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Drugstores Association of the Philippines, Inc. v NCDA lawful subject and a lawful method.
G.R. No. 194561, Sept. 14, 2016, Third Division
The priority given to PWDs finds its basis in the Constitution (Sec. 6 Art XII
Drugstores Association of the Philippines, Inc. and Northern Luzon Drug and Sec. 11 Art XIII). Thus, the Declaration of Policy (Sec. 2) of RA 7277
Corporation, petitioners recognizes that disabled persons are part of the Philippine society, to
National Council on Disability Affairs; DOH; DOF; BIR; DILG; DSWD, whom the Senate shall give full support for the improvement of their total
respondents well-being and their integration into the mainstream of society. The State
shall adopt policies ensuring the rehabilitation, self-development and self-
Facts: reliance of disabled persons. Hence, the PWD mandatory discount on the
purchase of medicine is supported by a valid objective or purpose. As in
On March 24, 1992, Republic Act (R.A.) No. 7277, the "Magna Carta for the case of senior citizens, the discount privilege to which the PWDs are
Disabled Persons," was passed into law. The law defines "disabled entitled is actually a benefit enjoyed by the general public to which these
persons", "impairment" and "disability." On April 30, 2007, Republic Act citizens belong. The means employed in invoking the active participation
No. 94427 ("Magna Carta for Persons with Disability") was enacted of the private sector, in order to achieve the purpose or objective of the
amending RA 7277. Specifically, Sec. 32 of RA 9442 granted the PWDs a law, is reasonably and directly related. Also, the means employed to
20% discount on the purchase of medicine (upon submission as proof of provide a fair, just and quality health care to PWDs are reasonably related
his/her entitlement thereto: ID issued by mayor or brgy. captain, passport, to its accomplishment, and are not oppressive, considering that as a form
or transportation discount fare ID from the National Council for the of reimbursement, the discount extended to PWDs in the purchase of
Welfare of Disabled persons) and a tax deduction scheme was adopted medicine can be claimed by the establishments as allowable tax
wherein covered establishments may deduct the discount granted from deductions.
gross income based on the net cost of goods sold or services rendered.
The Implementing Rules and Regulations (IRR) of RA 9442 (Sec. 6 Rule IV The three documents (see above) mentioned in Sec. 32 of RA 7277 as
pertains to Other Privileges and Incentives, including the purchase of amended by RA 9442 to entitle one to the discount must be read with its
medicine) was jointly promulgated by several government agencies. IRR. NCDA A.O. No. 1 provides the reasonable guidelines in the issuance of
IDCs to PWDs as proof of their entitlement to the privileges and incentives
On April 23, 2008, the NCDA issued Administrative Order (A.O.) No. 1, and fills the details in the implementation of the law. Petitioners'
Series of 2008, prescribing guidelines which should serve as a mechanism insistence that Part IV (D) of said AO is void because it allows allegedly
for the issuance of a PWD Identification Card (IDC) which shall be the basis non-competent persons like teachers, heads of establishments and heads
for providing privileges and discounts to bonafide PWDs. On December 9, of NGOs to confirm the medical condition of the applicant is misplaced. It
2008, the DOF issued Revenue Regulations No. 1- 2009 prescribing rules must be stressed that only for apparent disabilities can the teacher (a
and regulations to implement R.A. 9442 relative to the tax privileges of “school assessment” for students) or head of a business establishment (a
PWDs and tax incentives for establishments granting the discount. On May “certificate of disability” for employees) validly issue the mentioned
20, 2009, the DOH issued A.O. No. 2009-0011 specifically stating that the required document because, obviously, the disability is easily seen or
grant of 20% discount shall be provided in the purchase of branded clearly visible. It is, therefore, not an unqualified grant of authority for the
medicines and unbranded generic medicines from all establishments said nonmedical persons as it is simply limited to apparent disabilities. On
dispensing medicines for the exclusive use of the PWDs. the other hand, nonapparent disabilities can only be validated by a
licensed private or government physician, and a medical certificate has to
On July 28, 2009, petitioners filed a Petition for Prohibition with be presented in the procurement of an IDC. Therefore, the provision
application for a TRO/WPI before the CA to annul and enjoin the complies with the standards of substantive due process.
implementation of the 5 laws abovementioned (in bold). On July 26, 2010,
the CA rendered a Decision upholding the constitutionality of RA 7277 as Aside from the definitions of a "person with disability" or "disabled
amended, as well as the assailed administrative issuances. persons" under RA 7277 as amended by RA 9442 and its IRR, NCDA A.O.
