Case Summary (G.R. No. 155746)
Factual Background
In 1965 petitioners acquired Lot 1029 from the City of Cebu, later reverted to the Province of Cebu under undisclosed circumstances. Petitioners successfully sued for specific performance, securing a final deed of sale in 1994 and registration of TCT No. 129306. Upon attempting physical possession, petitioners discovered squatters on the property and obtained final ejectment and demolition orders by April 1998.
Procedural History
After the demolition order was stayed at the mayor’s request in early 1999, the Cebu City Council passed Ordinance No. 1772 (June 1999) and subsequently Ordinance No. 1843 (July 2000) to expropriate Lot 1029 for socialized housing. Petitioners filed a complaint before the RTC seeking nullification of Ordinance No. 1843 on constitutional grounds. The trial court and RTC denied relief, prompting this petition for review.
Ordinance No. 1843 and Constitutional Issues
Ordinance No. 1843 authorized the mayor to initiate expropriation of petitioners’ land for subdivision and sale to existing occupants, appropriating ₱6,881,600 for just compensation. Petitioners challenged the ordinance as unconstitutional, arguing it failed the “public use” requirement and served political ends by conferring benefits on a limited group of squatters.
Power of Eminent Domain under RA 7160
Section 19 of RA 7160 grants local government units the power of eminent domain for public use, purpose, or welfare, subject to constitutional guarantees. Local councils may exercise this power only through ordinances and after a valid, definite offer to the owner. The ordinance must comply with due process, just compensation, and other constitutional requirements.
Constitutional Constraints: Due Process and Public Use
Due process protects private property against arbitrary state action. Expropriation must rest on genuine public necessity and cannot be capricious or discriminatory. Public use entails a benefit to the community at large, not merely a few individuals. Strict judicial scrutiny is required to prevent “whim or caprice” in selecting properties for condemnation.
Limits under RA 7279
RA 7279 prescribes priorities for acquiring lands for socialized housing:
- Government-owned lands
- Alienable public domain
- Abandoned or idle lands
- Declared development or slum sites
- BLISS sites
- Private lands (lowest priority)
Expropriation is permitted only after exhausting other acquisition modes (community mortgage, land swapping, consolidation, banking, donation, joint venture, negotiated purchase) and expressly exempts small-owner parcels from forced sale if alternatives remain.
Absence of Compliance with RA 7279 and RA 7160
The City of Cebu made no attempt to acquire higher-priority lands under Section 9 of RA 7279, nor did it exhaust alternative acquisition modes under Section 10. No valid, definite offer to purchase petitioners’ property preceded Ordinance No. 1843, violating Section 19 of RA 7160. The ordinance provided no rationale for selecting the petitioners’ lot over other p
...continue readingCase Syllabus (G.R. No. 155746)
Facts
- In 1964, the Province of Cebu donated 210 lots, including Lot 1029 in Capitol Hills (4,048 sqm), to the City of Cebu.
- In 1965, petitioners purchased Lot 1029 on installment from the City.
- Later in 1965, the 210 lots reverted to the Province of Cebu; the province sought to annul the City’s sale to petitioners.
- Petitioners sued for specific performance and damages; on July 9, 1986, the court of first instance ordered the Province to execute a final deed of sale.
- On June 11, 1992, the Court of Appeals affirmed.
- On June 17, 1994, the Province executed an absolute deed of sale; TCT No. 129306 issued in petitioners’ names.
- Petitioners found squatters on the lot and filed ejectment proceedings on June 15, 1997.
- On April 1, 1998, the MTCC ordered squatters to vacate; RTC affirmed and issued writ of execution and demolition order.
- Mayor Alvin Garcia requested a 120-day suspension of demolition (Feb 22 and May 20, 1999 letters); MTCC granted the suspension.
- During suspension, the Sangguniang Panlungsod passed a resolution identifying Lot 1029 as a socialized housing site under RA 7279.
- On June 30, 1999, Ordinance No. 1772 amended Cebu’s zoning ordinance to include socialized housing sites.
- On July 19, 2000, the SP enacted Ordinance No. 1843 authorizing expropriation of petitioners’ Lot 1029 for subdivision and sale to homeless occupants, appropriating ₱6,881,600.
- Petitioners filed a complaint for nullity of Ordinance No. 1843 on August 29, 2000; RTC Branch 23 dismissed it on July 1, 2002; motion for reconsideration denied on August 26, 2002.
Procedural History
- Petition for review filed before the Supreme Court challenging the July 1, 2002 RTC decision and the August 26, 2002 denial of reconsideration.
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