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(d) "Donor" - an individual authorized under this Act to donate all or maintenance would not be successful in resorting such

part of the body of a decedent.1awphilŸalf natural functions. In this case, death shall be deemed to
have occurred at the time when these conditions first
(e) "Hospital" - a hospital licensed, accredited or approval under appeared.
the law, and includes, a hospital operated by the Government.
The death of the person shall be determined in accordance with the
(f) "Part" - includes transplantable organs, tissues, eyes, bones, acceptable standards of medical practice and shall be diagnosed
arteries, blood, other fluids and other portions of the human separately by the attending physician and another consulting physician,
body. both of whom must be appropriately qualified and suitably experienced
in the care of such parties. The death shall be recorded in the patient's
(g) "Person" - an individual, corporation, estate, trust, medical record.
partnership, association, the Government or any of its
subdivisions, agencies or instrumentalities, including Section 3. Person Who May Execute A Legacy. – Any individual, at least
government-owned or -controlled corporations; or any other eighteen (18) years of age and of sound mind, may give by way of
legal entity. legacy, to take effect after his death, all or part of his body for any
purpose specified in Section 6 hereof.
(h) "Physician" or "Surgeon" - a physician or surgeon licensed or
authorized to practice medicine under the laws of the Republic of Section 4. Person Who May Execute a Donation. –
the Philippines.
(a) Any of the following, person, in the order of property stated
(i) "Immediate Family" of the decedent - the persons hereunder, in the absence of actual notice of contrary intentions
enumerated in Section 4(a) of this Act. by the decedent or actual notice of opposition by a member of
the immediate family of the decedent, may donate all or any
(j) "Death" - the irreversible cessation of circulatory and part of the decedent's body for any purpose specified in Section
respiratory functions or the irreversible cessation of all functions 6 hereof:
of the entire brain, including the brain stem. A person shall be
medically and legally dead if either:1awphilŸalf (1) Spouse;

(1) In the opinion of the attending physician, based on (2) Son or daughter of legal age;
the acceptable standards of medical practice, there is an
absence of natural respiratory and cardiac functions and, (3) Either parent;
attempts at resuscitation would not be successful in
restoring those functions. In this case, death shall be (4) Brother or sister of legal age; or
deemed to have occurred at the time these functions
ceased; or (5) Guardian over the person of the decedent at the time
of his death.
(2) In the opinion of the consulting physician, concurred
in by the attending physician, that on the basis of (b) The persons authorized by sub-section (a) of this Section
acceptable standards of medical practice, there is an may make the donation after or immediately before death.
irreversible cessation of all brain functions; and
considering the absence of such functions, further
Section 5. Examination of Human Body or Part Thereof . – A legacy of
attempts at resuscitation or continued supportive
donation of all or part of a human body authorizes any examination
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necessary to assure medical acceptability of the legacy or donation for (b) A legacy of all or part of the human body under Section 3
the purpose(s) intended. hereof may also be made in any document other than a will. The
legacy becomes effective upon death of the testator and shall be
For purposes of this Act, an autopsy shall be conducted on the cadaver respected by and binding upon his executor or administrator,
of accident, trauma, or other medico-legal cases immediately after the heirs, assigns, successors-in-interest and all members of the
pronouncement of death, to determine qualified and healthy human family. The document, which may be a card or any paper
organs for transplantation and/or in furtherance of medical science. designed to be carried on a person, must be signed by the
testator in the presence of two witnesses who must sign the
Section 6. Persons Who May Become Legatees or Donees. – The document in his presence. If the testator cannot sign, the
following persons may become legatees or donees of human bodies or document may be signed for him at his discretion and in his
parts thereof for any of the purposes stated hereunder: presence, in the presence of two witnesses who must, likewise,
sign the document in the presence of the testator. Delivery of
the document of legacy during the testator's lifetime is not
(a) Any hospital, physician or surgeon - For medical or dental
necessary to make the legacy valid.
education, research, advancement of medical or dental science,
therapy or transplantation;
(c) The legacy may be made to a specified legatee or without
specifying a legatee. If the legacy is made to a specified legatee
(b) Any accredited medical or dental school, college or university
who is not available at the time and place of the testator's
- For education, research, advancement of medical or dental
death, the attending physician or surgeon, in the absence of any
science, or therapy;
expressed indication that the testator desired otherwise, may
accept the legacy as legatee. If the legacy does not specify a
(c) Any organ bank storage facility - For medical or dental legatee, the legacy may be accepted by the attending physician
education, research, therapy, or transplantation; and or surgeon as legatee upon or following the testator's death. The
physician who becomes a legatee under this subsection shall not
(d) Any specified individual - For therapy or transplantation participate in the procedures for removing or transplanting a
needed by him. part or parts of the body of the decedent.

Section 7. Duty of Hospitals. – A hospital authorized to receive organ (d) The testator may designate in his will, card or other
donations or to conduct transplantation shall train qualified personnel document, the surgeon or physician who will carry out the
and their staff to handle the task of introducing the organ donation appropriate procedures. In the absence of a designation, or if
program in a humane and delicate manner to the relatives of the the designee is not available, the legatee or other persons
donor-decedent enumerated in Section 4 hereof. The hospital shall authorized to accept the legacy may authorize any surgeon or
accomplish the necessary form or document as proof of compliance physician for the purpose.
with the above requirement.
Section 9. Manner of Executing a Donation. – Any donation by a person
Section 8. Manner of Executing a Legacy. – authorized under subsection (a) of Section 4 hereof shall be sufficient if
it complies with the formalities of a donation of a movable property.
(a) Legacy of all or part of the human body under Section 3
hereof may be made by will. The legacy becomes effective upon In the absence of any of the persons specified under Section 4 hereof
the death of the testator without waiting for probate of the will. and in the absence of any document of organ donation, the physician in
If the will is not probated, or if it is declared invalid for charge of the patient, the head of the hospital or a designated officer of
testamentary purposes, the legacy, to the extent that it was the hospital who has custody of the body of the deceased classified as
executed in good faith, is nevertheless valid and effective. accident, trauma, or other medico-legal cases, may authorize in a
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public document the removal from such body for the purpose of testator or donor may amend or revoke the legacy or donation
transplantation of the organ to the body of a living person: Provided, either by:
That the physician, head of hospital or officer designated by the
hospital for this purpose has exerted reasonable efforts, within forty- (1) The execution and delivery to the legatee or donee of
eight (48) hours, to locate the nearest relative listed in Section 4 hereof a signed statement to that effect; or
or guardian of the decedent at the time of death.
(2) An oral statement to that effect made in the presence
In all donations, the death of a person from whose body an organ will of two other persons and communicated to the legatee or
be removed after his death for the purpose of transplantation to a living donee; or
person, shall be diagnosed separately and certified by two (2) qualified
physicians neither of whom should be: (3) A statement to that effect during a terminal illness or
injury addressed to an attending physician and
(a) A member of the team of medical practitioners who will communicated to the legatee or donee; or
effect the removal of the organ from the body; nor
(4) A signed card or document to that effect found on the
(b) The physician attending to the receipt of the organ to be person or effects of the testator or donor.
removed; nor
(b) Any will, card or other document, or an executed copy
(c) The head of hospital or the designated officer authorizing the thereof, which has not been delivered to the legatee or donee
removal of the organ. may be revoked by the testator or donor in the manner provided
in subsection (a) of this Section or by destruction, cancellation
Section 10. Person(s) Authorized to Remove Transplantable Organs. – or mutilation of the document and all executed copies thereof.
Only authorized medical practitioners in a hospital shall remove and/or
transplant any organ which is authorized to be removed and/or Any legacy made by a will may also be amended or revoked in
transplanted pursuant to Section 5 hereof. the manner provided for amendment or revocation of wills, or as
provided in subsection (a) of this Section.
Section 11. Delivery of Document of Legacy or Donation. – If the legacy
or donation is made to a specified legatee or donee, the will, card or Section 13. Rights and Duties After Death. –
other document, or an executed copy thereof, may be delivered by the
testator or donor, or is authorized representative, to the legatee or (a) The legatee or donee may accept or reject the legacy or
donee to expedite the appropriate procedures immediately after death. donation as the case may be. If the legacy of donation is of a
The will, card or other document, or an executed copy thereof, may be part of the body, the legatee or donee, upon the death of the
deposited in any hospital or organ bank storage facility that accepts it testator and prior to embalming, shall effect the removal of the
for safekeeping or for facilitation or procedures after death. On the part, avoiding unnecessary mutilation. After removal of the part,
request of any interested party upon or after the testator's death, the custody of the remainder of the body vests in the surviving
person in possession shall produce the document of legacy or donation spouse, next of kin or other persons under obligation to dispose
for verification. of the body of the decedent.

Section 12. Amendment or Revocation of Legacy or Donation. – (b) Any person who acts in good faith in accordance with the
terms of this Act shall not be liable for damages in any civil
a) If he will, card or other document, or an executed copy action or subject to prosecution in any criminal proceeding of
thereof, has been delivered to a specific legatee or donee, the this Act.

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Section 14. International Sharing of Human Organs or Tissues. –
Sharing of human organs or tissues shall be made only through  Definition (Reviewer)
exchange programs duly approved by the Department of Health:  Four Major Categories (Reviewer)
Provided, That foreign organ or tissue bank storage facilities and similar  Types of Immovables per Category (Reviewer)
establishments grant reciprocal rights to their Philippine counterparts to
draw organs or tissues at any time. 2. Movables (Art. 416, 417 & 418 – CC)

Section 15. Information Drive. – In order that the public will obtain the  Categories (Reviewer)
maximum benefits from this Act, the Department of Health, in  Consumable vs. Non-Consumable (Reviewer)
cooperation with institutions, such as the National Kidney Institute,  Fungible vs. Non-Fungible
civic and non-government health organizations and other health related
agencies, involved in the donation and transplantation of human 3. Cases;
organs, shall undertake a public information program.
LOPEZ vs. OROSA, 109 Phil 98;
The Secretary of Health shall endeavor to persuade all health Facts:
professionals, both government and private, to make an appeal for After agreeing to make an investment in Orosa’s theatre business and
human organ donation. his assurance that he would be personally liable for any account that
the said construction might incur, Lopez delivered the lumber which
was used for the construction of the Plaza Theatre. But of the total
Section 16. Rules and Regulations. – The Secretary of Health, after
cost of the materials amounting to P62,255.85, Lopez was paid only
consultation with all health professionals, both government and private,
P20848.50.
and non-government health organizations shall promulgate such rules
and regulations as may be necessary or proper to implement this Act.
Plaza Theatre was erected on a piece of land formerly owned by Orosa,
and was acquired by the corporation. As Lopez was pressing Orosa for
Section 17. Repealing Clause. – All laws, decrees, ordinances, rules and
payment of remaining unpaid obligation, the latter promised to obtain a
regulations, executive or administrative orders, and other presidential
bank loan by mortgaging the properties of Plaza Theatre. Unknown to
issuance inconsistent with this Act, are hereby repealed, amended or
Lopez, the corporation already got a loan from a bank with Luzon
modified accordingly.
Surety Company as surety, and the corporation in turn executed a
mortgage on the land and building in favor of said company as counter-
Section 18. Separability Clause. – The provisions of this Act are hereby security.
deemed separable. If any provision hereof should be declared invalid or
unconstitutional, the remaining provisions shall remain in full force and Persistent demand from Lopez caused Orosa to execute an alleged
effect.
“deed of assignment” of his 480 shares of stock of Plaza Theatre, at
P100 per share; and as the obligation still remain unsettled, Lopez filed
Section 19. Effectivity. – This Act shall take effect after fifteen (15) a complaint against Orosa and Plaza Theatre Inc, praying that xxx in
days following its publication in the Official Gazette or at least two (2) case defendants fail to pay, the building and land owned by corporation
newspapers of general circulation. be sold at public auction, or the shares of the capital stock be sold, and
the proceeds thereof be applied to said indebtedness.
Approved: January 7, 1992
As a defense, Orosa contended that the shares of stocks were personal
B. Classification as Movables and Immovables; properties and cannot be made to cover and satisfy the obligation. it
was thus prayed that he be declared exempted from payment of
1. Immovables – Art. 415 – (CC)

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deficiency in case the proceeds from the sale of properties are not whether or not said structure and the land on which it is adhered to
enough. belong to the same owner.

The surety company, upon discovery that the land was already A close examination of the provision of the Civil Code reveals that the
registered, file a petition to annotate the rights and interests of the law gives preference to unregistered refectionary credits only with
surety company over the said properties, which was opposed by Lopez respect to the real estate upon the refection or work was made. The
who asserted that he has preferred lien over the properties. conclusion is that it must be that the lien so created attaches merely to
the immovable property for the construction or repair of which the
The two cases were heard jointly, and lower court held that Orosa were obligation was incurred. Therefore, the lien in favor of appellant for the
liable for the unpaid balance of the cost of lumber used in the unpaid value of the lumber used in construction of the building attaches
construction, and Lopez thus acquired materialman’s lien over it. In only to said structure and to no other property of the obligors.
making the pronouncement that tyhe lien was merely confined to the
building and did not extend to the land where it was built, the trial Wherefore, and on the strength of the foregoing considerations, the
jduge took into consideration that xxx codal provisions specifying that decision appealed from is hereby affirmed, with costs against appellant.
refection credits are preferred could refer to buildings which are also It is so ordered.
classified as real properties upon which the refaction was made. Orosa
were thus required to xxx with respect tohe building, said mortgage PUNZALAN vs. LACSAMANA, 121 SCRA 331
was subject to materialmen’s lien in favor of Lopez. Immovable Property Case

Lopez tried to secure a modification of decision in so far as it declared FACTS:


that lien did not extend to the land, but was denied by court. Hence,
the appeal. Punsalan was the owner of a piece of land, which he mortgaged in favor
of PNB. Due to his failure to pay, the mortgage was foreclosed and the
Issue: land was sold in a public auction to which PNB was the highest bidder.
Whether a materialmen’s lien for the value of materials used in the
construction of building attaches to said structure alone, and does not On a relevant date, while Punsalan was still the possessor of the land, it
extend to the land on which building is adhered to. secured a permit for the construction of a warehouse.

