Municipal Corporations defined 3.

City of Manila’s power to issue license

fees for gambling has been revoked and has
G.R. No. 91649 May 14, 1991 been expressly vested exclusively to
National Government
ATTORNEYS HUMBERTO BASCO, EDILBERTO BALCE, SOCRATES - P.D. No. 771
MARANAN AND LORENZO SANCHEZ, petitioners, 4. Local governments have no power to tax
vs. National Government
PHILIPPINE AMUSEMENTS AND GAMING CORPORATION - Supremacy of the National Government
(PAGCOR), respondent. over local government
- PAGCOR is a GOCC thus, is a
PARAS, J.: National Government instrumentality
o Intrusion on the Article X of the 1987 Constitution that power to
 Petitioner Basco; Chairman of Committee of Laws of Council of local create sources of revenue is subject to the
Manila government’s right guidelines and limitations that Congress may
 Assailing the PAGCOR Charter: to impose local provide
taxes violating
o Contrary to Morals Gambling in all its forms, unless allowed by local autonomy Principle of local autonomy is
and Public Policy law, is generally prohibited (THOSE decentralization. It does not mean that the
ALLOWED BY LAW CAN BE REGULATED local government is sovereign or “imperium
IN THE EXERCISE OF POLICE POWER). in imperio”

PAGCOR’s Policy is to establish a centralized Gambling is a state offense so it is prerogative

authority for the regulation of games of chance of National government to retain it or to
- Revenue source for the government delegate its regulatory power over it.
- Funds social impact projects for society o Equal protection o Fact that other games of chance are allowed
o Waiver of Section 13 par. (2) of Charter exempts clause is not reason to invalidate
Manila’s right to PAGCOR from tax and other fees o As long as premised on substantial
impose licenses classifications or distinctions.
and tax fees 1. As a municipal corporation, no inherent o Against Aquino o Not a ground for invalidating a law
right to impose taxes. Administration o Political question
- LGU’s power to tax is delegation from platform against
Congress which has the inherent power crony economy
to tax o Family, Human o Not self-executing
- Thus, it must yield to a superior Dignity, Youth,
legislative act. Social Justice and
2. The Charter of Manila is subject to Educational
control by Congress as mere creatures of Values provisions
law. of the Constitution
- Congress has power to create and
abolish municipal corporations Petition dismissed.
- Congress has power to tax and to
exempt
Dual Nature of a Municipal Corporation  The Spanish municipality and the American municipality are the
same.
VILAS v. CITY OF MANILA(1911) o Succession of property rights including right to enforce cause
Argued: Decided: April 3, 1911 of action (Act 183 of the Philippine Commission: perpetual
succession)
Mr. Justice Lurton o Identity of purpose and powers
o Identity of inhabitants incorporated.
 Trigas, Vilas and Aguado (waterworks and coal) were creditors of the o Identity of area
old City of Manila (before cession of PH by Spain to US by Treaty of o Some changes in the form of government and corporate powers
Paris) and administration but same property rights, obligations and
o In Aguado case, City of Manila was trustee of the Carriedo contracts.
Fund o Since New City is in every sense, successor of the Old City,
 Filed a claim for payment but was denied by PH court since the new then subject to all the liabilities also.
municipality is a different corporate entity and cannot be liable for the
Spanish municipality.

IS THE PRESENT AND REINCORPORATED MUNICIPALITY LIABLE

FOR THE OBLIGATIONS OF THE SPANISH MUNICIPALITY BEFORE
PH WAS CEDED TO THE US? YES

RULE: This is because of the DUAL CHARACTER of the MUNICIPAL

CORPORATION.

 Municipal corporations exercise powers that are

o Governmental: As a governmental subdivision, it exercises by
delegation, a part of the sovereignty of the State.
o Private or Business character: It is a legal entity and juristic
person. It stands for the community for the administration of
local affairs beyond the sphere of public purposes.

AS APPLIED: Since dual in character, then no reason to presume that

change in sovereignty, military occupation or territorial cession, totally
dissolves the municipal corporation. THE CORPORATE ENTITY
SURVIVED.

 CHANGE IN SOVEREIGNTY DOES NOT MEAN DISSOLUTION

OF THE CORPORATION. PRECISELY BECAUSE IT IS ALSO
CORPORATE IN CHARACTER, IT HAS AN ATTRIBUTE OF
PERPERTUAL SUCCESSION
 This is supported by Constitutional Law doctrines:
o That political laws in conflict with the Constitution of new
sovereignty are abrogated by private and domestic rights
remain in force until repealed or altered.
G.R. No. L-28089 October 25, 1967

