Pubcor Case Brief
Pubcor Case Brief
Facts:
G.R. No. 103328 October 19, 1992 Based on complaints received by the residents of barrio Sta.
HON. ROY A. PADILLA, JR., In his capacity as Elena against the disturbance caused by the operation of the
Governor of the Province of Camarines Norte, petitioner, abaca bailing machine inside Tatel’s warehouse, Resolution
vs. 291 was enacted by the Municipal Council of Virac declaring
COMMISSION ON ELECTIONS, respondent. Tatel’s warehouse a public nuisance within the purview of
Article 694 of the Civil Code and directing the petitioner to
FACTS: remove and transfer said warehouse to a more suitable place
Republic Act No. 7155 creates the Municipality of within two months from receipt of the said resolution. The
Tulay-Na-Lupa in the Province of Camarines Norte to be municipal officials contend that petitioner's warehouse was
composed of Barangays Tulay-Na-Lupa, Lugui, San Antonio, constructed in violation of Ordinance 13, prohibiting the
Mabilo I, Napaod, Benit, Bayan-Bayan, Matanlang, Pag-Asa, construction of warehouses near a block of houses either in
Maot, and Calabasa, all in the Municipality of Labo, same the poblacion or barrios without maintaining the necessary
province. distance of 200 meters from said block of houses to avoid loss
Pursuant to said law, the COMELEC issued a of lives and properties by accidental fire. Tatel contends that
resolution for the conduct of a plebiscite. The said resolution said ordinance is unconstitutional, contrary to the due process
provides that the plebiscite shall be held in the areas or units and equal protection clause of the Constitution and null and
affected, namely the barangays comprising he proposed void for not having been passed in accordance with law.
Municipality of Tulay-Na-Lupa and the remaining areas of
the mother Municipality of Labo, Camarines Norte. Issue: 1. WON Ordinance No. 13 is unconstitutional. NO
In the plebiscite held throughout the Municipality of
Labo, majority of the votes cast were against the creation of Ordinance 13, was passed by the Municipal
the Municipality of Tulay-Na-Lupa. Council of Virac in the exercise of its police
Thus, petitioner as Governor of Camarines Norte, power. It is a settled principle of law that
seeks to set aside the plebiscite conducted throughout the municipal corporations are agencies of the State
Municipality of Labo and prays that a new plebiscite be for the promotion and maintenance of local self-
undertaken. It is the contention of petitioner that the plebiscite government and as such are endowed with the
was a complete failure and that the results obtained were police powers in order to effectively accomplish
invalid and illegal because the plebiscite, as mandated by and carry out the declared objects of their
COMELEC, should have been conducted only in the political creation.
unit or units affected, i.e. the 12 barangays comprising the
new Municipality of Tulay-Na-Lupa namely Tulay-Na-Lupa, Its authority emanates from the general welfare
Lugui, San Antonio, Mabilo I, Napaod, Benit, Bayan-Bayan, clause under the Administrative Code, which
Matanlang, Pag-Asa, Maot, and Calabasa. Petitioner stresses reads: The municipal council shall enact such
that the plebiscite should not have included the remaining ordinances and make such regulations, not
area of the mother unit of the Municipality of Labo, repugnant to law, as may be necessary to carry
Camarines Norte. In support of his stand, petitioner argues into effect and discharge the powers and duties
that where a local unit is to be segregated from a parent unit, conferred upon it by law and such as shall seem
only the voters of the unit to be segregated should be included necessary and proper to provide for the health
in the plebiscite. and safety, promote the prosperity, improve the
morals, peace, good order, comfort and
Issue: convenience of the municipality and the
Was the plebiscite conducted in the areas inhabitants thereof, and for the protection of
comprising the proposed Municipality of Tulay-Na-Lupa and property therein.
the remaining areas of the mother Municipality of Labo
valid? For an ordinance to be valid, it must not only be
within the corporate powers of the municipality
Held: to enact but must also be passed according to
Yes. the procedure prescribed by law.
When the law states that the plebiscite shall be
conducted "in the political units directly affected," it means These principles require that a municipal
that residents of the political entity who would be ordinance
economically dislocated by the separation of a portion thereof (1) must not contravene the Constitution or
have a right to vote in said plebiscite. Evidently, what is any statute
contemplated by the phase "political units directly affected," (2) must not be unfair or oppressive
is the plurality of political units which would participate in (3) must not be partial or discriminatory
the plebiscite. Logically, those to be included in such political (4) must not prohibit but may regulate trade
areas are the inhabitants of the 12 barangays of the proposed (5) must be general and consistent with
Municipality of Tulay-Na-Lupa as well as those living in the public policy, and
(6) must not be unreasonable. plates and the confiscation of driver's
Ordinance 13 meets these criteria. licenses for traffic violations in
Metropolitan Manila.
In spite of its fractured syntax, what is regulated
by the ordinance is the construction of ISSUE & HELD: WON Ordinance No. 11 is valid (NO)
warehouses wherein inflammable materials are
stored where such warehouses are located at a RATIO:
distance of 200 meters from a block of houses The problem before the Court is not the validity of
and not the construction per se of a warehouse. the delegation of legislative power. The question the
The purpose is to avoid the loss of life and SC must resolve is the validity of the exercise of
property in case of fire which is one of the such delegated power.
primordial obligation of the government. o A municipal ordinance, to be valid: 1) must
not contravene the Constitution or any
The objections interposed by the petitioner to statute; 2) must not be unfair or oppressive;
the validity of the ordinance have not been 3) must not be partial or discriminatory; 4)
substantiated. Its purpose is well within the must not prohibit but may regulate trade; 5)
objectives of sound government. No undue must not be unreasonable; and 6) must be
restraint is placed upon the petitioner or for general and consistent with public policy.
anybody to engage in trade but merely a PD 1605 does not allow either the removal of license
prohibition from storing inflammable products plates or the confiscation of driver's licenses for
in the warehouse because of the danger of fire traffic violations committed in Metropolitan Manila.
to the lives and properties of the people residing There is nothing in the decree authorizing the
in the vicinity. As far as public policy is Metropolitan Manila Commission, now the
concerned, there can be no better policy than Metropolitan Manila Authority, to impose such
what has been conceived by the municipal sanctions.
government. Local political subdivisions are able to legislate only
by virtue of a valid delegation of legislative power
from the national legislature (except only that the
Solicitor General v Metro Manila Authority power to create their own sources of revenue and to
Cruz, 1991 levy taxes is conferred by the Constitution itself).
They are mere agents vested with what is called the
FACTS: power of subordinate legislation. As delegates of the
In Metropolitan Traffic Command, West Traffic Congress, the local government unit cannot
District vs. Hon. Arsenio M. Gonong, the SC ruled contravene but must obey at all times the will of their
that (1) the confiscation of the license plates of principal. Here, the enactments in question, which
motor vehicles for traffic violations was not among are merely local in origin, cannot prevail against the
the sanctions that could be imposed by the Metro decree, which has the force and effect of a statute.
Manila Commission under PD 1605; and, that (2) The measures in question do not merely add to the
even the confiscation of driver's licenses for traffic requirement of PD 1605 but, worse, impose
violations was not directly prescribed by the decree sanctions the decree does not allow and in fact
nor was it allowed by the decree to be imposed by actually prohibits.
the Commission. There is no statutory authority for — and indeed
Several complaints were filed in the SC against the there is a statutory prohibition against — the
confiscation by police authorities of driver's licenses imposition of such penalties in the Metropolitan
and removal of license plates for alleged traffic Manila area. Hence, regardless of their merits, they
violations. These sanctions were not among those cannot be imposed by the challenged enactments by
that may be imposed under PD 1605. virtue only of the delegated legislative powers.
The Metropolitan Manila Authority issued
Ordinance No. 11, Series of 1991, authorizing itself NOTE: SC emphasized that the ruling in the Gonong case
"to detach the license plate/tow and impound that PD 1605 applies only to the Metropolitan Manila area. It
attended/ unattended/ abandoned motor vehicles is an exception to the general authority conferred by RA 413
illegally parked or obstructing the flow of traffic in on the Commissioner of Land Transportation to punish
Metro Manila." violations of traffic rules elsewhere in the country with the
o The Metropolitan Manila Authority sanction therein prescribed, including those here questioned.
defended the said ordinance on the ground
that it was adopted pursuant to the powers
conferred upon it by EO 392. There was no Magtajas v. Pryce Properties Corp.
conflict between the decision and the G.R. No. 111097, July 20, 1994
ordinance because the latter was meant to Cruz, J.
supplement and not supplant the latter.
o The Solicitor General expressed the view Facts:
that the ordinance was null and void PAGCOR decided to expand its operations to
because it represented an invalid exercise Cagayan de Oro City. To this end, it leased a portion of a
of a delegated legislative power. It violated building belonging to Pryce Properties Corporation, Inc.,
PD 1605 which does not permit, and so renovated and equipped the same, and prepared to inaugurate
impliedly prohibits, the removal of license its casino there during the Christmas season.
Casino gambling is authorized by P.D. 1869. This
Civic organizations angrily denounced the project. decree has the status of a statute that cannot be amended or
The religious elements echoed the objection and so did the nullified by a mere ordinance.
women's groups and the youth. Demonstrations were led by
the mayor and the city legislators. The media trumpeted the
protest, describing the casino as an affront to the welfare of Binay vs Domingo
the city. Date: September 11, 1991
The contention of the petitioners is that it is violative Petitioners: Jejomar Binay and Municipality of Makati
of the Sangguniang Panlungsod of Cagayan de Oro City Respondents: Eufemio Domingo and commission on
Ordinance No. 3353 prohibiting the use of buildings for the Audit
operation of a casino and Ordinance No. 3375-93 prohibiting
the operation of casinos. Ponente: Paras
On the other hand, the respondents invoke P.D. 1869
which created PAGCOR to help centralize and regulate all Facts:
games of chance, including casinos on land and sea within the On September 27, 1988, petitioner Municipality,
territorial jurisdiction of the Philippines. through its Council, approved Resolution No. 60 (A
The Court of Appeals ruled in favor of the resolution to confirm and/or ratify the ongoing burial
respondents. Hence, the petition for review. assistance program extending P500 to a bereaved family,
funds to be taken out of unappropriated available funds
Issue: existing in the municipal treasury.) Metro Manila
Whether or not the Ordinance No. 3353 and Ordinance No. Commission approved Resolution No. 60. Thereafter, the
3375-93 are valid municipal secretary certified a disbursement fired of
P400,000 for the implementation of the program.
Held: However, COA disapproved Resolution 60 and
No. Cagayan de Oro City, like other local political disallowed in audit the disbursement of funds. COA denied
subdivisions, is empowered to enact ordinances for the the petitioners’ reconsideration as Resolution 60 has no
purposes indicated in the Local Government Code. It is connection or relation between the objective sought to be
expressly vested with the police power under what is known attained and the alleged public safety, general welfare, etc of
as the General Welfare Clause now embodied in Section 16 the inhabitant of Makati. Also, the Resolution will only
as follows: benefit a few individuals. Public funds should only be used
for public purposes.
Sec. 16. General Welfare. — Every local
government unit shall exercise the Issue:
powers expressly granted, those WON Resolution No. 60, re-enacted under Resolution No.
necessarily implied therefrom, as well as 243, of the Municipality of Makati is a valid exercise of police
powers necessary, appropriate, or power under the general welfare clause\
incidental for its efficient and effective
governance, and those which are Held:
essential to the promotion of the general Yes
welfare. Within their respective territorial Ratio: The police power is a governmental
jurisdictions, local government units function, an inherent attribute of sovereignty, which was born
shall ensure and support, among other with civilized government. It is founded largely on the
things, the preservation and enrichment maxims, "Sic utere tuo et ahenum non laedas and "Salus
of culture, promote health and safety, populi est suprema lex Its fundamental purpose is securing
enhance the right of the people to a the general welfare, comfort and convenience of the people.
balanced ecology, encourage and support Police power is inherent in the state but not in
the development of appropriate and self- municipal corporations). Before a municipal corporation may
reliant scientific and technological exercise such power, there must be a valid delegation of such
capabilities, improve public morals, power by the legislature which is the repository of the
enhance economic prosperity and social inherent powers of the State. A valid delegation of police
justice, promote full employment among power may arise from express delegation, or be inferred from
their residents, maintain peace and order, the mere fact of the creation of the municipal corporation; and
and preserve the comfort and as a general rule, municipal corporations may exercise police
convenience of their inhabitants. powers within the fair intent and purpose of their creation
which are reasonably proper to give effect to the powers
There is a requirement that the ordinances should expressly granted, and statutes conferring powers on public
not contravene a statute. Municipal governments are only corporations have been construed as empowering them to do
agents of the national government. Local councils exercise the things essential to the enjoyment of life and desirable for
only delegated legislative powers conferred on them by the safety of the people.
