LAW ON MUNICIPAL CORPORATIONS

Course Outline
I. GENERAL PRINCIPLES

1. Corporation Defined
2. Classes of Corporation
3. Elements of Municipal Corporation
4. Purposes and Functions of Municipal Corporation
5. Distinguishing Feature of Municipal of Corporation
6. Dual Nature of Municipal Corporation
7. De Facto Municipal Corporation, Elements

II. RA 7160- POLICY AND APPLICATION; CONSTITUTIONAL PROVISIONS

1. Purpose, Date of Effectivity and Four Major Parts

2. Scope of Application- Sec. 4, RA 7160
3. Rules of Interpretation
4. Declaration of Policy: Local Autonomy, Accountability of LGU’s and Periodic
Consultation
- Sec. 25, Art. II & Sec. 2, Art X, Philippine Costitution
- Sec. 2, RA 7160
*Pimentel vs. Aguirre, 336 SCRA 201
*Basco vs PAGCOR, 197 SCRA 52
* City of Davao vs. RTC Br XII, Davao City, 467 SCRA 280
*Province of Rizal vs. Executive Secretary, 477 SCRA 436
*Alvarez vs. PICOP Resources, 508 SCRA 498
*Ganzon vs CA, GR No.93252, August 5, 1991
*Limbonas vs Mangelin, 170 SCRA 786
*Lina vs Pano, GR No. 129093, August 30, 2001
*Plaza II vs. Cassion, 435 SCRA 294
5. Three Forms of Decentralization
a. Devolution
a.1. Regulatory Powers Devolved o LGU’s
-see: Powers, Duties & Functions of Sanggunian
*LTO vs City of Butuan, 332 SCRA 805
a.2. Basic Services & Facilities Transferred to LGU’s
- Sec. 17, Ra 7160
b. Deconcentralization
c. Debureaucratization: NGO membership in LGU Special Bodies
6. Constitutional Provisions- Art. X, Philippine Constitution

III. INTERGOVERNMENTAL RELATIONS

1. National Government & LGU’s- Secs. 25, 26, & 27

*Province of Batangas vs. Romulo, 429 SCRA 736
*Pimentel vs. Aguirre, 336 SCRA 201
*Dadole vs. COA, GR No. 125350, December 3, 2002
*National Liga ng mga Barangay vs. Paredes, 439 SCRA 130
2. Inter-Local Government Relations- Secs. 29, 30, 31, 32, & 33
*Arimao vs. Taher, 498 SCRA 74
3. Relations with PO’s & NGO’s- Secs. 34, 35, & 36
*COA vs Province of Cebu, GR No. 141386, Nov. 29, 2001
4. Local PBAC- Secs. 37 & 38
*Osea vs. Malaya, 375 SCRA 285

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IV. CREATION, CONVERSION, DIVISION, MERGER AND CONSOLIDATION,
AND ABOLITION OF LGU’S

1. Nature of the Power and Authority to Create LGU’s; Exception

-Sec. 10, Art. X, Philippine Costitution
-Sec. 6, RA 7160
*Municipality of San Joaquin vs SM va, 19 SCRA 599
-Sec. 385, RA 7160
*Torralba vs Municipality of Sibagat, 147 SCRA 390
*Municipality of Kapalong vs. Moya, 166 SCRA 70
*Municipality of San Narciso vs. Mendez, 239 SCRA 11
2. Necessity of Fixing Corporate Limits
3. Manner of Creation and Common Requisites/Criteria
-Secs. 7, 8, & 9 RA 7160
a. Barangays- Secs. 385 & 386
*City of Pasig vs. COMELEC, 314 SCRA 179
b. Municipalities- Secs. 441 & 442
c. Cities- Secs. 449, 450 & 452
*Mariano vs. COMELEC, 242, SCRA 211
*Alvarez vs. Guingona, 252 SCRA 695
*Cawaling vs. COMELEC, GR Nos. 146319 & 146342, Oct. 26, 2001
d. Provinces- Secs. 460, 461 & 462
*Tan vs. COMELEC, 142 SCRA 727
*Herrera vs. COMELEC, GR No. 131499, Nov. 17, 1999
e. Autonomous Regions
- Secs. 15 to 21, Art. X, Philippine Costitution
- RA 6734- ARMM
*Abbas COMELEC, 179 SCRA 287
*Ordillo vs. COMELEC, 192 SCRA 100
*Cordillera Broad Coalition vs COA, 181 SCRA 495
f. Special Metropolitan Political Subdivisions
-Sec. 11, Art. X, Philippine Constitution
*Lopez vs. COMELEC, 136 SCRA 633
*MMDA vs. Bel-Air Village Assoc Inc., GR No. 135962, March 27, 2000
g. De Facto Municipal Corporations;attack against invalidity of
incorporation
*Municipality of Malabang vs. Benito, 27 SCRA 533
*Municipality of San Narciso vs. Mendez, 239 SCRA 11
*Municipality of Jimenez vs. Baz, 265 SCRA 182
4. Plebiscite Requirement
-Sec. 10, RA 7160; Sec. 10, Art. X, Philippine Constitution
*Cawaling vs. COMELEC, supra
*Tan vs. COMELEC, 142 SCRA 727
*Miranda vs. Aguirre, GR. No. 133064, September 16, 1999
*Padilla vs COMELEC, 214 SCRA 735
5. Beginning of Corporate Existence- Sec. 14, RA 7160
6. Division/Merger, Effects- Sec. 8, RA 7160
7. Abolition- Sec. 9, RA 7160
8. Effects of Annexation/Consolidation of Municipal Corporation

