CONSTITUTIONAL LAW II

I. Preliminaries

1. *Constitution – that body of rules and maxims in accordance with which the power of sovereignty are habitually exercised; puts
limitations to the powers of government rather than being the source of powers

* Constitutional Law – is a term used to designate the law embodied in the constitution and the legal principles growing out of the
interpretation and application made by courts of the constitution in specific cases

* Political Law – a branch of public law which deals with the organization and operations of the governmental organs of the State
and defines the relations of the State with the inhabitants of its territory
 Constitutional Law
 Administrative Law
 Public Corporation Law
 Election Law

2. Purpose  To prescribe the permanent framework of a system of government, to assign to the several departments their
respective powers and duties, and to establish certain first principles on which government is founded.

3. Classification

A. (1) Rigid - is one that can be amended only by a formal and usually difficult process; cumbersome; subject to ratification
(2) Flexible - is one that can be changed by ordinary legislation; easier

B. (1) Written - is one whose precepts are embodied in one document or set of documents; codified
(2) Unwritten - consists of rules which have not been integrated into a single, concrete form but are scattered in various sources,
such as statutes of a fundamental character, judicial decisions, commentaries of publicists, customs and traditions, and certain
common law principles; uncodified

C. (1) Evolved - or cumulative is the result of political evolution, not inaugurated at any specific time but changing by accretion rather
than by systematic method
(2) Enacted - or conventional constitution is enacted, formally struck off at a definitive time and place following a conscious or
deliberate effort taken by a constituent body or ruler

D. (1) Normative - adjusts to norms

(2) Nominal - not yet fully operational
(3) Semantic - perpetuation of power

*The Constitution of the Philippines is written, conventional and rigid.

4. Qualities of a good written constitution

1. Broad - it provides for the organization of the entire government and covers all persons and things within the territory of the State
and also because it must be comprehensive enough to provide for every contingency
2. Brief - must confine itself to basic principles to be implemented w/ legislative details more adjustable to change and easier to
amend
3. Definite - to prevent ambiguity in its provisions which could result in confusion and divisiveness among the people

5. Essential parts of a good written constitution

1. Constitution of Government - The series of provisions outlining the organization of the government, enumerating its powers,
laying down certain rules relative to its administration and defining the electorate.
2. Constitution of Liberty - The series of proscriptions setting forth the fundamental civil and political rights of the citizens and
imposing limitations on the powers of government as a means of securing the enjoyment of those rights.
3. Constitution of Sovereignty - The provisions pointing out the mode or procedure in accordance with which formal changes in the
fundamental law may be brought about. It has to be changed through the instrumentality of the people.

6. Interpretation/Construction of the Constitution

1. Verba Legis - plain meaning rule
- whenever possible the words used in the Constitution must be given their ordinary meaning except when technical terms are
employed
- textualist approach or intent
2. Ratio legis et anima - interpretation according to spirit
- words of the Constitution should be interpreted in accordance with the intent of the framers
- originalism (intent of the framers; original understanding of the people)
3. Ut magis valeat quam pereat - the constitution has to be interpreted as a whole
(Francisco, Jr. vs. House of Representatives)
7. Self-executing provision  A constitutional provision is self-executing if the nature and extent of the right conferred and the
liability imposed are fixed by the constitution itself, so that they can be determined by an examination and construction of its terms,
and there is no language indicating that the subject is referred to the legislature for action. (Manila Prince Hotel vs. GSIS)

8. Amendment/Revision

a. Definition
* Amendment - an alteration of one or a few specific provisions of the Constitution. Its main purpose is to improve specific
provisions of the Constitution. The changes being brought about by amendments will not affect the other provisions of the
Constitution.
* Revision - an examination of the entire Constitution to determine how and to what extent it should be altered. A revision implies
substantive change, affecting the Constitution as a whole.

* Revision broadly implies a change that alters a basic principle in the constitution, like altering the principle of separation of powers
or the system of checks-and-balances. There is also revision if the change alters the substantial entirety of the constitution, as when
the change affects substantial provisions of the constitution. On the other hand, amendment broadly refers to a change that adds,
reduces, or deletes without altering the basic principle involved. Revision generally affects several provisions of the constitution,
while amendment generally affects only the specific provision being amended. (Lambino vs. COMELEC)

b. Constituent vs. Legislative Power

* Constituent – (of an assembly) able to frame or amend a constitution; a constituent council
* Legislative Power – people can pass for local statutes and legislations by initiative and referendum

c. Steps in the amendatory process

1. Proposal (3 methods) - there is a process of proposing a change in the Constitution

a. Constituent Assembly - amendments and revisions
- 3/4 of all its members voting separately
- there were instances in which the Senate and HP will convene and vote as a whole (during the Martial Law)
- since nothing is said about a joint session, it is submitted that each House may separately formulate amendments by a
vote of ¾ of all its members, and then pass it on to the other House for a similar process, and disagreement can be
settled through a conference committee
b. Constitutional Convention - amendments and revisions
- calls for a constituent assembly first before Constitutional Convention
- 2/3 of all its members
c. People's Initiative - amendments only
- proposal by the people themselves

