I.

INTRODUCTION

A.

Concept
1. Distinguished from Government Owned and Controlled Corporation
2. Classifications: quasi-corporations and municipal corporations
Section 6, Section 15 LGC, Book 1, Art.37, Civil Code
Cases:
Municipality of Catbalogan v. Director of Lands, 17 Phil 216
Villas v. City of Manila 41 Phil, 953 (1921)
Section 6. Authority to Create Local Government Units. - A local government unit may be created,
divided, merged, abolished, or its boundaries substantially altered either by law enacted by Congress in
the case of a province, city, municipality, or any other political subdivision, or by ordinance passed by the
sangguniang panlalawigan or sangguniang panlungsod concerned in the case of a barangay located within
its territorial jurisdiction, subject to such limitations and requirements prescribed in this Code.

B. Nature and Status of Municipal Corporations

1. Municipal Corporations as Juridical Entities
Cases:
Lidasan v. COMELEC 12 SCRA 496 (1961)
Republic v. City of Davao, G.R. No. 148622, September 12, 2002
2. Local Government Units
Barangay (Sections 384-439, LGC)
Municipality (Sections 440-447, LGC)
City (Sections 448-458, LGC)
Province (Sections 459-490, LGC)
Autonomous Regions (Section 526, LGC; Sections 1, 15, 16, 17, 18, 20 and 21,
Art. X, Constitution)
Section 526. Application of this Code to Local Government Units in the Autonomous Regions. This Code shall apply to all provinces, cities, municipalities and barangays in the autonomous regions
until such time as the regional government concerned shall have enacted its own local government code.

Section 15. Political and Corporate Nature of Local Government Units. - Every local government unit
created or recognized under this Code is a body politic and corporate endowed with powers to be
exercised by it in conformity with law. As such, it shall exercise powers as a political subdivision of the
national government and as a corporate entity representing the inhabitants of its territory.
Article 37. Juridical capacity, which is the fitness to be the subject of legal relations, is
inherent in every natural person and is lost only through death. Capacity to act, which is the
power to do acts with legal effect, is acquired and may be lost. (n)

Section 1. The territorial and political subdivisions of the Republic of the Philippines are the
provinces, cities, municipalities, and barangays. There shall be autonomous regions in Muslim
Mindanao and the Cordilleras as hereinafter provided.

3. Local Governments (also referred to as municipal or public corporations) as part of the Executive
Branch
Sections 2 and 4, Article X, Constitution and Section 25,LGC
Cases:
Province of Batangas v. Romulo, 429 SCRA 736 (2004)
National Liga ng mga Barangay v. Paredes, G.R. No. 152774, May 27, 2004

Section 15. There shall be created autonomous regions in Muslim Mindanao and in the Cordilleras
consisting of provinces, cities, municipalities, and geographical areas sharing common and distinctive
historical and cultural heritage, economic and social structures, and other relevant characteristics within
the framework of this Constitution and the national sovereignty as well as territorial integrity of the
Republic of the Philippines.

Section 2. The territorial and political subdivisions shall enjoy local autonomy.
Section 4. The President of the Philippines shall exercise general supervision over local governments.
Provinces with respect to component cities and municipalities, and cities and municipalities with respect
to component barangays, shall ensure that the acts of their component units are within the scope of their
prescribed powers and functions.
Section 25. National Supervision over Local Government Units. (a) Consistent with the basic policy on local autonomy, the President shall exercise general
supervision over local government units to ensure that their acts are within the scope of their
prescribed powers and functions.
The President shall exercise supervisory authority directly over provinces, highly urbanized
cities, and independent component cities; through the province with respect to component
cities and municipalities; and through the city and municipality with respect to barangays.
(b) National agencies and offices with project implementation functions shall coordinate with
one another and with the local government units concerned in the discharge of these functions.
They shall ensure the participation of local government units both in the planning and
implementation of said national projects.
(c) The President may, upon request of the local government unit concerned, direct the
appropriate national agency to provide financial, technical, or other forms of assistance to the
local government unit. Such assistance shall be extended at no extra cost to the local
government unit concerned.
(d) National agencies and offices including government-owned or controlled corporations with
field units or branches in a province, city, or municipality shall furnish the local chief executive
concerned, for his information and guidance, monthly reports including duly certified
budgetary allocations and expenditures.

AUTONOMOUS REGIONS

Section 16. The President shall exercise general supervision over autonomous regions to ensure that laws
are faithfully executed.
Section 17. All powers, functions, and responsibilities not granted by this Constitution or by law to the
autonomous regions shall be vested in the National Government.
Section 18. The Congress shall enact an organic act for each autonomous region with the assistance and
participation of the regional consultative commission composed of representatives appointed by the
President from a list of nominees from multi-sectoral bodies. The organic act shall define the basic
structure of government for the region consisting of the executive department and legislative assembly,
both of which shall be elective and representative of the constituent political units. The organic acts shall
likewise provide for special courts with personal, family, and property law jurisdiction consistent with the
provisions of this Constitution and national laws.
The creation of the autonomous region shall be effective when approved by majority of the votes cast by
the constituent units in a plebiscite called for the purpose, provided that only provinces, cities, and
geographic areas voting favorably in such plebiscite shall be included in the autonomous region.
Section 19. The first Congress elected under this Constitution shall, within eighteen months from the time
of organization of both Houses, pass the organic acts for the autonomous regions in Muslim Mindanao and
the Cordilleras.
Section 20. Within its territorial jurisdiction and subject to the provisions of this Constitution and national
laws, the organic act of autonomous regions shall provide for legislative powers over:

1.
2.
3.
4.
5.
6.
7.
8.
9.

Administrative organization;
Creation of sources of revenues;
Ancestral domain and natural resources;
Personal, family, and property relations;
Regional urban and rural planning development;
Economic, social, and tourism development;
Educational policies;
Preservation and development of the cultural heritage; and
Such other matters as may be authorized by law for the promotion of the general welfare of the
people of the region.

Section 21. The preservation of peace and order within the regions shall be the responsibility of the local
police agencies which shall be organized, maintained, supervised, and utilized in accordance with
applicable laws. The defense and security of the regions shall be the responsibility of the National
Government.

II.

CONSTITUTIONAL AND LEGAL FRAMEWORK

A. 1987 Constitution
1. Article VII, Sections 1 and 17 on The Presidents power over local governments
Case:
The Province of Negros Occidental v. COA, et al., G.R. No. 182574, September 28, 2010
Section 1. The executive power shall be vested in the President of the Philippines.
Section 17. The President shall have control of all the executive departments, bureaus, and offices. He
shall ensure that the laws be faithfully executed.
2. Article X, Sections 1-14
Case:
Buklod ng Magbubukid sa Lupaing Ramos, Inc. v. E.M. Ramos and Sons, Inc., G.R.
No. 131481, March 16, 2011
ARTICLE
LOCAL GOVERNMENT

GENERAL PROVISIONS
Section 1. The territorial and political subdivisions of the Republic of the Philippines are the provinces,
cities, municipalities, and barangays. There shall be autonomous regions in Muslim Mindanao and the
Cordilleras as hereinafter provided.
Section 2. The territorial and political subdivisions shall enjoy local autonomy.
Section 3. The Congress shall enact a local government code which shall provide for a more responsive
and accountable local government structure instituted through a system of decentralization with effective
mechanisms of recall, initiative, and referendum, allocate among the different local government units
their powers, responsibilities, and resources, and provide for the qualifications, election, appointment and
removal, term, salaries, powers and functions and duties of local officials, and all other matters relating
to the organization and operation of the local units.
Section 4. The President of the Philippines shall exercise general supervision over local governments.
Provinces with respect to component cities and municipalities, and cities and municipalities with respect
to component barangays, shall ensure that the acts of their component units are within the scope of their
prescribed powers and functions.
Section 5. Each local government unit shall have the power to create its own sources of revenues and to
levy taxes, fees and charges subject to such guidelines and limitations as the Congress may provide,
consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively
to the local governments.
Section 6. Local government units shall have a just share, as determined by law, in the national taxes
which shall be automatically released to them.

Section 7. Local governments shall be entitled to an equitable share in the proceeds of the utilization and
development of the national wealth within their respective areas, in the manner provided by law, including
sharing the same with the inhabitants by way of direct benefits.
Section 8. The term of office of elective local officials, except barangay officials, which shall be
determined by law, shall be three years and no such official shall serve for more than three consecutive
terms. Voluntary renunciation of the office for any length of time shall not be considered as an
interruption in the continuity of his service for the full term for which he was elected.
Section 9. Legislative bodies of local governments shall have sectoral representation as may be
prescribed by law.
Section 10. No province, city, municipality, or barangay may be created, divided, merged, abolished, or
its boundary substantially altered, except in accordance with the criteria established in the local
government code and subject to approval by a majority of the votes cast in a plebiscite in the political
units directly affected.
Section 11. The Congress may, by law, create special metropolitan political subdivisions, subject to a
plebiscite as set forth in Section 10 hereof. The component cities and municipalities shall retain their
basic autonomy and shall be entitled to their own local executive and legislative assemblies. The
jurisdiction of the metropolitan authority that will thereby be created shall be limited to basic services
requiring coordination.
Section 12. Cities that are highly urbanized, as determined by law, and component cities whose charters
prohibit their voters from voting for provincial elective officials, shall be independent of the province. The
voters of component cities within a province, whose charters contain no such prohibition, shall not be
deprived of their right to vote for elective provincial officials.
Section 13. Local government units may group themselves, consolidate or coordinate their efforts,
services, and resources for purposes commonly beneficial to them in accordance with law.
Section 14. The President shall provide for regional development councils or other similar bodies
composed of local government officials, regional heads of departments and other government offices, and
representatives from non-governmental organizations within the regions for purposes of administrative
decentralization to strengthen the autonomy of the units therein and to accelerate the economic and social
growth and development of the units in the region.
2. Article XVIII, Section 9
Section 9. A sub-province shall continue to exist and operate until it is converted into a regular province
or until its component municipalities are reverted to the mother province
B. Republic Act 7160 - Local Government Code of 1991, as amended (effectivity
date: January 1, 1992)
1. Extent of application: provinces, cities, municipalities, barangays and other political
subdivisions (Sec. 4, LGC) Section 4. Scope of Application. - This Code shall apply to all
provinces, cities, municipalities, barangays, and other political subdivisions as may be created by
law, and, to the extent herein provided, to officials, offices, or agencies of the national government.
2.

