1oday |s Wodnosday, lovombor 21, 2012

lopub||c ot tho lh|||pp|nos

5uPRENE COuR1
Van||a
El 3AlC
C.R. No. L-24440 Narch 28, 1008
1EE PROV|NCE OF ZANBOANCADEL NOR1E, p|a|nt|tt-appo||oo,
vs.
C|1Y OF ZANBOANCA, 5ECRE1ARY OF F|NANCE and CONN|55|ONER OF |N1ERNAL REVENuE,
dotondants-appo||ants.
lortogo|ozo, Looo, 5ormlooto, V. 7. Yop & Assoclotos or p|olotl-oppo||oo.
Olco o tbo 5o|lcltor Ooooro| or ooooooots-oppo||oots.
BENCZON, J.P.,
lr|or to |ts |ncorporat|on as a chartorod c|ty, tho Vun|c|pa||ty ot Zamboanga usod to bo tho prov|nc|a| cap|ta|
ot tho thon Zamboanga lrov|nco. On Octobor 12, 1080, Commonwoa|th Act 80 was approvod convort|ng tho
Vun|c|pa||ty ot Zamboanga |nto Zamboanga C|ty. 3oc. b0 ot tho Act a|so prov|dod that -
3u||d|ngs and proport|os wh|ch tho prov|nco sha|| abandon upon tho transtor ot tho cap|ta| to anothor
p|aco w||| bo acqu|rod and pa|d tor by tho C|ty ot Zamboanga at a pr|co to bo t|xod by tho Aud|tor Gonora|.
1ho proport|os and bu||d|ngs rotorrod to cons|stod ot b0 |ots and somo bu||d|ngs constructod thoroon,
|ocatod |n tho C|ty ot Zamboanga and covorod |nd|v|dua||y by 1orrons cort|t|catos ot t|t|o |n tho namo ot
Zamboanga lrov|nco. As tar as can bo g|oanod trom tho rocords,
1
sa|d proport|os woro bo|ng ut|||zod as to||ows
-
No. o Lots Uso
1 ................................................ Cap|to| 3|to
8 ................................................ 3choo| 3|to
8 ................................................ |osp|ta| 3|to
8 ................................................ loprosar|um
1 ................................................ Curuan 3choo|
1 ................................................ 1rado 3choo|
2 ................................................ 3ur|o|gh 3choo|
2 ................................................ ||gh 3choo| l|ayground
0 ................................................ 3ur|o|ghs
1 ................................................ |ydro-E|octr|c 3|to (Vagay)
1 ................................................ 3an loquo
28 ................................................ vacant
lt appoars that |n 104b, tho cap|ta| ot Zamboanga lrov|nco was transtorrod to 0|po|og.
2
3ubsoquont|y, or
on 1uno 10, 1048, lopub||c Act 280 was approvod croat|ng tho mun|c|pa||ty ot Vo|avo and mak|ng |t tho cap|ta| ot
Zamboanga lrov|nco.
On Vay 20, 1040, tho Appra|sa| Comm|ttoo tormod by tho Aud|tor Gonora|, pursuant to Commonwoa|th Act
80, t|xod tho va|uo ot tho proport|os and bu||d|ngs |n quost|on |ott by Zamboanga lrov|nco |n Zamboanga C|ty at
l1,204,244.00.
8
On 1uno 0, 10b2, lopub||c Act 711 was approvod d|v|d|ng tho prov|nco ot Zamboanga |nto two (2):
Zamboanga do| lorto and Zamboanga do| 3ur. As to how tho assots and ob||gat|ons ot tho o|d prov|nco woro to bo
d|v|dod botwoon tho two now onos, 3oc. 0 ot that |aw prov|dod:
Upon tho approva| ot th|s Act, tho tunds, assots and othor proport|os and tho ob||gat|ons ot tho
prov|nco ot Zamboanga sha|| bo d|v|dod oqu|tab|y botwoon tho lrov|nco ot Zamboanga do| lorto and tho
lrov|nco ot Zamboanga do| 3ur by tho lros|dont ot tho lh|||pp|nos, upon tho rocommondat|on ot tho Aud|tor
Gonora|.
lursuant thoroto, tho Aud|tor Gonora|, on 1anuary 11, 10bb, apport|onod tho assots and ob||gat|ons ot tho
dotunct lrov|nco ot Zamboanga as to||ows: b4.80% tor Zamboanga do| lorto and 4b.01% tor Zamboanga do| 3ur.