* The constitutional provision on people's initiative to amend the Constitution can only be implemented by law to be passed by
Congress. No such law has been passed. (Santiago vs. COMELEC)
* The people's initiative is limited to amendments to the Constitution, not to revision thereof. Extending or lifting of term limits
constitutes a revision and is, therefore, outside the power of the people's initiative. (Santiago vs. COMELEC)

2. Ratification - held in a plebiscite conducted under the election law

- supervised by the COMELEC
- where only registered voters take part
- all proposed amendments/revision made by the constituent assemblies must be submitted for ratification in a single plebiscite
- there cannot be a piece-meal ratification of amendments/revisions

9. Power of Judicial Review

a. Definition
The judicial power shall be vested in one Supreme Court and in such lower courts as may be established by law. Judicial power
includes the duty of the courts of justice to settle actual controversies involving rights which are legally demandable and
enforceable, and to determine whether or not there has been a grave abuse of discretion amounting to lack or excess of
jurisdiction on the part of any branch/instrumentality of the Government. (Art. VIII, Sec. 1)
All cases involving the constitutionality of a treaty, international or executive agreement, or law, which shall be heard by the
Supreme Court en banc, and all other cases which under the Rules of Court are required to be heard en banc, including those
involving the constitutionality, application, or operation of presidential decrees, proclamations, orders, instructions, ordinances, and
other regulations, shall be decided with the concurrence of a majority of the Members who actually took part in the deliberations on
the issues in the case and voted thereon. (Art. VIII, Sec. 4[2])

b. Who exercises the power of judicial review?

 Supreme Court and inferior courts
 The Constitution vests the power of judicial review or the power to declare a law, treaty, international or executive agreement,
PD, order, instruction, ordinance or regulation not only in the Supreme Court but in all RTCs. (Mirasol vs. Court of Appeals)

Review, revise, reverse, modify, or affirm on appeal or certiorari, as the law or the Rules of Court may provide, final judgments &
orders of lower courts in:
a. All cases in which the constitutionality or validity of any treaty, international or executive agreement, law, presidential
decree, proclamation, order, instruction, ordinance, or regulation is in question.
b. All cases involving the legality of any tax, impost, assessment, or toll, or any penalty imposed in relation thereto.
c. All cases in which the jurisdiction of any lower court is in issue.
d. All criminal cases in which the penalty imposed is reclusion perpetua or higher.
e. All cases in which only an error or question of law is involved.
(Art. VIII, Sec. 5[2])

* manner: (1) Supreme Court en banc; (2) majority of the members who participated in the deliberation and voted thereon

c. Requisites of judicial review

1. Actual Case or Controversy; Ripeness of Controversy

- a conflict of legal rights, an assertion of opposite legal claims susceptible of judicial determination
- no commitment to adversorial system; the court has no authority to pass upon issues of constitutionality through advisory
opinions; there should be an actual case or controversy
- ripeness for adjudication - governmental act challenged should have direct adverse effect on individual challenging the act

* premature case: hypothetical, give advisory opinion, pool a problem in abstract

* actual case: ripeness for adjudication

* The case must not be:

1. Moot or academic
2. Based on extra-legal or other similar consideration not cognizable by courts of justice
3. A request for advisory opinion
4. Hypothetical or feigned constitutional problems
5. Friendly suits collusively arranged between parties without real adverse interests
* moot and academic

* Moot Case  A moot case is one that ceases to present a justiciable controversy by virtue of supervening events, so that a
declaration thereon would be of no practical use or value. Generally, courts decline jurisdiction over such case or dismiss it on
ground of mootness.
V
* Doctrine of Operative Fact [exceptions]
(David vs. Arroyo)
The courts will decide if the cases otherwise become moot and academic if:
 there is a grave violation of the Constitution
 the exceptional character of the situation and the paramount public interest is involved
 when constitutional issue raised requires formulation of controlling principles to guide the bench, the bar, and the public
(the SYMBOLIC function of the supreme court)
 the case is capable of repetition yet evading review

