1. Municipality of Jimenez v.

Baz

G.R. No. No. 105746 December 2, 1996

FACTS:

This is a petition of the decision of the RTC of Orquieta City, affirming the legal existence of the
municipality of Sinacaban in Misamis Occidental and ordering the relocation of its boundary for
the purpose of determining whether certain areas claimed by it belong to it. Municipality of
Sinacaban was created by E.O. 258 of the then Pres. Quirino pursuant to admin code of1917
which shall consist of the southern portion of the municipality of Jimenez. The latter shall have
its present territory minus the portion of the municipality of Sinacaban. Sinacaban laid claim to a
portion of the disputed area by virtue of a municipal resolution against the Mun of Jimenez.
While conceding that the disputed area were under E.O. 258 making them part of Sinacaban
nevertheless, the Mun of Jimenez asserted jurisdiction based on agreement with the Mun of
Sinacaban. The provincial board declared the disputed area to be part of Sinacaban for the
agreement between the two municipalities was void as only the Congress has the authority to
alter boundaries. Mun of Jimenez elevated the issue to the RTC alleging that in accordance with
Pelaez v. Auditor General, the power to create municipalities is essentially a legislative act and
consequently this would make Sinacaban no legal personality and no right to assert a territorial
whose existence is based on an E.O. The RTC rendered a decision that Sinacaban shall continue
to exist and operate as a regular municipality. It held, inter alia, that Sinacaban is a de facto corp.
since it had completely organized itself even prior to the Pelaez case and exercised corporate
powers for 40 years before the existence was questioned. Hence, the petition.

ISSUE:

WON, Sinacaban had attained a de facto status and hence has legal personality.

HELD:

Yes. In Pelaez v. Auditor General, following its decision, Sinacaban was not validly created as a
municipal corp. The creation of municipal corp. is essentially a legislative matter and therefore
the Pres. Was without power to create by E.O. the Mun of Sinacaban. However, where a
municipality by E.O. is later impliedly recognized and its acts are accorded legal validity, its
creation can no longer be questioned. Sincaban had been in existence for 16 years when Pelaez v.
Auditor Gen. was decided in 24 Dec 1965 yet the validity of E.O. 258 creating it had never been
questioned. Created in 1949, it was only 40 years later that its existence was questioned.
Sinacaban attained the status of at least a de facto mun corp in the sense that its legal existence
had been recognized and acquiesced publicly and officially. The State and even Jimenez itself
have recognized Sinacabans corporate existence with the latters entering into agreement with it
regarding their common boundary. Whatever defect in the creation of Sinacaban was cured in the
ruling in Mun. of San Narciso, Quezon v. Mendez, of Sec. 442(d) of the LGC of 1991.
Municipalities existing as of the date of the effectivity of this code shall continue to exist and
operate as such. Existing municipal district organized pursuant to presidential issuances or
executive orders and which have their respective set of mun. officials holding office at the time
of the effectivity of the code shall henceforth be considered as regular municipalities..
DENIED.