc healLh , safeLy and envlronmenL and ln sum Lhe general welfare of Lhe
people.

1here has been a shlfL from Lhe llLeral lnLerpreLaLlon of publlc purpose/use for whlch Lhe power of emlnenL
domaln may be exerclsed. under Lhe new concepL lL means publlc advanLage, convenlence or beneflL whlch Lends
Lo conLrlbuLe Lo Lhe general welfare of Lhe communlLy.

2. 1he power of exproprlaLlon ls superlor Lo Lhe power Lo dlsLrlbuLe lands under Lhe land reform program,
clLlng !uancho Ardana v 8eyes.
1he CA slded wlLh Lhe Sol Cen who ln effecL denlgraLed Lhe power Lo exproprlaLe by CS by sLresslng LhaL Lhe
power ls only delegaLed. noL Laklng lnLo conslderaLlon LhaL such llmlLaLlon was noL clearly expressed ln law. lL musL
be remembered LhaL sLaLuLes conferrlng power of emlnenL domaln Lo pollLlcal subdlvlslons cannoL be broadened
or consLrlcLed by lmpllcaLlon."

AlLhough local governmenLs do noL have lnherenL power of emlnenL domaln and can exerclse lL only when
expressly auLhorlzed by leglslaLure, and Lhe laLLer may reLaln cerLaln conLrol or lmpose cerLaln resLralnLs on Lhe
exerclse Lhereof, such delegaLed power alLhough llmlLed lL ls compleLe wlLhln lLs llmlLs. noLhlng ln Lhe LCC llmlLs
Lhls power by requlrlng Lhe approval of uA8. Llkewlse, Lhere ls noLhlng ln CA8 law whlch expressly sub[ecLs such
exproprlaLlons under Lhe conLrol of uA8.

Ak1 II

66

8arangay San koque vs. ne|rs of astor (2000)

IAC1S:
eLlLloners flled before Lhe M1C of 1allsay Cebu a ComplalnL Lo exproprlaLe Lhe properLy of respondenLs. 1hls
complalnL was dlsmlssed by Lhe M1C for lack of [urlsdlcLlon over Lhe sub[ecL maLLer of Lhe complalnL. 1he M1C
reasoned LhaL ln an acLlon for emlnenL domaln Lhe prlnclpal cause of acLlon ls Lhe exerclse of such rlghL and LhaL
[urlsdlcLlon lles wlLh Lhe 81C.

1he 81C subsequenLly also dlsmlssed Lhe complalnL saylng LhaL an acLlon for emlnenL domaln lnvolved LlLle Lo real
properLy. Pence, lL ls Lhe value of Lhe properLy Lo be exproprlaLed LhaL would deLermlne Lhe proper courL where
Lhe case should be flled. (Lhe value of Lhe properLy was 1,740php.)

1he peLlLloners Lhen appealed Lo Lhe SC.

ISSUL:
Whlch courL has [urlsdlcLlon over cases for emlnenL domaln or exproprlaLlon where Lhe assessed value of Lhe
sub[ecL properLy ls below 20k?

nLLD:
1he 81C
1. An exproprlaLlon sulL ls one LhaL ls lncapable of pecunlary esLlmaLlon (lL).
2. ln deLermlnlng wheLher a sulL ls one LhaL ls lL, one musL flrsL ascerLaln Lhe naLure of Lhe prlnclpal acLlon
or Lhe remedy soughL. lf lL ls prlmarlly for Lhe recovery of a sum of money, Lhe clalm ls capable of pecunlary
esLlmaLlon.
3. 8uL lf lL ls noL for recovery of Lhe sum of money or lf Lhe money clalm ls purely lncldenLal, Lhe sulL falls
wlLhln excluslvely wlLhln Lhe [urlsdlcLlon of Lhe courLs of flrsL lnsLance.
4. An exproprlaLlon sulL does noL lnvolve Lhe recovery of a sum of money. lL deals wlLh Lhe exerclse by Lhe
governmenL of lLs auLhorlLy and rlghL Lo Lake prlvaLe properLy for publlc use.
3. nC vs. !ocson: LxproprlaLlon proceedlngs have Lwo phases:
a) Concerned wlLh Lhe deLermlnaLlon of Lhe plalnLlff Lo exerclse Lhe power of emlnenL domaln and Lhe
proprleLy of lLs exerclse
b) Concerned wlLh Lhe lssue of [usL compensaLlon
6. 1he prlmary conslderaLlon ln an exproprlaLlon sulL ls wheLher Lhe governmenL has complled wlLh Lhe
requlremenLs for Laklng of prlvaLe properLy.
1he value of Lhe properLy ls merely lncldenLal Lo Lhe exproprlaLlon sulL.

Mun. of aranaque vs. V.M. kea|ty Corp

IAC1S:
1he Sanggunlang 8ayan of Lhe munlclpallLy of aranaque passed 8esoluLlon no. 93-93, serles of 1993 auLhorlzlng
Lhe local chlef execuLlve Lo lnlLlaLe exproprlaLlon proceedlngs agalnsL vM 8ealLy. vM realLy ls Lhe owner of Lwo
parcels of land soughL Lo be exproprlaLed by Lhe munlclpallLy. 1he sald loLs were Lo be used for Lhe munlclpallLy's
soclallzed houslng pro[ecL for Lhe homeless. 1he 81C gave due course Lo Lhe complalnL and upon moLlon, allowed
Lhe munlclpallLy Lo enLer Lhe premlses afLer paymenL of 13 of Lhe falr markeL value of Lhe properLy.

vM realLy flled lLs answer, ralslng Lhe followlng afflrmaLlve defenses: 1. 1he complalnL ls barred by res
[udlcaLa (ln connecLlon wlLh an earller resoluLlon whlch led Lo Lhe offer by Lhe munlclpallLy Lo enLer lnLo a
negoLlaLed sale wlLh vM realLy) 2. 1he complalnL falled Lo sLaLe a cause of acLlon because Lhe auLhorlLy of Lhe local
chlef execuLlve was based upon a resoluLlon and noL an ordlnance.

1he poslLlon of Lhe munlclpallLy ls LhaL a resoluLlon and an ordlnance are synonymous for Lhe purposes of
Ak1 II

67

lnlLlaLlng an exproprlaLlon proceedlng. Moreover, under ArLlcle 36 of 8ule vl of Lhe l88 of LCC, whaL ls requlred ls a
resoluLlon and noL an ordlnance.

1he 81C dlsmlssed Lhe complalnL whlch was afflrmed by Lhe CA. Pence, Lhe recourse Lo Lhe SC.

ISSUL:
WCn a local governmenL unlL may exerclse Lhe power of emlnenL domaln Lhrough a resoluLlon.

nLLD:
no. SecLlon 19 of Lhe LCC expressly requlres LhaL an ordlnance musL be passed auLhorlzlng Lhe local chlef
execuLlve Lo lnlLlaLe exproprlaLlon proceedlngs.

kA1IC:
1he power of emlnenL domaln ls leglslaLlve ln naLure. Congress granLed LCus Lhe power Lo exerclse lL,
sub[ecL Lo resLralnLs and llmlLaLlons. Sec.19 of Lhe LCC lays down Lhe parameLers for Lhe exerclse Lhereof. under
Lhe sald provlslon, Lhe followlng musL be complled wlLh before exproprlaLlon may be had:
1. an ordlnance ls enacLed by Lhe local leglslaLlve councll
2. Lhe exerclse of emlnenL domaln ls for Lhe publlc use, publlc purpose or welfare or for Lhe beneflL of Lhe
poor and Lhe landless
3. [usL compensaLlon musL be pald
4. Lhere musL have been a prevlous valld and deflnlLe offer made Lo Lhe owner of Lhe properLy whlch Lhe
laLLer denled

ln Lhls case, Lhe flrsL requlremenL was noL complled wlLh. A resoluLlon ls dlfferenL from an ordlnance. An ordlnance
ls a law whlle a resoluLlon ls merely a declaraLlon of Lhe LCu's senLlmenL or oplnlon on a speclflc maLLer.
1he munlclpallLy cannoL rely on Lhe words of ArLlcle 36, 8ule vl of Lhe l88 because lL cannoL conLradlcL Lhe law LhaL
lL seeks Lo lmplemenL. Moreover, Lhe use of Lhe word resoluLlon" ln Lhe sald l88 appears Lo be mere overslghL.
noneLheless, Lhe LCu may opL Lo comply wlLh Lhe requlremenLs and Lhen lnlLlaLe anoLher exproprlaLlon
proceedlng.

kULING:
eLlLlon ls denled.

C|ty of Cebu vs. CA (1996)

IAC1S:
MerllLa Cardeno ls Lhe owner of a parcel of land ln SlLlo SLo. nlno, Alaska-Mamballng, Cebu ClLy. Cn lebruary 23,
1992, Lhe ClLy CovernmenL of Cebu flled a complalnL for emlnenL domaln agalnsL Cardeno wlLh Lhe 81C seeklng Lo
exproprlaLe Lhe sald parcel of land. 1he complalnL was lnlLlaLed pursuanL Lo 8esoluLlon no. 404 and Crdlnance no.
1418 of Lhe Sanggunlang anlungsod of Cebu ClLy auLhorlzlng Lhe ClLy Mayor Lo exproprlaLe Lhe sald parcel of land
for Lhe purpose of provldlng a soclallzed houslng pro[ecL for Lhe landless and low-lncome clLy resldenLs.

Cardeno flled a moLlon Lo dlsmlss on Lhe ground of lack of cause of acLlon for fallure Lo comply wlLh condlLlon
precedenL of a valld and deflnlLe offer" seL forLh ln SecLlon 19 of 8A 7160. 1here had been negoLlaLlons for Lhe
purchase of Lhe properLy wlLhouL resorLlng Lo exproprlaLlon, buL sald negoLlaLlons falled. Cardeno conLended by
deflnlLlon, "negoLlaLlons run Lhe whole range of acLs preparaLory Lo concludlng an agreemenL, from Lhe
prellmlnary correspondence, Lhe flxlng of Lhe Lerms of Lhe agreemenL, Lhe prlce, Lhe mode of paymenL, obllgaLlons
of (slc) Lhe parLles may concelve as necessary Lo Lhelr agreemenL." 1hus, "negoLlaLlons" by lLself may perLaln Lo
any of Lhe foregolng and does noL auLomaLlcally mean Lhe maklng of "a valld and deflnlLe offer."

1he 81C dlsmlssed Lhe complalnL. 1he CA afflrmed Lhe rullng of Lhe 81C. Accordlng Lo Lhe CA an allegaLlon of
repeaLed negoLlaLlons made wlLh Lhe prlvaLe respondenL for Lhe purchase of her properLy by Lhe peLlLloner,
Ak1 II

68

"cannoL by any sLreLch of lmaglnaLlon, be equaLed or llkened Lo Lhe clear and speclflc requlremenL LhaL Lhe
peLlLloner should have prevlously made a valld and deflnlLe offer Lo purchase." lL furLher added LhaL Lhe Lerm
"negoLlaLlon" whlch necessarlly lmplles uncerLalnLy, lL conslsLlng of acLs Lhe purpose of whlch ls Lo arrlve aL a
concluslon, may noL be percelved Lo mean Lhe valld and deflnlLe offer conLemplaLed by law.

ISSUL:
WCn exproprlaLlon may be granLed

kA1IC:
1he Supreme CourL ruled LhaL Lhe complalnL sLaLe a cause of acLlon. 1he CourL sald LhaL a complalnL should noL be
dlsmlssed upon a mere amblgulLy, lndeflnlLeness or uncerLalnLy of Lhe cause of acLlon sLaLed Lhereln for Lhese are
noL grounds for a moLlon Lo dlsmlss buL raLher for a blll of parLlculars. ln oLher words, a complalnL should noL be
dlsmlssed for lnsufflclency unless lL appears clearly from Lhe face of Lhe complalnL LhaL Lhe plalnLlff ls noL enLlLled
Lo any rellef under any sLaLe of facLs whlch could be proved wlLhln Lhe facLs alleged Lhereln.

1he error of boLh Lhe 81C and respondenL CourL of Appeals ln holdlng LhaL Lhe complalnL falled Lo sLaLe a cause of
acLlon sLems from Lhelr lnflexlble appllcaLlon of Lhe rule LhaL: when Lhe moLlon Lo dlsmlss ls based on Lhe ground
LhaL Lhe complalnL sLaLes no cause of acLlon, no evldence may be allowed and Lhe lssue should only be deLermlned
ln Lhe llghL of Lhe allegaLlons of Lhe complalnL. Powever, Lhls rule ls noL wlLhouL excepLlons. 1he Lrlal courL may
conslder, ln addlLlon Lo Lhe complalnL, oLher pleadlngs submlLLed by Lhe parLles ln decldlng wheLher or noL Lhe
complalnL should be dlsmlssed for lack of cause of acLlon.

ln Lhe case aL bar, Lhe peLlLloner also lncorporaLed ln Lhelr complalnL for emlnenL domaln a copy of Crdlnance no.
1418. A perusal of Lhe copy of sald ordlnance whlch has been annexed Lo Lhe complalnL shows LhaL Lhe facL of
peLlLloner's havlng made a prevlous valld and deflnlLe offer Lo prlvaLe respondenL ls caLegorlcally sLaLed Lhereln.
1hus, Lhe second whereas clause of Lhe sald ordlnance provldes as follows:

1he clLy governmenL has made a valld and deflnlLe offer Lo purchase sub[ecL loL(s) for Lhe publlc use
aforemenLloned buL Lhe reglsLered owner Mrs. MerllLa Cardeno has re[ecLed such offer.

1he foregolng showed LhaL Lhe peLlLloner had ln facL complled wlLh Lhe condlLlon precedenL of "a valld and
deflnlLe offer" seL forLh ln Sec. 19 of 8.A. 7160.