Held: A deed of sale was executed between PNB and Punsalan. This contract
Yes. Such lien attaches to structure alone, and does not extend to the was amended to include the warehouse and the improvement thereon.
land where the building is. By virtue of these instruments, respondent Lacsamana secured title
over the property in her name.
In view of employment of the phrase, “real estate or immovable
property”, and in as much as said provision does not contain any Petitioner then sought for the annulment of the deed of sale. Among his
specification delimiting the lien to the building, said article must be allegations was that the bank did not own the building and thus, it
construed as to embrace both the land and building or the structure should not be included in the said deed.
adhering thereto. SC cannot subscribe to this view, for while it is true
that real estate connotes land and building constructed thereon, it is Petitioner’s complaint was dismissed for improper venue. The trial court
obvious that the inclusion of the building, separate and distinct from held that the action being filed in actuality by petitioner is a real action
the land, in the enumeration of what may constitute real properties involving his right over a real property.
could mean only one thing – that the building is by itself an immovable
property. Moreover, in view of the absence of any specific provision of ISSUE:
law to the contrary, a building is an immovable property, irrespective of
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W/N the trial court erred in dismissing the case on the ground of Surety company argued that as the lot on which the house was
improper venue. constructed did not belong to the spouses at the time the chattel
W/N the warehouse is an immovable and must be tried in the province mortgage was executed, the house might be considered as personal
where the property lies. property, and they prayed that the said building be excluded from the
real estate mortgage.
HELD:
Issue:
Warehouse claimed to be owned by petitioner is an immovable or real There is no question over Iya’s right over the land by real estate
property. Buildings are always immovable under the Code. A building mortgage; however, as the building instructed thereon has been the
treated separately from the land on which it is stood is immovable subject of two mortgages, controversy arise as to which of these
property and the mere fact that the parties to a contract seem to have encumbrances should receive preference over the other.
dealt with it separate and apart from the land on which it stood in no
wise changed its character as immovable property. Held:
The building is subject to the real estate mortgage, in favour of Iya.
ASSOCIATED INSURANCE vs. IYA, 103 Phil 972 Iya’s right to foreclose not only the land but also the building erected
Facts: thereon is recognised.
Valino & Valino were the owners and possessors of a house of strong While it is true that real estate connotes the land and the building
materials in Rizal, which they purchased on installment basis. To enable constructed thereon, it is obvious that the inclusion of the building,
her to purchase on credit rice from NARIC, Valino filed a bond separate and distinct from the land, in the enumeration of what may
(P11,000) subscribed by Associated Insurance and Surety Co Inc, and constitute real properties (Article 415), could only mean that a building
as a counter-guaranty, Valino executed an alleged chattel mortgage on is by itself an immovable property. Moreover, in view of the absence of
the aforementioned house in favour of the surety company. At the any specific provision to the contrary, a building is an immovable
same time, the parcel of land which the house was erected was property irrespective of whether or not said structure and the land on
registered in the name of Philippine Realty Corporation. which it is adhered to belong to the same owner.
Valino, to secure payment of an indebtedness (P12,000) executed a
real estate mortgage over the lot and the house in favour of Iya. A building certainly cannot be divested of its character of a realty by
the fact that the land on which it is constructed belongs to another.
Valino failed to satisfy her obligation to NARIC, so the surety company
was compelled to pay the same pursuant to the undertaking of the In the case at bar, as personal properties could only be the subject of a
bond. In turn, surety company demanded reimbursement from Valino, chattel mortgage and as obviously the structure in question is not one,
and as they failed to do so, the company foreclosed the chattel the execution of the chattel mortgage covering said building is clearly
mortgage over the house. As a result, public sale was conducted and invalid and a nullity. While it is true that said document was
the property was awarded to the surety company. correspondingly registered in Chattel Mortgage Registry of Rizal, this
act produced no effect whatsoever, for where the interest conveyed is
The surety company then learned of the existence of the real estate in the nature of real property, the registration of the document in the
mortgage over the lot and the improvements thereon; thus, they registry of chattels is merely a futile act. Thus, the registration of the
prayed for the exclusion of the residential house from the real estate chattel mortgage of a building of strong materials produced no effect as
mortgage and the declaration of its ownership in virtue of the award far as the building is concerned.
given during bidding.
LEUNG YEE vs. STRONG MACHINERY, 37 Phil 644
Iya alleged that she acquired a real right over the lot and the house FACTS: In 1913, Compania Agricola Filipina (CAF) was indebted to two
constructed thereon, and that the auction sale resulting from the personalities: Leung Yee and Frank L. Strong Machinery Co. CAF
foreclosure of chattel mortgage was null and void. purchased some rice cleaning machines from Strong Machinery. CAF

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installed the machines in a building. As security for the purchase price, 3. The defendants-appellants thus defaulted in paying and the
CAF executed a chattel mortgage on the rice cleaning machines including mortgage was extrajudicially foreclosed. The house was auctioned
the building where the machines were installed. CAF failed to pay Strong and bought by the Tumalad’s as the highest bidder.
Machinery, hence the latter foreclosed the mortgage – the same was 4. They then commenced an ejectment case in the MTC which ruled in
registered in the chattel mortgage registry. favor of Tumalad. The defendants-appellants then appealed to the
RTC questioning the legality of the chattel mortgage.
CAF also sold the land (where the building was standing) to Strong
5. While pending, the MTC issued a writ of execution but cannot be
Machinery. Strong Machinery took possession of the building and the
carried because the house has already been demolished 10 days
land.
before pursuant to an order in another ejectment case against the
On the other hand, Yee, another creditor of CAF who engaged in the defendants.
construction of the building, being the highest bidder in an auction 6. The RTC ruled then in favor of Tumalad and ordered the defendants
conducted by the sheriff, purchased the same building where the to pay the rent. This was appealed to the CA which, in turn,
machines were installed. Apparently CAF also executed a chattel certified the case to the SC as only questions of law are involved.
mortgage in favor Yee. Yee registered the sale in the registry of land. 7. Defendants-appellants contend that the chattel mortgage was void
Yee was however aware that prior to his buying, the property has been because the subject matter is a house of strong materials and
sold in favor of Strong Machinery – evidence is the chattel mortgage being an immovable, it can only be the subject of a real estate
already registered by Strong Machinery (constructive notice). mortgage and not a chattel mortgage.
ISSUE: Who is the owner of the building?
HELD: The SC ruled that Strong Machinery has a better right to the
contested property. Yee cannot be regarded as a buyer in good faith as ISSUE: Can defendants claim that the house is an immovable
he was already aware of the fact that there was a prior sale of the same property?
property to Strong Machinery.
The SC also noted that the Chattel Mortgage Law expressly contemplates HELD: No.
provisions for chattel mortgages which only deal with personal
properties. The fact that the parties dealt the building as if it’s a personal
1. The parties to a contract may, by agreement, treat as personal
property does not change the nature of the thing. It is still a real
property that which by nature would be a real property if it was so
property. Its inscription in the Chattel Mortgage registry does not modify
expressly and specifically designated. This is based on the principle
its inscription the registry of real property.
of estoppel.
2. A mortgaged house on a rented land was held to be a personal
property not only because the deed of mortgage considered it as
TUMALAD vs VICENCIO, 41 SCRA 143
such but also because it did not form part of the land.
FACTS: 3. It is now settled that an object placed on land by one who had only
a temporary right to the same does not become immobilized by
attachment.
1. Some time in 1955, Alberta Vicencio and Emiliano Simeon loaned 4. In the contract, the house was expressly designated as chattel
4,800 pesos from Gavino and Generosa Tumalad. As guarantee, mortgage which provides that: “the mortgagor voluntarily cedes,
they executed a chattel mortgage over their house in Quiapo which, sells and transfers by way of chattel mortgage…”
at that time, was being rented from Madrigal and Company, Inc. 5. Although there is no specific statement referring to the house as
2. The mortgage was registered in the Registry of Deeds of Manila. It personal property, the defendants-appellants could only have
was also agreed that default in the payment of any of the meant to convey the house as chattek or intended to treat the
amortizations will make the unpaid balance immediately due and same as such sk that they should not now be allowed to make an
demandable. inconsistent stand by claiming otherwise.
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6. Moreover, the subject house stood on a rented lot to which prejudiced thereby, there is absolutely no reason why a machinery,
defendants-appellants merely had a temporary right as lessee, and which is movable in its nature and becomes immobilized only by
although this cannot in itself alone determine the status of the destination or purpose, may not be likewise treated as such. This is really
property, it does so when combined with other factors to sustain because one who has so agreed is estopped from the denying the
the interpretation of the parties. existence of the chattel mortgage.
7. The SC, however, reversed the decision appealed from on the
ground that the purchaser of the house is not yet entitled, as a In rejecting petitioner’s assertion on the applicability of the Tumalad
matter of right, to its possession as there is a 1-year period within doctrine, the CA lays stress on the fact that the house involved therein
which the mortgagor may redeem the property. was built on a land that did not belong to the owner of such house. But
8. The period of redemption had not yet expired when action was the law makes no distinction with respect to the ownership of the
instituted in the court of origin. The original complaint stated no land on which the house is built and We should not lay down
cause of action and was prematurely filed. distinctions not contemplated by law.

MAKATI LEASING vs. WEAVER, 41 SCRA 143 It must be pointed out that the characterization by the private
respondent is indicative of the intention and impresses upon the property
FACTS the character determined by the parties. As stated in Standard Oil Co. of
Wearever Textile Mills, Inc. executed a chattel mortgage contract in favor New York v. Jaramillo, 44 Phil. 630, it is undeniable that the parties to a
of Makati Leasing and Finance Corporation covering certain raw materials contract may, by agreement, treat as personal property that which by
and machinery. Upon default, Makati Leasing fi led a petition for judicial nature would be a real property as long as no interest of third parties
foreclosure of the properties mortgaged. Acting on Makati Leasing’s would be prejudiced thereby.
application for replevin, the lower court issued a writ of seizure. Pursuant
thereto, the sheriff enforcing the seizure order seized the machinery The status of the subject matter as movable or immovable property was
subject matter of the mortgage. In a petition for certiorari and not raised as an issue before the lower court and the CA, except in a
prohibition, the Court of Appeals ordered the return of the machinery on supplemental memorandum in support of the petition filed in the
the ground that the same can-not be the subject of replevin because it appellate court. There is no record showing that the mortgage has been
is a real property pursuant to Article415 of the new Civil Code, the same annulled, or that steps were taken to nullify the same. On the other hand,
being attached to the ground by means of bolts and the only way to respondent has benefited from the said contract.
remove it from Wearever textile’s plant would be to drill out or destroy
the concrete fl oor. When the motion for reconsideration of Makati
Equity dictates that one should not benefit at the expense of
Leasing was denied by the Court of Appeals, Makati Leasing elevated the
another.
matter to the Supreme Court.
As such, private respondent could no longer be allowed to impugn the
ISSUE
efficacy of the chattel mortgage after it has benefited therefrom.
Whether the machinery in suit is real or personal property from the point
of view of the parties.
Therefore, the questioned machinery should be considered as personal
property.
HELD
There is no logical justification to exclude the rule out the present case
from the application of the pronouncement in Tumalad v Vicencio, 41
SCRA 143. If a house of strong materials, like what was involved in BOARD OF ASSESSMENT APPEALS vs. MERALCO, 10 SCRA 68;
the Tumalad case, may be considered as personal property for Facts:
purposes of executing a chattel mortgage thereon as long as the
parties to the contract so agree and no innocent third party will be Meralco constructed 40 steel towers within Quezon City, which carry

Page 8 of 38
electric transmission wires attached to insulators from its hydro-electric They are not machinery, receptacles, instruments or implements
plant located in the province of Laguna to the City of Manila. intended for industry or works on the land. Meralco is not engaged in
an industry or works on the land in which the steel towers are
The City Assessor of Quezon City declared Meralco's steel towers for constructed.
real property tax.
The decision of the Court of Tax Appeals, which ordered the
Issue: cancellation of the tax declarations, were affirmed by the Supreme
Court.
Whether or not Meralco's steel towers are considered real properties so
that they can be subject to real property tax.
MERALCO SECURITIES vs. CBAA, 114 SCRA 273

Held: Facts:

No, Meralco's steel towers are not considered real properties that can Pursuant to a pipeline concession issued under the Petroleum Act of
be subject to real property tax. 1949, Republic Act No. 387, Meralco Securities installed from Batangas
to Manila a pipeline system consisting of cylindrical steel pipes joined
Article 415 of the Civil Code states the following are immovable together and buried not less than one meter below the surface along the
properties: shoulder of the public highway.

(1) Land, buildings, roads, and constructions of all kinds adhered to


the soil; The pipes are embedded in the soil while the valves are welded to the
pipes so as to make the pipeline system one single piece of property from
(3) Everything attached to an immovable in a fixed manner, in such a end to end.
way that it cannot be separated therefrom without breaking the
material or deterioration of the object;
Pursuant to the Assessment Law, Commonwealth Act No. 470, the
(5) Machinery, receptacles, instruments or implements intended by the
provincial assessor of Laguna treated the pipeline as real property and
owner of the tenement for an industry or works, which may be carried
issued Tax Declarations.
in a building or on a piece of land, and which tends directly to meet the
needs of the said industry or works;
Issues:
The steel towers do not come within the objects mentioned in above
Whether or not the Meralco Securities Pipeline System in Laguna is a
paragraphs.
subject to a realty tax.
They are not construction analogous to buildings nor adhering to the
Held:
soil. They are removable and merely attached to a square metal frame
by means of bolts, which when unscrewed could easily be dismantled
The Court ordered that CBAA did not with grave abuse and discretion and
and moved from place to place.
acted within its jurisdiction in sustaining the holding of the provincial
assessor that Meralco Securities Pipeline System in Laguna is subject to
They are also not attached to an immovable in a fixed manner, and
a realty tax for the following reasons that the pipes are machinery or
they can be separated without breaking the material or causing
improvements and regarded as realty because they are constructions
deterioration upon the object to which they are attached.
adhered to the soil. It is attached to the land in such a way that it cannot
Page 9 of 38
be separated therefrom without dismantling the steel pipes which are have been attached or affixed permanently to the gas station site or
welded to the pipeline. In so far as the pipeline uses valves, pumps and embedded therein, are taxable improvements and machinery within the
control devices to maintain the flow of the oil, it is in a sense a machinery meaning of the Assessment Law and the Real Property Tax Code.
within the meaning of the Real Property Tax Code.
Note:
Thus, the Court dismiss the petition and the questioned decision and Improvements — is a valuable addition made to property or an
resolution of the lower court is affirmed. amelioration in its condition, amounting to more than mere
repairs or replacement of waste, costing labor or capital and
CALTEX vs. CBAA, 114 SCRA 296; intended to enhance its value, beauty or utility or to adapt
Facts: it for new or further purposes.
Machinery — shall embrace machines, mechanical contrivances,
This case is about the realty tax on machinery and equipment installed instruments, appliances and apparatus attached to the real
by Caltex (Philippines) Inc. in its gas stations located on leased land. estate. It includes the physical facilities available for
production, as well as the installations and appurtenant
The machines and equipment consists of underground tanks, elevated service facilities, together with all other equipment
tank, elevated water tanks, water tanks, gasoline pumps, computing designed for or essential to its manufacturing, industrial or
pumps, water pumps, car washer, car hoists, truck hoists, air agricultural purposes.
compressors and tireflators.

BERKENKOTTER vs. CU UNJIENG, 61 Phil 663


The building or shed, the elevated water tank, the car hoist under a
separate shed, the air compressor, the underground gasoline tank, neon
lights signboard, concrete fence and pavement and the lot where they Facts:
are all placed or erected, all of them used in the pursuance of the gasoline
service station business formed the entire gasoline service-station. The Mabalacat Sugar Co., Inc., owner of the sugar central situated in
Mabalacat, Pampanga, obtained from Cu Unjieng e Hijos, a loan secured
The lessor of the land, where the gas station is located, does not become by a first mortgage constituted on two parcels and land "with all its
the owner of the machines and equipment installed therein. Caltex buildings, improvements, sugar-cane mill, steel railway, telephone line,
retains the ownership thereof during the term of the lease. apparatus, utensils and whatever forms part or is necessary complement
of said sugar-cane mill, steel railway, telephone line, now existing or that
Issue: may in the future exist is said lots.

Whether or not the pieces of gas station equipment and machinery Shortly after said mortgage had been constituted, the Mabalacat Sugar
enumerated are subject to realty tax. Co., Inc., decided to increase the capacity of its sugar central by buying
additional machinery and equipment, so that instead of milling 150 tons
daily, it could produce 250. The estimated cost of said additional
Held:
machinery and equipment was approximately P100,000. In order to carry
out this plan, A. Green, president of said corporation, proposed to the
The Assessment Law provides that the realty tax is due "on real property, plaintiff, B.H. Berkenkotter, to advance the necessary amount for the
including land, buildings, machinery, and other improvements". purchase of said machinery and equipment.
SC hold that the said equipment and machinery, as appurtenances to the The president of the Mabalacat Sugar Co., Inc., applied to Cu Unjieng e
gas station building or shed owned by Caltex (as to which it is subject to Hijos for an additional loan of P75,000 offering as security the additional
realty tax) and which fixtures are necessary to the operation of the gas machinery and equipment acquired by said B.A. Green and installed in
station, for without them the gas station would be useless, and which
Page 10 of 38
the sugar central after the execution of the original mortgage deed, on The CTA held the petitioner liable to the payment of the realty tax on
April 27, 1927, together with whatever additional equipment acquired its maintenance and repair equipment mentioned above. Hence, this
with said loan. B.A. Green failed to obtain said loan. petition.

