Lim Vs.

Laguio

On 30 Mar 1993, Mayor Lim signed into law Ord 7783 entitled AN ORDINANCE
PROHIBITING THE ESTABLISHMENT OR OPERATION OF BUSINESSES
PROVIDING CERTAIN FORMS OF AMUSEMENT, ENTERTAINMENT,
SERVICES AND FACILITIES IN THE ERMITA-MALATE AREA, PRESCRIBING
PENALTIES FOR VIOLATION THEREOF, AND FOR OTHER PURPOSES. It
basically prohibited establishments such as bars, karaoke bars, motels and hotels from
operating in the Malate District which was notoriously viewed as a red light district
harboring thrill seekers. Malate Tourist Development Corporation avers that the
ordinance is invalid as it includes hotels and motels in the enumeration of places offering
amusement or entertainment. MTDC reiterates that they do not market such nor do they
use women as tools for entertainment. MTDC also avers that under the LGC, LGUs can
only regulate motels but cannot prohibit their operation. The City reiterates that the
Ordinance is a valid exercise of Police Power as provided as well in the LGC. The City
likewise emphasized that the purpose of the law is to promote morality in the City.
ISSUE: Whether or not Ordinance 7783 is valid.
HELD: The SC ruled that the said Ordinance is null and void. The SC noted that for an
ordinance to be valid, it must not only be within the corporate powers of the local
government unit to enact and must be passed according to the procedure prescribed by
law, it must also conform to the following substantive requirements:
(1) must not contravene the Constitution or any statute;
(2) must not be unfair or oppressive;
(3) must not be partial or discriminatory;
(4) must not prohibit but may regulate trade;
(5) must be general and consistent with public policy; and
(6) must not be unreasonable.
The police power of the City Council, however broad and far-reaching, is subordinate to
the constitutional limitations thereon; and is subject to the limitation that its exercise must
be reasonable and for the public good. In the case at bar, the enactment of the Ordinance
was an invalid exercise of delegated power as it is unconstitutional and repugnant to
general laws.