Bhenz Bryle Niňo M.

Tomilap
Atty. Fr. Dan de los Angeles

Law on Public Corporation (7042 Class; Saturday – 7:00 to 0:00 PM)

Midterm Period Long Take Home Quiz

a. Under Section 14 of the Local Government Code, as a general rule, a new LGU
begins its corporate existence from the time of the election and qualification of its
chief executive and majority of the members of the Sanggunian, unless the
law/ordinance creating such LGU provides some other fixed time. If the
law/ordinance creating the LGU does not specify the beginning of its corporate
existence, then the general rule shall be followed.

b. Election under Section 14 is to be construed as popular election, or the receiving of

the highest number of votes among political candidates for a particular public office.
However, it is not enough for the local executive to receive the highest number of
votes. Election is deemed to include their proclamation as governor of the province
or mayor of the city or municipality, or punong barangay in the case of barangays, as
well as the members of their respective sanggunians.

c. Under Section 15 of the Local Government Code, an LGU has a two-fold personality
because it is to be deemed as both a body politic and a corporation. It is authorized
to exercise governmental powers as a political subdivision of the national
government in promoting the public welfare, and on the other hand, exercise powers
that are proprietary in nature as a corporate entity. It may sue and be sued, and it
may also descend into the status of a private individual and enter into contracts as a
party.

d. The general powers of the LGU under the general welfare clause (Sec. 16) are
police power, power of eminent domain, and power of taxation.

e. As ruled in the case of Parayno vs. Municipality of Calasiao, Pangasinan, a local

government is considered to have duly exercised its police powers if the following
 requisites concur: (a) Lawful subject - the interest of the public (and not of a
particular class) demands for the State’s interference; (b) Lawful means – the means
employed by the State in the exercise of its power are reasonably necessary to attain
the object sought to be accomplished. It must not be unduly oppressive and must not
amount to arbitrary interference of a business or calling.

f. It depends. In order to determine the necessity of a judicial proceeding, it must be

ascertained first whether the nuisance to be abated is a nuisance per se or a
nuisance per accidens.
As ruled in Parayno vs. Municipality of Calasiao, only a nuisance per se can
be summarily abated without the need of judicial proceedings. A nuisance per se is
one affecting the immediate safety of persons and property. If not, then it shall be
characterized as nuisance per accidens, which requires a judicial proceeding in order
to address the issue on the necessity to abate a property alleged as a nuisance.
Therefore, only nuisance per se can be summarily abated without the need of
any judicial proceeding.

g. No, members of the Sanggunian cannot do so for they do not posses contempt
powers.
As ruled in Negros Oriental Electric Cooperative vs. Sangguniang
Panlungsod of Dumaguete, sanggunians may exercise certain powers under the
general welfare clause, but issuing subpoenas to compel non-members to attend
hearings is not one of them. This is because the legislature’s contempt powers is sui
generis and local legislative bodies cannot claim to possess it for the same reasons
that the national legislature does. This means that only the legislature can exercise
such power, to the exclusion of everyone. The power is bestowed upon them by
reason of the character of the legislature as one of the three independent branches
of government, in contrary to local legislative bodies which are mere creations of law.

h. The departments affected are the Department of Agriculture, Department of Health,

Department of Social Welfare and Development, Department of Tourism, and
Department of Interior and Local Government.
i. The power to establish collection and buying stations for farm products is exclusive
to barangays. Barangays may put up buying stations in any shape or form and need
not be in elaborate structures, as long as people can go to them to sell or buy farm
products.

j. The Supreme Court laid down the 4 requisites for the exercise of eminent domain in
the case of JIL Christian School Foundation vs. Municipality of Pasig, to wit:
(a) There must be an ordinance authorizing the local chief executive to subject a
certain property to a local government unit’s power of eminent
domain/expropriation;
(b) The power must be exercised for public use, purpose, or welfare
(c) There must be payment of just compensation to the owner of the property
expropriated;
(d) A valid and definite offer to buy property must have been previously made to the
owner but the offer was not accepted. Valid and definite offer means that the
offer is not merely perfunctory or pro forma.

k. In Sangalang vs. IAC, the Court ruled that Bel Air’s claim for payment of just
compensation is not meritorious for there was no taking of property to talk about.
Instead, what existed was an exercise of police power by the State. The objective of
the municipality’s exercise of police power (the demolition of gates) in the case was
to ease vehicular traffic in Makati. Unlike the power of eminent domain, police power
may be exercised without just compensation. However, Article 436 provides: “when
any property is condemned or seized by competent authority in the interest of health,
safety or security, the owner thereof shall not be entitled to compensation, unless he
can show that such condemnation or seizure is unjustified.” Only when it is proven
that the taking is done unjustifiably can compensation be effected, but the burden to
prove such lies with the aggrieved party.

l. As ruled in Province of Camarines Sur vs. CA, LGUs need not secure prior authority
from DAR in expropriating agricultural lands because the determination of a
property’s public use subject to expropriation is an expression of legislative policy.
Otherwise, if an application for conversion with DAR is required, in effect, the
 authority to determine whether an expropriation is for a public or private purpose
would be with DAR instead.

m. Section 21 of the Local Government Code provides different requisites for the
closure of roads, depending on whether such closure is permanent or temporary. For
both cases, the closure needs to be done pursuant to an ordinance. In case of a
permanent closure, the ordinance allowing it must be approved by at least 2/3s of all
the members of the concerned LGU’s sanggunian. When necessary, an adequate
substitute to the public facility to be closed must be provided. For permanent closure
of roads, provisions for the maintenance of public safety must be made. No freedom
park shall be closed permanently without provision for its transfer or relocation to a
new site.
For temporary closures, it may only be effected during actual emergencies,
fiesta celebrations, public rallies, agricultural/industrial fairs, or undertakings for
public works and projects. The duration for such closure must be specified by the
local chief executive concerned through a written order. In all cases, a local chief
executive cannot unilaterally close a road/street without an ordinance authorizing the
same.

n. There is an implied consent from the government to be sued if the government

enters into business contracts. By then, the government is deemed to have
descended into the level of the other private contracting party.

o. As provided in the case of City of Manila vs. IAC and expounded further in Torio vs.
Fontanilla, the doctrine of respondeat superior provides that the superior/employer
must be answerable civilly for the negligence or want of skill of his agent or servant
in the course or line of employment, by which another party who is not at fault, has
been injured. Such doctrine applies to municipal corporations and are liable to civil
actions for damages when the elements of liability are present. Hence, LGUs may be
liable for the injurious acts of their employees committed in their line of duty or when
acting within the tasks assigned to them by their LGU-employers.

p. The Supreme Court ratiocinated in the case of Pechueco Sons Co. vs.Provincial
Board of Antique that the doctrine of estoppel cannot be applied in such situation.
 This is so even if the corporation has accepted the benefits of such contract and the
other has fully performed their part in the agreement. To apply the doctrine of
estoppel against a municipality would be to enable it to do indirectly what it cannot do
directly.

q. Section 23 of the Local Government Code provides that local chief executives need
to secure authority of their respective sanggunians in order to negotiate and secure
financial grants or donations in kind in support of the basic services and facilities
under Section 17 of the same code. However, for projects with national security
implications, approval of the national agency concerned is necessary. Failure of such
national agency concerned to approve on the said request within 30 days from the
receipt thereof shall be deemed as implied approval from the agency.