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Public Corporations - Sotelo Reviewer
Public Corporations - Sotelo Reviewer
SECTION 48. Local Legislative Power At the same time, Ordinance No. 13 was passed by the
Municipal Council of Virac in the exercise of its police
power.
Sangguniang panlalawigan – province
Sangguniang panlungsod – city It is valid because it meets the criteria for a valid
Sangguniang bayan – municipality municipal ordinance:
Sangguniang barangay –barangay 1) must not contravene the Constitution or any statute,
2) must not be unfair or oppressive,
VALIDITY OF AN ORDINANCE 3) must not be partial or discriminatory,
Must be within the corporate powers of the municipal; 4) must not prohibit but may regulate trade,
corporation, passed according to the procedure prescribed 5) must be general and consistent with public policy,
by law, and in consonance with principles of substantive and
nature 6) must not be unreasonable.
PRINCIPLES REQUIRE MUN ORDINANCE The purpose of the said ordinance is to avoid the loss of
property and life in case of fire which is one of the
(Tatel v Virac)
primordial obligation of government. The lower court
1. Must not contravene the Constitution or any
did not err in its decision.
statute
2. Must not be unfair or oppressive
3. Must not be partial or discriminatory
PRESUMPTION OF VALIDITY
4. Must not prohibit but may regulate trade
Presumption of the reasonableness and constitutionality of
5. Must be general and consistent with public
ordinances
policy
6. Must not be unreasonable
EFFECT OF PARTIAL INVALIDITY
If the invalid part is severable from the rest, the part which
Tatel v Virac (207 SCRA 157) is valid may remain.
Petitioner Celestino Tatel owns a warehouse in barrio
Sta. Elena, Municipality of Virac. Complaints were
CONSISTENT WITH THE LAW
received by the municipality concerning the disturbance
Ordinance must be in harmony with the state law. In case
caused by the operation of the abaca bailing machine
inside petitioner’s warehouse. A committee was then of conflict a statute prevails unless under the statutes the
appointed by the municipal council, and it noted from ordinance plainly and specifically is given predominance in
its investigation on the matter that an accidental fire a particular instance or as to a particular subject matter.
within the warehouse of the petitioner created a danger
to the lives and properties of the people in the TEST: Whether the legislature intended to deny
neighborhood. Resolution No. 29 was then passed by municipalities the right to legislate on the subject.
the Municipal council declaring said warehouse as a
public nuisance within a purview of Article 694 of the
Villacorta v Bernardo (143 SCRA 480)
New Civil Code. According to respondent municipal
officials, petitioner’s warehouse was constructed in
FACTS: Ordinance 22 entitled AN ORDINANCE
violation of Ordinance No. 13, series of 1952,
REGULATING SUBDIVISION PLANS OVER
prohibiting the construction of warehouses near a block
PARCELS OF LAND IN THE CITY
of houses either in the poblacion or barrios without
OFDAGUPAN was enacted by the municipal board of
maintaining the necessary distance of 200 meters from
Dagupan City. The said ordinance was imposing
said block of houses to avoid loss of lives and properties
additional requirements to that of the national law Act
by accidental fire. On the other hand, petitioner
496.
contends that Ordinance No. 13 is unconstitutional.
Ordinance 22 was annulled by the Court of First
Issues: Instance of Pangasinan and was affirmed by the Court
of Appeals whose decision reads as follows:
(1) Whether or not petitioner’s warehouse is a nuisance
within the meaning Article 694 of the Civil Code
Section 1 of said ordinance clearly conflicts with
Section 44 of Act 496, because the latter law does not
(2) Whether or not Ordinance No. 13, series of 1952 of
require subdivision plans to be submitted to the City
the Municipality of Virac is unconstitutional and void.