Issues: ISSUE:

Whether or not, the lower court erred in declaring that the additional Should the tools and equipment in the petitioner company’s repair shop
machinery and equipment as improvement can be permanently attached be considered immovable taxable real properties?
to a mortgage of the sugar central.
HELD:
Held: NO. Movable equipment to be immobilized in contemplation of the law
must first be “essential and principal elements” of an industry or works
That the installation of a machinery and equipment in a mortgaged sugar without which such industry or works would be “unable to function or
central, in lieu of another of less capacity, for the purpose of carrying out
carry on the industrial purpose for which it was established.” The tools
the industrial functions of the latter and increasing production,
and equipment are not essential and principle municipal elements of
constitutes a permanent improvement on said sugar central and subjects
petitioner’s business of transporting passengers and cargoes by motor
said machinery and equipment to the mortgage constituted thereon.
trucks. They are merely incidentals — acquired as movables and used
only for expediency to facilitate and/or improve its service. The
MINDANAO BUS CO. vs. CITY ASSESSOR, Sept. 29, 1962 transportation business could be carried on without the repair or
service shop if its rolling equipment is repaired or serviced in another
FACTS: shop belonging to another.

Petitioner is a public utility solely engaged in transporting passengers


and cargoes by motor trucks. It owns a land where it maintains and SIBAL vs. VALDEZ, 50 Phil 512
operates a garage for its TPU motor trucks; a repair shop; blacksmith FACTS: The deputy sheriff of Tarlac attached and sold to Valdez the
and carpentry shops, and with machineries placed therein, its TPU sugarcane planted by the plaintiff. The plaintiff asked for the
trucks are made; body constructed; and same are repaired in a redemption of the sugarcane. Valdez said that it cannot be subject to
condition to be serviceable in the TPU land transportation business it redemption because it is a personal property.
operates.

The machineries have never been or were never used as industrial ISSUE: WON the sugarcane in question is a personal or real property.
equipment to produce finished products for sale, nor to repair
machineries, parts and the like offered to the general public HELD: Sugarcane is under real property as ungathered products. The
indiscriminately for business or commercial purposes. Supreme Court of Louisiana provided that standing crops are
considered as part of the land to which they are attached but the
Respondent City Assessor of Cagayan de Oro City assessed at P4,400 immovability provided for is only one in abstract. The existence of a
petitioner’s above-mentioned equipment. Petitioner appealed the right on the growing crop is mobilization by anticipation, a gathering as
assessment to the respondent Board of Tax Appeals on the ground that it were in advance, rendering the crop movable quoad the right
the same are not realty. The Board of Tax Appeals of the City sustained acquired therein.
the city assessor, so petitioner herein filed with the Court of Tax
Appeals a petition for the review of the assessment.

Page 11 of 38
-A crop raised on leased premises in no sense forms part of the can be cited which confers upon him any judicial or quasi-judicial power
immovable. It belongs to the lessee and may be sold by him. to determine the nature of any document of which registration is
sought as a chattel mortgage. The efficacy of the act of recording a
chattel mortgage consists in the fact that it operates as constructive
-Act 1508 (Chattel Mortgage Law) recognize growing crops as personal notice of the existence of the contract, and the legal effects of the
property. contract must be discovered in the instrument itself in relation with the
fact of notice. Registration adds nothing to the instrument, considered
as a source of title, and affects nobody’s rights except as a species of
– Crops whether growing or ready to be harvested, when produced by notice.
annual cultivation, is not part of realty.
The parties to a contract may by agreement treat as personal property
that which by nature would be real property and it is a familiar
– Paragraph 2 of Art. 334 of the Civil Code has been modified by Sec. phenomenon to see things classed as real property for purposes of
450 of Code of Civil Procedure and Act no. 1508 in the sense that for taxation which on general principle might be considered personal
purposes of attachment and execution and Chattel Mortgage Law, property.
ungathered products have the nature of personal property.
It is unnecessary to determine whether or not the property described in
the document is real or personal. The issue is to be determined by the
STANDARD OIL CO. vs. JARAMILLO, 44 Phil 630 Court and not by the register of deeds.
FACTS:
Gervasia dela Rosa executed a document in the form of a Chattel DAVAO SAWMILL vs. CASTILLO, 61 Phil 710
Mortgage purporting to convey to Standard Oil Co. by way of mortgage
both the leasehold interest of the land she leases in Manila and the Facts:
building which stands thereon.
The Davao Saw Mill Co., Inc., is the holder of a lumber concession from
The clauses in said document describe the property as personal the Government of the Philippine Islands. It has operated a sawmill in
including the right, title and interest of the mortgagor in and to the the sitio of Maa, barrio of Tigatu, municipality of Davao, Province of
contract of lease and also the building of the said premises therein. Davao. However, the land upon which the business was conducted
belonged to another person. On the land the sawmill company erected a
After said document had been duly acknowledge and delivered, the building which housed the machinery used by it.
petitioner presented it to Joaquin Jaramillo, as register of deeds of the
City of Manila, for the purpose of having the same recorded. The In another action, wherein the Davao Light & Power Co., Inc., was the
respondent opined that it was not a chattel mortgage for the interests plaintiff and the Davao, Saw, Mill Co., Inc., was the defendant, a
mortgaged did not appear to be personal property within the meaning judgment was rendered in favor of the plaintiff in that action against the
of the Chattel Mortgage Law and registration was refused on this defendant in that action; a writ of execution issued thereon, and the
ground only. properties now in question were levied upon as personalty by the sheriff.
No third party claim was filed for such properties at the time of the sales
ISSUE: thereof as is borne out by the record made by the plaintiff herein.
1. Whether or not said property could be a subject for mortgage.
2. Whether the respondent is clothe with authority to determine such. Issue:
.
RULING: Whether or not the machinery mounted on foundations of cement and
The duties of a register of deeds in respect to the registration of chattel installed by the lessee on a lease land be regarded as real property.
mortgages are of purely ministerial character and no provision of law
Page 12 of 38
to be not whether the subject is corporeal, but whether it is capable of
Held: appropriation by another than the owner.

The machinery which is movable in its nature only becomes immobilized The court ruled that electricity, the same as gas, is a valuable article of
when placed in a plant by the owner of the property or plant but not merchandise, bought and sold like other personal property and is capable
when so placed by a tenant, a usufructuary, or any person having only a of appropriation by another. It is also susceptible of being severed from
temporary right, unless such person acted as agent of the owner. a mass or larger quantity, and of being transported from place to place.
So no error was committed by the trial court in holding that electricity is
Immobilization by destination or purpose cannot generally be made by a a subject of larceny.
person whose possession of property is only TEPORARY, otherwise we
will be forced to presume that he intended to give the property US vs. TAMBUNTING, 41 Phil 634
permanently away in favor of the owner of the premises.
Facts:
Manuel Tambunting and his wife were occupants of the upper floor of a
US VS CARLOS house that had previously been installed by the Manila Gas Corporation
21 Phil 553 with apparatus for the delivery of gas.

Facts: It was found out that gas was being used, without the knowledge and
consent of the gas company, for cooking in the quarters occupied by the
Ignacio Carlos has been a consumer of electricity furnished by the Manila defendants.
Electric Railroad and Light Company for a building containing the
residence of the accused and 3 other residences. Representatives of the Issue:
company believing that more light is consumed than what is shown in whether gas can be the subject to larceny.
the meter installed an additional meter on the pole outside Carlos’ house (Larceny: The unauthorized taking and removal of the Personal Property
to compare the actual consumption and found out that the latter used a of another by an individual who intends to permanently deprive the
jumper. Further, a jumper was found in a drawer of a small cabinet in owner of it.)
the room of the defendant’s house were the meter was installed. In the
absence of any explanation for Carlos’ possession of said device, the Held: Yes.
presumption raised was that Carlos was the owner of the device whose There is nothing in the nature of gas used for illuminating purposes which
only use was to deflect the current from the meter. Thus he was charged renders it incapable of being feloniously taken and carried away. It is a
with the crime of theft amounting to 2,273KW of electric power worth valuable article of merchandise, bought and sold like other personal
909.20 pesos. property, susceptible of being severed from a mass or larger quantity
and of being transported from place to place. Likewise water which is
Issue: confined in pipes and electricity which is conveyed by wires are subjects
of larceny. (Quoted from "Larceny," at page 34, Vol. 17, of Ruling Case
Whether or not the court erred in declaring that the electrical energy may Law).
be stolen.

Held: BACHRACH MOTORS CO. vs. LEDESMA, AUG. 31, 1937

It is true that electricity is no longer, as formerly, regarded by electricians FACTS:


as a fluid, but its manifestation and effects, like those of gas, may be  June 30, 1927: CFI favored Bachrach Motor Co., Inc (Bachrach)
seen and felt. The true test of what is a proper subject of larceny seems against Mariano Lacson Ledesma

Page 13 of 38
 Ledesma mortgaged to the Philippine National Bank (PNB) Talisay- them as nearly as possible on the plane of commercial paper, they
Silay Milling Co., Inc shares are often spoken of and treated as quasi negotiable, that is as
 September 29, 1928: PNB brought an action against Ledesma and having some of the attributes and partaking of the character of
his wife Concepcion Diaz for the recovery of a mortgage credit negotiable instruments, in passing from hand to hand, especially
 January 2, 1929: PNB amended its complaint by including the where they are accompanied by an assignment and power of
Bachrach Motor Co., Inc., as party defendant because they claim to attorney, executed in blank, to transfer them to anyone who may
have rights to some of the subject matters of this complaint obtain possession as holders, even though such assignment and
 January 30, 1929: Bachrach field a gen. denial power are under seal.
 CFI: favored PNB
 December 20, 1929: Bachrach brought an action in the CFI against
the Talisay-Silay Milling Co., Inc., to recover P13,850 against the BACHRACH vs. SEIFERT, AUG. 31, 1937
bonus or dividend w/c, by virtue of the resolution of December 22,
1923, Central Talisay-Silay Milling Co., Inc., had declared in favor of In testate proceedings, civil case No. 51955 of the Court of First
Ledesma as one of the owners of the hacienda which had been Instance of Manila, the will of E. M. Bachrach, who died on September
mortgaged to the PNB to secure the obligation of the Talisay-Silay 28, 1937, provided for the distribution of the considerable property
Milling Co., Inc. in favor of said bank which he had left. The provisions of the will which are important in this
 CFI: favored Bachrach case are contained in the sixth and eighth paragraphs which read as
follows:
ISSUE: W/N shares of stock are personal property and therefore can
be subject to pledge or chattel mortgage Sixth: It is my will and do herewith bequeath and devise to my
beloved wife Mary McDonald Bachrach for life all the fruits and
usufruct of the remainder of all my estate after payment of the
HELD: YES. AFIRMED legacies, bequests and gifts provided for above; and she may
 section 4 of the Chattel Mortgage Law, in so far as it provides that a enjoy such usufruct and use or spend such fruits as she may in
chattel mortgage shall not be valid against any person except the any manner wish.
mortgagor, his executors or administrators, unless the possession
of the property is delivered to and retained by the mortgagee or
Eighth: It is my wish that upon the death of my beloved wife,
unless the mortgage is recorded in the office of the register of
Mary McDonald Bachrach, all my estate, personal, real and
deeds of the province in which the mortgagor resides.
otherwise, and all the fruits and usufruct thereof which during
 pledge of the 6,300 stock dividends is valid against
her life pertained to her, shall be divided as follows:
the Bachrach because the certificate was delivered to the creditor
bank, notwithstanding the fact that the contract does not appear in
a public instrument One-half thereof shall be given to such charitable hospitals in
 Certificates of stock or of stock dividends, under the Corporation the Philippines as she may designate; in case she fails to
Law, are quasi negotiable instruments in the sense that they may designate, then said sum shall be given to the Chief Executive of
be given in pledge or mortgage to secure an obligation these Islands who shall distribute it, share and share alike to all
 certificates of stock, while not negotiable in the sense of the law charitable hospitals in the Philippines excluding those belonging
merchant, like bills and notes, are so framed and dealt with as to be to the governments of the Philippines or of the United States;
transferable, when property endorsed, by mere delivery, and as
they frequently convey, by estoppel against the corporation or One-half thereof shall be divided, share and share alike by and
against prior holders, as good a title to the transferee as if they between my legal heirs, to the exclusion of my brothers.
were negotiable, and inasmuch as a large commercial use is made
of such certificates as collateral security, and it is to the public The widow Mary McDonald Bachrach as administratrix and executrix
interest that such use should be simplify and facilitated by placing had been administering the property left by her deceased husband and
Page 14 of 38
enjoying the usufruct thereof. The other heirs Sophie M. Seifert, Ginda petition on February 19, 1947, recommending the liquidation of the
M. Skundina, Elisa Elianoff and Annie Bachrach Levine on September assets of the estate of her deceased husband destined for charity
14, 1940, filed a petition, agreed to by usufructuary Mary McDonald because due to the havoc and miseries brought about by the last war,
Bachrach, and the Solicitor General representing the Government of the the charitable institutions to be benefited badly needed the property
Philippines, asking that the administratrix "be authorized to pay your bequeathed to them under the will.
petitioners from and after July 1, 1940, and until they receive their
share of the estate left by the deceased E.M. Bachrach upon the death In another petition by the same administratrix Mary McDonald filed on
of his widow, a monthly allowance of P500, P250, P250, and P250, February 18, 1947, she alleged that under the order of the court of
respectively, and the additional sum of P3,000 to the heir Sophie M. October 2, 1940, she had already paid to the heirs P40,250; that
Seifert, who is in poor health, the said allowances to be deducted from besides that amount the heirs were demanding the amount of P32,500
your petitioners' share of the estate of the deceased E.M. Bachrach representing the allowances that had accrued during the Japanese
upon the death of the widow." Acting upon the said petition, the Court occupation while the estate was financially and economically prostrate;
of First Instance of Manila issued an order dated October 2, 1940 that the allowances paid to said heirs were taken from the fruits and
granting the petition in the following words: income of the estate which belong exclusively to her as a usufructuary,
that is to say, that the allowances paid to the heirs were advances from
Petition granted; and the administratrix and usufructuary Mary her personal funds; and that unless the heirs gave sufficient security
McDonald Bachrach is hereby authorized and instructed for the protection of the administratrix, the ½ of the property
forthwith to pay to the said Sophie M. Seifert, Ginda M. corresponding to the heirs which consists mainly of shares of stock,
Skundina, Elisa Elianoff and Annie Bachrach Levine a monthly when sold later, may not be sufficient to reimburse her estate after her
allowance of Five Hundred (P500) Pesos; Two Hundred Fifty death for the allowances made or given to the heirs from her personal
(P250) Pesos; Two Hundred Fifty (P250) Pesos, and Two funds. On the basis of said allegations, the administratrix prayed the
Hundred Fifty (P250) Pesos, respectively, beginning July 1, court that she be relieved from the obligation to pay the heirs the
1940, and until the said heirs receive their share of the estate monthly allowances ordered by the court in its order of October 2,
left by the deceased E. M. Bachrach upon the death of his 1940, and in the alternative, in the event that the court ordered her to
widow, and the additional sum of Three Thousand (P3,000) continue the payments of said allowances, that she be authorized to
Pesos to the heir Sophie M. Seifert. sell as much of the assets of the ½ destined for the instituted heirs as
may be necessary to enable her to continue the payment of said
From July 1, 1940 to December 31, 1941, the administratrix made the allowances.
payments as ordered, having paid the total amount of P40,250.
Payments during the Japanese occupation which would have amounted Evidently, acting upon these two petitioners, the lower court issued its
to P32,500, was suspended. Then payments were resumed from order dated February 27, 1947, expressing its opinion that pending the
August, 1945 to January, 1947. Thereafter, the executrix declined to determination of the proceedings, it would be advisable to sell the
make further payments. The heirs petitioned the lower court for a writ property destined for charities but also the one-half adjudicated to the
of execution, ordering the administratrix to pay the allowances for instituted heirs, the proceeds thereof, to be distributed accordingly later
February, 1947 and those in arrears for the period comprising from on. Acting upon a motion for reconsideration filed on behalf of the
January 1, 1942 to July 31, 1945. This petition was denied and the heirs, the lower court denied said motion, justifying its order sought to
heirs filed a petition for mandamus in the Supreme Court under G. R. be reconsidered with the allegation that the case had been pending for
No. L-1379. 1 The petition for mandamus was granted by this Court several years: that the sale of said properties included in the testate
and the lower court was ordered to proceed in the execution of its order proceedings and distribution of the proceeds of the sale to the
of October 2, 1940 and to issue the proper writ. beneficiaries was one way of winding up said proceedings and the
beneficiaries would be benefited in that they would receive their shares
In the meantime, the administratrix Mary McDonald Bachrach, filed in earlier. The heirs appealed from that order of February 27, 1947, and
the same case No. 51955 in the Court of First Instance of Manila a
Page 15 of 38
the order denying their motion for reconsideration. That appeal under administratrix, corresponding to the heirs is exhausted because of the
G.R. No. L-1592 of this Court, is now the case under consideration. payment of the allowances made to the heirs, some other
arrangements might be necessary. The administratrix would then have
Our first impression was that the appellants had no valid reason for a right and reason to refuse the payment of said allowances from her
objecting to the sale of the ½ of the estate adjudicated to them said personal funds or from the fruits of the estate, which as a
because in that way they would receive their shares earlier; usufructuary, belong to her during her lifetime. But, until that point is
furthermore, that the administratrix was warranted in asking for the reached, we see no valid reason for ordering the sale of the ½ of the
sale of said ½ of the property adjudicated to the heirs or as much estate belonging to the heirs over their objection.
thereof as was sufficient to reimburse for the allowances being paid by
her to the heirs from her personal funds or from the fruit of the said ½ In view of the foregoing, the order appealed from, insofar as it directs
which, as a usufructuary, be longed to her. Upon a closer scrutiny of the sale of the one-half share of the estate destined and adjudicated to
the record however, not only of this case (G. R. No. L-1592) but also of the instituted heirs, is hereby reversed. With costs.
G. R. No. L-1379 of which we take judicial notice, for which reason,
said last case was cited and referred to for purposes of background so
as to give a clear understanding of the facts in this case, we find that BARLIN vs. RAMIREZ, 7 Phil 41
the allowance being paid to the heirs are really not paid from the FACTS: The def., Ramirez, having been appointed by the pltff parish
personal funds of the administratrix but from the cash corresponding to priest, took possession of the church on 7/5/01. He administered if as
the ½ of the estate adjudicated to the heirs, which cash, is deposited in such under the orders of his superiors until 11/14/02. His successor
the bank. According to the decision of the Supreme Court in having been then appointed, the latter made a demand on this def. for
the mandamus case (G. R. No. L-1379) promulgated on December 19, the delivery to him of the church, convent, and cemetery, and the
1947, the administratrix had in her possession the sum of P351,116.91 sacred ornaments, books, jewels, money, and other prop. of the
which has already been adjudicated to and belongs, although pro church. The def., by a written document of that date, refused to make
indiviso, to the heirs of the deceased E. M. Bachrach and that such delivery, stating that "the town of Lagonoy, in conjunction w/ the
furthermore, the monthly allowances being paid to the heirs or due parish priest of thereof, has seen fit to sever connection w/ the Pope at
them should be paid from this sum and not from the personal funds of Rome and his representatives in these Islands, and to join the Filipino
the administratrix Mary McDonald Bachrach. Furthermore, the very Church, the head of w/c is at Mla.
order of the lower court of October 2, 1940, authorizing the
administratrix to pay to the heirs the monthly allowances already In 1/4, the pltff. brought this action against def., alleging in his
mentioned, stipulated in its fourth paragraph that said allowances amended complaint that the Roman Catholic Church was the owner of
should be taken from the properties to be turned over to the heirs of the church bldg, the convent, cemetery, the books, money, and other
the deceased E. M. Bachrach and shall be deducted from the share of prop. belonging thereto, and asking that it be restored to the
said heirs upon the death of the widow.. possession thereof and that the def. render an account of the prop. w/c
he had received and w/c was retained by him, and for other relief. The
In the opinion of this Court, the cash in the possession of the CFI-Ambos Camarines ruled in favor of the pltff.
administratrix corresponding to the ½ of the estate adjudicated to the
heirs is sufficient for the monthly allowances being paid to the heirs and HELD: It is suggested by the appellant that the Roman Catholic Church
that there is no necessity for the sale of the ½ of the estate has no legal personality in the Philippine Islands. This suggestion, made
corresponding to them. The main objection to the heirs to the sale of ½ with reference to an institution w/c antedates by almost a thousand
of the estate adjudicated to them, which ½ besides the cash already years any other personality in Europe, and w/c existed "when Grecian
mentioned, consist mostly of shares of stock, is that said shares if sold eloquence still flourished in Antioch, and when idols were still
now may not command a good price and that furthermore said heirs worshipped in the temple of Mecca," does not require serious
prefer to keep said shares intact as long as there is no real necessity consideration.
for their sale. Of course, once said cash in the hands of the