2. Legal Standing (Locus Standi)

- standing in law
- complainant/challenger should have personal or substantial interest in the case such that the party has sustained or will sustain a
direct injury as a result of the governmental act that s being challenged (IBP vs. Zamora)

* real-party-in-interest
 party who stands to be benefited/injured by judgment in the suit
 the party entitled to the avails of the suit
 civil / private law cases
 rigid; strict

* legal standing
 public / constitutional law cases
 personal and substantial interest; if the person is the party who suffers or will suffer the injury pursuant to the application of
governmental act
 broader concept
 apply the “direct injury test”
 * Suits:
 Requisites for Taxpayers Suit - there must be a claim of illegal disbursement of public funds or that the tax measure is
unconstitutional
 Requisites for Lawmakers Suit - there must be a claim that the official action complained of infringes upon their
prerogatives as legislators
 Requisites for Voters Suit - there must be a showing of obvious interest in the validity of the election law in question
 Requisites for Concerned Citizens Suit - there must be a showing that the issues raised are of transcendental importance
which must be settled early

* Instructive elements of Transcendental Importance:

(Chavez vs. Gonzales)
 Character of the funds/assets involved in the case
 Presence of a clear case of disregard of a constitutional or statutory prohibition by a public respondent, agency or
instrument of the government
 Lack of any other party with a more direct and specific injury

3. The constitutional question must be raised at the earliest possible opportunity; Exceptions

*General Rule: The question must be raised in the pleadings.

* Exceptions:
 In criminal cases, the question can be raised at any time at the discretion of the court;
 In civil cases, the question can be raised at any stage of the proceedings if necessary for the determination of the case
itself; &
 In every case, except where there is estoppel, it can be raised at any stage if it involves the jurisdiction of the court.
* 2 kinds of estoppel:
 A person is barred from questioning a particular act after where he has benefited from the same act.
 Where a person is prevented from exercising a right, after a certain period he has slept that right.

* It is not the date of filing of the petition that determines whether the constitutional issue was raised at the earliest possible
opportunity. The earliest opportunity to raise a constitutional issue is to raise it in the pleadings before a competent court can
resolve the same, such that, if it is not raised in the pleadings, it cannot be considered at the trial, and if not considered at the trial, it
cannot be considered on appeal. (Matibag vs. Benipayo)

4. The decision on the constitutional question must be determinative of the case itself
(constituional question must be the very lis mota)
- lis mota - essence of the subject matter of the case; existing or anticipated litigation
- determination of the constitutionality of the act is inevitable, cannot be avoided
- the court should respect the act of the other 2 branches

* Every law has in its favor the presumption of constitutionality, and to justify its nullification, there must be a clear and unequivocal
breach of the Constitution, and not one that is doubtful, speculative or argumentative. (Arceta vs. Judge Mangrobang)

d. Effects of declaration of unconstitutionality / partial unconstitutionality

1. The Orthodox View

- The law is void if on its face it does not enjoy any presumption of validity because it is patently offensive to the Constitution. It
produces no effect, creates no effect, and produces no duty.
- if the law is inconsistent with the Constitution, then the latter shall govern
- if the law has been declared unconstitutional, it is presumed that no law existed at all
- traditional view

* An unconstitutional act is not a law; it confers no rights; it imposes no duties; it affords no protection; it creates no office; it is, in
legal contemplation, as inoperative as though it had never been passed.

2. The Modern View

- The law is voidable if on its face it enjoys the presumption of unconstitutionality. The law becomes inoperative only upon the
judicial declaration of its invalidity. The declaration produces no retroactive effect.

* Under this view, the court in passing upon the question of constitutionality does not annul or repeal the statute if it finds it in
conflict with the Constitution. It simply refuses to recognize it and determines the rights of the parties just as if such statute had no
existence. But certain legal effects of the statute prior to its declaration of unconstitutionality may be recognized.

II. Fundamental Powers of the State

1. Inherent powers of the State: definition, distinctions and limitations
* police power- power of the State to regulate liberty and property for the promotion of the general welfare
* power of eminent domain – enable the State to forcibly acquire private property, upon payment of just compensation, for some
intended public use
* power of taxation – the State is able to demand from the member of society their proportionate share or contribution in the
maintenance of the government

 They are supposed to co-exist with the State.

Similarities:
 They are inherent in the State and may be exercised by it without need of express constitutional grant.
 They are not only necessary but indispensable. The State cannot continue or be effective unless it is able to exercise
them.
 They are methods by which the State interferes with private rights.
 They all presuppose an equivalent compensation for the private rights interfered with.
 They are exercised primarily by the legislature.