No. 1 specifies that IDs shall be issued to those with the following
Issues: conditions: psychosocial, chronic illness, learning, mental, visual,
WON the CA erred in ruling the PWD discount as a valid exercise of police orthopedic, speech and hearing conditions. This includes persons suffering
power instead of an invalid exercise of the power of eminent domain from disabling diseases resulting to the person's limitations to do day to
(because it fails to provide just compensation to petitioners) day activities as normally as possible such as but not limited to those
WON the assailed laws violate the due process clause undergoing dialysis, heart disorders, severe cancer cases and such other
WON the definition of “disabilities” under the assailed laws are vague, similar cases resulting to temporary or permanent disability. Similarly, DOH
ambiguous, and unconstitutional A.O. No. 2009-0011 defines the different categories of disability. In the
WON the PWD discount violates the equal protection clause instant case, We do not find the aforestated definition of terms as vague
and ambiguous. Settled is the rule that courts will not interfere in matters
Ratio: which are addressed to the sound discretion of the government agency
We deny the petition. entrusted with the regulation of activities coming under the special and
technical training and knowledge of such agency.
The CA is correct when it applied by analogy the case of Carlos Superdrug
Corporation et al. v. DSWD, et al. wherein We pronounced that Sec. 4 of With respect to RA 9442, its expressed public policy is the rehabilitation,
RA 9257 which grants 20% discount on the purchase of medicine of senior self-development and
citizens is a legitimate exercise of police power. Police power is the power self-reliance of PWDs. Persons with disability form a class separate and
of the state to promote public welfare by restraining and regulating the distinct from the other citizens of the country. Indubitably, such substantial
use of liberty and property. On the other hand, the power of eminent distinction is germane and intimately related to the purpose of the law.
domain is the inherent right of Thus, Congress may pass a law providing for a different treatment to
the state (and of those entities to which the power has been lawfully persons with disability apart from the other citizens of the country.
delegated) to condemn private property to public use upon payment of
just compensation. In the exercise of police power, property rights of Held:
private individuals are subjected to restraints and burdens in order to WHEREFORE, the petition is DENIED. The Decision of the Court of Appeals
secure the general comfort, health, and prosperity of the state. A dated July 26, 2010, and the Resolution dated November 19, 2010, in CA-
legislative act based on the police power requires the concurrence of a GR. SP No. 109903 are AFFIRMED. All concur.
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al. v. The Secretary of Finance, et al., prohibition was also recognized as a
SLDC v. DSWD proper remedy to prohibit or nullify acts of executive officials that amount
SOUTHERN LUZON DRUG CORPORATION, Petitioner, vs. THE DEPARTMENT to usurpation of legislative authority. And, in a number of jurisprudence,
OF SOCIAL WELFARE AND DEVELOPMENT, et al. Respondents prohibition was allowed as a proper action to assail the constitutionality of
G.R. No. 199669 a law or prohibit its implementation.