Congress as the national lawmaking body. The delegate Municipal governments exercise this power under
cannot be superior to the principal or exercise powers higher the general welfare clause: pursuant thereto they are clothed
than those of the latter. It is a heresy to suggest that the local with authority to "enact such ordinances and issue such
government units can undo the acts of Congress, from which regulations as may be necessary to carry out and discharge
they have derived their power in the first place, and negate by the responsibilities conferred upon it by law, and such as shall
mere ordinance the mandate of the statute. be necessary and proper to provide for the health, safety,
comfort and convenience, maintain peace and order, improve
public morals, promote the prosperity and general welfare of SALVADOR VILLACORTA vs. GREGORIO
the municipality and the inhabitants thereof, and insure the BERNARDO
protection of property therein." And under Section 7 of BP
337, "every local government unit shall exercise the powers FACTS:
expressly granted, those necessarily implied therefrom, as Ordinance 22 entitled AN ORDINANCE
well as powers necessary and proper for governance such as REGULATING SUBDIVISION PLANS OVER PARCELS
to promote health and safety, enhance prosperity, improve OF LAND IN THE CITY OF DAGUPAN was enacted by the
morals, and maintain peace and order in the local government municipal board of Dagupan City. The said ordinance was
unit, and preserve the comfort and convenience of the imposing additional requirements to that of the national law
inhabitants therein." Act 496. Ordinance 22 was annulled by the Court of First
Police power is the power to prescribe regulations to Instance of Pangasinan and was affirmed by the Court of
promote the health, morals, peace, education, good order or Appeals whose decision reads as follows:
safety and general welfare of the people. It is the most Section 1 of said ordinance clearly conflicts with
essential, insistent, and illimitable of powers. In a sense it is Section 44 of Act 496, because the latter law does not require
the greatest and most powerful attribute of the government. subdivision plans to be submitted to the City Engineer before
The police power of a municipal corporation is the same is submitted for approval to and verification by the
broad, and has been said to be commensurate with, but not to General Land Registration Office or by the Director of Lands
exceed, the duty to provide for the real needs of the people in as provided for in Section 58 of said Act. Section 2 of the
their health, safety, comfort, and convenience as consistently same ordinance also contravenes the provisions of Section 44
as may be with private rights. It extends to all the great public of Act 496, the latter being silent on a service fee of PO.03
needs, and, in a broad sense includes all legislation and almost per square meter of every lot subject of such subdivision
every function of the municipal government. It covers a wide application; Section 3 of the ordinance in question also
scope of subjects, and, while it is especially occupied with conflicts with Section 44 of Act 496, because the latter law
whatever affects the peace, security, health, morals, and does not mention of a certification to be made by the City
general welfare of the community, it is not limited thereto, Engineer before the Register of Deeds allows registration of
but is broadened to deal with conditions which exists so as to the subdivision plan; and the last section of said ordinance
bring out of them the greatest welfare of the people by imposes a penalty for its violation, which Section 44 of Act
promoting public convenience or general prosperity, and to 496 does not impose. In other words, Ordinance 22 of the City
everything worthwhile for the preservation of comfort of the of Dagupan imposes upon a subdivision owner additional
inhabitants of the corporation. Thus, it is deemed inadvisable conditions.
to attempt to frame any definition which shall absolutely
indicate the limits of police power. ISSUE:
COA is not attuned to the changing of the times. Were the decisions of the CFI and CA to annul the
Public purpose is not unconstitutional merely because it said ordinance was correct?
incidentally benefits a limited number of persons. As
correctly pointed out by the Office of the Solicitor General, HELD:
"the drift is towards social welfare legislation geared towards Yes. To sustain the ordinance would be to open the
state policies to provide adequate social services, the floodgates to other ordinances amending and so violating
promotion of the general welfare social justice (Section 10, national laws in the guise of implementing them. Thus,
Ibid) as well as human dignity and respect for human rights. ordinances could be passed imposing additional requirements
The care for the poor is generally recognized as a public duty. for the issuance of marriage licenses, to prevent bigamy; the
The support for the poor has long been an accepted exercise registration of vehicles, to minimize carnaping; the execution
of police power in the promotion of the common good. of contracts, to forestall fraud; the validation of passports, to
There is no violation of the equal protection clause deter imposture; the exercise of freedom of speech, to reduce
in classifying paupers as subject of legislation. Paupers may disorder; and so on.
be reasonably classified. Different groups may receive This advice is especially addressed to the local
varying treatment. Precious to the hearts of our legislators, governments which exercise the police power only by virtue
down to our local councilors, is the welfare of the paupers. of a valid delegation from the national legislature under the
Thus, statutes have been passed giving rights and benefits to general welfare clause. In the instant case, Ordinance No. 22
the disabled, emancipating the tenant-farmer from the suffers from the additional defect of violating this authority
bondage of the soil, housing the urban poor, etc. for legislation in contravention of the national law by adding
Resolution No. 60, re-enacted under Resolution No. to its requirements.
243, of the Municipality of Makati is a paragon of the
continuing program of our government towards social justice.
The Burial Assistance Program is a relief of pauperism, Dela Cruz v Paras
though not complete. The loss of a member of a family is a G.R. No. L-42571-72 July 25, 1983
painful experience, and it is more painful for the poor to be Fernando, CJ:
financially burdened by such death. Resolution No. 60
vivifies the very words of the late President Ramon Facts:
Magsaysay 'those who have less in life, should have more in 1. Assailed was the validity of an ordinance which prohibit the
law." This decision, however must not be taken as a operation of night clubs. Petitioners contended that the
precedent, or as an official go-signal for municipal ordinance is invalid, tainted with nullity, the municipality
governments to embark on a philanthropic orgy of inordinate being devoid of power to prohibit a lawful business,
dole-outs for motives political or otherwise. occupation or calling. Petitioners at the same time alleging
that their rights to due process and equal protection of the
laws were violated as the licenses previously given to them the operation and continued existence of night clubs subject
was in effect withdrawn without judicial hearing. to appropriate regulations. In the meanwhile, to compel
petitioners to close their establishments, the necessary result
2. RA 938, as amended, was originally enacted on June 20, 1953. of an affirmance, would amount to no more than a temporary
It is entitled: "An Act Granting Municipal or City Boards and termination of their business.
Councils the Power to Regulate the Establishments,
Maintenance and Operation of Certain Places of Amusement 4. Herein what was involved is a measure not embraced within
within Their Respective Territorial Jurisdictions.' the regulatory power but an exercise of an assumed power to
prohibit.
The first section reads, "The municipal or city board or
council of each chartered city shall have the power to regulate
by ordinance the establishment, maintenance and operation CITY GOVERNMENT OF QUEZON CITY and CITY
of night clubs, cabarets, dancing schools, pavilions, cockpits, COUNCIL OF QUEZON CITY, petitioners,
bars, saloons, bowling alleys, billiard pools, and other similar vs.
places of amusement within its territorial jurisdiction: HON. JUDGE VICENTE G. ERICTA as Judge of the
On May 21, 1954, the first section was amended to include Court of First Instance of Rizal, Quezon City, Branch
not merely "the power to regulate, but likewise "Prohibit ... XVIII; HIMLAYANG PILIPINO, INC., respondents.
" The title, however, remained the same. It is worded exactly
as RA 938. FACTS:
Section 9 of Ordinance No. 6118, S-64 provides for the
3. As thus amended, if only the said portion of the Act was appropriation of 6% of memorial parks for charity burial of
considered, a municipal council may go as far as to prohibit the paupers. Himlayang Pilipino, Inc (HPI), did not
the operation of night clubs. The title was not in any way appropriate the 6% requirement. Seven years after, the
altered. It was not changed one bit. The exact wording was Quezon City council issued a resolution to stop any further
followed. The power granted remains that of regulation, selling and/or transaction of memorial park lots in Quezon
not prohibition. City where the owners thereof have failed to donate the
required 6% space.
4. Petitioners contended that RA 938 which prohibits the
operation of night clubs would give rise to a constitutional ISSUE:
question. The lower court upheld the constitutionality and Is Section 9 of the ordinance in question a valid exercise of
validity of Ordinance No. 84 and dismissed the cases. Hence the police power?
this petition for certiorari by way of appeal.
RULING:
ISSUE: Whether or not the ordinance is valid No. The ordinance is actually a taking without
compensation of a certain area from a private cemetery to
NO. It is unconstitutional. It undoubtly involves a measure benefit paupers who are charges of the municipal corporation.
not embraced within the regulatory power but an exercise of Instead of building or maintaining a public cemetery for this
an assumed power to prohibit. purpose, the city passes the burden to private cemeteries.
(Thus, even if it is an eminent domain, it would not have been
1. The Constitution mandates: "Every bill shall embrace only one the proper measure to promote general welfare in this case)
subject which shall be expressed in the title thereof. "Since Police power is usually exercised in the form of
there is no dispute as the title limits the power to regulating, mere regulation or restriction in the use of liberty or property
not prohibiting, it would result in the statute being invalid if, for the promotion of general health, morals, safety of the
as was done by the Municipality of Bocaue, the operation of people and more so, the general welfare. It does not involve
a night club was prohibited. There is a wide gap between the the taking or confiscation of property with the exception of a
exercise of a regulatory power "to provide for the health and few cases where there is a necessity to confiscate private
safety, promote the prosperity, and improve the morals, in the property in order to destroy it for the purpose of protecting
language of the Administrative Code, such competence the peace and order and of promoting the general welfare as
extending to all "the great public needs. for instance, the confiscation of an illegally possessed article,
such as opium and firearms.
2. In accordance with the well-settled principle of constitutional
construction that between two possible interpretations by one
of which it will be free from constitutional infirmity and by Ortigas & Co., Limited Partnership vs. Feati Bank and
the other tainted by such grave defect, the former is to be Trust Co.
preferred. A construction that would save rather than one that
would affix the seal of doom certainly commends itself. G.R. No. L-24670
94 SCRA 533
3. Under the Local Govt Code, it is clear that municipal December 14, 1979
corporations cannot prohibit the operation of night clubs.