Differences/Distinctions:
 police power  regulates both liberty and property
power of eminent domain & power of taxation  affects only property rights
 police power & power of taxation  may be exercised only by the government
power of eminent domain  may be exercised by some private entities
 property taken in the exercise of the police  is destroyed because it is noxious or intended for a noxious purpose
property taken under the power of eminent domain and the power of taxation is intended for a public use or purpose
and is therefore wholesome
 compensation of the person subjected to the police power  is the intangible altruistic feeling that he has contributed to
the general welfare
compensation involved in the other powers  is more concrete, to wit, a full and fair equivalent of the property
expropriated or protection and public improvements for the taxes paid

Limitations:
 The exercise of these fundamental powers is subject at all times to the limitations and requirements of the Constitution and may
in proper cases be annulled by the courts of justice.
2. Police Power

a. Definition
 Police Power has been defined as the power of promoting the public welfare by restraining and regulating the use of
liberty and property.
 Police power easily outspaces the other two inherent powers as instruments of the State in interfering with private
rights. The power of Eminent Domain and Taxation involve only property rights. By contrast, Police Power regulates not
only the property, but more importantly, the liberty of private persons and virtually all the people. It is regarded as
infinitely more important than eminent domain or taxation.
 Police power has been defined as the “state authority to enact legislation that may interfere with personal liberty or
property in order to promote the general welfare.” As defined, it consists of (1) an imposition of restraint upon liberty or
property, (2) in order to foster the common good. It is not capable of an exact definition but has been, purposely, veiled
in general terms to underscore its all-comprehensive embrace.

b. Scope
 Police power regulates not only the property but, more importantly, the liberty of private persons, and virtually all the
people.
 The scope of police power, ever-expanding to meet the exigencies of the times, even to anticipate the future where it
could be done provides enough room for an efficient and flexible response to conditions and circumstances thus assuring
the greatest benefits.

Characteristics
 Police power is considered the most pervasive, the least limitable, and the most demanding of the three powers. It
may be exercised as long as the activity or the property sought to be regulated has some relevance to the public welfare.

 Pervasive and non-waivable: The police power is the pervasive and non-waivable power and authority of the sovereign
to secure and promote all the important interests and needs — or the public order — of the general community.
 Essential, insistent and illimitable: The police power of the state has been described as the most essential, insistent
and illimitable of powers, which enables it to prohibit all things hurtful to the comfort, safety and welfare of society.
 Dynamic: Police power is a dynamic force that enables the state to meet the exigencies of changing times. There are
occasions when the police power of the state may even override a constitutional guaranty, such as that the constitutional
provision on non-impairment of contracts must yield to the police power of the state. Police power is dynamic, not static,
 must move with the moving society it is supposed to regulate. Once exercised, it is not deemed exhausted and may be
exercised repeatedly, as often as it is necessary for the protection or the promotion of the public welfare.

 Police power may sometimes use the taxing power as an implement for the attainment of a legitimate police
objective.

Limits:
 It is virtually limitless. Owing to the need to protect society from the inordinate assertion of individual liberty, it has
been held that the police power may not be bargained away by virtue of a contract or even a treaty, so long as it is
regulated in order to promote the general welfare.

c. Who exercises the power?

 Police power is an inherent attribute of sovereignty. It has been defined as the power vested by the Constitution in the
legislature to make, ordain, and establish all manner of wholesome and reasonable laws, statutes and ordinances, either
with penalties or without, not repugnant to the Constitution, as they shall judge to be for the good and welfare of the
commonwealth, and for the subjects of the same. Police power is lodged primarily in the National Legislature. It cannot
be exercised by any group or body of individuals not possessing legislative power. The National Legislature, however, may
delegate this power to the President and administrative boards as well as the lawmaking bodies of municipal
corporations or local government units. Once delegated, the agents can exercise only such legislative powers as are
conferred on them by the national lawmaking body. (MMDA vs. Bel-Air Village Association, Inc.)

d. Tests for valid exercise

 Lawful subject
 Lawful subject simply means that the subject of the measure is within the scope of the police power, that
is, that the activity or property sought to be regulated affects the public welfare. If it does, the enjoyment of
private rights may be subordinated to the interests of the greater number, in consonance of the principle “the
welfare of the people is the supreme law”. (Ople vs. Torres)
 Lawful means
 The means employed are reasonably necessary for the attainment of the object sought to be accomplished
and not unduly oppressive upon individuals. (Lucena Grand Central Terminal vs. JAC Liner)
 The means employed are reasonably necessary for the accomplishment of the purpose and not unduly
oppressive upon individuals. The lawful objective must be pursued through a lawful method. The means
employed for the accomplishment of the police objective must pass to the test of reasonableness and
conform to the safeguards embodied in the Bill of Rights for the protection of private rights.
 Even if the purpose be within the scope of the police power, the law will still be annulled if the subject is
sought to be regulated in violation of the second requirement. In Constitutional Law, the end does not justify
the means. The lawful objective, in other words, must be pursued through a lawful method; that is, both the
end and the means must be legitimate. Lacking such concurrence, the police measure shall be struck down as
an arbitrary intrusion of private rights.

