023 UNITED BF HOMES v.

CITY MAYOR OF PARANAQUE (Rosales) Municipality of Parañaque Pursuant to the Local Government Code of 1991
February 7, 2007 | Carpio, J. | Restriction of Use of Property and Other Pertinent Laws." Sections 11.5 and 11.6 of Municipal Ordinance
No. 97-08, reclassified El Grande and Aguirre Avenues in BF Homes
PETITIONER: UNITED BF HOMEOWNERS’ ASSOCIATIONS, INC., Parañaque from residential to commercial areas.
ROMEO T. VILLAMEJOR, RAUL S. LANUEVO, ROBERTO ARNALDO, 3. The United BF Homeowners’ Associations, Inc. (UBFHAI), several
FLORENTINO CONCEPCION, BF NORTHWEST HOMEOWNERS’ homeowners’ associations, and residents of BF Homes Parañaque
ASSOCIATION, INC., KK HOMEOWNERS’ ASSOCIATION, INC., and BF (collectively petitioners) filed with the Court of Appeals a petition for
(CRAB) HOMEOWNERS’ ASSOCIATION, INC prohibition with an application for temporary restraining order and
RESPONDENTS: THE (MUNICIPAL) CITY MAYOR, THE (MUNICIPAL) preliminary injunction. Petitioners questioned the constitutionality of
CITY PLANNING AND DEVELOPMENT COORDINATING OFFICER OR Sections 11.5, 11.6, 15, 17, and 19.6 of Municipal Ordinance No. 97-08.
ZONING ADMINISTRATOR, THE (MUNICIPAL) CITY ENGINEER 4. Petitioners alleged that the reclassification of certain portions of BF Homes
AND/OR BUILDING OFFICIAL, THE CHIEF OF THE PERMITS AND Parañaque from residential to commercial zone is unconstitutional because
LICENSES DIVISION, THE SANGGUNIANG (BAYAN) PANGLUNGSOD, it amounts to impairment of the contracts between the developer of BF
and BARANGAY BF HOMES, ALL OF PARAÑAQUE CITY, METRO Homes Parañaque and the lot buyers. Petitioners cited the annotation on the
MANILA, EL GRANDE AGUIRRE COMMERCE AND TRADE lot buyers’ titles which provides that "the property shall be used for
ASSOCIATION (EL ACTO) residential purposes only and for no other purpose."
5. Public respondents alleged that the passage of Municipal Ordinance No. 97-
SUMMARY: Municipal Council of Parañaque enacted Municipal Ordinance 08 is a valid exercise of police power by the Municipal Council of
No. 97-08. Sections 11.5 and 11.6 of Municipal Ordinance No. 97-08, Parañaque and that such ordinance can nullify or supersede the contractual
reclassified El Grande and Aguirre Avenues in BF Homes Parañaque from obligations entered into by the petitioners and the developer.
residential to commercial areas. Petitioners alleged that the reclassification of 6. El Grande Aguirre Commerce and Trade Organization (EL ACTO), a non-
certain portions of BF Homes Parañaque from residential to commercial zone is stock, non-profit corporation, intervened as respondent. EL ACTO asserted
unconstitutional because it amounts to impairment of the contracts between the that Municipal Ordinance No. 97-08 is a valid exercise of police power and
developer of BF Homes Parañaque and the lot buyers. Public respondents that petitioners are guilty of estoppel since petitioners endorsed the opening
alleged that the passage of Municipal Ordinance No. 97-08 is a valid exercise of of many of these commercial establishments in BF Homes Parañaque. EL
police power by the Municipal Council of Parañaque. CA dismissed the petition. ACTO further alleged that the instant petition should have been initially
Issue is WoN Municipal Ordinance No. 97-08 is valid? SC held that it is. The filed with the Regional Trial Court in accordance with the principle of
Court has upheld in several cases the superiority of police power over the non- hierarchy of courts.
impairment clause. The constitutional guaranty of non-impairment of contracts is 7. CA dismissed the petition. It held that enactment of Municipal Ordinance
limited by the exercise of the police power of the State, in the interest of public No. 97-08 was a valid exercise of police power by the Municipality of
health, safety, morals and general welfare. Furthermore, contractual restrictions Parañaque, citing the General Welfare Clause of RA 7160. Because of the
on the use of property could not prevail over the reasonable exercise of police rapid and tremendous increase in population, the needs of the homeowners
power through zoning regulations. in the BF Parañaque Subdivision grew. The commercial zones in the area
proved inadequate to service the needs of its residents. There was therefore
DOCTRINE: Restrict the use of property since contractual restrictions on the a need to open more commercial districts. In fact, records show that several
use of property could not prevail over the reasonable exercise of police power homeowners along El Grande and Aguirre Avenues converted their
through zoning regulations. residences into business establishments. El Acto’s members are among
them.

ISSUE/s:
FACTS:
1. WoN Municipal Ordinance No. 97-08 is valid – YES, because it is a valid
1. *Used petitioners and respondents cos marami sila
exercise of police power.
