Substantial Due Process J. Balacuit v.

CFI (1988) Facts The Municipal Board of Butuan City issued Ordinance 640 to address the complaint of parents that it is too financially burdensome for them to pay the full admission price for their children. The Ordinance provided that admission tickets for movies, public exhibitions, games, contests, and other performances, should be sold at half the price for children between 7 and 12 years of age. Violators would be penalized with imprisonment and/or a fine. Petitioners are managers of theaters which were affected by Ordinance 640.They claim that it violates the due process clause of the constitution since it is: o Oppressive, unfair, unjust o Undue restraint on trade o Violates the right of persons to enter into contracts Issue W/N Ordinance 640 violates the due process clause of the constitution Decision The court ruled in favor of petitioners. Ordinance 640 is an invalid exercise of police power and, as a consequence, it violates the due process clause of the constitution. Ratio A valid exercise of police power requires that it should be for (a.) the publics interest, (b.) the means employed should be reasonable and it should not be oppressive. As for the case at bar, the court did not find a tangible link between the ordinance and the promotion of public health, security, morals, or welfare. Furthermore, the means employed were judged to be unfair since they unjustly prejudice the affected businesses by restraining their right to trade and even violating their right to enter into contracts.