Iranc|a vs. Mun. of Meycauyan (2008)

IAC1S:
- 8espondenL munlclpallLy flled a complalnL for LxproprlaLlon agalnsL peLlLloners ln Lhe 81C of 8ulacan
- lL planned Lo esLabllsh a common publlc Lermlnal for all Lypes of uvs wlLh a welghlng scale for heavy
Lrucks
- 1he properLy ls a 16,236 sq. m. ldle land aL Lhe [uncLlon of norLh Lxpressway, Malhacan-lba-Camallg maln
road arLery, and Lhe MacArLhur Plghway.
- eLlLloners:
o roperLy ls noL raw land, ln facL lL ls developed
o 1he offered prlce of Lhe munlclpallLy ls Loo low (111.99/sq. m. or a LoLal of 2,333,300)
- 81C: LxproprlaLlon was for a publlc purpose
o 1he common Lermlnal for all uvs would lmprove Lhe flow of Lrafflc durlng rush hours
o 1he properLy ls besL sulLed because of lLs accesslblllLy
o CranLs lmmedlaLe possesslon Lo munlclpallLy slnce deposlLed 13 of lMv based on currenL Lax
declaraLlons
- CA: arLlal granL for peLlLloners
o eLlLloners were deprlved of opporLunlLy Lo conLroverL respondenL's allegaLlons
o Crder of exproprlaLlon nulllfled, buL noL Lhe WrlL of ossesslon
Ak1 II

69

o Wo - musL be glven upon Lhe deposlL of Lhe requlred amounL. no hearlng ls necessary.
- eLlLloners' conLenLlons ln Lhe SC: Lhere ls a need for prlor deLermlnaLlon of publlc purpose ln Lhe
lssuance of a Wo

ISSULS]nLLD:
1. WCn prlor deLermlnaLlon of publlc purpose ls needed for Lhe lssuance of a Wo? no.
- Sec. 19 of 8A 7160 sLaLes:
SecLlon 19. LmlnenL uomaln. A local governmenL unlL may, Lhrough lLs chlef execuLlve and
acLlng pursuanL Lo an ordlnance, exerclse Lhe power of emlnenL domaln for publlc use, or purpose,
or welfare for Lhe beneflL of Lhe poor and Lhe landless, upon paymenL of [usL compensaLlon,
pursuanL Lo Lhe provlslons of Lhe ConsLlLuLlon and perLlnenL laws, rovlded, however, 1haL Lhe
power of emlnenL domaln may noL be exerclsed unless a valld and deflnlLe offer has been
prevlously made Lo Lhe owner, and LhaL such offer was noL accepLed, rovlded, furLher, 1haL Lhe
local governmenL unlL may lmmedlaLely Lake possesslon of Lhe properLy upon Lhe flllng of Lhe
exproprlaLlon proceedlngs and upon maklng a deposlL wlLh Lhe proper courL of aL leasL flfLeen
percenL (13) of Lhe falr markeL value of Lhe properLy based on Lhe currenL Lax declaraLlon of Lhe
properLy Lo be exproprlaLed, rovlded, flnally, 1haL, Lhe amounL Lo be pald for Lhe exproprlaLed
properLy shall be deLermlned by Lhe proper courL, based on Lhe falr markeL value aL Lhe Llme of Lhe
Laklng of Lhe properLy. (emphasls supplled)
- 8equlremenLs for an LCu for lL Lo enLer lnLo possesslon of a properLy:
o llle a complalnL for exproprlaLlon sufflclenL ln form and ln subsLance
o ueposlL wlLh Lhe courL aL leasL 13 of Lhe properLy's lMv based on lLs currenL Lax declaraLlon
- 1he law does nC1 make Lhe deLermlnaLlon of a publlc purpose a condlLlon precedenL Lo Lhe lssuance of a
Wo

ne|rs of Ardona v. keyes (1983)

IAC1S:
1he hlllpplne 1ourlsm AuLhorlLy flled complalnLs wlLh Lhe Cll of Cebu ClLy Lo exproprlaLe 282 hecLares of rolllng
land ln several barangays ln Cebu for Lhe developmenL lnLo lnLegraLed resorL complexes of selecLed and well-
deflned geographlc areas wlLh poLenLlal Lourlsm value." 1he 1A wanLs Lo consLrucL a sporLs complex, club house,
golf course, playground and plcnlc areas on sald land. lurLhermore, an elecLrlc power grld as well as a deep well
and dralnage sysLem wlll also be consLrucLed. CompllmenLary sporL faclllLles such as malls, coffee shops, eLc. wlll
be creaLed ln Lhe sald area.

1he defendanLs argue LhaL Lhe Laklng ls (1) noL lmpressed wlLh publlc use" conLemplaLed under Lhe ConsLlLuLlon,
(2) LhaL Lhe land was covered by Lhe land reform program and LhaL [urlsdlcLlon of Lhe case should be wlLh Lhe
CourL of Agrarlan 8elaLlons and noL wlLh Lhe Cll, and (3) LhaL Lhe exproprlaLlon would lmpalr Lhe obllgaLlon of
conLracLs.

1he 1A deposlLed wlLh Lhe n8 an amounL equlvalenL Lo 10 of Lhe value of Lhe properLles pursuanL Lo u 1333.
1hereafLer, Lhe Cll lssued separaLe orders auLhorlzlng 1A Lo Lake lmmedlaLe possesslon of Lhe premlses and
dlrecLlng Lhe lssuance of wrlLs of possesslon. Pence, Lhls appeal.

ISSUL:
WCn Lhere ls compllance wlLh Lhe publlc use" requlremenL under Lhe ConsLlLuLlon

nLLD]kA1IC:
?LS. 1he concepL of publlc use ls noL llmlLed Lo LradlLlonal purposes such as Lhe consLrucLlon of roads, waLerworks,
schools, markeLs, eLc. 1he ldea LhaL publlc use ls sLrlcLly llmlLed Lo clear cases of use by Lhe publlc" has long been
dlscarded. Accordlng Lo C! lernando ln hls book enLlLled 1he ConsLlLuLlon of Lhe hlllpplnes sLaLed LhaL Lhe
sLaLuLory and [udlclal Lrend ls LhaL as long as Lhe purpose of Lhe Laklng ls publlc, Lhen Lhe power of emlnenL
Ak1 II

70

domaln comes lnLo play.

1he peLlLloners argue LhaL Lourlsm ls noL a specles of publlc use because lL ls noL found ln Lhe ConsLlLuLlon. 1he
CourL held LhaL Lhe pollcy ob[ecLlves of Lhe framers can be expressed only ln general Lerms such as soclal [usLlce,
local auLonomy, conservaLlon and developmenL of Lhe naLlonal paLrlmony, publlc lnLeresL, and general welfare,
among oLhers. 1he programs Lo achleve Lhese ob[ecLlves vary from Llme Lo Llme and accordlng Lo place. 1o freeze
speclflc programs llke 1ourlsm lnLo express consLlLuLlonal provlslons would make Lhe ConsLlLuLlon more prollx Lhan
a bulky code and requlre of Lhe framers presclence beyond uelphlc proporLlons. 1he parLlcular menLlon ln Lhe
ConsLlLuLlon of agrarlan reform and Lhe Lransfer of uLlllLles and oLher prlvaLe enLerprlses Lo publlc ownershlp
merely underscores Lhe magnlLude of Lhe problems soughL Lo be remedled by Lhese programs. 1hey do noL
preclude nor llmlL Lhe exerclse of Lhe power of emlnenL domaln for such purposes llke Lourlsm and oLher
developmenL programs.

1he peLlLloners' conLenLlon LhaL Lhe promoLlon of Lourlsm ls noL "publlc use" because prlvaLe concessloners would
be allowed Lo malnLaln varlous faclllLles such as resLauranLs, hoLels, sLores, eLc. lnslde Lhe LourlsL complex ls
lmpressed wlLh even less merlL. rlvaLe bus flrms, Laxlcab fleeLs, roadslde resLauranLs, and oLher prlvaLe
buslnesses uslng publlc sLreeLs end hlghways do noL dlmlnlsh ln Lhe leasL blL Lhe publlc characLer of exproprlaLlons
for roads and sLreeLs.

Moreover, Lhe CourL also sald LhaL Lhe peLlLloners have falled Lo overcome Lhe deference LhaL ls approprlaLely
accorded Lo formulaLlons of naLlonal pollcy expressed ln leglslaLlon. 1he uS case of 8erman v. arker of deference
Lo leglslaLlve pollcy even lf such pollcy mlghL mean Laklng from one prlvaLe person and conferrlng on anoLher
prlvaLe person ls also appllcable ln Lhe hlllpplnes. 1he case menLloned LhaL Lhe publlc end may be as well or
beLLer served Lhrough an agency of prlvaLe enLerprlse Lhan Lhrough a deparLmenL of governmenL-or so Lhe
Congress mlghL conclude. We cannoL say LhaL publlc ownershlp ls Lhe sole meLhod of promoLlng Lhe publlc
purposes of communlLy redevelopmenL pro[ecLs." Moreover, hlllpplne cases such as vlsayan 8eflnlng Co. vs.
Camus shows LhaL from Lhe very sLarL of consLlLuLlonal governmenL ln our counLry [udlclal deference Lo leglslaLlve
pollcy has been clear and manlfesL ln emlnenL domaln proceedlngs.

1he expresslon of naLlonal pollcy are found ln u 364 or Lhe revlsed 1A CharLer whereln lL was sald LhaL lL ls Lhe
avowed alm of Lhe hlllpplne governmenL Lo promoLe Lourlsm and work for lLs acceleraLed and balanced growLh.
SecLlon 1 of Lhe revlsed 1A CharLer furLher sLaLes LhaL lL ls Lhe pollcy of Lhe SLaLe Lo promoLe, encourage, and
develop hlllpplne Lourlsm as an lnsLrumenL ln acceleraLlng Lhe developmenL of Lhe counLry, of sLrengLhenlng Lhe
counLry's forelgn exchange reserve poslLlon, and of proLecLlng hlllpplne culLure, hlsLory, LradlLlons and naLural
beauLy, lnLernaLlonally as well as domesLlcally." LasLly, Lhe power of emlnenL domaln ls expressly provlded under
SecLlon 3 8(2) of Lhe CharLer Lo achleve Lhe aforemenLloned SLaLe pollcy.

I||stream Internat|ona| Inc. vs. CA(1998)

IAC1S:
lllsLream lnLernaLlonal ls Lhe reglsLered owner of ad[acenL loLs ln 1ondo,Manlla wlLh a LoLal area of 3,371 square
meLers.

An e[ecLmenL sulL was flled by lllsLream ln 7 !anuary 1993 agalnsL prlvaLe respondenLs/resldenLs on Lhe grounds of
LermlnaLlon of Lhe lease conLracL and non-paymenL of renLals. M1C, 81C and CA ruled ln favor of lllsLream,
orderlng prlvaLe respondenLs Lo vacaLe Lhe loLs. 1he declslon became flnal and execuLory as no furLher acLlon was
Laken beyond Lhe CA. 1he M1C subsequenLly lssued a wrlL of execuLlon as well as a noLlce Lo vacaLe, boLh of whlch
were assalled by Lhe prlvaLe respondenLs alleglng LhaL supervenlng evenLs had Laken place.

Alleged supervenlng evenLs:
- ClLy of Manlla approved Crdlnance no. 7813 auLhorlzlng Mayor Llm Lo lnlLlaLe Lhe acqulslLlon by legal
means of cerLaln parcels of land lncludlng a large parL of Lhe land owned by lllsLream.
Ak1 II

71

- ClLy of Manlla approved Crdlnance no. 7833 declarlng Lhe exproprlaLlon of cerLaln loLs owned by Lnrlque
CuLlerrez, lllsLream's predecessor-ln-lnLeresL. 1he loLs were Lo be sold and dlsLrlbuLed Lo quallfled LenanLs.
- ClLy of Manlla flled a complalnL for emlnenL domaln on 23 May 1994 (roughly 3 monLhs prlor Lo CA
declslon) seeklng Lo exproprlaLe lllsLream's loLs. A wrlL of possesslon was subsequenLly lssued by Lhe 81C ln favor
of Lhe ClLy of Manlla.

lllsLream's moLlon Lo dlsmlss and lLs moLlon Lo quash Lhe wrlL of possesslon were denled by Lhe 81C ln 30
SepLember 1994. WlLh lLs moLlon for reconslderaLlon denled ln Lhe 81C, lllsLream flled a peLlLlon for cerLlorarl wlLh
Lhe CA whlch was also dlsmlssed for belng lnsufflclenL ln form and subsLance. lllsLream Lhus flled a (1sL peLlLlon)
peLlLlon for cerLlorarl under 8ule 43 wlLh Lhe SC.

M1C denled Lhe moLlon Lo quash wrlL of execuLlon flled by Lhe prlvaLe respondenLs ln Lhe flrsL case, and, ln 22 Aprll
1996, lssued an order commandlng Lhe demollLlon of Lhe sLrucLure erecLed on Lhe dlspuLed loLs. 1he demollLlon,
however, was averLed when Lhe 81C lssued a 18C en[olnlng Lhe execuLlon of Lhe wrlL lssued by Lhe M1C ln
response Lo a peLlLlon for cerLlorarl and prohlblLlon flled by Lhe prlvaLe respondenLs. A laLLer peLlLlon for cerLlorarl
and prohlblLlon flled ln Lhe 81C by Lhe ClLy of Manlla was subsequenLly consolldaLed wlLh Lhe prlvaLe respondenL's
peLlLlon.

1he consolldaLed peLlLlons pendlng ln Lhe 81C were laLer dlsmlssed for vlolaLlon of SC Clrcular no. 04-94 (forum
shopplng) because Lhe same parLles, causes of acLlon and sub[ecL maLLer lnvolved Lhereln had already been
dlsposed of ln Lhe earller e[ecLmenL case. upon peLlLlon of Lhe defeaLed parLles, Lhe CA lssued a 18C orderlng Lhe
M1C Lo deslsL from lmplemenLlng Lhe order of demollLlon.

1hus, a (2nd peLlLlon) peLlLlon for cerLlorarl and prohlblLlon under 8ule 63 was flled wlLh Lhe SC by lllsLream
assalllng Lhe CA's resoluLlon granLlng Lhe 18C agalnsL Lhe demollLlon.

ISSULS]nLLD:
1. WCn ClLy of Manlla may exerclse rlghL of emlnenL domaln desplLe Lhe exlsLence of a flnal and execuLory
[udgmenL orderlng prlvaLe respondenLs Lo vacaLe Lhe loLs.

?LS. 1he ClLy of Manlla has an undenlable rlghL Lo exerclse lLs power of emlnenL domaln wlLhln lLs [urlsdlcLlon. 1he
rlghL Lo exproprlaLe prlvaLe properLy for publlc use ls expressly granLed under Sec 19 of Lhe Local CovL Code. Sec
100 of Lhe 8evlsed CharLer of Lhe ClLy of Manlla furLher empowers Lhe clLy governmenL Lo exproprlaLe prlvaLe
properLy ln Lhe pursulL of lLs urban land reform and houslng program. 1he clLy's rlghL Lo exerclse Lhese
prerogaLlves noLwlLhsLandlng Lhe exlsLence of a flnal and execuLory [udgmenL over Lhe properLy Lo be
exproprlaLed had already been prevlously upheld by Lhe courL ln Lhe case of hlllpplne Columblan AssoclaLlon vs
anls ln 21 uecember 1993.

2. WCn exproprlaLlon of lllsLream's loLs were legally and valldly underLaken.

nC. Local governmenL unlLs are noL glven an unbrldled auLhorlLy when exerclslng Lhelr power of emlnenL domaln.
ConsLlLuLlonal provlslons on due process and [usL compensaLlon for Lhe exproprlaLlon of prlvaLe properLy musL be
complled wlLh. CLher laws have also seL down speclflc rules ln Lhe exerclse of Lhe power of emlnenL domaln, Lo
wlL,
- Sec 19 of LCC provldes LhaL such exerclse musL be pursuanL Lo Lhe provlslons of Lhe ConsLlLuLlon and
perLlnenL laws.
- Sec 9 of Lhe urban uevelopmenL and Pouslng AcL of 1992 (uuPA) provldes an order ofprlorlLy ln Lhe
acqulslLlon of land for soclallzed houslng, wlLh prlvaLe lands llsLed as Lhe lasL opLlon.
- Sec 10 of uuPA provldes LhaL exproprlaLlon shall be resorLed Lo only when oLher modes of acqulslLlon
such as communlLy morLgage, land swapplng, donaLlon Lo Lhe governmenL, eLc. have been exhausLed, and, where
exproprlaLlon ls resorLed Lo, parcels of land owned by small properLy owners shall be exempLed.

Ak1 II

72

Compllance wlLh Lhe above leglslaLed condlLlons are deemed mandaLory because Lhese are Lhe only safeguards ln
securlng Lhe rlghL of owners of prlvaLe properLy Lo uuL 8CCLSS when Lhelr properLy ls exproprlaLed for publlc
use.