2. BF Homes Parañaque Subdivision, with a land area straddling the cities of
Parañaque, Las Piñas, and Muntinlupa, is the largest subdivision in the
RULING: WHEREFORE, we AFFIRM the Decision dated 28 June 1999 and the
country. On 11 November 1997, the Municipal Council of Parañaque
Resolution dated 16 November 1999 of the Court of Appeals in CA-G.R. SP No.
enacted Municipal Ordinance No. 97-08 entitled, "An Ordinance
46624.
Prescribing the Comprehensive Land Use Plan & Zoning of the
 1991
RATIO: 7. The term for temporary use permits of the designated commercial area shall
1. Power to Enact Zoning Ordinances. The Municipal Council of Parañaque be considered extended for 8 years from December 31, 1991 to December
enacted Municipal Ordinance No. 97-08 pursuant to the provisions of RA 31, 1998; without prejudice to the official conversion of the area under
7160 and Executive Order No. 72. Under Section 447 of RA 7160, the existing MMA/LGC guidelines to commercial. Thus, UBFHAI’s proposed
Sangguniang Bayan or the Municipal Council, as the legislative body of the new commercial area, encompassing El Grande and Aguirre Avenues, is
municipality, has the power to enact ordinances for the general welfare of substantially the same area, which Municipal Ordinance No. 97-08 later
the municipality and its inhabitants. Among the functions of the reclassified as a commercial zone.
Sangguniang Bayan enumerated under Section 447 of RA 7160 are: 8. Non-Impairment of Contract. The Court has upheld in several cases the
a. Adopt a comprehensive land use plan for the municipality; superiority of police power over the non-impairment clause. The
b. Reclassify land within the jurisdiction of the municipality subject constitutional guaranty of non-impairment of contracts is limited by the
to the pertinent provision of this Code; exercise of the police power of the State, in the interest of public health,
c. Enact integrated zoning ordinances in consonance with the safety, morals and general welfare.
approved comprehensive land use plan, subject to existing laws, 9. In Ortigas & Co., Limited Partnership v. Feati Bank and Trust Co., the
rules and regulations. Court held that contractual restrictions on the use of property could
2. On the other hand, EO 72 provides: not prevail over the reasonable exercise of police power through zoning
a. SECTION 1. Plan formulation or updating. – (a) Cities and regulations.
municipalities shall continue to formulate or update their 10. Likewise, in Sangalang v. Intermediate Appellate Court, the Court upheld
respective comprehensive land use plans, in conformity with the Metro Manila Commission Ordinance No. 81-01, which reclassified Jupiter
land use planning and zoning standards and guidelines prescribed Street in Makati into a high-density commercial zone, as a legitimate
by the HLURB pursuant to national policies. exercise of police power. The Court held that the power of the Metro
3. The comprehensive land use plan prepared by the CDC/MDC shall be Manila Commission and the Makati Municipal Council to enact zoning
submitted to the sangguniang panglungsod or sangguniang bayan, as the ordinances for the general welfare prevails over the deed restrictions
case may be, for enactment into a zoning ordinance. Such ordinance shall on the lot owners in Bel-Air Village which restricted the use of the lots for
be enacted and approved in accordance with Articles 107 and 108 of the residential purposes only. 
Implementing Rules and Regulations (IRR) of the LGC. 11. While non-impairment of contracts is constitutionally guaranteed, the rule is
4. There is no sufficient evidence disputing the regularity of the enactment of not absolute, since it has to be reconciled with the legitimate exercise of
Municipal Ordinance No. 97-08. Before the Municipal Council of police power, i.e., "the power to prescribe regulations to promote the health,
Parañaque passed Municipal Ordinance No. 97-08, it has been the subject of morals, peace, education, good order or safety and general welfare of the
barangay consultations and committee hearings in accordance with people." Invariably described as "the most essential, insistent, and
Executive Order No. 72. illimitable of powers" and "in a sense, the greatest and most powerful
5. Reclassification of El Grande and Aguirre Avenues. Subject to the attribute of government," the exercise of the power may be judicially
approval of BF Homes, Inc., the Local Zoning Official/Planning Officer of inquired into and corrected only if it is capricious, whimsical, unjust or
Parañaque and the Metro Manila Commission and in recognition of the fact unreasonable, there having been a denial of due process or a violation of
that the subdivision has tremendously grown in size and population since any other applicable constitutional guarantee.
1983 when the above-mentioned guidelines of the MMC [Ordinance 81-01] 12. Our jurisdiction guarantees sanctity of contract and is said to be the "law
were promulgated, such that one commercial zone for the entire subdivision between the contracting parties," but while it is so, it cannot contravene
is now inadequate vis-a-vis the needs of the residents, the UBFHAI is "law, morals, good customs, public order, or public policy." Above all, it
proposing another commercial zone in Phase III of the Subdivision, in the cannot be raised as a deterrent to police power, designed precisely to
vicinity of the Parish of the Presentation of the Child Jesus as follows: promote health, safety, peace, and enhance the common good, at the
a. One lot deep along Aguirre Avenue from Gov. Santos St., to the expense of contractual rights, whenever necessary.
end of Aguirre Avenue and two lots deep along El Grande from
where it intersects Aguirre Avenue.
6. Pending approval of the aforesaid proposal, commercial buildings
constructed and existing in the aforesaid area will be given temporary-use
permits good for five years from December 31, 1986 or until December 31,