Case Summary (G.R. No. L-10405)
Facts and Legislative Appropriation
Congress enacted Republic Act No. 920 on June 20, 1953, appropriating ₱85,000 for the “construction, reconstruction, repair, extension and improvement” of feeder roads in the Antonio Subdivision. At enactment and approval, the designated roads were unbuilt, privately owned streets within Zulueta’s subdivision and did not serve existing public property or traffic.
Procedural History in the Trial Court
On August 31, 1954, Governor Pascual filed for declaratory relief and injunction, alleging the appropriation was illegal and void—both for lacking a public purpose and for violating the constitutional ban on legislator-interested contracts. Respondents moved to dismiss for lack of capacity and cause of action. On October 29, 1953 (sic), the trial court granted dismissal, upholding the appropriations and declining to entertain the governor’s challenge to the donation.
Public Purpose Doctrine and Constitutional Limits
Under the 1935 Constitution’s requirement that taxation and appropriations serve exclusively public purposes, the Court emphasized that incidental benefit to private parties cannot justify an appropriation. Jurisprudence from Philippine and American authorities confirms that public funds may not be devoted to private enterprise or advantage.
Constitutional Prohibition on Legislator-Interested Contracts
Senator Zulueta executed a “deed of donation” on December 12, 1953, purporting to give the feeder-road lots to the Republic, subject to reversion if used improperly. Article VI, Section 10 of the 1935 Constitution forbids members of Congress from being directly or indirectly interested in any government contract. The reversionary condition rendered the donation a contract, thereby violating the constitutional prohibition and civil law against contracts contrary to public policy (Civil Code, Art. 1409).
Supreme Court’s Analysis of Appropriation’s Invalidity
The Supreme Court held that the feeder roads were private property when RA 920 was passed and became effective. Accordingly, the appropriation lacked a public purpose and was void ab initio. The subsequent deed of donation—executed after the appropriation’s enactment—could not cure this fundamental const
...continue readingCase Syllabus (G.R. No. L-10405)
Facts of the Case
- Republic Act No. 920, approved June 20, 1953, appropriated ₱85,000 under section 1-C(a)(43[h]) “for the construction, reconstruction, repair, extension and improvement” of Pasig feeder road terminals (General Roxas, General Araneta, General Lucban, General Capinpin, General Segundo, General Delgado, General Malvar, General Lim)
- The “feeder roads” were then merely projected subdivision streets in the Antonio Subdivision of Pasig, Rizal, as shown in tracings annexed to the petition (Annexes A and B), and did not connect any government property or important premises to a main highway
- At the time RA 920 was passed and approved, the parcels on which these roads were to be constructed belonged to Senator Jose C. Zulueta, a private subdivision owner
- On May 29, 1953, Zulueta offered by letter to donate the projected roads to the Pasig Municipal Council; acceptance on June 13, 1953 was subject to submission of a plan and renaming of two roads, but no deed was executed then
- On July 10, 1953, Zulueta’s letter calling attention to RA 920 and the ₱85,000 appropriation was endorsed by the council to the District Engineer of Rizal, without action to date
- On December 12, 1953, while still a senator, Zulueta executed an alleged deed of donation of the four parcels to the Republic of the Philippines, accepted that same day by the Executive Secretary, subject to an onerous condition of reversion if the lands are used otherwise than for street purposes
Procedural History
- August 31, 1954: Petitioner Wenceslao Pascual, Provincial Governor of Rizal, filed a petition for declaratory relief with injunctive relief in the Court of First Instance of Rizal
- Prayer: Declaration that the ₱85,000 item of RA 920 is null and void, that Zulueta’s donation deed is unconstitutional and void, issuance of permanent and preliminary injunctions against officials and Zulueta to prevent expenditures under the contested item
- Respondents moved to dismiss for lack of legal capacity to sue and failure to state a cause of action
- October 29, 1953: The trial court granted the motions to dismiss, dissolved the preliminary injunction, and dismissed the petition with costs against the petitioner
- Petitioner appealed to the Supreme Court
Legal Issues
- Whether Congress may constitutionally appropriate public funds for the improvement of privately owned subdivision roads
- Whether a donation by a sitting senator of private land to the Government, subject to a reversionary condition, constitutes an unconstitu