Title
Supreme Court
League of Cities of the Philippines vs. Commission on Elections
Case
G.R. No. 176951
Decision Date
Aug 24, 2010
Municipalities exempted from income requirements for cityhood via Cityhood Laws; SC ruled laws unconstitutional, violating Constitution and equal protection.

Case Summary (G.R. No. 139346-50)

Constitutional Provision on City Creation and Uniform Criteria

Section 10, Article X of the 1987 Constitution mandates that the creation, division, merging, abolition, or boundary alteration of local government units—including cities—must conform exclusively to criteria established in the Local Government Code and be subject to a plebiscite. This clause obliges Congress to formulate all substantive requirements for city creation within the Local Government Code, thereby precluding separate laws from setting different or conflicting standards. The constitutional intent is to maintain uniform, non-discriminatory rules for cityhood, preventing piecemeal or preferential enactments.

RA 9009 and the Income Requirement for Cityhood

RA 9009 amended Section 450 of the LGC, raising the required locally generated average annual income for municipalities seeking cityhood from PhP 20 million to PhP 100 million. This amendment took effect on June 30, 2001, and notably lacks any exemption clauses for municipalities whose cityhood bills were pending during its enactment. Hence, the increased income threshold universally applies to all prospective cities.

Unconstitutionality of the Cityhood Laws for Exempting Respondents from Income Requirement

The sixteen Cityhood Laws in question granted explicit exemptions to the respondents from the increased income requirement under RA 9009—effectively allowing conversion to city status without meeting the new P100 million income floor. Since these exemptions are found outside the Local Government Code and contradict its provisions, the Court held them to be unconstitutional under Section 10, Article X of the Constitution. Congress overstepped its legislative authority by enacting separate laws that frustrated the uniform standards established in the LGC. The Court emphasized that the plain language of RA 9009 as an amendment to the LGC leaves no room for exemptions.

Operative Fact Doctrine and Its Proper Application

The Court discussed the operative fact doctrine, which acknowledges that effects of an unconstitutional law may remain valid if executed before the judicial declaration of its invalidity, to avoid undue hardship and inequity. The Court rejected the minority’s novel theory that such effects could “constitutionalize” the law itself. Instead, the doctrine applies only to preserve past actions taken in good faith reliance on presumed valid laws, not to validate an inherently unconstitutional statute. Consequently, while the Cityhood Laws remain void, actions taken by the newly created cities before the declaration of nullity—such as payments and contracts—may continue to be recognized to prevent injustice.

Violation of the Equal Protection Clause: Arbitrary Classification

The Court found that the Cityhood Laws also violated the equal protection clause by granting exemptions based solely on the fact that the municipalities filed cityhood bills before RA 9009's enactment during the 11th Congress. This criterion was not a substantial or rational basis related to the purpose of the law, which was to assure fiscal viability of cities. The classification was arbitrary and limited to a condition that could never recur, thereby discriminating against municipalities not sharing this status. Such selective exemption did not apply uniformly to all similarly situated municipalities, creating an impermissible privileged class. Thus, the Cityhood Laws contained classifications that failed to uphold constitutional equal protection standards.

Tie-Vote on Motion for Reconsideration and Finality of Earlier Decision

The Court clarified procedural rules under Section 7, Rule 56 of the Rules of Court, and a prior en banc Resolution, that a tie vote on a motion for reconsideration results in denial of the motion, leaving the prior decision intact. Although there was a 6-6 split on the second motion for reconsideration, this deadlock did not overturn the original November 18, 2008 Decision declaring the Cityhood Laws unconstitutional. The entry of judgment for this decision became final and executory, and no tie vote can reverse a prior majority ruling. Hence, the 2008 Decision remains the binding ruling on the case.

Conclusion: Reinstatement of the Declaration of Unconstitutionality

The Supreme Court granted the motions for reconsideration of the December 21, 2009 Decision that had originally upheld the Cityhood Laws, and reinstated the November 18, 2008 Decision declaring the sixteen Cityhood Laws unconstitutional for violating Section 10, Article X of the 1987 Constitution and the equal protection clause. Congress’s enactment of separate laws exempting certain municipalities from the uniform income requirement set in the Local Government Code constituted an abuse of legislative power. The Court accordingly declared Republic Act Nos. 9389, 9390, 9391, 9392, 9393, 9394, 9398, 9404, 9405, 9407, 9408, 9409, 9434, 9435, 9436, and 9491 void.

Dissenting Opinion: Jurisdiction, Legislative Power, and Reasonableness of Classification

Justice Velasco, Jr. dissented, arguing that the November 18, 2008 Decision had not truly attained finality due to ongoing motions and the complex procedural history, includin


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