SECTION 13.

NAMING OF LOCAL GOVERNMENT UNITS AND PUBLIC PLACES, STREETS, AND

STRUCTURES

WHO MAY CHANGE NAMES IN:

I. PROVINCES:
Sangguniang panlalawigan, in consultation with Philippine Historical Commission
(PHC) may change the name of the following within their territorial jurisdiction: (CR-PHA)

a. Component cities and municipalities, upon recommendation of sanggunian

concerned
b. Provincial roads, avenues, boulevards, thoroughfares, and bridges
c. Public vocational or technical schools and other post secondary and tertiary schools
d. Provincial hospital, health centers and other health facilities
e. Any other public place or building owned by provincial government

II. HIGHLY URBANIZED CITIES AND COMPONENT CITIES NOT ALLOWED BY CHARTER
TO VOTE PROVINCIAL ELECTIVE OFFICIALS:

Sanggunians of: 1) Highly urbanized cities; 2) Component cities whose charters

prohibit their votes from voting for provincial elective officials, in consultation with
Philippine Historical Commission (PHC) may change the name of the following within their
territorial jurisdiction (City BR-SHA)

a. City barangays, upon recommendation of sanggunian concerned

b. City roads, avenues, boulevards, thoroughfares, and bridges
c. Public elementary, secondary, and vocational or technical schools, community colleges
and non-chartered colleges
d. City hospitals, health centers, and other facilities
e. Any other public place or building owned by city government

III. COMPONENT CITIES AND MUNICIPALITIES:

Sanggunian of component cities and municipalities, in consultation with Philippine

Historical Commission (PHC) may change the name of the following within their territorial
jurisdiction(Municipal BR-SHA)

a. City and municipal barangays, upon recommendation of sanggunian concerned

b. City, municipal and barangay roads, avenues, boulevards, thoroughfares, and bridges
c. City and municipal Public elementary, secondary, and vocational or technical schools,
community colleges and non-chartered colleges
d. City and municipal hospitals health centers, and other facilities
e. Any other public place or building owned by municipal government

MUST ALWAYS be done in consultation with the PHILIPPINE HISTORICAL COMMISSION (PHC)

LIMITATIONS: (LJ-OU)
a. LGUs, institutions, places or buildings, SHALL NOT be named after a living person
b. Change of name must be with justifiable reasons
c. Change of name not oftener than once every ten years
d. Where name of LGU, public place, street or structure is with Historical, Cultural, or
Ethnic significance , change shall be made only by unanimous vote of the sanggunian
concerned and in consultation with the PHC

Change of name of the following shall be made ONLY upon recommendation of following
concerned:
 a. Public school- local school board
b. Public hospital, health center, and other health facilities- local health board
c. Local government unit- upon RATIFICATION in a plebiscite conducted for the purpose in
the political unit directly affected

In any case of change of name, the following shall be notified: (ORB)

a. Office of the president
b. Representative of legislative district concerned
c. Bureau of posts

SECTION 14. BEGINNING OF CORPORATE EXISTENCE

GENERAL RULE: corporate existence of new LGU created SHALL commence upon ELECTION
and QUALIFICATION of its chief executive and a majority of the members of its sanggunian
EXCEPTION: law or ordinance creating LGU fixes some other time from which corporate
existence shall commence
Legal existence is different from corporate existence! Legal existence of a municipal
corporation is to be determined by law creating it while corporate existence shall commence
based on the rule given above

CASE:
o Mejia v. Balolong City of Dagupan came into existence as LEGAL entity upon approval
of the law creating it. However, before the same can act as a PUBLIC CORPORATION or
JURIDICAL entity, it is necessary that the officials thereof be appointed or elected in order
that it may transact business

SECTION 15. POLITICAL AND CORPORATE NATURE OF LOCAL GOVERNMENT UNIT

LOCAL GOVERNMENT created or recognized under this code has DUAL personality:
1. Body politic/ subdivision or agency of government
2. Corporate entity

