AUDITOR GENERAL
Facts: In 1964, the president, purporting to act pursuant to Section 68 of the Revised Administrative Code, issued Executive Order Nos. 93 to 121,124 and 126 to 129 for the creation of 33 municipalities. Vice president Pelaez instituted a special civil action for a writ of prohibition with preliminary injunction to restraint the auditor general as well as his representatives and agents from passing in audit any expenditure of public funds in implementation of the executive order and for any disbursement by said municipality by alleging that the executive order is null and void for it was impliedly repealed by RA 2370 and constitute undue delegation of power. The third paragraph of Section 3 of RA 2370, reads: Barrios shall not be created or their boundaries altered nor their names changed except under the provisions of this Act or by Act of Congress. Pursuant to the first two (2) paragraphs of the same Section 3: All barrios existing at the time of the passage of this Act shall come under the provisions hereof. Upon petition of a majority of the voters in the areas affected, a new barrio may be created or the name of an existing one may be changed by the provincial board of the province, upon recommendation of the council of the municipality or municipalities in which the proposed barrio is stipulated. The recommendation of the municipal council shall be embodied in a resolution approved by at least two-thirds of the entire membership of the said council: Provided, however, That no new barrio may be created if its population is less than five hundred persons. The petitioner argues that if the president cannot create a barrio, how can he create a municipality which is composed of several barrios, since barrios are units of municipality. Respondent on the other hand argue that a municipality can be created without creating a new barrios by placing old barrios under the jurisdiction of municipality. Issue (1): Whether or not the President has the power to create municipalities. NO Held: Respondent alleges that the power of the President to create municipalities under this section does not amount to an undue delegation of legislative power. Such claim is untenable. When RA 2370 became effective, barrios may "not be created or their boundaries altered nor their names changed" except by Act of Congress or of the corresponding provincial board "upon petition of a majority of the voters in the areas affected" and the "recommendation of the council of the municipality or municipalities in which the proposed barrio is situated." This statutory denial of the presidential authority to create a new barrio implies a negation of the bigger power to create municipalities, each of which consists of several barrios. The power to fix such common boundary, in order to avoid or settle conflicts of jurisdiction between adjoining municipalities, may partake of an administrative nature involving, as it does, the adoption of means and ways to carry into effect the law creating said municipalities the authority to create municipal corporations is essentially legislative in nature. In the language of other courts, it is "strictly a legislative function" or "solely and exclusively the exercise of legislative power". Issue (2): Whether or not the executive orders are valid. NO Held: According to the SC, under RA 2370, barrios may not be created or their boundaries altered nor their names be changed except by act of congress or of the corresponding provincial
board upon petition of a majority of the voters in the areas affected and the recommendation of the council of the municipality or municipalities in which the proposed barrio is situated. The SC further said that the authority to create municipal corporation is legislative in nature. WHEREFORE, the EOs in question are declared null and void ab initio and the respondent permanently restrained from passing in audit any expenditure of public funds in implementation of said Executive Orders or any disbursement by the municipalities above referred to.
executive order "is, in legal contemplation, as inoperative as though it had never been passed." The Act of Congress, having been found to be unconstitutional, was not a law; that it was inoperative, conferring no rights and imposing no duties, and hence affording no basis for the challenged decree. It is quite clear, however, that the actual existence of a statute, prior to such a determination, is an operative fact and may have consequences which cannot justly be ignored. There is then no basis for the respondents' apprehension that the invalidation of the executive order creating Balabagan would have the effect of unsettling many an act done in reliance upon the validity of the creation of that municipality. ACCORDINGLY, the petition is granted, Executive Order 386 is declared void, and the respondents are hereby permanently restrained from performing the duties and functions of their respective offices. MUNICIPALITY OF SAN NARCISO vs. MENDEZ Facts: President C. Garcia, issued E.O. 353 creating the municipal district of San Andres, Quezon. By virtue of E.O. 174, issued by President D. Macapagal, the municipal district of San Andres was later officially recognized to have gained the status of a fifth class municipality by operation of Sec. 2 of RA 1515. It was then attacked of its validity. The Municipality of San Narciso filed a petition for quo warranto against the officials of the Municipality of San Andres. The petition sought the declaration of nullity of Executive Order No. 353 and prayed that the respondent local officials of the Municipality of San Andres be permanently ordered to refrain from performing the duties and functions of their respective offices. While petitioners would grant that the enactment of RA 7160 may have converted the Municipality of San Andres into a de facto municipality, they contend that since the petition for quo warranto had been filed prior to the passage of said law, petitioner had acquired a vested right to seek the nullification of E.O. 353, and any attempt to apply Sec. 442 of RA 7160 to the petition would perforce be violative of the equal protection clause of the Constitution. Issue: Whether or not the Municpality of San Andres legally exists. YES Held: The de jure status of the Municipality of San Andres in the province of Quezon must be conceded. Granting the Executive Order No. 353 was a complete nullity for being the result of an unconstitutional delegation of legislative power, the peculiar circumstances obtaining in this case hardly could offer a choice other than to consider the Municipality of San Andres to have at least attained a status uniquely of its own closely approximating, if not in fact attaining, that of a de facto municipal corporation. Created in 1959 by virtue of Executive Order No. 353, the Municipality of San Andres had been in existence for more than six years. On the contrary, certain governmental acts all pointed to the State's recognition of the continued existence of the Municipality of San Andres. Thus, after more than five years as a municipal district, Executive Order No. 174 classified the Municipality of San Andres as a fifth class municipality after having surpassed the income requirement laid out in Republic Act No. 1515. Sec. 442(d) of the LGC of 1991, which provides that municipal districts organized pursuant to presidential issuances or executives orders and which have their respective sets of elective municipal officials holding office at the time of the effectivity of the code shall henceforth be considered as regular municipalities, is also curative statute, as it validates the creation of
municipalities by executive orders which had been held to be an invalid usurpation of legislative power.
affected." Thirdly, in the Tan case, even the requisite area for the creation of a new province was not complied with in BP Blg. 885. No such issue in the creation of the new municipality has been raised here. And lastly, "indecent haste" attended the enactment of BP Blg. 885 and the holding of the plebiscite thereafter in the Tan case; on the other hand, BP 56 creating the Municipality of Sibagat, was enacted in the normal course of legislation, and the plebiscite was held within the period specified in that law.
