Case Summary (G.R. No. 183239)
Key Dates
October 12, 1936 – Commonwealth Act No. 39 creates Zamboanga City and mandates purchase of abandoned provincial properties
1945 – Provincial capital transferred from Zamboanga City to Dipolog
June 16, 1948 – Republic Act No. 286 designates Molave as provincial capital
May 26, 1949 – Auditor General’s Appraisal Committee fixes value of properties at ₱1,294,241.00
June 6, 1952 – Republic Act No. 711 divides old province into Zamboanga del Norte and Zamboanga del Sur
January 11, 1955 – Auditor General allocates 54.39% of assets to Zamboanga del Norte
March 17, 1959 – Executive Secretary ruling revokes prior transfer of properties to city
June 17, 1961 – Republic Act No. 3039 transfers all former provincial properties to city free of charge
March 5, 1962 – Petition for declaratory relief and injunction filed
August 12, 1963 – Trial court judgment declaring RA 3039 unconstitutional
March 28, 1968 – Supreme Court decision
Applicable Law
1935 Philippine Constitution (protection against deprivation of private property without due process and just compensation);
Commonwealth Act No. 39; Republic Acts Nos. 286, 711, and 3039; Civil Code Arts. 423–424; principles of municipal corporations law
Incorporation and Statutory Acquisition Obligation
Commonwealth Act No. 39 converted the Municipality of Zamboanga into Zamboanga City and provided that upon transfer of the provincial capital, the city “will acquire and pay for” all abandoned provincial buildings and lands at a price fixed by the Auditor General. Fifty Torrens-titled lots and improvements in Zamboanga City were enumerated.
Provincial Capital Transfer and Appraisal
Following the 1945 transfer of the capital to Dipolog and the 1948 designation of Molave, the Auditor General’s Appraisal Committee in 1949 valued the 50 parcels at ₱1,294,241.00. No immediate payment followed.
Division of Old Province and Apportionment of Assets
Republic Act No. 711 (1952) split the old Province of Zamboanga into del Norte and del Sur, directing equitable division of assets and liabilities. The Auditor General in 1955 allocated 54.39% (₱704,220.05) of the total value to Zamboanga del Norte, establishing its claim against Zamboanga City.
Executive Ruling and Initial Deductions
A 1959 Executive Secretary ruling recognized Zamboanga del Norte’s vested co-ownership pro-indiviso of the 50 properties and revoked a 1951 Cabinet resolution granting the properties to Zamboanga City for ₱1.00. The Secretary of Finance then ordered quarterly deductions totalling ₱57,373.46 from the city’s internal revenue allotments, credited toward the ₱704,220.05 debt.
Enactment of RA 3039 and Controversy
Republic Act No. 3039 (1961) amended CA 39 to transfer free of charge all former provincial properties to Zamboanga City. The Secretary of Finance halted further deductions and directed reimbursement of the ₱57,373.46 to the city. Zamboanga del Norte had reimbursed ₱43,030.11 before filing suit.
Proceedings in Lower Court and Initial Judgment
Zamboanga del Norte sought declaratory relief and injunction, alleging deprivation of property without due process and just compensation under the 1935 Constitution. The trial court (1963) declared RA 3039 unconstitutional insofar as it deprived patrimonial properties, ordered the city to pay ₱704,220.05 in quarterly installments, and mandated the province to deed the properties upon full payment. A post-judgment motion granted lump-sum payment with interest, which the Supreme Court later reviewed.
Nature of Municipal Property: Public vs. Patrimonial
The Court applied the rule that municipal property held for public or governmental purposes is public property subject to congressional control, while patrimonial property (held in a private capacity) cannot be taken without due process and just compensation. The character depends on the intended and actual use.
Application of Civil Code Classification
Under Civil Code Arts. 423–424, public use property includes streets, squares, fountains, public works for free and indiscriminate use; all other municipal lands are patrimonial. By this test, only the two high-school playground lots qualified as public; the remainder were patrimonial, since institutional sites (capitol, schools, hospital) did not constitute free, public works.
Application of Municipal Corporations Law
By municipal-corporation principles, lands devoted to governmental functions (administration, education, health) are public. Precedents held that school sites, courthouses, markets, etc., are public property beyond attachment. Adopting this norm, 24 of the 50 parcels (capitol site, school
Case Syllabus (G.R. No. 183239)
Background and Legislative Framework
- Prior to chartered‐city status, the Municipality of Zamboanga served as the capital of Zamboanga Province.
- Commonwealth Act No. 39 (October 12, 1936) converted the Municipality into Zamboanga City.
- Section 50 of CA 39 mandated that “buildings and properties which the province shall abandon upon the transfer of the capital … will be acquired and paid for by the City of Zamboanga at a price to be fixed by the Auditor General.”
- 1945: Provincial capital moved to Dipolog; 1948 (RA 286): capital established in Molave.
- May 26, 1949: Auditor General’s Appraisal Committee fixed the value of 50 lots and improvements at ₱1,294,241.00.
- June 6, 1952 (RA 711): Division of old Zamboanga Province into Zamboanga del Norte and Zamboanga del Sur; assets apportioned 54.39% to del Norte.
- March 17, 1959: Executive Secretary ruling vested in Zamboanga del Norte a pro‐indiviso interest in the CA 39 properties, payable by Zamboanga City.
- Late 1959–1960: Secretary of Finance ordered 25% quarterly IRA deductions from the City, totaling ₱57,373.46 credited to Zamboanga del Norte.
- June 17, 1961 (RA 3039): Amended CA 39, Sec. 50, transferring all former provincial properties to Zamboanga City free of charge; forced return of the ₱57,373.46.
Facts of the Case
- Fifty (50) Torrens‐titled lots and buildings in Zamboanga City remained titled in the name of the former Province of Zamboanga.
- Uses as of record:
• 1 lot – Capitol site
• 3 lots – School sites
• 3 lots – Hospital sites
• 3 lots – Leprosarium
• 1 lot – Curuan School
• 1 lot – Trade School
• 2 lots – Burleigh School
• 2 lots – High School playground
• 9 lots – Burleigh residences/grounds
• 1 lot – Hydro‐electric site (Magay)
• 1 lot – San Roque
• 23 lots – Vacant
Procedural History
- March 5, 1962: Zamboanga del Norte filed for declaratory relief and preliminary mandatory injunction in the CFI of Zamboanga del Norte:
• Declare RA 3039 unconstitutional
• Protect its rights under CA 39
• Enjoin further reimbursements to Zamboanga City
• Compel quarterly payments of the remaining ₱704,220.05 - June 4, 1962: CFI issued preliminary man