Zamboanga do| lorto thorotoro bocamo ont|t|od to b4.80% ot l1,204,244.00, tho tota| va|uo ot tho |ots and
bu||d|ngs |n quost|on, or l704,220.0b payab|o by Zamboanga C|ty.
On Varch 17, 10b0, tho Exocut|vo 3ocrotary, by ordor ot tho lros|dont, |ssuod a ru||ng
4
ho|d|ng that
Zamboanga do| lorto had a vostod r|ght as ownor (shou|d bo co-ownor pro-loolvlso) ot tho proport|os mont|onod
|n 3oc. b0 ot Commonwoa|th Act 80, and |s ont|t|od to tho pr|co thoroot, payab|o by Zamboanga C|ty. 1h|s ru||ng
rovokod tho prov|ous Cab|not loso|ut|on ot 1u|y 18, 10b1 convoy|ng a|| tho sa|d b0 |ots and bu||d|ngs thoroon to
Zamboanga C|ty tor l1.00, ottoct|vo as ot 104b, whon tho prov|nc|a| cap|ta| ot tho thon Zamboanga lrov|nco was
transtorrod to 0|po|og.
1ho 3ocrotary ot ||nanco thon author|zod tho Comm|ss|onor ot lntorna| lovonuo to doduct an amount
|awph||
convortoo by wob2blConvort.com
oqua| to 2b% ot tho rogu|ar |ntorna| rovonuo a||otmont tor tho C|ty ot Zamboanga tor tho quartor ond|ng Varch 81,
1000, thon tor tho quartor ond|ng 1uno 80, 1000, and aga|n tor tho t|rst quartor ot tho t|sca| yoar 1000-1001. 1ho
doduct|ons, a|| aggrogat|ng lb7,878.40, was crod|tod to tho prov|nco ot Zamboanga do| lorto, |n part|a| paymont
ot tho l704,220.0b duo |t.
|owovor, on 1uno 17, 1001, lopub||c Act 8080 was approvod amond|ng 3oc. b0 ot Commonwoa|th Act 80
by prov|d|ng that -
A|| bu||d|ngs, proport|os and assots bo|ong|ng to tho tormor prov|nco ot Zamboanga and |ocatod w|th|n
tho C|ty ot Zamboanga aro horoby transtorrod, troo ot chargo, |n tavor ot tho sa|d C|ty ot Zamboanga.
(3trossod tor omphas|s).
Consoquont|y, tho 3ocrotary ot ||nanco, on 1u|y 12, 1001, ordorod tho Comm|ss|onor ot lntorna| lovonuo
to stop trom ottoct|ng turthor paymonts to Zamboanga do| lorto and to roturn to Zamboanga C|ty tho sum ot
lb7,878.40 takon trom |t out ot tho |ntorna| rovonuo a||otmont ot Zamboanga do| lorto. Zamboanga C|ty adm|ts
that s|nco tho onactmont ot lopub||c Act 8080, l48,080.11 ot tho lb7,878.40 has a|roady boon roturnod to |t.
1h|s constra|nod p|a|nt|tt-appo||oo Zamboanga do| lorto to t||o on Varch b, 1002, a comp|a|nt ont|t|od
0oc|aratory lo||ot w|th lro||m|nary Vandatory lnjunct|on |n tho Court ot ||rst lnstanco ot Zamboanga do| lorto
aga|nst dotondants-appo||ants Zamboanga C|ty, tho 3ocrotary ot ||nanco and tho Comm|ss|onor ot lntorna|
lovonuo. lt was prayod that: (a) lopub||c Act 8080 bo doc|arod unconst|tut|ona| tor dopr|v|ng p|a|nt|tt prov|nco ot
proporty w|thout duo procoss and just componsat|on, (b) l|a|nt|tt's r|ghts and ob||gat|ons undor sa|d |aw bo
doc|arod, (c) 1ho 3ocrotary ot ||nanco and tho lntorna| lovonuo Comm|ss|onor bo onjo|nod trom ro|mburs|ng tho
sum ot lb7,878.40 to dotondant C|ty, and (d) 1ho |attor bo ordorod to cont|nuo pay|ng tho ba|anco ot
l704,220.0b |n quartor|y |nsta||monts ot 2b% ot |ts |ntorna| rovonuo a||otmonts.
