Title
Favis vs. Municipality of Sabangan
Case
G.R. No. L-26522
Decision Date
Feb 27, 1969
Plaintiffs sued Municipality of Sabangan for unpaid G.I. pipes; municipality denied liability, citing unauthorized purchase. Supreme Court ruled municipality not exempt from legal fees, upheld lack of liability due to unauthorized contract.

Case Digest (G.R. No. L-26522)

Facts:

Antonio Favis and Corazon Favis, doing business as Union Grocery and Hardware v. Municipality of Sabangan, Bontoc, Mountain Province, G.R. No. L-26522. February 27, 1969, Supreme Court En Banc, Teehankee, J., writing for the Court.

On February 4, 1965, plaintiffs-appellants Antonio Favis and Corazon Favis sued the Municipality of Sabangan in the City Court of Baguio for collection of P1,115.00, the invoice value of assorted G.I. pipes delivered for a municipal waterworks project, plus interest, attorney’s fees and costs. The municipality, through its mayor Agustin Velasco, answered that the then-mayor was not authorized to contract or buy on credit for the municipality and thus the municipality was not legally bound.

After trial the City Court rendered judgment for the plaintiffs. The municipality appealed to the Court of First Instance (CFI) of Baguio City but did not pay or deposit the required CFI docket fee nor post an appeal bond under Rule 40, Sec. 2, Rules of Court. Plaintiffs moved in the CFI to dismiss the appeal for non‑perfection; the CFI denied the motion, concluding that the municipality was exempt from payment of such fees under Rule 141, Sec. 16 (the Government Exempt clause) as construed together with Section 2 of the Revised Administrative Code. The CFI denied plaintiffs’ motion for reconsideration, heard the case de novo, and thereafter dismissed plaintiffs’ complaint on the merits for lack of legal liability of the municipality.

Plaintiffs directly elevated the case to the Supreme Court by appeal on questions of law under Rule 42, Sec....(Pro-only)

Issues:

  • Does Rule 141, Section 16 — the provision exempting the Government from paying legal fees — apply to municipal corporations such as the Municipality of Sabangan, or only to the Republic of the Philippines (the National Government)?
  • Did the Municipality’s failure to pay the appellate docket fee and to post an appeal bond render the Court of First Instance’s exercise of appellate jurisdiction v...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

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