April 25, 2017
2. No. The Court agrees that the ruling in Carlos Superdrug does not
constitute stare decisis to the instant case, not because of the petitioner's
FACTS: submission of financial statements which were wanting in the first case,
but because it had the good sense of including questions that had not
The case at bar is a Petition for Review on Certiorari assailing the Decision been raised or deliberated in the former case of Carlos Superdrug, i.e.,
of the Court of Appeals which dismissed the petition for prohibition filed validity of the 20% discount granted to PWDs, the supposed vagueness of
by Southern Luzon Drug Corporation (petitioner) against the Department the provisions of R.A. No. 9442 and violation of the equal protection
of Social Welfare and Development , the National Council for the Welfare clause.
of Disabled Persons (now National Council on Disability Affairs or NCDA),
the Department of Finance and the Bureau of Internal Revenue 3. Yes. The subject laws do not violate the equal protection clause. The
(collectively, the respondents), which sought to prohibit the equal protection clause is not infringed by legislation which applies only to
implementation of Section 4(a) of Republic Act (R.A.) No. 9257, otherwise those persons falling within a specified class. If the groupings are
known as the "Expanded Senior Citizens Act of 2003" and Section 32 of characterized by substantial distinctions that make real differences, one
R.A. No. 9442, which amends the "Magna Carta for Disabled Persons," class may be treated and regulated differently from another." For a
particularly the granting of 20% discount on the purchase of medicines by classification to be valid, (1) it must be based upon substantial distinctions,
senior citizens and persons with disability (PWD), respectively, and treating (2) it must be germane to the purposes of the law, (3) it must not be
them as tax deduction. which dismissed the petition for prohibition filed limited to existing conditions only, and (4) it must apply equally to all
by Southern Luzon Drug Corporation (petitioner) against the Department members of the same class.
of Social Welfare and Development , the National Council for the Welfare 4. No. The definitions of "disabilities" and "PWDs" are clear and
of Disabled Persons (now National Council on Disability Affairs or NCDA), unequivocal. Section 4(a) of R.A. No. 7277, the precursor of R.A. No. 94421
the Department of Finance and the Bureau of: Internal Revenue defines "disabled persons" as follows:
(collectively, the respondents), which sought to prohibit the (a) Disabled persons are those suffering from restriction or different
implementation of Section 4(a) of Republic Act (R.A.) No. 9257, otherwise abilities, as a result of a mental, physical or sensory impairment, to
known as the "Expanded Senior Citizens Act of 2003" and Section 32 of perform an activity in the manner or within the range considered normal
R.A. No. 9442, which amends the "Magna Carta for Disabled Persons," for a human being[.]
particularly the granting of 20% discount on the purchase of medicines by
senior citizens and persons with disability (PWD),: respectively, and On the other hand, the term "PWDs" is defined in Section 5.1 of the IRR of
treating them as tax deduction due to the reason that claiming it affects R.A. No. 9442 as follows:
the profitability of their business.
The petitioner is a domestic corporation engaged in the business of 5.1. Persons with Disability are those individuals defined under Section 4 of
drugstore operation in the Philippines while the respondents are [R.A. No.] 7277 [or] An Act Providing for the Rehabilitation, Self-
government' agencies, office and bureau tasked to monitor compliance Development and Self-Reliance of Persons with Disability as amended and
with R.A. Nos. 9257 and 9442, promulgate implementing rules and their integration into the Mainstream of Society and for Other Purposes.
regulations for their effective implementation, as well as prosecute and This is defined as a person suffering from restriction or different abilities,
revoke licenses of erring establishments. as a result of a mental, physical or sensory impairment, to perform an
activity in a manner or within the range considered normal for human
being. Disability shall mean (1) a physical 1or mental impairment that
ISSUES: substantially limits one or more psychological, physiological or anatomical
1. Whether or not the Petition for Prohibition may be filed to question the function of an individual or activities of such individual; (2) a record of such
constitutionality of a law; an impairment; or (3) being regarded as having such an impairment.
2. Whether or not the case constitute stare decisis In view of the foregoing disquisition, Section 4(a) of Republic Act No. 9257
and Section 32 of Republic Act No. 9442 are hereby declared
3. Whether or not the 20% Sales Discount for Senior Citizens PWDs does CONSTITUTIONAL.
not violate the petitioner’s right to equal
protection of the law SPARK NOT FOUND
MMDA V. GARIN
4. Whether or not the definitions of Disabilities and PWDs are vague and
violates the petitioners right to due process of law Facts: The issue arose from an incident involving the respondent Dante O.
