Title
San Buenaventura vs. Municipality of San Jose
Case
G.R. No. L-19309
Decision Date
Jan 30, 1965
A petitioner challenged municipal resolutions extending fishery zone leases without public bidding; the Supreme Court ruled the extensions illegal, voiding the resolutions.

Case Summary (G.R. No. L-19309)

Factual Background

Vicente San Buenaventura, a resident of San Jose, Camarines Sur, filed a petition for declaratory relief against the Municipality of San Jose and two lessees, Maximino Abragan and Stanley Pena. The petition challenged the validity of three resolutions from the Municipal Council that extended and assigned fishing rights over certain fishery zones without public bidding, which the petitioner argued were unlawful and prejudicial to his interests in acquiring leasing rights.

Resolution of the Municipal Council

The Municipal Council of San Jose had originally awarded Maximino Abragan the lease for fishery zones A, B, and C on August 7, 1959, based on a public bidding that declared him the highest bidder for the privilege to catch "bangus" fry until December 31, 1959. Subsequently, without conducting a new public bidding, the council extended Abragan's lease by six months and later approved his assignment of lease rights to Stanley Pena.

Legal Claims

San Buenaventura's petition claimed that these resolutions were illegal for failing to adhere to the required legal procedures—as stipulated in the Revised Administrative Code—such as the necessity of holding a public bidding before extending leases beyond their expiration or assigning rights to third parties. The petitioner contended that the resolutions were null and void as they circumvented statutory requirements for competitive bidding and proper authorizations.

Respondents' Argument

The respondents maintained that Resolution No. 75 merely fixed the lease's term that had initially been awarded, and claimed that Resolutions Nos. 79 and 80 followed lawful procedures, as they had been approved by the Provincial Board of Camarines Sur.

Court’s Findings

The Trial Court ruled in favor of Vicente San Buenaventura, declaring Resolutions Nos. 75 and 80 null and void, primarily because they had extended the lease and assigned rights without conducting a public bidding or obtaining necessary approvals per legislative requirements. The court emphasized that extending a lease following an auction period should involve another round of bidding to uphold public interest and transparency.

Core Legal Principles

The relevant sections of Act No. 4003 delineate that the Municipal Council has the authority to grant fishery leases but stipulate that any such grant must occur through public bidding. The Court highlighted that a lease lasting beyond the initial fixed period requires re-evaluation through competitive bidding, which was blatantly overlooked in this matter.

Appeal and Arguments

Respondents appealed the lower court's decision, arguing procedural faults in the petition process and contending that the failure to notify the Provincial Fiscal should have warranted dismissal of the petition. They cited Rule 66, Section 5 of the Rules of Court, which governs the notification process for act

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