On 1uno 4, 1002, tho |owor court ordorod tho |ssuanco ot pro||m|nary |njunct|on as prayod tor. Attor
dotondants t||od tho|r rospoct|vo answors, tr|a| was ho|d. On August 12, 1008, judgmont was rondorod, tho
d|spos|t|vo port|on ot wh|ch roads:
W|ElE|OlE, judgmont |s horoby rondorod doc|ar|ng lopub||c Act lo. 8080 unconst|tut|ona| |nsotar
as |t dopr|vos p|a|nt|tt Zamboanga do| lorto ot |ts pr|vato proport|os, cons|st|ng ot b0 parco|s ot |and and tho
|mprovomonts thoroon undor cort|t|catos ot t|t|o (Exh|b|ts A to A-40) |n tho namo ot tho dotunct prov|nco
ot Zamboanga, ordor|ng dotondant C|ty ot Zamboanga to pay to tho p|a|nt|tt tho sum ot l704,220.0b
paymont thoroot to bo doductod trom |ts rogu|ar quartor|y |ntorna| rovonuo a||otmont oqu|va|ont to 2b%
thoroot ovory quartor unt|| sa|d amount sha|| havo boon tu||y pa|d, ordor|ng dotondant 3ocrotary ot ||nanco
to d|roct dotondant Comm|ss|onor ot lntorna| lovonuo to doduct 2b% trom tho rogu|ar quartor|y |ntorna|
rovonuo a||otmont tor dotondant C|ty ot Zamboanga and to rom|t tho samo to p|a|nt|tt Zamboanga do| lorto
unt|| sa|d sum ot l704,220.0b sha|| havo boon tu||y pa|d, ordor|ng p|a|nt|tt Zamboanga do| lorto to oxocuto
through |ts propor ott|c|a|s tho corrospond|ng pub||c |nstrumont dood|ng to dotondant C|ty ot Zamboanga tho
b0 parco|s ot |and and tho |mprovomonts thoroon undor tho cort|t|catos ot t|t|o (Exh|b|ts A to A-40) upon
paymont by tho |attor ot tho atorosa|d sum ot l704,220.0b |n tu||, d|sm|ss|ng tho countorc|a|m ot dotondant
C|ty ot Zamboanga, and doc|ar|ng pormanont tho pro||m|nary mandatory |njunct|on |ssuod on 1uno 8, 1002,
pursuant to tho ordor ot tho Court datod 1uno 4, 1002. lo costs aro assossod aga|nst tho dotondants.
lt |s 3O Ol0ElE0.
3ubsoquont|y, but pr|or to tho portoct|on ot dotondants' appoa|, p|a|nt|tt prov|nco t||od a mot|on to rocons|dor
pray|ng that Zamboanga C|ty bo ordorod |nstoad to pay tho l704,220.0b lo |omp som w|th 0% |ntorost por annum.
Ovor dotondants' oppos|t|on, tho |owor court grantod p|a|nt|tt prov|nco's mot|on.
1ho dotondants thon brought tho caso botoro Us on appoa|.
3rush|ng as|do tho procodura| po|nt concorn|ng tho proporty ot doc|aratory ro||ot t||od |n tho |owor court on
tho assort|on that tho |aw had a|roady boon v|o|atod and that p|a|nt|tt sought to g|vo |t coorc|vo ottoct, s|nco
assum|ng tho samo to bo truo, tho lu|os anyway author|zo tho convors|on ot tho procood|ngs to an ord|nary
act|on,
b
Wo procood to tho moro |mportant and pr|nc|pa| quost|on ot tho va||d|ty ot lopub||c Act 8080.
1ho va||d|ty ot tho |aw u|t|mato|y doponds on tho naturo ot tho b0 |ots and bu||d|ngs thoroon |n quost|on. |or,
tho mattor |nvo|vod horo |s tho oxtont ot |og|s|at|vo contro| ovor tho proport|os ot a mun|c|pa| corporat|on, ot wh|ch
a prov|nco |s ono. 1ho pr|nc|p|o |tso|t |s s|mp|o: lt tho proporty |s ownod by tho mun|c|pa||ty (moan|ng mun|c|pa|
corporat|on) |n |ts pub||c and govornmonta| capac|ty, tho proporty |s pub||c and Congross has obso|oto cootro|
ovor |t. 3ut |t tho proporty |s ownod |n |ts pr|vato or propr|otary capac|ty, thon |t |s patr|mon|a| and Congross has no
abso|uto contro|. 1ho mun|c|pa||ty cannot bo dopr|vod ot |t w|thout duo procoss and paymont ot just componsat|on.