Garin, a lawyer, who was issued a traffic violation receipt (TVR) by MMDA
and his driver's license confiscated for parking illegally along Gandara
RULING: Street, Binondo, Manila, on August 1995.
1. Yes. Prohibition may be filed to question the constitutionality of a law. Shortly before the expiration of the TVR's validity, the respondent
Generally, the office of prohibition is to prevent the unlawful and addressed a letter to then MMDA Chairman Prospero Oreta requesting the
oppressive exercise of authority and is directed against proceedings that return of his driver's license, and expressing his preference for his case to
are done without or in excess of jurisdiction, or with grave abuse of be filed in court.
discretion, there being no appeal or other plain, speedy, and adequate
remedy in the ordinary course of law. It is the remedy to prevent inferior Receiving no immediate reply, Garin filed the original complaint with
courts, corporations, boards, or persons from usurping or exercising a application for preliminary injunction, contending that, in the absence of
jurisdiction or power with which they have not been vested by the law. any implementing rules and regulations, Sec. 5(f) of Rep. Act No. 7924
This is, however, not the lone office of an action for prohibition. In Diaz, et grants the MMDA unbridled discretion to deprive erring motorists of their
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licenses, pre-empting a judicial determination of the validity of the Chavez v. Romulo
deprivation, thereby violating the due process clause of the Constitution.
The respondent further contended that the provision violates the Facts:
constitutional prohibition against undue delegation of legislative authority,
allowing as it does the MMDA to fix and impose unspecified — and Petition for prohibition and injunction seeking to enjoin the
therefore unlimited — fines and other penalties on erring motorists. implementation of the “Guidelines in the Implementation of the Ban on
the Carrying of Firearms Outside of Residence” (Guidelines)issued by
The trial court rendered the assailed decision in favor of herein respondent Hermogenes E. Ebdane, Jr., Chief of the Philippine National
respondent. Police (PNP).Petitioner Francisco I. Chavez, a licensed gun owner to whom
a PTCFOR has been issued, requested the DILG to reconsider the
Issue: implementation of the assailed Guidelines. However, his request was
denied. Thus, he filed the present petition impleading public respondents
1. WON MMDA, through Sec. 5(f) of Rep. Act No. 7924 could validly Ebdane, as Chief of PNP; Alberto G. Romulo, as Executive Secretary; and
exercise police power. Gerry L. Barias, as Chief of the PNP-Firearms and Explosives Division.
The Court laid down the test to determine the validity of a police measure, The court also feels that the decree impairs the obligation of the contract
thus:(1) The interests of the public generally, as distinguished from those between Agrix and the private respondent without justification. While it is
of a particular class, require the exercise of the police power; and (2) The true that the police power is superior to the impairment clause, the
means employed are reasonably necessary for the accomplishment of the principle will apply only where the contract is so related to the public
purpose and not unduly oppressive upon individuals. welfare that it will be considered congenitally susceptible to change by the
legislature in the interest of greater number.
It is apparent from the assailed Guidelines that
Our finding in sum, is that PD 1717 is an invalid exercise of the police
the basis for its issuance was the need for peace and order in the society. power, not being in conformity with the traditional requirements of a
lawful subject and a lawful method. The extinction of the mortgage and
other liens and of the interest and other charges pertaining to the
Owing to the proliferation of crimes, particularly those committed by the legitimate creditors of Agrix constitutes taking without due process of law,
New People’s Army (NPA), which tends to disturb the peace of the and this is compounded by the reduction of the secured creditors to the
community, President Arroyo deemed it best to impose a nationwide gun category of unsecured creditors in violation of the equal protection clause.
ban. Undeniably, the motivating factor in the issuance of the assailed Moreover, the new corporation being neither owned nor controlled by the
Guidelines is the interest of the public in general. The only question that government, should have been created only by general and not special
can then arise is law. And in so far as the decree also interferes with purely private
agreements without any demonstrated connection with the public
interest, there is likewise an impairment of the obligation of the contract.
whether the means employed are appropriate and reasonably necessary
for the accomplishment of the purpose and are not unduly oppressive.
