Professional Documents
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CASES
#4 MAYOR PABLO P. MAGTAJAS & THE CITY OF CAGAYAN DE ORO , petitioners, vs.
PRYCE PROPERTIES CORPORATION, INC. & PHILIPPINE AMUSEMENT AND GAMING
CORPORATION , respondents. [G.R. No. 111097. July 20, 1994.] -> It must at once be noted that
private respondent Pryce Properties Corporation (PRYCE) directly led with the Court of Appeals its so-
called petition for prohibition, thereby invoking the said court's original jurisdiction to issue writs of
prohibition under Section 9(1) of B.P. Blg. 129. As I see it, however, the principal cause of action therein
is one for declaratory relief: to declare null and unconstitutional — for, inter alia, having been enacted
without or in excess of jurisdiction, for impairing the obligation of contracts, and for being inconsistent
with public policy — the challenged ordinances enacted by the Sangguniang Panlungsod of the City of
Cagayan de Oro. The intervention therein of public respondent Philippine Amusement and Gaming
Corporation (PAGCOR) further underscores the "declaratory relief" nature of the action. PAGCOR
assails the ordinances for being contrary to the non-impairment and equal protection clauses of the
Constitution, violative of the Local Government Code, and against the State's national policy declared in
P.D. No. 1869. Accordingly, the Court of Appeals does not have jurisdiction over the nature of the action.
-> PRESIDENTIAL DECREE NO. 1869 NOT REPEALED PRO TANTO BY LOCAL
GOVERNMENT CODE. — The challenged ordinances were enacted pursuant to the Sangguniang
Panglungsod's express powers conferred by Section 458paragraph (a)subparagraphs (1)-(V), (3)-(ii), and
(4)-(i), (iv), and (vii), Local Government Code, and pursuant to its implied power under Section 16
thereof. . . . . The issue that necessarily arises is whether in granting local governments (such as the City
of Cagayan de Oro) the above powers and functions, the Local Government Code has, pro tanto, repealed
P.D. No. 1869 insofar as PAGCOR'S general authority to establish and maintain gambling casinos
anywhere in the Philippines is concerned. I join the majority in holding that the ordinances cannot repeal
P.D. No. 1869.
-> The tests of a valid ordinance are well established. A long line of decisions 9 has held to be valid, an
ordinance must conform to the following substantive requirements:
1)It must not contravene the constitution or any statute. 2)It must not be unfair or oppressive.
3)It must not be partial or discriminatory.
4)It must not prohibit but may regulate trade.
5)It must be general and consistent with public policy.
6)It must not be unreasonable.
2. ID.; ID.; ID.; JURISDICTION OVER POPULAR ELECTIONS, CONSTRUED. — The jurisdiction of
the COMELEC is over popular elections, the elected officials of which are determined through the will of
the electorate. An election is the embodiment of the popular will, the expression of the sovereign power
of the people. It involves the choice or selection of candidates to public office by popular vote.
Specifically, the term "election," in the context of the Constitution, may refer to the conduct of the polls,
including the listing of voters, the holding of the electoral campaign, and the casting and counting of the
votes which do not characterize the election of officers in the katipunan ng mga barangay. "Election
contests" would refer to adversary proceedings by which matters involving the title or claim of title to an
elective office, made before or after proclamation of the winner, is settled whether or not the contestant is
claiming the office in dispute and in the case of elections of barangay officials, it is restricted to
proceedings after the proclamation of the w inners as no pre-proclamation controversies are allowed.
3. ID.; ID.; ID.; JURISDICTION OF THE COMELEC DOES NOT COVER PROTESTS OVER THE
ORGANIZATIONAL SET-UP OF THE KATIPUNAN NG MGA BARANGAY. — The jurisdiction of
the COMELEC does not cover protests over the organizational set-up of the katipunan ng mga barangay
composed of popularly elected punong barangays as prescribed by law whose officers are voted upon by
their respective members. The authority of the COMELEC over the katipunan ng mga barangay is limited
by law to supervision of the election of the representative of the katipunan concerned to the sanggunian in
a particular level conducted by their own respective organization.