Rules of Interpretation (Sec. 5, LGC)

Section 5. Rules of Interpretation. - In the interpretation of the provisions of this Code, the following
rules shall apply:
(a) Any provision on a power of a local government unit shall be liberally interpreted in its favor,
and in case of doubt, any question thereon shall be resolved in favor of devolution of powers and of
the lower local government unit. Any fair and reasonable doubt as to the existence of the power shall
be interpreted in favor of the local government unit concerned;
(b) In case of doubt, any tax ordinance or revenue measure shall be construed strictly against the
local government unit enacting it, and liberally in favor of the taxpayer. Any tax exemption,
incentive or relief granted by any local government unit pursuant to the provisions of this Code shall
be construed strictly against the person claiming it.
(c) The general welfare provisions in this Code shall be liberally interpreted to give more powers to
local government units in accelerating economic development and upgrading the quality of life for
the people in the community;
(d) Rights and obligations existing on the date of effectivity of this Code and arising out of contracts
or any other source of presentation involving a local government unit shall be governed by the

original terms and conditions of said contracts or the law in force at the time such rights were vested;
and
(e) In the resolution of controversies arising under this Code where no legal provision or
jurisprudence applies, resort may be had to the customs and traditions in the place where the
controversies take place.
3.

Declaration of Policy (Sec. 2, LGC)

Section 2. Declaration of Policy. (a) It is hereby declared the policy of the State that the territorial and political subdivisions of the
State shall enjoy genuine and meaningful local autonomy to enable them to attain their fullest
development as self-reliant communities and make them more effective partners in the attainment of
national goals. Toward this end, the State shall provide for a more responsive and accountable local
government structure instituted through a system of decentralization whereby local government units
shall be given more powers, authority, responsibilities, and resources. The process of
decentralization shall proceed from the national government to the local government units.
(b) It is also the policy of the State to ensure the accountability of local government units through the
institution of effective mechanisms of recall, initiative and referendum.

(c) It is likewise the policy of the State to require all national agencies and offices to conduct
periodic consultations with appropriate local government units, nongovernmental and people's
organizations, and other concerned sectors of the community before any project or program is
implemented in their respective jurisdictions.
Principle of Devolution (Sec. 17, [4] (e) and (i), LGC)
(e) National agencies or offices concerned shall devolve to local government units the responsibility for
the provision of basic services and facilities enumerated in this Section within six (6) months after the
effectivity of this Code.
As used in this Code, the term "devolution" refers to the act by which the national government confers
power and authority upon the various local government units to perform specific functions and
responsibilities.
(i) The devolution contemplated in this Code shall include the transfer to local government units of the
records, equipment, and other assets and personnel of national agencies and offices corresponding to the
devolved powers, functions, and responsibilities.
Case:
Pimentel, Jr. v. Executive Secretary Ochoa, et al., G.R. No. 195770, July 17, 2012
Local Autonomy and National Accountability
Cases:
Tan v. Perena, 452 SCRA 53(2005)
Batangas CATV, Inc. v. Court of Appeals, 439 SCRA 326 (2004)
Local Autonomy and Decision-Making
Cases:
Davao New Town Development Corp. v. Spouses Espino et. al., G.R. No. 174588, December 11, 2013
Province of Rizal v. Executive Secretary, 477 SCRA 436 (2005)
Section 7. Creation and Conversion. - As a general rule, the creation of a local government unit or its
conversion from one level to another level shall be based on verifiable indicators of viability and projected
capacity to provide services, to wit:
(a) Income. - It must be sufficient, based on acceptable standards, to provide for all essential government
facilities and services and special functions commensurate with the size of its population, as expected of
the local government unit concerned;
(b) Population. - It shall be determined as the total number of inhabitants within the territorial jurisdiction
of the local government unit concerned; and
(c) Land Area. - It must be contiguous, unless it comprises two or more islands or is separated by a local
government unit independent of the others; properly identified by metes and bounds with technical
descriptions; and sufficient to provide for such basic services and facilities to meet the requirements of its
populace.

Compliance with the foregoing indicators shall be attested to by the Department of Finance (DOF), the
National Statistics Office (NSO), and the Lands Management Bureau (LMB) of the Department of
Environment and Natural Resources (DENR).
Section 450. Requisites for Creation.
(a) A municipality or a cluster of barangays may be converted into a component city if it has an average
annual income, as certified by the Department of Finance, of at least Twenty million (P20,000,000.00) for
the last two (2) consecutive years based on 1991 constant prices, and if it has either of the following
requisites:
(i) a contiguous territory of at least one hundred (100) square kilometers, as certified by the Lands
Management Bureau; or
(ii) a population of not less than one hundred fifty thousand (150,000) inhabitants, as certified by the
National Statistics Office:
Provided, That, the creation thereof shall not reduce the land area, population, and income of the original
unit or units at the time of said creation to less than the minimum requirements prescribed herein.
(b) The territorial jurisdiction of a newly-created city shall be properly identified by metes and bounds.
The requirement on land area shall not apply where the city proposed to be created is composed of one (1)
or more islands. The territory need not be contiguous if it comprises two (2) or more islands.
(c) The average annual income shall include the income accruing to the general fund, exclusive of specific
funds, transfers, and non-recurring income.
Section 14. Beginning of Corporate Existence. - When a new local government unit is created, its
corporate existence shall commence upon the election and qualification of its chief executive and a
majority of the members of its sanggunian, unless some other time is fixed therefor by the law or
ordinance creating it.
ARTICLE X CONSTI
Section 1. The territorial and political subdivisions of the Republic of the Philippines are the provinces,
cities, municipalities, and barangays. There shall be autonomous regions in Muslim Mindanao and the
Cordilleras as hereinafter provided.
Section 4. The President of the Philippines shall exercise general supervision over local governments.
Provinces with respect to component cities and municipalities, and cities and municipalities with respect
to component barangays, shall ensure that the acts of their component units are within the scope of their
prescribed powers and functions.
Section 13. Local government units may group themselves, consolidate or coordinate their efforts,
services, and resources for purposes commonly beneficial to them in accordance with law.
Section 14. The President shall provide for regional development councils or other similar bodies
composed of local government officials, regional heads of departments and other government offices, and
representatives from non-governmental organizations within the regions for purposes of administrative
decentralization to strengthen the autonomy of the units therein and to accelerate the economic and social
growth and development of the units in the region.

LGC
Section 8. Division and Merger. - Division and merger of existing local government units shall comply
with the same requirements herein prescribed for their creation: Provided, however, That such division
shall not reduce the income, population, or land area of the local government unit or units concerned to
less than the minimum requirements prescribed in this Code: Provided, further, That the income
classification of the original local government unit or units shall not fall below its current classification
prior to such division.
The income classification of local government units shall be updated within six (6) months from the
effectivity of this Code to reflect the changes in their financial position resulting from the increased
revenues as provided herein.
Section 9. Abolition of Local Government Units. - A local government unit may be abolished when its
income, population, or land area has been irreversibly reduced to less than the minimum standards
prescribed for its creation under Book III of this Code, as certified by the national agencies mentioned in
Section 7 hereof to Congress or to the sangguniang concerned, as the case may be.
The law or ordinance abolishing a local government unit shall specify the province, city, municipality, or
barangay with which the local government unit sought to be abolished will be incorporated or merged.

Section 10. Plebiscite Requirement. - No creation, division, merger, abolition, or substantial alteration of
boundaries of local government units shall take effect unless approved by a majority of the votes cast in a
plebiscite called for the purpose in the political unit or units directly affected. Said plebiscite shall be
conducted by the Commission on Elections (COMELEC) within one hundred twenty (120) days from the
date of effectivity of the law or ordinance effecting such action, unless said law or ordinance fixes another
date.
Section 11. Selection and Transfer of Local Government Site, Offices and Facilities. (a) The law or ordinance creating or merging local government units shall specify the seat of government
from where governmental and corporate services shall be delivered. In selecting said site, factors relating
to geographical centrality, accessibility, availability of transportation and communication facilities,
drainage and sanitation, development and economic progress, and other relevant considerations shall be
taken into account.
(b) When conditions and developments in the local government unit concerned have significantly changed
subsequent to the establishment of the seat of government, its sanggunian may, after public hearing and by
a vote of two-thirds (2/3) of all its members, transfer the same to a site better suited to its needs. Provided,
however, That no such transfer shall be made outside the territorial boundaries of the local government
unit concerned.
The old site, together with the improvements thereon, may be disposed of by the sale or lease or converted
to such other use as the sangguniang concerned may deem beneficial to the local government unit
concerned and its inhabitants.
(c) Local government offices and facilities shall not be transferred, relocated, or converted to other uses
unless public hearings are first conducted for the purpose and the concurrence of the majority of all the
members of the sanggunian concerned is obtained.
Section 13. Naming of Local Government Units and Public Places, Streets and Structures. (a) The sangguniang panlalawigan may, in consultation with the Philippine Historical Commission (PHC),
change the name of the following within its territorial jurisdiction:
(1) Component cities and municipalities, upon the recommendation of the sanggunian concerned;
(2) Provincial roads, avenues, boulevards, thoroughfares, and bridges;
(3) Public vocational or technical schools and other post-secondary and tertiary schools;
(4) Provincial hospitals, health centers, and other health facilities; and
(5) Any other public place or building owned by the provincial government.
(b) The sanggunian of highly urbanized cities and of component cities whose charters prohibit their voters
from voting for provincial elective officials, hereinafter referred to in this Code as independent component
cities, may, in consultation with the Philippine Historical Commission, change the name of the following
within its territorial jurisdiction:
(1) City barangays, upon the recommendation of the sangguniang barangay concerned;
(2) City roads, avenues, boulevards, thoroughfares, and bridges;
(3) Public elementary, secondary and vocational or technical schools, community colleges and nonchartered colleges;
(4) City hospitals, health centers and other health facilities; and
(5) Any other public place or building owned by the city government.
(c) The sanggunians of component cities and municipalities may, in consultation with the Philippine
Historical Commission, change the name of the following within its territorial jurisdiction:
(1) City and municipal barangays, upon recommendation of the sangguniang barangay concerned;
(2) City, municipal and barangay roads, avenues, boulevards, thoroughfares, and bridges;
(3) City and municipal public elementary, secondary and vocational or technical schools, post- secondary
and other tertiary schools;
(4) City and municipal hospitals, health centers and other health facilities; and
(5) Any other public place or building owned by the municipal government.
(d) None of the foregoing local government units, institutions, places, or buildings shall be named after a
living person, nor may a change of name be made unless for a justifiable reason and, in any case, not
oftener than once every ten (10) years. The name of a local government unit or a public place, street or
structure with historical, cultural, or ethnic significance shall not be changed, unless by a unanimous vote
of the sanggunian concerned and in consultation with the PHC.
(e) A change of name of a public school shall be made only upon the recommendation of the local school
board concerned.