Engineer before the same is submitted for approval to
and verification by the General Land Registration
ISSUE: Were the decisions of the CFI and CA to annul Ordinance under general, implied or incidental power –
the said ordinance was correct?
open to the inquiry by the courts for question of
HELD: Yes. To sustain the ordinance would be to open reasonableness.
the floodgates to other ordinances amending and so
violating national laws in the guise of implementing Ordinance adopted by exercise of the initiative or
them. Thus, ordinances could be passed imposing sustained by exercise of referendum – must also meet the
additional requirements for the issuance of marriage test of reasonableness
licenses, to prevent bigamy; the registration of vehicles,
to minimize carnaping; the execution of contracts, to The unreasonableness of an ordinance must be pled and
forestall fraud; the validation of passports, to deter proven, the burden of proof lies on the party asserting it.
imposture; the exercise of freedom of speech, to reduce
disorder; and so on. This advice is especially addressed NOT PARTIAL OR DISCRIMINATORY
to the local governments which exercise the police Classification must be germane to the purpose of the
power only by virtue of a valid delegation from the law. The law must apply equally to each member of the
national legislature under the general welfare clause.
class, and all classification must be based on substantial
In the instant case, Ordinance No. 22 suffers from the distinctions which make one class different from another.
additional defect of violating this authority for
legislation in contravention of the national law by NOT IN PROHIBITION OF TRADE
adding to its requirements. There must be some logical connection between the object
sought to be accomplished by an ordinance regulation a
REASONABLENESS business or trade and the means prescribed to accomplish
Question of law depends on facts. Ordinances enacted the end.
under the police power must not be oppressive.
GENERAL AND CONSISTENT TO PUBLIC POLICY
Depends on whether the ordinance tends to accomplish the There must be substantial conformity. If the state has
objects for which the municipality exists. expressed through legislation a public policy with reference
to a subject, a municipality cannot ordain an effect contrary
FACTORS to or in qualification of the public policy.
1. The ordinance is within the powers of the
municipal corporation EXCEPTION: Unless there is a specific, positive,
2. The ordinance is positive, definite, and certain in lawful grant of power by the state to so ordain
its terms
3. The ordinance is general, uniform, and impartial JUDICIAL REVIEW OF VALIDITY OF ORDINANCE
in its operation The courts have the power to determine the validity of an
4. Ordinance is not in restraint of trade, oppressive ordinance; to see that the limitations existing under or
or in contravention od common rights powers granted by the Constitution and the laws are not
transcended.
No.
QUASI-JUDICIAL FUNCTION
Applies to actions of public administrative First, the respondents neither acted in any judicial or
officers required to investigate facts, hold quasi-judicial capacity nor arrogated unto themselves
hearings, and draw conclusions as a basis of their any judicial or quasi-judicial prerogatives. A petition for
official action and to exercise discretion of a certiorari under Rule 65 of the 1997 Rules of Civil
judicial nature. Procedure is a special civil action that may be invoked
only against a tribunal, board, or officer exercising
Liga ng mga Barangay v Atienza (420 SCRA 562) judicial or quasi-judicial functions.
FACTS: Elsewise stated, for a writ of certiorari to issue, the
Petitioner Liga ng mga Barangay National is the following requisites must concur:
national organization of all the barangays in the
Philippines, which pursuant to Section 492 of Republic (1) it must be directed against a tribunal, board, or
Act No. 7160, otherwise known as The Local officer exercising judicial or quasi-judicial functions;
Government Code of 1991, constitutes the duly elected (2) the tribunal, board, or officer must have acted
presidents of highly-urbanized cities, provincial without or in excess of jurisdiction or with grave abuse
chapters, the metropolitan Manila Chapter, and of discretion amounting lack or excess of jurisdiction;
metropolitan political subdivision chapters. and
(3) there is no appeal or any plain, speedy, and
Section 493 of the LGC provides that the ligas directly adequate remedy in the ordinary course of law.
elect a president, a vice-president, and five (5) members
of the board of directors. All other matters not provided A respondent is said to be exercising judicial function
for in the law affecting the internal organization shall be where he has the power to determine what the law is
governed by their respective constitution and by-laws. and what the legal rights of the parties are, and then
undertakes to determine these questions and adjudicate
The Liga then adopted and ratified its own Constitution upon the rights of the parties.
and by-laws to govern its internal organization.
Quasi-judicial function, on the other hand, is a term
One the provisions was: which applies to the actions, discretion, etc., of public
"There shall be nationwide synchronized elections for administrative officers or bodies required to investigate
the provincial, metropolitan, and HUC/ICC chapters to facts or ascertain the existence of facts, hold hearings,
be held on the third Monday of the month immediately and draw conclusions from them as a basis for their
after the month when the synchronized elections". official action and to exercise discretion of a judicial
nature.
