Title
Province of Zamboanga del Norte vs. City of Zamboanga
Case
G.R. No. L-24440
Decision Date
Mar 28, 1968
Zamboanga City and Zamboanga del Norte disputed ownership of properties post-province division; Supreme Court ruled patrimonial properties require compensation, public ones do not.

Case Digest (G.R. No. L-24440)
Expanded Legal Reasoning Model

Facts:

  • Legislative Background
    • Prior to incorporation as a chartered city, the Municipality of Zamboanga was the capital of the then Province of Zamboanga.
    • Commonwealth Act No. 39 (Oct. 12, 1936) converted the municipality into Zamboanga City and, under § 50, required the city to acquire abandoned provincial buildings and properties at a price fixed by the Auditor General.
  • Description and Use of Properties
    • Fifty Torrens-titled lots, with buildings, in Zamboanga City were titled in the name of Zamboanga Province.
    • The lots were utilized as follows:
      • Capitol Site (1 lot)
      • School Sites (3)
      • Hospital Sites (3)
      • Leprosarium Sites (3)
      • Curuan School (1)
      • Trade School (1)
      • Burleigh Schools (2) + appurtenant grounds (9)
      • High School Playgrounds (2)
      • Hydro-Electric Site at Magay (1)
      • San Roque Site (1)
      • Vacant Lots (23)
  • Transfers, Valuations, and Initial Payments
    • In 1945, the provincial capital was transferred to Dipolog; by Republic Act No. 286 (June 16, 1948), it was made Molave.
    • On May 26, 1949, the Appraisal Committee (Auditor General) fixed the total value of the fifty lots and buildings at ₱1,294,241.00.
    • Republic Act No. 711 (June 6, 1952) divided the old province into Zamboanga del Norte and Zamboanga del Sur. By Auditor General’s apportionment (Jan. 11, 1955), Zamboanga del Norte was entitled to 54.39% (₱704,220.05).
    • Executive Secretary’s ruling (Mar. 17, 1959) recognized Zamboanga del Norte’s vested co-ownership; the Secretary of Finance instructed quarterly deductions (25% of Zamboanga City’s internal revenue allotment), aggregating ₱57,373.46, credited to Zamboanga del Norte.
  • Amendment, Cease of Payments, and Litigation
    • Republic Act No. 3039 (June 17, 1961) amended § 50 of CA 39, transferring free of charge all former provincial properties in Zamboanga City to the city. The Secretary of Finance (July 12, 1961) ordered cessation of further payments and return of ₱57,373.46; Zamboanga City received back ₱43,030.11.
    • On March 5, 1962, Zamboanga del Norte filed a complaint for declaratory relief with preliminary mandatory injunction, praying that RA 3039 be declared unconstitutional, that its rights be declared, that the Secretary of Finance and Commissioner of Internal Revenue be enjoined from reimbursing the ₱57,373.46, and that Zamboanga City be ordered to continue paying the balance of ₱704,220.05 in quarterly installments.
    • The Court of First Instance (June 4, 1962) granted the preliminary injunction. On August 12, 1963, it declared RA 3039 unconstitutional as to all fifty parcels; ordered Zamboanga City to pay ₱704,220.05 in quarterly 25% installments; and required Zamboanga del Norte to deed the lots upon full payment. On reconsideration, the lower court directed lump sum payment of ₱704,220.05 with 6% interest. Defendants appealed.

Issues:

  • Are the fifty parcels in question public property or patrimonial property of the defunct Province of Zamboanga?
  • Is Republic Act No. 3039, amending § 50 of Commonwealth Act No. 39, constitutional in transferring all former provincial properties in Zamboanga City free of charge to the city?
  • Is Zamboanga del Norte entitled to payment for its 54.39% share in the patrimonial properties?
  • Does the doctrine of laches bar Zamboanga del Norte’s claim?
  • What is the proper form and timing of payment (lump sum with interest vs. quarterly installments)?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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