Page 16 of 38
other chattel mortgages as to its requisites and validity.
PHILIPPINE REFINING CO. vs. JARQUE, 61 Phil 229
Facts: A good chattel mortgage according to Section 5 of The Chattell
Mortgage Law, includes the requirement of an affidavit of good faith
Philippine Refining Co., Inc., and Francisco Jarque executed three appended to the mortgage and recorded therewith. The absence of the
chattel mortgages on the motor vessels Pandan and Zaragoza, which affidavit vitiates a mortgage as against creditors and subsequent
were recorded in the record of transfers and incumbrances of vessels encumbrancers. As a consequence a chattel mortgage of a vessel
for the port of Cebu. The mortgages had no appended affidavit of good wherein the affidavit of good faith required by the Chattel Mortgage
faith except for the 3rd mortgage, which was not registered in the Law is lacking, is unenforceable against third persons.
customs house within the period of 30 days prior to the start of the
insolvency proceedings against Francisco Jarque.
PRUDENTIAL BANK vs. PANIS, 153 SCRA 390
A fourth mortgage was executed by Francisco Jarque and Ramon Facts:
Aboitiz on the motorship Zaragoza and was entered in the chattel
mortgage registry of the register of deeds. The spouses Magcale obtained a Php 70, 000 loan from Prudential Bank
secured by a Deed of Real Estate Mortgage over a 2-storey, semi-
Francisco Jarque was then declared to be an insolvent debtor that concrete residential building including the right of occupancy on the
resulted to an assignment of all his properties in favor of Jose land.
Corominas.
When the spouses Magcale executed this mortgage, the land still
Judge Jose M. Hontiveros declined the foreclosure of the mortgages and belonged to the government as the Sales Patent over the lot applied for
sustained the special defenses of fatal defectiveness of the mortgages. by the spouses Magcale was not yet issued.

Issue: Issue:

Whether or not the mortgages are defective. Whether or not a real estate mortgage over a building erected on the
land belonging to another is valid.
Held:
Held:
Vessels are considered personal property under the civil law. (Code of
Commerce, article 585.) Similarly under the common law, vessels are Yes, a real estate mortgage over a building erected on the land
personal property although occasionally referred to as a peculiar kind of belonging to another is valid.
personal property.
Article 415 of the Civil Code provides the inclusion of "building"
Since the term "personal property" includes vessels, they are subject to separate and distinct from the land, which can only mean that a
mortgage agreeably to the provisions of the Chattel Mortgage Law. (Act building is by itself an immovable property.
No. 1508, section 2.)
A mortgage of land necessarily includes buildings unless otherwise
The only difference between a chattel mortgage of a vessel and a stipulated. A building by itself, however, may be mortgaged apart from
chattel mortgage of other personalty is that it is not now necessary for the land on which it has been built. Such a mortgage would still be a
a chattel mortgage of a vessel to be noted n the registry of the register real estate mortgage for the building alone would still be considered an
of deeds, but it is essential that a record of documents affecting the immovable property.
title to a vessel be entered in the record of the Collector of Customs at
the port of entry. Otherwise a mortgage on a vessel is generally like
Page 17 of 38
BENGUET CORP. vs. CBAA, 218 SCRA 271 Civil Code and thus makes it taxable under Section 38 of the Real
Doctrine: an "improvement" on a property is permanent in character Property Tax Code.
and enhances both the value and utility of said property. Its immovable
nature efines its character as real property.
SERG’s PRODUCTS vs. PCI LEASING, 338 SCRA 499
Facts: FACTS: PCI Leasing and Finance, Inc. (PCI) filed a complaint for a sum
In 1985, the Provincial Assessor of Zambales assessed the petitioner's of money with an application of writ of replevin. The judge issued a
tailings dam as taxable improvements. writ of replevin directing its sheriff to seize and deliver the machinery
and equipment to PCI.
Petitioner contended that the the dam cannot be subjected to realty tax
as a separate and independent property because it does not constitute Serg filed a motion for special protective order praying for a directive
an "assessable improvement" on the mine because it is an integral part for the sheriff to defer the enforcement of the writ of replevin
of the mine. contending that the machines were not proper subjects of the writ
because they are in fact real property defined in Article 415 of the Civil
To supporty its contention, petitioner cited the following cases: Code.
(1) Municipality of Cotabato v. Santos
dikes and gates constructed in connection with a fishpond operation as ART. 415. The following are immovable property:
integral parts of the fishpond.
(2) Bislig Bay Lumber Co. v. Provincial xxx
Government of Surigao the realty tax was not imposed on a road
constructed by the timber concessionaire because the government had (5) Machinery, receptacles, instruments or implements intended by the
the right to use the road to promote its varied activities. owner of the tenement for an industry or works which may be carried
(3) Kendrick v. Twin Lakes Reservoir Co. (American Case) on in a building or on a piece of land, and which tend directly to meet
A reservoir dam went with and formed part of the reservoir the needs of the said industry or works;
(4) Ontario Silver Mining Co. v. Hixon (Canada)
Involved drain tunnels constructed when mining operations were xxx
expanded... it was held that "whatever value they have is connected
with and in fact is an integral part of the mine itself." PCI opposed the motion on the ground that Section 12.1 of their Lease
Agreement clearly provided that the machines were to be considered as
On the other hand, Solicitor General's argues that the dam is an personal property.
assessable improvement because it enhances the value and utility of
the mine. 2.1 The PROPERTY is, and shall at all times be and remain, personal
property notwithstanding that the PROPERTY or any part thereof may
Issue: Whether or not the tailings dam in question is an now be, or hereafter become, in any manner affixed or attached to or
"improvement" upon the land within the meaning of the Real Property embedded in, or permanently resting upon, real property or any
Tax Code. building thereon, or attached in any manner to what is permanent.

Held: Issue:
Yes.
The court ruled that the subject dam falls within the definition of an Whether the machinery are considered a real or personal property.
"improvement" because it is permanent in character and it enhances
both the value and utility of petitioner's mine. The immovable nature of Held:
the dam defines its character as real property under Article 415 of the
The machinery are considered personal property.
Page 18 of 38
organizations, shall be encouraged to broaden the base of their
The Court has held that contracting parties may validly stipulate that a ownership.
real property be considered as personal. After agreeing to such
stipulation, they are consequently estopped from claiming otherwise. Section 2. All lands of the public domain, waters, minerals, coal,
Under the principle of estoppel, a party to a contract is ordinarily petroleum, and other mineral oils, all forces of potential energy, fisheries,
precluded from denying the truth of any material fact found therein. forests or timber, wildlife, flora and fauna, and other natural resources
are owned by the State. With the exception of agricultural lands, all other
Hence, Serg is estopped from denying the characterization of the natural resources shall not be alienated. The exploration, development,
machinery as personal property, which are proper subjects of Writ of and utilization of natural resources shall be under the full control and
Seizure. supervision of the State. The State may directly undertake such
activities, or it may enter into co-production, joint venture, or
C. Property in Relation to the Person whom it Belongs (Art. 419) production-sharing agreements with Filipino citizens, or corporations or
associations at least sixty per centum of whose capital is owned by such
1. Public Dominion (Art. 420, 421,422, 423 and 424); citizens. Such agreements may be for a period not exceeding twenty-five
years, renewable for not more than twenty-five years, and under such
 Kinds (Reviewer) terms and conditions as may be provided by law. In cases of water rights
for irrigation, water supply fisheries, or industrial uses other than the
 Characteristics (Reviewer) development of water power, beneficial use may be the measure and
limit of the grant.
 Public Land (Reviewer)
The State shall protect the nation’s marine wealth in its archipelagic
 Patrimonial Property of the State (Reviewer) waters, territorial sea, and exclusive economic zone, and reserve its use
and enjoyment exclusively to Filipino citizens.
 Art. XII of the 1987 Constitution;
The Congress may, by law, allow small-scale utilization of natural
NATIONAL ECONOMY AND PATRIMONY resources by Filipino citizens, as well as cooperative fish farming, with
priority to subsistence fishermen and fishworkers in rivers, lakes, bays,
Section 1. The goals of the national economy are a more equitable and lagoons.
distribution of opportunities, income, and wealth; a sustained increase in
the amount of goods and services produced by the nation for the benefit The President may enter into agreements with foreign-owned
of the people; and an expanding productivity as the key to raising the corporations involving either technical or financial assistance for large-
quality of life for all, especially the underprivileged. scale exploration, development, and utilization of minerals, petroleum,
and other mineral oils according to the general terms and conditions
The State shall promote industrialization and full employment based on provided by law, based on real contributions to the economic growth and
sound agricultural development and agrarian reform, through industries general welfare of the country. In such agreements, the State shall
that make full and efficient use of human and natural resources, and promote the development and use of local scientific and technical
which are competitive in both domestic and foreign markets. However, resources.
the State shall protect Filipino enterprises against unfair foreign
competition and trade practices. The President shall notify the Congress of every contract entered into in
accordance with this provision, within thirty days from its execution.
In the pursuit of these goals, all sectors of the economy and all regions
of the country shall be given optimum opportunity to develop. Private Section 3. Lands of the public domain are classified into agricultural,
enterprises, including corporations, cooperatives, and similar collective forest or timber, mineral lands and national parks. Agricultural lands of
Page 19 of 38
the public domain may be further classified by law according to the uses Section 8. Notwithstanding the provisions of Section 7 of this Article, a
to which they may be devoted. Alienable lands of the public domain shall natural-born citizen of the Philippines who has lost his Philippine
be limited to agricultural lands. Private corporations or associations may citizenship may be a transferee of private lands, subject to limitations
not hold such alienable lands of the public domain except by lease, for a provided by law.
period not exceeding twenty-five years, renewable for not more than
twenty-five years, and not to exceed one thousand hectares in area. Section 9. The Congress may establish an independent economic and
Citizens of the Philippines may lease not more than five hundred planning agency headed by the President, which shall, after consultations
hectares, or acquire not more than twelve hectares thereof, by purchase, with the appropriate public agencies, various private sectors, and local
homestead, or grant. government units, recommend to Congress, and implement continuing
integrated and coordinated programs and policies for national
Taking into account the requirements of conservation, ecology, and development.
development, and subject to the requirements of agrarian reform, the
Congress shall determine, by law, the size of lands of the public domain Until the Congress provides otherwise, the National Economic and
which may be acquired, developed, held, or leased and the conditions Development Authority shall function as the independent planning
therefor. agency of the government.