(f) A change of name of public hospitals, health centers, and other health facilities shall be made only
upon the recommendation of the local health board concerned.
(g) The change of name of any local government unit shall be effective only upon ratification in a
plebiscite conducted for the purpose in the political unit directly affected.
(h) In any change of name, the Office of the President, the representative of the legislative district
concerned, and the Bureau of Posts shall be notified.
Section 118. Jurisdictional Responsibility for Settlement of Boundary Dispute. - Boundary disputes
between and among local government units shall, as much as possible, be settled amicably. To this end:
(a) Boundary disputes involving two (2) or more barangays in the same city or municipality shall be
referred for settlement to the sangguniang panlungsod or sangguniang bayan concerned.
(b) Boundary disputes involving two (2) or more municipalities within the same province shall be referred
for settlement to the sangguniang panlalawigan concerned.
(c) Boundary disputes involving municipalities or component cities of different provinces shall be jointly
referred for settlement to the sanggunians of the province concerned.
(d) Boundary disputes involving a component city or municipality on the one hand and a highly urbanized
city on the other, or two (2) or more highly urbanized cities, shall be jointly referred for settlement to the
respective sanggunians of the parties.
(e) In the event the sanggunian fails to effect an amicable settlement within sixty (60) days from the date
the dispute was referred thereto, it shall issue a certification to that effect. Thereafter, the dispute shall be
formally tried by the sanggunian concerned which shall decide the issue within sixty (60) days from the
date of the certification referred to above.
RULE III
Settlement of Boundary Disputes
ARTICLE 15. Definition and Policy. There is a boundary dispute when a portion or the whole of the
territorial area of an LGU is claimed by two or more LGUs. Boundary disputes between or among LGUs
shall, as much as possible, be settled amicably.
ARTICLE 16. Jurisdictional Responsibility. Boundary disputes shall be referred for settlement to the
following:
(a) Sangguniang panlungsod or sangguniang bayan for disputes involving two (2) or more barangays in
the same city or municipality, as the case may be;
(b) Sangguniang panlalawigan, for those involving two (2) or more municipalities within the same
province;
(c) Jointly, to the sanggunians of provinces concerned, for those involving component cities or
municipalities of different provinces; or
(d) Jointly, to the respective sanggunians, for those involving a component city or municipality and a
highly-urbanized city; or two (2) or more highly-urbanized cities.
ARTICLE 17. Procedures for Settling Boundary Disputes. The following procedures shall govern the
settlement of boundary disputes:
(a) Filing of petition The sanggunian concerned may initiate action by filing a petition, in the form of a
resolution, with the sanggunian having jurisdiction over the dispute.
(b) Contents of petition The petition shall state the grounds, reasons or justifications therefore.
(c) Documents attached to petition The petition shall be accompanied by:
(1) Duly authenticated copy of the law or statute creating the LGU or any other document showing proof
of creation of the LGU;
(2) Provincial, city, municipal, or barangay map, as the case may be, duly certified by the LMB;

(3) Technical description of the boundaries of the LGUs concerned;

(4) Written certification of the provincial, city, or municipal assessor, as the case may be, as to territorial
jurisdiction over the disputed area according to records in custody;
(5) Written declarations or sworn statements of the people residing in the disputed area; and
(6) Such other documents or information as may be required by the sanggunian hearing the dispute.
(d) Answer of adverse party Upon receipt by the sanggunian concerned of the petition together with the
required documents, the LGU or LGUs complained against shall be furnished copies thereof and shall be
given fifteen (15) working days within which to file their answers.
(e) Hearing Within five (5) working days after receipt of the answer of the adverse party, the
sanggunian shall hear the case and allow the parties concerned to present their respective evidences.
(f) Joint hearing When two or more sanggunians jointly hear a case, they may sit en banc or designate
their respective representatives. Where representatives are designated, there shall be an equal number of
representatives from each sanggunian. They shall elect from among themselves a presiding officer and a
secretary. In case of disagreement, selection shall be by drawing lot.
(g) Failure to settle In the event the sanggunian fails to amicably settle the dispute within sixty (60)
days from the date such dispute was referred thereto, it shall issue a certification to that effect and copies
thereof shall be furnished the parties concerned.
(h) Decision Within sixty (60) days from the date the certification was issued, the dispute shall be
formally tried and decided by the sanggunian concerned. Copies of the decision shall, within fifteen (15)
days from the promulgation thereof, be furnished the parties concerned, DILG, local assessor,
COMELEC, NSO, and other NGAs concerned.
(i) Appeal Within the time and manner prescribed by the Rules of Court, any party may elevate the
decision of the sanggunian concerned to the proper Regional Trial Court having jurisdiction over the
dispute by filing therewith the appropriate pleading, stating among others, the nature of the dispute, the
decision of the sanggunian concerned and the reasons for appealing therefrom. The Regional Trial Court
shall decide the case within one (1) year from the filing thereof. Decisions on boundary disputes
promulgated jointly by two (2) or more sangguniang panlalawigans shall be heard by the Regional Trial
Court of the province which first took cognizance of the dispute.
ARTICLE 18. Maintenance of Status Quo. Pending final resolution of the dispute, the status of the
affected area prior to the dispute shall be maintained and continued for all purposes.
ARTICLE 19. Official Custodian. The DILG shall be the official custodian of copies of all documents
on boundary disputes of LGUs.
GENERAL POWERS AND ATTRIBUTES OF LOCAL GOVERNMENTS
Sources of Powers (Constitution, Charter, Local Government Code and other laws)
Note: Review the General Principles Governing the Powers of the State
Nature of Powers Exercised by Local Governments
1. Police Power
General Welfare Clause and limitations on the exercise thereof (See 16, LGC)
Section 16. General Welfare. - Every local government unit shall exercise the powers expressly granted,
those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient
and effective governance, and those which are essential to the promotion of the general welfare. Within
their respective territorial jurisdictions, local government units shall ensure and support, among other
things, the preservation and enrichment of culture, promote health and safety, enhance the right of the
people to a balanced ecology, encourage and support the development of appropriate and self-reliant
scientific and technological capabilities, improve public morals, enhance economic prosperity and social

justice, promote full employment among their residents, maintain peace and order, and preserve the
comfort and convenience of their inhabitants.
Cases:
Rimando v. Naguilan Emission Testing Center, Inc., et al., G.R. No. 198860, July 23, 2012
Social Justice Society v. Atienza, Jr. 517 SCRA 657 (2007) and 545 SCRA 92
(2008)
Lucena Grand Central Terminal, Inc. v. JAC, 452 SCRA 174 (2005)
City of Manila v. Laguio, Jr. 455 SCRA 308 (2005)
White Light Corp. v. City of Manila, 576 SCRA 416 (2009)
Albon v. Fernando, 494 SCRA 141 (2006)
Power to Open and Close Roads (Sec. 21, LGC, Art. 34-45, IRR) as part of police power
Section 21. Closure and Opening of Roads. (a) A local government unit may, pursuant to an ordinance, permanently or temporarily close or open any
local road, alley, park, or square falling within its jurisdiction: Provided, however, That in case of
permanent closure, such ordinance must be approved by at least two-thirds (2/3) of all the members of the
sanggunian, and when necessary, an adequate substitute for the public facility that is subject to closure is
provided.
(b) No such way or place or any part thereof shall be permanently closed without making provisions for
the maintenance of public safety therein. A property thus permanently withdrawn from public use may be
used or conveyed for any purpose for which other real property belonging to the local government unit
concerned may be lawfully used or conveyed: Provided, however, That no freedom park shall be closed
permanently without provision for its transfer or relocation to a new site.
(c) Any national or local road, alley, park, or square may be temporarily closed during an actual
emergency, or fiesta celebrations, public rallies, agricultural or industrial fairs, or an undertaking of public
works and highways, telecommunications, and waterworks projects, the duration of which shall be
specified by the local chief executive concerned in a written order: Provided, however, That no national or
local road, alley, park, or square shall be temporarily closed for athletic, cultural, or civic activities not
officially sponsored, recognized, or approved by the local government unit concerned.
(d) Any city, municipality, or barangay may, by a duly enacted ordinance, temporarily close and regulate
the use of any local street, road, thoroughfare, or any other public place where shopping malls, Sunday,
flea or night markets, or shopping areas may be established and where goods, merchandise, foodstuffs,
commodities, or articles of commerce may be sold and dispensed to the general public.
ARTICLE 34. Prerequisites. In acquiring private property for public use or purpose, LGU shall first
establish the suitability of the property to be acquired for the use intended, then proceed to obtain from the
proper authorities the necessary locational clearance and other requirements imposed under existing laws,
rules and regulations.
ARTICLE 35. Offer to Buy and Contract of Sale. (a) The offer to buy private property for public use or
purpose shall be in writing. It shall specify the property sought to be acquired, the reasons for its
acquisition, and the price offered.
(b) If the owner or owners accept the offer in its entirety, a contract of sale shall be executed and payment
forthwith made.
(c) If the owner or owners are willing to sell their property but at a price higher than that offered to them,
the local chief executive shall call them to a conference for the purpose of reaching an agreement on the
selling price. The chairman of the appropriation or finance committee of the sanggunian, or in his absence,
any member of the sanggunian duly chosen as its representative, shall participate in the conference. When
an agreement is reached by the parties, a contract of sale shall be drawn and executed.
(d) The contract of sale shall be supported by the following documents:
(1) Resolution of the sanggunian authorizing the local chief executive to enter into a contract of sale. The
resolution shall specify the terms and conditions to be embodied in the contract;
(2) Ordinance appropriating the amount specified in the contract; and
(3) Certification of the local treasurer as to availability of funds together with a statement that such fund
shall not be disbursed or spent for any purpose other than to pay for the purchase of the property involved.
ARTICLE 36. Expropriation Proceedings. (a) If the LGU fails to acquire a private property for public
use, purpose, or welfare through purchase, LGU may expropriate said property through a resolution of the
sanggunian authorizing its chief executive to initiate expropriation proceedings.