9. ID.; ELECTION PROTEST IN THE ELECTION OF THE OFFICERS OF THE FABC; REGIONAL
TRIAL COURTS ACCORDED EXCLUSIVE ORIGINAL JURISDICTION. — The respondent
Secretary not having the jurisdiction to hear an election protest involving officers of the FABC, the
recourse of the parties is to the ordinary courts. The Regional Trial Courts have the exclusive original
jurisdiction to hear the protest.
11.ID.; ID.; GOVERNOR, PROPER PARTY TO FILE ELECTION PROTEST OVER ELECTION OF
OFFICERS OF FABC. — Under Section 205 of the Local Government Code, the membership of
thesangguniang panlalawigan consists of the governor, the vice-governor, elective members of the said
sanggunian, and the presidents of the katipunang panlalawigan and the kabataang barangay provincial
federation. The governor acts as the presiding offi cer of the sangguniang panlalawigan. As presiding
officer of the sangguniang panlalawigan, the respondent governor has an interest in the election of the
officers of the FABC since its elected president becomes a member of the assembly. If the president of
the FABC assumes his presidency under questionable circumstances and is allowed to sit in the
sangguniang panlalawigan, the official actions of the sanggunian may be vulnerable to attacks as to their
validity or legality. Hence, respondent governor is a proper party to question the regularity of the
elections of the officers of the FABC.
12. ID.; ID.; ELECTIONS OF THE OFFICERS OF THE FABC; NULLIFICATION FOR FAILURE TO
COMPLY WITH DLG CIRCULAR NO. 89-09. — Section 2.4 of DLG Circular No. 89-09 provides that
"the incumbent FABC President or the Vice- Presidentshall preside over the reorganizational meeting,
there being a quorum." The rule specifically provides that it is the incumbent FABC President or Vice-
President who shall preside over the meeting. The word "shall" should be taken in its ordinary
signification, i.e., it must be imperative or mandatory and not merely permissive, as the rule is explicit
and requires no other interpretation. If it had been intended that any other official should preside, the rules
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would have provided so, as it did in the elections at the town and city levels as well as the regional level.
It is admitted that neither the incumbent FABC President nor the Vice-President presided over the
meeting and elections but A l b e r t o P. M o l i n a , J r . , t h e C h a i r m a n o f t h e B o a r d o f E l e c
t i o n Supervisors/Consultants. Thus, there was a clear violation of the aforesaid mandatory provision. On
this ground, the election should be nullified.
#6 HON. JEJOMAR C. BINAY and the MUNICIPALITY OF MAKATI, petitioners, vs. HON.
EUFEMIO DOMINGO and the COMMISSION ON AUDIT, respondents. [G.R. No. 92389.
September 11, 1991.] -> 2. ID.; ID.; ID.; NOT INHERENT IN MUNICIPAL CORPORATIONS;
VALID DELEGATION, REQUIRED. — Police power is inherent in the state but not in municipal
corporations (Balacuit v. CFI of Agusan del Norte, 163 SCRA 182). Before a municipal corporation may
exercise such power, there must be a valid delegation of such power by the legislature which is the
repository of the inherent powers of the State. A valid delegation of police power may arise from express
delegation, or be inferred from the mere fact of the creation of the municipal corporation; and as a general
rule, municipal corporations may exercise police powers within the fair intent and purpose of their
creation which are reasonably proper to give effect to the powers expressly granted, and statutes
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conferring powers on public corporations have been construed as empowering them to do the things
essential to the enjoyment of life and desirable for the safety of the people.