Moreover, the LGC of 1991, Sec. 442(d) provides that municipal districts organized pursuant to presidential issuances or executive orders and which have their respective sets of elective officials holding office at the time of the effectivity of this Code shall henceforth be considered as regular municipalities. Sinacaban has attained de jure status by virtue of the Ordinance appended to the 1987 Constitution, apportioning legislative districts throughout the country, which considered Sinacaban as part of the 2nd District of Misamis Occidental. II. Sinacaban had attained de facto status at the time the 1987 Constitution took effect. It is not subject to the plebiscite requirement. It applies only to new municipalities created for the first time under the Constitution. The requirement of plebiscite was originally contained in Art. XI, Section 3 of the previous Constitution. It cannot be applied to municipal corporations created before, such as Sinacaban. MIRANDA vs. AGUIRRE Facts: On May 5, 1994, RA 7720 converted the municipality of Santiago, Isabela, into an independent component city. On Feb 1998, RA 8528 was enacted, amending RA 7720. It changed the status of Santiago from an independent component city to a component city. Petitioners assailed the constitutionality of this RA since it lacked a provision submitting the law for ratification by the people of Santiago City in a plebiscite. The respondents raised the defense of standing and the political question doctrine. The Sol Gen argued that the RA merely reclassified Santiago City from an independent component city to a component city. It allegedly did not involve any creation, merger, abolition, or substantial alteration of boundaries of local government units. Issue: Whether or not a reclassification of a city from an independent component city to a component city requires a plebiscite. Held: Section 10, Article X of the 1987 Constitution provides: No province, city, municipality, or barangay may be created, or divided, merged, abolished, or its boundary substantially altered except in accordance with the criteria established in the local government code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected. This constitutional requirement is reiterrated in Section 10, Chapter 2 of the Local Government Code (R.A. No. 7160), thus: Sec. 10. No province, city, municipality, or barangay may be created, divided, merged, abolished, or its boundary substantially altered except in accordance with the criteria established in the local government code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected. The wording of the constitution has a common denominator: the material change in the political and economic rights of the LGU directly affected. The consent of the people is required to serve as a checking mechanism to any exercise of legislative power. The changes are substantial. The city mayor will be placed under the administrative supervision of the provincial governor. The resolutions and ordinances of the city council will have to be reviewed by the Provincial Board of Isabela. Taxes that will be collected by the city will have to be shared with the province. There would be a reduction in their IRA. When RA 7720 upgraded the status of Santiago City from a municipality to an independent component city, it required the approval of its people thru a plebiscite called for that purpose. There is no reason why the same should not be done when RA 8528 downgrades the status of
their city. The rules cover all conversions, whether upward or downward so long as they result in a material change in the LGU directly affected. Thus, R.A. No. 8528, which fails to provide that the conversion of the city of Santiago from an independent component city to a component city should be submitted to its people in a proper plebiscite, is unconstitutional.
by the people, but appointed by the President with the rank and privileges of a cabinet member. In fact, part of his function is to perform such other duties as may be assigned to him by the President, whereas in local government units, the President merely exercises supervisory authority. This emphasizes the administrative character of the MMDA. Clearly then, the MMC under P. D. No. 824 is not the same entity as the MMDA under R. A. No. 7924. Unlike the MMC, the MMDA has no power to enact ordinances for the welfare of the community. It is the local government units, acting through their respective legislative councils, that possess legislative power and police power. In the case at bar, the Sangguniang Panlungsod of Makati City did not pass any ordinance or resolution ordering the opening of Neptune Street, hence, its proposed opening by petitioner MMDA is illegal.
ruling could have sounded the call for a similar declaration of the unconstitutionality of Executive Order No. 353 but it was not to be the case. On the contrary, certain governmental acts all pointed to the State's recognition of the continued existence of the Municipality of San Andres. Thus, after more than five years as a municipal district, Executive Order No. 174 classified the Municipality of San Andres as a fifth class municipality after having surpassed the income requirement laid out in Republic Act No. 1515. The Municipality of Alicia was created by EO 265, or ten years ahead of the Municipality of San Andres, and had been in existence for 16 years when Pelaez was promulgated. Various governmental acts through the years all indicate the States recognition and acknowledgement of its existence. Alicia must benefit from the effects of Sec. 422 (d) of the LGC and should be considered a regular, de jure municipality. According to Sec. 442 (d) of the LGC, municipal districts organized pursuant to presidential issuances or executive orders and which have their respective sets of elective municipal officials holding office at the time of the effectivity of the Code shall henceforth be considered as regular municipalities. Curative laws, which in essence are retrospective, and aimed at giving validity to acts done that would have been invalid under existing laws, as if existing laws have been complied with, are validly accepted in this jurisdiction, subject to the usual qualification against impairment of vested rights. WHEREFORE, the instant petition for review on certiorari is hereby DENIED, with costs against petitioner.
pursuant to the Constitution, the power to create a province is with Congress and may not be validly delegated. Section 19 is, therefore, unconstitutional. MMA Act 201, enacted by the ARMM Regional Assembly and creating the Province of Shariff Kabunsuan, is void. The creation of Shariff Kabunsuan is invalid. In this case, the creation of a province by the Regional Assembly is contrary to the Constitution. There is neither an express prohibition nor an express grant of authority in the Constitution for Congress to delegate to regional or local legislative bodies the power to create LGUs. However, under its plenary legislative powers, Congress can delegate to local legislative bodies the power to create LGUs, subject to reasonable standards and provided no conflict arises with any provision of the Constitution. When it comes to the creation of municipalities and barangays, there is no provision in the Constitution that conflicts with the delegation to regional legislative bodies (like the ARMM Regional Assembly) of the power to create such LGUs. The creation of provinces and cities is another matter. The power to create a province or city inherently involves the power to create a legislative district. This is clear under Section 5 (3), Article VI of the Constitution (Each city with a population of at least two hundred fifty thousand, or each province, shall have at least one representative in the House of Representatives) and Section 3 of the Ordinance appended to theConstitution (Any province that may hereafter be created, or any city whose population may hereafter increase to more than twohundred fifty thousand shall be entitled in the immediately following election to at least one Member) In other words, for Congress to delegate validly the power to create a province or city, it must also validly delegate at the same time the power to create a legislative district. However, Congress CANNOT validly delegate the power to create legislative districts. The power to increase the allowable membership in the House of Representatives, and to reapportion legislative districts, is vested exclusively in Congress. Section 5 (1), Article VI of the Constitution vests in Congress the power to increase, through a law, the allowable membership in the House of Representatives. Section 5 (4) empowers Congress to reapportion legislative districts. The power to reapportion legislative districts necessarily includes the power to create legislative districts out of existing ones. Congress exercises these powers through a law that Congress itself enacts, and not through a law that regional or local legislative bodies enact. The allowable membership of the House of Representatives can be increased, and new legislative districts of Congress can be created, only through a national law passed by Congress. The exclusive power to create or reapportion legislative districts is logical. Congress is a national legislature and any increase in its allowable membership or in its incumbent membership through the creation of legislative districts must be embodied in a national law. Only Congress can enact such a law. It would be anomalous for regional or local legislative bodies to create or reapportion legislative districts for a national legislature like Congress. An inferior legislative body, created by a superior legislative body, cannot change the membership of the superior legislative body. Indeed, the office of a legislative district representative to Congress is a national office, and its occupant, a Member of the House of Representatives, is a national official. It would be
incongruous for a regional legislative body like the ARMM Regional Assembly to create a national office when its legislative powers extend only to its regional territory. The office of a district representative is maintained by national funds and the salary of its occupant is paid out of national funds. It is a self- evident inherent limitation on the legislative powers of every local or regional legislative body that it can only create local or regional offices, respectively, and it can never create a national office. To allow the ARMM Regional Assembly to create a national office is to allow its legislative powers to operate outside the ARMMs territorial jurisdiction. This violates Section 20, Article X of the Constitution which expressly limits the coverage of the Regional Assemblys legislative powers within its territorial jurisdiction.
Government Code. The Constitution requires Congress to stipulate in the Local Government Code all the criteria necessary for the creation of a city, including the conversion of a municipality into a city. Congress cannot write such criteria in any other law, like the Cityhood Laws. Likewise, Section 450 of the Local Government Code provides: Section 450. Requisites for Creation - (a) A municipality or a cluster of barangays may be converted into a component city if it has a locally generated average annual income, as certified by the Department of Finance, of at least One hundred million pesos (P100,000,000.00) for the last two (2) consecutive years based on 2000 constant prices, and if it has either of the following requisites: (i) a contiguous territory of at least 100 square kilometers, as certified bythe Land Management Bureau; or (ii) a population of not less than 150,000 inhabitants, as certified by the National Statistics Office. The creation thereof shall not reduce the land area, population and income of the original unit or units at the time of said creation to less than the minimum requirements prescribed herein. (b) The territorial jurisdiction of a newly-created city shall be properly identified by metes and bounds. The requirement on land area shall not apply where the city proposed to be created is composed of one (1) or more islands. The territory need not be contiguous if it comprises two (2) or more islands. (c) The average annual income shall include the income accruing to the general fund, exclusive of special funds, transfers, and non-recurring income. Thus, RA 9009 increased the income requirement for conversion of a municipality into a city from P20 million toP100 million. Section 450 of the Local Government Code, as amended by RA 9009, does not provide any exemption from the increased income requirement. The equal protection clause of the 1987 Constitution permits a valid classification under the following conditions: 1. The classification must rest on substantial distinctions; 2. The classification must be germane to the purpose of the law; 3. The classification must not be limited to existing conditions only; and 4. The classification must apply equally to all members of the same class. Limiting the exemption only to the 16 municipalities violates the requirement that the classification must apply to all similarly situated. Municipalities with the same income as the 16 respondent municipalities cannot convert into cities, while the 16 respondent municipalities can. Clearly, as worded the exemption provision found in the Cityhood Laws, even if it were written in Section 450 of the Local Government Code, would still be unconstitutional for violation of the equal protection clause.
