Tan Toco v.

Municipality of Iloilo

49 Phil 52

FACTS:

The municipal council of Iloilo, the defendant, is reconstructing or widening the

road in their town. The plaintiff, Tan Toco was not able to receive a compensation for the

two strips of land, consisting 592 sq.m and 59 sq.m with the amount of P42,966.40. Hence,

Tan Toco filed a complaint in Court of First Instance in Iloilo which ordered the said

municipality to pay the said amount with its interest. The said judgement was appealed and

affirmed by the Supreme Court.

However, the municipality is unable to pay to Tan Toco considering on the account

of lack of funds. As a result, Tan Toco issued a writ of execution against the property of the

said municipality, by virtue of which the sheriff attached two auto trucks. one police patrol

automobile, the police stations on Mabini street, and in Molo and Mandurriao and the

concrete structures with the corresponding lots.

The provincial fiscal of Iloilo filed a motion upon the notice of the sale of said

property had been made, in which the Court of First Instance praying that the attachment

on the said property be dissolved and the said attachment be declared null and void as

being illegal and violative of the rights of the defendant municipality. It was affirmed; thus,

the abovementioned properties are null and void, thereby dissolving the said attachment.

Tan Toco appealed the decision ofCFI Iloilo.

ISSUE:

Whether or not the Municipal properties can be executed in lieu ofthe unsatisfied

obligation.
RULING:

The principle governing the property of the public domain of the State is applicable

to property for public use of the municipalities as said municipal property is similar in

character, hence, the Supreme Court denied appeal and affirmed the decision of the Court

of Instance in Iloilo. It is stated on the said principle that State is not within the commerce

of man and consequently, is unalienable and not subject to prescription. Likewise, the

property for public use of the municipality is not within the commerce of man so long as it

is used by the public and consequently, said property is also inalienable. The rule is that

property held for public uses, such as public buildings, streets, squares. parks. promenades,

wharves landing places, fire engines, hose and hose carriages, engine houses, public

markets, hospitals, cemeteries, and generally everything held for governmental purposes,

is not subject to levy and sale under execution against such corporation.