As body politic, it exercises powers as a political subdivision of National Government; powers

referred to are governmental powers and duties
As a corporate entity, it represents the inhabitants of its territory; is on the same plane as any
private corporation

SECTION 16. GENERAL WELFARE

Every LGU shall:

1. Exercise powers expressly granted, necessarily implied, necessary, appropriate or
incidental for its efficient and effective governance
2. Exercise powers which are essential to promotion of general welfare
3. Within respective territorial jurisdictions, they shall: (EPEE- IPMP)

- Ensure and support preservation and enrichment of culture

- Promote health and safety
- Enhance the right of the people to a balanced ecology
- Encourage and support the development of appropriate and self- reliant
scientific and technological capabilities
- Improve public morals, enhance economic prosperity and social justice
- Promote full employment among their residents
- Maintain peace and order
- Preserve the comfort and convenience of their inhabitants
 General welfare clause- empowers LGUs to enact and implement measures for the general well-
being of their inhabitants
Basis of general welfare clause: POLICE POWER
Powers of LGU are not absolute and are subject to limitations laid down by law and Constitution

CASES:
o US v. ESPIRITUSANTO The municipality of Malabon passed an ordinance prohibiting
the game of jueteng within their territory. Defendant was charged with violation of such
ordinance and contended that said ordinance is contrary to Municipal Code. SC held that
the municipality acted within its powers when it enacted an ordinance prohibiting jueteng
within its limits; purpose of such is to provide against the evils of gambling

o US v. POMPEYA Pompeya was charged with violation of an ordinance requiring able

bodied male residents of municipality between 18-50 to assist in the apprehension of
bandits and thieves. Defendant argued that ordinance is unconstitutional because it is
repugnant to Organic Act which guarantees liberty of citizens. SC held that since it is the
ancient obligation of the individual to assist in the protection of peace and order in
community, residents of a municipality may be compelled to render civil service

o US v. SALAVERIA Municipality of Orion, Bataan enacted ordinance which prohibited

playing of panguingue on certain days. Accuse, a justice of peace, was caught violating
such ordinance. Accused contended on appeal that municipal ordinance is invalid. SC
held that panguingue is still proper subject of regulation by the municipality acting under
delegated power whose laudable intention is to impose public morals and promote
prosperity of the people

o PEOPLE v.GABRIEL City of Manila passed an ordinance prohibiting bells or criers or

other means of attracting buyers and bidders by use of noise at or near places of auction
or sale on specified time and places. Defendant was accused of violation of such. He
appealed contending that said ordinance is unconstitutional for being discriminatory. SC
held that the regulation of business affairs of the city is a matter of discretion of the
council acting under police power

o RECREATION v. CITY OF MANILA City of Manila passed ordinance for regulation of

operation and maintenance of slot machines in certain areas in Manila. Petitioner prayed
for preliminary injuction against the officials. SC held that the Municipal Board of Manila
can pass an ordinance regulating such since the slots are inimical to general welfare of
the population and such ordinance is a lawful exercise of police power

o PEOPLE v. SOLON Municipal Board of City of Cebu passed an ordinance designed to

eliminate animal waste in city streets and other public places. SC held that such
ordinance is a measure designed to promote health and well being of the residents and is
thus, valid.

o PEOPLE v. GOZO Gozo was charged with violation of ordinance of Olongapo,

Zambales requiring a permit from the municipal mayor for construction of buildings as
well as any modification thereof. SC held that the City of Olongapo can require building
permits located inside the US Naval Reservation under the general welfare clause which
is wide, well high, all embracing, covering every aspect of public health, morals, safety
and well- being and good order of the community
 o SAMSON v. MAYOR OF BACOLOD Petitioners, movie operators questioned the
validity of ordinance which prohibited admission in an amusement place of two or more
persons with one ticket. SC held that such prohibition is valid as it is in the interest of
preventing fraud in the collection of municipal taxes and in accordance with public safety
and general welfare