(b) The local chief executive shall cause the provincial, city, or municipal attorney concerned or, in his
absence, the provincial or city prosecutor, to file expropriation proceedings in the proper court in
accordance with the Rules of Court and other pertinent laws.
(c) The LGU may immediately take possession of the property upon the filing of expropriation
proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair
market value of the property based on the current tax declaration of the property to be expropriated.
ARTICLE 37. Payment. The amount to be paid for the expropriated property shall be determined by
the proper court, based on the fair market value at the time of the taking of the property.
RULE VII
Reclassification of Agricultural Lands
ARTICLE 38. Authority to Reclassify Agricultural Lands. (a) A city or municipality may reclassify
agricultural lands through an ordinance enacted by the sanggunian after conducting public hearings for the
purpose provided that there exists an approved zoning ordinance implementing its comprehensive land use
plan.
(b) Agricultural lands may be classified in the following cases:
(1) When land ceases to be economically feasible and sound for agricultural purposes as determined by
the Department of Agriculture; or
(2) Where the land shall have substantially greater economic value for residential, commercial, or
industrial purposes as determined by the sanggunian.
ARTICLE 39. Limitations. (a) Reclassification shall be limited to the following percentage of the total
agricultural land area at the time of the passage of the ordinance:
(1) For highly-urbanized and independent component cities, fifteen percent (15%);
(2) For component cities and first to third class municipalities, ten percent (10%); and
(3) For fourth to sixth class municipalities, five percent (5%).
(b) Agricultural lands distributed to agrarian reform beneficiaries pursuant to Republic Act No. 6657,
otherwise known as the Comprehensive Agrarian Reform Law, shall not be affected by the
reclassification. Conversion of such lands into other purposes shall be governed by Sec. 65 of said law.
(c) The city or municipality shall provide mechanisms for the preservation and protection of the tenurial
rights of agrarian reform beneficiaries as provided under RA 3844, otherwise known as Agricultural Land
Reform Code, as amended, and other applicable laws in the reclassification of agricultural lands not yet
distributed under RA 6657.
(d) Nothing in this Rule shall be construed as repealing, amending, or modifying in any manner the
provisions of RA 6657.
ARTICLE 40. Reclassification in Excess of Percentage Limitation. The President may, when public
interest so requires and upon recommendation of the National Economic and Development Authority
(NEDA), authorize a city or municipality to reclassify lands in excess of the percentage limitation set in
the immediately preceding article. Recommendation of NEDA shall be based on the requirements for food
production, human settlements, ecological considerations, and other relevant factors in the city or
municipality.
ARTICLE 41. Comprehensive Land Use Plans. (a) Subject to applicable laws, rules and regulations,
cities and municipalities shall continue to prepare their respective comprehensive land use plans enacted
through zoning ordinances. The requirements for food production, human settlements, ecological balance,
and industrial expansion shall be considered in the preparation of such plans.
(b) The comprehensive land use plan shall be the primary and dominant basis for future use of local
resources and for reclassification of agricultural lands.
(c) The sangguniang panlalawigan shall review the comprehensive land use plans and zoning ordinances
of component cities and municipalities and shall adopt comprehensive provincial land use plan, primarily
based on the revised plans.
ARTICLE 42. Approval of Reclassification. When approval of an NGA is required for reclassification,
such approval shall not be unreasonably withheld. Failure to act on a proper and complete application for
reclassification within three months from receipt of the same shall be deemed as approval thereof.
RULE VIII
Closure and Opening of Roads or Parks
ARTICLE 43. Authority to Close or Open. An LGU may, through an ordinance, permanently or
temporarily close or open any road, alley, park, or square within its jurisdiction.
ARTICLE 44. Permanent Closure. (a) No permanent closure of any local road, street, alley, park, or
square shall be affected unless there exists a compelling reason or sufficient justification therefore such as,

but not limited to, change in land use, establishment of infrastructure facilities, projects, or such other
justifiable reasons as public welfare may require.
(b) When necessary, an adequate substitute for the public facility that is subject to closure shall be
provided. No freedom park shall be closed permanently without provision for its transfer or relocation to a
new site.
(c) No such way or place or any part thereof shall be permanently closed without making provisions for
the maintenance of public safety therein.
(d) A property permanently withdrawn from public use may be used or conveyed for any purpose for
which other real property belonging to LGU may be lawfully used or conveyed.
(e) The ordinance authorizing permanent closure must be approved by at least two-thirds (2/3) of all
members of the sanggunian. Public hearings shall first be conducted before any ordinance authorizing
permanent closure of any local roads, alley, park, or square is enacted. Notices of such hearings and copies
of the proposed ordinance shall be posted for a minimum period of three (3) consecutive weeks in
conspicuous places in the provincial capitol, or in the city, municipal, or barangay hall of LGU and within
the vicinity of the street or park proposed to be closed.
ARTICLE 45. Temporary closure. (a) Any national or local road, alley, park, or square may be
temporarily closed during actual emergency or fiesta celebrations, public rallies, agricultural or industrial
fairs, or undertaking of public works and highways, telecommunications, and waterworks projects, the
duration of which shall be specified by the local chief executive concerned in a written order, as follows:
(1) During fiesta celebrations for a period not exceeding nine (9) days;
(2) During agricultural or industrial fairs or expositions for a period as may be determined to be
necessary and reasonable;
(3) When public works projects or activities are being undertaken for a period as may be determined
necessary for the safety, security, health, or welfare of the public or when such closure is necessary to
facilitate completion of the projects or activities.
(b) An LGU may temporarily close and regulate the use of any local street, road, thoroughfare, or public
place where shopping malls, Sunday markets, flea or night markets, or shopping areas may be established
and where goods, merchandise, foodstuff, commodities, or articles of commerce may be sold and
dispensed to the general public.
(c) No national or local road, alley, park, or square shall be temporarily closed for athletic, cultural, or
civic activities not officially sponsored, recognized, or approved by the LGU.
Factors to consider in vacating a street
Cases:
City of Manila v. Chinese Community, 40 Phil. 349 (1919)
Figuracion v. Libi, 539 SCRA 50 (2007)
2. Power of Eminent Domain
Requisites for the Exercise (Sec. 9, Art. III, 1987 Constitution; Sec. 19, LGC and
Art. 32 and 36, IRR; Rule 97, 1997 Rules of Civil Procedure; and DILG Opinion
No. 11-1996)
Section 9. Private property shall not be taken for public use without just compensation.
Section 19. Eminent Domain. - A local government unit may, through its chief executive and acting
pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or welfare for
the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of
the Constitution and pertinent laws: Provided, however, That the power of eminent domain may not be
exercised unless a valid and definite offer has been previously made to the owner, and such offer was not
accepted: Provided, further, That the local government unit may immediately take possession of the
property upon the filing of the expropriation proceedings and upon making a deposit with the proper court
of at least fifteen percent (15%) of the fair market value of the property based on the current tax
declaration of the property to be expropriated: Provided, finally, That, the amount to be paid for the
expropriated property shall be determined by the proper court, based on the fair market value at the time
of the taking of the property.
ARTICLE 32. When Exercised. (a) An LGU may, through its chief executive and acting pursuant to an
ordinance, exercise the power of eminent domain for public use, purpose, or welfare of the poor and the
landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent
laws.

(b) The power of eminent domain may not be exercised unless a valid and definite offer has been
previously made to the owner, and such offer was not accepted.
Cases:
Spouses Yusay v. C.A., City Mayor and City Council of Mandaluyong

CHAPTER III
Local Legislation
Section 48. Local Legislative Power. - Local legislative power shall be exercised by the sangguniang
panlalawigan for the province; the sangguniang panlungsod for the city; the sangguniang bayan for the
municipality; and the sangguniang barangay for the barangay.