#8 RODOLFO T. GANZON, petitioner, vs. THE HONORABLE COURT OF APPEALS, and LUIS
T. SANTOS, respondents. [G.R. No. 93252. August 5, 1991.] MARY ANN RIVERA ARTIEDA,
petitioner, vs. HON. LUIS SANTOS, in his capacity as Secretary of the Department of Local
Government, NICANOR M. PATRICIO, in his capacity as Chief, Legal Service of the Department
of Local Government, and SALVADOR CABALUNA, JR., respondents. [G.R. No. 93746. August 5,
1991.] RODOLFO T. GANZON, petitioner, vs. THE HONORABLE COURT OF APPEALS, and
LUIS T. SANTOS, in his capacity as the Secretary of the Department of Local Government,
respondents. [G.R. No. 95245. August 5, 1991.] -> POWER TO SUSPEND LOCAL OFFICIALS
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MUST NOT BE EXERCISED OPPRESSIVELY. — While the respondent Secretary of Interior, as alter
ego of the President, under the existing Local Government Code, has the Power to suspend the petitioner
Iloilo City Mayor, such power cannot be exercised oppressively. Ten administrative cases have been
successively filed against the City Mayor. The Mayor has been made to serve a total of 120 days of
suspension for the first two cases and the respondent Secretary has issued another order preventively
suspending the former for another 60 days, the third time in twenty months. We are allowing the Mayor to
suffer the duration of his third suspension. Insofar as the seven remaining charges are concerned, we are
urging the Department of Local Government, upon finality of this decision, to undertake steps to expedite
the same, subject to the Mayor's usual remedies of appeal, judicial or administrative, or certiorari, if
warranted, and meanwhile, we are precluding the Secretary from meting out further suspensions based on
those remaining complaints, notwithstanding findings of prima facie evidence.
-> NEW CONSTITUTION DOES NOT PRESCRIBE FEDERALISM. — As the Constitution itself
declares, local autonomy means "a more responsive and accountable local government structure instituted
through a system of decentralization." The Constitution, as we observed, does nothing more than to break
up the monopoly of the national government over the affairs of local governments and as put by political
adherents, to "liberate the local governments from the imperialism of Manila." Autonomy, however, is not
meant to end the relation of partnership and interdependence between the central administration and local
government units, or otherwise, to usher in a regime of federalism. The Charter has not taken such a
radical step. Local governments, under the Constitution, are subject to regulation, however limited, and
for no other purpose than precisely, albeit paradoxically, to enhance self-government.
-> "Supervision" and "investigation" are not inconsistent terms; "investigation" does not signify "control"
(which the President does not have);
-> CONSTITUTIONAL LAW; 1987 CONSTITUTION; LOCAL AUTONOMY, NATURE OF; LOCAL
OFFICIALS REMAIN ACCOUNTABLE TO CENTRAL GOVERNMENT. — Local autonomy, under
the Constitution, involves a mere decentralization of administration, not of power, in which local officials
remain accountable to the central government in the manner the law may provide. Autonomy does not
contemplate making mini-states out of local government units. Autonomy, in the constitutional sense, is
subject to the guiding star, though not control, of the legislature, albeit the legislative responsibility under
the Constitution — and as the "supervision clause" itself suggests — is to wean local government units
from overdependence on the central government. It is noteworthy that under the Charter, "local
autonomy" is not instantly self executing, but subject to, among other things, the passage of a local
government code, a local tax law, income distribution legislation, and a national representation law, and
measures designed to realize autonomy at the local level. It is also noteworthy that in spite of autonomy,
the Constitution places the local governments under the general supervision of the Executive. It is
noteworthy finally, that the Charter allows Congress to include in the local government code provisions
for removal of local officials, which suggests that Congress may exercise removal powers, and as the
existing Local Government Code has done, delegate its exercise to the President.
-> CHANGED SUPERVISION CLAUSE DOES NOT EXEMPT LOCAL GOVERNMENTS FROM
LEGISLATIVE REGULATION. — The 1987 Constitution provides in Art. X, Sec. 4 that "[T]he
President of the Philippines shall exercise general supervision over local governments." It modifies a
counterpart provision appearing in the 1935 Constitution, Art. VII, Sec. 10(1), stating that "[T]he
President shall . . . exercise general supervision over all local governments as may be provided by law." It
is the considered opinion of the Court that notwithstanding the change in the constitutional language, the
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Charter did not intend to divest the legislature of its right — or the President of her prerogative as
conferred by existing legislation — to provide administrative sanctions against local officials. It is our
opinion that the omission (of "as may be provided by law") signifies nothing more than to underscore
local governments' autonomy from Congress and to break Congress' "control" over local government
affairs. The Constitution did not, however, intend, for the sake of local autonomy, to deprive the
legislature of all authority over municipal corporations, in particular, concerning discipline. The change in
constitutional language did not exempt local governments from legislative regulation provided regulation
is consistent with the fundamental premise of autonomy.