Former President Macapagal creating 33 Municipalities of Lanao Del Sur was considered null and void due to undue delegation of legislative powers. Among the annulled executive orders is EO 107 creating Andong. The petitioner herein represents himself as resident of Andong (as aprivate citizen and taxpayer). Camid contends/argues the following: (1) Municipality of Andong evolved into a full blown municipality (since there is a complete set of officials appointed to handle essential tasks and services, it has its own high school, Bureau of Post, DECS office, etc. (2) 17 baranggays with chairman; (3) he noted agencies and private groups recognizing Andong and also the CENRO and DENR Certification of land area and population of Andong. In the Certification of DILG, there is an enumeration of existing municipalities including 18 0f the 33 Municipalities invalidated in Pelaez Case. Camid finds this as an abuse of discretion and unequal treatment for Andong. Likewise, Camid insists the continuing of EO 107, arguing that in Municipality of San Narciso v. Hon. Mendez, the Court affirmed in making San Andres a de facto municipal corporation. San Andres was created through an executive order. Thus, this petition. Issue: Whether or not the Municipality of Andong be recognized as a de facto municipal corporation. NO Held: Municipal corporations may exist by prescription where it is shown that the community has claimed and exercised corporate functions, with the knowledge and acquiescence of the legislature, and without interruption or objection for period long enough to afford title by prescription. Camid does not have shown factual demonstration of the continuous exercise by the municipal corporation of its corporation of its corporate powers as well as acquiescence by the other instrumentalities of the state like charters or the legislatures action. May any action on the Certification be an appropriate solution to Camids prayer? NO. The Certification has no power or it does not bear any authority to create or revalidate a municipality. Should the case of Andong be treated same as the case of San Andres? No, for the following reasons: (1) There are facts found in the San Andres case that are not present in the case at bar: (1) The Executive Order creating San Andres was not invalidated in Pelaez Case, (2) The municipality existed for 30 years before it was questioned and (3) The municipality was classified as a fifth class municipality and was included in the legislative district in the House of Representatives apportionment. (2) Andong did not meet the requisites set by LGC of 1991 Sec.442 (d) regarding municipalities created by executive orders. It says: Municipalities existing as of the date of the effectivity of this Code shall continue to exist and operate as such. Existing municipal districts organized pursuant to presidential issuances or executive orders and which have their respective set of elective municipal officials holding office at the time of the effectivity of this Code shall henceforth be considered as regular municipalities. (3) The failure to appropriate funds for Andong and the absence of elections in the municipality are eloquent indicia (indicators) that the State does not recognize the existence of the municipality.
(4) The Ordinance appended in the 1987 Constitution (which apportioned seats for the House of Reps to the different legislative districts in the Philippines, enumerates the various municipalities encompassed in the various districts) did not include Andong. Is there an unequal treatment since 18 of the 33 invalidated municipalities are now considered existing? NONE. The DILG Certification and the Ordinance in the1987 Constitution validates them. The fact that there existing organic statutes passed by the legislation recreating these municipalities is enough to accord a different treatment as that of the municipality of Andong. SC DISMISSED petition for lack of Merit. Note the following Sections with regards to juridical personality of corporations in relation to the reasons why San Andres have a different treatment with Andong: Batas Pambansa Blg. 8: Section 2. Corporation defined. - A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence; Section 4. Corporations created by special laws or charters. Corporations created by special laws or charters shall be governed primarily by the provisions of the special law or charter creating them or applicable to them, supplemented by the provisions of this Code, insofar as they are applicable. Moreover, under Art.44 of the New Civil Code with relation to Art. 45 of the New Civil Code, those considered as juridical person includes the State and its political subdivisions and Other corporations, institutions and entities for public interest or purpose, created by law; their personality begins as soon as they have been constituted according to law. These two are governed by the law creating them. Since Andong has no law recreating it and that it is not a recognized olitical subdivision, it is not also considered a juridical person. What happened with the people from Andong?-The constituent barrios of the voided town returns to its original municipalities (Lumbatan, Tubig and Tubaran) which are recognized and still existing. The solution to have Andong recognized is through legislation and not judicial confirmation of void title
give plaintiffs the right to make use of another lot. The CA affirmed and included the award of damages in favor of the private respondents. Issue (1): Whether or not the operations and functions of a public cemetery are a governmental, or a corporate or proprietary function of the City of Manila. PROPRIETARY Held: Petitioners alleged in their petition that the North Cemetery is exclusively devoted for public use or purpose as stated in Sec. 316 of the Compilation of the Ordinances of the City of Manila. They conclude that since the City is a political subdivision in the performance of its governmental function, it is immune from tort liability which may be caused by its public officers and subordinate employees. Private respondents maintain that the City of Manila entered into a contract of lease which involve the exercise of proprietary functions with Irene Sto. Domingo. The city and its officers therefore can be sued for any-violation of the contract of lease. Petitioners alleged in their petition that the North Cemetery is exclusively devoted for public use or purpose as stated in Sec. 316 of the Compilation of the Ordinances of the City of Manila. They conclude that since the City is a political subdivision in the performance of its governmental function, it is immune from tort liability which may be caused by its public officers and subordinate employees. Private respondents maintain that the City of Manila entered into a contract of lease which involves the exercise of proprietary functions with Irene Sto. Domingo. The city and its officers therefore can be sued for any-violation of the contract of lease. Under the foregoing considerations and in the absence of a special law, the North Cemetery is a patrimonial property of the City of Manila. The administration and government of the cemetery are under the City Health Officer, the order and police of the cemetery, the opening of graves, niches, or tombs, the exhuming of remains, and the purification of the same are under the charge and responsibility of the superintendent of the cemetery. With the acts of dominion, there is no doubt that the North Cemetery is within the class of property which the City of Manila owns in its proprietary or private character. Furthermore, there is no dispute that the burial lot was leased in favor of the private respondents. Hence, obligations arising from contracts have the force of law between the contracting parties. Thus a lease contract executed by the lessor and lessee remains as the law between them. Therefore, a breach of contractual provision entitles the other party to damages even if no penalty for such breach is prescribed in the contract. Issue (2): Whether or not the city is liable for damages. YES Held: All things considered, even as the Court commiserates with plaintiffs for the unfortunate happening complained of and untimely desecration of the resting place and remains of their deceased dearly beloved, it finds the reliefs prayed for by them lacking in legal and factual basis. Under the aforementioned facts and circumstances, the most that plaintiffs ran ask for is the replacement of subject lot with another lot of equal size and similar location in the North Cemetery which substitute lot plaintiffs can make use of without paying any rental to the city government for a period of forty-three (43) years, four (4) months and eleven (11) days corresponding to the unexpired portion of the term of the lease sued upon as of January 25, 1978 when the remains of the late Vivencio Sto. Domingo, Sr. were prematurely removed from the disputed lot; and to require the defendants to look in earnest for the bones and skull of the late Vivencio Sto. Domingo Sr. and to bury the same in the substitute lot adjudged in favor of plaintiffs hereunder.