1he courL found noLhlng ln Lhe records whlch would lndlcaLe LhaL Lhe ClLy of Manlla complled wlLh Lhe above
condlLlons. 1here was Lhus a vlolaLlon of peLlLloner lllsLream's rlghL Lo due process ln Lhe manner by whlch Lhe
exproprlaLlon of lLs prlvaLe properLy was underLaken by Lhe ClLy of Manlla.

CA resoluLlons upholdlng Lhe exproprlaLlon and resLralnlng Lhe demollLlon were reversed and seL aslde.

Lesson |n a Nutshe||
1he power of emlnenL domaln may be exerclsed desplLe Lhe exlsLence of a flnal and execuLory declslon recognlzlng
a prlvaLe parLy's ownershlp rlghLs over a parcel of land, 8u1 due process requlremenLs musL be complled wlLh ln
Lhe exerclse of Lhe sald power.

nagonoy Market Vendors Assn. Vs. Mun. of nagonoy, 8u|acan (2002)

IAC1S:
- Cn CcL. 1, 1996, Lhe Sangunlang 8ayan of Pagonoy, 8ulacan enacLed an ordlnance, kauLusan 8lg. 28
whlch lncreased Lhe sLall renLals of markeL vendors ln Pagonoy. ArL.3 provlded LhaL lL shall Lake effecL upon
approval.
- 1he sub[ecL ordlnance was posLed from nov. 4-23, 1996. ln Lhe lasL week of nov. 1997, Lhe peLlLloner's
members were personally glven coples of Lhe approved Crdlnance and were lnformed LhaL lL shall be enforced ln
!an. 1998.
- Cn uec. 8, 1997, Lhe peLlLloner's resldenL flled an appeal wlLh Lhe SecreLary of !usLlce assalllng Lhe
consLlLuLlonallLy of Lhe Lax ordlnance.
- eLlLloner clalmed lL was unaware of Lhe posLlng of Lhe ordlnance.
- 8espondenL opposed Lhe appeal. lL conLended LhaL Lhe ordlnance Look effecL on CcLober 6, 1996 and LhaL
Lhe ordlnance, as approved, was posLed as requlred by law. Pence, lL was polnLed ouL LhaL peLlLloner's appeal,
made over a year laLer, was already Llme-barred.
- 1he SecreLary of !usLlce dlsmlssed Lhe appeal on Lhe ground LhaL lL was flled ouL of Llme - beyond Lhe 30
days from Lhe effecLlvlLy of Lhe Crdlnance on CcL. 1, 1996 as prescrlbed under Sec.187 of Lhe 1991 LCC.
- AfLer lLs moLlon for reconslderaLlon was denled, peLlLloner appealed Lo Lhe CA, clalmlng Lhe Sec. erred
and should have overlooked Lhe LechnlcallLy and ruled on lLs peLlLlon on Lhe merlLs.
- CA dlsmlssed lLs peLlLlon for belng formally deflclenL as lL was noL accompanled by cerLlfled Lrue coples of
Lhe assalled 8esoluLlons of Lhe Sec. of !usLlce.

ISSULS:
1. Won Lhe peLlLlon Lo Lhe CourL of Appeals was formally deflclenL as lL was noL accompanled by cerLlfled
Lrue coples of Lhe assalled 8esoluLlons of Lhe Sec. of !usLlce. nC.

- 1he peLlLloner lnslsLs LhaL lL had good reasons for lLs fallure Lo comply wlLh Lhe rule and Lhe CA erred ln
refuslng Lo accepL lLs explanaLlon.
- 1hls CourL agrees wlLh Lhe peLlLloner. lL ls clear from Lhe records LhaL Lhe peLlLloner exerLed due dlllgence
Lo geL Lhe coples of lLs appealed 8esoluLlon cerLlfled by Lhe uepL. of !usLlce buL falled Lo do so on accounL of
Lyphoon Loleng.

2. Won Lhe peLlLlon Lo Lhe uC! SecreLary should be dlsmlssed for belng Llme-barred. ?LS.

- noneLheless, Lhe CourL held LhaL Lhe peLlLlon should be dlsmlssed as Lhe appeal of Lhe peLlLloner wlLh Lhe
Sec. of !usLlce was already Llme-barred.
- Sec. 187 of Lhe 1991 LCC sLaLes LhaL an appeal of a Lax ordlnance or revenue measure should be made Lo
Ak1 II

73

Lhe Sec. of !usLlce wlLhln 30 days from Lhe effecLlvlLy of Lhe assalled ordlnance shall noL be suspended.
- ln Lhe case aL bar, Mun. Crd, no. 28 Look effecL ln CcL. 1996. eLlLloner flled lLs appeal only ln uec. 1997.
1he perlods sLaLed ln Sec. 187 LCC are mandaLory. 8elng a revenue measure, Lhe collecLlon of whlch ls of
paramounL lmporLance Lhus lL ls essenLlal LhaL Lhe valldlLy of revenue measures ls noL lefL uncerLaln for a
conslderable lengLh of Llme.

3. Won Lhe ordlnance ls unconsLlLuLlonal for lacklng Lhe requlremenL of mandaLory publlc hearlng. nC.

- eLlLloners cannoL grlpe LhaL Lhere was pracLlcally no publlc hearlng conducLed as lLs ob[ecLlons Lo Lhe
proposed measure were noL consldered by Lhe Sangunlang 8ayan. lndeed, Lhey parLlclpaLed ln Lhe sald publlc
hearlng.
- ubllc hearlngs are conducLed by leglslaLlve bodles Lo allow lnLeresLed parLles Lo venLllaLe Lhelr vlews on a
proposed law or ordlnance. Powever, Lhe vlews are noL blndlng on Lhe leglslaLlve body and lL ls noL compelled by
law Lo adopL Lhe same.

4. Won Lhe ordlnance ls unconsLlLuLlonal for lacklng Lhe requlremenL of mandaLory publlcaLlon or posLlng,
hence Lhey were unaware of Lhe approval and effecLlvlLy of Lhe ordlnance. nC.
- 1he records ls berefL of any evldence Lo prove peLlLloner's negaLlve allegaLlon LhaL Lhe sub[ecL ordlnance
was noL posLed as requlred by law.
- Munlclpal Crdlnace no. 28 was enacLed by Lhe Sanggunlang 8ayan of Pagonoy on CcLover 1, 1996.
- 1hen AcLlng Munlclpal Mayor Marla Carcla SanLos approved Lhe Crdlnance on CcLober 7, 1996.
- AfLer lLs approval, coples of Lhe Crdlnance were glven Lo Lhe Munlclpal 1reasurer on Lhe same day.
- Cn november 9, 1996, Lhe Crdlnance was approved by Lhe Sanggunlang anlalawlgan.
- 1he Crdlnance was posLed durlng Lhe perlod from nov. 4-23, 1996 ln Lhree (3) publlc places, vlz.: ln fronL
of Lhe munlclpal bulldlng, aL Lhe bulleLln board of Lhe SLa. Ana arlsh Church and on Lhe fronL door of Lhe Cfflce of
Lhe MarkeL MasLer ln Lhe publlc markeL.
- osLlng was valldly made ln lleu of publlcaLlon as Lhere was no newspaper of local clrculaLlon ln Lhe
munlclpallLy of Pagonoy (Sec. 188 of Lhe Local Cov'L Code provldes for local newspaper or ln aL leasL Lwo
consplcuous and publlcly accesslble places).

- Also, even on Lhe subsLanLlve polnLs ralsed, Lhe peLlLlon musL fall. Sec. 6c.04 of Lhe 1993 Mun. 8ev. Code
& Sec 191 of Lhe LCC llmlLlng Lhe percenLage of lncrease LhaL can be lmposed apply Lo Lax raLes, noL renLals.
nelLher can lL be sald LhaL Lhe raLes were noL unlformly lmposed. 1he ordlnance covered 3 publlc markeLs.
Powever, lL excluded 8agong Munlslpyo from Lhe lncrease slnce lL ls only a makeshlfL, dllapldaLed place lnLended
for LranslenL peddlers.

DISCSI1IVL:
1he peLlLlon ls ulsmlssed for lack of merlL.

kepub||c of the h|||pp|nes v. CA (2002)

IAC1S:
- eLlLloner lnsLlLuLed exproprlaLlon proceedlngs coverlng a LoLal of 344,980 square meLers of conLlguous
land slLuaLed along MacArLhur Plghway, Malolos, 8ulacan, Lo be uLlllzed for Lhe conLlnued broadcasL operaLlon
and use of radlo LransmlLLer faclllLles for Lhe volce of Lhe hlllpplnes" pro[ecL.
- eLlLloner Look over Lhe premlses afLer Lhe prevlous lessee, Lhe volce of Amerlca," had ceased lLs
operaLlons LhereaL. eLlLloner made a deposlL of 317,338.80, Lhe sum provlslonally flxed
as belng Lhe reasonable value of Lhe properLy. Cn 26 lebruary 1979, or more Lhan nlne years afLer Lhe lnsLlLuLlon
of Lhe exproprlaLlon proceedlngs, Lhe Lrlal courL lssued Lhls order condemnlng Lhe properLy and orderlng Lhe
plalnLlff Lo pay Lhe defendanLs Lhe [usL compensaLlon for Lhe properLy.
- 1he sub[ecL of Lhe case ls Lhe 76,389-square meLer properLy prevlously owned by Luls SanLos,
predecessor-ln-lnLeresL of respondenLs, whlch forms parL of Lhe exproprlaLed area.
Ak1 II

74

- lL ls alleged LhaL naLlonal governmenL falled Lo pay Lo respondenLs Lhe compensaLlon pursuanL Lo Lhe
foregolng declslon, such LhaL a llLLle over flve years laLer, or on 09 May 1984, respondenLs flled a manlfesLaLlon
wlLh a moLlon seeklng paymenL for Lhe exproprlaLed properLy.
- resldenL LsLrada lssued roclamaLlon no. 22, Lransferrlng 20 hecLares of Lhe exproprlaLed properLy Lo
Lhe 8ulacan SLaLe unlverslLy for Lhe expanslon of lLs faclllLles and anoLher 3 hecLares Lo be used excluslvely for Lhe
propagaLlon of Lhe hlllpplne carabao.
- 1he remalnlng porLlon was reLalned by Lhe lA. 1hls facL noLwlLhsLandlng, and desplLe Lhe 1984 courL
order, Lhe SanLos helrs remalned unpald, and no acLlon was Laken on Lhelr case unLll SepLember 1999 when
peLlLloner flled lLs manlfesLaLlon and moLlon Lo permlL Lhe deposlL ln courL of Lhe amounL of 4,664,000.00 by way
of [usL compensaLlon for Lhe exproprlaLed properLy of Lhe laLe Luls SanLos sub[ecL Lo such flnal compuLaLlon as
mlghL be approved by Lhe courL.
- SanLos' helrs, opposlng Lhe manlfesLaLlon and moLlon, submlLLed a counLer-moLlon Lo ad[usL Lhe
compensaLlon from 6.00 per square meLer prevlously flxed ln Lhe 1979 declslon Lo lLs currenL zonal valuaLlon
pegged aL 3,000.00 per square meLer or, ln Lhe alLernaLlve, Lo cause Lhe reLurn Lo Lhem of Lhe exproprlaLed
properLy.
- Cn 01 March 2000, Lhe 8ulacan 81C ruled ln favor of respondenLs and lssued Lhe assalled order, vacaLlng
lLs declslon of 26 lebruary 1979 and declarlng lL Lo be unenforceable on Lhe ground of prescrlpLlon.
- 1he CA denled Lhe appeal (fallure Lo flle durlng Lhe reglemenLary perlod).

ISSULS:
WCn Lhe LCu of 8ulacan has lnherenL powers of emlnenL domaln?
WCn Lhe respondenLs are enLlLled Lo Lhe reLurn of Lhe properLy ln quesLlon?

nLLD]kA1IC:
Cn Lhe rlghL of emlnenL domaln
1he rlghL of emlnenL domaln ls usually undersLood Lo be an ulLlmaLe rlghL of Lhe soverelgn power Lo approprlaLe
any properLy wlLhln lLs LerrlLorlal soverelgnLy for a publlc purpose.

ln Lhe hands of Lhe leglslaLure, Lhe power ls lnherenL, lLs scope maLchlng LhaL of LaxaLlon, even LhaL of pollce
power lLself, ln many respecLs. lL reaches Lo every form of properLy Lhe SLaLe needs for publlc use and, as an old
case so puLs lL, all separaLe lnLeresLs of lndlvlduals ln properLy are held under a LaclL agreemenL or lmplled
reservaLlon vesLlng upon Lhe soverelgn Lhe rlghL Lo resume Lhe possesslon of Lhe properLy whenever Lhe publlc
lnLeresL so requlres lL

1he ublqulLous characLer of emlnenL domaln ls manlfesL ln Lhe naLure of Lhe exproprlaLlon proceedlngs.
LxproprlaLlon proceedlngs are noL adversarlal ln Lhe convenLlonal sense, for Lhe condemnlng auLhorlLy ls noL
requlred Lo asserL any confllcLlng lnLeresL ln Lhe properLy. 1hus, by flllng Lhe acLlon, Lhe condemnor ln effecL
merely serves noLlce LhaL lL ls Laklng LlLle and possesslon of Lhe properLy, and Lhe defendanL asserLs LlLle or lnLeresL
ln Lhe properLy, noL Lo prove a rlghL Lo possesslon, buL Lo prove a rlghL Lo compensaLlon for Lhe Laklng.

Cbvlously, however, Lhe power ls noL wlLhouL lLs llmlLs: flrsL, Lhe Laklng musL be for publlc use, and second, LhaL
[usL compensaLlon musL be glven Lo Lhe prlvaLe owner of Lhe properLy.

1hese Lwln proscrlpLlons have Lhelr orlgln ln Lhe recognlLlon of Lhe necesslLy for achlevlng balance beLween Lhe
SLaLe lnLeresLs, on Lhe one hand, and prlvaLe rlghLs, upon Lhe oLher hand, by effecLlvely resLralnlng Lhe former and
affordlng proLecLlon Lo Lhe laLLer. ln deLermlnlng publlc use," Lwo approaches are uLlllzed - Lhe flrsL ls publlc
employmenL or Lhe acLual use by Lhe publlc, and Lhe second ls publlc advanLage or beneflL

1he exproprlaLed properLy has been shown Lo be for Lhe conLlnued uLlllzaLlon by Lhe lA, a slgnlflcanL porLlon
Lhereof belng ceded for Lhe expanslon of Lhe faclllLles of Lhe 8ulacan SLaLe unlverslLy and for Lhe propagaLlon of
Lhe hlllpplne carabao, Lhemselves ln llne wlLh Lhe requlremenLs of publlc purpose. 8espondenLs quesLlon Lhe
publlc naLure of Lhe uLlllzaLlon by peLlLloner of Lhe condemned properLy, polnLlng ouL LhaL lLs presenL use dlffers
Ak1 II

73

from Lhe purpose orlglnally conLemplaLed ln Lhe 1969 exproprlaLlon proceedlngs. 1he argumenL ls of no momenL.

1he properLy has assumed a publlc characLer upon lLs exproprlaLlon. Surely, peLlLloner, as Lhe condemnor and as
Lhe owner of Lhe properLy, ls well wlLhln lLs rlghLs Lo alLer and declde Lhe use of LhaL properLy, Lhe only llmlLaLlon
belng LhaL lL be for publlc use, whlch, decldedly, lL ls.