0
1ho capac|ty |n wh|ch tho proporty |s ho|d |s, howovor, dopondont on tho uso to wh|ch |t |s |ntondod and
dovotod. low, wh|ch ot two norms, |.o., that ot tho C|v|| Codo or that obta|n|ng undor tho |aw ot Vun|c|pa|
Corporat|ons, must bo usod |n c|ass|ty|ng tho proport|os |n quost|on?
1ho C|v|| Codo c|ass|t|cat|on |s ombod|od |n |ts Arts. 428 and 424 wh|ch prov|do:1wpb 1. t
Al1. 428. 7bo proporty o provlocos, cltlos, ooo moolclpo|ltlos ls olvlooo loto proporty or pob|lc oso
ooo potrlmoolo| proporty.
Al1. 424. lroporty tor pub||c uso, |n tho prov|ncos, c|t|os, and mun|c|pa||t|os, cons|sts ot tho prov|nc|a|
roads, c|ty stroots, mun|c|pa| stroots, tho squaros, tounta|ns, pub||c wators, promonados, and pub||c works
tor pub||c sorv|co pa|d tor by sa|d prov|ncos, c|t|os, or mun|c|pa||t|os.
A|| otbor proporty possossoo by ooy o tbom ls potrlmoolo| and sha|| bo govornod by th|s Codo, w|thout
projud|co to tho prov|s|ons ot spoc|a| |aws. (3trossod tor omphas|s).
App|y|ng tho abovo c|tod norm, a|| tho proport|os |n quost|on, oxcopt tho two (2) |ots usod as ||gh 3choo|
p|aygrounds, cou|d bo cons|dorod as patr|mon|a| proport|os ot tho tormor Zamboanga prov|nco. Evon tho cap|ta|
s|to, tho hosp|ta| and |oprosar|um s|tos, and tho schoo| s|tos w||| bo cons|dorod patr|mon|a| tor thoy aro not tor
pub||c uso. 1hoy wou|d ta|| undor tho phraso pub||c works tor pub||c sorv|co tor |t has boon ho|d that undor tho
ojosoom gooorls ru|o, such pub||c works must bo tor roo ooo loolscrlmlooto oso by ooyooo, just ||ko tho procod|ng
convortoo by wob2blConvort.com
onumoratod proport|os |n tho t|rst paragraph ot Art 424.
7
1ho p|aygrounds, howovor, wou|d t|t |nto th|s catogory.
1h|s was tho norm app||od by tho |owor court. And |t cannot bo sa|d that |ts actuat|on was w|thout
jur|sprudont|a| procodont tor |n Voolclpo|lty o Cotbo|ogoo v. Llroctor o Looos,
8
and |n Voolclpo|lty o 7oc|oboo v.
Llroctor o Looos,
0
|t was ho|d that tho cap|to| s|to and tho schoo| s|tos |n mun|c|pa||t|os const|tuto tho|r patr|mon|a|
proport|os. 1h|s rosu|t |s undorstandab|o bocauso, un||ko |n tho c|ass|t|cat|on rogard|ng 3tato proport|os,
proport|os tor pub||c sorv|co |n tho mun|c|pa||t|os aro not c|ass|t|od as pub||c. Assum|ng thon tho C|v|| Codo
c|ass|t|cat|on to bo tho choson norm, tho |owor court must bo att|rmod oxcopt w|th rogard to tho two (2) |ots usod
as p|aygrounds.
On tho othor hand, app|y|ng tho norm obta|n|ng undor tho pr|nc|p|os const|tut|ng tho |aw ot Vun|c|pa|
Corporat|ons, a|| thoso ot tho b0 proport|os |n quost|on wh|ch aro dovotod to pub||c sorv|co aro doomod pub||c, tho
rost roma|n patr|mon|a|. Undor th|s norm, to bo cons|dorod pub||c, |t |s onough that tho proporty bo ho|d and,
dovotod tor govornmonta| purposos ||ko |oca| adm|n|strat|on, pub||c oducat|on, pub||c hoa|th, otc.