As regards the issue of the validity of the contract of lease of grave lot No. 159, Block No. 195 of the North Cemetery for 50 years beginning from June 6, 1971 to June 6, 2021 as clearly stated in the receipt duly signed by the deputy treasurer of the City of Manila and sealed by the city government, there is nothing in the record that justifies the reversal of the conclusion of both the trial court and the IAC to the effect that the receipt is in itself a contract of lease. Under the doctrine of respondent superior, (Torio v. Fontanilla), petitioner City of Manila is liable for the tortious act committed by its agents who failed toverify and check the duration of the contract of lease. The contention of the petitioner-city that the lease is covered by Administrative Order No. 5, series of 1975 dated March 6, 1975 of the City of Manila for five (5) years only beginning from June 6, 1971 is not meritorious for the said administrative order covers new leases. When subject lot was certified on January 25, 1978 as ready for exhumation, the lease contract for fifty (50) years was still in full force and effect.
governmental powers are "conferred upon a municipality, the better to enable it to aid a state in properly governing that portion of its people residing within its municipality, such powers being in their nature public. An alleged error imputed to respondent Commission, however, needs further discussion. Petitioners seek refuge in the legislative franchise granted them. Whatever privilege may be claimed by petitioners cannot override the specific constitutional restriction that no franchise or right shall be granted to any individual or corporation except under a condition that it shall be subject to amendment, alteration or repeal by Congress. Such amendment or alteration need not be express; it may be implied from a latter act of general applicability, such as the one now under consideration. Reference by petitioners to the statute providing the procedure for the taking over and operation by the government of public utilities, in their view "to further strengthen their contention", as to the commission of this alleged error is unavailing, even if such statute were applicable, which it is not. In the language of their own brief: "This Act provides for the procedure to be followed whenever the Government or any political subdivision thereof decides to acquire and operate a public utility owned and operated by any individual or private corporation." That is to be regulated, therefore, by this enactment is the exercise of eminent domain, which is a taking of private property for public use upon the payment of just compensation. There is here no taking. There is here no appropriation. What was owned before by petitioners continue to remain theirs. There is to be no transfer of ownership. Rather, a municipal corporation, by virtue of Commonwealth Act No. 2677, may further promote community welfare by itself engaging in supplying public services, without the need of a certificate of public convenience. If at all then, the exercise of this governmental prerogative comes within the broad, undefined scope of the police power. It is not here, of course, the ordinary case of restraint on property or liberty, by the imposition of a regulation. What the amendatory act in effect accomplishes is to lend encouragement and support for the municipal corporation itself undertaking an activity as a result of which, profits of a competing private firm would be adversely affected. Clearly, then, the relevancy of the statute providing for the taking or operation of the government of public utilities, appears, to put it at its mildest, far from clear. Petitioners' contention as to this alleged error being committed, therefore, far from being strengthened by such a reference, suffers from a fate less auspicious. WHEREFORE, the orders of respondent Public Service Commission denying the motion for reconsideration are affirmed.
Lanao del Sur. [Remarkably, even the Congressman of Cotabato voted in favor of RA 4790.] Pursuant to this law, COMELEC proceeded to establish precints forvoter registration in the said territories of Dianaton. Lidasan then filed that RA 4790 be nullified forbeing unconstitutional because it did not clearly indicate in its title that it in creating Dianaton, it would be including in the territory thereof barrios from Cotabato. Issue: Is RA 4790, which created Dianaton but which includes barrios located in another province - Cotabato -to be spared from attack planted upon the constitutional mandate that "No bill which may be enacted into law shall embrace more than one subject which shall be expressed in the title of the bill. Held: The baneful effect of the defective title here presented is not so difficult to perceive. Such title did not inform the members of Congress as to the full impact of the law; it did not apprise the people in the towns of Buldon and Parang in Cotabato and in the province of Cotabato itself that part of their territory is being taken away from their towns and province and added to the adjacent Province of Lanao del Sur; it kept the public in the dark as to what towns and provinces were actually affected by the bill that even a Congressman from Cotabato voted for it only to find out later on that it is to the prejudice of his own province. These are the pressures which heavily weigh against the constitutionality of RA 4790.
embodied in a general law or a special law. The standing consent of the State to be sued in case of money claims involving liability arising from contracts is found in Act No. 3083. A special law may be passed to enable a person to sue the government for an alleged quasi-delict. Consent is implied when the government enters into business contracts, thereby descending to the level of the other contracting party, and also when the State files a complaint, thus opening itself to a counterclaim. Municipal corporations are agencies of the State when they are engaged in governmental functions and therefore should enjoy the sovereign immunity from suit. Nevertheless, they are subject to suit even in the performance of such functions because their charter provided that they can sue and be sued. A distinction should first be made between suability and liability. "Suability depends on the consent of the state to be sued, liability on the applicable law and the established facts. The circumstance that a state is suable does not necessarily mean that it is liable; on the other hand, it can never be held liable if it does not first consent to be sued. Liability is not conceded by the mere fact that the state has allowed itself to be sued. When the state does waive its sovereign immunity, it is only giving the plaintiff the chance to prove, if it can, that the defendant is liable." Anent the issue of whether or not the municipality is liable for the torts committed by its employee, the test of liability of the municipality depends on whether or not the driver, acting in behalf of the municipality, is performing governmental or proprietary functions (Torio vs. Fontanilla). According to City of Kokomo vs Loy (Indiana SC), municipal corporations exist in a dual capacity, and their functions are twofold. In one they exercise the right springing from sovereignty, and while in the performance of the duties pertaining thereto, their acts are political and governmental. Their officers and agents in such capacity, though elected or appointed by them, are nevertheless public functionaries performing a public service, and as such they are officers, agents, and servants of the state. In the other capacity the municipalities exercise a private, proprietary or corporate right, arising from their existence as legal persons and not as public agencies. Their officers and agents in the performance of such functions act in behalf of the municipalities in their corporate or individual capacity, and not for the state or sovereign power." It has already been remarked that municipal corporations are suable because their charters grant them the competence to sue and be sued. Nevertheless, they are generally not liable for torts committed by them inthe discharge of governmental functions and can be held answerable only if it can be shown that they wereacting in a proprietary capacity. In the case at bar, the driver of the dump truck of the municipality insists that "he was on his way to the Naguilian River to get a load of sand and gravel for the repair of San Fernando's municipal streets." In the absence of any evidence to the contrary, the regularity of the performance of official duty is presumed pursuant to Section 3(m) of Rule 131 of the Revised Rules of Court. Hence, We rule that the driver of the dump truck was performing duties or tasks pertaining to his office.We already stressed in the case of Palafox, et. al. vs. Province of Ilocos Norte, the District Engineer, and the Provincial Treasurer that "the construction or maintenance of roads in which the truck and the driver worked at the time of the accident are admittedly governmental activities."