BARA LIDASAN, petitioner,

vs.
COMMISSION ON ELECTIONS, respondent.
RULE: The invocation of the doctrine of severability or separability cannot apply:
Suntay for petitioner.
Barrios and Fule for respondent.  Where the parts of the statute are so MUTUALLY DEPENDENT AND
CONNECTED as conditions, considerations, inducements, or compensations
SANCHEZ, J.: for each other, as to warrant a belief that the legislature intended them as a
whole, all the provisions which are dependent or conditional must also be
 Bara Lidasan, as taxpayer, citizen of detached Cotabato barrios and voter in the struck down with the unconstitutional provisions.
1967 Elections
 Assailing RA 4790: Creating the Municipality of Dianaton, Lanao APPLIED: Creation of municipality with 9 barrios from Lanao intends depends
 Later found out that there are 12 barrios in Municipality of Buldon and on inclusion of 12 barrios from Cotabato
Parang, Cotabato that were included and transferred to the new municipality.
 COMELEC upheld the law and the change in boundaries but the OP  Important factors of Population, Income and Territory will be affected.
recommended that operation be suspended until clarification.  Explanatory note of House Bill speaks of an original 21barrios. If 12 will be
removed and only 9 retained as Municipality of Dianaton, there will be
Does the law violate the Constitutional provision that no bill be enacted embracing different implications; not intended by the proponent.
more than one subject in the title? o “Progressive Community,
o Large Aggregate Population and
RULE: The Consti provision’s intention o Sufficient Income”
 Intended seat of government in Togaig, which is in Cotabato.
 Refrain from conglomeration  Thus, it is not fair for the Court to assume that the inhabitants, as conveyed by
their legislative representative, intended to form a municipal corporation even
 Title must sufficiently notify and appraise legislators and public of nature,
with just 9 barrios because there are duties and responsibilities of an
scope and consequences to avoid surprise of fraud.
independent municipal corporation that may not be performed with such
decreased income. (Judicial legislation)
APPLICATION: RA is null and void for violating the Constitution because it is
misleading and deceptive.
DOCTRINE: Municipal corporations perform twin functions. Firstly. They serve as an
instrumentality of the State in carrying out the functions of government. Secondly. They
 Impression that it is solely to create the Municipality of Dianaton and that its
act as an agency of the community in the administration of local affairs. It is in the latter
inhabitants are the only ones affected when in reality, it involves the
character that they are a separate entity acting for their own purposes and not a
detachment, dismembering and incorporation of inhabitants in Cotabato.
subdivision of the State.13
 Transfer of a sizeable portion of territory from one province to another of
necessity involves reduction of area, population and income of the first and
the corresponding increase of those of the other. This is as important as the
creation of a municipality. And yet, the title did not reflect this fact.
 Thus it is not informative of the true impact of the law and keeps in the dark
those which are truly affected.
 [G.R. No. 148622. September 12, 2002] REPUBLIC OF THE PHILIPPINES, engaged in corporate activities, it acts as an agent of the community in the
represented by HON. HEHERSON T. ALVAREZ, in his capacity as Secretary of administration of local affairs.[9]
the DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
(DENR), CLARENCE L. BAGUILAT, in his capacity as the Regional Executive
Director of DENR-Region XI and ENGR. BIENVENIDO L. LIPAYON, in his
capacity as the Regional Director of the DENR-ENVIRONMENTAL RULE: Section 16 LGC: Duty to promote the people’s right to a balanced
MANAGEMENT BUREAU (DENR-EMB), Region XI, petitioners, vs. THE CITY ecology.
OF DAVAO, represented by BENJAMIN C. DE GUZMAN, City
Mayor, respondent.
YNARES-SANTIAGO, J.:
APPLICATION: LGUs are not exempted from the coverage of PD1586. As a
BODY POLITIC, endowed with governmental functions, an LGU has the duty to
ensure the quality of the environment, which is the very same objective of PD
 Application for a Certificate of Non-Coverage for the Davao City Artica 1586.
Sports Dome

RULE: Section 4 of PD 1586: “No person, partnership or corporation shall

 Regional Environment Management Bureau denied the application finding the undertake or operate any such declared environmentally critical project or area
proposed project to be within an environmentally-critical area. They required without first securing an Environmental Compliance Certificate issued by the
the local government to thus undergo Environmental Impact Assessment. President or his duly authorized representative.”

 City of Davao protests this Order arguing that since it is NEITHER an envi- APPLICATION: The Civil Code defines a person as either natural or juridical.
critical project nor within an envi-critical area, the issuance of a CNC is The state and its political subdivisions, i.e., the local government units[14] are
ministerial for the DENR upon its submission of the required documents, juridical persons.[15] Undoubtedly therefore, local government units are not
which it complied with already. excluded from the coverage of PD 1586.

 TRIAL COURT: Local Government excluded from requirement by RULE: Section 1 of PD: “achieve a balance between socio-economic development
enumeration. PD 1586 requires only agencies and instrumentalities of the and environmental protection, where all the sectors of the community are
National Government, GOCCs and private corporations. expressio unius est involved, i.e., the government and the private sectors.
exclusio alterius.

APPLICATION: The local government units, as part of the machinery of the

THE CITY OF DAVAO IS NOT REQUIRED TO DO EIA. MANDAMUS government, cannot therefore be deemed as outside the scope of the EIS system
FOR ISSUANCE OF CNC IS PROPER.

RULE: Section 15 LGC: When exercising governmental powers and performing

governmental duties, an LGU is an agency of the national government. When
 HOWEVER, sufficiently shown that the Artica Sports Dome will NOT have a
significant negative environmental impact because it is not an environmentally
critical project and it is not located in an environmentally critical area.

1. Certification from the City Planning and Development Office that the project is not
located in an environmentally critical area;

2. Certification from the Community Environment and Natural Resources Office

(CENRO-West) that the project area is within the 18-30% slope, is outside the scope of
the NIPAS (R.A. 7586), and not within a declared watershed area; and

3. Certification from PHILVOCS that the project site is thirty-seven (37) kilometers
southeast of the southernmost extension of the Davao River Fault and forty-five (45)
kilometers west of the Eastern Mindanao Fault; and is outside the required minimum
buffer zone of five (5) meters from a fault zone.

APPLICATION: Proclamation No. 2146 was issued on December 14, 1981,

proclaiming the following areas and types of projects as environmentally critical and
within the scope of the Environmental Impact Statement System established under PD
1586:
The Artica Sports Dome in Langub does not come close to any of the projects or
areas enumerated above. Neither is it analogous to any of them. It is clear, therefore,
that the said project is not classified as environmentally critical, or within an
environmentally critical area. Consequently, the DENR has no choice but to issue the
Certificate of Non-Coverage.It becomes its ministerial duty, the performance of which
can be compelled by writ of mandamus, such as that issued by the trial court in the case
at bar.