Section 4. The Congress shall, as soon as possible, determine, by law, Section 10. The Congress shall, upon recommendation of the economic
the specific limits of forest lands and national parks, marking clearly their and planning agency, when the national interest dictates, reserve to
boundaries on the ground. Thereafter, such forest lands and national citizens of the Philippines or to corporations or associations at least
parks shall be conserved and may not be increased nor diminished, sixty per centum of whose capital is owned by such citizens, or such
except by law. The Congress shall provide for such period as it may higher percentage as Congress may prescribe, certain areas of
determine, measures to prohibit logging in endangered forests and investments. The Congress shall enact measures that will encourage the
watershed areas. formation and operation of enterprises whose capital is wholly owned by
Filipinos.
Section 5. The State, subject to the provisions of this Constitution and
national development policies and programs, shall protect the rights of In the grant of rights, privileges, and concessions covering the national
indigenous cultural communities to their ancestral lands to ensure their economy and patrimony, the State shall give preference to qualified
economic, social, and cultural well-being. Filipinos.

The Congress may provide for the applicability of customary laws The State shall regulate and exercise authority over foreign investments
governing property rights or relations in determining the ownership and within its national jurisdiction and in accordance with its national goals
extent of ancestral domain. and priorities.

Section 6. The use of property bears a social function, and all economic Section 11. No franchise, certificate, or any other form of authorization
agents shall contribute to the common good. Individuals and private for the operation of a public utility shall be granted except to citizens of
groups, including corporations, cooperatives, and similar collective the Philippines or to corporations or associations organized under the
organizations, shall have the right to own, establish, and operate laws of the Philippines, at least sixty per centum of whose capital is
economic enterprises, subject to the duty of the State to promote owned by such citizens; nor shall such franchise, certificate, or
distributive justice and to intervene when the common good so demands. authorization be exclusive in character or for a longer period than fifty
years. Neither shall any such franchise or right be granted except under
Section 7. Save in cases of hereditary succession, no private lands shall the condition that it shall be subject to amendment, alteration, or repeal
be transferred or conveyed except to individuals, corporations, or by the Congress when the common good so requires. The State shall
associations qualified to acquire or hold lands of the public domain. encourage equity participation in public utilities by the general public.
Page 20 of 38
The participation of foreign investors in the governing body of any public Section 19. The State shall regulate or prohibit monopolies when the
utility enterprise shall be limited to their proportionate share in its public interest so requires. No combinations in restraint of trade or unfair
capital, and all the executive and managing officers of such corporation competition shall be allowed.
or association must be citizens of the Philippines.
Section 20. The Congress shall establish an independent central
Section 12. The State shall promote the preferential use of Filipino labor, monetary authority, the members of whose governing board must be
domestic materials and locally produced goods, and adopt measures that natural-born Filipino citizens, of known probity, integrity, and patriotism,
help make them competitive. the majority of whom shall come from the private sector. They shall also
be subject to such other qualifications and disabilities as may be
Section 13. The State shall pursue a trade policy that serves the general prescribed by law. The authority shall provide policy direction in the areas
welfare and utilizes all forms and arrangements of exchange on the basis of money, banking, and credit. It shall have supervision over the
of equality and reciprocity. operations of banks and exercise such regulatory powers as may be
provided by law over the operations of finance companies and other
Section 14. The sustained development of a reservoir of national talents institutions performing similar functions.
consisting of Filipino scientists, entrepreneurs, professionals, managers,
high-level technical manpower and skilled workers and craftsmen in all Until the Congress otherwise provides, the Central Bank of the Philippines
fields shall be promoted by the State. The State shall encourage operating under existing laws, shall function as the central monetary
appropriate technology and regulate its transfer for the national benefit. authority.

The practice of all professions in the Philippines shall be limited to Filipino Section 21. Foreign loans may only be incurred in accordance with law
citizens, save in cases prescribed by law. and the regulation of the monetary authority. Information on foreign
loans obtained or guaranteed by the Government shall be made available
Section 15. The Congress shall create an agency to promote the viability to the public.
and growth of cooperatives as instruments for social justice and
economic development. Section 22. Acts which circumvent or negate any of the provisions of this
Article shall be considered inimical to the national interest and subject to
Section 16. The Congress shall not, except by general law, provide for criminal and civil sanctions, as may be provided by law.
the formation, organization, or regulation of private corporations.
Government-owned or controlled corporations may be created or  Property of LGUs (Sections; 17, 18 , 22 , 27 & 89 of LGC)
established by special charters in the interest of the common good and
subject to the test of economic viability. SECTION 17: Basic Services and Facilities. - (a) Local government units
shall endeavor to be self-reliant and shall continue exercising the
Section 17. In times of national emergency, when the public interest so powers and discharging the duties and functions currently vested upon
requires, the State may, during the emergency and under reasonable them. They shall also discharge the functions and responsibilities of
terms prescribed by it, temporarily take over or direct the operation of national agencies and offices devolved to them pursuant to this Code.
any privately-owned public utility or business affected with public Local government units shall likewise exercise such other powers and
interest. discharge such other functions and responsibilities as are necessary,
appropriate, or incidental to efficient and effective provision of the basic
Section 18. The State may, in the interest of national welfare or defense, services and facilities enumerated herein.
establish and operate vital industries and, upon payment of just
compensation, transfer to public ownership utilities and other private
(b) Such basic services and facilities include, but are not limited to,
enterprises to be operated by the Government.
the following:chanrobles virtual law library
Page 21 of 38
(1)For a Barangay:chanroblesvirtuallawlibrary not exceeding fifty (50) square kilometers; establishment of tree parks,
greenbelts, and similar forest development projects;

(i) Agricultural support services which include planting materials


(iii) Subject to the provisions of Title Five, Book I of this Code, health
distribution system and operation of farm produce collection and
services which include the implementation of programs and projects
buying
on primary health care, maternal and child care, and communicable
stations;
and non-communicable disease control services; access to secondary
and tertiary health services; purchase of medicines, medical supplies,
(ii) Health and social welfare services which include maintenance of
and equipment needed to carry out the services herein enumerated;
barangay health center and day-care center;

(iii) Services and facilities related to general hygiene and sanitation, (iv) Social welfare services which include programs and projects on
beautification, and solid waste collection; child and youth welfare, family and community welfare, women's
welfare, welfare of the elderly and disabled persons; community-based
(iv) Maintenance of katarungang pambarangay; rehabilitation programs for vagrants, beggars, street children,
scavengers, juvenile delinquents, and victims of drug abuse; livelihood
(v) Maintenance of barangay roads and bridges and water supply
and other pro-poor
systems
projects; nutrition services; and family planning services;
(vi) Infrastructure facilities such as multi- purpose hall, multipurpose
pavement, plaza, sports center, and other similar facilities; (v) Information services which include investments and job placement
information systems, tax and marketing information systems, and
(vii) Information and reading center; and maintenance of a public library;

(viii) Satellite or public market, where viable; (vi) Solid waste disposal system or environmental management system
and services or facilities related to general hygiene and sanitation;
(2) For a municipality:chanroblesvirtuallawlibrary

(i) Extension and on-site research services and facilities related to (vii) Municipal buildings, cultural centers, public parks including
agriculture and fishery activities which include dispersal of livestock freedom parks, playgrounds, and sports facilities and equipment, and
and poultry, fingerlings, and other seeding materials for aquaculture; other similar
palay, corn, and vegetable seed farms; medicinal plant gardens; fruit facilities;
tree, coconut, and other kinds of seedling nurseries; demonstration (viii) Infrastructure facilities intended primarily to service the needs of
farms; quality control of copra and improvement and development of the residents of the municipality and which are funded out of municipal
local distribution channels, preferably through cooperatives; funds including, but not limited to, municipal roads and bridges; school
interbarangay irrigation system; water and soil resource utilization and buildings and other facilities for public elementary and secondary
conservation projects; and enforcement of fishery laws in municipal schools; clinics, health centers and other health facilities necessary to
waters including the conservation of mangroves; carry out health services; communal irrigation, small water impounding
projects and other similar projects; fish ports; artesian wells, spring
(ii) Pursuant to national policies and subject to supervision, control and development, rainwater collectors and water supply systems; seawalls,
review of the DENR, implementation of community-based forestry dikes, drainage and sewerage, and flood control; traffic signals and
projects which include integrated social forestry programs and similar road signs; and similar facilities;
projects; management and control of communal forests with an area

Page 22 of 38
(ix) Public markets, slaughterhouses and other municipal enterprises; residents of the province and which are funded out of provincial funds
including, but not limited to, provincial roads and bridges; inter-
(x) Public cemetery; municipal waterworks, drainage and sewerage, flood control, and
irrigation systems; reclamation projects; and similar facilities;
(xi) Tourism facilities and other tourist attractions, including the
acquisition of equipment, regulation and supervision of business (viii) Programs and projects for low-cost housing and other mass
concessions, and security services for such facilities; and dwellings, except those funded by the Social Security System (SSS),
Government Service Insurance System (GSIS), and the Home
(xii) Sites for police and fire stations and substations and the municipal Development Mutual Fund (HDMF): Provided, That national funds for
jail; these programs and projects shall be equitably allocated among the
regions in proportion to the ratio of the homeless to the population;
(3) For a Province:chanroblesvirtuallawlibrary

(i) Agricultural extension and on-site research services and facilities (ix) Investment support services, including access to credit financing;
which include the prevention and control of plant and animal pests
and diseases; dairy farms, livestock markets, animal breeding stations, (x) Upgrading and modernization of tax information and collection
and artificial insemination centers; and assistance in the organization services through the use of computer hardware and software and other
of farmers' and fishermen's cooperatives and other collective means;
organizations, as well as the transfer of appropriate technology;
(xi) Inter-municipal telecommunications services, subject to national
(ii) Industrial research and development services, as well as the policy guidelines; and
transfer of appropriate technology;
(xii) Tourism development and promotion programs;
(iii) Pursuant to national policies and subject to supervision, control and
(4) For a City:chanroblesvirtuallawlibrary
review of the DENR, enforcement of forestry laws limited to
community-based forestry projects, pollution control law, small-scale All the services and facilities of the municipality and province, and in
mining law, and other addition thereto, the following:chanrobles virtual law library
laws on the protection of the environment; and mini-hydro electric
(i) Adequate communication and transportation facilities;
projects for local purposes;

(ii) Support for education, police and fire services and facilities.
(iv) Subject to the provisions of Title Five, Book I of this Code, health
services which include hospitals and other tertiary health services; (c) Notwithstanding the provisions of subsection (b) hereof, public
works and infrastructure projects and other facilities funded by the
(v) Social welfare services which include pro grams and projects on national government under the annual General Appropriations Act,
rebel returnees and evacuees; relief operations; and, population other special laws, pertinent executive orders, and those wholly or
development services; partially funded from foreign sources, are not covered under this
Section, except in those cases where the local government unit
(vi) Provincial buildings, provincial jails, freedom parks and other public concerned is duly designated as the implementing agency for such
assembly areas, and other similar facilities; projects, facilities, programs, and services.

(vii) Infrastructure facilities intended to service the needs of the (d) The designs, plans, specifications, testing of materials, and the
Page 23 of 38
procurement of equipment and materials from both foreign and local necessary for monitoring purposes and providing technical assistance to
sources local government units. The properties, equipment, and other assets of
necessary for the provision of the foregoing services and facilities shall these regional offices shall be distributed to the local government units
be undertaken by the local government unit concerned, based on in the region in accordance with the rules and regulations issued by
national the oversight committee created under this Code.
policies, standards and guidelines.
(i) The devolution contemplated in this Code shall include the transfer
(e) National agencies or offices concerned shall devolve to local to local government units of the records, equipment, and other assets
government units the responsibility for the provision of basic services and personnel of national agencies and offices corresponding to the
and facilities enumerated in this Section within six (6) months after the devolved powers, functions, and responsibilities.
effectivity of this Code.
Personnel of said national agencies or offices shall be absorbed by the
As used in this Code, the term "devolution" refers to the act by which local government units to which they belong or in whose areas they are
the national government confers power and authority upon the various assigned to the extent that it is administratively viable as determined
local government units to perform specific functions and by the said oversight committee: Provided, That the rights accorded to
responsibilities. such personnel pursuant to civil service law, rules and regulations shall
not be impaired: Provided, Further, That regional directors who are
(f) The national government or the next higher level of local career executive service officers and other officers of similar rank in the
government unit may provide or augment the basic services and said regional offices who cannot be absorbed by the local government
facilities assigned to a lower level of local government unit when such unit shall be retained by the national government, without any
services or facilities are not made available or, if made available, are diminution of rank, salary or tenure.
inadequate to meet the
requirements of its inhabitants. (j) To ensure the active participation of the private sector in local
governance, local government units may, by ordinance, sell, lease,
(g) The basic services and facilities hereinabove enumerated shall be encumber, or otherwise dispose of public economic enterprises owned
funded from the share of local government units in the proceeds of by them in their proprietary capacity.
national
Costs may also be charged for the delivery of basic services or facilities
taxes and other local revenues and funding support from the national
enumerated in this Section.
government, its instrumentalities and government-owned or -controlled
corporations which are tasked by law to establish and maintain
such services or facilities. Any fund or resource available for the use of SEC. 18. Power to Generate and Apply Resources. - Local government
local government units shall be first allocated for the provision of basic units shall have the power and authority to establish an organization
services or facilities enumerated in subsection (b) hereof before that shall be responsible for the efficient and effective implementation
applying the same for other purposes, unless otherwise provided in this of their development plans, program objectives and priorities; to create
Code. their own sources of revenue and to levy taxes, fees, and charges
which shall accrue exclusively for their use and disposition and which
(h) The Regional offices of national agencies or offices whose functions shall be retained by them; to have a just share in national taxes which
are devolved to local government units as provided herein shall be shall be automatically and directly released to them without need of
phased out within one (1) year from the approval of this Code. Said any further action; to have an equitable share in the proceeds from the
national agencies and offices may establish such field units as may be utilization and development of the national wealth and resources within
their respective territorial jurisdictions including sharing the same with
Page 24 of 38
the inhabitants by way of direct benefits; to acquire, develop, lease, enterprises, subject to the limitations provided in this Code and
encumber, alienate, or otherwise dispose of real or personal property other applicable laws.
held by them in their proprietary capacity and to apply their resources
and assets for productive, developmental, or welfare purposes, in the SEC. 27. Prior Consultations Required.- No project or program shall be
exercise or furtherance of their governmental or proprietary powers implemented by government authorities unless the consultations
and functions and thereby ensure their development into self-reliant mentioned in Sections 2 (c) and 26 hereof are complied with, and prior
communities and active participants in the attainment of national approval of the sanggunian concerned is obtained: Provided, That
goals. occupants in areas where such projects are to be implemented shall not
be evicted unless appropriate relocation sites have been provided, in
accordance with the provisions of the Constitution.
SEC. 22. Corporate Powers. - (a) Every local government unit, as a
corporation, shall have the following powers:chanroblesvirtuallawlibrary

(1) To have continuous succession in its corporate name; SEC. 89. Prohibited Business and Pecuniary Interest. - (a) It shall be
unlawful for any local government official or employee, directly or
(2) To sue and be sued; indirectly, to:chanrobles virtual law library

(3) To have and use a corporate seal; (1) Engage in any business transaction with the local government unit
in which he is an official or employee or over which he has the power of
(4) To acquire and convey real or personal property; supervision, or with any of its authorized boards, officials, agents, or
attorneys, whereby money is to be paid, or property or any other thing
(5) To enter into contracts; and of value is to be transferred, directly or indirectly, out of the resources
of the local government unit to such person or firm;
(6) To exercise such other powers as are granted to corporations,
(2) Hold such interests in any cockpit or other games licensed by a
subject to the limitations provided in this Code and other laws. local government unit.
(b) Local government units may continue using, modify, or change their
(3) Purchase any real estate or other property forfeited in favor of
existing corporate seals: Provided, That newly established local
such local government unit for unpaid taxes or assessment, or by virtue
government units or those without corporate seals may create their
of a legal process at the instance of the said local government unit.
own corporate seals which shall be registered with the Department of
the Interior and Local Government: Provided, further, That any change (4) Be a surety for any person contracting or doing business with the
of corporate seal shall also be registered as provided herein. local government unit for which a surety is required; and

(c) Unless otherwise provided in this Code, contract may be entered (5) Possess or use any public property of the local government unit for
into by the local chief executive in behalf of the local government unit private purposes.
without prior authorization by the sanggunian concerned. A legible copy
of such contract shall be posted at a conspicuous place in the provincial (b) All other prohibitions governing the conduct of national public
capitol or the city, municipal or barangay hall. officers relating to prohibited business and pecuniary interest so
provided for under Republic Act Numbered Sixty-seven thirteen (R. A.
(d) Local government units shall enjoy full autonomy in the exercise of No. 6713) otherwise known as the "Code of Conduct and Ethical
Standards for Public Officials and Employees" and other laws shall also
their proprietary functions and in the management of their economic
be applicable to local government officials and employees.