After a careful examination of existing laws and jurisprudence, We arrive at the conclusion that the municipality cannot be held liable for the torts committed by its regular employee, who was then engaged in the discharge of governmental functions. Hence, the death of the passenger tragic and deplorable though it may be imposed on the municipality no duty to pay monetary compensation.
welfare and they include the legislative, judicial public, and political Municipal powers on the other hand are exercised for the special benefit and advantage of the community and include those which are ministerial private and corporate. This distinction of powers becomes important for purposes of determining the liability of the municipality for the acts of its agents which result in an injury to third persons. If the injury is caused in the course of the performance of a governmental function or duty, no recovery, as a rule, can be had from the municipality unless there is an existing statute on the matter, nor from its officers, so long as they performed their duties honestly and in good faith or that they did not act wantonly and maliciously. With respect to proprietary functions, the settled rule is that a municipal corporation can be held liable to third persons ex contract or ex delicto. The court held that the town fiesta in 1959 by the municipality of Malsiqui Pangasinan was an exercise of a private or proprietary function of the municipality. Section 2282 of the Chatter on Municipal Law of the Revised Administrative Code provides: Section 2282. Celebration of fiesta. fiesta may be held in each municipality not oftener than once a year upon a date fixed by the municipal council A fiesta s not be held upon any other date than that lawfully fixed therefor, except when, for weighty reasons, such as typhoons, foundations, earthquakes, epidemics, or other public ties, the fiesta cannot be hold in the date fixed in which case it may be held at a later date in the same year, by resolution of the council. This provision simply gives authority to the municipality to celebrate a yearly fiesta but it does not impose upon it a duty to observe one. Holding a fiesta even if the purpose is to commemorate a religious or historical event of the town is in essence an act for the special benefit of the community and not for the general welfare of the public performed in pursuance of a policy of the state. The mere fact that the celebration, as claimed was not to secure profit or gain but merely to provide entertainment to the town inhabitants is not a conclusive test. For instance, the maintenance of parks is not a source of income for the nonetheless it is private undertaking as distinguished from the maintenance of public schools, jails, and the like which are for public service. It follows that under the doctrine of respondent superior, petitioner-municipality is to be held liable for damages for the death of Vicente Fontanilia if that was at- attributable to the negligence of the municipality's officers, employees, or agents. Art. 2176, Civil Code: Whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. . . Art. 2180, Civil Code: The obligation imposed by article 2176 is demandable not only for one's own acts or omission, but also for those of persons for whom one is responsible. . . The holding of the town fiesta was an exercise of a propriety function. It is an act for the special benefit of the community and not for the general welfare of the public performed in pursuance of a policy of the state. Hence, the municipality is liable for damages. However, the councilors should be absolved from liability. The liability of public officers for damages under Article 27 of the Civil Code applies to nonfeasance and not to negligence or misfeasance. The councilors are similar to the board of directors of a corporation, since the celebration of the town fiesta is not governmental function. As such, they are not liable for damages for negligence of the agents
and employees of the municipality unless there is a showing of bad faith or gross negligence on their part.
public auction one of the motor vehicles of the City Government for P100,000. The amount was given to Santiago. The City Government questioned the validity of the motor vehicle; properties of the municipality were exempt from execution. Judge Allarde denied the motion and directed the sheriff to levy and schedule at public auction 3 more vehicles. On October 5, 1993 the City Council of Caloocan passed Ordinance No. 0134 which included the amount of P439,377.14 claimed by Santiago as back-wages, plus interest. Judge Allarde issued an order to the City Treasurer to release the check but the City Treasurer can't do so because the Mayor refuses to sign the check. On May 7, 1993, Judge Allarde ordered the Sheriff to immediately garnish the funds of the City Government of Caloocan corresponding to the claim of Santiago. Notice of garnishment was forwarded to the PNB but the City Treasurer sent an advice letter to PNB that the garnishment was illegal and that it would hold PNB liable for any damages which may be caused by the withholding the funds of the city. Issue: Whether the funds of City of Caloocan, in PNB, may be garnished (i.e. exempt from execution), to satisfy Santiagos claim. Held: Garnishment is considered a specie of attachment by means of which the plaintiff seeks to subject to his claim property of the defendant in the hands of a third person, or money owed by such third person or garnishee to the defendant. The rule is and has always been that all government funds deposited in the PNB or any other official depositary of the Philippine Government by any of its agencies or instrumentalities, whether by general or special deposit, remain government funds and may not be subject to garnishment or levy, in the absence of a corresponding appropriation as required by law. Even though the rule as to immunity of a state from suit is relaxed, the power of the courts ends when the judgment is rendered. Although the liability of the state has been judicially ascertained, the state is at liberty to determine for itself whether to pay the judgment or not, and execution cannot issue on a judgment against the state. Such statutes do not authorize a seizure of state property to satisfy judgments recovered, and only convey an implication that the legislature will recognize such judgment as final and make provision for the satisfaction thereof. The rule is based on obvious considerations of public policy. The functions and public services rendered by the State cannot be allowed to be paralyzed or disrupted by the diversion of public funds from their legitimate and specific objects, as appropriated by law. However, the rule is not absolute and admits of a well-defined exception, that is, when there is a corresponding appropriation as required by law. Otherwise stated, the rule on the immunity of public funds from seizure or garnishment does not apply where the funds sought to be levied under execution are already allocated by law specifically for the satisfaction of the money judgment against the government. In such a case, the monetary judgment may be legally enforced by judicial processes. Herein, the City Council of Caloocan already approved and passed Ordinance 0134, Series of 1992, allocating the amount of P439,377.14 for Santiagos back salaries plus interest. This case, thus, fell squarely within the exception. For all intents and purposes, Ordinance 0134, Series of 1992, was the "corresponding appropriation as required by law." The sum indicated in the ordinance for Santiago were deemed automatically segregated from the other budgetary allocations of the City of Caloocan and earmarked solely for the Citys monetary obligation to her. The judgment of the trial court could then be validly enforced against such funds.
Furthermore, Section 15, Rule 39 of the New Rules of Court, outlines the procedure for the enforcement of money judgment: (a) By levying on all the property of the debtor, whether real or personal, not otherwise exempt from execution, or only on such part of the property as is sufficient to satisfy the judgment and accruing cost, if he has more than sufficient property for the purpose; (b) By selling the property levied upon; (c) By paying the judgment-creditor so much of the proceeds as will satisfy the judgment and accruing costs; and (d) By delivering to the judgment-debtor the excess, if any, unless otherwise, directed by judgment or order of the court. The foregoing has not been followed in the case at bar. ACCORDINGLY, the petition is granted and the orders of respondent judge are SET ASIDE; and respondents are hereby enjoined from implementing the writ of execution.
Where a municipality fails or refuses, without justifiable reason, to effect payment of a final money judgment rendered against it, the claimant may avail of the remedy of mandamus in order to compel the enactment and approval of the necessary appropriation ordinance, and the corresponding disbursement of municipal funds therefor. This Court will not condone petitioner's blatant refusal to settle its legal obligation arising from expropriation proceedings it had in fact initiated. It cannot be over-emphasized that, within the context of the State's inherent power of eminent domain, just compensation means not only the correct determination of the amount to be paid to the owner of the land but also the payment of the land within a reasonable time from its taking. The State's power of eminent domain should be exercised within the bounds of fair play and justice. In the case at bar, considering that valuable property has been taken, the compensation to be paid fixed and the municipality is in full possession and utilizing the property for public purpose, for 3 years, the Court finds that the municipality has had more than reasonable time to pay full compensation. The Court Resolved to ORDER petitioner Municipality of Makati to immediately pay Philippine Savings Bank, Inc. and private respondent. The order of respondent RTC is SET ASIDE and the TRO issued by the Court is MADE PERMANENT.
compensation nor was it specifically appropriated by Ordinance No. 1519 for such purpose. Said account, therefore, is exempt from garnishment. Since the RTC has no authority to garnish Cebu Citys other bank accounts in order to satisfy its judgment, consequently, it has no authority to order the release of Cebu Citys other deposits with Philippine Postal Bank. Even assuming that Cebu City Ordinance No. 1519 actually appropriated the amount for payment of just compensation thus, within the reach of a writ of garnishment issued by the RTC there remains the inescapable fact that the PPB account referred to in the ordinance does not actually exist, as certified to by the Bank. Accordingly, no writ of garnishment may be validly issued against such non-existent account with Philippine Postal Bank. This circumstance translates to a situation where there is no valid appropriation ordinance. The petitions are DENIED. The Decision of the CA is affirmed.