V. GENERAL POWERS AND ATTRIBUTES OF LGU’s

A. Powers in general
1. Sources
2. Classification
3. Execution of Powers
B. Governmental Powers
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1. General Welfare (Sec. 16, RA 7160)
a. Requisites and limitations in the exercise of the power
b. Requisites for the validity of municipal ordinance
*Magtajas vs Pryce Properties, 234 SCRA 255
*Tatel s. Municipality of Virac, 207 SCRA 157
*Tano vs. Socrates, GR. No. 119249, August 21, 1997
*Lim vs. Pacquing, 240 SCRA 649
*Guingona vs. Reyes, GR. No. 117263, Jan. 27, 1995
*Olivarez vs. Sandiganbayan, GR. No. 118533, October 4, 1995
*LLDA vs. CA, 251 SCRA 42/231 SCRA 392
*Binay vs. Domingo, 201 SCRA 508
*Villacorta vs. Bernardo, 143 SCRA 480
*Phil. Gamefowl Commission vs. IAC, 146 SCRA 294
*Dela Cruz vs. Paras, 123 SCRA 569
*Quezon City vs. Ericta, 122 SCRA 759
*Velasco vs. Villegas, 120 SCRA 568
*Ortigas vs. Feati Bank, 94 SCRA 533
*Balacuit vs. CFI of Agusan del Norte, 163 SCRA 182
*Sangalang vs. IAC, 176 SCRA 719
*Acebedo Opt. vs. CA, GR. No. 100152, March 31, 2000
*LTO vs. City of Butuan, 332 SCRA 805
*Rural Bank of Makati vs. Municipality of Makati, 443 SCRA 602
*Lim vs. CA, 387 SCRA 149
*Robles Arrastre, Inc. vs. Villaflor, 499 SCRA 434
*Javellana vs. Kintanar, 119 SCRA 627
*Baguio Citizens Action, Inc. vs. City Council, 121 SCRA 368
*Batangas CATV vs CA, 439 SCRA 326
*Tan vs. Perena, 452 SCRA 53
*Luven Grand Terminal vs. JAI, 452 SCRA 174
*Lucero vs City Government of Pasig, 508 SCRA 23
*AC Enterprises, Inc. vs. Frabelle Corp., 506 SCRA 625
2. Basic Services and Facilities (Sec. 17, RA 7160)
3. Power to Generate and Apply Resources (Sec. 18, RA 7160)
a. Sec.5, 6 and 7 Art. X, Philippine Costitution
*NPC vs. City of Cabanatuan, 401 SCRA 259
*PHILRECA vs. Secretary of DILG, 403 SCRA 558
*Pimentel vs Aguirre, 336 SCRA 201
*Meralco vs. Province of Laguna, 306 SCRA 750
*Mactan Cebu Intl Airport Authority vs. Marcos, GR No. 120082, Sept 11, 1996
*NPC vs. City of Cabanatuan, 401 SCRA 259
*Basco vs. Pagcor, 197 SCRA 52
*City of Davao vs. RTC Br. XII, Davao City 476 SCRA 280
*PLDT vs. City of Davao, 363 SCRA 522
*Pimentel vs. Aguirre, 336 SCRA 201
*ACORD vs. Zamora, 459 SCRA 578
b. Fundamental Principles of Local Taxation (Sec. 130, RA 7160)
*Hagonoy Market Vendors Assoc vs. Municipality of Hagonoy, Bulacan, 376
SCRA 376
*Coca-cola Bottlers Philippines, Inc. vs. City of Manila, 493 SCRA 279
*Drilon vs. Lim, GR. No. 112497, August 4, 1994
*City of Olongapo vs. Stallholders, 343 SCRA 705
*Mactan Cebu interntional Airport Authority vs. Marcos, GR No. 120082,
September 11, 1996
*PBA vs. CA,
c. Fundamental Principles on Financial Affairs (Sec. 305, RA 7160)
*Albon vs. Fernando, 494 SCRA 141
4. Eminent Domain vs. (Sec. 19, RA 7160)
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 a. Constitutional requisites and limitations
*The City of Cebu vs. Dedamo, 380 SCRA
*Beluso vs. Municipality of Panay, Capiz, 498 SCRA 113
*Bardillon vs. Brgy. Masili of Calamba, Laguna, 402 SCRA 440
*Barangay Sindalan vs. CA, GR No. 150640, March 22, 2007
*City of Manila vs Chinese Community, 40 Phil 349
*Jesus is Lord Christian School Foundation vs. Municipality of Pasig MM, 466
SCRA 235
*City of Manila vs. Chinese Community, 40 Phil 349
*Municipality of Meycauayan vs. IAC, 157SCRA 640 and Manapat vs. CA, 536
SCRA 32
*Sumulong vs Guerrero, 154 SCRA 461
*Province of Camarines Sur vs. CA, 222 SCRA 173