City,
G.R. No. 156684, April 6, 2011
Province of Camarines Sur v. C. A., 222 SCRA 173
Henry L. Sy v. Q.C.., G.R. No. 202690, June 5, 2013
Ortega v. City of Cebu, 602 SCRA 601 (2009)
3. Powers of Taxation and Fiscal Administration
Principle: The revenue raised thru local taxation shall be for public purpose.
Local Taxation (Sections 5, 6 & 7, Art. X, 1987 Const., Sees. 128-196, LGC)
Section 5. Each local government unit shall have the power to create its own sources of revenues and to
levy taxes, fees and charges subject to such guidelines and limitations as the Congress may provide,
consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively
to the local governments.
Section 6. Local government units shall have a just share, as determined by law, in the national taxes
which shall be automatically released to them.
Section 7. Local governments shall be entitled to an equitable share in the proceeds of the utilization and
development of the national wealth within their respective areas, in the manner provided by law, including
sharing the same with the inhabitants by way of direct benefits.
Requisites for the exercise; publication requirements and public hearing
Cases:
Smart Communications. Inc. v. Municipality of Malvar, Batangas, G.R. No. 204429, February18, 2014
GSIS v. City Treasurer of Manila, 609 SCRA (2009)
MIAA v. C.A., 495 SCRA 591 (2006)
(b) Limitations on municipal taxing power
Cases:
Quezon City v. ABS-CBN, G.R. No. 166408, October 6, 2008
Yamane v. B.A. Lepanto Condominium Corporation, 427 SCRA 258 (2005)
(c) Real Property Taxation (Sections 232-283, LGC)
Read also Sections 516, 517, 518, 519 on Penal Provisions, LGC.
Assessment and Appraisal (Sec. 201-231, LGC)
Principle: Special Education Fund is the share segregated in the
proceeds
of real property taxes collected by the local government units.
Case:
Yujuico v. Atienza, , 472 SCRA 463
(d) Local governments share under NIRC
Internal Revenue Allocation (IRA) is the share of local government units in the proceeds under the NIRC.
(Sections 6 and 7, Art. X, Constitution, Sections 284-294, LGC)
(e) Fiscal Autonomy and Self-Reliance of Local Governments
Case:
Smart Communications, Inc. v. Davao City, 565 SCRA 237 (2008)
(f) Credit Financing (Sections 295-303, LGC; Read also Section 520, LGC on Prohibited Acts)
(g) Local Fiscal Administration (Sections 304-383, LGC)

4. Legislative Powers (Sections 48-59, LGC; Sec. 9, Art. X, 1987 Constitution)

Section 9. Legislative bodies of local governments shall have sectoral representation as may be prescribed
by law.

Section 49. Presiding Officer. (a) The vice-governor shall be the presiding officer of the sangguniang panlalawigan; the city vice-mayor,
of the sangguniang panlungsod; the municipal vice-mayor, of the sangguniang bayan; and the punong
barangay, of the sangguniang barangay. The presiding officer shall vote only to break a tie.
(b) In the event of the inability of the regular presiding officer to preside at a sanggunian session, the
members present and constituting a quorum shall elect from among themselves a temporary presiding
officer. He shall certify within ten (10) days from the passage of ordinances enacted and resolutions
adopted by the sanggunian in the session over which he temporarily presided.
Section 50. Internal Rules of Procedure. (a) On the first regular session following the election of its members and within ninety (90) days
thereafter, the sanggunian concerned shall adopt or update its existing rules of procedure.
(b) The rules of procedure shall provided for the following:
(1) The organization of the sanggunian and the election of its officers as well as the creation of standing
committees which shall include, but shall not be limited to, the committees on appropriations, women and
family, human rights, youth and sports development, environmental protection, and cooperatives; the
general jurisdiction of each committee; and the election of the chairman and members of each committee;
(2) The order and calendar of business for each session;
(3) The legislative process;
(4) The parliamentary procedures which include the conduct of members during sessions;
(5) The discipline of members for disorderly behavior and absences without justifiable cause for four (4)
consecutive sessions, for which they may be censured, reprimanded, or excluded from the session,
suspended for not more than sixty (60) days, or expelled: Provided, That the penalty of suspension or
expulsion shall require the concurrence of at least two-thirds (2/3) vote of all the sanggunian members:
Provided, further, That a member convicted by final judgment to imprisonment of at least one (1) year for
any crime involving moral turpitude shall be automatically expelled from the sanggunian; and
(6) Such other rules as the sanggunian may adopt.lawphil
Section 51. Full Disclosure of Financial and Business Interests of Sanggunian Members. (a) Every sanggunian member shall, upon assumption to office, make a full disclosure of his business and
financial interests, or professional relationship or any relation by affinity or consanguinity within the
fourth civil degree, which he may have with any person, firm, or entity affected by any ordinance or
resolution under consideration by the sanggunian of which he is a member, which relationship may result
in conflict of interest. Such relationship shall include:
(1) Ownership of stock or capital, or investment, in the entity or firm to which the ordinance or resolution
may apply; and
(2) Contracts or agreements with any person or entity which the ordinance or resolution under
consideration may affect.
In the absence of a specific constitutional or statutory provision applicable to this situation, "conflict of
interest" refers in general to one where it may be reasonably deduced that a member of a sanggunian may
not act in the public interest due to some private, pecuniary, or other personal considerations that may tend
to affect his judgment to the prejudice of the service or the public.
(b) The disclosure required under this Act shall be made in writing and submitted to the secretary of the
sanggunian or the secretary of the committee of which he is a member. The disclosure shall, in all cases,
form part of the record of the proceedings and shall be made in the following manner:
(1) Disclosure shall be made before the member participates in the deliberations on the ordinance or
resolution under consideration: Provided, That, if the member did not participate during the deliberations,
the disclosure shall be made before voting on the ordinance or resolution on second and third readings;
and
(2) Disclosure shall be made when a member takes a position or makes a privilege speech on a matter that
may affect the business interest, financial connection, or professional relationship described herein.
Section 52. Sessions. -

(a) On the first day of the session immediately following the election of its members, the sanggunian shall,
by resolution, fix the day, time, and place of its regular sessions. The minimum numbers of regular
sessions shall be once a week for the sangguniang panlalawigan, sangguniang panlungsod, and
sangguniang bayan, and twice a month for the sangguniang barangay.
(b) When public interest so demands, special sessions may be called by the local chief executive or by a
majority of the members of the sanggunian.
(c) All sanggunian sessions shall be open to the public unless a closed-door session is ordered by an
affirmative vote of a majority of the members present, there being a quorum, in the public interest or for
reasons of security, decency, or morality. No two (2) sessions, regular or special, may be held in a single
day.
(d) In the case of special sessions of the sanggunian, a written notice to the members shall be served
personally at the member's usual place of residence at least twenty-four (24) hours before the special
session is held.
Unless otherwise concurred in by two-thirds (2/3) vote of the sanggunian members present, there being a
quorum, no other matters may be considered at a special session except those stated in the notice.
(e) Each sanggunian shall keep a journal and record of its proceedings which may be published upon
resolution of the sanggunian concerned.
Section 53. Quorum. (a) A majority of all the members of the sanggunian who have been elected and qualified shall constitute a
quorum to transact official business. Should a question of quorum be raised during a session, the presiding
officer shall immediately proceed to call the roll of the members and thereafter announce the results.
(b) Where there is no quorum, the presiding officer may declare a recess until such time as a quorum is
constituted, or a majority of the members present may adjourn from day to day and may compel the
immediate attendance of any member absent without justifiable cause by designating a member of the
sanggunian to be assisted by a member or members of the police force assigned in the territorial
jurisdiction of the local government unit concerned, to arrest the absent member and present him at the
session.
(c) If there is still no quorum despite the enforcement of the immediately preceding subsection, no
business shall be transacted. The presiding officer, upon proper motion duly approved by the members
present, shall then declare the session adjourned for lack of quorum.
Section 54. Approval of Ordinances. (a) Every ordinance enacted by the sangguniang panlalawigan, sangguniang panlungsod, or sangguniang
bayan shall be presented to the provincial governor or city or municipal mayor, as the case may be. If the
local chief executive concerned approves the same, he shall affix his signature on each and every page
thereof; otherwise, he shall veto it and return the same with his objections to the sanggunian, which may
proceed to reconsider the same. The sanggunian concerned may override the veto of the local chief
executive by two-thirds (2/3) vote of all its members, thereby making the ordinance or resolution effective
for all legal intents and purposes.
(b) The veto shall be communicated by the local chief executive concerned to the sanggunian within
fifteen (15) days in the case of a province, and ten (10) days in the case of a city or a municipality;
otherwise, the ordinance shall be deemed approved as if he had signed it.
(c) Ordinances enacted by the sangguniang barangay shall, upon approval by the majority of all its
members, be signed by the punong barangay.
Section 55. Veto Power of the Local Chief Executive. (a) The local chief executive may veto any ordinance of the sanggunian panlalawigan, sangguniang
panlungsod, or sanggunian bayan on the ground that it is ultra vires or prejudicial to the public welfare,
stating his reasons therefor in writing.
(b) The local chief executive, except the punong barangay, shall have the power to veto any particular
item or items of an appropriations ordinance, an ordinance or resolution adopting a local development
plan and public investment program, or an ordinance directing the payment of money or creating liability.
In such a case, the veto shall not affect the item or items which are not objected to. The vetoed item or
items shall not take effect unless the sanggunian overrides the veto in the manner herein provided;
otherwise, the item or items in the appropriations ordinance of the previous year corresponding to those
vetoed, if any, shall be deemed reenacted.
(c) The local chief executive may veto an ordinance or resolution only once. The sanggunian may override
the veto of the local chief executive concerned by two-thirds (2/3) vote of all its members, thereby making
the ordinance effective even without the approval of the local chief executive concerned.