Eminent Domain
Association of Small Landowners v. Sec. of Agrarian Reform, 175 SCRA 343
In the instant case, the assailed Guidelines do not entirely prohibit (1989)
possession of firearms. What they proscribe is merely the carrying of These are four consolidated cases questioning the constitutionality of the
firearms outside of residence. However, those who wish to carry their Comprehensive Agrarian Reform Act (R.A. No. 6657 and related laws i.e.,
firearms outside of their residences may re-apply for a new PTCFOR. This is Agrarian Land Reform Code or R.A. No. 3844).
a reasonable regulation. If the carrying of firearms is regulated,
necessarily, crime incidents will be curtailed. Criminals carry their weapon Brief background: Article XIII of the Constitution on Social Justice and
to hunt for their victims; they do not wait in the comfort of their homes. Human Rights includes a call for the adoption by the State of an agrarian
With the revocation of all PTCFOR, it would be difficult for criminals to reform program. The State shall, by law, undertake an agrarian reform
roam around with their guns. On the other hand, it would be easier for the program founded on the right of farmers and regular farmworkers, who
PNP to apprehend them. The petition is hereby DISMISSED. are landless, to own directly or collectively the lands they till or, in the case
of other farmworkers, to receive a just share of the fruits thereof. RA 3844
was enacted in 1963. P.D. No. 27 was promulgated in 1972 to provide for
National Development Corporation vs Philippine Veterans Bank the compulsory acquisition of private lands for distribution among tenant-
farmers and to specify maximum retention limits for landowners. In 1987,
Facts: The particular enactment in question is Presidential Decree No. President Corazon Aquino issued E.O. No. 228, declaring full land
1717, which ordered the rehabilitation of the Agrix Group of Companies to ownership in favor of the beneficiaries of PD 27 and providing for the
be administered mainly by the National Development Company. The law valuation of still unvalued lands covered by the decree as well as the
outlined the procedure for filling claims against the Agrix Companies and manner of their payment. In 1987, P.P. No. 131, instituting a
created a claims committee to process these claims. Especially relevant to comprehensive agrarian reform program (CARP) was enacted; later, E.O.
this case, and noted at the outset, is section 4(1) thereof providing that No. 229, providing the mechanics for its (PP131’s) implementation, was
“all mortgages and other liens presently attaching to any of the assets of also enacted. Afterwhich is the enactment of R.A. No. 6657,
the dissolved corporations are hereby extinguished.” Earlier, the Agrix Comprehensive Agrarian Reform Law in 1988. This law, while considerably
Marketing Inc. had executed in favor of private respondent Philippine changing the earlier mentioned enactments, nevertheless gives them
Veterans Bank a real estate mortgage dated July 7, 1978 over three parcels suppletory effect insofar as they are not inconsistent with its provisions.
of land situated in Los Baños, Laguna. During the existence of the [Two of the consolidated cases are discussed below]
mortgage, Agrix went bankrupt. It was the expressed purpose of salvaging
this and the other Agrix companies that the aforementioned decree was G.R. No. 78742: (Association of Small Landowners vs Secretary)
issued by President Marcos. A claim for the payment of its loan credit was The Association of Small Landowners in the Philippines, Inc. sought
filed by PNB against herein petitioner, however the latter alleged and exception from the land distribution scheme provided for in R.A. 6657. The
invoked that the same was extinguished by PD 1717. Association is comprised of landowners of ricelands and cornlands whose
landholdings do not exceed 7 hectares. They invoke that since their
landholdings are less than 7 hectares, they should not be forced to
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distribute their land to their tenants under R.A. 6657 for they themselves compensation determined by an administrative body is merely
have shown willingness to till their own land. In short, they want to be preliminary. If the landowner does not agree with the finding of just
exempted from agrarian reform program because they claim to belong to a compensation by an administrative body, then it can go to court and the
different class. determination of the latter shall be the final determination. This is even so
provided by RA 6657:
G.R. No. 79777: (Manaay vs Juico)
Section 16 (f): Any party who disagrees with the
Nicolas Manaay questioned the validity of the agrarian reform laws (PD 27,
decision may bring the matter to the court of proper
EO 228, and 229) on the ground that these laws already valuated their
jurisdiction for final determination of just
lands for the agrarian reform program and that the specific amount must
compensation.