Page 25 of 38
d) Certificate of Ancestral Lands Title — refers to a title formally
 Indigenous People’s Rights Act (Section 3, 5, 7 & 8) recognizing the rights of ICCs/IPs over their ancestral lands;

e) Communal Claims — refer to claims on land, resources and


SECTION 3. Definition of Terms. — For purposes of this Act, the rights thereon, belonging to the whole community within a defined
following terms shall mean: territory;

a) Ancestral Domains — Subject to Section 56 hereof, refer to f) Customary Laws — refer to a body of written and/or
all areas generally belonging to ICCs/IPs comprising lands, inland waters, unwritten rules, usages, customs and practices traditionally and
coastal areas, and natural resources therein, held under a claim of continually recognized, accepted and observed by respective ICCs/IPs;
ownership, occupied or possessed by ICCs/IPs, by themselves or through
their ancestors, communally or individually since time immemorial, g) Free and Prior Informed Consent — as used in this Act shall
continuously to the present except when interrupted by war, force mean the consensus of all members of the ICCs/IPs to be determined in
majeure or displacement by force, deceit, stealth or as a consequence of accordance with their respective customary laws and practices, free from
government projects or any other voluntary dealings entered into by any external manipulation, interference and coercion, and obtained after
government and private individuals/corporations, and which are fully disclosing the intent and scope of the activity, in a language and
necessary to ensure their economic, social and cultural welfare. It shall process understandable to the community;
include ancestral lands, forests, pasture, residential, agricultural, and
other lands individually owned whether alienable and disposable or h) Indigenous Cultural Communities/Indigenous Peoples —
otherwise, hunting grounds, burial grounds, worship areas, bodies of refer to a group of people or homogenous societies identified by self-
water, mineral and other natural resources, and lands which may no ascription and ascription by others, who have continuously lived as
longer be exclusively occupied by ICCs/IPs but from which they organized community on communally bounded and defined territory, and
traditionally had access to for their subsistence and traditional activities, who have, under claims of ownership since time immemorial, occupied,
particularly the home ranges of ICCs/IPs who are still nomadic and/or possessed and utilized such territories, sharing common bonds of
shifting cultivators; language, customs, traditions and other distinctive cultural traits, or who
have, through resistance to political, social and cultural inroads of
b) Ancestral Lands — Subject to Section 56 hereof, refers to colonization, non-indigenous religions and cultures, became historically
land occupied, possessed and utilized by individuals, families and clans differentiated from the majority of Filipinos. ICCs/IPs shall likewise
who are members of the ICCs/IPs since time immemorial, by themselves include peoples who are regarded as indigenous on account of their
or through their predecessors-in-interest, under claims of individual or descent from the populations which inhabited the country, at the time of
traditional group ownership, continuously, to the present except when conquest or colonization, or at the time of inroads of non-indigenous
interrupted by war, force majeure or displacement by force, deceit, religions and cultures, or the establishment of present state boundaries,
stealth, or as a consequence of government projects and other voluntary who retain some or all of their own social, economic, cultural and political
dealings entered into by government and private institutions, but who may have been displaced from their traditional
individuals/corporations, including, but not limited to, residential lots, domains or who may have resettled outside their ancestral domains;
rice terraces or paddies, private forests, swidden farms and tree lots;
i) Indigenous Political Structures — refer to organizational and
c) Certificate of Ancestral Domain Title — refers to a title cultural leadership systems, institutions, relationships, patterns and
formally recognizing the rights of possession and ownership of ICCs/IPs processes for decision-making and participation, identified by ICCs/IPs
over their ancestral domains identified and delineated in accordance with such as, but not limited to, Council of Elders, Council of Timuays, Bodong
this law; Holders, or any other tribunal or body of similar nature;

Page 26 of 38
j) Individual Claims — refer to claims on land and rights cultural integrity. The indigenous concept of ownership generally holds
thereon which have been devolved to individuals, families and clans that ancestral domains are the ICC’s/IP’s private but community
including, but not limited to, residential lots, rice terraces or paddies and property which belongs to all generations and therefore cannot be sold,
tree lots; disposed or destroyed. It likewise covers sustainable traditional
resource rights.
k) National Commission on Indigenous Peoples (NCIP) — refers
to the office created under this Act, which shall be under the Office of the
President, and which shall be the primary government agency SECTION 7. Rights to Ancestral Domains. — The rights of
responsible for the formulation and implementation of policies, plans and ownership and possession of ICCs/IPs to their ancestral domains shall
programs to recognize, protect and promote the rights of ICCs/IPs; be recognized and protected. Such rights shall include:
a) Right of Ownership. — The right to claim ownership over
l) Native Title — refers to pre-conquest rights to lands and lands, bodies of water traditionally and actually occupied by ICCs/IPs,
domains which, as far back as memory reaches, have been held under a sacred places, traditional hunting and fishing grounds, and all
claim of private ownership by ICCs/IPs, have never been public lands and improvements made by them at any time within the domains;
are thus indisputably presumed to have been held that way since before
the Spanish Conquest; b) Right to Develop Lands and Natural Resources. — Subject
to Section 56 hereof, right to develop, control and use lands and
territories traditionally occupied, owned, or used; to manage and
m) Nongovernment Organization — refers to a private, nonprofit
conserve natural resources within the territories and uphold the
voluntary organization that has been organized primarily for the delivery
responsibilities for future generations; to benefit and share the profits
of various services to the ICCs/IPs and has an established track record
from allocation and utilization of the natural resources found therein;
for effectiveness and acceptability in the community where it serves;
the right to negotiate the terms and conditions for the exploration of
natural resources in the areas for the purpose of ensuring ecological,
n) People’s Organization — refers to a private, nonprofit environmental protection and the conservation measures, pursuant to
voluntary organization of members of an ICC/IP which is accepted as national and customary laws; the right to an informed and intelligent
representative of such ICCs/IPs; participation in the formulation and implementation of any project,
government or private, that will affect or impact upon the ancestral
o) Sustainable Traditional Resource Rights — refer to the rights domains and to receive just and fair compensation for any damages
of ICCs/IPs to sustainably use, manage, protect and conserve a) land, which they may sustain as a result of the project; and the right to
air, water, and minerals; b) plants, animals and other organisms; c) effective measures by the government to prevent any interference
collecting, fishing and hunting grounds; d) sacred sites; and e) other with, alienation and encroachment upon these rights;
areas of economic, ceremonial and aesthetic value in accordance with
their indigenous knowledge, beliefs, systems and practices; and c) Right to Stay in the Territories. — The right to stay in the
territory and not to be removed therefrom. No ICCs/IPs will be
p) Time Immemorial — refers to a period of time when as far relocated without their free and prior informed consent, nor through
back as memory can go, certain ICCs/IPs are known to have occupied, any means other than eminent domain. Where relocation is considered
possessed in the concept of owner, and utilized a defined territory necessary as an exceptional measure, such relocation shall take place
devolved to them, by operation of customary law or inherited from their only with the free and prior informed consent of the ICCs/IPs concerned
ancestors, in accordance with their customs and traditions. and whenever possible, they shall be guaranteed the right to return to
their ancestral domains, as soon as the grounds for relocation cease to
exist. When such return is not possible, as determined by agreement or
SECTION 5. Indigenous Concept of Ownership. — Indigenous through appropriate procedures, ICCs/IPs shall be provided in all
concept of ownership sustains the view that ancestral domains and all possible cases with lands of quality and legal status at least equal to
resources found therein shall serve as the material bases of their that of the land previously occupied by them, suitable to provide for
Page 27 of 38
their present needs and future development. Persons thus relocated to a non-member of the concerned ICCs/IPs is tainted by the vitiated
shall likewise be fully compensated for any resulting loss or injury; consent of the ICCs/IPs, or is transferred for an unconscionable
consideration or price, the transferor ICC/IP shall have the right to
d) Right in Case of Displacement. — In case displacement redeem the same within a period not exceeding fifteen (15) years from
occurs as a result of natural catastrophes, the State shall endeavor to the date of transfer.
resettle the displaced ICCs/IPs in suitable areas where they can have
temporary life support systems: Provided, That the displaced ICCs/IPs
shall have the right to return to their abandoned lands until such time 2. Private Property (Art. 425)
that the normalcy and safety of such lands shall be determined:
Provided, further, That should their ancestral domain cease to exist and  Collective Ownership (Reviewer)
normalcy and safety of the previous settlements are not possible,
displaced ICCs/IPs shall enjoy security of tenure over lands to which
they have been resettled: Provided, furthermore, That basic services  Patrimonial (Reviewer)
and livelihood shall be provided to them to ensure that their needs are
adequately addressed;
 Evidence of Ownership (Reviewer)
e) Right to Regulate Entry of Migrants. — Right to regulate the
entry of migrant settlers and organizations into the domains;
 Party Rights (Reviewer)
f) Right to Safe and Clean Air and Water. — For this purpose,
the ICCs/IPs shall have access to integrated systems for the
management of their inland waters and air space; 3. Res Nullius (Nobody’s Thing) – (Reviewer)

g) Right to Claim Parts of Reservations. — The right to claim


parts of the ancestral domains which have been reserved for various 4. Provisions Common to Immovables, Movables, Property of
purposes, except those reserved and intended for common public Public Dominion and Private Property.
welfare and service; and

h) Right to Resolve Conflict. — Right to resolve land conflicts


in accordance with customary laws of the area where the land is
located, and only in default thereof shall the complaints be submitted to 5. Cases;
amicable settlement and to the Courts of Justice whenever necessary.
PROVINCE OF ZAMBOANGA DEL NORTE VS ZAMBOANGA CITY
SECTION 8. Rights to Ancestral Lands. — The right of ownership 22 SCRA 1334
and possession of the ICCs/IPs to their ancestral lands shall be
recognized and protected. Facts:
Prior to its incorporation as a chartered city, the Municipality of
a) Right to transfer land/property. — Such right shall include Zamboanga used to be the provincial capital of the then Zamboanga
the right to transfer land or property rights to/among members of the Province. On October 12, 1936, Commonwealth Act 39 was approved
same ICCs/IPs, subject to customary laws and traditions of the converting the Municipality of Zamboanga into Zamboanga City. Sec.
community concerned. 50 of the Act also provided that — Buildings and properties which the
province shall abandon upon the transfer of the capital to another place
b) Right to Redemption. — In cases where it is shown that the will be acquired and paid for by the City of Zamboanga at a price to be
transfer of land/property rights by virtue of any agreement or devise, fixed by the Auditor General.
Page 28 of 38
the City of Manila the owner in fee simple of a parcel of land containing
The properties and buildings referred to consisted of 50 lots and some an area of 9,689.8 square meters, more or less. On various dates in
buildings constructed thereon, located in the City of Zamboanga and 1924, the City of Manila sold portions of the aforementioned parcel of
covered individually by Torrens certificates of title in the name of land in favor of Pura Villanueva.
Zamboanga Province.
On September 21, 1960, the Municipal Board of Manila, presided by
On June 6, 1952, Republic Act 711 was approved dividing the province then Vice-Mayor Antono J. Villegas, adopted a resolution requesting His
of Zamboanga into two (2): Zamboanga del Norte and Zamboanga del Excellency, the President of the Philippines to consider the feasibility of
Sur. Properties and the obligations of the province of Zamboanga shall declaring the City property bounded by Florida, San Andres, and
be divided equitably between the Province of Zamboanga del Norte and Nebraska Streets, containing a total area of 7,450 square meters as a
the Province of Zamboanga del Sur by the President of the Philippines, patrimonial property of the City of Manila for the purpose of reselling
upon the recommendation of the Auditor General. these lots to the actual occupants thereof. There is therefore a
precedent that this parcel of land could be subdivided and sold to bona
However, on June 17, 1961, Republic Act 3039 was approved amending fide occupants. The bill was passed by the Senate and approved by the
Sec. 50 of Commonwealth Act 39 by providing that —All buildings, President and became RA 4118.
properties and assets belonging to the former province of Zamboanga
and located within the City of Zamboanga are hereby transferred, free Issue:
of charge, in favor of the said City of Zamboanga. W/N the property involved in RA 4118 is a private or patrimonial
property of the City of Manila.
Issue:
WON Zamboanga del Norte is deprived of its private properties without Held:
due process and just compensation. The conclusion of the respondent court that Republic Act No. 4118
converted a patrimonial property of the City of Manila into a parcel of
disposable land of the State and took it away from the City without
Held: compensation is, therefore, unfounded. In the last analysis the land in
The fact that the 26 lots are registered strengthens the proposition that question pertains to the State and the City of Manila merely acted as
they are truly private in nature. On the other hand, that the 24 lots trustee for the benefit of the people therein for whom the State can
used for governmental purposes are also registered is of no significance legislate in the exercise of its legitimate powers.
since registration cannot convert public property to private.
If it were its patrimonial property why should the City of Manila be
Applying Art. 424 of NCC, all the properties in question, except the two requesting the President to make representation to the legislature to
(2) lots used as High School playgrounds, could be considered as declare it as such so it can be disposed of in favor of the actual
patrimonial properties of the former Zamboanga province. Even the occupants? There could be no more blatant recognition of the fact that
capital site, the hospital and leprosarium sites, and the school sites will said land belongs to the State and was simply granted in usufruct to
be considered patrimonial for they are not for public use. They would the City of Manila for municipal purposes.
fall under the phrase "public works for public service".