Section 56. Review of Component City and Municipal Ordinances or Resolutions by the Sangguniang
Panlalawigan.
(a) Within three (3) days after approval, the secretary to the sanggunian panlungsod or sangguniang bayan
shall forward to the sangguniang panlalawigan for review, copies of approved ordinances and the
resolutions approving the local development plans and public investment programs formulated by the
local development councils.
(b) Within thirty (30) days after the receipt of copies of such ordinances and resolutions, the sangguniang
panlalawigan shall examine the documents or transmit them to the provincial attorney, or if there be none,
to the provincial prosecutor for prompt examination. The provincial attorney or provincial prosecutor
shall, within a period of ten (10) days from receipt of the documents, inform the sangguniang
panlalawigan in writing of his comments or recommendations, which may be considered by the
sangguniang panlalawigan in making its decision.
(c) If the sangguniang panlalawigan finds that such an ordinance or resolution is beyond the power
conferred upon the sangguniang panlungsod or sangguniang bayan concerned, it shall declare such
ordinance or resolution invalid in whole or in part. The sangguniang panlalawigan shall enter its action in
the minutes and shall advise the corresponding city or municipal authorities of the action it has taken.
(d) If no action has been taken by the sangguniang panlalawigan within thirty (30) days after submission
of such an ordinance or resolution, the same shall be presumed consistent with law and therefore valid.
Section 57. Review of Barangay Ordinances by the Sangguniang Panlungsod or Sangguniang Bayan. (a) Within ten (10) days after its enactment, the sangguniang barangay shall furnish copies of all barangay
ordinances to the sangguniang panlungsod or sangguniang bayan concerned for review as to whether the
ordinance is consistent with law and city or municipal ordinances.
(b) If the sangguniang panlungsod or sangguniang bayan, as the case may be, fails to take action on
barangay ordinances within thirty (30) days from receipt thereof, the same shall be deemed approved.
(c) If the sangguniang panlungsod or sangguniang bayan, as the case may be, finds the barangay
ordinances inconsistent with law or city or municipal ordinances, the sanggunian concerned shall, within
thirty (30) days from receipt thereof, return the same with its comments and recommendations to the
sangguniang barangay concerned for adjustment, amendment, or modification; in which case, the
effectivity of the barangay ordinance is suspended until such time as the revision called for is effected.
Section 58. Enforcement of Disapproved Ordinances or Resolutions. - Any attempt to enforce any
ordinance or any resolution approving the local development plan and public investment program, after
the disapproval thereof, shall be sufficient ground for the suspension or dismissal of the official or
employee concerned.
Section 59. Effectivity of Ordinances or Resolutions. (a) Unless otherwise stated in the ordinance or the resolution approving the local development plan and
public investment program, the same shall take effect after ten (10) days from the date a copy thereof is
posted in a bulletin board at the entrance of the provincial capitol or city, municipal, or barangay hall, as
the case may be, and in at least two (2) other conspicuous places in the local government unit concerned.
(b) The secretary to the sanggunian concerned shall cause the posting of an ordinance or resolution in the
bulletin board at the entrance of the provincial capitol and the city, municipal, or barangay hall in at least
two (2) conspicuous places in the local government unit concerned not later than five (5) days after
approval thereof.
The text of the ordinance or resolution shall be disseminated and posted in Filipino or English and in the
language understood by the majority of the people in the local government unit concerned, and the
secretary to the sanggunian shall record such fact in a book kept for the purpose, stating the dates of
approval and posting.
(c) The gist of all ordinances with penal sanctions shall be published in a newspaper of general circulation
within the province where the local legislative body concerned belongs. In the absence of any newspaper
of general circulation within the province, posting of such ordinances shall be made in all municipalities
and cities of the province where the sanggunian of origin is situated.
(d) In the case of highly urbanized and independent component cities, the main features of the ordinance
or resolution duly enacted or adopted shall, in addition to being posted, be published once in a local
newspaper of general circulation within the city: Provided, That in the absence thereof the ordinance or
resolution shall be published in any newspaper of general circulation.
Note: Apply the concept of delegated authority because all local governments are under the executive
branch and not the legislative branch of government.

Rule on effectivity of ordinances: Unless otherwise stated in the ordinance, local ordinances shall take
effect after ten days (10) from posting. (Read Section 511 of LGC on Posting and Publication of
Ordinances with Penal Provisions.)
Law Making Capacity of LGUs: Quorum must exist to enact a law.
Requisites of a valid ordinance: Inclusion in Legislative Agenda,
Consideration, appropriate Legislative Council, Public Hearing where
necessary, and passage in three (3) readings, approval by Chief Local
Executive, Veto Power, Override Power,
Posting and Publication
Rules to be observed in VOTING:
Two-Thirds (2/3) Vote Required
Extending loans or entering into contracts;
Issuance of bonds or securities;
Authorizing the lease of public property;
Grant of franchises;
Creation of LGU liability or indebtedness
Over-ride the veto of the Mayor;
Grant of tax exemptions;
Levy of taxes;
Discipline / suspend a member of the sanggunian;
Opening or closing of roads;
Selection and transfer of government site or offices; and
Concurrence in the appointment of personnel
(DILG Opinion No. 107-2003, dated 15 August 2003)
To change the name of public structure will historical, cultural and ethnic significance, a UNANIMOUS
vote is required.
Section 511. Posting and Publication of Ordinances with Penal Sanctions.
(a) Ordinances with penal sanctions shall be posted at prominent places in the provincial capitol, city,
municipal or barangay hall, as the case may be, for a minimum period of three (3) consecutive weeks.
Such ordinances shall also be published in a newspaper of general circulation, where available, within the
territorial jurisdiction of the local government unit concerned, except in the case of barangay ordinances.
Unless otherwise provided therein, said ordinances shall take effect on the day following its publication,
or at the end of the period of posting, whichever occurs later.
(b) Any public officer or employee who violates an ordinance may be meted administrative disciplinary
action, without prejudice to the filing of the appropriate civil or criminal action.
(c) The secretary to the sanggunian concerned shall transmit official copies of such ordinances to the chief
executive officer of the Office Gazette within seven (7) days following the approval of the said ordinance
for publication purposes. The Official Gazette may publish ordinances with penal sanctions for archival
and reference purposes.
Distinction between an Ordinance and a Resolution
Rules governing the enactment of ordinances and resolutions (Art. 107,

(c) A resolution shall be enacted in the same manner prescribed for an ordinance, except that it need not
go through a third reading for its final consideration unless decided otherwise by a majority of all the
sanggunian members.
(d) No ordinance or resolution shall be considered on second reading in any regular meeting unless it has
been reported out by the proper committee to which it was referred or certified as urgent by the local chief
executive.
(e) Any legislative matter duly certified by the local chief executive as urgent, whether or not it is included
in the calendar of business, may be presented and considered by the body at the same meeting without
need of suspending the rules.
(f) The secretary to the sanggunian of the province, city or municipality shall prepare copies of the
proposed ordinance or resolution in the form it was passed on second reading, and shall distribute to each
sanggunian member a copy thereof, except that a measure certified by the local chief executive concerned
as urgent may be submitted for final voting immediately after debate or amendment during the second
reading.
(g) No ordinance or resolution passed by the sanggunian in a regular or special session duly called for the
purpose shall be valid unless approved by a majority of the members present, there being a quorum. Any
ordinance or resolution authorizing or directing the payment of money or creating liability, shall require
the affirmative vote of a majority of all the sanggunian members for its passage.
(h) Upon the passage of all ordinances and resolutions directing the payment of money or creating
liability, and at the request of any member, of any resolution or motion, the sanggunian shall record the
ayes and nays. Each approved ordinance or resolution shall be stamped with the seal of the sanggunian
and recorded in a book kept for the purpose.
ARTICLE 108. Approval of Ordinances. (a) Every ordinance enacted by the sanggunian shall be
present to the local chief executive. If the local chief executive concerned approves the same, he shall
affix his signature on each and every page thereof; otherwise, he shall veto it and return the same with his
objections to the sanggunian, which may proceed to reconsider the same. The sanggunian concerned may
override the veto of the local chief executive by two-thirds (2/3) vote of all its members thereby making
the ordinance or resolution effective for all legal intents and purposes.
(b) The veto shall be communicated by the local chief executive concerned to the sanggunian within
fifteen (15) days in the case of a province, and ten (10) days in the case of a city or a municipality;
otherwise, the ordinance shall be deemed approved as if he had signed it.
(c) Ordinances enacted by the sangguniang barangay shall, upon approval by a majority of all its
members, be signed by the punong barangay.

Arts. 108 to 114, IRR, LGC)

ARTICLE 107. Ordinances and Resolutions. The following rules shall govern the enactment of
ordinances and resolutions:
(a) Legislative actions of a general and permanent character shall be enacted in the form of ordinances,
while those which are of temporary character shall be passed in the form of resolutions. Matters relating to
proprietary functions and to private concerns shall also be acted upon by resolution.
(b) Proposed ordinances and resolutions shall be in writing and shall contain an assigned number, a title or
caption, an enacting or ordaining clause, and the date of its proposed effectivity. In addition, every
proposed ordinance shall be accompanied by a brief explanatory note containing the justification for its
approval. It shall be signed by the author or authors and submitted to the secretary to the sanggunian who
shall report the same to the sanggunian at its next meeting.

ARTICLE 109. Veto Power of the Local Chief Executive. (a) The local chief executive may veto any
ordinance of the sangguniang panlalawigan, sangguniang panlungsod, or sangguniang bayan on the
ground that it is ultra vires or prejudicial to the public welfare, stating his reasons therefore in writing.
(b) The local chief executive, except the punong barangay shall have the power to veto any particular item
or items of an appropriations ordinance, an ordinance or resolution adopting a local development plan and
public investment program or an ordinance directing the payment of money or creating liability. In such a
case, the veto shall not affect the item or items which are not objected to. The vetoed item or items shall
not take effect unless the sanggunian overrides the veto in the manner as provided in the immediately
preceding Article; otherwise, the item or items in the appropriations ordinance of the previous year
corresponding to those vetoed, if any, shall be deemed reenacted.
(c) The local chief executive may veto an ordinance or resolution only once. The sanggunian may override
the veto of the local chief executive concerned by two-thirds (2/3) vote of all its members, thereby making
the ordinance effective even without the approval of the local chief executive concerned.

ARTICLE 110. Review of Component City and Municipal Ordinances or Resolutions by the Sangguniang
Panlalawigan. (a) Within (3) days after approval, the secretary to the sangguniang panlungsod or
sangguniang bayan shall transmit to the sangguniang panlalawigan for review, copies of approved
ordinances and resolutions approving and adopting the local development plans and public investment
programs formulated by the local development councils.