insists that the donation is perfectly valid, stating that there is nothing in the LGC which expressly states that the lack of an appraised valuation renders the subject transfer void. Further, it contends that at best, an appraised valuation is merely a formal and procedural requisite, the lack of which cannot overturn substantive and vested rights. Petitioner also contends that considering that the assailed donation is clearly onerous, the rules on contracts will apply. Pertinently, the Civil Code expressly defines the different kinds of void and inexistent contracts under Art. 1409. A transfer of real property by a local government unit to an instrumentality of government without first securing an appraised valuation from the local committee on awards does not appear to be one of the void contracts enumerated in the aforequoted Article 1409. Neither does Section 381 of the LGC expressly prohibit or declare void such transfers if an appraised valuation from the local committee on awards is not first obtained. The freedom of contract is both a constitutional and statutory right and to uphold this right, courts should move with all the necessary caution and prudence in holding contracts void. Furthermore, a duly executed contract carries with it the presumption of validity. There being a perfected contract, the Province of Tarlac, through Gov. Yap, cannot revoke or renounce the same without the consent of the other party. From the moment of perfection, the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all the consequences which, according to their nature, may be in keeping with good faith, usage, and law. The contract has the force of law between the parties and they are expected to abide in good faith by their respective contractual commitments. Just as nobody can be forced to enter into a contract, in the same manner, once a contract is entered into, no party can renounce it unilaterally or without the consent of the other. It is a general principle of law that no one may be permitted to change his mind or disavow and go back upon his own acts, or to proceed contrary thereto, to the prejudice of the other party.
Issue (1): Whether or not Kapasiyahan Blg. 508 and the denial of a mayor's permit based thereon is valid. Held: YES. The entire controversy stemmed from the refusal of Mayor Cataquiz to issue a mayor's permit for the operation of a lotto outlet in favor of private respondent. According to the mayor, he based his decision on an existing ordinance prohibiting the operation of lotto in the province of Laguna. The ordinance, however, merely states the "objection" of the council to the said game. It is but a mere policy statement on the part of the local council, which is not selfexecuting. As a policy statement expressing the local government's objection to the lotto, such resolution is valid. This is part of the local government's autonomy to air its views which may be contrary to that of the national government's. However, this freedom to exercise contrary views does not mean that local governments may actually enact ordinances that go against laws duly enacted by Congress. Given this premise, the assailed resolution in this case could not and should not be interpreted as a measure or ordinance prohibiting the operation of lotto. The game of lotto is a game of chance duly authorized by the national government through an Act of Congress. Republic Act 1169, as amended by Batas Pambansa Blg. 42, is the law which grants a franchise to the PCSO and allows it to operate the lotteries. Municipal governments are only agents of the national government. Local councils exercise only delegated legislative powers conferred upon them by Congress as the national lawmaking body. The delegate cannot be superior to the principal or exercise powers higher than those of the latter. It is a heresy to suggest that the local government units can undo the acts of Congress, from which they have derived their power in the first place, and negate by mere ordinance the mandate of the statute. Issue (2): Whether or not prior consultations and approval by the concerned Sanggunian are needed before a lotto system can be operated in a given local government unit. Held: NO. The SC held that petitioners erred in declaring that Sections 2 (c) and 27 of Republic Act 7160, otherwise known as the Local Government Code of 1991, apply mandatorily in the setting up of lotto outlets around the country. From a careful reading of said provisions, these apply only to national programs and/or projects which are to be implemented in a particular local community. Lotto is neither a program nor a project of the national government, but of a charitable institution, the PCSO. Though sanctioned by the national government, it is farfetched to say that lotto falls within the contemplation of Sections 2 (c) and 27 of the LGC.
Ordinance 3375-93 (An Ordinance prohibiting the operation of Casino and providing penalty for violation therefore). The contention of the petitioners is that it is violative of the Sangguniang Panlungsod of Cagayan de Oro City Ordinance No. 3353 prohibiting the use of buildings for the operation of a casino and Ordinance No. 3375-93 prohibiting the operation of casinos. On the other hand, the respondents invoke P.D. 1869 which created PAGCOR to help centralize and regulate all games of chance, including casinos on land and sea within the territorial jurisdiction of the Philippines. Issue: Whether or not the Ordinance No. 3353 and Ordinance No. 3375-93 are valid. Held: NO. Cagayan de Oro City, like other local political subdivisions, is empowered to enact ordinances for the purposes indicated in the Local Government Code. It is expressly vested with the police power under what is known as the General Welfare Clause now embodied in Section 16 as follows: Sec. 16. General Welfare. Every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare. Within their respective territorial jurisdictions, local government units shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants. There is a requirement that the ordinances should not contravene a statute. Municipal governments are only agents of the national government. Local councils exercise only delegated legislative powers conferred on them by Congress as the national lawmaking body. The delegate cannot be superior to the principal or exercise powers higher than those of the latter. It is a heresy to suggest that the LGUs can undo the acts of Congress, from which they have derived their power in the first place, and negate by mere ordinance the mandate of the statute. Casino gambling is authorized by P.D. 1869. This decree has the status of a statute that cannot be amended or nullified by a mere ordinance. The morality of gambling is not justiciable issue. Gambling is not illegal per se. While it is generally considered inimical to the interests of the people, there is nothing in the Constitution categorically proscribing or penalizing gambling or, for that matter, even mentioning it at all. It is left to Congress to deal with the activity as it sees fit. In the exercise of its own discretion, the legislature may prohibit gambling altogether or allow it without limitation or it may prohibit some forms of gambling and allow others for whatever reasons it may consider sufficient. Further, there are two kinds of gambling, to wit, the illegal and those authorized by law. Legalized gambling is not a modern concept; it is probably as old as illegal gambling, if not indeed more so. The suggestion that the LGC authorize LGUs to prohibit all kinds of gambling would erase the distinction between these two forms of gambling without a clear indication that this is the will of legislature.