They may be regulated, but not prevented from carrying on Facts:
their business. It would be, therefore, an exercise in futility if Plaintiff is engaged in real estate business,
the decision under review were sustained. All that petitioners developing and selling lots to the public, particularly the
would have to do is to apply once more for licenses to operate Highway Hills Subdivision along EDSA, Mandaluyong,
night clubs. A refusal to grant licenses, because no such Rizal.
businesses could legally open, would be subject to judicial
correction. That is to comply with the legislative will to allow
On March 4, 1952, plaintiff entered into separate intendment of the word “regulation” under the provision.
agreements of sale with Augusto Padilla y Angeles and An examination of Sec.12 of the same law reveals that the
Natividad Angeles over 2 parcels of land (Lots Nos. 5 and 6, implied power of a municipality should be “liberally
Block 31, of the Highway Hills Subdivision). On July 19, construed in its favor” and that “any fair and reasonable doubt
1962 the vendees transferred their rights and interests over as to the existence of the power should be interpreted in favor
the said lots to Emma Chavez. The plaintiff executed the of the local government and it shall be presumed to exist.” An
corresponding deeds of sale in favor of Emma Chavez upon exception to the general welfare powers delegated to
payment of the purchase price. Both the agreements and the municipalities is when the exercise of its powers will conflict
deeds of sale thereafter executed contained the stipulation with vested rights arising from contracts. The exception does
that the parcels of land subject of the deeds of sale “shall be not apply to the case at bar.
used by the Buyer exclusively for residential purposes”. The
restrictions were later annotated in the Transfer Certificates 2. While non-impairment of contacts is
of Titles covering the said lots issued in the name of Chavez. constitutionally guaranteed, the rule is not absolute since it
Eventually, defendant-appellee acquired Lots No. 5 and 6 has to be reconciled with the legitimate exercise of police
with the building restrictions also annotated in their power. Invariably described as the “most essential, insistent
corresponding TCTs. Lot No.5 was bought directly from and illimitable of powers” and the “greatest and most
Chavez “free from all liens and encumbrances” while Lot powerful attribute of government”, the exercise of police
No.6 was acquired through a “Deed of Exchange” from power may be judicially inquired into and corrected only if it
Republic Flour Mills. is capricious, whimsical, unjust or unreasonable, there having
Plaintiff claims that the restrictions were imposed as been a denial of due process or a violation of any other
part of its general building scheme designed for the applicable constitutional guarantee.
beautification and development of the Highway Hills Resolution No.27, S-1960 declaring the western part
Subdivision which forms part of its big landed estate where of EDSA from Shaw Boulevard to the Pasig River as an
commercial and industrial sites are also designated or industrial or commercial zone was passed by the Municipal
established. Council of Mandaluyong in the exercise of police power to
Defendant maintains that the area along the western safeguard/promote the health, safety, peace, good order and
part of EDSA from Shaw Boulevard to the Pasig River, has general welfare of the people in the locality. Judicial notice
been declared a commercial and industrial zone, per may be taken of the conditions prevailing in the area,
Resolution No.27 of the Municipal Council of Mandaluyong. especially where Lots Nos. 5 and 6 are located. EDSA
It alleges that plaintiff “completely sold and transferred to supports an endless stream of traffic and the resulting activity,
third persons all lots in said subdivision facing EDSA” and noise and pollution which are hardly conducive to the health,
the subject lots thereunder were acquired by it “only on June safety or welfare of the residents in its route. The
23, 1962 or more than 2 years after the area xxx had been Municipality of Mandaluyong was reasonably justified under
declared a commercial and industrial zone”. the circumstances in passing the subject resolution.
On or about May 5, 1963, defendant-appellee began Thus, the state, in order to promote the general
construction of a building devoted to banking purposes but welfare, may interfere with personal liberty, with property,
which it claims could also be used exclusively for residential and with business and occupations. Persons may be subjected
purposes. The following day, the plaintiff demanded in to all kinds of restraint and burdens, in order to secure the
writing that the construction of the commercial building be general comfort, health and prosperity of the state, and to this
stopped but the defendant refused to comply contending that fundamental aim of the Government, the rights of the
the construction was in accordance with the zoning individual are subordinated.
regulations.
Thus, applying the operative fact doctrine to the present case, Section 19. Eminent Domain. – A local government
the Cityhood Laws remain unconstitutional because they unit may, through its chief executive and acting
violate Section 10, Article X of the Constitution. However, pursuant to an ordinance, exercise the power of
the effects of the implementation of the Cityhood Laws prior eminent domain for public use, or purpose, or
to the declaration of their nullity, such as the payment of welfare for the benefit of the poor and the landless,
salaries and supplies by the “new cities” or their issuance of upon payment of just compensation, pursuant to the
licenses or execution of contracts, may be recognized as valid provisions of the Constitution and pertinent laws:
and effective. This does not mean that the Cityhood Laws are Provided however, That the power of eminent
valid for they remain void. Only the effects of the domain may not be exercised unless a valid and
implementation of these unconstitutional laws are left definite offer has been previously made to the
undisturbed as a matter of equity and fair play to innocent owner, and such offer was not accepted: Provided,
people who may have relied on the presumed validity of the further, That the local government unit may
Cityhood Laws prior to the Court’s declaration of their immediately take possession of the property upon
unconstitutionality. the filing of the expropriation proceedings and upon
making a deposit with the proper court of at least
fifteen percent (15%) of the fair market value of the
Spouses Yusay vs CA property based on the current tax declaration of the
property to be expropriated: Provided, finally, That,
FACTS: the amount to be paid for the expropriated property
The petitioners owned a parcel of land situated in Barangay shall be determined by the proper court, based on the
Mauway, Mandaluyong City. Half of their land they used as fair market value at the time of the taking of the
their residence, and the rest they rented out to nine other property.
families. Allegedly, the land was their only property and only
source of income. A resolution like Resolution No. 552 merely expresses the
sentiment of the Sangguniang Panglungsod is not sufficient
On October 2, 1997, the Sangguniang Panglungsod of for the purpose of initiating an expropriation proceeding.
Mandaluyong City adopted Resolution No. 552, Series of
1997, to authorize then City Mayor Benjamin S. Abalos, Sr. A municipal ordinance is different from a resolution. An
to take the necessary legal steps for the expropriation of the ordinance is a law, but a resolution is merely a declaration of
land of the petitioners for the purpose of developing it for low the sentiment or opinion of a lawmaking body on a specific
cost housing for the less privileged but deserving city matter. An ordinance possesses a general and permanent
inhabitants. The petitioners became alarmed, and filed a character, but a resolution is temporary in nature.
petition for certiorari and prohibition, praying for the
annulment of Resolution No. 552 due to its being Additionally, the two are enacted differently -- a third reading
unconstitutional, confiscatory, improper, and without force is necessary for an ordinance, but not for a resolution, unless
and effect. The City countered that Resolution No. 552 was a decided otherwise by a majority of all the Sanggunian
mere authorization given to the City Mayor to initiate the members. No rights can be conferred by and be inferred from
legal steps towards expropriation, which included making a a resolution, which is nothing but an embodiment of what the
definite offer to purchase the property of the petitioners; lawmaking body has to say in the light of attendant
hence, the suit of the petitioners was premature. circumstances. In simply expressing its sentiment or opinion
through the resolution, therefore, the Sangguniang
ISSUE: Panglungsod in no way abused its discretion, least of all
Whether or not the validity of Resolution No. 552 can be gravely, for its expression of sentiment or opinion was a
assailed before its Implementation? constitutionally protected right.
HELD:
No. The absence of an ordinance authorizing the same is Sta. Lucia Realty vs City of Pasig
equivalent to lack of cause of action. In view of the absence
of the proper expropriation ordinance authorizing and Facts:
providing for the expropriation, the petition for certiorari filed Pasig filed a complaint against Sta. Lucia for the collection of
in the RTC was dismissible for lack of cause of action. As of Real estate Taxes. The subject properties are alleged to be
then, it was premature for the petitioners to mount any within the boundaries of Cainta and STa. lucia has been
judicial challenge, for the power of eminent domain could be paying the taxes to Cainta like its predecessors-in-interest did
exercised by the City only through the filing of a verified although the TCTs of the subject properties indicate that the
complaint in the proper court. Before the City as the properties where in the locality of Pasig. Cainta has already
expropriating authority filed such verified complaint, no filed a petition for the settlement of land boundary dispute
expropriation proceeding could be said to exist. Until then, with Pasig before an RTC in Antipolo when the complaint by
the petitioners as the owners could not also be deprived of Pasig was filed. Said boundary dispute case is still pending
their property under the power of eminent domain. before the Antipolo RTC. the RTC which handled the tax case
ruled in favor of Pasig and ordered STa. Lucia to pay Pasig
real estate taxes on the properties and its improvements. It
held that the titles were conclusive as to where the properties
were located and that the pending case in antipolo does not d. RTC denied this. TCTs were conclusive
pose a prejudicial question to the case at bar since both are evidence as to the ownership and location. It
civil cases. ordered Sta lucia to pay P273349.17
representing unpaid real estate taxes and
The Supreme Court stated that the Municipality, before it can penalties among others
exercise its powers in a certain area, must show first that the
area is within its geographical boundaries. A certificate of i. Judgment was also rendered against Cainta
title is conclusive as to its ownership and location, this does and was ordered to refund to Sta. Lucia the
not preclude the filing of an action for the very purpose of improperly collected and received tax
attacking the statements therein. Antipolo RTC would be able payments amounting to P358,403.68
to best determine once and for all the precise metes and
bounds of both Pasig’s and Cainta’s respective territorial e. Sta lucia and Cainta filed their notices of
jurisdiction. And this would then ascertain as to which Appeal. Pasig on the other hand filed an MR
municipality can exercise its powers over the subject i. RTC granted the MR and modified its
properties. Although the general rule is that for there to be a decision to include the realty taxes due on
prejudicial question, one must be acriminal case while the the improvements of the subject lots. Sta
other is a civil case, the SC has relaxed the application of the Lucia now ordered to pay P5,627,757.07
rule and at one time allowed one civil case to be held in representing unpaid taxes and penalties on
abeyance while another civil case was pending that was the improvements
interrelated to it. For the meantime Sta. Lucia is asked to f. Sta. Lucia filed an amended notice of appeal to
deposit the taxes due in an escrow account with Land Bank. include the modified ruling
1. Sta. lucia realty is the registered owner of several 5. Pasig filed a motion for execution pending appeal.
parcels of land with TCT nos. 39112, 29110 and STa lucia and Cainta opposed this but RTC still
28457 all of which indicated that the lots were ordered the issuance of A writ of Execution against
located in Barrio Tatlong Kawayan, Municipality of Sta. Lucia
Pasig 6. Sta. Lucia filed a petition for Certiorari with the CA.
this was raffled to the first division which granted
a. 39112 was consolidated with TCT 518403 the petition and set aside and declared null and void
(another lot) which was situated in Barrio the order granting the motion for execution. That the
Tatlong Kawayan, Municipality of Cainta, boundary dispute presented a prejudicial question
province of Rizal. The lot was later partitioned which must be decided before Pasig can collect
into 3 which now bear the cainta address realty taxes over the subject properties
b. 39110 was divided into 2 lots
c. 38457 was not segregated but a commercial a. Pasig filed a petition for Certiorari before the
building was built on it SC but this was denied for being filed out of
time
2. The land registration court, upon Pasig’s petition,
ordered the amendment of the TCTs with respect to 7. Meanwhile the appeal filed by STa. lucia and Cainta
TCT no. 39112 to read that they were located in was raffled to the Seventh division of CA which
Pasig. ruled that the appealed decision is affirmed with the
modification of deleting the attorney’s fees
3. Cainta filed a petition for the settlement of land (P50,000)
boundary dispute with Pasig before the RTC Br 74
of Antipolo. Case is still pending a. There was no proper legal basis to suspend the
proceedings. There can be no prejudicial
4. Pasig filed a complaint against Sta. Lucia for the question since both are civil cases. That the
collection of Real estate taxes including penalties elements of litis pendentia and forum shopping
and interests on the lots covered by the subject were not met.
properties b. MRs were denied
c. STa .Lucia and Cainta filed separate petitions
a. STA. Lucia: it had been religiously paying to for Certiorar ibut in this case STa. lucia is the
cainta just like what its predecessors-in-interest subject of the decision.
did by virtue of the demands and assessments
made by Cainta. ISSUES
b. Cainta was allowed to file its own Answer-in- 1. Whether RTC and the CA were correct in deciding
intervention when it moved to intervene on the Pasig’s complaint without waiting for the resolution
ground that its interest would be greatly of the boundary dispute case between Pasig and
affected by the outcome of the case. That it had Cainta.
been collecting taxes on the properties even 2. Whether Sta. Lucia should continue paying its real
before Sta. Lucia acquired them. property taxes to Cainta (or should it now pay its
c. STa. lucia and Cainta moved for the suspension taxes to Pasig)
of the proceedings claiming tha the pending
petition before the Antipolo RTC (fact #3) HELD:
presented a prejudicial question to the
resolution of the case
1. The resolution of the boundary dispute would determine confusion between litigants and courts. It bears
which local government unit is entitled to collect realty taxes stressing that whether or not the RTC would suspend
from Sta. Lucia the proceedings in the SECOND CASE is submitted
Sec. 5 and Sec. 57 of PD 464 or the Real Property to its sound discretion.
Tax Code and Sectons 201 and 233 of the RA 7160 Pasig RTC should have held in abeyance the
or the 1991 Local Government Code (see annex) proceedings in the civil case before it in view of the
tells us that while a local government unit is fact that the outcome of the boundary dispute case
authorized under several laws to collect real estate before the Antipolo RTC will undeniable affect both
tax on properties falling under its territorial Pasig’s and Cainta’s rights. Had the territorial
jurisdiction, it is imperative to first show that these boundaries of the contending local government units
properties are unquestionably within its herein been delineated with accuracy, then there
geographical boundaries would be no controversy at all.
