Chapter 3: PROPERTY IN RELATION TO THE PERSON

TO WHOM IT BELONGS

Art. 419. Property is either of public dominion or of private ownership.

Art. 420. The following things are property of public dominion:

(1) Those intended for PUBLIC USE, such as roads, canals, rivers torrents, ports
and bridges constructed by the State, banks, shores, roadsteads, and others
of similar character;

(2) Those which belong to the State, without being for public use, and are intended
for some PUBLIC SERVICE or for the DEVELOPMENT OF THE NATIONAL
WEALTH.

o Kinds of Property of PUBLIC DOMINION:

1. For PUBLIC USE – may be used by all

a. May be owned by State - Art. 420 (1)
b. May be owned also by LGUs or political subdivisions (Art. 424)

2. For PUBLIC SERVICE – may not be used by all, but for some state functions or services;
may be used only by authorized persons ( examples: govt. hospitals and buildings, military
arms).

o Only the State may own property of public service deemed as public dominion (Art. 420 (2))
o Unlike the State, LGU´s have no property of public domain for public service (see Arts. 423,
424)

3. For the DEVELOPMENT OF NATIONAL WEALTH – mines and natural resources (Art.
420 (2))

o RULES/PRINCIPLES/CHARACTERISTICS re PUBLIC DOMINION PROPERTIES:

1. Outside the commerce of man. It cannot be leased, donated, sold or be an object

of any contract (Mun. of Cavite v. Rojas), except if the object of the contract is for its
repair or improvement or other incidental things of similar character. In short, it cannot
be appropriated (Maneclang et al. v. IAC, supra)

2. Cannot be subject of compromise agreement adjudicating ownership (id)

3. Cannot be acquired by prescription (id)

4. Cannot be registered in favor of any person under the Land Registration Law, and
its inclusion in the certificate of torrens title does not convert it into property of private
ownership nor confer title to registrant. It remains as property of public dominion.

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 o If the property in litigation is of public domain, the registration or cadastral court
does not have jurisdiction to adjudicate the land as private property. Here, res
judicata does not apply. (id)

5. Property of public domain and its usufruct cannot be levied upon by execution nor
can they be attached as they are deemed public in character. The franchise to use
and build a building in a public market is covered by this rule. But the income generated
from the use of the franchise may be attached. (Tufexis v. Olaguera 32 Phil. 654).

6. In general, it can be used by all or anyone.

7. It may be real or personal property as no distinction is given by law.

8. Cannot be burdened by any voluntary easement.

Heirs of Proceso Bautista v. Sps. Barza, GR 79167, May 7, 1992 ruled:

• Function of administering and disposing lands of public domain in manner prescribed
by law is NOT entrusted to the courts but to EXECUTIVE OFFICIALS.
• State may own properties in its public capacity (properties of public dominion) and
its private capacity (patrimonial property)

Santos v. Moreno L-15829, Dec. 4, 1967 – S.C ruled that the Canal may not be ordered
open. If canals are constructed by private persons within private land and devoted mainly
for private use, it must be deemed private property. And under Art.428, the owner has
the right to enjoy and dispose of a thing, without other limitations than those established
by law.

COMPARE with Mercado v. Mun. Pres. Of Macabebe, 59 Phil. 592 – S.C. ruled that the
Canal should be opened. Private owner lost exclusive right to use the canal he built
connecting the creek and river, for he allowed others to use the canal in his land with
Torrens title. He has no right to the creek and river as these are properties of public
domain and cannot be registered.

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PATRIMONIAL PROPERTY

• 3 Kinds of PATRIMONIAL Property:

A. 1. Patrimonial property of the State
o All other property of the state which is not of part of the public dominion is patrimonial
property. (Art. 421)
o Property of public dominion, when no longer intended for public use or for public service,
shall form part of the patrimonial property of the State. (Art. 422).
2. Patrimonial property of Political Subdivisions (LGUs) – see [par. 2, Art. 424]
3. Patrimonial property of Individuals [Art. 425]

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Art. 421. All other property of the State, which is not of the character stated in the
preceeding article, is patrimonial property.

* Art. 422. Property of public dominion, when no longer intended for public use or
for public service, shall form part of the patrimonial property of the State.

Define: Patrimonial property is wealth owned by the State (or LGUs) in its PRIVATE, as
distinguished from its public capacity; it is not devoted to public use, public service or
the development of the national wealth.

• Patrimonial property may be acquired by private individuals, entities thru

prescription or sale or donation.

