Title
Umali vs. City of Naga
Case
G.R. No. L-6815
Decision Date
Dec 29, 1954
Petitioners challenged a city ordinance increasing market lot rentals as excessive and unconstitutional; courts upheld it as reasonable and validly enacted.

Case Summary (G.R. No. L-6815)

Background of the Case

The case arose when the petitioners filed a special civil action in the Court of First Instance of Camarines Sur, seeking a writ of preliminary injunction and subsequently a writ of prohibition to prevent the City of Naga and its Treasurer from enforcing an ordinance that increased rental rates for market lots. The petitioners contended that the increase was excessive, oppressive, and unconstitutional, and they stressed that the municipal board acted with grave abuse of discretion by adopting the ordinance without adhering to the procedural requirements of the city charter.

Allegations of the Petitioners

The petitioners argued that the ordinance, enacted on December 31, 1948, took effect on the following day, thereby violating the city charter’s stipulation that an ordinance must be in effect at least ten days after its passage. They claimed the increase was unreasonable given the current market conditions and the nature of the properties affected. Moreover, they sought a mandamus to compel the respondents to accept rental payments that they had consigned to the court, as well as other equitable relief.

Respondents' Defense

The respondents responded that the municipal board was authorized under Section 15, paragraph a, of Republic Act No. 305 to enact the ordinance. They asserted that the rental rates set forth were not excessive considering the improvements made to the lots in question, including the provision of concrete pavements and roofing. They also contended that some petitioners had already paid the new rates for a subsequent month and were thus barred from disputing the ordinance's validity. The respondents emphasized that the petitioners had alternative legal recourse available, including an appeal to the Secretary of the Interior, who could review and approve or disapprove municipal ordinances.

Judicial Findings on Ordinance Validity

After careful consideration, the Court of First Instance dismissed the petition, determining that the ordinance was not unreasonable or oppressive. It concluded that the municipal board's determination of rental rates fell within its authority and discretion, and courts ought not to interfere in such matters unless the actions of the board were deemed ultra vires or patently unreasonable. The court noted that for properties owned by the city, the rental rates were established considering the context of local property values and market standards.

Comparison of Rental Rates

The decision briefly addressed comparisons between the petitioners’ rents and those paid for similar properties nea

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