Police Power; General Welfare
Welfare Clause ISSUE with HOLDING
G.R. L-3087-88 -- Rimando v. Naguilian Emission Testing Center
Concepcion, J.
Naguilian Emissions was running a business on land owned by the government. It sought
to renew its business license in 2008. However, the mayor of Naguilian town refused to
issue the license without the execution of a contract of lease between the business and the
municipality. They could not agree on the terms hence a petition for mandamus was filed
against the mayor by the business. This was granted by the lower court, whose decision
was then overturned by the CA, which found that a tax declaration is not sufficient proof of
ownership of the property by the municipality.
DOCTRINE
 A mayor cannot be compelled by mandamus to issue a business permit since the exercise
of the same is a delegated police power, hence discretionary in nature.
FACTS
1. Naguilian Emission Testing Center, Inc. was operating
operating an emission testing center in
Naguilian, La Union (surprise!) on land owned by the government, but was
subsequently declared alienable and disposable by the DENR.
2. From 2005 to 2007, the business operated operated without any problem. In 2008, the
business applied for a renewal of its business license and paid the fees
therefor.
3. Abraham Rimando,
Rimando, mayor of Naguilian,
Naguilian, La Union, refused to issueissue the license
license
until the business executes a contract of lease with the Municipality of
Naguilian.
4. The business was amenable to this condition, subject to some proposed revisions.
(What these revisions were was not mentioned in the case.) However, these
revisions were not acceptable to the Mayor.
5. A petition for mandamus
mandamus was filed by the business business with the RTCRTC against the
Mayor.
6. The RTC denied the petition,
petition, based on the following findings:
a. That the Municipality of Naguilian was the declared owner of the subject
property as evidenced by the tax d eclaration over the property;
property;
b. Under Sec. 6A.01 of the Revenue Code, the municipality has the right to
require petitioner to sign a contract of lease; and
c.  A mayor’s duty to issue business
business permits is discretionary
discretionary in nature.
7. The Court of Appeals,
Appeals, while declaring the issue moot and aca demic since the period
for which the business permit was sought (year 2008) had already lapsed, and Mayor
ended. Nonetheless, it proceeded to rule on the merits
Rimando’s term had already ended.
and found that the issuance of a write of mandamus was justified. It reversed and
set aside the ruling of the RTC.
a. The CA held held that the tax declaration was insufficient basis to require
require
the execution of a contract of lease as a si ne qua non condition for the
issuance of a business permit.
b. Also, the resolution of the  S angg uniang Panlalawig
Panlalawig an (2007-81), upon
which the mayor anchored his imposition of rental fees, was void for
its failure to comply with the requirements of the Local Government
Code. (the case fails to mention which requirements)
c. The mayor, however,
however, may not be held liable for damages
damages as his refusal
was done in the performance of official duties.
1. W/N a writ of mandamus
mandamus to compel
compel Mayor Rimando to issue a business
business license
to Naguilian Emission Testing Center should have been issued by the court.
a. No.
No. A mayor cannot be compelled by mandamus to issue a business
permit since the exercise of the same is a delegated police power,
hence discretionary in nature.
i. This was the pronouncement of the Court in Roble Arrastre, Inc. v.
Hon. Villaflor, where a determination was made on the nature of
the power of a mayor to grant business permits under the Local
Government Code.
ii. The Court in that case held that suc h power to grant permits is a
manifestation of delegated police power. Necessarily, the exercise
thereof cannot be deemed ministerial.
iii. The proper remedy is a writ of certiorari, not mandamus.
iv. The grant of such power under the Local Government Code is
found in Sec. 444. Such section states that the municipal
mayor’s power to issue licen ses is pursuant to Sec. 16 of the
same law. Section 16 of the LGC is the general welfare clause ,
which encapsulates the delegated police power to local
governments. This is exercised through their respective legislative
bodies.
DISPOSITIVE PORTION
Wherefore, premises considered, the Decision of the Court of Appeals is hereby SET
 ASIDE. The Decision
Decision of the Regional Trial Court of Bauang, La Union
Union is REINSTATED.
REINSTATED.
DIGESTER: Horace
SEC. 444. The Chief Executive: Powers, Duties, Functions and Compensation.
(b) For efficient, effective and economical governance the purpose of which is the general
welfare of the municipality and its inhabitants pursuant to Section 16 of this Code,
Code , the
municipal mayor shall:
3) Initiate and maximize the generation of resources and revenues, and apply the same
to the implementation of development plans, program objectives and priorities as
provided for under Section 18 of this Code, particularly those resources and revenues
programmed for agro- industrial development and country-wide growth and progress,
and relative thereto, shall:
(iv) Issue licenses and permits and suspend or revoke the same for any violation of
the conditions upon which said licenses or permits had been issued, pursuant to law
or ordinance.
SEC. 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.