10
3upport|ng jur|sprudonco aro tound |n tho to||ow|ng casos: (1) |llUlAlGAl v. 0llEC1Ol O| lAl03,
11
whoro |t was statod that ... whoro tho mun|c|pa||ty has occup|od |ands d|st|nct|y tor pub||c purposos, such as tor
tho mun|c|pa| court houso, tho pub||c schoo|, tho pub||c markot, or othor nocossary mun|c|pa| bu||d|ng, wo w|||, |n
tho absonco ot proot to tho contrary, prosumo a grant trom tho 3tatos |n tavor ot tho mun|c|pa||ty, but, as |nd|catod
by tho word|ng, that ru|o may bo |nvokod on|y as to proporty wh|ch |s usod d|st|nct|y tor pub||c purposos.... (2)
vlU0A 0E 1Al1OCO v. VUllCllAl COUlCll O| llOllO
1 2
ho|d that mun|c|pa| proport|os nocossary tor
govornmonta| purposos aro pub||c |n naturo. 1hus, tho auto trucks usod by tho mun|c|pa||ty tor stroot spr|nk||ng,
tho po||co patro| automob||o, po||co stat|ons and concroto structuros w|th tho corrospond|ng |ots usod as markots
woro doc|arod oxompt trom oxocut|on and attachmont s|nco thoy woro not patr|mon|a| proport|os. (8)
VUllCllAll1Y O| 3A1AlGA3 v3. CAl1O3
18
ho|d squaro|y that a mun|c|pa| |ot wh|ch had a|ways boon dovotod
to schoo| purposos |s ono dod|catod to pub||c uso and |s not patr|mon|a| proporty ot a mun|c|pa||ty.
|o||ow|ng th|s c|ass|t|cat|on, lopub||c Act 8080 |s va||d |nsotar as |t attocts tho |ots usod as cap|to| s|to,
schoo| s|tos and |ts grounds, hosp|ta| and |oprosar|um s|tos and tho h|gh schoo| p|ayground s|tos - a tota| ot 24
|ots - s|nco thoso woro ho|d by tho tormor Zamboanga prov|nco |n |ts govornmonta| capac|ty and thorotoro aro
subjoct to tho abso|uto contro| ot Congross. 3a|d |ots cons|dorod as pub||c proporty aro tho to||ow|ng:
7C7 Nombor Lot Nombor U s o
2200 ...................................... 4-3 ...................................... Cap|to| 3|to
2810 ...................................... 140 ...................................... 3choo| 3|to
8281 ...................................... 1224 ...................................... |osp|ta| 3|to
8282 ...................................... 1220 ...................................... |osp|ta| 3|to
8288 ...................................... 122b ...................................... |osp|ta| 3|to
8748 ...................................... 484-A-1 ...................................... 3choo| 3|to
b400 ...................................... 171 ...................................... 3choo| 3|to
bb04 ...................................... 108 ...................................... ||gh 3choo| l|ay-ground
bb07 ...................................... 1b7 8 1b8 ...................................... 1rado 3choo|
bb88 ...................................... 107 ...................................... ||gh 3choo| l|ay-ground
0181 ...................................... (O.C.1.) ...................................... Curuan 3choo|
11042 ...................................... 020 ...................................... loprosar|um
11048 ...................................... 027 ...................................... loprosar|um
11044 ...................................... 02b ...................................... loprosar|um
bbb7 ...................................... 170 ...................................... 3ur|o|gh 3choo|
bb02 ...................................... 180 ...................................... 3ur|o|gh 3choo|
bb0b ...................................... 172-3 ...................................... 3ur|o|gh
bb70 ...................................... 171-A ...................................... 3ur|o|gh
bb71 ...................................... 172-C ...................................... 3ur|o|gh
bb72 ...................................... 174 ...................................... 3ur|o|gh
bb78 ...................................... 178 ...................................... 3ur|o|gh
bb8b ...................................... 171-3 ...................................... 3ur|o|gh
bb80 ...................................... 178 ...................................... 3ur|o|gh
bb87 ...................................... 172-A ...................................... 3ur|o|gh
Wo not|cod that tho o|ght 3ur|o|gh |ots abovo doscr|bod aro adjo|n|ng oach othor and |n turn aro botwoon
tho two |ots whoro|n tho 3ur|o|gh schoo|s aro bu||t, as por rocords appoar|ng horo|n and |n tho 3uroau ot lands.