*Barangay Sindalan vs. CA, supra
b. Additional limitations
*Moday vs. CA, 243 SCRA 152
*Mun. of Paranaque vs. City of Mandaluyong, 328 SCRA 137
*Filstream International Inc. vs. CA 284 SCRA 716
*Brgy. San Roque, Talisay, Cebu vs. Heirs of Francisco Pastor, 334 SCRA 127
*Bardillon vs. Brgy. Masili of Calamba, Laguna, supra
*Municipality of Paranaque vs. VM Realty Corp., 292 SCRA 676
*Heirs of Suguitan vs. City of Mandaluyong, 328 SCRA 137
*Antonio vs. Geronimo, 476 SCRA 340
*Langcao vs. City of Cebu, 400 SCRA 279
*City of Mandaluyong vs. Aguilar, 350 SCRA 487
*Antonio vs. Geronimo, 476 SCRA 340
*City of Iloilo vs. Legaspi, 444 SCRA 269
5. Other Powers
a. Reclassification of Lands (Sec. 20, RA 7160)
b. Closure and Opening of Roads (Sec. 21, RA 7160)
*Pilapil vs. CA, 216 SCRA 33
*Macasiano vs. Diokno, 212 SCRA 464
*Cebu Oxygen & Acetylene Co. vs. Berciles, 66 SCRA 481
*Favis vs. City of Baguio, 27 SCRA 1060
*Cruz vs. CA, 153 SCRA 142
*Patalinghug vs. CA, 229 SCRA 554
*Jimenez vs. Baz, 265 SCRA 182
*Municipality of Kanaga vs. Madrona, 402 SCRA 330
c. Naming of LGU’s, public places, streets & structures
c.1. Provinces- Sec. 13a, RA 7160
c.2. Highly Urbanized Cities & Independent Component Cities, Sec 13b
c.3. Component Cities & Municipalities- Sec. 13c
c.4. Consultations with the NHI, Recommendations of School Board or Health
Board, Plebiscite Requirement & Notification-Sec. 13 d, e, f & g; Sec. 99d
d. Settlement of Boundary Disputes
d.1. Jurisdictional Responsibility- Sec. 118 a to d
d.2. Procedure:Amicable Settlement, Formal Hearing & Appeal-Secs. 118e, 119
*Municipality of Jimenez vs. Baz, 265 SCRA 182
e. Authority over police units
*Sec. 6, Art. XVI, Philippine Costitution
*RA 6975- Phil. National Police Act
6. Local Legislative Power (Secs. 48-59, RA 7160)
a. Products of legislative action
b. Requisites for validity
c. Ordinance making
*Gamboa vs. Aguirre, GR No. 134213, July 20, 1999
*Zamora vs Caballero, 420 SCRA 384
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 *Malonza vs. Hon. Zamora, 323 SCRA 875
d. Approval of ordinances
*Malonzo vs. Zamora, 311 SCRA 224
*De Los Reyes vs. Sandiganbayan GR No. 121215, November 13, 1997
e. Review by the Sangguniang Panlalawigan
*Moday vs. CA, 268 SCRA 586
f. Review of Barangay ordinances
g. Enforcement of disapproved ordinances/resolutions
h. Effectivity
C. Corporate Powers (Sec. 22, RA 7160)
1. To have continuous succession in its corporate name
2. To sue and be sued
*City Council of Cebu vs. Cuizon, 47 SCRA 235
*Municipality of Pililia vs. CA, 233 SCRA 484
*Province of Cebu vs. IAC, 147 SCRA 447
*Mancenido cs. CA , 330 SCRA 419
*Ramos vs. CA, 269 SCRA 34
*Osmena vs. COA, 238 SCRA 463
*Municipality of Makati vs. CA, 190 SCRA 206
*Pasay City Government vs. CFI Manila 132 SCRA 156
3. To have and use a corporate seal
4. To acquire and convey real r personal property
*Dacanay vs. Asistio, 208 SCRA 404
*Macasiano vs. Diokno, supra
*City of Angeles vs. CA, 261 SCRA 90
*City of Naga vs. CA, 172 SCRA 13
*Figuracion vs. Libi, 539 SCRA 50
5. Power to enter into contracts
a. Requisites of a valid municipal contracts
*Mallari vs, Alsol , 484 SCRA 148
*Osmena vs COA, 230 SCRA 585
b. Ultra vires contracts
c. Authority to negotiate and secure grants (Sec. 23, RA 7160)
6. To exercise such other powers as are granted to corporations, subjects to
limitations provided in the Code and other laws