3. Power of Eminent Domain

a. Definition/Scope
 Power of eminent domain is where private property is needed for conversion to some public use with just
compensation.
 The power of eminent domain results in the taking or appropriation of title to, and possession of, the expropriated
property.
(Camarines Norte Electric Cooperative vs. Court of Appeals)
 It is also called as “Power of Expropriation”
 Limitation: “Private property shall not be taken for use without just compensation.” (Art. III, Sec. 9)

b. Who may exercise the power?

 The power of eminent domain is lodged in the legislative branch of the government. It delegates the exercise thereof
to local government units, other public entities and public utility corporations, subject only to Constitutional limitations.
Local governments have no inherent power of eminent domain and may exercise it only when expressly authorized by
statute. (Masikip vs. City of Pasig)

 The following may exercise the power of expropriation:

1. The Congress.
2. The President of the Philippines.
3. The various local legislative bodies.
4. Certain public corporations – like the Land Authority and National Housing Authority.
5. Quasi-public corporations – like Philippine National Railways, the Philippine Long Distance Telephone Co. and
the Meralco.
* “destruction from necessity” – may be validly taken by private individuals; cannot require the conversion of the
property taken to public use; nor is there any payment of just compensation

c. Requisites for exercise

1. Genuine necessity – essentially political when decided by the national legislature and are usually not subject
to judicial review
 The foundation of the right to exercise eminent domain is genuine necessity and that necessity must be of
public character. Government may not capriciously or arbitrarily choose which private property should be
expropriated. (Lagcao vs. Judge Labra)

2. Private property – this includes real and personal, tangible and intangible properties
- exceptions: money and choses in action
 Private property is subjected to a burden for public use and benefit. (Republic of the Philippines vs. PLDT)

3. Taking in the constitutional sense – imports a physical dispossession of the owner, as when he is ousted from
his land or relieved of his watch and his car and is thus deprived of all the beneficial use and enjoyment of his
property
 A number of circumstances must be present in the "taking" of property for purposes of eminent domain:
a. Expropriator must enter private property.
b. Entrance must be for more than momentary period.
c. Entrance must be under warrant or color of legal authority.
d. Property must be devoted to public use or otherwise informally appropriated or injuriously
affected.
e. Utilization of property for public use must be in such a way as to oust the owner and deprive him of
beneficial enjoyment of the property.
(Republic vs. Castellvi)

4. For public use – any use directly available to the general public as a matter of right and not merely of
forbearance or accommodation
 It is now settled doctrine that the concept of public use is no longer limited to traditional purposes. Here, as
elsewhere, the idea that "public use" is strictly limited to clear cases of "use by the public" has been
abandoned. The term "public use" has now been held to be synonymous with "public interest," "public
benefit," "public welfare," and "public convenience." (Reyes vs. NHA)

5. Payment of just compensation – full and fair equivalent of the property taken from the private owner by the
expropriator

* Equation: Just compensation = Fair Market Value + (Consequential Damage – Consequential Benefits)

a. Concept  in which the owner of condemned property is entitled to its market value; market value
is that sum of money which a person desirous but not compelled to buy, and an owner willing but
not compelled to sell would agree on as a price to be given and received therefore (NAPOCOR vs.
Sps. Chiong)

b. Judicial prerogative  determination of payment of just compensation is a judicial action