(c) The secretary to the sanggunian concerned shall transmit official copies of such ordinances to the chief
executive officer of the Official Gazette within seven (7) days following the approval of said ordinance for
publication. The Official Gazette may publish ordinances with penal sanctions for archival and reference
purposes.
Local Initiative and Referendum (Sec. 120-127, Art. 133 to 153, IRR)

(b) Within thirty (30) days after receipt of copies of such ordinances and resolutions, the sangguniang
panlalawigan shall examine the documents or transmit them to the provincial attorney, or if there be none,
to the provincial prosecutor for prompt examination. The provincial attorney or provincial prosecutor
shall, within a period of ten (10) days from the receipt of the documents, inform the sangguniang
panlalawigan in writing of his comments or recommendations which may be considered by the
sangguniang panlalawigan in making its decision.
(c) If the sangguniang panlalawigan finds that such an ordinance or resolution is beyond the power
conferred upon the sangguniang panlungsod or sangguniang bayan concerned, it shall declare such
ordinance or resolution invalid in whole or in part. The sangguniang panlalawigan shall enter its action in
the minutes and shall advise the corresponding city or municipal authorities of the action it has taken.
(d) If no action has been taken by the sangguniang panlalawigan within thirty (30) days after submission
of such an ordinance or resolution, the same shall be presumed consistent with the law and, therefore,
valid.
ARTICLE 111. Review of Barangay Ordinances by the Sangguniang Panlungsod or Sangguniang Bayan.
(a) Within ten (10) days after its enactment, the sangguniang barangay shall furnish copies of all
barangay ordinances to the sangguniang panlungsod or sangguniang bayan concerned for review as to
whether the ordinance is consistent with law and city or municipal ordinances.
(b) If the sangguniang panlungsod or sangguniang bayan, as the case may be, fails to take action on
barangay ordinances within thirty (30) days from receipt thereof, the same shall be deemed approved.
(c) If the sangguniang panlungsod or sangguniang bayan, as the case may be, finds the barangay
ordinances inconsistent with law or city or municipal ordinances, the sanggunian concerned shall, within
thirty (30) days from receipt thereof, return the same with its comments and recommendations to the
sangguniang barangay concerned for adjustment, amendment or modification; in which case, the
effectivity of the barangay ordinance is suspended until such time as the revision called for is effected.
ARTICLE 112. Enforcement of Ordinances or Resolutions After Disapproval by Reviewing Authority.
Any attempt to enforce any disapproved ordinance or resolution adopting the local development plan and
public investment program. After disapproval by the local chief executive or by the reviewing authority
shall be sufficient ground for the suspension or dismissal of the official or employee concerned.
ARTICLE 113. Effectivity of Ordinances and Resolutions. Unless otherwise stated in the ordinance or
resolution approving the local development plan and public investment program, the same shall take effect
after ten (10) days from the date a copy thereof is posted in a bulletin board at the entrance of the
provincial capitol or city, municipal, or barangay hall, as the case may be, and in at least two (2) other
conspicuous places in the LGU concerned.
ARTICLE 114. Posting and Publication of Ordinance with Penal Sanctions. (a) Ordinances with penal
sanctions shall be posted at conspicuous places in the provincial capitol, or city, municipal or barangay
hall, as the case may be, for a minimum period of three (3) consecutive weeks. Such ordinances shall also
be published in a newspaper of general circulation, where available, within the territorial jurisdiction of
the LGU concerned, except in the case of barangay ordinances. Unless otherwise provided therein, said
ordinances shall take effect on the day following its publication, or at the end of the period of posting,
whichever occurs later.
(b) Any public officer or employee who violates an ordinance may be meted administrative disciplinary
action, without prejudice to the filing of the appropriate civil or criminal action.

5. Corporate Powers (Sec. 22, LGC, Art. 46, IRR, Sections 14/15, LGC)
Conditions under which a local executive may enter into a contract in behalf of his government unit
Cases:
Vergara v. Ombudsman, 580 SCRA 693 (2009)
City of Caloocan v. CA and, Gotesco, G.R. No. 14500, May 31, 2006
Authority to negotiate or secure grants and incurring indebtedness (Sec. 23, LGC)
Build-Operate-Transfer (Sec. 302, LGC)
Section 22. Corporate Powers. (a) Every local government unit, as a corporation, shall have the following powers:
(1) To have continuous succession in its corporate name;
(2) To sue and be sued;
(3) To have and use a corporate seal;
(4) To acquire and convey real or personal property;
(5) To enter into contracts; and
(6) To exercise such other powers as are granted to corporations, subject to the limitations provided in this
Code and other laws.
(b) Local government units may continue using, modify, or change their existing corporate seals:
Provided, That newly established local government units or those without corporate seals may create their
own corporate seals which shall be registered with the Department of the Interior and Local Government:
Provided, further, That any change of corporate seal shall also be registered as provided hereon.
(c) Unless otherwise provided in this Code, no contract may be entered into by the local chief executive in
behalf of the local government unit without prior authorization by the sanggunian concerned. A legible
copy of such contract shall be posted at a conspicuous place in the provincial capitol or the city, municipal
or barangay hall.
(d) Local government units shall enjoy full autonomy in the exercise of their proprietary functions and in
the limitations provided in this Code and other applicable laws,
Section 14. Beginning of Corporate Existence. - When a new local government unit is created, its
corporate existence shall commence upon the election and qualification of its chief executive and a
majority of the members of its sanggunian, unless some other time is fixed therefor by the law or
ordinance creating it.
Section 15. Political and Corporate Nature of Local Government Units. - Every local government unit
created or recognized under this Code is a body politic and corporate endowed with powers to be
exercised by it in conformity with law. As such, it shall exercise powers as a political subdivision of the
national government and as a corporate entity representing the inhabitants of its territory.
Section 23. Authority to Negotiate and Secure Grants. - Local chief executives may, upon authority of the
sanggunian, negotiate and secure financial grants or donations in kind, in support of the basic services or
facilities enumerated under Section 17 hereof, from local and foreign assistance agencies without
necessity of securing clearance or approval therefor from any department, agency, or office of the national
government of from any higher local government unit: Provided, That projects financed by such grants or
assistance with national security implications shall be approved by the national agency concerned:
Provided, further, That when such national agency fails to act on the request for approval within thirty
(30) days from receipt thereof, the same shall be deemed approved.
The local chief executive shall, within thirty (30) days upon signing of such grant agreement or deed of
donation, report the nature, amount, and terms of such assistance to both Houses of Congress and the
President.
Section 302. Financing, Construction, Maintenance, Operation, and Management of Infrastructure Projects
by the Private Sector. (a) Local government units may enter into contracts with any duly prequalified individual contractor, for
the financing, construction, operation, and maintenance of any financially viable infrastructure facilities,

under the build-operate-transfer agreement, subject to the applicable provisions of Republic Act
Numbered Sixty-nine hundred fifty-seven (R.A. No. 6957) authorizing the financing, construction,
operation and maintenance of infrastructure projects by the private sector and the rules and regulations
issued thereunder and such terms and conditions provided in this Section.
(b) Local government units shall include in their respective local development plans and public investment
programs priority projects that may be financed, constructed, operated and maintained by the private
sector under this Section. It shall be the duty of the local government unit concerned to disclose to the
public all projects eligible for financing under this Section, including official notification of duly
registered contractors and publications in newspapers of general or local circulation and in conspicuous
and accessible public places. Local projects under the build-operate-and-transfer agreement shall be
confirmed by the local development councils.
(c) Projects implemented under this Section shall be subject to the following terms and conditions:
(1) The provincial, city or municipal engineer, as the case may be, upon formal request in writing by the
local chief executive, shall prepare the plans and specifications for the proposed projects, which shall be
submitted to the sanggunian for approval.
(2) Upon approval by the sanggunian of the project plans and specifications, the provincial, city, or
municipal engineer shall, as the case may be, cause to be published once every week, for two (2)
consecutive weeks in at least one (1) local newspaper which is circulated in the region, province, city or
municipality in which the project is to be implemented, a notice inviting all duly qualified contractors to
participate in a public bidding for the projects so approved. The conduct of public bidding and award of
contracts for local government projects under this Section shall be in accordance with this Code and other
applicable laws, rules and regulations.
In the case of a build-operate-and-transfer agreement, the contract shall be awarded to the lowest
complying bidder whose offer is deemed most advantageous to the local government and based on the
present value of its proposed tolls, fees, rentals, and charges over a fixed term for the facility to be
constructed, operated, and maintained according to the prescribed minimum design and performance
standards, plans, and specifications. For this purpose, the winning contractor shall be automatically
granted by the local government unit concerned the franchise to operate and maintain the facility,
including the collection of tolls, fees, rentals, and charges in accordance with subsection (c-4) hereof.
In the case of a build-operate-and-transfer agreement, the contract shall be awarded to the lowest
complying bidder based on the present value of its proposed schedule of amortization payments for the
facility to be constructed according to the prescribed minimum design and performance standards, plans,
and specifications.
(3) Any contractor who shall undertake the prosecution of any project under this Section shall post the
required bonds to protect the interest of the province, city, or municipality, in such amounts as may be
fixed by the sanggunian concerned and the provincial, city or municipal engineer shall not, as the case
may be, allow any contractor to initiate the prosecution of projects under this Section unless such
contractor presents proof or evidence that he has posted the required bond.
(4) The contractor shall be entitled to a reasonable return of its investment in accordance with its bid
proposal as accepted by the local government unit concerned.
In the case of a build-operate-and-transfer agreement, the repayment shall be made by authorizing the
contractor to charge and collect reasonable tolls, fees, rentals, and charges for the use of the project
facility not exceeding those proposed in the bid and incorporated in the contract: Provided, That the local
government unit concerned shall, based on reasonableness and equity, approve the tolls, fees, rentals and
charges: Provided, further, That the imposition and collection of tolls, fees, rentals and charges shall be for
a fixed period as proposed in the bid and incorporated in the contract which shall in no case exceed fifty
(50) years: Provided, finally, That during the lifetime of the contract, the contractor shall undertake the
necessary maintenance and repair of the facility in accordance with standards prescribed in the bidding
documents and in the contract.
In the case of a build-operate-and-transfer agreement, the repayment shall be made through amortization
payments in accordance with the schedule proposed in the bid and incorporated in the contract.
In case of land reclamation or construction of industrial estates, the repayment plan may consist of the
grant of a portion or percentage of the reclaimed land or the industrial estate constructed.
(5) Every infrastructure project undertaken under this Section shall be constructed, operated, and
maintained by the contractor under the technical supervision of the local government unit and in
accordance with the plans, specifications, standards, and costs approved by it.
(d) The provincial, city, or municipal legal officer shall, as the case may be, review the contracts executed
pursuant to this Section to determine their legality, validity, enforceability and correctness of form.