Cn 8eLurn of properLy
ln lnslsLlng on Lhe reLurn of Lhe exproprlaLed properLy, respondenLs would exhorL on Lhe pronouncemenL ln
rovlnclal CovernmenL of Sorsogon vs. vda. de vlllaroya where Lhe unpald landowners were allowed Lhe
alLernaLlve remedy of recovery of Lhe properLy Lhere ln quesLlon. lL mlghL be borne ln mlnd LhaL Lhe case lnvolved
Lhe munlclpal governmenL of Sorsogon, Lo whlch Lhe power of emlnenL domaln ls noL lnherenL, buL merely
delegaLed and of llmlLed appllcaLlon. 1he granL of Lhe power of emlnenL domaln Lo local governmenLs under 8A
7160 cannoL be undersLood as belng Lhe pervaslve and all-encompasslng power vesLed ln Lhe leglslaLlve branch of
governmenL. lor local governmenLs Lo be able Lo wleld Lhe power, lL musL, by enabllng law, be delegaLed Lo lL by
Lhe naLlonal leglslaLure, buL even Lhen, Lhls delegaLed power of emlnenL domaln ls noL, sLrlcLly speaklng, a power
of emlnenL, buL only of lnferlor, domaln or only as broad or conflned as Lhe real auLhorlLy would wanL lL Lo be.

1hus, ln valdehueza vs. 8epubllc where Lhe prlvaLe landowners had remalned unpald Len years afLer Lhe
LermlnaLlon of Lhe exproprlaLlon proceedlngs, Lhls CourL ruled - 1he polnLs ln dlspuLe are wheLher such paymenL
can sLlll be made and, lf so, ln whaL amounL. Sald loLs have been Lhe sub[ecL of exproprlaLlon proceedlngs. 8y flnal
and execuLory [udgmenL ln sald proceedlngs, Lhey were condemned for publlc use, as parL of an alrporL, and
ordered sold Lo Lhe governmenL. x x x lL follows LhaL boLh by vlrLue of Lhe [udgmenL, long flnal, ln Lhe exproprlaLlon
sulL, as well as Lhe annoLaLlons upon Lhelr LlLle cerLlflcaLes, plalnLlffs are noL enLlLled Lo recover possesslon of Lhelr
exproprlaLed loLs - whlch are sLlll devoLed Lo Lhe publlc use for whlch Lhey were exproprlaLed - buL only Lo demand
Lhe falr markeL value of Lhe same."

1he [udgmenL rendered by Lhe 8ulacan 81C ln 1979 on Lhe exproprlaLlon proceedlngs provldes noL only for Lhe
paymenL of [usL compensaLlon Lo hereln respondenLs buL llkewlse ad[udges Lhe properLy condemned ln favor of
peLlLloner over whlch parLles, as well as Lhelr prlvles, are bound. eLlLloner has occupled, uLlllzed and, for all
lnLenLs and purposes, exerclsed domlnlon over Lhe properLy pursuanL Lo Lhe [udgmenL. 1he exerclse of such rlghLs
vesLed Lo lL as Lhe condemnee lndeed has amounLed Lo aL leasL a parLlal compllance or saLlsfacLlon of Lhe 1979
[udgmenL, Lhereby preempLlng any clalm of bar by prescrlpLlon on grounds of non-execuLlon. ln argulng for Lhe
reLurn of Lhelr properLy on Lhe basls of non-paymenL, respondenLs lgnore Lhe facL LhaL Lhe rlghL of Lhe
exproprlaLory auLhorlLy ls far from LhaL of an unpald seller ln ordlnary sales, Lo whlch Lhe remedy of resclsslon
mlghL perhaps apply. An ln rem proceedlng, condemnaLlon acLs upon Lhe properLy. AfLer condemnaLlon, Lhe
paramounL LlLle ls ln Lhe publlc under a new and lndependenL LlLle, Lhus, by glvlng noLlce Lo all clalmanLs Lo a
dlspuLed LlLle, condemnaLlon proceedlngs provlde a [udlclal process for securlng beLLer LlLle agalnsL all Lhe world
Lhan may be obLalned by volunLary conveyance.

8espondenLs, ln argulng laches agalnsL peLlLloner dld noL Lake lnLo accounL LhaL Lhe same argumenL could llkewlse
apply agalnsL Lhem. 8espondenLs flrsL lnsLlLuLed proceedlngs for paymenL agalnsL peLlLloner on 09 May 1984, or
flve years afLer Lhe 1979 [udgmenL had become flnal. 1he unusually long delay ln brlnglng Lhe acLlon Lo compel
paymenL agalnsL hereln peLlLloner would mlllLaLe agalnsL Lhem. ConslsLenLly wlLh Lhe rule LhaL one should Lake
good care of hls own concern, respondenLs should have commenced Lhe proper acLlon upon Lhe flnallLy of Lhe
[udgmenL whlch, lndeed, resulLed ln a permanenL deprlvaLlon of Lhelr ownershlp and possesslon of Lhe properLy.

1he consLlLuLlonal llmlLaLlon of [usL compensaLlon" ls consldered Lo be Lhe sum equlvalenL Lo Lhe markeL value of
Lhe properLy, broadly descrlbed Lo be Lhe prlce flxed by Lhe seller ln open markeL ln Lhe usual and ordlnary course
of legal acLlon and compeLlLlon or Lhe falr value of Lhe properLy as beLween one who recelves, and one who
deslres Lo sell, lL flxed aL Lhe Llme of Lhe acLual Laklng by Lhe governmenL. 1hus, lf properLy ls Laken for publlc use
before compensaLlon ls deposlLed wlLh Lhe courL havlng [urlsdlcLlon over Lhe case, Lhe flnal compensaLlon musL
lnclude lnLeresLs on lLs [usL value Lo be compuLed from Lhe Llme Lhe properLy ls Laken Lo Lhe Llme when
Ak1 II

76

compensaLlon ls acLually pald or deposlLed wlLh Lhe courL.

ln flne, beLween Lhe Laklng of Lhe properLy and Lhe acLual paymenL, legal lnLeresLs accrue ln order Lo place Lhe
owner ln a poslLlon as good as (buL noL beLLer Lhan) Lhe poslLlon he was ln before Lhe Laklng occurred.

1he 8ulacan Lrlal courL, ln lLs 1979 declslon, was correcL ln lmposlng lnLeresLs on Lhe zonal value of Lhe properLy Lo
be compuLed from Lhe Llme peLlLloner lnsLlLuLed condemnaLlon proceedlngs and Look" Lhe properLy ln SepLember
1969. 1hls allowance of lnLeresL on Lhe amounL found Lo be Lhe value of Lhe properLy as of Lhe Llme of Lhe Laklng
compuLed, belng an effecLlve forbearance, aL 12 per annum should help ellmlnaLe Lhe lssue of Lhe consLanL
flucLuaLlon and lnflaLlon of Lhe value of Lhe currency over Llme. ArLlcle 1230 of Lhe Clvll Code, provldlng LhaL, ln
case of exLraordlnary lnflaLlon or deflaLlon, Lhe value of Lhe currency aL Lhe Llme of Lhe esLabllshmenL of Lhe
obllgaLlon shall be Lhe basls for Lhe paymenL when no agreemenL Lo Lhe conLrary ls sLlpulaLed, has sLrlcL
appllcaLlon only Lo conLracLual obllgaLlons. ln oLher words, a conLracLual agreemenL ls needed for Lhe effecLs of
exLraordlnary lnflaLlon Lo be Laken lnLo accounL Lo alLer Lhe value of Lhe currency.

DISCSI1IVL:
All glven, Lhe Lrlal courL of 8ulacan ln lssulng lLs order, daLed 01 March 2000, vacaLlng lLs declslon of 26 lebruary
1979 has acLed beyond lLs lawful cognlzance, Lhe only auLhorlLy lefL Lo lL belng Lo order lLs execuLlon. verlly,
prlvaLe respondenLs, alLhough noL enLlLled Lo Lhe reLurn of Lhe exproprlaLed properLy, deserve Lo be pald prompLly
on Lhe yeL unpald award of [usL compensaLlon already flxed by flnal [udgmenL of Lhe 8ulacan 81C on 26 lebruary
1979 aL 6.00 per square meLer, wlLh legal lnLeresL Lhereon aL 12 per annum compuLed from Lhe daLe of "Laklng"
of Lhe properLy, l.e., 19 SepLember 1969, unLll Lhe due amounL shall have been fully pald.

4.6 ?$4+*,,0'04*60") "' +*)9,

Iort|ch vs. Corona (1999)

IAC1S:
1hls case lnvolves a 144-hecLare land locaLed aL San vlcenLe, Sumllao, 8ukldnon owned by nCS8MuC. 1he
properLy was leased as a plneapple planLaLlon Lo uel MonLe hlllpplnes for a perlod of 10 years. ln CcLober 1991,
uA8 placed Lhe sald properLy under compulsory acqulslLlon. nCS8MuC reslsLed Lhe uA8's acLlon and soughL rellef
from Lhe uA8 Ad[udlcaLlon 8oard (uA8A8). 1he uA8A8 ruled ln favor of nCS8MuC and ordered uA8 Lo deslsL from
pursulng any acLlvlLy concernlng Lhe sub[ecL properLy.

1hereafLer, Lhe rovlnclal uevelopmenL Councll of 8ukldnon passed 8esoluLlon no. 6 deslgnaLlng areas along
8ukldnon-Sayre Plghway as parL of Lhe 8ukldnon Agro-lndusLrlal Zones where Lhe sub[ecL properLy ls slLuaLed.
ursuanL Lo SecLlon 20 of Lhe LCC, Lhe Sanggunlang 8ayan of Sumllao enacLed Crdlnance no. 24 converLlng or re-
classlfylng Lhe sub[ecL properLy from agrlculLural Lo lndusLrlal/lnsLlLuLlonal wlLh a vlew of provldlng an opporLunlLy
Lo aLLracL lnvesLors and provlde more [obs and ralse lncome of lLs people.

An appllcaLlon for land use converslon was flled by Lhe 8AluA and nCS8MuC before Lhe uA8 concernlng Lhe 144-
hecLare land. lnvoklng SecLlon 63 of 8A 6637 (Comprehenslve Agrarlan 8eform Law), Lhen uA8 SecreLary Carllao
denled Lhe appllcaLlon for converslon and lnsLead placed Lhe sub[ecL properLy under Lhe compulsory coverage of
CA8. Pe ordered Lhe dlsLrlbuLlon of Lhe land Lo quallfled landless farmers. 8AluA and nCS8MuC flled a moLlon
for reconslderaLlon whlch was however denled ln an Crder by Lhe uA8.

8ukldnon governor Carlos lorLlch appealed Lhe order of denlal Lo Lhe C and prayed for Lhe converslon of Lhe
sub[ecL properLy. LxecuLlve SecreLary 1orres lssued a ueclslon whlch reversed Lhe uA8 Crder and upheld Lhe
power of Lhe local governmenL unlLs Lo converL porLlons of Lhelr agrlculLural lands lnLo lndusLrlal areas. 1he uA8
belaLedly flled a moLlon for reconslderaLlon whlch was denled by SecreLary 1orres on Lhe ground LhaL Lhe C
ueclslon had already become flnal and execuLory.
Ak1 II

77

Meanwhlle, durlng Lhe pendency of Lhe appeal by Cov. lorLlch Lo Lhe C, uA8, wlLhouL glvlng [usL compensaLlon,
caused Lhe cancellaLlon of Lhe nCS8MuC's LlLle on Lhe land and had lL Lransferred ln Lhe name of 8. 1hereafLer, lL
caused Lhe lssuance of CerLlflcaLes of Land Cwnershlp Awards (CLCA) and had Lhem reglsLered ln Lhe name of 137
farmer-beneflclarles.

uesplLe Lhe denlal of Lhe C, uA8 flled a second moLlon for reconslderaLlon of Lhe order of Lhe resldenL. Some
alleged farmer-beneflclarles sLaged a hunger-sLrlke ln fronL of Lhe uA8 compound Lo proLesL Lhe C declslon.
resldenL 8amos consLlLuLed Lhe resldenLlal lacL-llndlng 1ask lorce Lo look lnLo Lhe conLroversy. uepuLy
LxecuLlve SecreLary Corona Lhen lssued Lhe so-called Wln-Wln" 8esoluLlon whlch subsLanLlally modlfled Lhe C
ueclslon by awardlng 100 hecLares of Lhe sub[ecL properLy Lo Lhe quallfled farmer-beneflclarles and allocaLlng only
44-hecLares for Lhe esLabllshmenL of an lndusLrlal and commerclal zone.

llrsL SC ueclslon daLed 14 Aprll 1998

eLlLloners Cov. lorLlch and nCS8uMC flled a peLlLlon for cerLlorarl, prohlblLlon and ln[uncLlon before Lhe SC. 1hey
soughL Lo nulllfy Lhe Wln-Wln" 8esoluLlon and argued LhaL uepuLy LxecuLlve SecreLary Corona commlLLed grave
abuse of dlscreLlon when he lssued Lhe same.

ISSUL:
WCn Lhe flnal and execuLory C ueclslon can sLlll be subsLanLlally modlfled by Lhe Wln-Wln" 8esoluLlon

nLLD:
no

1he SC annulled Lhe Wln-Wln" 8esoluLlon and applled Lhe rule on flnallLy of admlnlsLraLlve deLermlnaLlon ln
declarlng Lhe C ueclslon as flnal and execuLory. Accordlng Lo Lhe courL, when Lhe C lssued Lhe sald declslon, lL
had losL lLs [urlsdlcLlon Lo re-open Lhe case, more so modlfy lLs declslon. lL had no auLhorlLy Lo enLerLaln Lhe
second moLlon for reconslderaLlon flled by Lhe uA8.

Second SC ueclslon daLed 17 november 1998

8espondenLs and appllcanLs for lnLervenLlon flles separaLe moLlons for reconslderaLlons seeklng Lhe reversal of Lhe
flrsL SC declslon nulllfylng Lhe Wln-Wln" 8esoluLlon.

ISSUL:
WCn Lhe power of Lhe local governmenL unlLs Lo reclasslfy lands ls sub[ecL Lo Lhe approval of Lhe uA8

nLLD:
no

1he sald lssue has been declded by Lhe SC ln Lhe case of Lhe rovlnce of Camarlnes Sur eL al. vs. CA whereln lL was
held LhaL local governmenL unlLs need noL obLaln Lhe approval of Lhe uA8 Lo converL reclasslfy lands from
agrlculLural Lo non-agrlculLural use.

1he SC declared LhaL when Lhe C ueclslon was declared flnal and execuLor, vesLed rlghLs were acqulred by Lhe
peLlLloners and all oLhers who should be beneflLed by Lhe sald declslon. 1he courL also polnLed ouL LhaL Lhe
appllcanLs for lnLervenLlon caLegorlcally admlLLed LhaL Lhey were noL LenanLs of Lhe nCS8MuC buL were merely
seasonal farm workers ln Lhe plneapple planLaLlon. lL held LhaL, belng merely seasonal farm workers wlLhouL a
rlghL Lo own, Lhe appllcanLs for lnLervenLlon have no legal or acLual and lnLeresL over Lhe sub[ecL properLy.