CONVERSION OF PUBLIC DOMINION, TO PATRIMONIAL PROPERTY:

Art. 422. Property of public dominion, when no longer intended for public use or for
public service, shall form part of the patrimonial property of the State.

o The law does not specify how to convert public dominion to patrimonial property.
o But Supreme Court decisions show that CONVERSION may be made as follows:

(1.) By NON-USE or the actual dedication of public property to some use other than
"public use" or "public service" -- enough to legally convert such property into
patrimonial property.

i. Mun. of Oas v. Roa, 7 Phil. 20 (1906) – municipality no longer use a public

plaza as such and converted the place into a storage building of govt. property
and for housing; the property has become patrimonial; may be sold to private
individual.

ii. Municipa lity of Hinunangan v. Director of Lands, 24 Phil. 124 (1913) – a

fortress which is public dominion property for it is for public service, when no
longer used as such, still belongs to the State, and is now converted to
patrimonial property of State.

(2.) By Law or FORMAL DECLARATION on the part of the Government, through the
EXECUTIVE department or the LEGISLATIVE, or even by a political subdivision (if
allowed by its charter), that the land is no longer needed for public service, or for public
use.

o Faustino Ignacio v. Dir. Of Lands, L-12958, May 30, 1960 –

„Consequently, until a formal declaration on the part of the Government, through
the EXECUTIVE DEPARTMENT or the LEGISLATURE, to the effect that the
land in question is no longer needed for coast guard service, for public use or for
special industries, they continue to be part of the public domain, not available for
private appropriation or ownership.“
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 o Cebu Oxygen and Acetylene Co. Inc. v. Bercilles, L-40474, Aug. 29, 1975 –
Cebu City Council and upon approval of mayor passed a resolution withdrawing
from public use the terminal portion of an abandoned public road, converting it to
patrimonial property. This allowed the City (permitted by its City Charter) to sell
this real estate thru public bidding. COAC bought it and have the land registered
in its name. Sale is ruled valid by SC.

o LAUREL V. GARCIA, G.R. No. 92013, July 25, 1990 – which declare that:
(a) there is a need for a LAW OR FORMAL DECLARATION TO WITHDRAW the
Roppongi property from public domain to make it alienable, and; (b) a need for
LEGISLATIVE AUTHORITY to allow the SALE of the property.

Note: Waterworks system while it is used to render public service, is not public dominion
property, because the system serves only those who pay for the use of the water. As a
private property, it cannot be taken without just compensation, even if mandated by law,
(RA 1383 which vests ownership of NAWASA to the municipal water system without
compensation.) This would be an unconstitutional exercise of eminent domain. (City of
Cebu v. NAWASA L-12892, Apr. 30, 1960; City of Baguio v. NAWASA)

WHAT ARE THE PROPERTIES OF LGUs?

Art. 423. The property of provinces, cities and municipalities is divided into property
for public use and patrimonial property.

Art. 424. Property for PUBLIC USE, in the provinces, cities and municipalities consist
of the provincial roads, city streets, municipal streets, the squares, fountains, public
waters, promenades, and public works for public service paid for by said provinces,
cities, or municipalities.

All other property possessed by any of them is patrimonial and shall be governed
by this Code, without prejudice to the provisions of special laws.

o Arts. 423 classify property of political subdivisions or LGU’s into 2 kinds only:
(1) PUBLIC USE – see enumeration in Art. 424
(2) PATRIMONIAL PROPERTY.

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 o National Government still controls disposition of properties of political subdivisions if
these came from the State. This is presumed unless the Pol. Subd. can prove that the
properties were acquired with their own funds. If so, then the latter can have ownership
and control. (Salas v. Jarencio Aug. 30, 1972)

o Properties of municipality devoted to public use or public service may not be attached
and sold for payment o f judgment against the municipality. (Viuda de Tan Toco v. Mun.
Council of Iloilo, 49 Phil. 52)

Remedy: Seek for patrimonial properties of the municipality which can be levied or
attached. (Mun. of Pasay v. Manaois et al., June 30, 1950)

o A previous private land donated to the town by a private person who allowed this to
be used as town plaza by the general public for a long time, is deemed converted into
property for public use and becomes part of public domain. Thus, it may not be donated
to the church by the town, nor can the church acquire its ownership by prescription.
Town plaza as public dominion property is outside the commerce of man; it is not
patrimonial property. (Harty v. Mun. of Victoria 13 Phil. 152)

o Who will you sue? Patrimonial Property of Municipality is administered similar to

property of private corporations. Hence, the municipality may be sued when it
involves its patrimonial property. Municipal or city council serves as board of
directors, with mayor as general manager.

PRIVATE OR PATRIMONIAL PROPERTY OF PRIVATE PERSONS:

Art. 425. Property of private ownership, besides the patrimonial property of the State,
provinces, cities and municipalities, consists of all property belonging to private
persons, either individually or collectively.

o Note however that an alien has no right to acquire any lands of any kind, except by
hereditary succession. (Krivenko v. Register of Deeds G.R. No. L-630, November 15, 1947)

o The same rule applies to foreign corporations, even if it is religious or non-stock foreign
corporation. (Art. 12, Sec.3, 1987 Phil. Constitution)