C. Privileges
1. Immunity from suit
Case:
Yujuico v. Atienza, , 472 SCRA 463
2. Personality to Appeal
Case:
Municipal Board of Cebu City v. Court of Tax Appeals, 12 SCRA 645
Calleja v. Court of Appeals, 20 SCRA 895
3. Hiring of Private Lawyers
Cases:
Province of Cebu v. IAC, 147 SCRA 447
Municipality of Pililla, Rizal v. C.A., 233 SCRA 484

RULE 67
Expropriation
Section 1. The complaint. The right of eminent domain shall be exercised by the filing of a verified
complaint which shall state with certainty the right and purpose of expropriation, describe the real or
personal property sought to be expropriated, and join as defendants all persons owning or claiming to
own, or occupying, any part thereof or interest therein, showing, so far as practicable, the separate interest
of each defendant. If the title to any property sought to be expropriated appears to be in the Republic of
the Philippines, although occupied by private individuals, or if the title is otherwise obscure or doubtful so
that the plaintiff cannot with accuracy or certainty specify who are the real owners, averment to that effect
shall be made in the complaint. (1a)
Section 2. Entry of plaintiff upon depositing value with authorized government depositary. Upon the
filing of the complaint or at any time thereafter and after due notice to the defendant, the plaintiff shall
have the right to take or enter upon the possession of the real property involved if he deposits with the
authorized government depositary an amount equivalent to the assessed value of the property for purposes
of taxation to be held by such bank subject to the orders of the court. Such deposit shall be in money,
unless in lieu thereof the court authorizes the deposit of a certificate of deposit of a government bank of
the Republic of the Philippines payable on demand to the authorized government depositary.
If personal property is involved, its value shall be provisionally ascertained and the amount to be
deposited shall be promptly fixed by the court.
After such deposit is made the court shall order the sheriff or other proper officer to forthwith place the
plaintiff in possession of the property involved and promptly submit a report thereof to the court with
service of copies to the parties. (2a)
Section 3. Defenses and objections. If a defendant has no objection or defense to the action or the
taking of his property, he may file and serve a notice of appearance and a manifestation to that effect,
specifically designating or identifying the property in which he claims to be interested, within the time
stated in the summons. Thereafter, he shall be entitled to notice of all proceedings affecting the same.
If a defendant has any objection to the filing of or the allegations in the complaint, or any objection or
defense to the taking of his property, he shall serve his answer within the time stated in the summons. The
answer shall specifically designate or identify the property in which he claims to have an interest, state the
nature and extent of the interest claimed, and adduce all his objections and defenses to the taking of his
property. No counterclaim, cross-claim or third-party complaint shall be alleged or allowed in the answer
or any subsequent pleading.
A defendant waives all defenses and objections not so alleged but the court, in the interest of justice, may
permit amendments to the answer to be made not later than ten (10) days from the filing thereof. However,
at the trial of the issue of just compensation whether or not a defendant has previously appeared or
answered, he may present evidence as to the amount of the compensation to be paid for his property, and
he may share in the distribution of the award. (n)
Section 4. Order of expropriation. If the objections to and the defenses against the right of the plaintiff
to expropriate the property are overruled, or when no party appears to defend as required by this Rule, the
court may issue an order of expropriation declaring that the plaintiff has a lawful right to take the property
sought to be expropriated, for the public use or purpose described in the complaint, upon the payment of
just compensation to be determined as of the date of the taking of the property or the filing of the
complaint, whichever came first.

A final order sustaining the right to expropriate the property may be appealed by any party aggrieved
thereby. Such appeal, however, shall not prevent the court from determining the just compensation to be
paid.
After the rendition of such an order, the plaintiff shall not be permitted to dismiss or discontinue the
proceeding except on such terms as the court deems just and equitable. (4a)
Section 5. Ascertainment of compensation. Upon the rendition of the order of expropriation, the court
shall appoint not more than three (3) competent and disinterested persons as commissioners to ascertain
and report to the court the just compensation for the property sought to be taken. The order of appointment
shall designate the time and place of the first session of the hearing to be held by the commissioners and
specify the time within which their report shall be submitted to the court.
Copies of the order shall be served on the parties. Objections to the appointment of any of the
commissioners shall be filed with the court within ten (10) days from service, and shall be resolved within
thirty (30) days after all the commissioners shall have received copies of the objections. (5a)
Section 6. Proceedings by commissioners. Before entering upon the performance of their duties, the
commissioners shall take and subscribe an oath that they will faithfully perform their duties as
commissioners, which oath shall be filed in court with the other proceedings in the case. Evidence may be
introduced by either party before the commissioners who are authorized to administer oaths on hearings
before them, and the commissioners shall, unless the parties consent to the contrary, after due notice to the
parties, to attend, view and examine the property sought to be expropriated and its surroundings, and may
measure the same, after which either party may, by himself or counsel, argue the case. The commissioners
shall assess the consequential damages to the property not taken and deduct from such consequential
damages the consequential benefits to be derived by the owner from the public use or purpose of the
property taken, the operation of its franchise by the corporation or the carrying on of the business of the
corporation or person taking the property. But in no case shall the consequential benefits assessed exceed
the consequential damages assessed, or the owner be deprived of the actual value of his property so taken.
(6a)
Section 7. Report by commissioners and judgment thereupon. The court may order the commissioners
to report when any particular portion of the real estate shall have been passed upon by them, and may
render judgment upon such partial report, and direct the commissioners to proceed with their work as to
subsequent portions of the property sought to be expropriated, and may from time to time so deal with
such property. The commissioners shall make a full and accurate report to the court of all their
proceedings, and such proceedings shall not be effectual until the court shall have accepted their report
and rendered judgment in accordance with their recommendations. Except as otherwise expressly ordered
by the court, such report shall be filed within sixty (60) days from the date the commissioners were
notified of their appointment, which time may be extended in the discretion of the court. Upon the filing
of such report, the clerk of the court shall serve copies thereof on all interested parties, with notice that
they are allowed ten (10) days within which to file objections to the findings of the report, if they so
desire. (7a)
Section 8. Action upon commissioners' report. Upon the expiration of the period of ten (10) days
referred to in the preceding section, or even before the expiration of such period but after all the interested
parties have filed their objections to the report or their statement of agreement therewith, the court may,
after hearing, accept the report and render judgment in accordance therewith, or, for cause shown, it may
recommit the same to the commissioners for further report of facts, or it may set aside the report and
appoint new commissioners; or it may accept the report in part and reject it in part and it may make such
order or render such judgment as shall secure to the plaintiff the property essential to the exercise of his
right of expropriation, and to the defendant just compensation for the property so taken. (8a)
Section 9. Uncertain ownership; conflicting claims. If the ownership of the property taken is uncertain,
or there are conflicting claims to any part thereof, the court may order any sum or sums awarded as
compensation for the property to be paid to the court for the benefit of the person adjudged in the same
proceeding to be entitled thereto. But the judgment shall require the payment of the sum or sums awarded
to either the defendant or the court before the plaintiff can enter upon the property, or retain it for the
public use or purpose if entry has already been made. (9a)
Section 10. Rights of plaintiff after judgment and payment. Upon payment by the plaintiff to the
defendant of the compensation fixed by the judgment, with legal interest thereon from the taking of the
possession of the property, or after tender to him of the amount so fixed and payment of the costs, the
plaintiff shall have the right to enter upon the property expropriated and to appropriate it for the public use
or purpose defined in the judgment, or to retain it should he have taken immediate possession thereof
under the provisions of section 2 hereof. If the defendant and his counsel absent themselves from the

court, or decline to receive the amount tendered, the same shall be ordered to be deposited in court and
such deposit shall have the same effect as actual payment thereof to the defendant or the person ultimately
adjudged entitled thereto. (10a)
Section 11. Entry not delayed by appeal; effect of reversal. The right of the plaintiff to enter upon the
property of the defendant and appropriate the same for public use or purpose shall not be delayed by an
appeal from the judgment. But if the appellate court determines that plaintiff has no right of expropriation,
judgment shall be rendered ordering the Regional Trial Court to forthwith enforce the restoration to the
defendant of the possession of the property, and to determine the damages which the defendant sustained
and may recover by reason of the possession taken by the plaintiff. (11a)
Section 12. Costs, by whom paid. The fees of the commissioners shall be taxed as a part of the costs of
the proceedings. All costs, except those of rival claimants litigating their claims, shall be paid by the
plaintiff, unless an appeal is taken by the owner of the property and the judgment is affirmed, in which
event the costs of the appeal shall be paid by the owner. (12a)
Section 13. Recording judgment, and its effect. The judgment entered in expropriation proceedings
shall state definitely, by an adequate description, the particular property or interest therein expropriated,
and the nature of the public use or purpose for which it is expropriated. When real estate is expropriated, a
certified copy of such judgment shall be recorded in the registry of deeds of the place in which the
property is situated, and its effect shall be to vest in the plaintiff the title to the real estate so described for
such public use or purpose. (13a)
Section 14. Power of guardian in such proceedings. The guardian or guardian ad litem of a minor or of
a person judicially declared to be incompetent may, with the approval of the court first had, do and
perform on behalf of his ward any act, matter, or thing respecting the expropriation for public use or
purpose of property belonging to such minor or person judicially declared to be incompetent, which such
minor or person judicially declared to be incompetent could do in such proceedings if he were of age or
competent. (14a)