G.R. No. L-40474 - Cebu Oxygen and Acetylene Co., Inc. vs. Bercilles

Petitioner, Cebu Oxygen & Acetylene Co., Inc., applied for the registration of title over a portion of M. Borces Street in Cebu City.
The City Council of Cebu declared this portion as an abandoned road, as it was not included in the City Development Plan.
The Acting Mayor sold the abandoned road to the petitioner through a public bidding process, where the petitioner was the highest bidder.
The trial court dismissed the application for registration based on the argument that the property was a public road and thus part of the public domain, outside the commerce of men.

The petitioner raised two primary legal questions for review:
1. Whether the City Charter of Cebu City grants the City Council the authority to declare a road as abandoned.
2. Whether the declaration of abandonment converts the road into patrimonial property of the City, making it subject to common contracts.

The Revised Charter of Cebu City, specifically Section 31, grants the City Council legislative powers, including the authority to close city roads.
The court referenced the case of Favis vs. City of Baguio, affirming that the city council has the discretion to determine the necessity of a property for public use.
The court emphasized that such discretionary powers are generally not subject to judicial interference unless there is clear evidence of abuse, fraud, or collusion.

The court noted that once a portion of a city street is withdrawn from public use, it becomes patrimonial property, which can be the subject of ordinary contracts.
Article 422 of the Civil Code states that property of public dominion, when no longer intended for public service, becomes part of the patrimonial property of the State.
The Revised Charter explicitly allows for the use or conveyance of property withdrawn from public servitude for any lawfu...continue reading