MANILA V 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.