Mariano Jr. v. COMELEC: The importance of
drawing with precise strokes the territorial 2. In the meantime, Sta. Lucia is directed to deposit the
boundaries of a local unit of government cannot be succeeding real property taxes due on the subject properties,
overemphasized. The boundaries must be clear for in an escrow account with the Land Bank of the Philippines
they define the limits of the territorial jurisdiction of
a local government unit. It can legitimately exercise Petition GRANTED. CA resolution SET ASIDE. Pasig and
powers of government only within the limits of its Cainta are both directed to await the judgment before the
territorial jurisdiction. Beyond these limits, its acts Antipolo RTC to determine which LGU is entitled to collect
are ultra vires. the real property taxes.
The local government unit entitled to collect real
property taxes from Sta. Lucia must undoubtedly Related Laws:
show that the subject properties are situated within Presidential Decree No. 464 or the “Real Property Tax Code,”
its territorial jurisdiction, otherwise, it would be
acting beyond the powers vested to it by law. Sec. 5. Appraisal of Real Property. — All real
While the SC agrees that a certificate of title is property, whether taxable or exempt, shall be
conclusive as to its ownership and location, this does appraised at the current and fair market value
not preclude the filing of an action for the very prevailing in the locality where the property is
purpose of attacking the statements therein situated.
While certificates are indefeasible, unassailable and
binding against the whole world, they do not create Sec. 57. Collection of tax to be the responsibility of
or vest title. They merely confirm or record title treasurers. — The collection of the real property tax
already existing and vested and cannot be used to and all penalties accruing thereto, and the
protect a usurper from the true owner, nor can they enforcement of the remedies provided for in this
be used as a shield for the commission of fraud; Code or any applicable laws, shall be the
neither do they permit one to enrich himself at the responsibility of the treasurer of the province, city or
expense of other. municipality where the property is situated.
Although the TCTs state Pasig as the locality of the
subject properties, both Sta. lucia and Cainta aver Republic Act No. 7160, also known as the 1991 the Local
that the metes and bounds as described in the TCTs Government Code
are actually within Cainta’s boundaries.
The Antipolo RTC would be able to best determine Section 201. Appraisal of Real Property. – All real
once and for all the precise metes and bounds of both property, whether taxable or exempt, shall be
Pasig’s and Cainta’s respective territorial appraised at the current and fair market value
jurisdiction. This would then ascertain the extent prevailing in the locality where the property is
and reach of each local government’s authority, a situated. The Department of Finance shall
prerequisite in the proper exercise of their powers promulgate the necessary rules and regulations for
including the power of taxation. the classification, appraisal, and assessment of real
property pursuant to the provisions of this Code.
Although the general rule is that there is no
prejudicial question when both cases are civil, the
Section 233. Rates of Levy. – A province or city or
court held in Vidad v. RTC of Negros oriental Br.
a municipality within the Metropolitan Manila Area
42 that in interest of good order, the SC can very
shall fix a uniform rate of basic real property tax
well suspend the action on one case pending the final
outcome of another closely interrelated or linked to applicable to their respective localities as follows: x
x x.
the first.
In any case, under the Rules of Court, a trial court
Rule 135
may control its own proceedings according to its
SEC. 5. Inherent powers of courts. – Every court shall have
sound discretion (Rule 135 Sec. 5(g))
power:
The power to stay proceedings is incidental to the xxxx
power inherent in every court to control the
(g) To amend and control its process and orders so as to make
disposition of the cases on its dockets, considering
them conformable to law and justice.
its time and effort, that of counsel and the litigants.
But if proceedings must be stayed, it must be done
in order to avoid multiplicity of suits and prevent
vexatious litigations, conflicting judgments,
New Sun Valley Homeowners’ Association, Inc. vs. reserved for public use; ownership of which is
Sangguniang Barangay of Barangay Sun Valley, automatically vested in the Republic of the
Parañaque City Philippines although it is still registered in the name
[G.R. No. 156686, July 27, 2011] of the developer/owner, its donation to the
government is a mere formality. The power or
authority to close or open the said streets is vested in
Facts: the local government units and not on homeowner’s
associations, pursuant to Section 21 of the local
The Sangguniang Barangay of Barangay Sun Valley (the Government Code. Hence there is no right
“BSV Sangguniang Barangay”) issued BSV Resolution, whatsoever on the part of Plaintiff NSVHA entitled
entitled “Directing the New Sun Valley Homeowners to the protection of the law.
Association to Open Rosemallow and Aster Streets to
Vehicular and Pedestrian Traffic.” After considering the arguments of the parties, the case was
thereby dismissed, and the writ of preliminary injunction was
The New Sun Valley Homeowners Association, Inc. lifted. Thereafter, NSVHAI filed a Motion for
(NSVHAI), represented by its President, Marita Cortez, filed Reconsideration, but the same was denied by the RTC. The
a Petition for a “Writ of Preliminary Injunction/Permanent petitioners raised the matter to the CA, but the latter affirmed
Injunction with prayer for issuance of TRO with the Regional the decision of the RTC to dismiss the case. The CA likewise
Trial Court (RTC) of Parañaque City. It was claimed that the denied the petitioner’s motion for reconsideration. Hence,
implementation of BSV Resolution would “cause grave this petition.
injustice and irreparable injury.”
Issue:
NSVHAI went on to state that a deterioration of the peace and
order condition inside the subdivision would be inevitable; Whether or not the Barangay has the power to pass such
the traffic condition would worsen and criminal elements resolution to open the roads in the said subdivision?
would take advantage of the opening to public use of the
roads in question. Ruling:
The RTC issued a Temporary Restraining Order, but on Yes. In the case, the petitioner dared to question the
November 3, 1998, the RTC issued another Order stating that, barangay’s ownership over the subject roads when it should
by agreement of the parties, the status quo shall be have been the one to adduce evidence to support its broad
maintained, and that the case was set for hearing on the prayer claims of exclusivity and privacy. Petitioner did not submit
for the issuance of a writ of preliminary injunction on an iota of proof to support its acts of ownership. Despite such
November 20, 1998. lack of authority, the homeowners moved for the closing the
subject roads that belonged to the then Municipality of
NSVHAI submitted an Amended Petition, wherein it claimed Parañaque and were already being used by the public,
that the BSV Sangguniang Barangay had no jurisdiction over limiting their use exclusively to the subdivision’s
the opening of Rosemallow and Aster Streets (the "subject homeowners, and even collecting fees from delivery vans that
roads"). NSVHAI likewise attached to its Amended Petition would pass through the gates that they themselves had built.
its Position Paper, which set forth its objection to the opening
of the subject roads for public use and argued that a Barangay On the other hand, the local government unit’s power to close
Resolution cannot validly cause the opening of the subject and open roads within its jurisdiction is clear under the Local
roads because under the law, an ordinance is required to effect Government Code, Section 21 of which provides:
such an act.
Section 21. Closure and Opening of Roads. – (a) A
The RTC heard the case, wherein it granted the petition a writ local government unit may, pursuant to an
of preliminary injunction prohibiting the Sangguniang ordinance, permanently or temporarily close or open
Barangay from implementing Resolution. In opposition, the any local road, alley, park, or square falling within
BSV Sangguniang Barangay filed a Motion for its jurisdiction: Provided, however, That in case of
Reconsideration and to Dissolve Preliminary Injunction (with permanent closure, such ordinance must be
Memorandum of Authorities). approved by at least two-thirds (2/3) of all the
members of the Sanggunian, and when necessary, an
Despite the petitioner moving to expunge the motion for adequate substitute for the public facility that is
reconsideration filed by the respondents, the RTC subject to closure is provided.
subsequently dismissed the case in an Order, stating as
follows: The court quoted the ruling of the CA as follows:
However, it is undisputed that when petitioner filed his COC Closely related with the limited focus of the present petition
during the 2007 elections, he and his family were then staying is the condition, under Section 5, Rule 64 of the Rules of
at his ancestral home in Barangay (Brgy.) Sico, San Juan, Court, that findings of fact of the COMELEC, supported by
Batangas. Respondent Florencio Librea (private respondent) substantial evidence, shall be final and non-reviewable.
filed a "Petition to Deny Due Course and to
Cancel Certificate of Candidacy and to Disqualify a In light of our limited authority to review findings of fact, we
Candidate for Possessing Some Grounds for Disqualification. do not ordinarily review in a certiorari case the COMELEC's
appreciation and evaluation of evidence. Any misstep by the
Allegedly, petitioner falsely declared under oath in his COC COMELEC in this regard generally involves an error of
that he had already been a resident of Lipa City for two years judgment, not of jurisdiction.
and eight months prior to the scheduled 10 May 2010 local
elections. In exceptional cases, however, when the COMELEC's action
on the appreciation and evaluation of evidence oversteps the
limits of its discretion to the point of being grossly
unreasonable, the Court is not only obliged, but has the Ruling:
constitutional duty to intervene. When grave abuse of R.A. No. 6055 granted tax exemptions to educational
discretion is present, resulting errors arising from the grave institutions like petitioner which converted to non-stock, non-
abuse mutate from error of judgment to one of jurisdiction. profit educational foundations.
Before us, petitioner has alleged and shown the COMELEC’s On February 19, 1977, P.D 1096 was issued adopting the
use of wrong or irrelevant considerations in deciding the issue National Building Code of the Philippines. The said Code
of whether petitioner made a material misrepresentation of requires every person, firm or corporation, including any
his residency qualification in his COC as to order its agency or instrumentality of the government to obtain a
cancellation. building permit for any construction, alteration or repair of
any building or structure.
Hence, in resolving the issue of whether the COMELEC
gravely abused its discretion in ruling that petitioner had not Exempted from the payment of building permit fees are:
sufficiently shown that he had resided in Lipa City for at least
one year prior to the May 2010 elections, we examine the Public buildings and Traditional indigenous family
evidence adduced by the parties and the COMELEC’s dwellings.
appreciation thereof.
Not being expressly included in the enumeration of structures
Basically, the allegations of the Petitioner Sabili are to which the building permit fees do not apply, petitioner’s
tantamount to allege that the COMELEC, in denying his COC claim for exemption rests solely on its interpretation of the
committed grave abuse of discretion. The court here defined term “other charges imposed by the National Government” in
what grave abuse of discretion is; and by that chose and ruled the tax exemption clause of R.A. No. 6055.
to review the acts of COMELEC under its jurisdiction.
A “charge” is broadly defined as the “price of, or rate for,
Eventually he was able to prove that he was a resident of Lipa something,” while the word “fee” pertains to a “charge fixed
and the SC granted his petition. by law for services of public officers or for use of a privilege
under control of government.” As used in the LGC, charges
refers to pecuniary liability, as rents or fees against persons
Angeles University Foundation vs. City of Angeles or property, while fee means a charge fixed by law or
ordinance for the regulation or inspection of a business or
Facts: activity.
Petitioner is an educational institution and was
converted into a non-stock, non-profit education Note that the “other charges” mentioned in Sec. 8 of R.A. No.
foundation under the provisions of R.A. 6055 6055 is qualified by the words “imposed by the Government
Sometime in August 2005, petitioner filed with the on all property used exclusively for the educational activities
Office of the City Building Official an application of the foundation.”
for a building permit for the construction of an 11-
storey building Building permit fees are not impositions on property but on
Said office issued a Building Permit Fee Assessment the activity subject of government regulation. While it may
in the amount of P126,839.20 and P238,741.64 as be argued that the fees relate to particular properties, i.e.,
Locational Clearance Fee. buildings and structures, they are actually imposed on certain
Petitioner claimed that it is exempt from the activities the owner may conduct either to build such
payment of the building permit and locational structures or to repair, alter, renovate or demolish the same.
clearance fees, citing legal opinions rendered by the
DOJ. That a building permit fee is a regulatory imposition.
Petitioner also reminded the respondents that they
Thus, ancillary permits such as electrical permit, sanitary
have previously issued building permits
permit and zoning clearance must also be secured and the
acknowledging such exemption from payment of
corresponding fees paid before a building permit may be
building permit fees on the construction of
issued.
petitioner’s 4-storey AUF Information Technology
Center building
Since building permit fees are not charges on property, they
Petitioner stresses that the tax exemption granted to
are not impositions from which petitioner is exempt.
educational stock corporations which have
converted into non-profit foundations was
As to petitioner’s argument that the building permit fees
broadened to include any other charges imposed by
collected by respondents are in reality taxes because the
the Government as one of the incentives for such
primary purpose is to raise revenues for the local government
conversion.
unit, the same does not hold water.