o ORTIGAS & CO., v. FEATI BANK Municipal council of Mandaluyong declared certain
lots sold by petitioner to spouses Angeles as part of the commercial and industrial zone
of the municipality. SC held that although the exercise of the municipalitys general
welfare powers is subordinate when such exercise thereof will conflict with vested rights
arising from contract,in this case, police power is superior to contractual rights

o TANO v. SOCRATES An ordinance was passed banning shipment of all live fish and
lobster outside Puerto Prinsesa City for a certain period Petitioners were charged for
violation of such. SC held that LGUs may enact police power measures pursuant to the
general welfare clause

o MMDA v. BEL-AIR Petitioner ordered the opening of Neptune street in Bel-Air village
to public vehicular traffic. Such was opposed by respondent. SC held that MMDA has no
police or legislative powers to enact ordinances for the general welfare. It has no
authority to order opening of the street which is a private subdivision road and cause
demolition of its perimeter walls

o LINA v. PANO Mayor of San Pedro, Laguna denied the giving of a Mayors permit to
an agent of PCSO who was asking permission for the operation of lotto. Denial was
based on the ground that an ordinance was previously passed preventing lotto in the said
municipality. SC held that since Congress has allowed the PCSO to operate lottery, the
provinces municipal council cannot nullify the exercise of said authority by preventing
something already allowed by Congress

SECTION 17. BASIC SERVICES AND FACILITIES.

LGUS shall: (ECDE)

1. Endeavor to be self- reliant
2. Continue to exercise the powers and discharge the duties and functions currently vested
upon them
3. Discharge the functions and responsibilities of national agencies and offices devolved to
them
4. Exercise such other powers and discharge such other functions and responsibilities as
are necessary, appropriate or incidental to efficient or effective provision of basic services
and facilities
Table of basic services provided in a separate paper

RULES CONCERNING BASIC SERVICES AND FACILITIES:

o Public works and infrastructure projects and other facilities, programs and
services funded by the National Government under General Appropriations Act,
other special laws, pertinent EOs, or those wholly or partially funded by foreign
sources are NOT covered by this section, except where the LGU concerned us duly
designated as the implementing agency for such project, services, etc.

o Designs plans, specifications, testing of materials, and the procurement of equipment

and materials from both foreign and local sources necessary for the provision of the
foregoing services and facilities shall be undertaken by the local government unit
concerned, based on national policies, standards and guidelines
 o National agencies or offices concerned shall devolve (act by which the national
government confers power and authority upon the various local government units to
perform specific functions and responsibilities) to local government units the responsibility
for the provision of basic services and facilities enumerated in this Section within six (6)
months after the effectivity of this Code

o National government or the next higher level of local government unit may provide or
augment the basic services and facilities assigned to a lower level of local government
unit when such services or facilities are not made available or, if made available, are
inadequate to meet the requirements of its inhabitants

o The basic services and facilities hereinabove enumerated shall be funded from the
share of local government units in the proceeds of national taxes and other local
revenues and funding support from the national government, its instrumentalities
and government-owned or -controlled corporations which are tasked by law to establish
and maintain such services or facilities

o Any fund or resource available for the use of local government units shall be first
allocated for the provision of basic services or facilities unless otherwise provided in
this Code

o Regional offices of national agencies or offices whose functions are devolved to local
government units as provided herein shall be phased out within one (1) year from the
approval of this Code. Said national agencies and offices may establish such field units
as may be necessary for monitoring purposes and providing technical assistance to local
government units. The properties, equipment, and other assets of these regional offices
shall be distributed to the local government units in the region in accordance with the
rules and regulations issued by the oversight committee created under this Code

o Personnel of said national agencies or offices shall be absorbed by the local

government units to which they belong or in whose areas they are assigned to the
extent that it is administratively viable as determined by the said oversight
committee: Provided, That the rights accorded to such personnel pursuant to civil
service law, rules and regulations shall not be impaired: Provided, Further, That regional
directors who are career executive service officers and other officers of similar rank in the
said regional offices who cannot be absorbed by the local government unit shall be
retained by the national government, without any diminution of rank, salary or tenure

o To ensure the active participation of the private sector in local governance, local
government units may, by ordinance, sell, lease, encumber, or otherwise dispose of
public economic enterprises owned by them in their proprietary capacity