|onco, thoro |s sutt|c|ont bas|s tor ho|d|ng that sa|d o|ght |ots const|tuto tho appurtonant grounds ot tho 3ur|o|gh
schoo|s, and partako ot tho naturo ot tho samo.
logard|ng tho sovora| bu||d|ngs ox|st|ng on tho |ots abovo-mont|onod, tho rocords do not d|sc|oso whothor
thoy woro constructod at tho oxponso ot tho tormor lrov|nco ot Zamboanga. Cons|dor|ng howovor tho tact that
sa|d bu||d|ngs must havo boon oroctod ovon botoro 1080 whon Commonwoa|th Act 80 was onactod and tho turthor
tact that prov|ncos thon had no powor to author|zo construct|on ot bu||d|ngs such as thoso |n tho caso at bar ot
tbolr owo oxpooso,
14
|t can bo assumod that sa|d bu||d|ngs woro oroctod by tho lat|ona| Govornmont, us|ng
nat|ona| tunds. |onco, Congross cou|d vory wo|| d|sposo ot sa|d bu||d|ngs |n tho samo mannor that |t d|d w|th tho
|ots |n quost|on.
3ut ovon assum|ng that prov|nc|a| tunds woro usod, st||| tho bu||d|ngs const|tuto moro accossor|os to tho
|ands, wblcb oro pob|lc lo ootoro, and so, thoy to||ow tho naturo ot sa|d |ands, |.o., pob|lc. Voroovor, sa|d bu||d|ngs,
though |ocatod |n tho c|ty, w||| not bo tor tho oxc|us|vo uso and bonot|t ot c|ty ros|donts tor thoy cou|d bo ava||od ot
a|so by tho prov|nc|a| ros|donts. 1ho prov|nco thon - and |ts succossors-|n-|ntorost - aro not roa||y dopr|vod ot
tho bonot|ts thoroot.
convortoo by wob2blConvort.com
3ut lopub||c Act 8080 cannot bo app||od to dopr|vo Zamboanga do| lorto ot |ts sharo |n tho va|uo ot tho
rost ot tho 20 roma|n|ng |ots wh|ch aro patr|mon|a| proport|os s|nco thoy aro not bo|ng ut|||zod tor d|st|nct|y,
govornmonta| purposos. 3a|d |ots aro:
7C7 Nombor Lot Nombor U s o
bb77 ...................................... 177 ...................................... Vydro, Vagay
18108 ...................................... 127-0 ...................................... 3an loquo
bb00 ...................................... 100 ......................................
3ur|o|gh
1b
bbb8 ...................................... 17b ...................................... vacant
bbb0 ...................................... 188 ......................................
bb00 ...................................... 188 ......................................
bb01 ...................................... 180 ......................................
bb08 ...................................... 101 ......................................
bb00 ...................................... 170 ......................................
bb08 ...................................... 170 ......................................
bb74 ...................................... 100 ......................................
bb7b ...................................... 181-A ......................................
bb70 ...................................... 181-3 ......................................
bb78 ...................................... 182 ......................................
bb70 ...................................... 107 ......................................
bb80 ...................................... 10b ......................................
bb81 ...................................... 1b0-3 ......................................
bb82 ...................................... 104 ......................................
bb84 ...................................... 100 ......................................
bb88 ...................................... 184 ......................................
bb80 ...................................... 187 ......................................
bb00 ...................................... 180 ......................................
bb01 ...................................... 102 ......................................
bb02 ...................................... 108 ......................................
bb08 ...................................... 18b ......................................
7870 ...................................... 4147 ......................................
Voroovor, tho tact that thoso 20 |ots aro roglstoroo strongthons tho propos|t|on that thoy aro tru|y pr|vato |n
naturo. On tho othor hand, that tho 24 |ots usod tor govornmonta| purposos aro a|so rog|storod |s ot no
s|gn|t|canco s|nco rog|strat|on cannot convort pub||c proporty to pr|vato.