 The method of ascertaining just compensation constitutes impermissible encroachment to
judicial prerogatives. It tends to render the courts inutile in a matter in which under the
Constitution is reserved to it for financial determination. The valuation in the decree may only
serve as guiding principle or one of the factors in determining just compensation, but it may not
substitute the court’s own judgment as to what amount should be awarded and how to arrive at
such amount. The determination of just compensation is a judicial function. The executive
department or the legislature may make the initial determination but when a party claims a
violation of the guarantee in the Bill of Rights that the private party may not be taken for public use
without just compensation, no statute, decree, or executive order can mandate that its own
determination shall prevail over the court’s findings. Much less can the courts be precluded from
looking into the justness of the decreed compensation. (EPZA vs. Dulay)

c. Need to appoint commissioners  it is mandatory; except for Agrarian Reform

 This is done by the Court with the assistance of not more than three (3) commissioners. The
order fixing the just compensation on the basis of the evidence before, and findings of, the
commissioners would be final, too.
(Manila Electric Co. vs. Pineda)
 d. Form of compensation  money or cash; except bonds
 full payment of the just compensation had to be made first, conformably to the constitutional
requirement, before the title of expropriated property is transferred; compensation in cash or
bonds with an accessible bank (Association of Small Landowners vs. Sec. of Agrarian Reform)

e. Reckoning point of market value of the property  date of filing of the complaint or taking
whichever is earlier (as long the constitutional requirements for taking are complied); exception is
on RA 7160
 The general rule in determining “just compensation” in eminent domain is the value of the
property as of the date of the filing of the complaint, as follows:
“Sec. 4. Order of Condemnation. When such a motion is overruled or when any party fails to
defend as required by this rule, the court may enter an order of condemnation declaring that the
plaintiff has a lawful right to take the property sought to be condemned, for the public use or
purpose described in the complaint, upon the payment of just compensation to be determined as
of the date of the filing of the complaint x x x”
The general rule, however, admits of an exception: where this Court fixed the value of the
property as of the date it was taken and not at the date of the commencement of the expropriation
proceedings.
(NAPOCOR vs. Court of Appeals)

f. Entitlement of owner to interest  until full payment; payment of interest accrue; expropriation to
pay
 The owner of private property should be compensated only for what he actually loses; it is not
intended that his compensation shall extend beyond his loss or injury. And what he loses is only the
actual value of his property at the time it is taken. This is the only way the compensation to be paid
can be truly just; i.e., "just" not only to the individual whose property is taken, "but to the public,
which is to pay for it."
Thus, the value of petitioners' property must be ascertained as of 1960 when it was actually taken.
It is as of that time that the real measure of their loss may fairly be adjudged. The value, once fixed,
shall earn interest at the legal rate until full payment is effected, conformably with other principles
laid down by case law.
(Nepomuceno vs. City of Surigao)

g. Title to the property  only vested upon full payment of just compensation of the property
 No piece of land can be finally and irrevocably taken from an unwilling owner until
compensation is paid. This is in conformity with the just compensation requirement. (Visayan
Refining vs. Camus)

h. Right of landowners in case of non-payment of just compensation  recovery of property within 5

years from the judgment of non-payment
 In summation, while the prevailing doctrine is that “the non-payment of just compensation does
not entitle the private landowner to recover possession of the expropriated lots, however, in cases
where the government failed to pay just compensation within five (5) years from the finality of the
judgment in the expropriation proceedings, the owners concerned shall have the right to recover
possession of their property. (Republic vs. Vicente Lim)

i. Right to dismiss the complaint in eminent domain  right to dismiss is not a matter of right, it
needs the court approval
 Ordinarily, the dismissal of the expropriation case restores possession of the expropriated land
to the landowner. However, when possession of the land cannot be turned over to the landowner
because it is neither convenient nor feasible anymore to do so, the only remedy available to the
aggrieved landowner is to demand payment of just compensation. (NAPOCOR vs. Court of Appeals)

j. Right to repurchase or re-acquire property  it depends; if the public purpose has been
abandoned
 had a right to repurchase the same if the purpose for which it was expropriated is ended or
abandoned.
(Mactan-Cebu International Airport vs. Court of Appeals)

d. Expropriation under Section 18, Article XII

 Section 17. In times of national emergency, when the public interest so requires, the State may, during the emergency
and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately-owned public
utility or business affected with public interest.
 Section 18. The State may, in the interest of national welfare or defense, establish and operate vital industries and,
upon payment of just compensation, transfer to public ownership utilities and other private enterprises to be operated
by the Government.
  It is also settled that public interest on the occasion of a national emergency is the primary consideration when the
government decides to temporarily take over or direct the operation of a public utility or a business affected with public
interest. The nature and extent of the emergency is the measure of the duration of the takeover as well as the terms
thereof. It is the State that prescribes such reasonable terms which will guide the implementation of the temporary
takeover as dictated by the exigencies of the time. (Lopez vs. PIATCO)