DEVOLUTION : include the transfer to local government units of the records, equipment, and
other assets and personnel of national agencies and offices corresponding to the devolved
powers, functions, and responsibilities

SECTION 18. POWER TO GENERATE AND APPLY RESOURCES

LGUs shall: (:PC- JEA)

 1. Power and authority to establish an organization that shall be responsible for the
efficient and effective implementation of their development plans, program objectives and
priorities
2. Create their own sources of revenue and to levy taxes, fees, and charges which
shall accrue exclusively for their use and disposition and which shall be retained by them
3. Have just share in national taxes which shall be automatically and directly released to
them without need of any further action;
4. to have an equitable share in the proceeds from the utilization and development of
the national wealth and resources within their respective territorial jurisdictions
including sharing the same with the inhabitants by way of direct benefits
5. acquire, develop, lease, encumber, alienate, or otherwise dispose of real or
personal property held by them in their proprietary capacity and to apply their
resources and assets for productive, developmental, or welfare purposes, in the
exercise or furtherance of their governmental or proprietary powers and functions and
thereby ensure their development into self-reliant communities and active participants in
the attainment of national goals

SECTION 19. EMINENT DOMAIN

RULE: A local government unit may, through its chief executive and acting pursuant to an
ordinance, exercise the power of eminent domain for public use, or purpose, or welfare for the
benefit of the poor and the landless, upon payment of just compensation, pursuant to the
provisions of the Constitution and pertinent laws

CONDITIONS:
1. Valid and definite offer has been made to the owner and offer was not accepted
2. Local government unit may immediately take possession of the property upon the
filing of the expropriation proceedings and upon making a deposit with the proper
court of at least fifteen percent (15%) of the fair market value of the property based
on the current tax declaration of the property to be expropriated
3. Amount to be paid for the expropriated property shall be determined by the proper
court, based on the fair market value at the time of the taking of the property

Requisites for the exercise of eminent domain:

o LGU acts through chief executive
o LGU acts pursuant to an ordinance
o The exercise must be for public use, purpose or welfare for the benefit of poor and
landless
o There must be payment of just compensation, based on fair market value
Exercise of eminent domain is pursuant to provisions of constitution and pertinent laws

CASES
o Municipality of Daet v. CA Petitioner filed an expropriation case against private
respondent invoking Presidential Decree No. 42, petitioner argued that the just
compensation must be limited to the assessed value of the property. SC held that the
assessed value of a property cannot be made the sole basis of just compensation since it
constitutes only a percentage of the fair market value

o Moday v. CA The issue was whether a municipality may expropriate private property
by virtue of a municipal resolution which was disapproved by the Sangguniang
Panlalawigan. SC held that that the Sangguniang Panlalawigan is without authority to
disapprove a municipal resolution authorizing the Mayor to initiate expropriation
proceedings since a municipality has the power to exercise right of eminent domain
 o Municipality of Paranaque v. VM Realty Corp. Pursuant to a Sangguniang Bayan
Resolution, the petitioner filed an expropriation case against respondent . The SC held
that the power of eminent domain by LGUs may be effected only by ordinance, not by
mere resolution
o Barangay Matictic v. Elbinias The case in a expropriation proceeding filed by the
Municipality of Norzagaray which the public respondent judge dismissed on the ground
that at the time the original complaint was filed, the municipality has not yet obtained the
requisite authority from Department Head or Office of the President. SC held that it is the
municipality which filed the expropriation case who is the proper party to appeal and not
the barangay which is a different political entity by itself and cannot continue the
expropriation case.

o Province of Camarines Sur v. CA the SC held that neither the LGC nor CARL requires
a local government unit to secure the approval of the Dept. of Agrarian Reform as a
condition precedent to institute the necessary expropriation proceedings

o City of Cebu v. Dedamo Petitioner filed a complaint for eminent domain against
respondent spouses alleging that it needed the property in question for a public purpose.
The SC held that Section 19 of RA 7160 expressly provides that just compensation shall
be determined as of the time of actual taking and not as of the date of the filing of the
complaint

SECTION 20. RECLASSIFICATION OF LANDS

Who may reclassify lands? A city or municipality

How is reclassification done?