1he SC also relLeraLed Lhe perLlnenL porLlon of Lhe C ueclslon whlch recognlzed Lhe auLhorlLy of Lhe Sanggunlang
Ak1 II

78

8ayan of Sumllao Lo reclasslfy Lhe land lnLo lndusLrlal/lnsLlLuLlonal use:

1he language of Sec. 20 of 8A 7160 ls clear and affords no room for any oLher lnLerpreLaLlon. 8y
unequlvocal legal mandaLe, lL granLs local governmenL unlLs auLonomy ln Lhelr local affalrs lncludlng Lhe
power Lo converL porLlons of Lhelr agrlculLural lands and provlde for Lhe manner of Lhelr uLlllzaLlon and
dlsposlLlon Lo enable Lhem Lo aLLaln Lhelr fullesL developmenL as self-rellanL communlLles."

1hlrd SC ueclslon daLed 19 AugusL 1999

SeparaLe moLlons for reconslderaLlon were agaln flled by respondenLs and lnLervenors Lhls Llme Lo assall Lhe 17
november 1998 8esoluLlon. 8oLh respondenLs and lnLervenors prayed LhaL Lhe case be referred Lo Lhe CourL en
banc lnasmuch as Lhelr earller M8s were resolved by a voLe of Lwo-Lwo, Lhe requlred number Lo carry a declslon
under Lhe ConsLlLuLlon (3 voLes) was noL meL.

ISSUL:
WCn fallure Lo meeL Lhe Lhree voLes [usLlfles Lhe referral of Lhe case Lo Lhe courL en banc

PLLu:
no

A careful readlng of Lhe consLlLuLlonal provlslon reveals Lhe lnLenLlon of Lhe framers Lo draw a dlsLlncLlon beLween
cases, on Lhe one hand, and maLLers, on Lhe oLher hand, such LhaL cases are declded" whlle maLLers, whlch
lnclude moLlons, are resolved". CLherwlse puL, Lhe word declded" musL refer Lo cases", whlle Lhe word
resolved" musL refer Lo maLLers", applylng Lhe rule of reddendo slngula slngulls.

lL ls clear LhaL only cases are referred Lo Lhe CourL en banc for declslon whenever Lhe requlred number of voLes ls
noL obLalned. Conversely, Lhe rule does noL apply where, as ln Lhls case, Lhe requlred Lhree voLes ls noL obLalned
ln Lhe resoluLlon of a M8. ArLlcle vlll, SecLlon 4(3) perLalns Lo Lhe dlsposlLlon of cases by a dlvlslon. lf Lhere ls a Lle
ln Lhe voLlng, Lhere ls no declslon. 1he only way Lo dlspose of Lhe case Lhen ls Lo refer lL Lo Lhe CourL en banc. Cn
Lhe oLher hand, lf a case has already been declded by Lhe dlvlslon and Lhe loslng parLy flles a M8, Lhe fallure of Lhe
dlvlslon Lo resolve Lhe moLlon because of a Lle ln Lhe voLlng does noL leave Lhe case undeclded. 1here ls sLlll Lhe
declslon whlch musL sLand ln vlew of Lhe fallure of Lhe members of Lhe dlvlslon Lo musLer Lhe necessary voLe for lLs
reconslderaLlon. CulLe plalnly, lf Lhe voLlng resulLs ln a Lle, Lhe moLlon for reconslderaLlon ls losL. 1he assalled
declslon ls noL reconsldered and musL Lherefore be deemed afflrmed. Such was Lhe rullng of Lhls CourL ln Lhe
8esoluLlon of november 17, 1998.

ISSUL:
WCn Lhe referral Lo Lhe courL en banc ls [usLlfled on Lhe ground LhaL Lhe lssues are of flrsL lmpresslon

nLLD:
no

1he lssues presenLed by Lhe movanLs are maLLers of no exLraordlnary lmporL Lo merlL Lhe aLLenLlon of Lhe CourL en
banc. 1he lssue of wheLher or noL Lhe power of Lhe local governmenL unlLs Lo reclasslfy lands ls sub[ecL Lo Lhe
approval of Lhe uA8 ls no longer novel, Lhls havlng been declded by Lhls CourL ln Lhe case of rovlnce of Camarlnes
Sur, eL al. vs. CourL of Appeals whereln we held LhaL local governmenL unlLs need noL obLaln Lhe approval of Lhe
uA8 Lo converL or reclasslfy lands from agrlculLural Lo non-agrlculLural use.

Moreover, Lhe ueclslon soughL Lo be reconsldered was arrlved aL by a unanlmous voLe of all flve (3) members of
Lhe Second ulvlslon of Lhls CourL. SLaLed oLherwlse, Lhe Second ulvlslon ls of Lhe oplnlon LhaL Lhe maLLers ralsed
by movanLs are noLhlng new and do noL deserve Lhe conslderaLlon of Lhe CourL en banc. 1hus, Lhe parLlclpaLlon of
Lhe full CourL ln Lhe resoluLlon of movanLs' moLlons for reconslderaLlon would be lnapproprlaLe.
Ak1 II

79

ISSUL:
WCn Lhe referral Lo Lhe courL en banc parLakes of Lhe naLure of a second M8

nLLD:
?es
1he conLenLlon LhaL Lhe 8esoluLlon of november 17, 1998 dld noL dlspose of Lhe earller M8 of Lhe ueclslon daLed
Aprll 24, 1998 ls flawed. 1he presenL M8 necessarlly parLakes of Lhe naLure of a second moLlon for reconslderaLlon
whlch, accordlng Lo Lhe clear and unamblguous language of 8ule 36, SecLlon 4, ln relaLlon Lo 8ule 32, SecLlon 2, of
Lhe 1997 8ules of Clvll rocedure, ls prohlblLed.

ln Lhls case, noL only dld movanLs fall Lo ask for prlor leave of courL, buL more lmporLanLly, Lhey have been unable
Lo show LhaL Lhere are excepLlonal reasons for due course Lo Lhelr second moLlons for reconslderaLlon. SLrlpped of
Lhe argumenLs for referral of Lhls lncldenL Lo Lhe CourL en banc, Lhe moLlons sub[ecL of Lhls resoluLlon are noLhlng
more buL rehashes of Lhe moLlons for reconslderaLlon whlch have been denled ln Lhe 8esoluLlon of november 17,
1998. 1o be sure, Lhe allegaLlons conLalned Lhereln have already been ralsed before and passed upon by Lhe CourL
ln Lhe sald 8esoluLlon.

ISSUL:
WCn Lhe Wln-Wln 8esoluLlon was valld

nLLD:
no

1he resoluLlon ls vold and of no legal effecL conslderlng LhaL Lhe March 29, 1996 C ueclslon had already become
flnal and execuLory even prlor Lo Lhe flllng of Lhe M8 whlch became Lhe basls of Lhe sald Wln-Wln" 8esoluLlon.
Whlle lL may be Lrue LhaL on lLs face Lhe nulllflcaLlon of Lhe Wln-Wln" 8esoluLlon was grounded on a procedural
rule perLalnlng Lo Lhe reglemenLary perlod Lo appeal or move for reconslderaLlon, Lhe underlylng conslderaLlon
Lherefor was Lhe proLecLlon of Lhe subsLanLlve rlghLs of peLlLloners. !usL as a loslng parLy has Lhe rlghL Lo flle an
appeal wlLhln Lhe prescrlbed perlod, Lhe wlnnlng parLy also has Lhe correlaLlve rlghL Lo en[oy Lhe flnallLy of Lhe
resoluLlon of hls/her case."

ln oLher words, Lhe flnallLy of Lhe March 29, 1996 C ueclslon accordlngly vesLed appurLenanL rlghLs Lo Lhe land ln
dlspuLe on peLlLloners as well as on Lhe people of 8ukldnon and oLher parLs of Lhe counLry who sLand Lo be
beneflLed by Lhe developmenL of Lhe properLy.

koxas & Co., Inc. v. CA (1999)

IAC1S:
resldenL Cory Aqulno on !uly 1987 promulgaLed roclamaLlon number 131 lnsLlLuLlng CA8 and LC no. 229
provldlng for mechanlsms necessary Lo lmplemenL CA8.

LaLer, when congress flnally covened, lL passed 8A 6637 or Lhe Comprehenslve Agrarlan 8eform Law.

1hls case lnvolves 3 haclendas ln nasugbu, 8aLangas owned by 8oxas & Co., lnc. namely:
1.) Paclenda allco,
2.) Paclenda 8anllad and
3.) Paclenda Caylaway.

8efore CA8L Look effecL, 8oxas & Co., lnc. (peLlLloner) volunLarlly offered Lo sell Paclenda Caylaway pursuanL Lo
LC 229.

Ak1 II

80

1he oLher 2 were placed under compulsory acqulslLlon by respondenL uA8 ln accordance wlLh CA8L.

eLlLloner lnsLlLuLed a case wlLh uA8 Ad[udlcaLlon 8oard (uA8A8) Lo re-classlfy Lhe lands lnLo non-agrlculLural
pursuanL Lo roclamaLlon no. 1320 lssued by former resldenL Marcos declarlng nasugbu, 8aLangas as a LourlsL
zone, whlch were denled.

uA8A8 held LhaL Lhe case lnvolved Lhepre[udlclal quesLlon of wheLher Lhe properLy was sub[ecL Lo agrarlan reform
and should be submlLLed Lo Lhe Cfflce of Lhe SecreLary of Agrarlan 8eform.

eLlLloner flled a case wlLh Lhe CA quesLlonlng Lhe exproprlaLlon of Lhe properLles under CA8L and Lhe denlal of
due process ln Lhe acqulslLlon of Lhe land.

CA dlsmlssed Lhe peLlLlon on Lhe ground of fallure Lo exhausL admlnlsLraLlve remedles.

Paclenda allco
uA8, Lhrough Munlclpal Agrarlan 8eform Cfflcer (MA8C) of nasugbu, 8aLangas, senL a noLlce enLlLled lnvlLaLlon
Lo arLles" Lo peLlLloner Lo dlscuss Lhe resulLs of Lhe uA8 lnvesLlgaLlon of Paclenda allco, whlch was scheduled
for compulsory acqulslLlon Lhls year under Lhe CA8.

"Summary lnvesLlgaLlon 8eporLs were submlLLed by Lhe MA8C, represenLaLlves of Lhe 8arangay
Agrarlan 8eform CommlLLee (8A8C), Land 8ank (L8) and Lhe rovlnclal Agrarlan 8eform Cfflcer
(A8C) recommendlng LhaL 270 ha and 73.3 ha of Lhe properLy be placed under compulsory
acqulslLlon aL a compensaLlon of 8,109,739.00 and 2,188,193.47, respecLlvely.

uA8 Lhrough SecreLary Mlrlam SanLlago senL a noLlce of AcqulslLlon" Lo peLlLloner.

eLlLloner was lnformed LhaL 1,023.999 ha of lLs land ln Paclenda allco were sub[ecL Lo lmmedlaLe acqulslLlon and
dlsLrlbuLlon by Lhe governmenL under Lhe CA8L, and Lhe governmenL was offerlng compensaLlon of 3.4 mllllon for
333.0800 hecLares.

AlmosL Lwo years laLer, Lhe uA8 8eglonal ulrecLor senL Lo Lhe L8 Land valuaLlon Manager Lhree (3) separaLe
Memoranda enLlLled 8equesL Lo Cpen 1rusL AccounL."

Lach Memoranda requesLed LhaL a LrusL accounL represenLlng Lhe valuaLlon of Lhree porLlons of Paclenda allco
be opened ln favor of Lhe peLlLloner ln vlew of Lhe laLLer's re[ecLlon of lLs offered value.

Meanwhlle, peLlLloner applled wlLh Lhe uA8 for converslon of Paclendas allco and 8anllad from agrlculLural Lo
non-agrlculLural lands under Lhe provlslons of Lhe CA8L.

uesplLe peLlLloner's appllcaLlon for converslon, uA8 proceeded wlLh Lhe acqulslLlon of Lhe Lwo Paclendas.

1he L8 LrusL accounLs as compensaLlon for Paclenda allco were replaced by respondenL uA8 wlLh cash and L8
bonds.

Cn CcLober 22, 1993, from Lhe moLher LlLle of 1C1 no. 983 of Lhe Paclenda, uA8 reglsLered CerLlflcaLe of Land
Cwnershlp Award (CLCA) no. 6634.

Cn CcLober 30, 1993, CLCA's were dlsLrlbuLed Lo farmer beneflclarles.

Paclenda 8anllad.
uA8 Lhrough Lhe MA8C of nasugbu 8aLangas senL a noLlce of acqulslLlon Lo peLlLloner.

Ak1 II

81

LaLer, Lhe MA8C senL an lnvlLaLlon Lo arLles" agaln Lo lmenLel lnvlLlng Lhe laLLer Lo aLLend a conference Lo
dlscuss Lhe resulLs of Lhe MA8C's lnvesLlgaLlon over Paclenda 8anllad.

1he 8eporLs were dlscussed Lhe conference.

resenL ln Lhe conference were represenLaLlves of Lhe prospecLlve farmer beneflclarles, Lhe 8A8C, Lhe L8, and
!alme lmenLel on behalf of Lhe landowner.

AfLer Lhe meeLlng, lL was recommended LhaL 737.2390 ha under 1ax ueclaraLlon nos. 0236 and 0237 be llkewlse
placed under compulsory acqulslLlon for dlsLrlbuLlon.

uA8, Lhrough Lhe ueparLmenL SecreLary, senL Lo peLlLloner Lwo (2) separaLe noLlces of AcqulslLlon" over Paclenda
8anllad.

1hese noLlces were senL on Lhe same day as Lhe noLlce of AcqulslLlon over Paclenda allco.

unllke Lhe noLlce over Paclenda allco, however, Lhe noLlces over Paclenda 8anllad were addressed Lo 8oxas y
Cla.LlmlLed ln MakaLl.

1he uA8 8eglonal ulrecLor senL Lo Lhe L8 Land valuaLlon Manager a 8equesL Lo Cpen 1rusL AccounL" ln
peLlLloner's name as compensaLlon for 234.6493 hecLares of Paclenda 8anllad.

A second 8equesL Lo Cpen 1rusL AccounL" was senL on november 18, 1991 over 723.4130 hecLares of sald
Paclenda.

Cn May 4, 1993, peLlLloner applled for converslon of boLh Paclendas allco and 8anllad.

Paclenda Caylaway.
Paclenda Caylaway was volunLarlly offered for sale Lo Lhe governmenL on May 6, 1988 before Lhe effecLlvlLy of Lhe
CA8L.

uA8, Lhrough Lhe 8eglonal ulrecLor for 8eglon lv, senL Lo peLlLloner Lwo (2) separaLe 8esoluLlons accepLlng
peLlLloner's volunLary offer Lo sell Paclenda Caylaway, parLlcularly 1C1 nos. 1-44664 and 1-44663.

neverLheless, on AugusL 6, 1992, peLlLloner, Lhrough lLs resldenL, Lduardo !. 8oxas, senL a leLLer Lo Lhe SecreLary
of uA8 wlLhdrawlng lLs vCS of Paclenda Caylaway.

1he Sanggunlang 8ayan of nasugbu, 8aLangas allegedly auLhorlzed Lhe reclasslflcaLlon of Paclenda Caylaway from
agrlculLural Lo non-agrlculLural.