4. Power of Taxation

a. Concept
 enforced proportional contributions from persons and property levied by the state by virtue of its sovereignty, for the
support of government and for all public needs
 importance of taxation derives from the unavoidable obligation of the government to protect the people and extend
benefits in the form of public projects and services
 the method by which enforced proportional contributions are exacted
 the power by which the sovereign, through its lawmaking body, raises revenue to defray the necessary expenses of
government
 a way of apportioning the costs of gov’t. among those who in some measure are privileged to enjoy its benefits and
must bear its burden
 a “symbiotic” relationship, whereby in exchange for the protection that the citizens get from the government, taxes
are paid
 this is because the government cannot exist without financial support; life-blood doctrine
 it is inherent as regards the national government
 SC: as long as this court sits, taxation cannot be used to destroys anybody’s property

* difference between taxes imposed in taxation powers and license and permits:
 if taxation power – it is for purpose of raising revenue
 if license and permits – it is for the purpose of regulation; it is practice of police power (only the regulation
expense (liberty and property)
note: Taxation should not be confiscatory and should not violate due process.

* System of Taxation: (based on the question: How can you give when you don’t have a source of income?)
 Progressive – as your income increases, the corresponding tax rates increases
 Equitable – tax is according to one’s capacity to pay; tax shall be strictly proportional to the relative value of
the property
 Uniformity – people and property of the same class is subjected to the same tax rate (same bracket, same tax
rate)

* Attributes/Characteristics of Taxation:
1. A forced charge, imposition or contribution and as such it operates in invitum (against an unwilling person).
Taxes are not in the nature of contracts between the party and party but grow out of a duty to, and are the
positive acts of the government, to the making and enforcing of which, the personal consent of individual
taxpayers is not required.
2. It is a pecuniary burden payable in money, but such a tax is not necessarily confined to those payable in
money.
3. It is levied by the legislative body of the State because the taxing power is pecuniary and exclusively legislative
in character.
4. It is assessed in accordance with some reasonable rule of apportionment, conformably with the constitutional
mandate on progressivity of a taxing system. (Article VI, Section 28[1], 1987 Constitution).
5. It reaches even the citizen abroad and his income earned from sources outside his State; as well as all income
earned in the taxing State, whether by citizens or aliens, and all immovable and tangible personal properties
found in its territory, as well as tangible personal property owned by persons domiciled therein, are subject to
its taxing power (Justice Cruz, Constitutional Law, 2000 edition, 86)
6. A tax is levied for a public purpose as taxation itself involves a burden to provide revenue for public purposes
of a general nature.

* Nature of taxing power:

 Inherent.  The power to tax, an inherent prerogative, has to be availed of to assure the performance of vital
state functions. It is the source of the bulk of public funds. Taxes being the lifeblood of the government, their
prompt and certain availability is of the essence.
 High prerogative of sovereignty.  As the power of taxation is a high prerogative of sovereignty, the
relinquishment is never presumed and any reduction or diminution thereof with respect to its mode or its rate
must be strictly construed, and the same must be coached in clear and unmistakable terms in order that it
may be applied.
 Legislative.  Taxing power is peculiarly and exclusively legislative in character and remains undiminished in
the legislative in character and remains undiminished in the legislature in the absence of an express surrender
thereof, clear and explicit in its terms.
  Constitutionally limited.  The power to tax is an attribute of sovereignty. It is the strongest of all the powers
of government. For all its plenitude, the power to tax has restrictions. The Constitution sets forth such limits.
Adversely affecting as it does property rights, both the due process and equal protection clauses may properly
be invoked to invalidate in appropriate cases a revenue measure.

* Purpose:
 Taxes are the lifeblood of the government and so should be collected without unnecessary hindrance. Despite the
natural reluctance to surrender part of one’s hard-earned income to the taxing authorities, every person who is able to
must contribute his share in the running of the government. The government for its part, is expected to respond in the
form of tangible and intangible benefits intended to improve the lives of the people and enhance their moral and
material values. This symbiotic relationship is the rationale of taxation and should dispel the erroneous notion that it is an
arbitrary method of exaction by those in the seat of power.

1. Revenue:  The purpose of taxation is to provide funds or property with which the State promotes the general
welfare and protection of its citizens. Raising of revenues is the principal object of taxation.
2. Non-Revenue:
a. Regulation:  Taxes may also be imposed for a regulatory purpose as for example, in the promotion,
rehabilitation and stabilization of industry which is affected with public interest.
b. Promotion of general welfare:  If objective and methods are alike constitutionally valid, no reason is seen
why the state may not be levy taxes to raise funds for their prosecution and attainment. Taxation may be
made to implement the state’s police power.
c. Reduction of social inequality:  Made possible through the progressive system of taxation where the
objective is to prevent the undue concentration of wealth in the hands of a few individuals.
d. Encourage economic growth:  In the realm of tax exemptions and tax reliefs, the purpose of taxation (the
power to tax being the power also not to tax) is to grant incentives or exemptions in order to encourage
investments and thereby promote the country’s economic growth.
e. Protectionism:  In some important sectors of the economy, taxes sometimes provide protection to local
industries like protective tariffs and customs duties.

