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    Vilas Vs City of Manila 42 Phil 935 A

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    Clauds Gadzz
    Vilas vs City of Manila 42 Phil 935 involved a creditor, Vilas, bringing an action to recover money owed to him by the City of Manila prior to its incorporation under a new law. The City argued that the change in sovereignty extinguished its liability. The court held that a change in sovereignty alone does not dissolve a municipal corporation and its successor, the new City of Manila, was still liable for the debts of the old city as its predecessor. The new city was entitled to the property and liabilities of the previous corporation.

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    Vilas Vs City of Manila 42 Phil 935 A

    Uploaded by

    Clauds Gadzz
    17 views1 page
    Vilas vs City of Manila 42 Phil 935 involved a creditor, Vilas, bringing an action to recover money owed to him by the City of Manila prior to its incorporation under a new law. The City argued that the change in sovereignty extinguished its liability. The court held that a change in sovereignty alone does not dissolve a municipal corporation and its successor, the new City of Manila, was still liable for the debts of the old city as its predecessor. The new city was entitled to the property and liabilities of the previous corporation.

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    Vilas vs City of Manila 42 Phil 935 A

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    Vilas vs City of Manila 42 Phil 935 involved a creditor, Vilas, bringing an action to recover money owed to him by the City of Manila prior to its incorporation under a new law. The City argued that the change in sovereignty extinguished its liability. The court held that a change in sovereignty alone does not dissolve a municipal corporation and its successor, the new City of Manila, was still liable for the debts of the old city as its predecessor. The new city was entitled to the property and liabilities of the previous corporation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    17 views1 page

    Vilas Vs City of Manila 42 Phil 935 A

    Uploaded by

    Clauds Gadzz
    Vilas vs City of Manila 42 Phil 935 involved a creditor, Vilas, bringing an action to recover money owed to him by the City of Manila prior to its incorporation under a new law. The City argued that the change in sovereignty extinguished its liability. The court held that a change in sovereignty alone does not dissolve a municipal corporation and its successor, the new City of Manila, was still liable for the debts of the old city as its predecessor. The new city was entitled to the property and liabilities of the previous corporation.

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    © All Rights Reserved
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    Vilas vs City of Manila 42 Phil 935

    Facts
    Prior to the incorporation of the City of Manila under the Republic Act No. 183, petitioner
    Vilas is the creditor of the City. After the incorporation, Vilas brought an action to recover the
    sum of money owed to him by the city. The City of Manila that incurred the debts has
    changed its sovereignty after the cession of the Philippines to the US by the Treaty of Paris
    and its contention now is founded on the theory that by virtue of the Act No. 183 its liability
    has been extinguished.

    Issue
    Whether or not the change of the sovereignty extinguishes the previous liability of the City
    of Manila to its creditor?
    Held
    No. The mere change of sovereignty of a country does not necessarily dissolve the municipal
    corporation organized under the former sovereign. The new City of Manila is in a legal sense
    the successor of the old city. Thus the new city is entitled to all property and property rights
    of

    the

    predecessor corporation including

    its liabilities.

    The

    court

    held that

    only

    the governmental functions that are not compatible with the present sovereignty are
    suspended. Because the new City of Manila retains its character as the predecessor of the
    old city it is still liable to the creditors of the old City of Manila.

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