CEBU OXYGEN VS BERCILLES


SALAS VS JARENCIO 66 SCRA 481
46 SCRA 734
Facts:
Facts:
On February 24, 1919, the 4th Branch of the Court of First Instance of
Manila, acting as a land registration court, rendered judgment declaring
Page 29 of 38
This is a case on a petition for the review of the order of the Court of A certain lots were formerly a part of a large parcel of land belonging to
First Instance of Cebu dismissing petitioner's application for registration the predecessor of the herein claimants and appellees. From the year
of title over a parcel of land situated in the City of Cebu. 1896 said land began to wear away, due to the action of the waves of
Manila Bay, until the year 1901 when the said lots became completely
The parcel of land sought to be registered was only a portion of M. submerged in water in ordinary tides, and remained in such a state
Borces Street, Mabolo, Cebu City. On September 23, 1968, the City until 1912 when the Government undertook the dredging of Vitas
Council of Cebu, through Resolution No. 2193, approved on October 3, Estuary in order to facilitate navigation, depositing all the sand and silt
1968, declared the terminal portion of M. Borces Street, Mabolo, Cebu taken from the bed of the estuary on the low lands which were
City, as an abandoned road, the same not being included in the City completely covered with water, surrounding that belonging to the
Development Plan. Philippine Manufacturing Company, thereby slowly and gradually
forming the lots, the subject matter of this proceeding.
Assistant Provincial Fiscal of Cebu filed a motion to dismiss the
application on the ground that the property sought to be registered Issue:
being a public road intended for public use is considered part of the
public domain and therefore outside the commerce of man. Whether or not the lower court erred in not holding that the lots in
Consequently, it cannot be subject to registration by any private question are of the public domain the same having been gained from
individual. the sea by accession, by fillings made by the Bureau of Public Works
and by the construction of the break-water.
Issue:
Held:
Whether or not the declaration of the road as abandoned make it
patrimonial property which may be the object of a common contract. The Supreme Court held that the lots in question having disappeared
on account of the gradual erosion due to the ebb and flow of the tide,
Held: and having remained in such a state until they were reclaimed from the
Since that portion of the city street subject of petitioner's application sea by the filling in done by the Government, they are public land in
for registration of title was withdrawn from public use, it follows that the sense that neither the herein claimants-appellees nor their
such withdrawn portion becomes patrimonial property which can be the predecessors did anything to prevent their destruction.
object of an ordinary contract. By virtue whereof, the judgment appealed from the lower court is
reversed.
Article 422 of the Civil Code expressly provides that "Property of public
dominion, when no longer intended for public use or for public service,
shall form part of the patrimonial property of the State." IGNACIO VS. DIRECTOR OF LANDS, MAY 30, 1960
FACTS:
Property thus withdrawn from public servitude may be used or January 25, 1950 - Ignacio filed an application for the registration of a
conveyed for any purpose for which other real property belonging to parcel of land (mangrove), situated in barrio Gasac, Navotas, Rizal
the City may be lawfully used or conveyed. (37,877sqm).

Later, Ignacio amended his application by alleging that he owned the


GOVERNMENT OF THE PHIL ISLANDS VS CABANGIS parcel applied for by right of accretion.
53 Phil 112 The Director of Lands and a certain Velriano opposed.
Director of Lands:
Facts:

Page 30 of 38
a) the land applied for as a portion of the public domain, for the said contention untenable. A bay is a part of the sea. In the case of Ker
reason that neither the applicant nor his predecessor-in-interest & Co. vs. Cauden, that such land formed by the action of the sea is
possessed sufficient title, property of the State.

b) not acquired it either by composition title from the Spanish Again! Ignacio argues that granting that the land in question
government or by possessory information title under the Royal formed part of the public domain, having been gained from the sea, the
Decree of February 13, 1894; trial court should have declared the same no longer necessary for any
public use or purpose, and therefore, became disposable and available
c) that he had not possessed the same openly, continuously and for private ownership. But the Court said, until a formal declaration on
adversely under a bona fide claim of ownership since July 26, the part of the Government, through the executive department or the
1894. Legislature, to the effect that the land in question is no longer needed
for coast guard service, for public use or for special industries, they
Valeriano: holds the land by virtue of a permit granted him by the continue to be part of the public domain, not available for private
Bureau of Fisheries, issued on January 13, 1947, and approved by the appropriation or ownership.
President.
Last! Ignacio said that he had acquired the parcel of land
It is not disputed that the subject land adjoins a parcel owned by through acquisitive prescription, having possessed the same for over
Ignacio which he had acquired from the Government by virtue of a free ten years. BUT the land of the public domain is not subject to ordinary
patent title in 1936. It has also been established that the parcel in prescription.
question was formed by accretion and alluvial deposits caused by the
action of the Manila Bay which boarders it on the southwest.
Ignacio: he had occupied the land since 1935, planting it with api-api DE BUYSER vs. DIRECTOR, 121 SCRA 13
trees, and that his possession had been continuous, adverse and public Facts: Plaintiff is the registered owner of Lot 4217 of the Surigao
for a period of 20 yrs. until the possession was distributed by oppositor Cadastre, which borders the Surigao Strait. Contiguous to said lot is a
Valeriano. parcel of land which was formed by accretion from the sea, the subject-
matter of this controversy. Defendants Ignacio Tandayag and his wife
The Director of Lands sought to prove that the parcel is foreshore land, Candida Tandayag have been occupying this foreshore land order a
covered by the ebb and flow of the tide and, therefore, formed part of Revocable Permit issued by the Director of Lands. For the use and
the public domain. occupation thereof, said spouses paid Bureau of Lands the amount of
CFI of Rizal: In favor of the Director of Lands. P6.50 annually. They have a house on said lot, which plaintiff alleged
Hence, this case. had been purchased by the Tandayags from one Francisco Macalinao, a
former lessee of the plaintiff.
ISSUE: WON the subject land is owned by Ignacio? NO!
Claiming ownership of the said land, plaintiff filed an action against the
HELD: Ignacio contends that the parcel belongs to him by the law of spouses Tandayag in CFI-Surigao to recover possession of this land as
accretion, having been formed by gradual deposit by action of the well as rents in arrears for a period of 6 years. The complaint was
Manila Bay, and he cites Article 457 of the New Civil Code (Article 366, subsequently amended to implead the Director of Land as defendant,
Old Civil Code). But, it is clearly inapplicable because it refers to allegedly for having illegally issued a revocable permit to the
accretion or deposits on the banks of rivers, while the accretion in the Tandayags.
present case was caused by action of the Manila Bay.
CFI dismissed complaint filed by the plaintiff for lack of cause of action,
Then, Ignacio contends that Articles 1, 4 and 5 of the Law of declaring defendants Tandayags as the lawful occupants. Plaintiff
Waters are not applicable because they refer to accretions formed by directly appealed to SC on a pure question of law.
the sea, and that Manila Bay cannot be considered as a sea. We find
Page 31 of 38
Issue: W/N plaintiff can claim ownership over the alluvial land two auto trucks used for street sprinkling, one police patrol automobile,
the police stations on Mabini street, and in Molo and Mandurriao and
Held: The plaintiff's claim of ownership over the land in question is the concrete structures, with the corresponding lots, used as markets
bereft of legal basis. Such alluvial formation along the seashore is part by Iloilo, Molo, and Mandurriao.
of the public domain and, therefore, not open to acquisition by adverse
possession by private persons. It is outside the commerce of man, The provincial fiscal of Iloilo filed a motion with the CFI praying that: –
unless otherwise declared by either the executive or legislative branch the attachment on the said property be dissolved – the said attachment
of the government. be declared null and void as being illegal and violative of the rights of
the municipality. Aug. 12, 1925:
In asserting the right of ownership, plaintiff invoked Art. 4 of the
Spanish Law of Water of Aug. 3, 1866 (wtf) which provides: “Lands CFI declared the attachment levied upon the aforementioned property
added to the shore by accretion and alluvial deposits caused by the of the defendant municipality null and void, thereby dissolving the said
action of the sea, form part of the public domain, when they are no attachment. From this order the plaintiff has appealed by bill of
longer washed by the waters of the sea, and are not necessary for exceptions.
purposes of public utility, or for the establishment of special industries,
or for the coastguard service, the Government shall declare them to be Issue: WON the property levied upon is exempt from execution.
the property of the owners of the estate adjacent thereto and as an
increment thereof.” Held: Yes A343 (now A423) of the Civil Code divides the property of
provinces and towns (municipalities) into property for public use and
Plaintiff’s reliance diri is quite misplaced. The true construction of the patrimonial property. According to A344 (now A424), provincial roads
cited provision is that the State shall grant these lands to the adjoining and foot-path, squares, streets, fountains and public waters, drives and
owners only when they are no longer needed for the purposes public improvements of general benefit built at the expense of the said
mentioned therein. In the case at bar, the trial court found that towns or provinces, are property for public use. All other property
plaintiff’s evidence failed to prove that the land in question is no longer possessed by the said towns and provinces is patrimonial and shall be
needed by the government. subject to the provisions of the Civil Code except as provided by special
laws. And, the principle governing property of the public domain of the
Since the land is admittedly property of public dominion, its disposition State is applicable to property for public use of the municipalities as
fails under the exclusive supervision and control of the Bureau of said municipal is similar in character. The principle is that the property
Lands. Under the Public Land Act, an application for the sale or lease of for public use of the State is not within the commerce of man and,
lands enumerated under Section 59 thereof, should he filed with the consequently, is inalienable and not subject to prescription. Likewise,
Bureau of Lands. In compliance therewith, the spouses Tandayag filed property for public of the municipality is not within the commerce of
the appropriate application, while plaintiff did not. man so long as it is used by the public and, consequently, said property
is also inalienable. -----------------------------