Issues:
A charge of a fixed sum which bears no relation at all to the
1. Whether petitioner is exempt from the payment of
cost of inspection and regulation may be held to be a tax
building permit and related fees imposed under the
rather than an exercise of the police power. In this case, the
National Building Code; and
Secretary of Public Works and Highways who is mandated to
2. Whether the parcel of land owned by petitioner
prescribe and fix the amount of fees and other charges that
which has been assessed for real property tax is
the Building Official shall collect in connection with the
likewise exempt.
performance of regulatory functions, has promulgated and After PRA’s approval, on April 27, 2010, respondent
issued the Implementing Rules and Regulations which Department of Environment and Natural Resources-
provide for the bases of assessment of such fees Environmental Management Bureau-Region VI (DENR-
EMB RVI) issued to the Province Environmental Compliance
Petitioner failed to demonstrate that the bases of assessment Certificate-R6-1003-096-7100 (the questioned ECC) for
were arbitrarily determined or unrelated to the activity being Phase 1 of the Reclamation Project to the extent of 2.64
regulated. Neither has petitioner adduced evidence to show hectares to be done along the Caticlan side beside the existing
that the rates of building permit fees imposed and collected jetty port.
by the respondents were unreasonable or in excess of the cost
of regulation and inspection. On May 17, 2010, the Province finally entered into a MOA
with PRA which stated that the land use development of the
In distinguishing tax and regulation as a form of police power, reclamation project shall be for commercial, recreational and
the determining factor is the purpose of the implemented institutional and other applicable uses. It was at this point that
measure. If the purpose is primarily to raise revenue, then it the Province deemed it necessary to conduct a series of public
will be deemed a tax even though the measure results in some consultation meetings.
form of regulation. On the other hand, if the purpose is
primarily to regulate, then it is deemed a regulation and an On the other hand, the Sangguniang Barangay of Caticlan, the
exercise of the police power of the state, even though Sangguniang Bayan of the Municipality of Malay and
incidentally, revenue is generated. petitioner Boracay Foundation, Inc. (BFI), an organization
composed of some 160 businessmen and residents in
Concededly, in the case of building permit fees imposed by Boracay, expressed their strong opposition to the reclamation
the National Government under the National Building Code, project on environmental, socio-economic and legal grounds.
revenue is incidentally generated for the benefit of local
government units. Despite the opposition, the Province merely noted their
objections and issued a notice to the contractor on December
Section 208: the Building Official is hereby authorized to 1, 2010 to commence with the construction of the project.
retain not more than twenty percent of his collection for the Thus, on June 1, 2011, BFI filed with the Supreme Court the
operating expenses of his office. instant Petition for Environmental Protection Order/Issuance
of the Writ of Continuing Mandamus. Thereafter, the Court
The remaining eighty percent shall be deposited with the issued a Temporary Environmental Protection Order (TEPO)
provincial, city or municipal treasurer and shall accrue to the and ordered the respondents to file their respective comments
General Fund of the province, city or municipality concerned. to the petition.
Now, on petitioner’s claim that it is exempted from the The Petition was premised on the following grounds, among
payment of real property tax assessed against its real property others:
presently occupied by informal settlers. a) the Province failed to obtain the favorable
endorsement of the LGU concerned;
Petitioner failed to discharge its burden to prove that its real b) the Province failed to conduct the required
property is actually, directly and exclusively used for consultation procedures as required by the
educational purposes. While there is no allegation or proof Local Government Code (LGC).
that petitioner leases the land to its present occupants, still
there is no compliance with the constitutional and statutory The Province responded by claiming that its compliance with
requirement that said real property is actually, directly and the requirements of DENR-EMB RVI and PRA that led to the
exclusively used for educational purposes. The respondents approval of the reclamation project by the said government
correctly assessed the land for real property taxes for the agencies, as well as the recent enactments of the Barangay
taxable period during which the land is not being devoted Council of Caticlan and the Sangguniang Bayan of the
solely to petitioner’s educational activities. Municipality of Malay favorably endorsing the said project,
had “categorically addressed all the issues” raised by the BFI
in its Petition. It also considered the Petition to be premature
Boracay Foundation, Inc. vs. Province of Aklan for lack of cause of action due to the failure of BFI to fully
exhaust the available administrative remedies even before
FACTS: seeking judicial relief.
Claiming that tourist arrivals to Boracay would reach 1
million in the future, respondent Province of Aklan planned ISSUES:
to expand the port facilities at Barangay Caticlan, 1. WON the petition is premature because petitioner
Municipality of Malay. Thus, on May 7, 2009, the failed to exhaust administrative remedies before
Sangguniang Panlalawigan of Aklan Province issued a filing this case?
resolution, authorizing Governor Carlito Marquez to file an 2. WON there was proper, timely, and sufficient public
application with respondent Philippine Reclamation consultation for the project?
Authority (PRA) to reclaim the 2.64 hectares of foreshore
area in Caticlan. In the same year, the Province deliberated RULING:
on the possible expansion from its original proposed On the issue of prematurity due to failure to exhaust
reclamation area of 2.64 hectares to forty (40) hectares in administrative remedies
order to maximize the utilization of its resources.
The Court held that the petition is not premature for failing to
exhaust administrative remedies and to observe the hierarchy Here, the Court classified the reclamation project as a
of courts as claimed by the respondents. national project since it affects the environmental and
ecological balance of local communities. In one ruling, the
The Court reiterated their ruling in Pagara v. Court of Appeals Court noted that such national projects mentioned in Section
where they clarified that the rule regarding exhaustion of 27 of the LGC include those that may cause pollution and
administrative remedies is not a hard and fast rule. It is not bring about climate change, among others, such as the
applicable where, among others, there are circumstances reclamation project in this case.
indicating the urgency of judicial intervention such as in the
instant case. The rule may also be disregarded when it does Also, DENR DAO 2003-30 provides that project proponents
not provide a plain, speedy and adequate remedy or where the should “initiate public consultations early in order to ensure
protestant has no other recourse. that environmentally relevant concerns of stakeholders are
taken into consideration in the EIA study and the formulation
Meanwhile, the new Rules of Procedure for Environmental of the management plan”.
Cases, A.M. No. 09-6-8-SC, provides a relief for petitioner Thus, the law requires the Province, being the delegate of the
under the writ of continuing mandamus, which is a special PRA’s power to reclaim land in this case, to conduct prior
civil action that may be availed of “to compel the consultations and prior approval. However, the information
performance of an act specifically enjoined by law” and dissemination conducted months after the ECC had already
which provides for the issuance of a TEPO “as an auxiliary been issued was insufficient to comply with the requirements
remedy prior to the issuance of the writ itself.” under the LGC.
The writ of continuing mandamus allows an aggrieved party Furthermore, the lack of prior public consultation and
to file a verified petition in the proper court when any approval is not corrected by the subsequent endorsement of
government agency or instrumentality or officer thereof the reclamation project by the Sangguniang Barangay of
“unlawfully neglects the performance of an act which the law Caticlan and the Sangguniang Bayan in 2012, which were
specifically enjoins as a duty xxx in connection with the both undoubtedly achieved at the urging and insistence of the
enforcement or violation of an environmental law rule or Province.
regulation or a right therein, xxx and there is no other plain,
speedy and adequate remedy in the ordinary course of law.”
Such proper court may be the Regional Trial Court exercising City of Manila vs. Alegar Corporation
jurisdiction over the territory where the actionable neglect or
omission occurred, the Court of Appeals, or the Supreme FACTS:
Court. This case is about the issues that a local government unit has
to cope with when expropriating private property for
Here, the Court found that BFI had no other plain, speedy, or socialized housing. The City Council of Manila passed
adequate remedy in the ordinary course of law to determine Ordinance 8012 that authorized the City Mayor to acquire
the questions of unique national and local importance raised certain lots belonging to respondents Alegar Corporation,
that pertain to laws and rules for environmental protection. Terocel Realty Corporation, and Filomena Vda. De Legarda,
for use in the socialized housing project of petitioner City of
Moreover, the writ of continuing mandamus “permits the Manila. The City offered to buy the lots at P1,500.00 per
court to retain jurisdiction after judgment in order to ensure square meter (sq m) but the owners rejected this as too low
the successful implementation of the reliefs mandated under with the result that the City filed a complaint for expropriation
the court’s decision” and, in order to do this, “the court may against them before the Regional Trial Court (RTC) of
compel the submission of compliance reports from the Manila.
respondent government agencies as well as avail of other
means to monitor compliance with its decision.” The RTC dismissed the complaint on the ground that the City
did not comply with Section 9 of Republic Act (R.A.) 7279
On the issue of whether or not there was proper, timely, (Urban Development Housing Act) which set the order of
and sufficient public consultation for the project priority in the acquisition of properties for socialized housing.
Private properties ranked last in the order of priorities for such
The Court found that there was no proper, timely, and acquisition and the City failed to show that no other properties
sufficient public consultation for the project. were available for the project. The City also failed to comply
with Section 10 which authorized expropriation only when
The Local Government Code (LGC) establishes the duties of resort to other modes (such as community mortgage, land
national government agencies in the maintenance of swapping, and negotiated purchase) had been exhausted. On
ecological balance and requires them to secure prior public appeal, the Court of Appeals affirmed the RTC decision.
consultations and approval of local government units. In Hence, this petition.
Province of Rizal v. Executive Secretary, the Court
emphasized that, under the Local Government Code, two ISSUE:
requisites must be met before a national project that affects 1. Whether or not the CA erred in affirming the RTC’s
the environmental and ecological balance of local ruling that the City failed to comply with the
communities can be implemented: (1) prior consultation with requirements of Sections 9 and 10 of R.A. 7279 in
the affected local communities, and (2) prior approval of the trying to acquire the subject lots by expropriation;
project by the appropriate sanggunian. The absence of either 2. Whether or not the CA erred in failing to set aside
of such mandatory requirements will render the project’s the RTC’s ruling that the City failed to establish the
implementation as illegal.
existence of genuine necessity in expropriating the property owner rejects the offer but hints for a better
subject lots for public use or purpose; and price, the government should renegotiate by calling
3. Whether or not the CA erred in failing to rule that the property owner to a conference.
the owners’ withdrawal of its P1.5 million deposit
constituted implied consent to the expropriation of The government must exhaust all reasonable efforts to obtain
their lots. by agreement the land it desires. Its failure to comply will
warrant the dismissal of the complaint. Article 35 of the Rules
HELD: and Regulations Implementing the Local Government Code
1. The CA correctly ruled that the City failed to show that it provides for this procedure. Thus:
complied with the requirements of Section 9 of R.A. 7279
which lays down the order of priority in the acquisition Article 35. Offer to Buy and Contract of Sale —
through expropriation of lands for socialized housing. This
section provides: (a) The offer to buy private property for public use
or purpose shall be in writing. It shall specify the
Section 9. Priorities in the acquisition of Land. — property sought to be acquired, the reasons for its
acquisition, and the price offered. x x x x (c) If the
Lands for socialized housing shall be acquired in the owner or owners are willing to sell their property but
following order: (a) Those owned by the at a price higher than that offered to them, the local
Government or any of its subdivisions, chief executive shall call them to a conference for
instrumentalities, or agencies, including the purpose of reaching an agreement on the selling
government-owned or controlled corporations and price. The chairman of the appropriation or finance
their subsidiaries; (b) Alienable lands of the public committee of the sanggunian, or in his absence, any
domain; (c) Unregistered or abandoned and idle member of the sanggunian duly chosen as its
lands; (d) Those within the declared Areas for representative, shall participate in the conference.