Facts: Private respondent Malate Tourist Development Corporation (MTDC) is a corporation engaged in the business of operating hotels, motels, hostels and lodging houses.5 It built and opened Victoria Court in Malate which was licensed as a motel although duly accredited with the Department of Tourism as a hotel.6 On 28 June 1993, MTDC filed a Petition for Declaratory Relief with Prayer for a Writ of Preliminary Injunction and/or Temporary Restraining Order7 (RTC Petition) with the lower court impleading as defendants, herein petitioners City of Manila, Hon. Alfredo S. Lim (Lim), Hon. Joselito L. Atienza, and the members of the City Council of Manila (City Council). MTDC prayed that the Ordinance, insofar as it includes motels and inns as among its prohibited establishments, be declared invalid and unconstitutional. The Ordinance, hereunder: SECTION 1. Any provision of existing laws and ordinances to the contrary notwithstanding, no person, partnership, corporation or entity shall, in the Ermita-Malate area bounded by Teodoro M. Kalaw Sr. Street in the North, Taft Avenue in the East, Vito Cruz Street in the South and Roxas Boulevard in the West, pursuant to P.D. 499 be allowed or authorized to contract and engage in, any business providing certain forms of amusement, entertainment, services and facilities where women are used as tools in entertainment and which tend to disturb the community, annoy the inhabitants, and adversely affect the social and moral welfare of the community, such as but not limited to: 1. Sauna Parlors; 2. Massage Parlors; 3. Karaoke Bars; 4. Beerhouses; 5. Night Clubs; 6. Day Clubs; 7. Super Clubs; 8. Discotheques; 9. Cabarets; 10. Dance Halls; 11. Motels; 12. Inns. MTDC argued that the Ordinance erroneously and improperly included in its enumeration of prohibited establishments, motels and inns such as MTDC's Victoria Court considering that these were not establishments for "amusement" or "entertainment" and they were not "services or facilities for entertainment," nor did they use women as "tools for entertainment," and neither did they "disturb the community," "annoy the inhabitants" or "adversely affect the social and moral welfare of the community." MTDC further advanced that the Ordinance was invalid and unconstitutional for the following reasons: (1) The City Council has no power to prohibit the operation of motels as Section 458 (a) 4 (iv)12 of the Local Government Code of 1991 (the Code) grants to the City Council only the power to regulate the establishment, operation and maintenance of hotels, motels, inns, pension houses, lodging houses and other similar establishments; (2) The Ordinance is void as it is violative of Presidential Decree (P.D.) No. 49913 which specifically declared portions of the Ermita-Malate area as a commercial zone with certain restrictions; (3) The Ordinance does not constitute a proper exercise of police power as the compulsory closure of the motel business has no reasonable relation to the legitimate municipal interests sought to be protected; (4) The Ordinance constitutes an ex post facto law by punishing the operation of Victoria Court which was a legitimate business prior to its enactment; (5) The Ordinance violates MTDC's constitutional rights in that: (a) it is confiscatory and constitutes an invasion of plaintiff's property rights; (b) the City Council has no power to find as a fact that a particular thing is a nuisance per se nor does it have the power to extrajudicially destroy it; and (6) The Ordinance constitutes a denial of equal protection under the law as no reasonable basis exists for prohibiting the operation of motels and inns, but not pension houses, hotels, lodging houses or other similar establishments, and for prohibiting said business in the Ermita-Malate area but not outside of this area. Issue: Whether or not the city ordinance is unconstitutional. YES
Held: Ordinance contravenes the Constitution. The police power of the City Council, however broad and far-reaching, is subordinate to the constitutional limitations thereon; and is subject to the limitation that its exercise must be reasonable and for the public good.43 In the case at bar, the enactment of the Ordinance was an invalid exercise of delegated power as it is unconstitutional and repugnant to general laws. A. The Ordinance infringes the Due Process Clause Requisites for the valid exercise of Police Power are not met. To successfully invoke the exercise of police power as the rationale for the enactment of the Ordinance, and to free it from the imputation of constitutional infirmity, not only must it appear that the interests of the public generally, as distinguished from those of a particular class, require an interference with private rights, but the means adopted must be reasonably necessary for the accomplishment of the purpose and not unduly oppressive upon individuals.60 It must be evident that no other alternative for the accomplishment of the purpose less intrusive of private rights can work. A reasonable relation must exist between the purposes of the police measure and the means employed for its accomplishment, for even under the guise of protecting the public interest, personal rights and those pertaining to private property will not be permitted to be arbitrarily invaded. Means employed areconstitutionally infirm. It is readily apparent that the means employed by the Ordinance for the achievement of its purposes, the governmental interference itself, infringes on the constitutional guarantees of a person's fundamental right to liberty and property. Modality employed is unlawful takin. In addition, the Ordinance is unreasonable and oppressive as it substantially divests the respondent of the beneficial use of its property.77 The Ordinance in Section 1 thereof forbids the running of the enumerated businesses in the Ermita-Malate area and in Section 3 instructs its owners/ operators to wind up business operations or to transfer outside the area or convert said businesses into allowed businesses. An ordinance which permanently restricts the use of property that it can not be used for any reasonable purpose goes beyond regulation and must be recognized as a taking of the property without just compensation.78 It is intrusive and violative of the private property rights of individuals. B. The Ordinance violates Equal Protection Clause. Equal protection requires that all persons or things similarly situated should be treated alike, both as to rights conferred and responsibilities imposed. Similar subjects, in other words, should not be treated differently, so as to give undue favor to some and unjustly discriminate against others.98 The guarantee means that no person or class of persons shall be denied the same protection of laws which is enjoyed by other persons or other classes in like circumstances.99 The "equal protection of the laws is a pledge of the protection of equal laws."100 It limits governmental discrimination. The equal protection clause extends to artificial persons but only insofar as their property is concerned. The Court likewise cannot see the logic for prohibiting the business and operation of motels in the Ermita-Malate area but not outside of this area. A noxious establishment does not become any less noxious if located outside the area.
The Court likewise cannot see the logic for prohibiting the business and operation of motels in the Ermita-Malate area but not outside of this area. A noxious establishment does not become any less noxious if located outside the area. Conclusion All considered, the Ordinance invades fundamental personal and property rights and impairs personal privileges. It is constitutionally infirm. The Ordinance contravenes statutes; it is discriminatory and unreasonable in its operation; it is not sufficiently detailed and explicit that abuses may attend the enforcement of its sanctions. And not to be forgotten, the City Council under the Code had no power to enact the Ordinance and is therefore ultra vires, null and void. Concededly, the challenged Ordinance was enacted with the best of motives and shares the concern of the public for the cleansing of the Ermita-Malate area of its social sins. Police power legislation of such we reiterate ourcharacter deserves the full endorsement of the judiciary support for it. But inspite of its virtuous aims, the enactment of the Ordinance has no statutory or constitutional authority to stand on. Local legislative bodies, in this case, the City Council, cannot prohibit the operation of the enumerated establishments under Section 1 thereof or order their transfer or conversion without infringing the constitutional guarantees of not even under the guise of policedue process and equal protection of laws power. WHEREFORE, the Petition is hereby DENIED and the decision of the Regional Trial Court declaring the Ordinance void is AFFIRMED.
Held: The ordinance is valid. Ordinance No. 13, series of 1952, was passed by the Municipal Council of Virac in the exercise of its police power. It is a settled principle of law that municipal corporations are agencies of the State for the promotion and maintenance of local selfgovernment and as such are endowed with the police powers in order to effectively accomplish and carry out the declared objects of their creation. 3 Its authority emanates from the general welfare clause under the Administrative Code, which reads: The municipal council shall enact such ordinances and make such regulations, not repugnant to law, as may be necessary to carry into effect and discharge the powers and duties conferred upon it by law and such as shall seem necessary and proper to provide for the health and safety, promote the prosperity, improve the morals, peace, good order, comfort and convenience of the municipality and the inhabitants thereof, and for the protection of property therein. For an ordinance to be valid, it must not only be within the corporate powers of the municipality to enact but must also be passed according to the procedure prescribed by law, and must be in consonance with certain well established and basic principles of a substantive nature. These principles require that a municipal ordinance (1) must not contravene the Constitution or any statute (2) must not be unfair or oppressive (3) must not be partial or discriminatory (4) must not prohibit but may regulate trade (5) must be general and consistent with public policy, and (6) must not be unreasonable. 5 Ordinance No. 13, Series of 1952, meets these criteria. The objections interposed by the petitioner to the validity of the ordinance have not been substantiated. Its purpose is well within the objectives of sound government. No undue restraint is placed upon the petitioner or for anybody to engage in trade but merely a prohibition from storing inflammable products in the warehouse because of the danger of fire to the lives and properties of the people residing in the vicinity. As far as public policy is concerned, there can be no better policy than what has been conceived by the municipal government. WHEREFORE, for lack of merit, the petition is hereby DISMISSED.
