Title
Social Justice Society Officers vs. Lim
Case
G.R. No. 187836
Decision Date
Nov 25, 2014
Manila ordinance allowing oil depots in Pandacan declared void, violating residents' rights to health, safety, and environment, and overriding prior judicial decision.

Case Summary (G.R. No. 187836)

Key Dates and Applicable Law

Decision context governed by the 1987 Philippine Constitution (decision in 2014). Relevant local ordinances: Ordinance No. 8027 (reclassifying Pandacan from Industrial II to Commercial I, 2001), Ordinance No. 8119 (Manila Comprehensive Land Use Plan and Zoning Regulations, 2006), Ordinance No. 8187 (2009, creating I‑2 and I‑3 zones), and Ordinance No. 8283 (2012, amending 8187 by reclassifying oil depot area to C3/MXD and providing until January 2016 for relocation). National statutes and instruments referenced include the Local Government Code (RA 7160), City Charter (RA 409), the Department of Energy MOA (2001) and MOU (2002) with the oil companies, and various environmental statutes and international instruments invoked by petitioners.

Factual Background — Pandacan Terminals and Local Setting

Pandacan is a densely populated district on the banks of the Pasig River; historically an industrial area where major oil companies located distribution terminals. The Pandacan terminals store large volumes of petroleum products and historically supply a substantial portion of Metro Manila’s fuel needs. The area contains residences, schools, institutions and is proximate to Malacañang Palace.

MOA and MOU between DOE, City and Oil Companies

On 12 October 2001 the Department of Energy and the major oil companies executed a MOA to study relocation and prepare a Master Plan. A June 2002 MOU between the City and the oil companies committed to a scale‑down program, decommissioning of tanks, creation of buffer zones and cooperation to address security/environmental concerns; the MOU and ratifying resolutions limited extensions of business permits and specified dates for compliance.

Prior Supreme Court Ruling (G.R. No. 156052) and Its Effect

In Social Justice Society v. Atienza (G.R. No. 156052), the Court (First Division and resolution) declared Ordinance No. 8027 constitutional, found that removal of the Pandacan terminals was necessary to safeguard life, security and safety, and ordered enforcement and relocation oversight by the city mayor. The Court held that the mayor had a ministerial duty to enforce Ordinance No. 8027 while it remained in effect and that the MOU‑related extensions had expired.

Municipal Legislative Actions After G.R. No. 156052

After the Supreme Court’s decision, the Sangguniang Panlungsod later enacted Ordinance No. 8187 (2009) creating I‑2 and I‑3 industrial zones and expressly repealing Ordinance No. 8027 and Section 23 of Ordinance No. 8119 so as to allow pollutive and heavy industries, including petroleum refineries and oil depots, to operate in Pandacan. Subsequent composition changes in the City Council produced Ordinance No. 8283 (2012) which excluded the specific oil depot area from heavy industrial classification and gave oil companies until end of January 2016 to relocate; the mayor vetoed but the veto was overridden.

Petitions, Reliefs Sought and Core Legal Questions

Petitioners sought prohibition, mandamus and certiorari to enjoin enforcement of Ordinance No. 8187 (and declare it null and void) on grounds that it contravenes the prior Supreme Court ruling, violates constitutional rights to health and a balanced and healthful ecology (Arts. II, §§ 15–16), exceeds police‑power limits, and infringes environmental statutes and international obligations. Core questions: whether Ordinance No. 8187 is a valid exercise of police power consistent with the Constitution and whether petitioners had proper remedy and standing to seek relief directly from the Supreme Court.

Respondents’ and Intervenors’ Positions

Respondents defended the ordinance as a valid legislative exercise (Sangguniang Panlungsod authority to reclassify land under RA 7160), argued procedural defects in the petitions (improper remedy, violation of hierarchy of courts, forum shopping), and invoked presumption of constitutionality. Intervening oil companies urged dismissal based on procedural grounds and denied that continued presence of depots posed an intolerable risk, asserting implementation of safety, security and scaling‑down measures (decommissioning tanks, buffer zones, QRA studies) and economic necessity.

Procedural Issues — Remedy, Hierarchy of Courts and Rules for Environmental Cases

The Court explained that although Rule 65 ordinarily requires absence of adequate remedy and the doctrine of hierarchy of courts generally applies, the petitions presented issues of transcendental public importance and therefore justified relaxation of procedural technicalities. The Court found the Rules of Procedure for Environmental Cases and remedies at lower courts not adequate to resolve the broad constitutional issue in the present consolidated petitions, given the prior Supreme Court resolution and the practical consequences for public safety.

Standing, Forum Shopping and Verification Issues

The Court held petitioners had standing: the controversy concerned public rights implicating life, safety and welfare of Manila residents, and petitioners were residents and organizations with direct interest; prior recognition of SJS’ standing in G.R. No. 156052 supported this. The Court rejected forum‑shopping and res judicata objections because the present petitions were a sequitur to the earlier decision and subsequent municipal legislations changed the legal landscape; the Court also found the notarization/identification in the verification documents sufficient under applicable notarial rules.

Substantive Legal Analysis — Police Power, Life and Safety vs. Economic Interests

Applying the 1987 Constitution and prior jurisprudence, the Court reaffirmed the primacy of the right to life and public safety over private property rights. Where police power is invoked, a concurrence of a lawful subject (public welfare/good) and lawful method (reasonable regulation) is required. The Court emphasized that Ordinance No. 8027 had been upheld as enacted to protect life and security in light of terrorism risks and the dense urban environment; the presence of large volumes of highly flammable and volatile petroleum products in a densely populated area constituted a continuing threat.

Assessment of Oil Companies’ Safety Measures and "Scaling‑Down" Arguments

The Court found the safety and scaling‑down measures claimed by the oil companies insufficient to eliminate the risks that motivated Ordinance No. 8027. The Court noted that even reduced inventories or enhanced safety features do not negate the fundamental danger posed by oil depots in a dense population center or the continuing perception of them as potential terrorist targets; statistical improbability of attack or reliance on probability theories cannot displace the constitutional duty to protect life.

Legislative Repeal, Reclassification and Limits of Local Legislative Discretion

Although local legislative bodies possess authority to reclassify land and amend prior ordinances, that power is not unfettered when reclassification undermines constitutionally protected rights or direct Supreme Court mandates rooted in public safety. The Court declined to accept that political changes in the City Council could justify a legislative decision that effectively nullifies a prior ordinance whose constitutionality was judicially affirmed to protect life and safety.

Court’s Holdings and Orders

The Supreme Court declared Ordinance No. 8187 unconstitutional and invalid insofar as it permits the continued stay of the Pandacan oil terminals. The incumbent Mayor of Manila was ordered to cease and desist from enforcing Ordinance No. 8187 in relation to the terminals and, in coordination with appropriate agencies and parties, to oversee relocation and transfer of the oil terminals out of Pandacan. The oil company intervenors (Chevron, Shell, Petron) were ordered, within a non‑extendible period of forty‑five (45) days, to submit to RTC Branch 39, Manila an updated comprehensive relocation plan and schedule; relocation was to be completed not later than six (6) months from su

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