D. Municipal Liability
1. Specific provisions of law making LGU’s liable
a. Sec 24, RA 7160
b. Art. 2189, Civil Code
*City of Manila vs. Teotico, 22 SCRA 267
*Jimenez vs. City of Manila, 150 SCRA 510
*Guilatco vs. City of Dagupan, 171 SCRA 510
*Merritt vs. Government of the Philippines, 34 Phil 311
c. Art. 2180, (par. 6), Civil Code
d. Art. 34, Civil Code
2. Liability of Tort
a. Governmental function
*Municipality f San Fernando vs. Firme, 195 SCRA 692
b. Proprietary functions
*Torio vs. Fontanilla, 85 SCRA 599
c. Personal liability of local officials
*City of Angeles vs. CA supra
*Rama vs. CA, 148 SCRA 49
3. Liability for Violation of Law
*Moday vs. CA, 243 SCRA 152
*Constantino vs. Desierto, 288 SCRA 654
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 4. Liability for Contracts
a. General Rule
b. Doctrine of Implied Municipal Liability
*Province of Cebu vs. IAC, 147 SCRA 447

VI. LOCAL OFFICIALS

A. Provisions applicable to elective and appointive officials

1. Prohibited Business and Percuniary Interest (Sec. 89, RA 7160)
2. Practice of Profession (Sec. 90, RA 7160)
*Javellana vs. DILG, 212 SCRA 475
3. Prohibition against appointment (Sec. 94, RA 7160)
*Flores vs. Drilon, 233 SCRA 568
B. Effective Local Officials\
1. Qualifications (Sec. 39, Ra 7160)
*Papandayan, Jr. vs. COMELEC, 382 SCRA 133
* Coquilla vs. COMELEC, 385 SCRA 607
*Torayno vs. COMELEC, 337 SCRA 574
*Labo vs. COMELEC, 176 SCRA 1
*Frivaldo vs. COMELEC, 174 SCRA 245
*Frivaldo vs. COMELEC, 257 SCRA 727
*Garvida vs Sales, 271 SCRA 767
*Caasi vs. CA, 191 SCRA 229
*Manzano vs. Mercado, GR No. 135083, May 26, 1999
2. Disqualifications (Sec. 40, RA 7160)
*Villaber vs. COMELEC, 369 SCRA 126
*Magno vs. COMELEC, 390 SCRA 495
*Dela Torre vs. COMELEC, 258 SCRA 483
*Grego vs. COMELEC, 274 SCRA 481
*Reyes vs. COMELEC, 254 SCRA 514
*Marquez vs. COMELEC, 243 SCRA 538
*Caasi vs. CA, 191 SCRA 229
*Gayo vs. Verceles, 452 SCRA 504
*Rodriguez vs. COMELEC, 259 SCRA 296
*Trinidad vs. COMELEC, GR No. 135716, September 23, 1999
3. Manner of Election (Sec. 41, RA 7160)
4. Date of Election
5. Term of Office
*Latasa vs. COMELEC, 417 SCRA 574
*Borja vs. COMELEC, GR No. 133495, Sept. 3, 1998
*Lonzanida vs. COMELEC, 311 SCRA 602
*Rivera III vs. COMELEC, GR No. 167591, May 6, 2007
*Socrates vs. COMELEC 2002, 391 SCRA 457
6. Rules on Succession (Secs. 44-46, RA 7160)
a. Permanent vacancies
*Victoria vs. COMELEC, 229 SCRA 269
*Farinas vs. Barba, 256 SCRA 396
*Garvida vs. Sales, supra
b. Temporary vacancies
*Gamboa vs Aguirre, GR No. 134213, July 20, 1999
*Menzon vs. Petilla, 197 SCRA 251
7. Compensation (Sec. 81, RA 7160)
8. Recall
a. By whom exercised- Sec. 69, RA 7160