Issue: Whether or not the resolution no. 210 section 8 of BATANGAS CITY which provides that any increase of rates shall be subject to the approval of the Sangguniang Panlungsod is valid. Held: Section 8 of the Resolution is invalid. The right of plaintiff in fixing its service rates needs no prior approval of the Sangguniang Panlungsod of Batangas City. While Republic Act No. 7160, the Local Government Code of 1991, extends to the LGUs the general power to perform any act that will benefit their constituents, nonetheless, it does not authorize them to regulate the CATV operation. Pursuant to E.O. No. 205, only the NTC has the authority to regulate the CATV operation, including the fixing of subscriber rates. Resolution No. 210 is an enactment of an LGU acting only as agent of the national legislature. Necessarily, its act must reflect and conform to the will of its principal. To test its validity, we must apply the particular requisites of a valid ordinance as laid down by the accepted principles governing municipal corporations. Speaking for the Court in the leading case of United States vs. Abendan,37 Justice Moreland said: "An ordinance enacted by virtue of the general welfare clause is valid, unless it contravenes the fundamental law of the Philippine Islands, or an Act of the Philippine Legislature, or unless it is against public policy, or is unreasonable, oppressive, partial, discriminating, or in derogation of common right." In De la Cruz vs. Paraz,38 we laid the general rule "that ordinances passed by virtue of the implied power found in the general welfare clause must be reasonable, consonant with the general powers and purposes of the corporation, and not inconsistent with the laws or policy of the State." The apparent defect in Resolution No. 210 is that it contravenes E.O. No. 205 and E.O. No. 436 insofar as it permits respondent Sangguniang Panlungsod to usurp a power exclusively vested in the NTC, i.e., the power to fix the subscriber rates charged by CATV operators. As earlier discussed, the fixing of subscriber rates is definitely one of the matters within the NTCs exclusive domain. In this regard, it is appropriate to stress that where the state legislature has made provision for the regulation of conduct, it has manifested its intention that the subject matter shall be fully covered by the statute, and that a municipality, under its general powers, cannot regulate the same conduct. In Keller vs. State, it was held that: "Where there is no express power in the charter of a municipality authorizing it to adopt ordinances regulating certain matters which are specifically covered by a general statute, a municipal ordinance, insofar as it attempts to regulate the subject which is completely covered by a general statute of the legislature, may be rendered invalid. x x x Where the subject is of statewide concern, and the legislature has appropriated the field and declared the rule, its declaration is binding throughout the State." A reason advanced for this view is that such ordinances are in excess of the powers granted to the municipal corporation. Since E.O. No. 205, a general law, mandates that the regulation of CATV operations shall be exercised by the NTC, an LGU cannot enact an ordinance or approve a resolution in violation of the said law. It is a fundamental principle that municipal ordinances are inferior in status and subordinate to the laws of the state. An ordinance in conflict with a state law of general character and statewide application is universally held to be invalid.42 The principle is frequently expressed in the
declaration that municipal authorities, under a general grant of power, cannot adopt ordinances which infringe the spirit of a state law or repugnant to the general policy of the state.43 In every power to pass ordinances given to a municipality, there is an implied restriction that the ordinances shall be consistent with the general law. Resolution No. 210 violated the States deregulation policy. Deregulation is the reduction of government regulation of business to permit freer markets and competition.50 Oftentimes, the State, through its regulatory agencies, carries out a policy of deregulation to attain certain objectives or to address certain problems. In the field of telecommunications, it is recognized that many areas in the Philippines are still "unserved" or "underserved." Thus, to encourage private sectors to venture in this field and be partners of the government in stimulating the growth and development of telecommunications, the State promoted the policy of deregulation. There is no law specifically authorizing the LGUs to grant franchises to operate CATV system. Whatever authority the LGUs had before, the same had been withdrawn when President Marcos issued P.D. No. 1512 "terminating all franchises, permits or certificates for the operation of CATV system previously granted by local governments." Today, pursuant to Section 3 of E.O. No. 436, "only persons, associations, partnerships, corporations or cooperatives granted a Provisional Authority or Certificate of Authority by the NTC may install, operate and maintain a cable television system or render cable television service within a service area." It is clear that in the absence of constitutional or legislative authorization, municipalities have no power to grant franchises. Consequently, the protection of the constitutional provision as to impairment of the obligation of a contract does not extend to privileges, franchises and grants given by a municipality in excess of its powers, or ultra vires. WHEREFORE, the petition is GRANTED. The RTC Decision in Civil Case No. 4254 is AFFIRMED.
unredeemed TVRs were given seven days from the date of implementation of the new system to pay their fines and redeem their license or vehicle plates. It would seem, therefore, that insofar as the petitioner from confiscating drivers' licenses is Court's need to decide this case, which has implementation of Memorandum Circular No. 04, absence of a prima facie case to enjoin the concerned, recent events have overtaken the been rendered moot and academic by the Series of 2004.
for the purpose of laying down policies and coordinating with the various national government agencies, people's organizations, non-governmental organizations and the private sector for the efficient and expeditious delivery of basic services in the vast metropolitan area. All its functions are administrative in nature and these are actually summed up in the charter itself. Thus, where there is a traffic law or regulation validly enacted by the legislature or those agencies to whom legislative powers have been delegated (the City of Manila in this case), the petitioner is not precluded and in fact is duty-bound to confiscate and suspend or revoke drivers' licenses in the exercise of its mandate of transport and traffic management, as well as the administration and implementation of all traffic enforcement operations, traffic engineering services and traffic education programs. WHEREFORE, the petition is dismissed.
The petitioner, however, is not precluded from re-implementing Memorandum Circular No. TT95-001, or any other scheme, for that matter, that would entail confiscating drivers' licenses. For the proper implementation, therefore, of the petitioner's future programs, this Court deems it appropriate to make the following observations: 1. A license to operate a motor vehicle is a privilege that the state may withhold in the exercise of its police power. The petitioner correctly points out that a license to operate a motor vehicle is not a property right, but a privilege granted by the state, which may be suspended or revoked by the state in the exercise of its police power, in the interest of the public safety and welfare, subject to the procedural due process requirements. This is consistent with our rulings in Pedro v. Provincial Board of Rizal8 on the license to operate a cockpit, Tan v. Director of Forestry9 and Oposa v. Factoran10 on timber licensing agreements, and Surigao Electric Co., Inc. v. Municipality of Surigao11 on a legislative franchise to operate an electric plant. 2. The MMDA is not vested with police power. In Metro Manila Development Authority v. Bel-Air Village Association, Inc.,14 we categorically stated that Rep. Act No. 7924 does not grant the MMDA with police power, let alone legislative power, and that all its functions are administrative in nature. We restate here the doctrine in the said decision as it applies to the case at bar: police power, as an inherent attribute of sovereignty, is the power vested by the Constitution in the legislature to make, ordain, and establish all manner of wholesome and reasonable laws, statutes and ordinances, either with penalties or without, not repugnant to the Constitution, as they shall judge to be for the good and welfare of the commonwealth, and for the subjects of the same. Having been lodged primarily in the National Legislature, it cannot be exercised by any group or body of individuals not possessing legislative power. The National Legislature, however, may delegate this power to the president and administrative boards as well as the lawmaking bodies of municipal corporations or local government units (LGUs). Once delegated, the agents can exercise only such legislative powers as are conferred on them by the national lawmaking body. [T]he powers of the MMDA are limited to the following acts: formulation, coordination, regulation, implementation, preparation, management, monitoring, setting of policies, installation of a system and administration. There is no syllable in R. A. No. 7924 that grants the MMDA police power, let alone legislative power. Even the Metro Manila Council has not been delegated any legislative power. Unlike the legislative bodies of the local government units, there is no provision in R. A. No. 7924 that empowers the MMDA or its Council to "enact ordinances, approve resolutions and appropriate funds for the general welfare" of the inhabitants of Metro Manila. The MMDA is, as termed in the charter itself, a "development authority." It is an agency created