G.R. No. 170432 March 24, 2008 Francia vs. Municipality of Meycauayan Corona, J.
G.R. No. 170432 March 24, 2008 Francia vs. Municipality of Meycauayan Corona, J.
G.R. No. 170432 March 24, 2008 Francia vs. Municipality of Meycauayan Corona, J.
170432
office would thereby become vacant. Thus, by merely brandishing the power
to create a new municipality (if he had it), without actually creating it, he
could compel local officials to submit to his dictation, thereby, in effect,
exercising over them the power of control denied to him by the Constitution.
The power of control of the President over executive departments, bureaus
or offices includes only the power to assume directly the functions thereof or
to interfere in the exercise of discretion by its officials. It does not include the
authority to abolish an executive department or bureau, or to create a new
one. As a consequence, the alleged power of the President to create
municipal corporations would necessarily connote the exercise by him of an
authority even greater than that of control which he has over the executive
departments, bureaus or offices.
In other words, Section 68 of the Revised Administrative Code, instead of
giving the President less power over local governments than that vested in
him over the executive departments, bureaus or offices, it reverses the
process and does the exact opposite, by conferring upon him more power
over municipal corporations than that which he has over said executive
departments, bureaus or offices.
In Pelaez, this Court ruled: (1) that section 23 of Republic Act 2370 [Barrio
Charter Act, approved January 1, 1960], by vesting the power to create
barrios in the provincial board, is a "statutory denial of the presidential
authority to create a new barrio and implies a negation of the bigger power
to create municipalities," and (2) that Section 68 of the Administrative Code,
insofar as it gives the President the power to create municipalities, is
unconstitutional (a) because it constitutes an undue delegation of legislative
power and (b) because it offends against section 10 (1) of Article VII of the
Constitution, which limits the President's power over local governments to
mere supervision.
Respondents argued that the rule in Pelaez does not apply in this case
because unlike the municipalities involved in Pelaez, Balabagan is at least a
de facto corporation, having been organized under color of a statute before
this was declared unconstitutional, its officers having been either elected or
appointed, and the municipality itself having discharged its corporate
functions for the past five years preceding the institution of this action. As a
de facto corporation, its existence cannot be collaterally attacked, but it may
be inquired into directly in an action for quo warranto at the instance of the
State and not of an individual like Balindong.
ISSUE: WON the existence of Balabagan may be questioned by an individual
like Balindong.
RULING: As a general rule, an inquiry into the legal existence of a
municipality is reserved to the State in a proceeding for quo warranto or
other direct proceeding, and only in a few exceptions may a private person
exercise this function of government. But the rule disallowing collateral
attacks applies only where the municipal corporation is at least a de facto
corporation. For where it is neither a corporation de jure nor de facto, but a
nullity, the rule is that its existence may be, questioned collaterally or
directly in any action or proceeding by anyone whose rights or interests are
affected thereby, including the citizens of the territory incorporated unless
they are estopped by their conduct from doing so.
ISSUE: WON Balabagan is at least a de facto municipal corporation.
RULING: No.
Respondents argue that Balabagan is a de facto corporation, having been
organized before the Courts decision in Pelaez. Hence, the question is
policy in the light of the nature both of the statute and of its previous
application, demand examination.
HON. JOSE D. LINA, JR. vs. HON. FRANCISCO DIZON PAO and TONY
CALVENTO
QUISUMBING, J.:
Tony Calvento was appointed agent by the PCSO to install Terminal OM 20 for
the operation of lotto. He asked Mayor Cataquiz, Mayor of San Pedro, Laguna,
for a mayor's permit to open the lotto outlet. This was denied on the ground
that an ordinance was passed by the Sangguniang Panlalawigan of Laguna
(Kapasiyahan Blg. 508, T. 1995) prohibiting the operation of lotto in Laguna.
Thereafter, Calvento filed a complaint for declaratory relief with prayer for
preliminary injunction and TRO. He prayed for (1) a preliminary injunction or
TRO, ordering the defendants to refrain from implementing or enforcing
Kapasiyahan Blg. 508, T. 1995; (2) an order requiring Hon. Cataquiz to issue
a business permit for the operation of a lotto outlet; and (3) an order
annulling or declaring as invalid Kapasiyahan Blg. 508, T. 1995.
The RTC enjoined the petitioners from implementing or enforcing resolution
or Kapasiyahan Blg. 508, T. 1995.
ISSUE: WON Kapasiyahan Blg. 508, T. 1995 is valid.
RULING: Yes. The Ordinance merely states the objection of the council to the
operation of lotto in the province of Laguna. It is but a mere policy statement
on the part of the local council, which is not self-executing. Nor could it serve
as a valid ground to prohibit the operation of the lotto system in the province
of Laguna. Petitioners admit so when they stated in their petition that: xxx
the resolution is a policy declaration of the Provincial Government of Laguna
of its vehement opposition and/or objection to the operation of and/or all
forms of gambling including the Lotto operation in the Province of Laguna.
As a policy statement expressing the local government's objection to the
lotto, such resolution is valid.
ISSUE: WON an LGU may validly prohibit the operation of lotto and all forms
of gambling in the exercise of its local police power embodied in the General
Welfare Clause of the LGC.
RULING: No. While the Ordinance is upheld as a valid as part of the LGUs
autonomy to air its views which may be contrary to that of the national
government, this freedom to exercise contrary views does not mean that
local governments may actually enact ordinances that go against laws duly
enacted by Congress. Given this premise, the assailed resolution in this case
could not and should not be interpreted as a measure or ordinance
prohibiting the operation of lotto.
The game of lotto is a game of chance duly authorized by the national
government through an Act of Congress. Republic Act 1169, as amended, is
the law which grants a franchise to the PCSO and allows it to operate the
lotteries.
This statute remains valid today. While lotto is clearly a game of chance, the
national government deems it wise and proper to permit it. Hence, the
Sangguniang Panlalawigan of Laguna, a local government unit, cannot issue
a resolution or an ordinance that would seek to prohibit permits. Stated
otherwise, what the national legislature expressly allows by law, such as
lotto, a provincial board may not disallow by ordinance or resolution.
The power of LGUs to legislate and enact ordinances and resolutions is
merely a delegated power coming from Congress. Municipal governments
are only agents of the national government. The delegate cannot be superior
to the principal or exercise powers higher than those of the latter. It is a
heresy to suggest that the local government units can undo the acts of
Congress, from which they have derived their power in the first place, and
negate by mere ordinance the mandate of the statute.
Ours is still a unitary form of government, not a federal state. Being so, any
form of autonomy granted to local governments will necessarily be limited
and confined within the extent allowed by the central authority. Besides, the
principle of local autonomy under the 1987 Constitution simply means
"decentralization". It does not make local governments sovereign within the
state or an "imperium in imperio."