As a resulL, peLlLloner lnformed uA8 LhaL lL was applylng for converslon of Paclenda Caylaway from agrlculLural Lo
oLher uses.

uA8 SecreLary lnformed peLlLloner LhaL a reclasslflcaLlon of Lhe land would noL exempL lL from agrarlan reform.

1he SecreLary also denled peLlLloner's wlLhdrawal of Lhe vCS on Lhe ground LhaL wlLhdrawal could only be based
on speclflc grounds such as unsulLablllLy of Lhe soll for agrlculLure, or lf Lhe slope of Lhe land ls over 18 degrees and
LhaL Lhe land ls undeveloped.

uesplLe Lhe denlal of Lhe vCS wlLhdrawal of Paclenda Caylaway, on May 11, 1993, peLlLloner flled lLs appllcaLlon
for converslon of boLh Paclendas allco and 8anllad.

Ak1 II

82

Cn AugusL 24, 1993, peLlLloner lnsLlLuLed Case no. n-0017-96-46 (8A) wlLh Lhe uA8A8 praylng for Lhe cancellaLlon
of Lhe CLCA's lssued by uA8 ln Lhe name of several persons.

eLlLloner alleged LhaL Lhe MunlclpallLy of nasugbu, where Lhe haclendas are locaLed, had been declared a LourlsL
zone, LhaL Lhe land ls noL sulLable for agrlculLural producLlon, and LhaL Lhe Sanggunlang 8ayan of nasugbu had
reclasslfled Lhe land Lo non-agrlculLural.

uA8A8 submlLLed Lhe case Lo Lhe Cfflce of Lhe SecreLary of Agrarlan 8eform for deLermlnaLlon.

1he CA flled a peLlLlon for before Lhe CA quesLlonlng Lhe exproprlaLlon of lLs properLles under Lhe CA8L.

Meanwhlle, Lhe peLlLlon for converslon of Lhe Lhree haclendas was denled by Lhe MA8C.

1he CA Lhen dlsmlssed Lhe peLlLlon.

lSSuL 1: WCn Lhe CourL can Lake cognlzance of Lhls peLlLlon desplLe peLlLloner's fallure Lo exhausL admlnlsLraLlve
remedles

PLLu 1: ?es

8A1lC 1: eLlLloner rlghLly soughL lmmedlaLe redress ln Lhe courLs.

1here was a vlolaLlon of lLs rlghLs and Lo requlre lL Lo exhausL admlnlsLraLlve remedles before Lhe uA8 lLself was
noL a plaln, speedy and adequaLe remedy.

uA8 lssued CLCAs Lo farmer beneflclarles over porLlons of peLlLloner's land wlLhouL [usL compensaLlon Lo
peLlLloner.

A CLCA ls evldence of ownershlp of land by a beneflclary under 8.A. 6637.

8efore Lhls may be awarded Lo a farmer beneflclary, Lhe land musL flrsL be acqulred by Lhe SLaLe from Lhe
landowner and ownershlp Lransferred Lo Lhe former.

1he Lransfer of possesslon and ownershlp of Lhe land Lo Lhe governmenL are condlLloned upon Lhe recelpL by Lhe
landowner of Lhe paymenL or deposlL by Lhe uA8 of Lhe compensaLlon wlLh an accesslble bank.

unLll Lhen, LlLle remalns wlLh Lhe landowner.

1here was no recelpL by peLlLloner of any compensaLlon for any of Lhe lands acqulred by Lhe governmenL.

1he klnd of compensaLlon Lo be pald Lhe landowner ls also speclflc.

1he law provldes LhaL Lhe deposlL musL be made only ln cash" or L8 bonds."

uA8's openlng of LrusL accounL deposlLs ln peLlLloner's name wlLh Lhe Land 8ank does noL consLlLuLe paymenL
under Lhe law.

1rusL accounL deposlLs are noL cash or L8 bonds.

1he replacemenL of Lhe LrusL accounL wlLh cash or L8 bonds dld noL lpso facLo cure Lhe lack of compensaLlon, for
essenLlally, Lhe deLermlnaLlon of Lhls compensaLlon was marred by lack of due process.

Ak1 II

83

ln facL, ln Lhe enLlre acqulslLlon proceedlngs, respondenL uA8 dlsregarded Lhe baslc requlremenLs of admlnlsLraLlve
due process.

under Lhese clrcumsLances, Lhe lssuance of Lhe CLCA's Lo farmer beneflclarles necesslLaLed lmmedlaLe [udlclal
acLlon on Lhe parL of Lhe peLlLloner.

lSSuL 2: WCn Lhe acqulslLlon proceedlngs over Lhe Lhree haclendas were valld and ln accordance wlLh law

PLLu 2: no

8A1lC 2: Mode of AcqulslLlon of Land under 8A 6637.

1wo (2) modes of acqulslLlon of prlvaLe land: compulsory and volunLary.

ln Lhe compulsory acqulslLlon of prlvaLe lands, Lhe landholdlng, Lhe landowners and Lhe farmer beneflclarles musL
flrsL be ldenLlfled.

AfLer ldenLlflcaLlon, Lhe uA8 shall send a noLlce of AcqulslLlon Lo Lhe landowner, by personal dellvery or reglsLered
mall, and posL lL ln a consplcuous place ln Lhe munlclpal bulldlng and barangay hall of Lhe place where Lhe properLy
ls locaLed.

WlLhln LhlrLy days from recelpL of Lhe noLlce of AcqulslLlon, Lhe landowner, hls admlnlsLraLor or represenLaLlve
shall lnform Lhe uA8 of hls accepLance or re[ecLlon of Lhe offer.

lf Lhe landowner accepLs, he execuLes and dellvers a deed of Lransfer ln favor of Lhe governmenL and surrenders
Lhe cerLlflcaLe of LlLle.

WlLhln 30 days from Lhe execuLlon of Lhe deed of Lransfer, Lhe L8 pays Lhe owner Lhe purchase prlce.

lf Lhe landowner re[ecLs Lhe uA8's offer or falls Lo make a reply, Lhe uA8 conducLs summary admlnlsLraLlve
proceedlngs Lo deLermlne [usL compensaLlon for Lhe land.

1he landowner, Lhe L8 represenLaLlve and oLher lnLeresLed parLles may submlL evldence on [usL compensaLlon
wlLhln flfLeen days from noLlce.

WlLhln 30 days from submlsslon, Lhe uA8 shall declde Lhe case and lnform Lhe owner of lLs declslon and Lhe
amounL of [usL compensaLlon.

upon recelpL by Lhe owner of Lhe correspondlng paymenL, or, ln case of re[ecLlon or lack of response from Lhe
laLLer, Lhe uA8 shall deposlL Lhe compensaLlon ln cash or ln L8 bonds wlLh an accesslble bank.

1he uA8 shall lmmedlaLely Lake possesslon of Lhe land and cause Lhe lssuance of a Lransfer cerLlflcaLe of LlLle ln Lhe
name of Lhe 8epubllc of Lhe hlllpplnes.

1he land shall Lhen be redlsLrlbuLed Lo Lhe farmer beneflclarles.

Any parLy may quesLlon Lhe declslon of Lhe uA8 ln Lhe regular courLs for flnal deLermlnaLlon of [usL compensaLlon.

lor a valld lmplemenLaLlon of Lhe CA8 rogram, Lwo noLlces are requlred:

(1) Lhe noLlce of Coverage and leLLer of lnvlLaLlon Lo a prellmlnary conference senL Lo Lhe landowner, Lhe
represenLaLlves of Lhe 8A8C, L8, farmer beneflclarles and oLher lnLeresLed parLles pursuanL Lo uA8 A. C. no. 12,
Ak1 II

84

Serles of 1989, and

(2) Lhe noLlce of AcqulslLlon senL Lo Lhe landowner under SecLlon 16 of Lhe CA8L.

1he lmporLance of Lhe flrsL noLlce, l.e., Lhe noLlce of Coverage and Lhe leLLer of lnvlLaLlon Lo Lhe conference, and lLs
acLual conducL cannoL be undersLaLed.

1hey are sLeps deslgned Lo comply wlLh Lhe requlremenLs of admlnlsLraLlve due process.

1he lmplemenLaLlon of Lhe CA8L ls an exerclse of Lhe SLaLe's pollce power and Lhe power of emlnenL domaln.

1o Lhe exLenL LhaL Lhe CA8L prescrlbes reLenLlon llmlLs Lo Lhe landowners, Lhere ls an exerclse of pollce power for
Lhe regulaLlon of prlvaLe properLy ln accordance wlLh Lhe ConsLlLuLlon.

8uL where, Lo carry ouL such regulaLlon, Lhe owners are deprlved of lands Lhey own ln excess of Lhe maxlmum area
allowed, Lhere ls also a Laklng under Lhe power of emlnenL domaln.

1he Laklng conLemplaLed ls noL a mere llmlLaLlon of Lhe use of Lhe land.

WhaL ls requlred ls Lhe surrender of Lhe LlLle Lo and physlcal possesslon of Lhe sald excess and all beneflclal rlghLs
accrulng Lo Lhe owner ln favor of Lhe farmer beneflclary.

1he 8lll of 8lghLs provldes LhaL [n]o person shall be deprlved of llfe, llberLy or properLy wlLhouL due process of
law."

1he CA8L was noL lnLended Lo Lake away properLy wlLhouL due process of law.

1he exerclse of Lhe power of emlnenL domaln requlres LhaL due process be observed ln Lhe Laklng of prlvaLe
properLy.

1he noLlce requlremenLs under Lhe CA8L are noL conflned Lo Lhe noLlce of AcqulslLlon seL forLh ln SecLlon 16 of Lhe
law.

1hey also lnclude Lhe noLlce of Coverage flrsL lald down ln uA8 A. C. no. 12, Serles of 1989 and subsequenLly
amended ln uA8 A. C. no. 9, Serles of 1990 and uA8 A. C. no. 1, Serles of 1993.

1hls noLlce of Coverage does noL merely noLlfy Lhe landowner LhaL hls properLy shall be placed under CA8 and
LhaL he ls enLlLled Lo exerclse hls reLenLlon rlghL, lL also noLlfles hlm, pursuanL Lo uA8 A. C. no. 9, Serles of 1990,
LhaL a publlc hearlng shall be conducLed where he and represenLaLlves of Lhe concerned secLors of socleLy may
aLLend Lo dlscuss Lhe resulLs of Lhe fleld lnvesLlgaLlon, Lhe land valuaLlon and oLher perLlnenL maLLers.

under uA8 A. C. no. 1, Serles of 1993, Lhe noLlce of Coverage also lnforms Lhe landowner LhaL a fleld lnvesLlgaLlon
of hls landholdlng shall be conducLed where he and Lhe oLher represenLaLlves may be presenL

Compulsory AcqulslLlon of Paclenda allco and 8anllad.
ln Lhe case aL bar, uA8 clalms LhaL lL, Lhrough MA8C Leopoldo C. Le[ano, senL a leLLer of lnvlLaLlon enLlLled
lnvlLaLlon Lo arLles" daLed SepLember 29, 1989 Lo peLlLloner, Lhrough !alme lmenLel, Lhe admlnlsLraLor of
Paclenda allco.

1he lnvlLaLlon was recelved on Lhe same day lL was senL as lndlcaLed by a slgnaLure and Lhe daLe recelved aL Lhe
boLLom lefL corner of sald lnvlLaLlon.

Ak1 II

83

WlLh regard Lo Paclenda 8anllad, uA8 clalms LhaL lmenLel, admlnlsLraLor also of Paclenda 8anllad, was noLlfled
and senL an lnvlLaLlon Lo Lhe conference.

lmenLel acLually aLLended Lhe conference on SepLember 21, 1989 and slgned Lhe MlnuLes of Lhe meeLlng on
behalf of peLlLloner.

1he MlnuLes was also slgned by Lhe represenLaLlves of Lhe 8A8C, Lhe L8 and farmer beneflclarles.

no leLLer of lnvlLaLlon was senL or conference meeLlng held wlLh respecL Lo Paclenda Caylaway because lL was
sub[ecL Lo a volunLary Cffer Lo Sell Lo uA8.

When uA8, Lhrough Lhe MA8C, senL Lo Lhe varlous parLles Lhe noLlce of Coverage and lnvlLaLlon Lo Lhe
conference, uA8 A. C. no. 12, Serles of 1989 was already ln effecL more Lhan a monLh earller.

1he CperaLlng rocedure ln uA8 AdmlnlsLraLlve Crder no. 12 does noL speclfy how noLlces or leLLers of lnvlLaLlon
shall be senL Lo Lhe landowner, Lhe represenLaLlves of Lhe 8A8C, Lhe L8, Lhe farmer beneflclarles and oLher
lnLeresLed parLles.

1he procedure ln Lhe sendlng of Lhese noLlces ls lmporLanL Lo comply wlLh Lhe requlslLes of due process especlally
when Lhe owner, as ln Lhls case, ls a [urldlcal enLlLy.

eLlLloner ls a domesLlc corporaLlon, and Lherefore, has a personallLy separaLe and dlsLlncL from lLs shareholders,
offlcers and employees.

!alme lmenLel ls noL Lhe presldenL, manager, secreLary, cashler or dlrecLor of peLlLloner corporaLlon.

ls he, as admlnlsLraLor of Lhe Lwo Paclendas, consldered an agenL of Lhe corporaLlon?

1he purpose of all rules for servlce of process on a corporaLlon ls Lo make lL reasonably cerLaln LhaL Lhe
corporaLlon wlll recelve prompL and proper noLlce ln an acLlon agalnsL lL.

Servlce musL be made on a represenLaLlve so lnLegraLed wlLh Lhe corporaLlon as Lo make lL a prlorl supposable LhaL
he wlll reallze hls responslblllLles and know whaL he should do wlLh any legal papers served on hlm, and brlng
home Lo Lhe corporaLlon noLlce of Lhe flllng of Lhe acLlon.

eLlLloner's evldence does noL show Lhe offlclal duLles of lmenLel as admlnlsLraLor of peLlLloner's haclendas.

1he evldence does noL lndlcaLe wheLher lmenLel's duLles ls so lnLegraLed wlLh Lhe corporaLlon LhaL he would
lmmedlaLely reallze hls responslblllLles and know whaL he should do wlLh any legal papers served on hlm.

AL Lhe Llme Lhe noLlces were senL and Lhe prellmlnary conference conducLed, peLlLloner's prlnclpal place of
buslness was llsLed ln uA8's records as Sorlano 8ldg., laza CervanLes, Manlla," and 7Lh llr. Cacho-Conzales
8ldg., 101 Agulrre SL., MakaLl, MeLro Manlla."

lmenLel dld noL hold offlce aL Lhe prlnclpal place of buslness of peLlLloner.

nelLher dld he exerclse hls funcLlons ln laza CervanLes, Manlla nor ln Cacho-Conzales 8ldg., MakaLl, MeLro
Manlla.

Pe performed hls offlclal funcLlons and acLually reslded ln Lhe haclendas ln nasugbu, 8aLangas, a place over Lwo
hundred kllomeLers away from MeLro Manlla.

Ak1 II

86

Curlously, uA8 had lnformaLlon of Lhe address of peLlLloner's prlnclpal place of buslness.

1he noLlces of AcqulslLlon over Paclendas allco and 8anllad were addressed Lo peLlLloner aL lLs offlces ln Manlla
and MakaLl.

1hese noLlces were senL barely Lhree Lo four monLhs afLer lmenLel was noLlfled of Lhe prellmlnary conference.

