Title
Municipality of Paranaque vs. V.M. Realty Corp.
Case
G.R. No. 127820
Decision Date
Jul 20, 1998
Parañaque’s expropriation of V.M. Realty’s land for housing failed due to reliance on a resolution, not an ordinance, invalidating the complaint; res judicata did not apply, but legal requirements were unmet.

Case Summary (G.R. No. 127820)

Procedural History

– Sept. 20, 1993: LGU files expropriation complaint based on Sangguniang Bayan Resolution No. 93-95, Series of 1993.
– Jan. 10 & Feb. 4, 1994: RTC gives the complaint due course and authorizes immediate possession upon 15% deposit.
– Feb. 21, 1994: Respondent moves to dismiss (no ordinance; barred by res judicata).
– Aug. 9 & Dec. 2, 1994: RTC nullifies authorization order and dismisses the case; motions denied.
– July 22, 1996: CA affirms RTC decision in toto.
– July 20, 1998: SC denies petition for review on certiorari.

Issues

  1. Does a municipal council resolution satisfy the ordinance requirement under RA 7160 Sec. 19 for initiating expropriation?
  2. Is the present suit barred by res judicata given a prior expropriation case dismissed with prejudice?

Ordinance vs. Resolution Requirement

• RA 7160 Sec. 19 mandates that an LGU’s chief executive exercise eminent domain “acting pursuant to an ordinance.”
• A municipal ordinance is a general, permanent law approved on third reading; a resolution merely expresses council sentiment and is temporary.
• The former Local Government Code (BP 337 Sec. 9) permitted resolutions; RA 7160, effective Jan. 1, 1992, deliberately shifted to require an ordinance.
• Implementing Rules (Art. 36, Rule VI) conflict by allowing a resolution, but the statute controls over administrative rules.
• Petitioner’s belated claim of an October 11, 1994 ordinance was unproved and, even if existing, cannot cure the defect in the original complaint filed under a mere resolution.

Res Judicata and Eminent Domain

• All elements of res judicata exist: prior final judgment on the merits involving identical parties (and successors) and subject matter.
• However, eminent domain is an inherent State power and cannot be permanently foreclosed by prior judgments: the State may reassert expropriation after complying with all legal prerequisites.
• Res judicata only bars re-litigation of specific issues already adjudicated (e.g., lack of prio



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