G.R. No. L-9596 February 11, 1916 EN BANC Trent, J. MARCOS MENDOZA, plaintiff-appellee, v . FRANCISCO DE LEON, ET AL., !efen!

ant -appellant . FACTS: A"tion for !a#a$e a$ain t t%e in!ivi!ual #e#ber of t%e #uni"ipal "oun"il of t%e #uni"ipality of &illa i , 'an$a inan, for t%e revo"ation of t%e lea e of an e("lu ive ferry privile$e !uly a)ar!e! to t%e plaintiff un!er t%e provi ion of A"t No. 16*+ of t%e '%ilippine Co##i ion. After u e of a little #ore t%an one year, t%e plaintiff )a for"ibly e,e"te! un!er an! pur uan"e of a re olution a!opte! by t%e %erein !efen!ant , a)ar!in$ a fran"%i e for t%e a#e ferry to anot%er per on. ISSUE: Are t%e #e#ber of t%e #uni"ipal "oun"il per onally liableRATIONALE: .uni"ipalitie of t%e '%ilippine / lan! or$ani0e! un!er t%e .uni"ipal Co!e %ave bot% $overn#ental an! "orporate or bu ine fun"tion . A"t No. 16*+ provi!e t%at t%e u e of ea"% fi %ery, fi %-bree!in$ $roun!, ferry, table, #ar1et, an! lau$%ter%ou e belon$in$ to any #uni"ipality or to)n %ip %all be let to t%e %i$%e t bi!!er annually or for u"% lon$er perio! not e("ee!in$ five year a #ay %ave been previou ly approve! by t%e provin"ial boar! of t%e provin"e in )%i"% t%e #uni"ipality or to)n %ip i lo"ate!. The leasing of a !ni"i#al ferr$ to the highest %i&&er for a s#e"ifie& #erio& of ti e is not a go'ern ental %!t a "or#orate f!n"tion. S!"h a lease, (hen 'ali&l$ entere& into, "onstit!tes a "ontra"t (ith the lessee (hi"h the !ni"i#alit$ is %o!n& to res#e"t. A #uni"ipality i not e(e#pt fro# liability for t%e ne$li$ent perfor#an"e of it "orporate or proprietary or bu ine fun"tion . /n t%e a!#ini tration of it patri#onial property, it i to be re$ar!e! a a private "orporation or in!ivi!ual o far a it liability to t%ir! per on on "ontra"t or in tort i "on"erne!. /t "ontra"t , vali!ly entere! into, #ay be enfor"e! an! !a#a$e #ay be "olle"te! fro# it for t%e tort of it offi"er or a$ent )it%in t%e "ope of t%eir e#ploy#ent in pre"i ely t%e a#e #anner an! to t%e a#e e(tent a t%o e of private "orporation or in!ivi!ual . A to u"% #atter t%e prin"iple of re pon!eat uperior applie . /t i for t%e e purpo e t%at t%e #uni"ipality i #a!e liable to uit in t%e "ourt . .uni"ipal "orporation are ub,e"t to be ue! upon "ontra"t an! in tort. 2%e rule of la) i a $eneral one, t%at t%e uperior or e#ployer #u t an )er "ivilly of t%e ne$li$en"e or )ant of 1ill of %i a$ent or ervant in t%e "our e or line of %i e#ploy#ent, by )%i"% anot%er, )%o i free fro# "ontributory fault, i in,ure!. .uni"ipal "orporation , un!er t%e "on!ition %erein tate!, fall )it%in t%e operation of t%i rule of la), an! are liable, a""or!in$ly, to "ivil a"tion for !a#a$e )%en t%e re3ui ite ele#ent of liability "oe(i t. 2o "reate u"% liability, it i fun!a#entally ne"e ary t%at t%e a"t !one )%i"% i in,uriou to ot%er #u t be )it%in t%e "ope of t%e "orporate po)er a pre "ribe! by "%arter or po itive ena"t#ent 4t%e e(tent of )%i"% po)er all per on are boun!, at t%eir peril, 1no)56 in ot%er )or! , it #u t not be ultra vire in t%e en e t%at it i not )it%in t%e po)er or aut%ority of t%e "orporation to a"t in referen"e to it un!er any "ir"u# tan"e . Un&er the #ro'isions of M!ni"i#al Co&e an& A"t No. )*+,, the #laintiff ha& a 'este& right to the e-"l!si'e o#eration of the ferr$ in .!estion for the #erio& of his lease. /ere the !ni"i#alit$ a #art$ to this a"tion, it (o!l& %e #atent that a 0!&g ent for &a ages against it for the res"ission of the "ontra"t (o!l& %e #ro#er. This, %e it sai&, is the !s!al etho& of e-a"ting &a ages, either e- "ontra"t! or e- &eli"to arising fro the e-er"ise of "or#orate #o(ers of !ni"i#alities. /n a!#ini terin$ t%e patri#onial property of #uni"ipalitie , t%e #uni"ipal "oun"il o""upie , for #o t purpo e , t%e po ition of a boar! of !ire"tor of a private "orporation. /n !i po in$ of t%e lo"al publi" utilitie , if t%e ter# #ay be u e!, u"% a t%e fi %in$ an! ferry ri$%t , et"., t%ey #u t e(er"i e "on i!erable ,u!$#ent. /t re3uire! o#e "on i!erable a#ount of bu ine a"u#en to "o#pel perfor#an"e on t%e part of le ee of t%e e privile$e in a""or!an"e )it% t%e ter# of t%eir lea e an! in a #anner )%i"% )ill not "au e t%e property to !eteriorate. 7ue tion #u t "ontinually ari e )%i"% are not e(pre ly provi!e! for in "ontra"t an! )%i"% #u t be ettle!, if po ible, in a #anner t%at )ill pre erve t%e ,u t "lai# of t%e #uni"ipality. The r!le of #ersonal lia%ilit$ sho!l& %e (ith !ni"i#al "o!n"ilors in s!"h atters as it is (ith the &ire"tors or anagers of an or&inar$ #ri'ate "or#oration. 2%e !efen!ant are liable ,ointly an! everally for t%e !a#a$e "ontra"t of lea e of t%e ferry privile$e in 3ue tion. u taine! by t%e plaintiff fro# t%e re "i ion of %i

DIS1OSITI2E: 8u!$#ent appeale! fro# i affir#e!.