Priority Development, Zonal Improvement Program When an agreement is reached by the parties, a
sites, and Slum Improvement and Resettlement contract of sale shall be drawn and executed. Here,
Program sites which have not yet been acquired; (e) the City of Manila initially offered P1,500.00 per sq
Bagong Lipunan Improvement of Sites and Services m to the owners for their lots. But after the latter
or BLISS sites which have not yet been acquired; rejected the offer, claiming that the offered price was
and (f) Privately-owned lands. Where on-site even lower than their current zonal value, the City
development is found more practicable and did not bother to renegotiate or improve its offer.
advantageous to the beneficiaries, the priorities The intent of the law is for the State or the local
mentioned in this section shall not apply. The local government to make a reasonable offer in good faith,
government units shall give budgetary priority to on- not merely a pro forma offer to acquire the property.
site development of government lands. (Emphasis
supplied) The City of course argues that it did not The Court cannot treat the requirements of Sections 9 and 10
have to observe the order of priority provided above of R.A. 7279 lightly. It held in Estate or Heirs of the Late Ex-
in acquiring lots for socialized housing since it Justice Jose B.L. Reyes v. City ofManila, that these
found on-site development to be more practicable requirements are strict limitations on the local government’s
and advantageous to the beneficiaries who were exercise of the power of eminent domain.
these lots’ long-time occupants. But the problem
remains. The City did not adduce evidence that this They are the only safeguards of property owners against the
was so. exercise of that power. The burden is on the local government
to prove that it satisfied the requirements mentioned or that
Besides, Section 10 of R.A. 7279 also prefers the acquisition they do not apply in the particular case.
of private property by “negotiated sale” over the filing of an
expropriation suit. It provides that such suit may be resorted 2. Admittedly, the City alleged in its amended complaint that
to only when the other modes of acquisitions have been it wanted to acquire the subject lots in connection with its
exhausted. Thus: land-for-the-landless program and that this was in accord
Section 10. Modes of Land Acquisition.— with its Ordinance 8012. But the City misses the point. The
owners directly challenged the validity of the objective of its
The modes of acquiring land for purposes of this Act action. They alleged that the taking in this particular case of
shall include, among others, community mortgage, their lots is not for public use or purpose since its action
land swapping, land assembly or consolidation, land would benefit only a few. Whether this is the case or not, the
banking, donation to the Government, joint-venture owners’ answer tendered a factual issue that called for
agreement, negotiated purchase, and expropriation: evidence on the City’s part to prove the affirmative of its
Provided, however, That expropriation shall be allegations. As already stated, the City submitted the issue for
resorted to only when other modes of acquisition the RTC’s resolution without presenting evidence.
have been exhausted; Provided, further, That where
expropriation is resorted to, parcels of land owned 3. The City insists that it made a deposit of P1.5 million with
by small property owners shall be exempted for the RTC by way of advance payment on the lots it sought to
purposes of this Act. x x x (Emphasis supplied) expropriate. By withdrawing this deposit, respondents may be
There is a sensible reason for the above. Litigation assumed to have given their consent to the expropriation. But
is costly and protracted. The government should also the advance deposit required under Section 19 of the Local
lead in avoiding litigations and overburdening its Government Code constitutes an advance payment only in the
courts. Indeed, the Court has held that when the event the expropriation prospers. Such deposit also has a dual
purpose: as pre-payment if the expropriation succeeds and as the national government which delegates to local
indemnity for damages if it is dismissed. This advance governments the power to tax.
payment, a prerequisite for the issuance of a writ of
possession, should not be confused with payment of just Issue:
compensation for the taking of property even if it could be a Whether or not Philippine Reclamation Authority (PRA) is
factor in eventually determining just compensation. an incorporated instrumentality of the national government
and is, therefore, exempt from payment of real property tax
If the proceedings fail, the money could be used to indemnify under sections 234(a) and 133(o) of Republic Act 7160?
the owner for damages.
Held:
Here, therefore, the owners’ withdrawal of the deposit that Yes it is a Government Instrumentality.
the City made does not amount to a waiver of the defenses
they raised against the expropriation. With the dismissal of In the case at bench, PRA is not a GOCC because it is neither
the complaint, the amount or a portion of it could be awarded a stock nor a non-stock corporation. It cannot be considered
to the owners as indemnity to cover the expenses they as a stock corporation because although it has a capital stock
incurred in defending their right. divided into no par value shares as provided in Section 74 of
P.D. No. 1084, it is not authorized to distribute dividends,
surplus allotments or profits to stockholders. PRA is a
Republic of the Philippines vs. City of Parañaque government instrumentality vested with corporate powers
and performing an essential public service pursuant to
Facts: Section 2(10) of the Introductory Provisions of the
This is a petition for review on certiorari assailing the Order Administrative Code. Being an incorporated government
of the Regional Trial Court, Branch 195, Paranaque City instrumentality, it is exempt from payment of real property
(RTC), which ruled that petitioner Philippine Reclamation tax.
Authority (PRA) is a government-owned and controlled
corporation (GOCC), a taxable entity, and, therefore, not Many government instrumentalities are vested with corporate
exempt from payment of real property taxes. powers but they do not become stock or non-stock
corporations, which is a necessary condition before an agency
The Public Estates Authority (PEA) is a government or instrumentality is deemed a GOCC. The fundamental
corporation created by virtue of P.D. No. 1084 toprovide a provision above authorizes Congress to create GOCCs
coordinated, economical and efficient reclamation of lands, through special charters on two conditions: 1) the GOCC
and the administration andoperation of lands belonging to, must be established for the common good; and 2) the GOCC
managed and/or operated by, the government with the object must meet the test of economic viability. In this case, PRA
of maximizing their utilization and hastening their may have passed the first condition of common good but
development consistent with public interest. failed the second one - economic viability. Undoubtedly, the
On October 26, 2004, then President Gloria Macapagal- purpose behind the creation of PRA was not for economic or
Arroyo issued E.O. No. 380 transforming PEA into PRA, commercial activities.
which shall perform all the powers and functions of the PEA
relating to reclamation activities. Clearly, respondent has no valid or legal basis in taxing the
subject reclaimed lands managed by PRA. On the other hand,
By virtue of its mandate, PRA reclaimed several portions of Section 234(a) of the LGC, in relation to its Section 133(o),
the foreshore and offshore areas of Manila Bay,including exempts PRA from paying realty taxes and protects it from
those located in Parañaque City. Parañaque City Treasurer the taxing powers of local government units.
issued Warrants of Levy on PRA’s reclaimed properties
based on the assessment for delinquent real property for tax Section 234(a) of the Local Government Code states that real
years 2001 and 2002. property owned by the Republic of the Philippines (the
Republic) is exempt from real property tax unless the
PRA claimed that it is not a GOCC under the Administrative beneficial use thereof has been granted to a taxable person.
Code, nor is it a GOCC under Section 16, Article XII of the
1987Constitution because it is not required to meet the test of Section 133 of the Local Government Code states that "unless
economic viability. otherwise provided" in the Code, local governments cannot
tax national government instrumentalities.
It is a government instrumentality vested with corporate
powers and performing an essential public service. It insists In this case, there is no proof that PRA granted the beneficial
that it may not be classified as a non-stock corporation use of the subject reclaimed lands to a taxable entity. There is
because it has no members and it is not organized for no showing on record either that PRA leased the subject
charitable, religious, educational, professional, cultural, reclaimed properties to a private taxable entity.
recreational, fraternal, literary, scientific, social, civil service,
or similar purposes, like trade, industry, agriculture and like WHEREFORE, the petition is GRANTED. The Order of the
chambers as provided in Section 88 of the Corporation Code. Regional Trial Court, Branch 195, Parañaque City, is
Thus, PRA insists that, as an incorporated instrumentality of REVERSED and SET ASIDE.
the National Government, it is exempt from payment of real
property tax except when the beneficial use of the real
property is granted to a taxable person. PRA claims that based Pimentel vs. Ochoa
on Section 133(o) of the LGC, local governments cannot tax
FACTS:
In 2007, the DSWD embarked on a poverty reduction strategy Sec 14 Art 10 1987 Constitution). To fully secure to the LGUs
with the poorest of the poor as target beneficiaries.Dubbed the genuine and meaningful autonomy that would develop
"Ahon Pamilyang Pilipino," it was pre-pilot tested in the them into self-reliant communities, Section 17 LGC vested
municipalities of Sibagat and Esperanza in Agusan del Sur; upon the LGUs the duties and functions pertaining to the
the municipalities of Lopez Jaena and Bonifacio in Misamis delivery of basic services and facilities. However, par (c) of
Occidental, the Caraga Region; and the cities of Pasay and Sec 17 provides a categorical exception of cases involving
Caloocan upon the release of the amount of P50 Million nationally-funded projects, facilities, programs and services.
Pesos under a Special Allotment Release Order (SARO)
issued by the Department of Budget and Management. Autonomy is either decentralization of administration or
On July 16, 2008, the DSWD issued AO 16, series of 2008, decentralization of power.
setting the implementing guidelines for the project renamed
"Pantawid Pamilyang Pilipino Program" (4Ps), also referred Decentralization of administration - when the
to as CCTP, which provides cash grants to extreme poor central government delegates administrative powers
households to allow the members of the families to meet to political subdivisions in order to broaden the base
certain human development goals.” Eligible households of government power and make local governments
selected from priority target areas are granted health and ‘more responsive and accountable’ and ‘ensure their
education benefits for a total annual subsidy of P15k. fullest development as self-reliant communities.’
The President exercises ‘general supervision’ over
AO 16 also institutionalized a coordinated inter-agency them, but only to ensure that local affairs are
network among DepEd, DOH, DILG, the National Anti- administered according to law.’ He has no control
Poverty Commission (NAPC) and LGUs. DSWD as lead over their acts in the sense that he can substitute their
implementing agency “oversees and coordinates the judgments with his own.
implementation, monitoring, and evaluation of the program”
while the LGU is responsible for the availability of health and Decentralization of power - involves an abdication
education supply, and providing technical assistance for the of political power in favor of LGUs declared to be
Program implementation, among others. DSWD executed autonomous. The autonomous government is free to
MOAs with each participating LGUs to outline the obligation chart its own destiny and shape its future with
of both parties during the 5-year implementation period. minimum intervention from central authorities. This
Congress then provided funding for the project as follows: amounts to ‘self-immolation,’ since the autonomous
P298K in 2008, P5 Billion in 2009, P10 Billion in 2010, and government becomes accountable not to the central
P21 Billion in 2011. authorities but to its constituency.
Jaban Sr – parked his car in a paying parking area but his car HELD
was immobilized after 10 mins; car impounded for 3 days, WHEREFORE, the Court DENIES the petitions for review
had to pay 4.2k fine without court hearing or due process of on certiorari for their lack of merit; AFFIRMS the decision
reason why the car was immobilized promulgated on June 16, 2003 by the Court of Appeals; and
ORDERS the petitioners to pay the costs of suit.
Happened again on Nov 20 while car was parked properly in
a parking lot in front of the San Nicolas Pasil market, had to RATIO
pay 1,5k fine Tests for a valid ordinance (formal: 1 and 2; substantive: 3)
May 19 – Jaban Jr - secluded place where there was no sign 1. must be within the corporate powers of the local
prohibiting parking, paid 1.4k government unit to enact
2. must be passed according to the procedure prescribed by
August 11, 1997, Valentino Legaspi – sued in RTC Cebu to law,
demand the delivery of personal property, declaration of 3. must also conform to the following substantive
nullity of the Traffic Code of Cebu City, and damages. requirements
(1) must not contravene the Constitution or any
July 29 1997 – left his car outside the gate of his house, statute;
occupying part of the road and the sidewalk to make way for (2) must not be unfair or oppressive;
the vehicle of the anay exterminator who had asked to be (3) must not be partial or discriminatory;
allowed to unload his materials and equipment with the (4) must not prohibit but may regulate trade;
assurance that the unloading would not take too long; that (5) must be general and consistent with public
while waiting for the anay exterminator to finish unloading, policy; and
the phone in his office inside the house had rung, impelling (6) must not be unreasonable
him to go into the house to answer the call; that after a short
while, his son-in-law informed him that unknown persons had Compliance of Ordinance No. 1664 with the formal
clamped the front wheel of his car; City Attorney of Cebu said requirements
officers only upheld the law by clamping the vehicles of the Was the enactment of Ordinance No. 1664 within
plaintiffs the corporate powers of the LGU of the City of
Cebu? Yes
Jan 22 1999 – RTC declared Ordinance No. 1664 as null and No issues were raised against the formalities of the
void – for violating due process - In both procedural and enactment of the ordinance, so compliance is
substantive due process, a hearing is always a pre-requisite; presumed
depriving its owner of the use thereof at the sole Congress enacted the LGC as the implementing law
determination of any traffic enforcer or regular PNP for the delegation to the various LGUs of the State’s
personnel or Cebu City Traffic Law Enforcement Personnel. great powers, namely: the police power, the power
of eminent domain, and the power of taxation, but
with parameters and limitations
Police power cannot be exercised by any group or include illegally parked vehicles or whatever else
body of individuals not possessing legislative obstructed the streets, alleys and sidewalks
power. The National Legislature, however, may
delegate this power to the President and Petitioners say that they were not accorded the opportunity to
administrative boards as well as the lawmaking protest the clamping, towing, and impounding of the vehicles,
bodies of municipal corporations or local or even to be heard and to explain their side prior to the
government units. immobilization of their vehicles; and that the ordinance was
oppressive and arbitrary for that reason.