10
Wo aro moro |nc||nod to upho|d th|s |attor v|ow. 1ho controvorsy horo |s moro a|ong tho doma|ns ot tho law
ot Vun|c|pa| Corporat|ons - 5toto vs. Provloco - than a|ong that ot C|v|| law. Voroovor, th|s Court |s not |nc||nod
to ho|d that mun|c|pa| proporty ho|d and dovotod to pub||c sorv|co |s |n tho samo catogory as ord|nary pr|vato
proporty. 1ho consoquoncos aro d|ro. As ord|nary pr|vato proport|os, thoy can bo |ov|od upon and attachod. 1hoy
can ovon bo acqu|rod thru advorso possoss|on - a|| thoso to tho dotr|mont ot tho |oca| commun|ty. last|y, tho
c|ass|t|cat|on ot proport|os othor than thoso tor pub||c uso |n tho mun|c|pa||t|os as patr|mon|a| undor Art. 424 ot tho
C|v|| Codo - |s ... w|thout projud|co to tho prov|s|ons ot spoc|a| |aws. |or purposo ot th|s art|c|o, tho pr|nc|p|os,
obta|n|ng undor tho law ot Vun|c|pa| Corporat|ons can bo cons|dorod as spoc|a| |aws. |onco, tho c|ass|t|cat|on
ot mun|c|pa| proporty dovotod tor d|st|nct|y govornmonta| purposos as pub||c shou|d prova|| ovor tho C|v|| Codo
c|ass|t|cat|on |n th|s part|cu|ar caso.
0otondants' c|a|m that p|a|nt|tt and |ts prodocossor-|n-|ntorost aro gu||ty ot |achos |s w|thout mor|t. Undor
Commonwoa|th Act 80, 3oc. b0, tho causo ot act|on |n tavor ot tho dotunct Zamboanga lrov|nco aroso on|y |n
1040 attor tho Aud|tor Gonora| t|xod tho va|uo ot tho proport|os |n quost|on. Wh||o |n 10b1, tho Cab|not roso|vod
transtor sa|d proport|os pract|ca||y tor troo to Zamboanga C|ty, a rocons|dorat|on thoroot was soasonab|y sought.
ln 10b2, tho o|d prov|nco was d|sso|vod. As succossor-|n-|ntorost to moro than ha|t ot tho proport|os |nvo|vod,
Zamboanga do| lorto was ab|o to got a rocons|dorat|on ot tho Cab|not loso|ut|on |n 10b0. ln tact, part|a|
paymonts woro ottoctod subsoquont|y and |t was on|y attor tho passago ot lopub||c Act 8080 |n 1001 that tho
prosont controvorsy aroso. l|a|nt|tt brought su|t |n 1002. A|| tho torogo|ng, nogat|vo |achos.
lt rosu|ts thon that Zamboanga do| lorto |s st||| ont|t|od to co||oct trom tho C|ty ot Zamboanga tho tormor's
b4.80% sharo |n tho 20 proport|os wh|ch aro patr|mon|a| |n naturo, sa|d sharo to computod on tho bas|s ot tho
va|uat|on ot sa|d 20 proport|os as conta|nod |n loso|ut|on lo. 7, datod Varch 20, 1040, ot tho Appra|sa|
Comm|ttoo tormod by tho Aud|tor Gonora|.
l|a|nt|tt's sharo, howovor, cannot bo pa|d |n |ump sum, oxcopt as to tho l48,080.11 a|roady roturnod to
dotondant C|ty. 1ho roturn ot sa|d amount to dotondant was w|thout |oga| bas|s. lopub||c Act 8080 took ottoct on|y
on 1uno 17, 1001 attor a part|a| paymont ot lb7,878.40 had a|roady boon mado. 3|nco tho |aw d|d not prov|do tor
rotroact|v|ty, |t cou|d not havo va||d|y attoctod a comp|otod act. |onco, tho amount ot l48,080.11 shou|d bo
|mmod|ato|y roturnod by dotondant C|ty to p|a|nt|tt prov|nco. 1ho roma|n|ng ba|anco, |t any, |n tho amount ot
p|a|nt|tt's b4.80% sharo |n tho 20 |ots shou|d thon bo pa|d by dotondant C|ty |n tho samo mannor or|g|na||y
adoptod by tho 3ocrotary ot ||nanco and tho Comm|ss|onor ot lntorna| lovonuo, and not |n |ump sum. l|a|nt|tt's
prayor, part|cu|ar|y pars. b and 0, road togothor w|th pars. 10 and 11 ot tho t|rst causo ot act|on roc|tod |n tho
comp|a|nt
17
c|oar|y shows that tho ro||ot sought was moro|y tho cont|nuanco ot tho quartor|y paymonts trom tho
|ntorna| rovonuo a||otmonts ot dotondant C|ty. Art. 1100 ot tho C|v|| Codo on roc|proca| ob||gat|ons |nvokod by
p|a|nt|tt to just|ty |ump sum paymont |s |napp||cab|o s|nco thoro has boon so tar |n |oga| contomp|at|on no comp|oto
do||vory ot tho |ots |n quost|on. 1ho t|t|os to tho rog|storod |ots aro not yot |n tho namo ot dotondant Zamboanga
C|ty.