4. ID.; ID.; ID.; NATIONAL AUTHORITY CAN DISCIPLINE LOCAL OFFICIALS. — Since local
governments remain accountable to the national authority, the latter may, by law, and in the manner set
forth therein, impose disciplinary action against local officials. In the case at bar, the Secretary of Local
Government, the President's alter ego, in consonance with the specific legal provisions of Batas Blg. 337,
the existing Local Government Code, can suspend petitioner Mayor of Iloilo City (G.R. Nos. 93252 and
95245) and petitioner member of the Sangguniang Panglunsod (G.R. No. 93746).
5. ID.; ID.; ID.; ID.; "SUPERVISION" NOT INCOMPATIBLE WITH DISCIPLINARY AUTHORITY.
— "Supervision" is not incompatible with disciplinary authority. As this Court held in Ganzon vs.
Cayanan, 104 Phil. 484, "in administration law supervision means overseeing or the power or authority of
an officer to see that subordinate officers perform their duties. If the latter fail or neglect to fulfill them
the former may take such action or step as prescribed by law to make them perform their duties."
#11 AQUILINO Q. PIMENTEL, JR., petitioner, vs. Hon. ALEXANDER AGUIRRE in his capacity
as Executive Secretary, Hon. EMILIA BONCODIN in her capacity as Secretary of the Department
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of Budget and Management, respondents. [G.R. No. 132988. July 19, 2000.] -> AUTOMATIC
RELEASE OF LGUs IRA. — Section 4 of AO 372 cannot, however, be upheld. A basic feature of local
scal autonomy is the automatic release of the shares of LGUs in the national internal revenue. This is
mandated by no less than the Constitution. The Local Government Code speci es further that the release
shall be made directly to the LGU concerned within ve (5) days after every quarter of the year and "shall
not be subject to any lien or holdback that may be imposed by the national government for whatever
purpose." As a rule, the term "shall" is a word of command that must be given a compulsory meaning.
The provision is, therefore, imperative. Section 4 of AO 372, however, orders the withholding, effective
January 1, 1998, of 10 percent of the LGUs' IRA "pending the assessment and evaluation by the
Development Budget Coordinating Committee of the emerging scal situation" in the country. Such
withholding clearly contravenes the Constitution and the law. Although temporary, it is equivalent to a
holdbacks which means "something held back or withheld, often temporarily." Hence, the "temporary"
nature of the retention by the national government does not matter. Any retention is prohibited.
2. POLITICAL LAW; LOCAL GOVERNMENT; REPUBLIC ACT NO. 7160; DOES NOT CONTAIN
ANY EXPRESS PROVISION CATEGORICALLY REPEALING THE CHARTER OF THE LAGUNA
LAKE DEVELOPMENT AUTHORITY. — We hold that the provisions of Republic Act No. 7160 do
not necessarily repeal the aforementioned laws creating the Laguna Lake Development Authority and
granting the latter water rights authority over Laguna de Bay and the lake region. The Local Government
Code of 1991 does not contain any express provision which categorically expressly repeal the charter of
the Authority. It has to be conceded that there was no intent on the part of the legislature to repeal
Republic Act No. 4850 and its amendments. The repeal of laws should be made clear and expressed.
CSIDEc
4. ID.; ID.; ID.; HAS EXCLUSIVE JURISDICTION TO ISSUE PERMITS FOR THE ENJOYMENT
OF FISHERY PRIVILEGES IN LAGUNA DE BAY TO THE EXCLUSION OF MUNICIPALITIES
SITUATED THEREIN AND THE AUTHORITY TO EXERCISE SUCH POWERS AS ARE BY ITS
CHARTER VESTED ON IT. — This Court holds that Section 149 of Republic Act No. 7160, otherwise
known as the Local Government Code of 1991, has not repealed the provisions of the charter of the
Laguna Lake Development Authority, Republic Act No. 4850, as amended. Thus, the Authority has the
exclusive jurisdiction to issue permits for the enjoyment of fishery privileges in Laguna de Bay to the
exclusion of municipalities situated therein and the authority to exercise such powers as are by its charter
vested on it. Removal from the Authority of the aforesaid licensing authority will render nugatory its
avowed purpose of protecting and developing the Laguna Lake Region. Otherwise stated, the abrogation
of this power would render useless its reason for being and will in effect denigrate, if not abolish, the
Laguna Lake Development Authority. This, the Local Government Code of 1991 had never intended to
do.