LGC Section 458. Powers, Duties, Functions and
Composition. – (a) The sangguniang panlungsod, as the Any vehicle owner may protest such action of a traffic
legislative body of the city, shall enact ordinances, approve enforcer or PNP personnel enforcing the ordinance. – the
resolutions and appropriate funds for the general welfare of ordinance permits the release of a vehicle upon a protest
the city and its inhabitants pursuant to Section 16 of this Code directly made to the Chairman of CITOM; or to the Chairman
and in the proper exercise of the corporate powers of the city of the Committee on Police, Fire and Penology of the City of
as provided for under Section 22 of this Code, and shall: Cebu; or to Asst. City Prosecutor Felipe Belciña, even
without payment of the fine
(5) Approve ordinances which shall ensure the efficient and
effective delivery of the basic services and facilities as None of the petitioners resorted to this - did not diminish the
provided for under Section 17 of this Code, and in addition to fairness and reasonableness of the escape clause written in the
said services and facilities, shall: ordinance.
(v) Regulate the use of streets, avenues, alleys, The immobilization of a vehicle by clamping pursuant to the
sidewalks, bridges, parks and other public places ordinance was not necessary if the driver or vehicle owner
and approve the construction, improvement repair was around at the time of the apprehension. In that situation,
and maintenance of the same; establish bus and the enforcer would simply either require the driver to move
vehicle stops and terminals or regulate the use of the the vehicle or issue a traffic citation
same by privately-owned vehicles which serve the
public; regulate garages and operation of The towing away of the immobilized vehicle was not
conveyances for hire; designate stands to be equivalent to a summary impounding, but designed to prevent
occupied by public vehicles when not in use; the immobilized vehicle from obstructing traffic
regulate the putting up of signs, signposts, awnings
and awning posts on the streets; and provide for the Did Ordinance No. 1664 meet the requirements of procedural
lighting, cleaning and sprinkling of streets and due process? NO
public places;
Notice and hearing are the essential requirements of
(vi) Regulate traffic on all streets and bridges; procedural due process. Yet, there are many instances under
prohibit encroachments or obstacles thereon and, our laws in which the absence of one or both of such
when necessary in the interest of public welfare, requirements is not necessarily a denial or deprivation of due
authorize the removal of encroachments and illegal process.
constructions in public places; Example: cancellation of the passport of a person being
sought for the commission of a crime, preventive suspension
The LGUs would be in the best position to craft their traffic of a civil servant facing administrative charges, the restraint
codes because of their familiarity with the conditions peculiar of properties to answer for tax delinquencies, the padlocking
to their communities. of restaurants found to be unsanitary or of theaters showing
obscene movies, and the abatement of nuisance per se, arrest
Compliance of Ordinance No. 1664with the substantive of a person in flagrante delicto
requirements
The first substantive requirement for a valid Same with / applies to the clamping of the tires of the vehicles
ordinance is the adherence to the constitutional of the Petitioners
guaranty of due process of law.
Two kinds of due process As already said, the immobilization of illegally parked
1. procedural due process - procedures that the government vehicles by clamping the tires was necessary because the
must follow before it deprives a person of life, liberty, or transgressors were not around at the time of apprehension.
property notices and hearings
2. substantive due process - adequate reason for taking away Lack of a hearing does not constitute a breach of procedural
a person’s life, liberty, or property. In other words, due process, for giving the transgressors the chance to reverse
substantive due process looks to whether there is sufficient the apprehensions through a timely protest
justification for the government’s action.
Ordinance No. 1664 met the substantive tests of The clamping of the illegally parked vehicles was a fair and
validity and constitutionality by its conformity with reasonable way to enforce the ordinance against its
the limitations under the Constitution and the transgressors; otherwise, the transgressors would evade
statutes, as well as with the requirements of fairness liability by simply driving away.
and reason, and its consistency with public policy.
terms encroachment and obstacles used in Section Legaspi refers to a different ruling in the Astillero case – but
458 of the LGC, supra, were broad enough to SC says this is an irrelevant ruling - it should be the RTC that
had improperly acted for so deciding the Astillero case
despite the appeals in these cases being already pending in the installing, repair and construction of all gas mains, electric,
CA. telegraph and telephone wires, conduits, meters and other
apparatus, and provide for the correction, condemnation or
The same RTC should have exercised a “becoming modesty” removal of the same when found to be dangerous, defective
on the issue of the constitutionality of the same ordinance that or otherwise hazardous to the welfare of the inhabitant.
the Constitution required the majority vote of the Members of
the Court sitting en banc to determine. It was also envisioned to address the foreseen "environmental
depredation" to be brought about by these "special projects"
to the Municipality. Pursuant to these objectives, the
Smart Communications, Inc. vs. Municipality of Malvar Municipality imposed fees on various structures, which
included telecommunications towers.
FACTS
Smart constructed a telecommunications tower within the The fees are not imposed to regulate the administrative,
territorial jurisdiction of the Municipality. The construction technical, financial, or marketing operations of
of the tower was for the purpose of receiving and transmitting telecommunications entities, such as Smart’s; rather, to
cellular communications within the covered area. regulate the installation and maintenance of physical
structures – Smart’s cell sites or telecommunications tower.
On 30 July 2003, the Municipality passed Ordinance No. 18,
series of 2003, entitled "An Ordinance Regulating the ISSUE
Establishment of Special Projects." 1. WON the fees are taxes.
2. WON CTA should have take cognizance of the case.
On 24 August 2004, Smart received from the Permit and 3. WON the fees are unjust and unreasonable.
Licensing Division of the Office of the Mayor of the HELD
Municipality an assessment letter with a schedule of payment 1. NO. The fees are NOT taxes.
for the total amount of P389,950.00 for Smart’s 2. NO. CTA correctly refused to take cognizance of the case.
telecommunications tower. Due to the alleged arrears in the 3. NO. The fees are not unjust and unreasonable.
payment of the assessment, the Municipality also caused the
posting of a closure notice on the telecommunications tower. Dispositive: WHEREFORE, the Court DENIES the petition.
Held:
Umali vs. Commission on Elections Entire province of Nueva Ecija
Facts: Ratio:
On July 11, 2011, the Sangguniang Panglungsod of The upward conversion of a component city, in this case
Cabanatuan City passed Resolution No. 183-2011, requesting Cabanatuan City, into an HUC will come at a steep price. It
the President to declare the conversion of Cabanatuan City can be gleaned from the above-cited rule that the province
from a component city of the province of Nueva Ecija into a will inevitably suffer a corresponding decrease in territory
highly urbanized city (HUC). Acceding to the request, the brought about by Cabanatuan City’s gain of independence.
President issued Presidential Proclamation No. 418, Series of With the city’s newfound autonomy, it will be free from the
2012, proclaiming the City of Cabanatuan as an HUC subject oversight powers of the province, which, in effect, reduces
to “ratification in a plebiscite by the qualified voters therein, the territorial jurisdiction of the latter. What once formed part
as provided for in Section 453 of the Local Government Code of Nueva Ecija will no longer be subject to supervision by the
of 1991.” province. In more concrete terms, Nueva Ecija stands to lose
282.75 sq. km. of its territorial jurisdiction with Cabanatuan
Respondent COMELEC, acting on the proclamation, issued City’s severance from its mother province. This is equivalent
the assailed Minute Resolution No. 12-0797 which reads: to carving out almost 5% of Nueva Ecija’s 5,751.3 sq. km.
area. This sufficiently satisfies the requirement that the
WHEREFORE, the Commission RESOLVED, as it alteration be “substantial.”
hereby RESOLVES, that for purposes of the
plebiscite for the conversion of Cabanatuan City
from component city to highly-urbanized city, only Social Justice Society (SJS) Officers vs. Lim
those registered residents of Cabanatuan City should
participate in the said plebiscite. FACTS
On 12 October 2001, a Memorandum of Agreement
The COMELEC based this resolution on Sec. 453 of the was entered into by oil companies (Chevron, Petron
Local Government Code of 1991 (LGC), citing conversion and Shell) and Department of Energy for the
cases involving Puerto Princesa City in Palawan, Tacloban creation of a Master Plan to address and minimize
City in Southern Leyte, and Lapu-Lapu City in Cebu, where the potential risks and hazards posed by the
proximity of communities, business and offices to
Pandacan oil terminals without affecting security Declaration of Human Rights; and Convention
and reliability of supply and distribution of on the Rights of the Child
petroleum products. o The title of Ordinance No. 8187 purports to
On 20 November 2001, the Sangguniang amend or repeal Ordinance No. 8119 when it
Panlungsod (SP) enacted Ordinance No. 8027 which actually intends to repeal Ordinance No. 8027
reclassifies the land use of Pandacan, Sta. Ana, and On the other hand, the respondents Mayor Lim, et.al.
its adjoining areas from Industrial II to Commercial and the intervenors oil companies contend that:
I. o The petitioners have no legal standing to sue
Owners and operators of the businesses affected by whether as citizens, taxpayers or legislators.
the reclassification were given six (6) months from They further failed to show that they have
the date of effectivity to stop the operation of their suffered any injury or threat of injury as a result
businesses. It was later extended until 30 April 2003. of the act complained of
On 4 December 2002, a petition for mandamus was o The petition should be dismissed outright for
filed before the Supreme Court (SC) to enforce failure to properly apply the related provisions
Ordinance No. 8027. of the Constitution, the Rules of Court, and/or
Unknown to the SC, the oil companies filed before the Rules of Procedure for Environmental Cases
the Regional Trial Court of Manila an action to relative to the appropriate remedy available
annul Ordinance No. 8027 with application for writs o The principle of the hierarchy of courts is
of preliminary prohibitory injunction and violated because the SC only exercises
preliminary mandatory injunction. The same was appellate jurisdiction over cases involving the
issued in favor of Chevron and Shell. Petron, on the constitutionality or validity of an ordinance
other hand, obtained a status quo on 4 August 2004. under Section 5, Article VIII of the 1987
On 16 June 2006, Mayor Jose Atienza, Jr. approved Constitution
Ordinance No. 8119 entitled “An Ordinance o It is the function of the SP to enact zoning
Adopting the Manila Comprehensive Land Use Plan ordinance without prior referral to the Manila
and Zoning Regulations of 2006 and Providing for Zoning Board of Adjustment and Appeals; thus,
the Administration, Enforcement and Amendment it may repeal all or part of zoning ordinance
thereto”. This designates Pandacan oil depot area as sought to be modified
a Planned Unit Development/Overlay Zone. o There is a valid exercise of police power
On 7 March 2007, the SC granted the petition for On 28 August 2012, the SP enacted Ordinance No.
mandamus and directed Mayor Atienza to 8283 which essentially amended the assailed
immediately enforce Ordinance No. 8027. It Ordinance to exclude the area where petroleum
declared that the objective of the ordinance is to refineries and oil depots are located from the
protect the residents of manila from the catastrophic Industrial Zone. The same was vetoed by Mayor
devastation that will surely occur in case of a Lim.
terrorist attack on the Pandacan Terminals.
The oil companies filed a Motion for ISSUES
Reconsideration (MR) on the 7 March 2007 1. WON there are violations of environmental laws
Decision. The SC later resolved that Ordinance No. 2. WON the principle of hierarchy of courts is violated
8027 is constitutional and that it was not impliedly 3. WON the petitioners have legal standing to sue
repealed by Ordinance No. 8119 as there is no 4. WON Ordinance No. 8187 is unconstitutional in relation
irreconcilable conflict between them. to the Pandacan Terminals
SC later on denied with finality the second MR of
the oil companies. RULING
1. None. The scope of the Rules of Procedure for
On 14 May 2009, during the incumbency of Mayor
Environmental Cases is embodied in Section 2, Part I, Rule I
Alfredo Lim (Mayor Lim), the SP enacted
thereof. It states that the Rules shall govern the procedure in
Ordinance No. 8187. The Industrial Zone under
civil, criminal and special civil actions before the MeTCs,
Ordinance No. 8119 was limited to Light Industrial
Zone, Ordinance No. 8187 appended to the list a MTCCs, MTCs and MCTCs, and the RTCs involving the
enforcement or violations of environmental and other related
Medium and a Heavy Industrial Zone where
laws, rules and regulations such as but not limited to: R.A.
petroleum refineries and oil depots are expressly
No. 6969, Toxic Substances and Hazardous Waste Act; R.A.
allowed.
