Title
Macasiano vs. Diokno
Case
G.R. No. 97764
Decision Date
Aug 10, 1992
A municipality's ordinance converting public streets into a flea market was invalidated by the Supreme Court for exceeding local authority, violating public use principles, and failing to meet regulatory conditions, as public streets cannot be appropriated for private purposes.
A

Case Summary (G.R. No. 97764)

Factual Background

On June 13, 1990 the Municipality of Paranaque enacted Ordinance No. 86, Series of 1990, authorizing the closure of J. Gabriel, G.G. Cruz, Bayanihan, Lt. Garcia Extension and Opena Streets in Baclaran for the establishment of a flea market. The Metropolitan Manila Authority approved the ordinance on July 20, 1990 subject to specified conditions concerning vehicular use, pedestrian corridors, hours of operation, marking, and temporariness pending reclamation development. The municipal council had earlier on June 20, 1990 authorized the mayor to contract with a service cooperative to operate flea markets. On August 8, 1990 the Municipality entered into an agreement with Palanyag Kilusang Bayan for Service to operate the flea market, and market stalls were erected on the subject streets.

Police Action and Controversy

On September 13, 1990 petitioner as Superintendent of the Metropolitan Traffic Command ordered destruction and confiscation of stalls along G.G. Cruz and J. Gabriel Streets; the stalls were subsequently returned to Palanyag. On October 16, 1990 petitioner issued a letter giving Palanyag ten days to discontinue the flea market or face dismantling. The Municipality and Palanyag thereupon filed a joint petition for prohibition and mandamus with damages and prayed for a preliminary injunction in the Regional Trial Court, Branch 62, Makati.

Trial Court Proceedings and Ruling

The trial court issued a temporary restraining order on October 24, 1990 enjoining petitioner from enforcing the October 16, 1990 letter-order pending hearing. On December 17, 1990 the trial court entered an order upholding the validity of Ordinance No. 86, s. 1990 and granted the writ of preliminary injunction enjoining petitioner from enforcing his letter-order against respondent Palanyag. The trial court reasoned that Chapter II, Section 10 of Batas Pambansa Blg. 337 vested power on local government units to close roads and that the petitioner’s action encroached upon powers legally vested in the Municipality.

Issue Presented

The sole issue the Court framed was whether a municipal ordinance or resolution authorizing the lease and use of public streets or thoroughfares as sites for flea markets is valid under the law.

Petitioner’s Contentions

Petitioner, through the Solicitor General, contended that municipal roads are public property devoted to public service and therefore outside the commerce of man; that such streets cannot be subject to private appropriation or contract by anyone, including the Municipality; that a property already dedicated to public use cannot be converted to another public use absent specific legislative authority; that, in any event, the Municipality failed to comply with the conditions imposed by the Metropolitan Manila Authority for approval of the ordinance; and that allowing vendors to occupy streets contravened the Municipality’s duty under the Local Government Code to promote the general welfare of residents.

Respondents’ Contentions

Respondents maintained that the enactment of the ordinance fell within the powers granted by law to local government units and that the courts should not interfere with such local legislative action. They relied on the purported grant of authority in Chapter II, Section 10 of Batas Pambansa Blg. 337 to close roads and to use or convey property withdrawn from public use.

Legal Analysis and Reasoning

The Court examined the governing law effective when the ordinance was enacted, namely Batas Pambansa Blg. 337, and the Civil Code provisions on public and patrimonial property. The Court reiterated that property of provinces, cities and municipalities is divided into property for public use and patrimonial property (Art. 423, Civil Code) and that property for public use includes city streets and provincial roads (Art. 424, Civil Code). The Court held that streets devoted to public service are public property and are under the control of Congress; local governments therefore lack authority to dispose of or lease such public dominion unless specific authority is vested by statute. The Court observed that Section 10, Chapter II of Batas Pambansa Blg. 337 permits a local government unit to close roads but only in accordance with existing law and with limitations: closure must withdraw the property from public use, the local unit must indemnify any person prejudiced thereby, and only when circumstances demonstrate the property is no longer intended or necessary for public use does it become patrimonial property that may be used or conveyed. The Court relied on precedent, notably Cebu Oxygen and Acetylene Co., Inc. v. Bercilles, et al., G.R. No. L-40474, August 29, 1975, 66 SCRA 481, and Francisco v. Dacanay, G.R. No. 93654, May 6, 1992, to confirm that streets ordinarily used for vehicular traffic remain public dominion and may not be leased or otherwise made the subject of private contracts. The Court further found that even assuming arguendo that the Municipality possessed authority to enact the ordinance, the Municipality had not shown compliance with the Metropolitan Manila Authority’s conditions precedent to approval, including proof that the streets were not used for vehicular traffic, that a majority of residents did not oppose the flea market, designation of the vending hours, and the required markings and pedestrian corridors. The Court also noted the practical adverse effects of the street occupation on emergency access, hospital access, schoolchildren, sanitation, and general welfare as persuasive of the limits on municipal action.

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