TANTOCO vs. MUNICIPAL COUNCIL OF ILOILO. March 25, 1926 The rules based on jurisprudence & annotations: The American Law as
FACTS: The widow of Tan Toco sued the municipal council of Iloilo for expounded by Mcquilin in Municipal Corporations, volume 3, paragraph
the amount of P42,966.40, being the purchase price of two strips of 1160: States statutes often provide the court houses, jails and other
land, one on Calle J. M. Basa (592 sqm), and the other on Calle buildings owned by municipalities and the lots on which they stand shall
Aldiguer (59sqm), which the municipality of Iloilo had appropriated for be exempt from attachment and execution. But independent of express
widening said street. CFI Iloilo ordered the municipality to pay+int. statutory exemption, as a general proposition, property, real and
personal, held by municipal corporations, in trust for the benefit of their
Judgment was affirmed by the SC. Lack of funds->the municipality was inhabitants, and used for public purposes, is exempt.
unable to pay->plaintiff had a writ of execution issue against the
property of the municipality-> by virtue of which the sheriff attached:
Page 32 of 38
It is generally held that property owned by a municipality, where not supreme reason for this rule is the character of the public use to which
used for a public purpose but for quasi private purposes, is subject to such kind of property is devoted. The necessity for government service
execution on a judgment against the municipality, and may be sold. In justifies that the property of public of the municipality be exempt from
Corpus Juris, vol 23, page 355 Where property of a municipal or other execution.
public corporation is sough to be subjected to execution to satisfy
judgments recovered against such corporation, the question as to DISPOSITIVE: the judgment appealed is affirmed with costs against the
whether such property is leviable or not is to be determined by the appellant.
usage and purposes for which it is held xxx
MUNICIPALITY OF PAOAY vs. MANAOIS, 86 Phil 692
But where a municipal corporation or country owns in its proprietary, as Teodoro Manaois having obtained a judgment against the municipality
distinguished from its public or governmental capacity, property not of Paoay, Ilocos Norte in civil case No. 8026 of the Court of First
useful or used for a public purpose but for quasi private purposes, the Instance of Pangasinan, Judge De Guzman of said province issued a
general rule is that such property may be seized and sold under writ of execution against the defendant municipality. In compliance
execution against the corporation, precisely as similar property of with said writ the Provincial Sheriff of Ilocos Norte levied upon and
individuals is seized and sold. But property held for public purposes is attached the following properties:
not subject to execution merely because it is temporarily used for (1) The amount of One thousand seven hundred twelve pesos and one
private purposes, although if the public use is wholly abandoned it centavo (P1,712.01) in the Municipal Treasury of Paoay, Ilocos Norte,
becomes subject to execution. Whether or not property held as public representing the rental paid by Mr. Demetrio Tabije of a fishery lot
property is necessary for the public use is a political, rather than a belonging to the defendant municipality;
judicial question. In volume 1, page 467, Municipal Corporations by (2) About forty fishery lots leased to thirty-five different persons by the
Dillon The revenue of the public corporation is the essential means by Municipality.
which it is enabled to perform its appointed work. Deprived of its On July 26, 1949, the Provincial Fiscal of Ilocos Norte in representation
regular and adequate supply of revenue, such a corporation is of the municipality of Paoay, filed a petition in the Court of First
practically destroyed and the ends of its erection thwarted. Based upon Instance of Pangasinan asking for the dissolution of that attachment of
considerations of this character, it is the settled doctrine of the law that levy of the properties above-mentioned. Judge De Guzman in his order
only the public property but also the taxes and public revenues of such of October 6, 1949, denied the petition for the dissolution of the
corporations cannot be seized under execution against them, either in attachment; a motion for reconsideration was also denied. Instead of
the treasury or when in transit to it. appealing from that order the municipality of Paoay has filed the
present petition for certiorari with the writ of preliminary injunction,
Judgments rendered for taxes, and the proceeds of such judgments in asking that the order of respondent Judge dated October 6, 1946, be
the hands of officers of the law, are not subject to execution unless so reversed and that the attachment of the properties of the municipality
declared by statute. In the case of City of New Orleans vs. Louisiana already mentioned be dissolved.
Construction Co., Ltd., it was held that a wharf (leased to Louisiana The petitioner goes on the theory that the properties attached by the
CC)for unloading sugar and molasses, open to the public, was property sheriff for purposes of execution are not subject to levy because they
for the public use of the City of New Orleans and was not subject to are properties for public use. It is therefore necessary to ascertain the
attachment for the payment of the debts of the said city. In the case of nature and status back a few years, specifically, to the year 1937.
Klein vs. City of New Orleans, the US SC states that a public wharf on It seems that the municipality of Paoay is and for many years has been
the banks of the Mississippi River was public property and not subject operating or rather leasing fishery lots on municipal waters. These
to execution for the payment of a debt of the City of New Orleans waters have been parceled out in lots, either singly or in groups and let
where said wharf was located. --------------------------- out or rented after public bidding to the highest bidders, ordinarily, for
a year, but sometimes, for a longer period of time. On April 4, 1937,
It is evident that the movable and immovable property of a the municipality of Paoay entered into a contract with one Francisco V.
municipality, necessary for governmental purpose, may not be attached Duque for the lease of fishery lots 3, 4, 5, 6, 7, and 8 at a rental of
and sold for the payment of a judgment against the municipality. The P1,218.79 per annum, for a period of four years from January 1, 1937
Page 33 of 38
to December 31, 1940. In 1938, the municipal council of Paoay execution. If this is true, with more reason should income or revenue
approved a resolution confiscating said fishery lots on the ground that coming from these shares of stock, in the form of interest or dividends,
Duque had failed to comply with the terms of the lease contract. be subject to execution? (McQuillin on Municipal Corporations, Vol. 3,
Thereafter, the municipality advertised the lease of its fishery lots for par. 1160.)
public bidding, including the lots above mentioned. Teodoro Manaois The fishery or municipal waters of the town of Paoay, Ilocos Norte,
being the highest bidder for said lots 3 to 8, was awarded the lease which had been parceled out or divided into lots and later let out to
thereof as per resolution of the municipality council of Paoay of private persons for fishing purposes at an annual rental are clearly not
December 1, 1938. On January 1, 1939, Manaois paid P2,025 as rental subject to execution. In the first place, they do not belong to the
for the said lots for the year 1939. However, when Manaois and his municipality. They may well be regarded as property of State. What the
men tried to enter the property in order to exercise his rights as lessee municipality of Paoay hold is merely what may be considered the
and to catch fish, particularly bañgos fry, he found therein Duque and usufruct or the right to use said municipal waters, granted to it by
his men who claimed that he (Duque) was still the lessee, and despite section 2321 of the Revised Administrative Code which reads as
the appeal of Manaois to the Municipality of Paoay to put him in follows:
possession and the efforts of the municipality to oust Duque, the latter 1. SEC. 2321. Grant of fishery. — A municipal council shall have
succeeded in continuing in his possession and keeping Manaois and his authority, for purposes of profit, to grant the exclusive privileges of
men out. Manaois brought an action against the Municipality of Paoay fishery or right to conduct a fish-breeding ground within any definite
to recover not only the sum paid by him for the lease of the fishery lots portion, or area, of the municipal waters.
but also damages. He obtained judgment in his favor in June, 1940 in "Municipal waters", as herein used, include not only streams, lakes, and
the Court of First Instance of Pangasinan, civil case No. 8026, which tidal waters, include within the municipality, not being the subject of
decision has long become final. The writ of execution and the private ownership, but also marine waters include between two lines
attachment and levy mentioned at the beginning of this decision were drawn perpendicular to the general coast line from points where the
issued and effected to enforce the judgment just mentioned. boundary lines of the municipality touch the sea at high tide, and third
There can be no question that properties for public use held by line parallel with the general coast line and distant from it three marine
municipal corporation are not subject to levy and execution. The leagues.
authorities are unanimous on this point. This Court in the case of Viuda Where two municipalities are so situated on opposite shores that there
de Tantoco vs. Municipal Council of Iloilo (49 Phil., 52) after citing is less than six marine leagues of marine waters between them the
Manresa, the works of McQuillin and Dillon on Municipal Corporations, third line shall be a line equally distant from the opposite shores of the
and Corpus Juris, held that properties for public use like trucks used for respective municipalities.
sprinkling the streets, police patrol wagons, police stations, public Now, is this particular usufruct of the municipality of Paoay over its
markets, together with the land on which they stand are exempt from municipal waters, subject to execution to enforce a judgment against
execution. Even public revenues of municipal corporations destined for the town? We are not prepared to answer this question in the
the expenses of the municipality are also exempt from the execution. affirmative because there are powerful reasons against its propriety
The reason behind this exemption extended to properties for public and legality. In the first place, it is not a usufruct based on or derived
use, and public municipal revenues is that they are held in trust for the from an inherent right of the town. It is based merely on a grant, more
people, intended and used for the accomplishment of the purposes for or less temporary, made by the Legislature. Take the right of fishery
which municipal corporations are created, and that to subject said over the sea or marine waters bordering a certain municipality. These
properties and public funds to execution would materially impede, even marine waters are ordinarily for public use, open to navigation and
defeat and in some instances destroy said purpose. fishing by the people. The Legislature thru section 2321 of the
Property however, which is patrimonial and which is held by Administrative Code, as already stated, saw fit to grant the usufruct of
municipality in its proprietary capacity is treated by great weight of said marine waters for fishery purpose, to the towns bordering said
authority as the private asset of the town and may be levied upon and waters. Said towns have no visited right over said marine waters. The
sold under an ordinary execution. The same rule applies to municipal Legislature, for reasons it may deem valid or as a matter of public
funds derived from patrimonial properties, for instance, it has been policy, may at any time, repeal or modify said section 2321 and revoke
held that shares of stocks held by municipal corporations are subject to this grant to coastal towns and open these marine waters to the public.
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Or the Legislature may grant the usufruct or right of fishery to the much so that the annual appropriations for the expenses of the
provinces concerned so that said provinces may operate or administer municipalities are based on these revenues. Not so with the income
them by leasing them to private parties. derived form fisheries. In the first place, the usufruct over municipal
All this only goes to prove that the municipality of Paoay is not holding waters was granted by the Legislature merely to help or bolster up the
this usufruct or right of fishery in a permanent or absolute manner so economy of municipal government. There are many towns in the
as to enable it to dispose of it or to allow it to be taken away from it as Philippines, specially in the interior, which do not have municipal waters
its property through execution. for fishery purpose and yet without much source of revenue, they can
Another reason against subjecting this usufruct or right of fishery over function, which goes to prove that this kind of revenue is not
municipal waters, to execution, is that, if this were to be allowed and indispensable for the performance of governmental functions. In the
this right sold on execution, the buyer would immediately step into the second place, the amount of this income is far from definite or fixed. It
shoes of the judgment-debtor municipality. Such buyer presumably depends upon the amounts which prospective bidders or lessees are
buys only the right of the municipality. He does not buy the fishery willing to pay. If fishing on these marine water, lakes and rivers in the
itself nor the municipal waters because that belongs to the State. All municipality is good, the bids would be high and the income would be
that the buyer might do would be to let out or rent to private substantial. If the fish in these waters is depleted or, if for some
individuals the fishery rights over the lots into which the municipal reasons or another, fishing is not profitable, then the income would be
waters had been parceled out or divided, and that is, after public greatly reduced. In other words, to many municipalities engaged in this
bidding. This, he must do because that is the only right granted to the business of letting out municipal waters for fishing purposes, it is a sort
municipality by the Legislature, a right to be exercised in the manner of sideline, so that even for fishing purposes, it is sort of sideline, so
provided by law, namely, to rent said fishery lots after public bidding. that even without it the municipality may still continue functioning and
(See sec. 2323 of the Administrative Code in connection with sec. 2319 perform its essential duties as such municipal corporations.
of the same Code.) Then, we shall have a situation rather anomalous to We call this activity of municipalities in renting municipal waters for
be sure, of a private individual conducting public bidding, renting to the fishing purposes as a business for the reasons that the law itself (Sec.
highest bidders fishery lots over municipal waters which are property of 2321, Administrative Code already mentioned and quoted) allowed said
the State, and appropriating the results to his own private use. The municipalities to engage in it for profit. And it is but just that a town so
impropriety, if not illegality, of such a contingency is readily apparent. engaged should pay and liquidate obligations contracted in connection
But that is not all. The situation imagined implies the deprivation of the with said fishing business, with the income derived therefrom.
municipal corporation of a source of a substantial income, expressly In conclusion, we hold that the fishery lots numbering about forty in
provide by law. Because of all this, we hold that the right or usufruct of the municipality of Paoay, mentioned at the beginning of this decision
the town of Paoay over its municipal waters, particularly, the forty odd are not subject to execution. For this reason, the levy and attachment
fishery lots included in the attachment by the Sheriff, is not subject to made by the Provincial Sheriff of Ilocos Norte of theses fishery lots is
execution. void and the order of the Court of First Instance of Pangasinan insofar
But we hold that the revenue or income coming from the renting of as it failed to dissolve the attachment made on these lots is reversed.
these fishery lots is certainly subject to execution. It may be profitable, However, the amount of P1,712.01 in the municipal treasury of Paoay
if not necessary, to distinguish this kind of revenue from that derived representing the rental paid by Demetrio Tabije on fishery lots let out
from taxes, municipal licenses and market fees are provided for and by the municipality of Paoay is a proper subject of levy, and the
imposed by the law, they are intended primarily and exclusively for the attachment made thereon by the Sheriff is valid. We may add that
purpose of financing the governmental activities and functions of other amounts coming or due from lessees of the forty odd fishery lots
municipal corporations. In fact, the real estate taxes collected by a leased by the municipality to different persons may also be attached or
municipality do not all go to it. A portion thereof goes to the province, garnished to satisfy the judgement against the municipality of Paoay.
in the proportion provided for by law. For the same reason, municipal
markets are established not only to provide a place where the people In this connection, we wish to say that had the municipality of Paoay
may sell and buy commodities but also to provide public revenues for paid the judgment rendered against it, all this controversy and court
the municipality. To many towns, market fees constitute the bulk of action with all its vexation, troubles and expense would have been
their assets and incomes. These revenues are fixed and definite, so avoided. It will be remembered that the decision against the
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municipality was rendered as far back as 1940. Evidently, the of San Miguel Bulacan, represented by Mayor Mar Marcelo G. Aure and
municipality did not appeal from that decision. It has long become final. its Municipal Treasurer:
The Court of Pangasinan that rendered the decision saw no valid
defense of the municipality to the legitimate claim of Teodoro Manaois. 1. ordering the partial revocation of the Deed of Donation signed by the
After the municipality had failed to place Manaois in possession of the deceased Carlos Imperio in favor of the Municipality of San Miguel
lots leased to him, the municipality did not even offer to return or Bulacan, dated October 27, 1947 insofar as Lots Nos. 1, 2, 3, 4 and 5,
reimburse the rental paid by him. It is hard to understand the position Block 11 of Subdivision Plan Psd-20831 are concerned, with an
taken by the municipality of Paoay. The courts, including this tribunal aggregate total area of 4,646 square meters, which lots are among
cannot condone, much less encourage, the repudiation of just those covered and described under TCT No. T-1831 of the Register of
obligations contracted by municipal corporations. Deeds of Bulacan in the name of the Municipal Government of San
Miguel Bulacan,
On the contrary, the courts and compel payments of their valid claims
against municipalities with which they entered into valid contracts. 2. ordering the defendant to execute the corresponding Deed of
Municipal corporations are authorized by law to sue and be sued. (Sec. Reconveyance over the aforementioned five lots in favor of the
2165, Rev. Adm. Code). This authority naturally carries with it all the plaintiffs in the proportion of the undivided one-half (½) share in the
remedies and court processes, including writs of execution and name of plaintiffs Margarita D. Vda. de Imperio, Adoracion, Rodolfo,
attachment against municipal corporations. Conrado, Ernesto, Alfredo, Carlos, Jr. and Juan, all surnamed Imperio,
and the remaining undivided one-half (½) share in favor of plaintiffs
While we are willing and ready to protect properties of municipalities uses Marcelo E. Pineda and Lucila Pongco;
held for public use, as well as public revenues such as taxes, from
execution, we believe that other properties of such municipalities not 3. ordering the defendant municipality to pay to the plaintiffs in the
held for public use, including funds which are not essential to the proportion mentioned in the immediately preceding paragraph the sum
performance of their public functions, may be levied upon and sold to of P64,440.00 corresponding to the rentals it has collected from the
satisfy valid claims against said municipalities. And this Tribunal will occupants for their use and occupation of the premises from 1970 up to
help any citizen and give him every judicial facility to enforce his valid and including 1975, plus interest thereon at the legal rate from January
claim, especially a court award, against municipal corporations, even to 1970 until fully paid;
the extent of attaching and selling on execution, municipal revenues 4. ordering the restoration of ownership and possession over the five
and properties not exempt from execution. lots in question in favor of the plaintiffs in the same proportion
aforementioned;
In view of the foregoing, the order of the respondent Judge of October 5. ordering the defendant to pay the plaintiffs the sum of P3,000.00 for
6, 1949, is reversed insofar as it failed to dissolved the attachment of attomey's fees; and to pay the cost of suit.
the forty odd fishery lots. In all other respect, said order is hereby The counterclaim of the defendant is hereby ordered dismissed for lack
affirmed. of evidence presented to substantiate the same.

SO ORDERED. (pp. 11-12, Rollo)


MUNICIPALITY OF SAN MIGUEL VS. FERNANDEZ, JUNE 24 1984 The foregoing judgment became final when herein petitioner's appeal
In Civil Case No. 604-B, entitled "Margarita D. Vda. de Imperio, et al. was dismissed due to its failure to file the record on appeal on time.
vs. Municipal Government of San Miguel, Bulacan, et al.", the then The dismissal was affirmed by the then Court of Appeals in CA-G.R. No.
Court of First Instance of Bulacan, on April 28, 1978, rendered SP-12118 and by this Court in G.R. No. 59938. Thereafter, herein
judgment holding herein petitioner municipality liable to private private respondents moved for issuance of a writ of execution for the
respondents, as follows: satisfaction of the judgment. Respondent judge, on July 27, 1982,
WHEREFORE, premises considered, judgment is hereby rendered in issued an order, to wit:
favor of the plaintiffs and against the defendant Municipal Government Considering that an entry of judgment had already been made on June
14, 1982 in G. R. No. L-59938 and;
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defeat and in some instances destroy said purpose." And, in Tantoco
Considering further that there is no opposition to plaintiffs' motion for vs. Municipal Council of Iloilo, 49 Phil. 52, it was held that "it is the
execution dated July 23, 1983; settled doctrine of the law that not only the public property but also the
taxes and public revenues of such corporations Cannot be seized under
Let a writ of execution be so issued, as prayed for in the aforestated execution against them, either in the treasury or when in transit to it.
motion. (p. 10, Rollo) Judgments rendered for taxes, and the proceeds of such judgments in
the hands of officers of the law, are not subject to execution unless so
Petitioner, on July 30, 1982, filed a Motion to Quash the writ of declared by statute." Thus, it is clear that all the funds of petitioner
execution on the ground that the municipality's property or funds are municipality in the possession of the Municipal Treasurer of San Miguel,
all public funds exempt from execution. The said motion to quash was, as well as those in the possession of the Provincial Treasurer of
however, denied by the respondent judge in an order dated August 23, Bulacan, are also public funds and as such they are exempt from
1982 and the alias writ of execution stands in full force and effect. execution.

On September 13, 1982, respondent judge issued an order which in Besides, Presidential Decree No. 477, known as "The Decree on Local
part, states: Fiscal Administration", Section 2 (a), provides:
It is clear and evident from the foregoing that defendant has more than SEC. 2. Fundamental Principles. — Local government financial affairs,
enough funds to meet its judgment obligation. Municipal Treasurer transactions, and operations shall be governed by the fundamental
Miguel C, Roura of San Miguel, Bulacan and Provincial Treasurer of principles set forth hereunder:
Bulacan Agustin O. Talavera are therefor hereby ordered to comply (a) No money shall be paid out of the treasury except in pursuance of a
with the money judgment rendered by Judge Agustin C. Bagasao lawful appropriation or other specific statutory authority.
against said municipality. In like manner, the municipal authorities of xxx xxx xxx
San Miguel, Bulacan are likewise ordered to desist from plaintiffs' legal Otherwise stated, there must be a corresponding appropriation in the
possession of the property already returned to plaintiffs by virtue of the form of an ordinance duly passed by the Sangguniang Bayan before
alias writ of execution. any money of the municipality may be paid out. In the case at bar, it
has not been shown that the Sangguniang Bayan has passed an
Finally, defendants are hereby given an inextendible period of ten (10) ordinance to this effect.
days from receipt of a copy of this order by the Office of the Provincial Furthermore, Section 15, Rule 39 of the New Rules of Court, outlines
Fiscal of Bulacan within which to submit their written compliance, (p. the procedure for the enforcement of money judgment:
24, Rollo) (a) By levying on all the property of the debtor, whether real or
When the treasurers (provincial and municipal) failed to comply with personal, not otherwise exempt from execution, or only on such part of
the order of September 13, 1982, respondent judge issued an order for the property as is sufficient to satisfy the judgment and accruing cost,
their arrest and that they will be release only upon compliance thereof. if he has more than sufficient property for the purpose;
(b) By selling the property levied upon;
Hence, the present petition on the issue whether the funds of the (c) By paying the judgment-creditor so much of the proceeds as will
Municipality of San Miguel, Bulacan, in the hands of the provincial and satisfy the judgment and accruing costs; and
municipal treasurers of Bulacan and San Miguel, respectively, are public (d) By delivering to the judgment-debtor the excess, if any, unless
funds which are exempt from execution for the satisfaction of the otherwise, directed by judgment or order of the court.
money judgment in Civil Case No. 604-B. The foregoing has not been followed in the case at bar.
Well settled is the rule that public funds are not subject to levy and ACCORDINGLY, the petition is granted and the order of respondent
execution. The reason for this was explained in the case of Municipality judge, dated July 27, 1982, granting issuance of a writ of execution;
of Paoay vs. Manaois, 86 Phil. 629 "that they are held in trust for the the alias writ of execution, dated July 27, 1982; and the order of
people, intended and used for the accomplishment of the purposes for respondent judge, dated September 13, 1982, directing the Provincial
which municipal corporations are created, and that to subject said Treasurer of Bulacan and the Municipal Treasurer of San Miguel,
properties and public funds to execution would materially impede, even Bulacan to comply with the money judgments, are SET ASIDE; and
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respondents are hereby enjoined from implementing the writ of
execution.

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