be determined by the Department of Agrarian Reform (DAR). Manaay
averred that this violated the principle in eminent domain which provides 3. No. Money as [sole] payment for just compensation is merely a concept
that only courts can determine just compensation. This, for Manaay, also in traditional exercise of eminent domain. The agrarian reform program is
violated due process for under the constitution, no property shall be taken a revolutionary exercise of eminent domain. The program will require
for public use without just compensation. billions of pesos in funds if all compensation have to be made in cash – if
everything is in cash, then the government will not have sufficient money
Manaay also questioned the provision which states that landowners may
hence, bonds, and other securities, i.e., shares of stocks, may be used for
be paid for their land in bonds and not necessarily in cash. Manaay
just compensation.
averred that just compensation has always been in the form of money and
not in bonds.
ISSUE: 4. Police Power through the Power of Eminent Domain, though there
are traditional distinction between the police power and the power of
1. Whether or not there was a violation of the equal protection clause.
eminent domain, property condemned under police power is noxious or
2. Whether or not there is a violation of due process. intended for noxious purpose, the compensation for the taking of such
property is not subject to compensation, unlike the taking of the property
3. Whether or not just compensation, under the agrarian reform program, in Eminent Domain or the power of expropriation which requires the
must be in terms of cash. payment of just compensation to the owner of the property expropriated.
4. Whether or not the laws being challenged is a valid exercise of Police
power or Power of Eminent Domain.
Reyes v. NHA, 395 SCRA 494 (2003)
Facts: Respondent National Housing Authority (NHA) filed complaints for
HELD: the expropriation of sugarcane lands belonging to the petitioners. The
stated public purpose of the expropriation was the expansion of the
1. No. The Association had not shown any proof that they belong to a Dasmariñas Resettlement Project to accommodate the squatters who
different class exempt from the agrarian reform program. Under the were relocated from the Metropolitan Manila area. The trial court
law, classification has been defined as the grouping of persons or things rendered judgment ordering the expropriation of these lots and the
similar to each other in certain particulars and different from each other in payment of just compensation. The Supreme Court affirmed the judgment
these same particulars. To be valid, it must conform to the following of the lower court.
requirements:
A few years later, petitioners contended that respondent NHA violated the
(1) it must be based on substantial distinctions;
stated public purpose for the expansion of the
(2) it must be germane to the purposes of the law; Dasmariñas ResettlementProject when it failed to relocate the squatters
from the Metro Manila area, as borne out by the ocular inspection
(3) it must not be limited to existing conditions only; and conducted by the trial court which showed that most of the expropriated
(4) it must apply equally to all the members of the class. properties remain unoccupied. Petitioners likewise question the public
nature of the use by respondent NHA when it entered into a contract for
Equal protection simply means that all persons or things similarly situated the construction of low cost housing units, which is allegedly different
must be treated alike both as to the rights conferred and the liabilities from the stated public purpose in the expropriation proceedings. Hence, it
imposed. The Association have not shown that they belong to a different is claimed that respondent NHA has forfeited its rights and interests by
class and entitled to a different treatment. The argument that not only virtue of the expropriation judgment and the expropriated properties
landowners but also owners of other properties must be made to share should now be returned to herein petitioners.
the burden of implementing land reform must be rejected. There is a
substantial distinction between these two classes of owners that is clearly
visible except to those who will not see. There is no need to elaborate on Issue: Whether or not the judgment of expropriation was forfeited in the
this matter. In any event, the Congress is allowed a wide leeway in light of the failure of respondent NHA to use the expropriated property for
providing for a valid classification. Its decision is accorded recognition and the intended purpose but for a totally different purpose.