* Scope/ Legislative taxing power or discretion extends to the following:

1. Subjects and objects of tax
2. Amount and rate of tax
3. Purpose for which taxes are to be levied
4. Apportionment of the tax ( general, limited to a particular locality, or mixed)
5. Situs (location) of taxation
6. Manner and mode of enforcement and collection

b. Who may exercise?

 primary the Congress because Taxing power is peculiarly and exclusively legislative in character and remains
undiminished in the legislative in character and remains undiminished in the legislature in the absence of an express
surrender thereof, clear and explicit in its terms

* Exceptions:
1. can be delegated to the President (Art. VI, Sec. 28 par. 2)
- tariff powers of the President
2. Local Government Units can also exercise and impose taxes without Congress’ delegation (Art. X, Sec. 5) to
ensure local autonomy
- this is self-executing, thus there is no need for a law in delegating such power
- this includes the barangay

c. Limitations on the power of taxation

1) Should not be confiscatory
2) Should not be uniform and equitable
3) Should be for public purpose

* basic limitations:
 for public purpose only
 inherently legislative
 government is exempt from taxation
 it is territorial (within its jurisdiction)

* constitutional limitations:
 due process
 equal protection
 non-impairment of contracts
d. Double taxation
 There is double taxation when additional taxes are laid on the same subject by the same taxing jurisdiction during the
same taxing period and for the same purpose.
 Double taxation becomes obnoxious only where the taxpayer is taxed twice for the benefit of the same governmental
entity.

e. Tax exemptions
 Constitution  Exemption is granted religious and charitable institutions because they give considerable
assistance to the State in the improvement of the morality of the people and the care of the indigent and the
handicapped.
 Statutory (Congress)  Statutory exceptions are granted in the discretion of the legislature, but such law
should be passed with the concurrence of a majority of all the Members of Congress.

* Where the taxation is granted gratuitously, it may be validly revoked at will, with or without cause. However, if the
exemption is granted for valuable consideration it is deemed to partake of the nature of a contract and the obligation
thereof is protected against impairment.
* By its very nature, the law that exempts one from tax must be clearly expressed because the exemption cannot be
created by implication.

f. Distinguished from police power

 police power regulates both liberty and property; power of taxation only affects property rights
 the property taken in the exercise of the police power is destroyed because it is noxious or intended for noxious
purpose; the property taken under the power of taxation is intended for a public use or purpose and is therefore
wholesome
 the compensation of the person subjected to the police power is the intangible altruistic feeling that he has
contributed to the general welfare; the compensation involved in the other powers is more concrete, to wit, a full and
fair equivalent of the property expropriated or protection and public improvements for the taxes paid

 The power to tax is an incident of sovereignty and is unlimited in its range, acknowledging in its very nature no limits,
so that security against its abuse is to be found only in the responsibility of the legislature which imposes the tax on the
constituency that is to pay it. It is based on the principle that taxes are the lifeblood of the government, and their prompt
and certain availability is an imperious need. Thus, the theory behind the exercise of the power to tax emanates from
necessity; without taxes, government cannot fulfill its mandate of promoting the general welfare and well-being of the
people.
 On the other hand, police power is the power of the state to promote public welfare by restraining and regulating the
use of liberty and property. It is the most pervasive, the least limitable, and the most demanding of the three
fundamental powers of the State. The justification is found in the Latin maxims salus populi est suprema lex (the welfare
of the people is the supreme law) and sic utere tuo ut alienum non laedas (so use your property as not to injure the
property of others). As an inherent attribute of sovereignty which virtually extends to all public needs, police power
grants a wide panoply of instruments through which the State, as parens patriae, gives effect to a host of its regulatory
powers. We have held that the power to "regulate" means the power to protect, foster, promote, preserve, and control,
with due regard for the interests, first and foremost, of the public, then of the utility and of its patrons.
 The conservative and pivotal distinction between these two powers rests in the purpose for which the charge is made.
If generation of revenue is the primary purpose and regulation is merely incidental, the imposition is a tax; but if
regulation is the primary purpose, the fact that revenue is incidentally raised does not make the imposition a tax.
(Gerochi vs. Department of Energy)