1. Through an ordinance passed by the Sangguian
2. After conducting public hearings for the purpose
3. Sanggunian shall provide for the manner of utilization or disposition

What kinds of lands may be reclassified? Agricultural lands

When can agricultural lands be reclassified?

1. When the land ceases to be economically feasible and sound for
agricultural purposes as determined by the Department of Agriculture
2. Where the land have substantially greater economical value for residential,
commercial or industrial purposes, as determined by the Sanggunian
concerned

What are the limitations to this?

1. Such reclassification shall be limited only to the following percentage of the
TOTAL agricultural land area at the time of the passage of the ordinance
a. Highly urbanized and independent component cities: 15 %
b. Component cities and first to third class municipalities: 10%
c. Fourth to sixth class municipalities: 5%
2. Agricultural lands distributed to agrarian reform beneficiaries pursuant to CARL
shall not be affected by the said reclassification and the conversion of such lands
into other purposes

When can municipalities or cities reclassify lands beyond the limit stated above? When the
President authorize such, subject to the following rules:
1. President may authorize such when public interest requires
 2. Upon recommendation of NEDA

The LGU shall, in conformity with existing laws continue to prepare their respective
comprehensive land use plans enacted through zoning ordinances which shall be the
primary bases for the future use of land resources, provided that the requirements for food
production, human settlements, and industrial expansion shall be taken into consideration
in the preparation of such plans

When approval by a national agency is required for reclassification, such approval shall not
be unreasonably withheld. Failure to act on a proper and complete application for
reclassification within 3 months from receipt of the same shall be deemed as approval
thereof

CASES:
o Patalinghug v. CA the City Council of Davao enacted a zoning ordinance which
provides that the C-2 district shall be dominantly for commercial and compatible
industrial uses, among which are funeral parlors and memorial homes with adequate of
street parking space and provided that they shall be established not less than 50 meters
from any residential structure, churches and other institutional buildings. SC held that
the declaration of the City Council that the C-2 district shall be classified as a commercial
zone is a valid exercise of police power to promote the good order and general welfare
of the people in the locality

o Fortich v. Corona the SC held that LGU need not obtain the approval of the
Department of Agrarian Reform to convert or reclassify lands from agricultural to non-
agricultural use

SECTION 21. CLOSURE AND OPENING OF ROADS

Who may order closure and opening of roads? Local government unit

How is it done?
1. Pursuant to an ordinance
2. Closure and opening of local road, alley, park or square falling within their jurisdiction
may either be temporary or permanent

What are the limitations to this?

1. In case of permanent closure, ordinance must be approved by at least 2/3 of all the
members of the sanggunian
2. When necessary, adequate substitute for the public facility that is subject to closure shall
be provided

RULES ON PERMANENT CLOSURE:

o No place or way or part thereof shall be permanently closed without making provisions
for maintenance of public safety therein
o Property permanently withdrawn from public use may be used or conveyed for any
purpose for which other real property belonging to the LGU concerned may be lawfully
used or conveyed
o No freedom park shall be closed permanently without provision for its transfer or
relocation to a new site
o It is a condition that closure should be for the sole purpose of withdrawing the
public property for public use, thus will now become patrimonial
 o It is also requirement that the road, alley, park or square be first declared as property
no longer intended for public use or withdrawn from public use before it can be
used for any other purpose

RULES ON TEMPORARY CLOSURE:

o What can be temporarily closed? Any national or local road, alley, park or square
o When can this be done? During actual emergency, fiesta celebrations, public rallies,
agricultural or industrial fairs, undertaking of public works and highways,
telecommunications and waterwork projects, duration of which shall be specified by
the local chief executive concerned in a written order
o Limitations:
a. no national or local road, alley, park or square shall be temporarily closed for
athletic, cultural or civic activities not officially sponsored, recognized or
approved by the LGU
b. city, municipality or barangay may, by duly enacted ordinance, temporarily
close and regulate the use of local streets, roads, etc. where shopping malls,
Sunday, flea or night markets or shopping areas may be established or
where goods, etc. may be sold or dispensed to the general market