respect by the courts of justice except only where its discretion is abused
to the detriment of the Bill of Rights. In the contrary, it appears that
Congress is right in classifying small landowners as part of the agrarian Held: The Supreme Court held in favor of the respondent NHA.
reform program. Accordingly, petitioners cannot insist on a restrictive view of
2. No. It is true that the determination of just compensation is a power the eminentdomain provision of the Constitution by contending that the
lodged in the courts. However, there is no law which prohibits contract for low cost housing is a deviation from the stated public use. It is
administrative bodies like the DAR from determining just compensation. In now settleddoctrine that the concept of public use is no longer limited to
fact, just compensation can be that amount agreed upon by the traditional purposes. The term "public use" has now been held to be
landowner and the government – even without judicial intervention so synonymous with "public interest," "public benefit," "public welfare," and
long as both parties agree. The DAR can determine just compensation "public convenience." Thus, whatever may be beneficially employed for
through appraisers and if the landowner agrees, then judicial intervention the general welfare satisfies the requirement of public use."
is not needed. What is contemplated by law however is that, the just
6
In addition, the expropriation of private land for slum clearance and urban
development is for a public purpose even if the developed area is later
sold to private homeowners, commercials firms, entertainment and
service companies, and other private concerns. Moreover, the Constitution
itself allows the State to undertake, for the common good and
incooperation with the private sector, a continuing program of urban land
reform and housing which will make at affordable cost decent housing
andbasic services to underprivileged and homeless citizens in urban
centers and resettlement areas. The expropriation of private property for
the purpose of socialized housing for the marginalized sector is in
furtherance of social justice.
City of Mandaluyong v. Aguilar, 350 SCRA 487 (2001) NOT FOUND
LAGCAO V. LABRA
October 13, 2004 | Corona, J.
FACTS: The case is about the validity of Ordinance No. 1843 authorizing
the mayor of Cebu City to initiate expropriation proceedings for the
acquisition of lot (1029) of petitioners Diosdado, Doroteo and Ursula
Lagcao.
In 1964, Province of Cebu donated 210 lots to the City of Cebu, one of
which is the lot 1029. 1965, petitioners purchased said lot on installment
but in late 1925, these 210 lots reverted to the Province of Cebu. The latter
tried to annul sale which resulted to the filing of the case of the
petitioners. RTC and CA ruled in their favor and as such a deed of sale was
executed and a TCT was issued in their favor. When they tried to take
possession of the land, they found out that it was occupied by squatters.
Thus, they instituted ejectment proceedings which was later on granted by
the MTCC and affirmed by RTC. However, Mayor Garcia wrote letters
requesting the deferment of the demolition since the city was still looking
for a relocation site for the squatters; this was granted. During the
suspension the Sang. Panlungsod of Cebu passed a resolution and 2
ordinances (all about the lot 1029). Ord. No. 1843 likewise appropriated
the amount of 6, 881, 600 for the payment of subject land; this was
approved by the Mayor.
ISSUE: Whether or not the exercise of eminent domain is valid in the case
at bar.
HELD: NO, it is NOT VALID. The foundation of the right to exercise eminent
domain is genuine necessity and that necessity must be of public
character. Govt. may not capriciously or arbitrarily choose which private
property should be expropriated. In this case, there was no showing at all
why petitioners’ property was singled out for expropriation by the city
ordinance or what necessity impelled the particular choice or selection.
Ordinance no. 1843 stated no reason for the choice of petitioners’
property as the site of a socialized housing project. Moreover, under RA
7279, private lands rank last in the order of priority for purposes of
socialized housing. In the same vein, expropriation proceedings may be
resorted to only after the other modes of acquisition are exhausted. Thus,
the ordinance in question is likewise null because: (1) it is repugnant to
the pertinent provisions of RA 7279 and 7160 (LGC); (2) the precipitate
manner in which it was enacted was plain oppression masquerading as
pro-poor ordinance; (3) the fact that the land was singled out manifests
partiality against petitioners; (4) it failed to show that there was
reasonable relation bet. the end sought and the means adopted.