The Liga thereafter came out with its Calendar of
Activities and Guidelines in the Implementation of the Before a tribunal, board, or officer may exercise judicial
Liga Election Code of 2002, setting on 21 October 2002 or quasi-judicial acts, it is necessary that there be a law
that gives rise to some specific rights of persons or
property under which adverse claims to such rights are A municipal corporation can repeal an ordinance only by
made, and the controversy ensuing therefrom is brought an act of equal dignity, that is, by an ordinance. The
before a tribunal, board, or officer clothed with power ordinance must expressly declare the intention to repeal.
and authority to determine the law and adjudicate the
respective rights of the contending parties. An ordinance may also be repealed or superseded by
express provision of a statute or charter change or by
The Court agreed that respondent's act was in the implication resulting from conflict in the provisions of the
exercise of legislative and executive functions, statute or charter change with the provisions of the
respectively, and not of judicial or quasi-judicial ordinance.
functions. On this score alone, certiorari will not lie.
IMPLIED REPEALS
Second, the Court concludes that petitioners seek the
declaration by this Court of the unconstitutionality or Not favored by courts. Can only be found when there is an
illegality of the questioned ordinance and executive irreconcilable conflict between two laws.
order. It, thus, partakes of the nature of a petition for
declaratory relief over which this Court has only SANGGUNIAN DOES NOT POSSESS CONTEMPT OR
appellate, not original, jurisdiction. The Constitution SUBPOENA POWER
provides: Cannot be deemed implied in the delegation of certain
legislative functions to local legislative bodies
Sec. 5. The Supreme Court shall have the following
powers: POWER TO LICENSE
Governmental restriction upon private rights and is valid
(1) Exercise original jurisdiction over cases affecting only if based upon an exercise by the municipality of its
ambassadors, other public ministers and consuls, and
police or taxing powers.
over petitions for certiorari, prohibition, mandamus,
quo warranto, and habeas corpus.
POWER TO LICENSE AS POWER TO PROHIBIT
(2) Review, revise, reverse, modify, or affirm on appeal Power of regulation may imply power to prohibit
or certiorari as the law or the Rules of Court may businesses or activities that are inherently or potentially of
provide, final judgments and orders of lower courts in: menace to the public welfare, health, safety, morals or
order.
(a) All cases in which the constitutionality or validity of
any treaty, international or executive agreement, law, Does not extend to prohibition of lawful businesses or
presidential decree, proclamation, order, instruction, activities.
ordinance, or regulation is in question. (Italics
supplied). Includes power to prohibit and to impose penalty for
violation of the prohibition.
As such, this petition must necessary fail, as this Court
does not have original jurisdiction over a petition for
declaratory relief even if only questions of law are NATURE OF LICENSE
involved.
A license or permit cannot be revoked arbitrarily. There is
no contract or vested right or property in a license or permit
Third, the Court stated that petitioner clearly
disregarded the hierarchy of courts. There is no reason as against the power of the state or a municipality to revoke
or circumstance given by petition on why direct it for a cause or in exercise of police power.
recourse to the Court be allowed.
Power to license and fix rates vested in the municipal
The Court has decided that disregard to the hierarchy of legislative body CANNOT BE DELEGATED.
courts can be allowed by two reasons:
AMOUNT OF LICENSE FEE
(1) it would be an imposition upon the precious time of Depends upon the legislative policy of the particular state,
this Court; and the terms of the grant of power, and the construction placed
(2) it would cause an inevitable and resultant delay, thereon by the courts.
intended or otherwise, in the adjudication of cases,
which in some instances had to be remanded or referred
For revenue purposes – left to the discretion of
to the lower court as the proper forum under the rules
municipal authorities
of procedure, or as better equipped to resolve the issues
because this Court is not a trier of facts. (Santiago v. Given as a police power for regulation -must be
Vasquez) limited to approximately the cost of regulation.
POWER TO REPEAL ORDINANCE
Authority to revoke or suspend licenses or permits for
legal cause can be delegated to a specified official or board.
