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HELD:
o The pivotal issue of this case is whether or not the DRILON V LIM
operations and functions of a public cemetery are a
governmental, or a corporate or proprietary function PETITIONERS: Hon. Franklin M. Drilon
of the City of Manila. The resolution of this issue is RESPONDENTS: Mayor Alfredo S. Lim
essential to the determination of the liability for VM Jose L. Atienza
damages of the petitioner city. Anthony Avecedo
o Private respondents maintain that the City of Manila DOCKET NO.: GR No. 112497
entered into a contract of lease which involve the DATE: August 4, 1994
exercise of proprietary functions with private PONENTE: Cruz, J.
respondent Irene Sto. Domingo. The city and its
officers therefore can be sued for any-violation of TOPIC: LGU vis-à-vis NATIONAL GOVERNMENT: Power of
the contract of lease. Private respondents’ General Supervision (as stated in the syllabus, but the case
contention is well-taken. says that the principal issue is the constitutionality of
o Under Philippine laws, the City of Manila is a Section 187 of the Local Government Code).
political body corporate and as such endowed with
the faculties of municipal corporations to be FACTS:
exercised by and through its city government in The principal issue in this case is the constitutionality of
conformity with law, and in its proper corporate Section 187 of the Local Government Code readings as
name. It may sue and be sued, and contract and be follows:
contracted with. Its powers are twofold in character- o Procedure For Approval And Effectivity Of Tax
public, governmental or political on the one hand, Ordinances And Revenue Measures; Mandatory
and corporate, private and proprietary on the other. Public Hearings. — The procedure for approval of
o Governmental powers are those exercised in local tax ordinances and revenue measures shall
administering the powers of the state and be in accordance with the provisions of this Code:
promoting the public welfare and they include the Provided, That public hearings shall be conducted
legislative, judicial, public and political. Municipal for the purpose prior to the enactment thereof;
powers on the one hand are exercised for the Provided, further, That any question on the
special benefit and advantage of the community constitutionality or legality of tax ordinances or
and include those which are ministerial, private and revenue measures may be raised on appeal within
corporate. thirty (30) days from the effectivity thereof to the
o In the absence of a special law, the North Cemetery Secretary of Justice who shall render a decision
is a patrimonial property of the City of Manila which within sixty (60) days from the date of receipt of the
was created by resolution of the Municipal Board of appeal: Provided, however, That such appeal shall
August 27, 1903 and January 7, 1904. The not have the effect of suspending the effectivity of
administration and government of the cemetery are the ordinance and the accrual and payment of the
under the City Health Officer, the order and police tax, fee, or charge levied therein: Provided, finally,
of the cemetery, the opening of graves, niches, or That within thirty (30) days after receipt of the
tombs, the exhuming of remains, and the decision or the lapse of the sixty-day period without
purification of the same are under the charge and the Secretary of Justice acting upon the appeal, the
responsibility of the superintendent of the cemetery. aggrieved party may file appropriate proceedings
The City of Manila furthermore prescribes the with a court of competent jurisdiction.
procedure and guidelines for the use and
dispositions of burial lots and plots within the North Pursuant thereto, the Sec of Justice (Drilon) had, on appeal
Cemetery through Administrative Order No. 5, s. to him of four oil companies and a taxpayer, declared
1975. With the acts of dominion, there is, Ordinance No. 7794, otherwise known as the Manila
therefore no doubt that the North Cemetery is Revenue Code, null and void for non-compliance with the
within the class of property which the City of prescribed procedure in the enactment of tax ordinances and
Manila owns in its proprietary or private for containing certain provisions contrary to law and public
character. Furthermore, there is no dispute that the policy.
burial lot was leased in favor of the private In a petition for certiorari filed by the City of Manila, the
respondents. Hence, obligations arising from Regional Trial Court of Manila revoked the Secretary's
contracts have the force of law between the resolution and sustained the ordinance, holding inter alia that
contracting parties. Thus a lease contract executed the procedural requirements had been observed. More
by the lessor and lessee remains as the law importantly, it declared Section 187 of the Local
between them. Therefore, a breach of Government Code as unconstitutional because of its
contractual provision entitles the other party to vesture in the Secretary of Justice of the power of
damages even if no penalty for such breach is control over local governments in violation of the policy
prescribed in the contract. of local autonomy mandated in the Constitution and of
o As regards the issue of the validity of the contract the specific provision therein conferring on the
of lease of grave lot No. 159, Block No. 195 of the
President of the Philippines only the power of see to it that the rules are followed. In the opinion
supervision over local governments. of the Court, Secretary Drilon did precisely this, and
no more nor less than this, and so performed an act
ISSUE: WON Section 187 of the LGC is constitutional not of control but of mere supervision.
HELD: YES.
o We reverse the Appellate Court and reinstate the
ruling of the lower court that petitioner did not
violate Section 8 of Davao City Ordinance No. 363.
It must be emphasized that the question of whether
Mr. Tepoot's building is residential or not is a factual
determination which we should not disturb. As we
have repeatedly enunciated, the resolution of
factual issues is the function of the lower courts
where findings on these matters are received with