No. 8749, Clean Air Act; Provisions in C.A. No. 141; and
Petitioners Social Justice Society Officers, Mayor
other existing laws that relate to the conservation,
Atienza, et.al. filed a petition for certiorari under
development, preservation, protection and utilization of the
Rule 65 assailing the validity of Ordinance No.
environment and natural resources.
8187. Their contentions are as follows:
o It is an invalid exercise of police power because
Notably, the aforesaid Rules are limited in scope. While,
it does not promote the general welfare of the
indeed, there are allegations of violations of environmental
people
laws in the petitions, these only serve as collateral attacks that
o It is violative of Section 15 and 16, Article II of
would support the other position of the petitioners – the
the 1987 Constitution as well as health and
protection of the right to life, security and safety.
environment related municipal laws and
international conventions and treaties, such as:
2. No. The SC held that it is true that the petitions should have
Clean Air Act; Environment Code; Toxic and
been filed with the RTC, it having concurrent jurisdiction
Hazardous Wastes Law; Civil Code provisions
on nuisance and human relations; Universal
with the SC over a special civil action for prohibition, and their midst, the residents of Manila are not safe. It therefore
original jurisdiction over petitions for declaratory relief. becomes necessary to remove these terminals to dissipate the
threat.”
However, the petitions at bar are of transcendental
importance warranting a relaxation of the doctrine of The same best interest of the public guides the present
hierarchy of courts. This is in accordance with the well- decision. The Pandacan oil depot remains a terrorist target
entrenched principle that rules of procedure are not inflexible even if the contents have been lessened. In the absence of any
tools designed to hinder or delay, but to facilitate and promote convincing reason to persuade the Court that the life, security
the administration of justice. Their strict and rigid and safety of the inhabitants of Manila are no longer put at
application, which would result in technicalities that tend to risk by the presence of the oil depots, the SC holds that the
frustrate, rather than promote substantial justice, must always Ordinance No. 8187 in relation to the Pandacan Terminals is
be eschewed. (Jaworski v. PAGCOR, 464 Phil. 375) invalid and unconstitutional.
3. Yes. The SC referred to their Decision dated 7 March 2007 For, given that the threat sought to be prevented may strike at
which ruled that the petitioners in that case have a legal right one point or another, no matter how remote it is as perceived
to seek the enforcement of Ordinance No. 8027 because the by one or some, the SC cannot allow the right to life be
subject of the petition concerns a public right, and they, as dependent on the unlikelihood of an event. Statistics and
residents of Manila, have a direct interest in the theories of probability have no place in situations where the
implementation of the ordinances of the city. very life of not just an individual but of residents of big
neighbourhoods is at stake.
No different are herein petitioners who seek to prohibit the
enforcement of the assailed ordinance, and who deal with the DISPOSITIVE PORTION
same subject matter that concerns a public right. 1. Ordinance No. 8187 is declared unconstitutional and
invalid with respect to the continued stay of the Pandacan Oil
In like manner, the preservation of the life, security and safety Terminals.
of the people is indisputably a right of utmost importance to 2. The incumbent mayor of the City of Manila is ordered to
the public. Certainly, the petitioners, as residents of Manila, cease and desist from enforcing Ordinance No. 8187 and to
have the required personal interest to seek relief to protect oversee the relocation and transfer of the oil terminals out of
such right. the Pandacan area
3. The oil companies shall, within a non-extendible period of
4. Yes. In striking down the contrary provisions of the forty-five (45) days, submit to the RTC Manila, Branch 39 an
assailed Ordinance relative to the continued stay of the oil updated comprehensive plan and relocation schedule, which
depots, the SC followed the same line of reasoning used in its relocation shall be completed not later than six (6) months
7 March 2007 decision, to wit: from the date the required document is submitted.
RULING Facts:
1. YES. A person intending to run for public office must not
only possess the required qualifications for the position for On 26 December 1992, the Sangguniang Bayan of the
which he or she intends to run. The candidate must also Municipality of Pasig enacted Ordinance No. 25 which, under
possess none of the grounds for disqualification under the its Article 3, Section 32, imposed a franchise tax on all
law. The oath of allegiance and the sworn and personal business venture operations carried out through a franchise
renunciation of foreign citizenship are separate requirements, within the municipality, as follows:
the latter being an additional requirement for qualification to
run for public office. With petitioner's failure to execute a Section 32. Imposition of Tax. - Any provision of
personal and sworn renunciation of her American citizenship, laws or grant of exemption to the contrary
petitioner was a dual citizen at the time she filed her notwithstanding, any person, corporation,
Certificate of Candidacy. Under Section 40 of the Local partnership or association enjoying a franchise and
Government Code, she was disqualified to run for Councilor doing business in the Municipality of Pasig, shall
in the Fourth District of Manila during the 2013 National and pay a franchise tax at the rate of fifty percent (50%)
Local Elections. of one percent (1%) of its gross receipts derived
from the operation of the business in Pasig during
Elections are more than a numbers game. Hence, in the preceding calendar year.
Maquiling: The ballot cannot override the constitutional and
statutory requirements for qualifications and disqualifications By virtue of Republic Act (R.A.) No. 7829, which took effect
of candidates. When the law requires certain qualifications to on 25 January 1995, the Municipality of Pasig was converted
be possessed or that certain disqualifications be not possessed into a highly urbanized city to be known as the City of Pasig.
by persons desiring to serve as elective public officials, those
qualifications must be met before one even becomes a On 24 August 2001, the Treasurer’s Office of the City
candidate. When a person who is not qualified is voted for Government of Pasig informed the Manila Electric Company
and eventually garners the highest number of votes, even the (MERALCO), a grantee of a legislative franchise, that it is
will of the electorate expressed through the ballot cannot cure liable to pay taxes for the period 1996 to 1999, pursuant to
the defect in the qualifications of the candidate. To rule Municipal Ordinance No. 25. The city, thereafter, on two
otherwise is to trample upon and rent asunder the very law separate occasions, demanded payment of the said tax in the
that sets forth the qualifications and disqualifications of amount of ₱435,332, 196.00, exclusive of penalties.
candidates.
On 8 February 2002, MERALCO protested the validity of the to levy franchise tax. The enactment of an ordinance is
demand "claiming that the same be withdrawn and cancelled indispensable for it is the legal basis of the imposition and
for the following reasons: (1) Ordinance No. 25 was declared collection of taxes upon covered taxpayers. Without the
void ab initio by the Department of Justice (DOJ) for being ordinance, there is nothing to enforce by way of assessment
in contravention of law, which resolution was reiterated in and collection.
another case that questioned the validity of the franchise tax,
etc.; (2) The Regional Trial Court of Pasig City (RTC) It is not disputed that at the time the ordinance in question
ordered the Municipality of Pasig, now City of Pasig, to was enacted in 1992, the local government of Pasig, then a
refund MERALCO the amount the latter paid as franchise tax municipality, had no authority to levy franchise tax. Being
because the former lacked legal foundation in collecting the void, it cannot be given any legal effect. An assessment and
same, as municipalities are not empowered by law to impose collection pursuant to the said ordinance is, perforce, legally
and collect franchise tax pursuant to Section 142 of the LGC; infirm.
(3) The CA affirmed the RTC decision; and (4) The petition
for certiorari filed by the then Municipality of Pasig before Consequently, the CA was correct when it declared that the
the Supreme Court, assailing the decision of the CA that demand of the City of Pasig upon MERALCO for the
sustained the RTC, was likewise dismissed and the motion payment of the disputed tax was devoid of legal basis. It bears
for reconsideration of the Municipality of Pasig was denied emphasizing that the DOJ and the RTC of Pasig City had
with finality. previously declared Section 32 of Municipal Ordinance No.
25 as void ab initio. Even the City of Pasig, it seems, does not
In view of the inaction by the Treasurer's Office, MERALCO contest the invalidity of said ordinance.
instituted an action before the RTC for the annulment of the
said demand with prayer for a temporary restraining order and The cityhood law of Pasig did not cure the defect of the
a writ of preliminary injunction. The RTC ruled in favor of questioned ordinance. A void ordinance, or provision thereof,
the City of Pasig. is what it is - a nullity that produces no legal effect. It cannot
be enforced; and no right could spring forth from it. The
cityhood of Pasig notwithstanding, it has no right to collect
Issue: franchise tax under the assailed ordinance.
Whether or not the City of Pasig had no valid basis for its The doctrinal rule on the matter is that the conversion of the
imposition of franchise tax for the period 1996 to 1999? municipality into a city does not remove the original infirmity
of the subject ordinance. Such doctrine, evoked in Arabay and
Ruling: SMC, is squarely relevant in the case at bar. In these two
separate cases, the sales taxes were paid by the petitioners
Yes. The power to impose franchise tax belongs to the pursuant to ordinances enacted prior to the conversion of the
province by virtue of some provisions of the LGC which respondents into cities, or at which time the latter were
states: without authority to levy the said taxes. Finding the municipal
ordinances to be void, the Court declared the payments of
Section 137. Franchise Tax. - Notwithstanding any taxes under the ordinances to be without basis even if
exemption granted by any law or other special law, subsequently the respondents became cities. Fittingly, the
the province may impose a tax on businesses Court ordered the refund of the said taxes to the petitioners.
enjoying a franchise, at the rate not exceeding fifty
percent (50%) of one percent (1%) of the gross As we see it, the cited law does not lend any help to the City
annual receipts for the preceding calendar year of Pasig's cause. It is crystal clear from the said law that what
based on the incoming receipt, or realized, within its shall continue to be in force after the conversion of Pasig into
territorial jurisdiction. a city are the municipal ordinances existing as of the time of
the approval of R.A. No. 7829. The provision contemplates
Section 142. Scope of Taxing Powers. - Except as ordinances that are valid and legal from their inception; that
otherwise provided in this Code, municipalities may upon the approval of R.A. No. 7829, their effectivity and
levy taxes, fees, and charges not otherwise levied by enforcement shall continue. To 'continue' means (1) to be
provinces. steadfast or constant in a course or activity; (2) to keep going:
maintain a course, direction, or progress; or (3) to remain in
Section 151. Scope of Taxing Powers. - Except as a place or condition. It presupposes something already
otherwise provided in this Code, the city, may levy existing.
the taxes, fees, and charges which the province or
municipality may impose: Provided, however, That A void ordinance cannot legally exist, it cannot have binding
the taxes, fees and charges levied and collected by force and effect. Such is Section 32 of Municipal Ordinance
highly urbanized and independent component cities No. 25 and, being so, is outside the comprehension of Section
shall accrue to them and distributed in accordance 45 of R.A. No. 7829
with the provisions of this Code.
We are not in full accord with the explanation given by the
The LGC further provides that the power to impose a tax, fee, City of Pasig - that Section 45 of R.A. No. 7829 intended to
or charge or to generate revenue shall be exercised by the prevent the City of Pasig from becoming paralyzed in
Sanggunian of the local government unit concerned through delivering basic services. We can concede that Section 45 of
an appropriate ordinance. This simply means that the local R.A. No. 7829 assures the City of Pasig continued collection
government unit cannot solely rely on the statutory provision of taxes under ordinances passed prior to its conversion. What
(LGC) granting specific taxing powers, such as the authority the petitioner fails to realize is that Section 32, Municipal
Ordinance No. 25 is not the singular source of its income or
funds necessary for the performance of its essential functions.
The argument of the City of Pasig is at best flimsy and
insubstantial. The records, it should be noted, bear no
evidence to demonstrate the resulting paralysis claimed by
the City of Pasig. An unsupported allegation it is, no better
than a mere conjecture and speculation.
The petition was denied for lack of merit, and the Decision of
the Court of Appeals in is affirmed.