b. Two modes of initiating recall- Sec. 70, RA 7160
*Afiado vs. COMELEC, GR No. 141787, Sept. 18, 2000
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 *Claudio vs. COMELEC, 331 SCRA 388
*Garcia vs. COMELEC, GR. No. 111511, Oct. 5, 1993
*Malonzo vs. COMELEC, 223 SCRA 45
*Angobung vs. COMELEC, 269 SCRA 245
*Paras vs. COMELEC, 264 SCRA 49
9. Resignation (Sec. 82, RA 7160)
10. Grievance Procedure (Sec. , RA 7160)
11. Discipline
a. Grounds for Removal/Disciplinary Action, Sec. 60
*Grego vs. COMELEC, 274 SCRA 481
*Reyes vs. COMELEC, 254 SCRA 524
*Dela Torre vs. COMELEC, 258 SCRA 483
*Aguinaldo vs. Santos, 212 SCRA 768
*Salalima vs. Guingona, 257 SCRA 55
*Garcia vs. Mojica, 314 SCRA 211
*Marquez vs. COMELEC, 243 SCRA 538
*Rodriguez vs. COMELEC, 259 SCRA 296
b. Form and Filing of Administrative Complaints
*Sec. 61, RA 7160, Adm. Order No. 23, Dec. 17, 1992
*Executive Order No. 26, Oct. 7, 992
*Ganzon vs. CA, 200 SCRA 271
*Berces vs. Exec. Sec.,GR No. 102099 Feb. 21, 1995
c. Notice of Hearing, Sec. 62
d. Preventive Suspension; Grounds; Period, Sec. 63
1) Who may impose
*Garcia vs. Mojica, 314 SCRA 207
*Socrates vs Sandiganbayan, 253 SCRA 773
2) When may be imposed
*Deloso vs. Sandiganbayan, 73 SCRA 409
*Libanan vs. Sandiganbayan, 233 SCRA 163
*Bayot vs. Sandiganbayan, 128 SCRA 383
*Joson vs. Torres, 290 SCRA 279 1998
*Bolastig vs. Sandiganbayan, 235 SCRA 103
3) Period
*Rios vs. Sandiganbayan, GR No. 129913, September 26, 1997
e. Suspended Elective Official- when deemed reinstated
f. Salary of Respondent Pending Suspension
*Gloria vs. CA, 306 SCRA 287
*Dela Cruz vs. CA, GR No. 126183, Mrch 25, 1999
g. Rights of Respondent
h. Form and Notice of Decision
*Malinao vs Reyes, 255 SCRA 616
i. Penalty
*Salalima vs. Guingona, supra
j. Administrative Appeal
*Malinao vs. Reyes, 255 SCRA 616
k. Execution Pending Appeal
*Lapid vs. CA, 334 SCRA 738
*Ombudsman Adm. Order 14-A, S. of 2000
*Malonzo vs. Executive Secretary Zamora, 311 SCRA 224
*Hagad vs. Gozo-Dadole, 251 SCRA 242
l. Presidential Power to Grant Executive Clemency
*Llamas vs. Orbos, 202 SCRA 844
*Garcia vs. dela Rosa, 229 SCRA 766

*Malinao vs. Reyes, supra

*Salalima vs. Guingona, supra
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 *Garcia vs. Mojica, GR No. 139043, September 10, 1999
C. Appointive Local Officials
1. Responsibility for human resources and development
2. Officials common to all Municipalities, Cities and Provinces
3. Administrative discipline

VII. LOCAL INITIATIVE AND REFERENDUM

A. Local Initiative
1. Definition
2. Procedure
3. Limitations on local initiative; on the Sanggunian
B. Local Referendum
1. Definition
2. Procedure
C. Authority of Courts