Why uA8 chose Lo noLlfy lmenLel lnsLead of Lhe offlcers of Lhe corporaLlon was noL explalned by Lhe sald
respondenL.

neverLheless, assumlng LhaL lmenLel was an agenL of peLlLloner corporaLlon, and Lhe noLlces and leLLers of
lnvlLaLlon were valldly served on peLlLloner Lhrough hlm, Lhere ls no showlng LhaL lmenLel hlmself was duly
auLhorlzed Lo aLLend Lhe conference meeLlng wlLh Lhe MA8C, 8A8C and L8 represenLaLlves and farmer
beneflclarles for purposes of compulsory acqulslLlon of peLlLloner's landholdlngs.

Lven uA8's evldence does noL lndlcaLe Lhls auLhorlLy.

Cn Lhe conLrary, peLlLloner clalms LhaL lL had no knowledge of Lhe leLLer-lnvlLaLlon, hence, could noL have glven
lmenLel Lhe auLhorlLy Lo blnd lL Lo whaLever maLLers were dlscussed or agreed upon by Lhe parLles aL Lhe
prellmlnary conference or publlc hearlng.

noLably, one year afLer lmenLel was lnformed of Lhe prellmlnary conference, uA8 A.C. no. 9, Serles of 1990 was
lssued and Lhls requlred LhaL Lhe noLlce of Coverage musL be senL Lo Lhe landowner concerned or hls duly
auLhorlzed represenLaLlve."

Assumlng furLher LhaL peLlLloner was duly noLlfled of Lhe CA8 coverage of lLs haclendas, Lhe areas found acLually
sub[ecL Lo CA8 were noL properly ldenLlfled before Lhey were Laken over by uA8.

1he acqulslLlon of Lhe landholdlngs dld noL cover Lhe enLlre expanse of Lhe Lwo haclendas, buL only porLlons
Lhereof.

Paclenda allco has an area of 1,024 hecLares and only 688.7376 hecLares were LargeLLed for acqulslLlon.

Paclenda 8anllad has an area of 1,030 hecLares buL only 964.0688 hecLares were sub[ecL Lo CA8.

1he haclendas are noL enLlrely agrlculLural lands.

ln facL, Lhe varlous Lax declaraLlons over Lhe haclendas descrlbe Lhe landholdlngs as sugarland," and foresL,
sugarland, pasLure land, horLlculLure and woodland."

upon recelpL of Lhls noLlce, Lherefore, peLlLloner corporaLlon had no ldea whlch porLlons of lLs esLaLe were sub[ecL
Lo compulsory acqulslLlon, whlch porLlons lL could rlghLfully reLaln, wheLher Lhese reLalned porLlons were compacL
or conLlguous, and whlch porLlons were excluded from CA8 coverage.

Lven respondenL uA8's evldence does noL show LhaL peLlLloner, Lhrough lLs duly auLhorlzed represenLaLlve, was
noLlfled of any ocular lnspecLlon and lnvesLlgaLlon LhaL was Lo be conducLed by respondenL uA8.

nelLher ls Lhere proof LhaL peLlLloner was glven Lhe opporLunlLy Lo aL leasL choose and ldenLlfy lLs reLenLlon area ln
Lhose porLlons Lo be acqulred compulsorlly.

1he rlghL of reLenLlon and how Lhls rlghL ls exerclsed, ls guaranLeed ln SecLlon 6 of Lhe CA8L.

Ak1 II

87

volunLary AcqulslLlon of Paclenda Caylaway.
llrsL of all, Lhe same L.C. 229, llke SecLlon 16 of Lhe CA8L, requlres LhaL Lhe land, landowner and beneflclarles of
Lhe land sub[ecL Lo agrarlan reform be ldenLlfled before Lhe noLlce of acqulslLlon should be lssued.

Paclenda Caylaway was volunLarlly offered for sale ln 1989.

1he Paclenda has a LoLal area of 867.4371 hecLares and ls covered by four (4) LlLles.

ln Lwo separaLe 8esoluLlons boLh daLed !anuary 12, 1989, uA8, Lhrough Lhe 8eglonal ulrecLor, formally accepLed
Lhe vCS over Lwo of Lhese four LlLles.

1he land covered by Lhe Lwo LlLles has an area of 833.3237 hecLares, buL only 648.8344 hecLares Lhereof fell wlLhln
Lhe coverage of 8.A. 6637.

eLlLloner clalms lL does noL know where Lhese porLlons are locaLed.

uA8, on Lhe oLher hand, avers LhaL surveys on Lhe land covered by Lhe four LlLles were conducLed ln 1989, and LhaL
peLlLloner, as landowner, was noL denled parLlclpaLlon Lhereln.

1he resulLs of Lhe survey and Lhe land valuaLlon summary reporL, however, do noL lndlcaLe wheLher noLlces Lo
aLLend Lhe same were acLually senL Lo and recelved by peLlLloner or lLs duly auLhorlzed represenLaLlve.

1o relLeraLe, LC 229 does noL lay down Lhe operaLlng procedure, much less Lhe noLlce requlremenLs, before Lhe
vCS ls accepLed by uA8.

noLlce Lo Lhe landowner, however, cannoL be dlspensed wlLh.

lL ls parL of admlnlsLraLlve due process and ls an essenLlal requlslLe Lo enable Lhe landowner hlmself Lo exerclse, aL
Lhe very leasL, hls rlghL of reLenLlon guaranLeed under Lhe CA8L.

lSSuL 3: Assumlng Lhe haclendas may be reclasslfled from agrlculLural Lo non-agrlculLural, WCn Lhls courL has Lhe
power Lo rule on Lhls lssue

PLLu 3: no

8A1lC 3: lL ls peLlLloner's clalm LhaL Lhe Lhree haclendas are noL sub[ecL Lo agrarlan reform because Lhey have been
declared for Lourlsm, noL agrlculLural purposes.

ln 1973, Lhen resldenL Marcos lssued roclamaLlon no. 1320 declarlng Lhe munlclpallLy of nasugbu, 8aLangas a
LourlsL zone.

Lands ln nasugbu, lncludlng Lhe sub[ecL haclendas, were allegedly reclasslfled as non-agrlculLural 13 years before
Lhe effecLlvlLy of 8A 6637.

ln 1993, Lhe 8eglonal ulrecLor for 8eglon lv of Lhe uA cerLlfled LhaL Lhe haclendas are noL feaslble and sound for
agrlculLural developmenL.

Cn March 20, 1992, pursuanL Lo roclamaLlon no. 1320, Lhe Sanggunlang 8ayan of nasugbu, 8aLangas adopLed
8esoluLlon no. 19 reclasslfylng cerLaln areas of nasugbu as non-agrlculLural.

1hls 8esoluLlon approved Munlclpal Crdlnance no. 19, Serles of 1992, Lhe 8evlsed Zonlng Crdlnance of nasugbu
whlch zonlng ordlnance was based on a Land use lan for lannlng Areas for new uevelopmenL allegedly prepared
Ak1 II

88

by Lhe unlverslLy of Lhe hlllpplnes.

8esoluLlon no. 19 of Lhe Sanggunlang 8ayan was approved by Lhe Sanggunlang anlalawlgan of 8aLangas on March
8, 1993.

eLlLloner clalms LhaL roclamaLlon no. 1320 was also upheld by uA8 ln 1991 when lL approved converslon of
1,827 hecLares ln nasugbu lnLo a LourlsL area known as Lhe 8aLulao 8esorL Complex, and 13.32 hecLares ln
8arangay Caylaway as wlLhln Lhe poLenLlal LourlsL belL.

eLlLloner presenLs evldence before us LhaL Lhese areas are ad[acenL Lo Lhe haclendas sub[ecL of Lhls peLlLlon,
hence, Lhe haclendas should llkewlse be converLed.

eLlLloner urges Lhls CourL Lo Lake cognlzance of Lhe converslon proceedlngs and rule accordlngly.

We do noL agree.

uA8's fallure Lo observe due process ln Lhe acqulslLlon of peLlLloner's landholdlngs does noL lpso facLo glve Lhls
CourL Lhe power Lo ad[udlcaLe over peLlLloner's appllcaLlon for converslon of lLs haclendas from agrlculLural Lo
non-agrlculLural.

1he agency charged wlLh Lhe mandaLe of approvlng or dlsapprovlng appllcaLlons for converslon ls Lhe uA8.

AL Lhe Llme peLlLloner flled lLs appllcaLlon for converslon, Lhe 8ules of rocedure governlng Lhe processlng and
approval of appllcaLlons for land use converslon was Lhe uA8 A. C. no. 2, Serles of 1990.

under Lhls A. C., Lhe appllcaLlon for converslon ls flled wlLh Lhe MA8C where Lhe properLy ls locaLed.

1he MA8C revlews Lhe appllcaLlon and lLs supporLlng documenLs and conducLs fleld lnvesLlgaLlon and ocular
lnspecLlon of Lhe properLy.

1he flndlngs of Lhe MA8C are sub[ecL Lo revlew and evaluaLlon by Lhe rovlnclal Agrarlan 8eform Cfflcer (A8C).

1he A8C may conducL furLher fleld lnvesLlgaLlon and submlL a supplemenLal reporL LogeLher wlLh hls
recommendaLlon Lo Lhe 8eglonal Agrarlan 8eform Cfflcer (8A8C) who shall revlew Lhe same.

lor lands less Lhan flve hecLares, Lhe 8A8C shall approve or dlsapprove appllcaLlons for converslon.

lor lands exceedlng flve hecLares, Lhe 8A8C shall evaluaLe Lhe A8C 8eporL and forward Lhe records and hls
reporL Lo Lhe undersecreLary for Legal Affalrs.

AppllcaLlons over areas exceedlng flfLy hecLares are approved or dlsapproved by Lhe SecreLary of Agrarlan 8eform.

lndeed, Lhe docLrlne of prlmary [urlsdlcLlon does noL warranL a courL Lo arrogaLe unLo lLself auLhorlLy Lo resolve a
conLroversy Lhe [urlsdlcLlon over whlch ls lnlLlally lodged wlLh an admlnlsLraLlve body of speclal compeLence.

uA8 ls ln a beLLer poslLlon Lo resolve peLlLloner's appllcaLlon for converslon, belng prlmarlly Lhe agency possesslng
Lhe necessary experLlse on Lhe maLLer.

1he power Lo deLermlne wheLher Paclendas allco, 8anllad and Caylaway are non-agrlculLural, hence, exempL
from Lhe coverage of Lhe CA8L lles wlLh Lhe uA8, noL wlLh Lhls CourL.

Ak1 II

89

llnally, we sLress LhaL Lhe fallure of uA8 Lo comply wlLh Lhe requlslLes of due process ln Lhe acqulslLlon
proceedlngs does noL glve Lhls CourL Lhe power Lo nulllfy Lhe CLCA's already lssued Lo Lhe farmer beneflclarles.

1o assume Lhe power ls Lo shorL-clrculL Lhe admlnlsLraLlve process, whlch has yeL Lo run lLs regular course.

uA8 musL be glven Lhe chance Lo correcL lLs procedural lapses ln Lhe acqulslLlon proceedlngs.

ln Paclenda allco alone, CLCA's were lssued Lo 177 farmer beneflclarles ln 1993.

Slnce Lhen unLll Lhe presenL, Lhese farmers have been culLlvaLlng Lhelr lands.

lL goes agalnsL Lhe baslc precepLs of [usLlce, falrness and equlLy Lo deprlve Lhese people, Lhrough no faulL of Lhelr
own, of Lhe land Lhey Llll. Anyhow, Lhe farmer beneflclarles hold Lhe properLy ln LrusL for Lhe rlghLful owner of Lhe
land.

4.7 T+",-%$ *)9 U.$)0)( "' ?"*9,8

Cabrera vs. CA (1991)

IAC1S :
1he rovlnce of CaLanduanes soughL Lo make Lhe access Lo lLs caplLol bulldlng easler by replaclng Lhe old road wlLh
a new road LhaL was dlrecLly connecLed Lo Lhe pler. 1he provlnclal councll enacLed 8esoluLlon no. 138, LhaL (1)
closed Lhe old road Lo Lhe caplLol bulldlng, and (2) allowed Lhe properLy owners LhaL wlll be affecLed by Lhe
bulldlng of Lhe new road Lo clalm porLlon of Lhe old road ln proporLlon Lo Lhe properLy Lhey wlll glve up for Lhe
new road. 1wo of Lhose affecLed properLy owners, Mr Ale[andro and Mr ena declded Lo planL vegeLables and
operaLe a plggery farm. 1helr nelghbour, Mr Cabrera, who was an orlglnal occupanL of Lhe norLhern parL of Lhe old
road flled wlLh Lhe Cll an acLlon for 8esLoraLlon of ubllc 8oad and/or AbaLemenL of nulsance, AnnulmenL of
8esoluLlons and uocumenLs wlLh uamages. Mr Cabrera argued LhaL Lhe road cannoL be approprlaLed because lL
was beyond Lhe commerce of man. Pe argued LhaL Lhe provlnclal governmenL cannoL barLer prlvaLe properLy wlLh
publlc road wlLhouL prlor closure of Lhe road, and LhaL such closure has ln[ured hls famlly because Lhey can no
longer use Lhe naLlonal road Lo Lhe caplLol and now musL use a smaller road.

1he Cll and Lhe CourL of Appeals ruled ln favour of Lhe provlnclal governmenL. 8ased on 8epubllc AcL no. 3183 ln
relaLlon Lo SecLlon 2246 of Lhe 8evlsed AdmlnlsLraLlve Code, munlclpal auLhorlLles have powers Lo close
Lhoroughfares.

ISSULS:
1. Was Lhere a valld closure of Lhe publlc road?
2. ls Mr Cabrera enLlLled Lo damages?

nLLD:
1. ?es, Lhere was a valld closure of Lhe road. 1he quesLloned resoluLlon clearly sLaLed Lhe closure of Lhe road
before barLer was done. lL ls wlLhln Lhe scope of auLhorlLy of Lhe provlnclal governmenL, and as clLed ln Lhe cases
of Cebu Cxygen and AceLylene Co., lnc. v 8ercllles and lavls v ClLy of 8agulo. 1he lnLenLlon of Lhe provlnclal
governmenL was well wlLhln Lhe general welfare clause as Lhe new road ls more accesslble and convenlenL for Lhe
resL of Lhe communlLy.
2. no, Mr Cabrera ls noL enLlLled Lo damages. Pe was noL lefL wlLhouL a recourse due Lo Lhe closure of Lhe old road.
Pe sLlll had a way ln and ouL of hls properLy. ln facL, durlng Lhe pendency of Lhe Lrlal, Lhe courL offlclals dld noL
have dlfflculLy geLLlng Lo Mr Cabrera's properLy durlng ocular lnspecLlon. lL ls noL falr for Lhe enLlre communlLy Lo
pay for Lhe prlce of hls lnconvenlence when everyone else wlll have a more convenlenL Llme.
Ak1 II

90

MMDA vs. 8e| A|r V|||age Assn. Inc., (2000)

IAC1S :
1. eLlLloner MMuA ls a governmenL agency Lasked wlLh Lhe dellvery of baslc servlces ln MeLro Manlla,
lncludlng LransporL and Lrafflc managemenL." 8espondenL 8el-Alr vlllage AssoclaLlon, lnc. ls Lhe reglsLered owner
of nepLune SLreeL, a prlvaLe road lnslde 8el-Alr vlllage.
2. nepLune runs parallel Lo kalayaan Avenue, a naLlonal road open Lo Lhe general publlc.
3. 8el-Alr recelved from MMuA, Lhrough lLs Chalrman, a noLlce requesLlng lL Lo open nepLune SLreeL Lo
publlc vehlcular Lrafflc for Lhe safe and convenlenL movemenL of persons". 8el-Alr was also apprlsed LhaL Lhe
perlmeLer wall separaLlng Lhe subdlvlslon from Lhe ad[acenL kalayaan Avenue would be demollshed.
4. 8el-Alr lnsLlLuLed agalnsL MMuA a case for ln[uncLlon and prayed for Lhe lssuance of a Lemporary
resLralnlng order and prellmlnary ln[uncLlon en[olnlng Lhe openlng of nepLune SLreeL and prohlblLlng Lhe
demollLlon of Lhe perlmeLer wall.
3. MMuA clalms LhaL lL has Lhe auLhorlLy Lo open nepLune SLreeL Lo publlc Lrafflc because lL ls an agenL of
Lhe sLaLe endowed wlLh pollce power ln Lhe dellvery of baslc servlces ln MeLro Manlla so LhaL Lhere ls no need for
Lhe ClLy of MakaLl Lo enacL an ordlnance openlng nepLune SLreeL Lo Lhe publlc.