CASES on closure of roads:

o Mun. of Cavite v. Rojas SC held that the municipality had no power to withdraw an
integral portion of its public plaza from public use and lease such since the property in
question is outside the commerce of men

o Calapan Lumber v. Community Sawmill SC held that the resolution of the provincial
board granting exclusive use for 20 yrs of a part of provincial road to the lumber company
who undertook the construction of such road are ultra vires, since provincial roads are for
the use of all people living in the area and cannot be granted to one for its exclusive use

o Cebu Oxygen and Acetylene v. Bercilles SC held that the City Charter of Cebu
empowers the city to withdraw a city road from public use and therefore, after such
valid withdrawal, it becomes patrimonial property and may be a valid object of a
contract of sale

o Macasiano v. Diokno Municipality of Paranaque passed an ordinance which authorized

the closure of certain streets and the establishment of a flea market thereon. It then
entered into contract for the operation, maintenance, and management of flea market.
Respondent contended that the ordinance is invalid for the roads are property of public
dominion. The SC held that properties of public dominion devoted for public use and
made available to the public in general are outside the commerce of men and cannot be
disposed of or leased by the LGU to private persons. In construing the provisions of
the LGC and the Civil Code, the following are to be recognized:
1. LGU must be given specific authority by Congress to close roads
2. Due process (just compensation) should be first complied with
before closure can be made
3. Closure should be for the sole purpose of withdrawing the property
for public use when circumstance indicate that such is no longer
necessary for public use
4. It is only when it is already withdrawn from public use that it
becomes patrimonial and thus can be used and conveyed for other
purpose
 CASES on opening of roads:
1. Sangalang v. IAC SC held that the opening of Orbit Street to traffic by the Mayor was
warranted by the demands of the common good and is a valid exercise of police power

2. Pilapil v. CA SC held that a municipality has the unassailable authority to (a) prepare
and adopt a land use map; (b) promulgate a zoning ordinance which may, among other
things, consider the municipal roads to be constructed, maintained, improved or repaired
and (c) close any municipal road

SECTION 22. CORPORATE POWERS

LGUs, as a corporation, shall have the following powers: ( CS- CA-EE)

1. To have continuous succession in its corporate name
2. To sue and be sued
3. To have a use a corporate seal
4. To acquire and convey real or personal property
5. To enter into contracts
6. To exercise such other powers as are granted to corporations, subject to limitations
provided in this Code and other laws

Rules on CORPORATE SEALS:

1. LGU may continue using, modify, or change their existing corporate seals
2. Newly established LGUs or those without corporate seals may create their own which
shall be registered with DILG
3. Change of corporate seals by LGUs shall also be registered with DILG

Rules on ENTERING CONTRACTS:

o No contract may be entered into by the local chief executive in behalf of LGU without
prior authorization by the sanggunian concerned
o Legible copy of the contract shall be posted at a conspicuous place in the provincial
capitol or the city, municipal or barangay hall

LGUs shall enjoy full autonomy in the exercise of their proprietary functions and in the
management of their economic enterprises, subject to the limitations provided in this Code
and other applicable laws

Doctrine of ESTOPPEL cannot be applied as against a municipal corporation to validate a

contract, which it has no power to make, or which it is authorized to make only under prescribed
mode or manner, although corporation has accepted benefits and the other party has fully
performed his obligation
A consent decree, in which officials of a municipality assumes obligation not authorized by law, is
null and void
A municipal corporation or mere govt agency like the City of Manila may be made to pay interest
for taxes illegally collected
Municipal corporations may be held liable for the back pay and wages of employees or laborers
illegally separated from service

