Title
Mercado vs. Municipality President of Macabebe, Pampanga
Case
G.R. No. 37986
Decision Date
Mar 1, 1934
Dispute over Batasan-Limasan creek: appellant claims artificial, private ownership; appellees argue natural, public. Court rules creek public domain, citing public use, water sources, and Land Registration Act limitations.

Case Summary (G.R. No. 210766)

Procedural history

The Secretary of Commerce and Communications ordered Romulo Mercado to remove two dikes that closed the two ends of the creek crossing the hacienda. Romulo (later donating the hacienda to Eufemia) appealed administratively; the Court of First Instance of Pampanga dismissed the appeal, holding the creek to be public domain. Eufemia Mercado, as assignee/donee of Romulo, appealed the dismissal to the Supreme Court.

Facts as found in the record

The creek, called Batasan‑Limasan or Pinac Bungalun, originally consisted of two recesses or arms (Bungalun and Batasan‑Limasan) connected to the Nasi River and Limasan creek. Mariano Mercado, the original hacienda owner, allegedly had men excavate to connect the recesses and to open channels toward both the Nasi River and Limasan creek, creating a continuous water route used as a canal. That canal appeared on the plan presented during registration proceedings that resulted in Certificate No. 329; no opposition was filed by defendants or the Insular Government at registration. From the time it was opened as a route, residents of the hacienda and others used it for passage and fishing, sometimes with and sometimes without permission. In 1928 Romulo Mercado closed the two openings to convert the canal into a fish pond.

Parties’ contentions

Appellant (through predecessors): The creek is artificial — a canal developed by excavations by the hacienda owners — and therefore part of the private estate. Closure and conversion into a fish pond were within the owner’s rights. The appellant relies on title and on evidence that excavations rendered the watercourse navigable.
Appellees (municipal president and Secretary): The creek is a natural, navigable creek existing long before the Revolution and is thus part of the public domain. Public rights attach, and private title cannot exclude public ownership.

Evidence presented and its weight

Appellant’s evidence: Testimony (Mariano/Romulo Mercado, Maximo de la Pena, Andres Limin) that excavations by approximately 60 laborers over two weeks connected two recesses and opened the channel; that navigability was achieved only after such work; that Romulo closed the creek in 1928 to prevent trespass. Evidence also showed that the creek appeared on the land plan admitted in the proceeding for Certificate No. 329 and that no opposition had been filed then.
Appellees’ evidence: Testimony (Castor Quiambao, Maximino Guintu, Lorenzo Magat) claiming long‑standing use and passage by locals and a municipal council resolution (Exhibit 6) placing the privilege to fish in the creek at public auction. The municipal resolution, however, lacked proof that any privilege was actually awarded. The court found appellees’ witnesses less persuasive: one witness was relatively young and admitted limited use, and others were not local residents with the same familiarity as appellant’s witnesses. A Bureau of Lands measurement (in November) showed the channel over two meters deep at the mouth and about 1.5 meters at shallow parts, indicating substantial navigability.

Legal issues presented

  1. Whether the Batasan‑Limasan (Pinac Bungalun) creek is part of the public domain irrespective of its presence within a titled hacienda.
  2. Whether excavations and subsequent private use could convert what might otherwise be public waters into private property belonging to the titleholder.
  3. Whether the issuance of Certificate of Title No. 329 conferred any right to the creek that would supersede public domain claims, given statutory exceptions.

Applicable legal principles applied by the court

  • Civil Code, Article 339: property devoted to public use includes canals, rivers, torrents, ports, and the like.
  • Civil Code, Article 407: items of public ownership include rivers and their natural channels; continuous or intermittent waters running in natural channels; waters flowing from private lands to the State or towns are public from the moment they leave such lands (Article 407(8) being particularly invoked).
  • Civil Code, Article 408: identifies kinds of private ownership of waters (e.g., waters rising and running within private estates, lakes and ponds formed naturally on estates) and treats ditches or aqueducts as integral if the waters are intended for private estate use; owners along such aqueducts lack ownership unless title deeds specifically grant it.
  • Prescription and public use: use and enjoyment of property susceptible of appropriation may be acquired or lost by prescription. The need for authorization to deprive the public of use of waterways is stressed.
  • Act No. 496, section 39: certificates of title are subject to statutory exceptions; public domain features shown on plans are not thereby converted into private property.

Court’s analysis

The court recognized conflicting testimony but emphasized the undisputed geographic and hydrological fact that the creek derived its waters from the Nasi River and from Limasan creek — bodies that belong to the public domain. Under Article 407(8) and Article 339, a watercourse that functions as an arm connecting public waterways is of a character th

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