W|ElE|OlE, tho doc|s|on appoa|od trom |s horoby sot as|do and anothor judgmont |s horoby ontorod as
to||ows:.
convortoo by wob2blConvort.com
(1) 0otondant Zamboanga C|ty |s horoby ordorod to roturn to p|a|nt|tt Zamboanga do| lorto |n |ump sum tho
amount ot l48,080.11 wh|ch tho tormor took back trom tho |attor out ot tho sum ot lb7,878.40 prov|ous|y pa|d to
tho |attor, and
(2) 0otondants aro horoby ordorod to ottoct paymonts |n tavor ot p|a|nt|tt ot whatovor ba|anco roma|ns ot
p|a|nt|tt's b4.80% sharo |n tho 20 patr|mon|a| proport|os, attor doduct|ng thorotrom tho sum ot lb7,878.40, on tho
bas|s ot loso|ut|on lo. 7 datod Varch 20, 1040 ot tho Appra|sa| Comm|ttoo tormod by tho Aud|tor Gonora|, by way
ot quartor|y paymonts trom tho a||otmonts ot dotondant C|ty, |n tho mannor or|g|na||y adoptod by tho 3ocrotary ot
||nanco and tho Comm|ss|onor ot lntorna| lovonuo. lo costs. 3o ordorod.
Royos, 1.B.L., Actg. C.1., Llzoo, Voko|loto|, Zo|olvor, 5oocboz, Costro, Aogo|os ooo lorooooo, 11., coocor.
Coocopcloo, C.1., ls oo |oovo.
Footnotoa
1
5oo locord on Appoa|, pp. 4-0.
2
5oo Exh|b|t C.
8
1ho Comm|ttoo roport |tso|t was not subm|ttod as ov|donco
4
Exh|b|t C.
b
lu|o 04, 3oc. 0, lu|os ot Court.
0
2 VcOu||||n, Vun|c|pa| Corporat|ons, 8rd od., 101-100, Vart|n lub||c Corporat|on, bth od., 81-82, Gonza|os,
law on lub||c Corporat|ons, 1002 od., 20-80, Vun|c|pa||ty ot lagu|||an v. lW3A, l-184b2, lov. 20, 1008.
7
Cobu C|ty v. lW3A, l-12802, Apr. 80, 1002.
8
17 lh||. 210.
0
17 lh||. 420.
10
Vart|n, op. clt., sopro., Ooozo|os, op clt., sopro., 02 C.1. 8. 487-480.
11
24 lh||. 124.
12
40 lh||. b2.
18
01 lh||. b14.
14
lt was on|y |n lopub||c Act 2204, 3oc. 8, |ast paragraph, that provlocos, c|t|os and mun|c|pa||t|os woro ...
author|zod to undortako and carry out any pub||c works projocts, looocoo by tbo provloclo| c|ty and
mun|c|pa| ooos or any othor tund borrowod trom or advancod by pr|vato th|rd part|os .. w|thout tho
|ntorvont|on ot tho 0opartmont ot lub||c Works and Commun|cat|ons. (3trossod tor omphas|s) 1h|s |aw was
approvod and took ottoct on 1uno 10, 10b0.
1b
1h|s cou|d not bo cons|dorod as torm|ng part ot tho appurtonant grounds ot tho 3ur|o|gh schoo| s|tos
s|nco tho rocords horo and |n tho 3uroau ot lands show that th|s |ot |s sot apart trom tho othor 3ur|o|gh |ots.
10
lopub||c v. 3|oson, l-18087, lov. 20, 1008, |odgos v. C|ty ot l|o||o, l-17b78, 1uno 80, 1002.
17
locord on Appoa|, pp. 8-0, 18.
1ho lawph|| lrojoct - Aro||ano law |oundat|on
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