Title
Cebu Oxygen and Acetylene Co., Inc. vs. Bercilles
Case
G.R. No. L-40474
Decision Date
Aug 29, 1975
A Cebu City parcel, declared abandoned by the City Council, was sold to petitioner, who sought title registration. The Supreme Court ruled the land, withdrawn from public use, became patrimonial property, validating the sale and registration.
abandoned road
private property
public use
A

Case Summary (G.R. No. 140817)

Petitioner’s Acts and Claim

The petitioner participated in a public bidding authorized by the City Council of Cebu and was the highest bidder for the withdrawn portion of M. Borces Street. The Acting City Mayor executed a deed of absolute sale in favor of the petitioner on March 3, 1969, for P10,800.00. Pursuant to that deed, the petitioner filed an application in the Court of First Instance of Cebu to have its title to the lot registered.

Respondents’ Position and Motion

On June 26, 1974, the Assistant Provincial Fiscal moved to dismiss the petitioner’s registration application on the ground that the property was a public road intended for public use and, therefore, part of the public domain. As such, the property was argued to be outside the commerce of man and incapable of private registration.

Key Dates and Procedural History

  • September 23, 1968 (approved October 3, 1968): City Council Resolution No. 2193 declaring the terminal portion of M. Borces Street as abandoned, as it was not included in the City Development Plan.
  • December 19, 1968: City Council Resolution No. 2755 authorizing sale by public bidding.
  • March 3, 1969: Deed of absolute sale by the Acting City Mayor to the petitioner.
  • June 26, 1974: Assistant Provincial Fiscal’s motion to dismiss petitioner’s registration application.
  • October 11, 1974: Trial court order dismissing the petitioner’s application.
  • Supreme Court review resulted in the trial court’s dismissal being set aside and remand to proceed with the hearing of the application.

Applicable Law and Authorities

  • Revised Charter of the City of Cebu (Republic Act No. 3857), Section 31(34): grants the City Council power “to close any city road, street or alley, boulevard, avenue, park or square,” and provides that “Property thus withdrawn from public servitude may be used or conveyed for any purpose for which other real property belonging to the City may be lawfully used or conveyed.”
  • Civil Code, Article 422: “Property of public dominion, when no longer intended for public use or for public service, shall form part of the patrimonial property of the State.”
  • Controlling precedent cited by the Court: Favis v. City of Baguio — recognizing municipal authority to withdraw streets from public use and the deference courts should give to municipal legislative determinations, absent clear abuse, fraud, or collusion.
  • Constitutional context: the decision was rendered in 1975 and is to be read against the constitutional and legal framework applicable at that time.

Issues Presented

  1. Whether the City Charter (Section 31, para. 34) empowered the City of Cebu to declare a city road abandoned (i.e., to close and withdraw it from public use).
  2. Whether the declaration of abandonment converted the withdrawn portion into patrimonial property of the City that could be the subject of a lawful sale and subsequently be registered in the name of a private buyer.

Relevant Facts

The contested parcel was originally a terminal portion of a city street. The City Council passed resolutions declaring the terminal portion abandoned and authorizing its sale by public bidding. The City awarded the lot to petitioner, executed a deed of sale, and the petitioner sought judicial registration. The Assistant Provincial Fiscal contested registration on public-domain grounds, leading to the trial court’s dismissal and subsequent appeal to the Supreme Court.

Trial Court Ruling

The trial court dismissed the petition for registration on the ground that the property was a public road intended for public use and thus part of the public domain, making it incapable of private ownership and registration.

Supreme Court’s Legal Analysis

  • Statutory authority: The Court observed that Section 31(34) of the Revised Charter of Cebu City unambiguously confers on the City Council the power to “close any city road, street or alley…,” and to use or convey property withdrawn from public servitude in the same manner as other city real property. This statutory grant was construed as a clear municipal power to vacate streets and to subject withdrawn parcels to disposal.
  • Deference to municipal determination: The Court applied the principle articulated in Favis v. City of Baguio that the city council is the competent authority to determine whether a street remains necessary for public use. The act of vacating or withdrawing a street is a discretionary municipal act; courts will not ordinarily intervene unless there is a plain showing of abuse of discretion, fraud, or collusion. The incidental serving of private interests does not invalidate the vacation ordinance.
  • Conversion to patrimonial property: The Court relied on Article 422 of the Civil Code to hold that property of public dominion, when no longer intended for public use or public service, becomes patrimonial property of the State (or, by extension, of the local government unit). The Revised Charter’s express provision that withdrawn property may be used or conveyed reinforced this principle and validated the City’s capacity to sell the withdrawn parcel.
  • Consequence for registration: Because the withdrawal from public use and the subsequent sale were valid under the charter and Civil Code principles, the parcel ceased to be in the public domain and became subject to ordinary commerce and registration in the name of a private purchaser.

Holding and Disposition

The Supreme Court set aside the trial court’s dismissal and ordered the lower court to

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