United BF Homeowners’ Asso., Inc., et. al. vs.

The City Mayor of

Paranaque G.R. NO. 141010
February 7, 2007

Facts:

• The Municipal Council of Parañaque enacted Municipal Ordinance No. 97-08 which
reclassifying El Grande and Aguirre Avenues in BF Homes Parañaque from
residential to commercial areas.
• Petitioners filed with the Court of Appeals a petition for prohibition with an
application for temporary restraining order and preliminary injunction. Petitioners
alleged that the reclassification of certain portions of BF Homes Parañaque from
residential to commercial zone is unconstitutional because it amounts to
impairment of the contracts between the developer of BF Homes Parañaque and
the lot buyers.
• Public respondents alleged that the passage of Municipal Ordinance No. 97-08 is a
valid exercise of police power by the Municipal Council of Parañaque and that such
ordinance can nullify or supersede the contractual obligations entered into by the
petitioners and the developer.
• The Court of Appeals declared its judgment in favor of respondents and held that
Municipal Ordinance No. 97-08 is a valid exercise of police power by the
Municipality of Parañaque. Hence, this petition.

Issue: Whether or Not Municipal Ordinance No. 97-08 is a valid exercise of police power
because it amounts to impairment of contracts between developer BF Homes and the lot
buyers.

Ruling: Yes. Municipal Ordinance No. 97-08 is a valid exercise of police power.

The Court has upheld in several cases the superiority of police power over the non
impairment clause. The constitutional guaranty of non-impairment of contracts is limited
by the exercise of the police power of the State, in the interest of public health, safety,
morals and general welfare.

Resolution No. 27. s-1960 declaring the western part of Highway 54, now E. de los
Santos Avenue (EDSA, for short) from Shaw Boulevard to the Pasig River as an industrial
and commercial zone, was obviously passed by the Municipal Council of Mandaluyong,
Rizal in the exercise of police power to safeguard or promote the health, safety, peace,
good order and general welfare of the people in the locality. Judicial notice may be taken
of the conditions prevailing in the area, especially where Lots Nos. 5 and 6 are located.
The lots themselves not only front the highway; industrial and commercial complexes
have flourished about the place. EDSA, a main traffic artery which runs through several
cities and municipalities in the Metro Manila area, supports an endless stream of traffic
and the resulting activity, noise and pollution are hardly conducive to the health, safety
or welfare of the residents in its route. Having been expressly granted the power to
adopt zoning and subdivision ordinances or regulations, the municipality of
Mandaluyong, through its Municipal Council, was reasonably, if not perfectly, justified
under the circumstances, in passing the subject resolution.