CASES:
o Palma v. Graciano Appellant Palma claims damages against the Provincial
Government who caused the information to be filed against him through bad faith. The
SC held that the Province of Cebu and the City of Cebu are not liable for the acts of their
officers except when and only up to the extent that they have acted with authority and in
conformity with the requirements of law
 o Bacolod City v. Enriquez The SC held that since Bacolod City has not been made a
party to the case and had no opportunity to protect its rights, it cannot be compelled to
pay back salaries of reinstated workers

o Mendoza v. De Leon plaintiff was granted exclusive privilege of operating a ferry over
a certain river by the municipality of Villasis, Pangasinan for 2 years. After one year, he
was ejected. Plaintiff instituted action for damages against municipal corporation. SC
held that in the administration of its patrimonial property, a municipal corporation can be
regarded as a private corporation or individual in sofar as its liability to third persons on
contract or in tort is concerned

o Municipality of Moncada v. Cajuigan The municipality and respondent entered into a

contract of lease whereby plaintiff leased to defendant certain fishponds. Municipality
rescinded contract one week after defendant asked for extension of payment which was
granted. SC held that the municipality, during the existence of valid contract of lease,
must be held responsible for damages for its illegal acts in forcibly ejecting the lessee

o Correa v. CFI of Bulacan SC held that a public officer who commits a tort or other
wrongful acts, done in excess or beyond scope of his duty is not protected by his office
ands is personally liable like any private individual

o Acuna v. Municipality of Iloilo SC held that since a contract for street cleaning is a
contract creating indebtedness against the municipality within the meaning of General
Orders No. 40, it requires for its validity the concurrence of the majority of the members
of the municipal council

o Bunye v. Sandiganbayan SC hled that explicit in Section 149(3) of BP 337 is a

requirement of a public bidding and the term of the contract does not exceeed 5 years.
Mayor Bunye is not guilty of anti-graft in cancelling the lease contract of the market with a
term of 25 years

SECTION 23. AUTHORITY TO NEGOTIATE AND SECURE GRANTS

Who may negotiate and secure grants? Local Chief Executive, upon authority of Sanggunian

What kind of grants? Financial grants or donations in kind, in support if the basic services and
facilities enumerated in Section 17

From whom? From local or foreign assistance agencies without necessity of securing
clearance or approval therefor from any department, agency, or office of the National Government

Limitations?
1. The projects financed by such grants or assistance with national security
implications shall be approved by the national agency concerned
2. When such national agency fails to act within 30 days from receipt, the same shall be
deemed approved
3. Local chief executive shall within 30 days upon signing of such grant or donation,
report the nature, amount and terms of assistance to both Congress and President

SECTION 24. LIABILITY FOR DAMAGES

LGU and their officials are NOT exempt from liability for death or injury to persons or damage
to property
 Provisions in the NCC on liabilities of LGUs: Art. 34, Art 2189
Municipal corporation is not liable for acts of its officers or agents in the performance of its
governmental functions. BUT in the performance of its corporate functions, it is to be regarded as
a private person or corporation so far as liability to third persons on contract or tort is concerned

CASES:
o City of Manila v. Teotico Respondent fell inside an uncovered and unlighted catch
basin and manhole in P. Burgos Avenue. He filed action for actual and moral damages
against City of Manial. SC held that it is not necessary for liability to attach to the City of
Manila that the defective road or street belong to it. It is sufficient that it has either control
ot supervision over the street or road.

o Bengzon v. Province of Pangasinan SC held that defendant is liable for constructing a

pump plant in such close proximity to plaintiffs residence practically rendering the same
uninhabitable. Under such circumstance, the maintenance of the nuisance is practically
tantamount to an expropriation

o Palafox v. Province of Ilocos Norte Plaintiffs father was run over by a freight truck
driven by a chauffer of the provinve detailed to the office of the District Engineer. SC held
that the province is not liable for the acts of its driver under Art. 103 of RPC because
province is not engaged in some kind of industry.

o Torio v. Fontanilla SC held that since the holding of a town fiesta is an exercise of a
proprietary function, the Municiplaity of Malasiqui is liable for any injury sustained on the
occasion thereof

Prepared by:

Kat Suyat
2s