Torio, and all Members of the Municipal Council of Malasiqui in 1959, Malasiqui, Pangasinan, petitioners vs.

Fontanilla (family) and the Honorable Court of Appeals, respondents

October 23, 1978
Munoz-Palma, J.
Nature: Petition for review
Summary: The Municiaplity of Malasiqui resolved to have a town fiesta celebration, and pursuant to this, it
organized a Committee for the said celebration. The Committee caused the construction of a stage to be
used during the celebration. During the celebration, an accident happened which caused the death of
Fontanilla. The heirs of the deceased sought for recovery of damages. The SC held that since the town
fiesta celebration is categorized under the proprietary powers of the Municipality, it (Municipality) shall be
held liable for the damages. Meanwhile the Municipal Councilors shall not be liable as they have no
participation in the accident.
Doctrine:

The powers of a municipality are twofold in character governmental and proprietary powers.

This distinction of powers is important for purposes of determining the liability of the municipality for
the acts of its agents which result in an injury to third persons
Facts:

The Municipal Council of Malasiqui, Pangasinan, passed Resolution 159 whereby it resolved to
manage the 1959 Malasiqui town fiesta celebration. Another Resolution was also passed creating
the 1959 Malasiqui Town Fiesta Executive Committee.

The Municipal Council appropriated Php 100.00 for the construction of 2 stages for the zarzuela
and the cancionan.

The zarzuela to be performed was donated by an association of Malasique employees of the

Manila Railroad Company where Vicente Fontanilla is a member. During their performance, the
stage collapsed and Vicente Fontanilla who was at the rear of the stage was pinned underneath
which caused his death.

The heirs of Fontanilla, respondents in the case at bar, filed a complaint against the Municipality of
Malasiqui and its Municipal Council with the CFI of Manila to recover damages.

Defenses (arguments why they shall not be held liable for damages)
o Municipality of Malasiqui

invoked the principal defense that as a legally and duly organized public
corporation it performs sovereign functions and the holding of a town fiesta was
an exercise of its governmental functions from which no liability can arise to
answer for the negligence of any of its agents
o Municipal Councilors

They merely acted as agents of the municipality in carrying out the municipal
ordinance providing for the management of the town fiesta celebration and as
such they are likewise not liable for damages as the undertaking was not one for
profit

That they exercised due care and diligence in implementing the municipal
ordinance

CFI decision the defendants exercised due care and diligence in the construction of the stage,
they shall not be liable

CA decision reversed the CFI ruling. Hence, this petition

Issue # 1: Is the celebration of a town fiesta an undertaking in the exercise of a municipalitys governmental
or public function or is it of a private proprietary character? (private proprietary character)
Ratio # 1

The powers of a municipality are twofold in character

o Governmental powers (Public, governmental, or political)

those exercised by the corporation in administering the powerso of the state and
promoting the public welfare; includes the legislative, judicial, public, and political

as regards the state at large insofar as it is its agent in government (McQuillin on

Municipal Corporations)

exercise of 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 I such capacity, though eected or appointed by them, are
nevertheless public functionaries performing a public service. And as such they
are officers, agents, and servants of the state (City of Kokomo vs Loy)
o Municipal powers (Corporate, private, or proprietary)

exercised for the special benefit and advantage of the community and include
those which are ministerial, provate, and corporate

insofar as it is to promote local necessities and conveniences for its own

community (McQuillin on Municipal Corporations)

exercise of privay, proprietary, or corporate right, ariding from thrit existence as

legal persons and not as publig agencies; their officers and agents in the
performance of such functions act in behalf of the municipalities in their corporate
or individual capaity, and not for the state or sovereign power (City of Kokomo vs
Loy)

This distinction of powers is important for purposes of determining the liability of the municipality for
the acts of its agents which result in an injury to third persons
o Injury in the course of the performance of a governmental function no recoverycan be
had from the municipality unless there is an existing statute on the matter, or from its
officers, so long as they performed their duties honestly and in good faith or that they did
not act wantonly and maliciously
o Injury in the course of proprietary functions rule is that a municipal corporation can be
held liable to third persons ex contractu or ex delicto

Municipal corporations are subject to be sued upon contracts and in torts

The Civil Code provision holding employers and superiors liable for the
negligence of their inferiors or employees is also applicable to municipal
corporations

In the case at bar, the town fiesta, according to Sec. 2282 of the Chapter on Municipal Law of the
Revised Administrative Code, was an exercise of a private or proprietary function of the
municipality.
o The said provision simply gives authority to the municipality to accelebrate a yearly fiesta
but it does not impose upon it a duty to observe one; it 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.
o No governmental or public policy of the state is involved in the celebration of a town fiesta
Issue # 2: W/N the Municipality shall be held liable for the death of Vicente Fontanilla (yes)
Ratio # 2

Under the doctrine of respondent superior, petitioner Municipality is to be held liable for damages
for the death of Vicente Fontanilla because of the municipalitys officers, employees or agentss
negligence.
o There was negligence as there was lack of supervision over the use of the stage to
prevent the accident

Also, when the Municipality accepted the donation of the zarzuela performance, the participants in
the stage show had the right to expect that the Municipality would build or put up a stage or p;atfrm
strong enough to sustain the weight or burden of the performance and take the necessary
measures to insure the personal safety of the participants.

It is true that the committed appointed a chairman for the contruction of the stage, but this fact does
not exculpate the Municipality from liability. Under the doctrine of respondent superior, Municipality
is responsible or liable for the negligence of its agent acting within his assigned tasks.
Issue # 3: W/N the Municipal Councilors, who created the ffiesta committee, shall be held liable (No)
Ratio # 3

The CA erred in applying Art. 27 Civil Code when it held the Councilors liable. The said provision
covers a case of non-feasance or non-performance by a public officer of his official duty; it does not
apply to a case of negligence or misfeasance in carrying out an official duty.

In holding that the fiesta celebration was not a governmental function, the Municipality stands on
the same footing as an ordinary private corporation with the municipal council acting as its board of
directors.
o By virtue of the doctrine that a corporation has a personality distinct and separate from its
officers, directors, or persons composing it, the latter (officers, directors) cannot be held
also liable in an action for damages for tort or negligence committed by the corporations
employees or agents unless there is a showing of bad faith or gross or wanton negligence
on their part
o In the case at bar, records do not show that the Councilors participated in the defective
construction of the zarzuela stage or that they personally permitted spectators to go up the
platform
Issue # 4: W/N attorneys fees shall be granted (Yes)

Ratio # 4

Records show that attempts were made by the heirs of Fontanilla to secure an extrajudicial
compensation from the Municipality, but the promises of the latter proved to be futile which led the
filing of this petition
Disposition: Municipality held liable; Municipal Councilors absolved