FDA Administrator likewise directed the closure of the Conversely, the mayor may not revoke his own permit
drug store for 3 days and its payment of a fine and was on the ground that the compliance with the conditions
allowed to resume operations after 3 days. laid down and found satisfactory by the FDA when it
issued its license is in his own view not acceptable. This
Yambao wrote a letter to the petitioner seeking very same principle also operates on the FDA. The FDA
reconsideration of the revocation of mayor's permit but may not revoke its license on the ground that the
got no reply. conditions laid down in the mayor's permit have been
violated notwithstanding that no such finding has been
They filed with the Regional Trial Court of Olongapo made by the mayor.
City a complaint for mandamus. Meanwhile, Yambao’s
request of permission from the FDA to exchange the As the infraction involved the pharmacy and drug laws
locations of the San Sebastian Drug Store and the which the FDA had the direct responsibility to execute,
Olongapo City Drug was granted. But when petitioner the mayor had no authority to interpose his own
came to know about it, he disapproved it and suspended findings on the matter and substitute them for the
also the mayor’s permit of the other drug store. A decision already made by the FDA. The condition
motion for reconsideration was filed by the Yambaos to allegedly violated related to a national law, not to a
the FDA was denied. The RTC judge rendered decision matter of merely local concern, and so came under the
declaring the revocation of the mayor’s permit for San 'jurisdiction of the FDA
Sebastian Drug Store as null and void and thereafter
denied the petitioner’s motion for reconsideration.
REGULATION OF PROFESSION
ISSUE: May the mayor revoke the mayor’s permit of Issuance of a license to engage in the practice of a
the San Sebastian Drug Store based on the above-stated particular profession by the Board or Commission
facts? tasked to regulate the particular profession.
HELD: FDA was created under R.A. No. 3720 and Permit to do business License to engage in the
vested with all drug inspection functions in line with particular profession
"the policy of the State to insure safe and good quality Granted by local Exclusive domain of the
supply of food, drug and cosmetics, and to regulate the authorities administrative agency
production, sale and traffic of the same to protect the
health of the people. P.D. No. 280 gave more teeth to Authorizes person to Grant of authority to a
the powers of the FDA in regulating the drugstores in engage in business or natural person to engage
the sale or dispensation of drugs, or rules and some form of commercial in the practice or exercise
regulations issued pursuant thereto. For the mayor, it activity of his profession
was granted by the charter of Olongapo the power to
arrest violators of health laws, ordinances, rules and A license is not in the nature of a contract but a special
regulations and to recommend the revocation or privilege and not permanent or absolute.
suspension of the permits of the different establishments
to the City Mayor for violation of health laws, Ultra vires acts or acts beyond the scope of one’s authority
ordinances, rules and regulations. A study of the said
are null and void and cannot be given any effect.
laws will show that the authorization to operate issued
Issuance of license and permits by a municipality or city is CONSTRUCTION OF RULES AND ACTS
essentially regulatory in nature, essentially in the exercise Liberal. The validity of the action of a municipal council
of the police power of the state within the contemplation of will be upheld by the language of the proceedings of the
the general welfare clause of the Local Government Code. meetings if it is fairly susceptible of such construction.
The legislature intended to treat the vice-mayor not only as SECTION 51. Full Disclosure of Financial and
the presiding officer of the Sangguniang Panlungsod but Business Interest of Sanggunian Members
also as a member of the Sangguniang Panlungsod. Made in writing, submitted to the secretary of the
Sanggunian or committee
CRIMINAL PENALTIES FOR FAILURE TO DISCLOSE Grant of veto power to Local Chief Executive accords him
Violation of RA 67133 the discretion to sustain a resolution or ordinance in the
-imprisonment not exceeding 5yrs; or first instance or to veto it and return it with his objections to
-fine not exceeding 5000 the Sanggunian.
-disqualification to hold public office
-proven in administrative proceeding, sufficient cause for Sanggunian may override the veto by 2/3 vote of all is
removal or dismissal even if no criminal prosecution is members.
instituted
SECTION 55. Veto Power of the Local Chief
SECTION 52. Sessions Executive