ISSUL :
WheLher or noL Lhe MeLropollLan Manlla uevelopmenL AuLhorlLy (MMuA) has Lhe mandaLe Lo open nepLune
SLreeL Lo publlc Lrafflc pursuanL Lo lLs regulaLory and pollce powers?

nLLD :
no.

kA1IC :
1. ollce power ls lodged prlmarlly ln Lhe naLlonal LeglslaLure. lL cannoL be exerclsed by any group or body
of lndlvlduals noL possesslng leglslaLlve power. Cur Congress delegaLed pollce power Lo Lhe local governmenL unlLs
ln Lhe Local CovernmenL Code of 1991. 8uL Lhe MMuA ls noL a local governmenL unlL or a publlc corporaLlon
endowed wlLh leglslaLlve power. Lven lLs governlng board, Lhe MeLro Manlla Councll has noL been delegaLed any
leglslaLlve power, unllke Lhe leglslaLlve bodles of local governmenL unlLs.
2. 1he funcLlons of MMuA are admlnlsLraLlve ln naLure. Accordlng Lo lLs CharLer, 8.A. 7924:
"Sec. 2. CreaLlon of Lhe MeLropollLan Manlla uevelopmenL AuLhorlLy. -- -x x x.
1he MMuA shall perform plannlng, monlLorlng and coordlnaLlve funcLlons, and ln Lhe process
exerclse regulaLory and supervlsory auLhorlLy over Lhe dellvery of meLro-wlde servlces wlLhln
MeLro Manlla, wlLhouL dlmlnuLlon of Lhe auLonomy of Lhe local governmenL unlLs concernlng
purely local maLLers."
3. eLlLloner cannoL seek refuge ln Lhe cases of Sangalang v. lnLermedlaLe AppellaLe CourL where Lhe CourL
upheld cerLaln ordlnances as a leglLlmaLe exerclse of pollce power because boLh MakaLl and Lhe Lhen MeLro
Manlla Commlsslon whlch lssued Lhe sald ordlnances had Lhe power Lo enacL Lhem. 1he MMC under . u. no. 824
ls noL Lhe same enLlLy as Lhe MMuA under 8. A. no. 7924. unllke Lhe MMC, Lhe MMuA has no power Lo enacL
ordlnances for Lhe welfare of Lhe communlLy.

Sanga|ang vs. IAC (1988)

IAC1S:
- 1. 8el-Alr vlllage ls locaLed norLh of 8uendla Avenue exLenslon (now Sen. Cll !. uyaL Ave.)
across a sLreLch of commerclal block from 8eposo SLreeL ln Lhe wesL up Lo Zodlac SLreeL ln Lhe easL.
- lalnLlffs are all elLher resldenLs of 8el Alr vlllage or Lhe 8el Alr vlllage AssoclaLlon (8AvA).
- ln Lhe 1930's 8el Alr vlllage properLy was sold by MakaLl uevelopmenL CorporaLlon whlch was
laLer merged wlLh Ayala CorporaLlon.
Ak1 II

91

- 1he loLs were sub[ecL Lo cerLaln resLrlcLlons namely: 1)All loL owners would auLomaLlcally be a
member of 8AvA and 2) 1he loLs may only be used for domesLlc purposes, whlch would lasL for a perlod of 30
years.
- AL Lhe Llme Lhe area was open Lo all klnds of people and even anlmals. 1he resldenLs declded Lo
bulld a wall along Lhe commerclal slde of [uplLer sLreeL.
- LvenLually Ayala CorporaLlon declded Lo sell Lhe loLs on Lhe commerclal slde of [uplLer sLreeL Lo
Lhe publlc. ln 1972, 8ava and Ayala agreed LhaL Lhe loL owners would be members of 8AvA and would be sub[ecL
Lo Lhe same deed of resLrlcLlon of oLher resldenLs ln Lhe subdlvlslon.
- Cn Aprll 4, 1973, Lhe munlclpal councll of MakaLl enacLed lLs ordlnance no 81, provldlng for Lhe
zonlflcaLlon of makaLl. uner Lhls ordlnance, 8el alr vlllage was classlfled as a class A resldenLlal zone wlLh lLs
boundary ln Lhe souLh Lx1LnulnC 1C 1PL CLn1L8 LlnL Cl !ul1L8 S18LL1. 1he oLher slde of Lhe sLreeL ln
beLween buendla and unLll Lhe cenLer llne of !uplLer sLreeL was made an AdmlnlsLraLlve Cfflce Zone.
- !an 1977, 1he offlce of Lhe Mayor wroLe Lo 8AvA LhaL ln order Lo ease Lrafflc congesLlon !uplLer
sLreeL would be opened up Lo Lhe publlc. 8AvA requesLed for Lhe lndeflnlLe posLponemenL of Lhe plan because of
Lhe concern of Lhe resldenLs. llnally on AugusL 1977 Lhe offlclals of MakaLl removed Lhe gaLes ln order Lo open Lhe
enLlre lengLh of !uplLer sLreeL Lo Lhe publlc. 8ecause of Lhls Lhere was a huge lncrease of Lrafflc along !uplLer sLreeL.
- 1he commerclal esLabllshmenLs on Lhe souLhern slde of [uplLer sLreeL broke down Lhe wall as lL
was no longer necessary and seL up shop.
- Lven Lhe resldenLlal loLs on Lhe norLhern slde of !uplLer sLreeL some chose Lo use as commerclal
due Lo Lhe lncrease ln Lrafflc ln Lhe area.
- Cn March 1981, Lhe 'comprehenslve zonlng ordlnance' was passed by Lhe MMC as ordlnance 81-
01. 1hls ordlnance made 8el Alr vlllage 8Cunu 8? !ul1L8 S18LL1 and no longer Lhe cenLer llne. SlgnlflcanLly Lhe
oLher slde of !uplLer sLreeL was classlfled as Plgh lnLenslLy Commerclal zone.
- Several resldenLs as well as 8AvA flled sulL clalmlng 1) Ayala corp for breach of conLracL ln
allowlng Lhe wall Lo be broken down usherlng ln a full commerclallzaLlon of !uplLer sLreeL and 2)agalnsL some
resldenLs LhaL had used Lhelr loLs as commerclal ln vlolaLlon of Lhe resLrlcLlons..

LCWL8 CCu81S: plalnLlffs won, Lhen losL on appeal, Lhe CA upholdlng Lhe ordlnances as valld under pollce power
and LhaL Lhey reclasslfled Lhe area Lo allow commerclal loLs.

ISSULS:
1) WCn Ayala corp was llable for breach of conLracL for Lhe wall and Lhe llmlLed use of !uplLer sLreeL?
2) WCn Lhe loL owners are llable?

nLLD]kA1IC :
nC. AlLhough !uplLer sLreeL was donaLed Lo 8AvA ln 1978 Lhere was no lnLenLlon Lo llmlL lLs use Lo bel alr vlllage
resldenLs, ln facL Lhe deed lncluded Lhe general publlc. Also as regards Lhe wall Lhere was no proof LhaL Lhere was
any such agreemenL beLween Lhe resldenLs and Ayala corp LhaL a wall be malnLalned.

nC. we llkewlse exculpaLe Lhe prlvaLe respondenLs noL only because of Lhe facL LhaL [uplLer sLreeL ls noL covered
by Lhe deed of resLrlcLlons buL chlefly because Lhe naLlonal CovernmenL lLself Lhrough Lhe MMC had reclasslfled
!uplLer sLreeL lnLo a hlgh denslLy commerclal zone pursuanL Lo lLs ordlnance 81-01."
lL ls noL LhaL we are saylng LhaL resLrlcLlve easemenLs, especlally Lhe easemenLs hereln quesLlon, are
lnvalld or lneffecLlve. As far as Lhe bel alr subdlvlslon lLself ls concerned, cerLalnly, Lhey are valld and
enforceable. 8uL Lhey are llke all conLracLs sub[ecL Lo Lhe overrldlng demands needs and lnLeresLs of Lhe
greaLer number as Lhe sLaLe may deLermlne ln Lhe leglLlmaLe exerclse of pollce power. Cur [urlsdlcLlon
guaranLees sancLlLy of Lhe conLracL and ls ald Lo be Lhe law beLween Lhe conLracLlng parLles, buL whlle lL ls
so, lL cannoL conLravene law, morals, good cusLoms, publlc order, or publlc pollcy. Above all lL cannoL be
ralsed as a deLerrenL Lo pollce power deslgned preclsely Lo promoLe healLh safeLy, peace, and enhance
Lhe common good, aL Lhe expense of conLracLual rlghLs, whenever necessary... 1he non lmpalrmenL clause
ls secondary Lo Lhe more compelllng lnLeresLs of Lhe general welfare."

Ak1 II

92

Macas|ano vs. D|okno (1992)

IAC1S :
- !une 13, 1990. 1he munlclpallLy of aranaque passed Crdlnance no. 86, whlch auLhorlzed Lhe closure of !.
Cabrlel, C.C. Cruz, 8ayanlhan, LL. Carcla LxLenslon and Cpena SLreeLs aL 8aclaran, and Lhe esLabllshmenL of a flea
markeL Lhereon.
- MeLropollLan Manlla AuLhorlLy approved Crdlnance no. 86 sub[ecL Lo Lhe followlng condlLlons: (1) sLreeLs are noL
used for vehlcular Lrafflc and ma[orlLy of resldenLs do noL oppose Lhe esLabllshmenL of flea markeL/vendlng areas,
(2) 2-meLer wlde mlddle road Lo be used as flea markeL Lo be marked dlsLlncLly, and LhaL Lhe 2 meLers on boLh
sldes Lo be used by pedesLrlans, (3) Llme durlng whlch Lhe vendlng area ls Lo be used ls clearly deslgnaLed, (4) use
of vendlng areas shall be Lemporary and shall be closed once Lhe reclalmed areas are developed and donaLed by
Lhe ubllc LsLaLe AuLhorlLy.
- MunlclpallLy and alanyag, a servlce cooperaLlve, enLered lnLo an agreemenL whereby alanyag shall operaLe a
flea markeL and remlL dues Lo Lhe Lreasury of Lhe munlclpal governmenL.
- 8rlg. Cen. Macaslano, n SuperlnLendenL of Lhe MeLropollLan 1rafflc Command, ordered Lhe desLrucLlon and
conflscaLlon of sLalls. Macaslano gave alanyag 10 days Lo dlsconLlnue Lhe flea markeL. CLherwlse, Lhe sLalls shall
be dlsmanLled.
- MunlclpallLy and alanyag flled [olnL peLlLlon for prohlblLlon and mandamus. 81C lssued 18C. LaLer, lL upheld
Lhe valldlLy of Crdlnance no. 86.
- Macaslano, Lhru CSC, flled peLlLlon wlLh SC.

ISSUL :
WheLher or noL an ordlnance auLhorlzlng Lhe lease and use of publlc sLreeLs or Lhoroughfares as slLes for flea
markeLs ls valld.

ArgumenLs of parLles:
- Sol Cen, ln behalf of Macaslano: Munlclpal roads are publlc properLles and cannoL be sub[ecL Lo prlvaLe
approprlaLlon or prlvaLe conLracL. 1he munlclpallLy cannoL, ln Lhe absence of speclflc auLhorlLy granLed by Lhe
leglslaLure, converL properLy already ln publlc use Lo anoLher publlc use. Also, assumlng LhaL Lhe munlclpallLy was
auLhorlzed Lo close Lhe sLreeLs, lL falled Lo comply wlLh condlLlons seL forLh by Lhe MMA.
- 81C declslon upholdlng Lhe legallLy of Crdlnance no. 86: Chap. ll Sec. 10 of Lhe LCC (8 337) empowers LCus Lo
close lLs roads, sLreeLs or alleys sub[ecL Lo llmlLaLlons sLaLed Lhereln. 1he auLhorlLy of Macaslano as ollce
SuperlnLendenL ceases Lo be operaLlve on Lhe ground LhaL Lhe sLreeLs covered by Lhe ordlnance cease Lo be publlc
Lhoroughfares.

nLLD :
1he ordlnance ls lnvalld
- roperLles of Lhe local governmenL devoLed Lo publlc servlce are under Lhe absoluLe conLrol of Congress. Local
governmenLs have no auLhorlLy Lo conLrol or regulaLe Lhe use of publlc properLles unless speclflc auLhorlLy ls
vesLed upon Lhem by Congress.
- Sec. 10, Chap. ll, LCC (8 337): Closure of roads. - A local governmenL unlL may llkewlse, Lhrough lLs head acLlng
pursuanL Lo a resoluLlon of lLs sanggunlang and ln accordance wlLh exlsLlng law and Lhe provlslons of Lhls Code,
close any barangay munlclpal, clLy or provlnclal road, sLreeL, alley, park or square. no such way or place or any
parL Lhereof shall be closed wlLhouL lndemnlfylng any person pre[udlced Lhereby. A properLy Lhus wlLhdrawn from
publlc use may be used or conveyed for any purpose for whlch oLher real properLy belonglng Lo Lhe local unlL
concerned mlghL be lawfully used or conveyed.
- 1he above provlslon auLhorlzes Lhe LCu Lo close a publlc sLreeL or Lhoroughfare for Lhe sole purpose of
wlLhdrawlng lL from publlc use when clrcumsLances show LhaL lL ls no longer lnLended or necessary for publlc use
or publlc servlce. lL Lhen becomes paLrlmonlal properLy of Lhe LCu whlch can be Lhe ob[ecL of an ordlnary
conLracL.
- 1he sub[ecL roads and sLreeLs are ordlnarlly used for vehlcular Lrafflc and are sLlll consldered publlc properLy
devoLed Lo publlc use. 1he local governmenL had no power Lo use lL for anoLher purpose or lease lL Lo prlvaLe
Ak1 II

93

persons.
- Lven assumlng LhaL Lhe munlclpallLy has Lhe auLhorlLy Lo pass Lhe ordlnance, lL cannoL be valldly lmplemenLed
because Lhe munlclpallLy falled Lo show LhaL lL had complled wlLh Lhe condlLlons seL forLh by Lhe MMA.

eLlLlon granLed, declslon reversed and seL aslde.

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