COURSE OUTLINE: PUBLIC CORPORATIONi

Prelim Coverage:

1. GENERAL PRINCIPLES

1.1 Political Law [Definition & Subdivisions]. Local Autonomy. Constitutional Provisions [Art 2,
Sec 25; Art 10, Sec 2 of 1987 Philippine Constitution]. Cases [Basco v. Pagcor, 197 SCRA 52;
Limbonas v.Mangelin, 170 SCRA 786; Lina v. Pano, G.R. No. 129093, August 30, 2001; Judge
Dadole v. Commission on Audit, G.R. No. 125350, December 3, 2002]
1.2 Corporation Concept. Definition. Classification [Public, Private, Quasi-public]. Criterion &
Classes of Public Corporation [Quasi-public, Municipal]
1.3 Municipal Corporations. Definition. Elements [Law; Corporate Name, Sec 13, R.A. 7160;
Inhabitants; Territory]. Dual Nature & Functions [Public or Governmental; Private or Proprietary;
Cases Coyle v. Gray 30 Atlantic 728; Aguado v. City of Manila, 9 Phil 513; Vilas v. City of
Manila, 42 Phil 935; Municipality of Catbalogan v. Director of Lands, 17 Phil 216; Bara Lidasan
v.Comelec, 21 SCRA 496]. Philippine Municipal Corporations, Art 10, Sec 1 1987 Philippine
Constitution. [Province, Sec 459, R.A. 7160; City, Sec 448, R.A. 7160; Municipality, Sec. 440,
R.A. 7160; Barangay, Sec. 384, R.A. 7160; Autonomous Regions in Muslim Mindanao &
Cordilleras, Art 10, Sec 1, 1987 Philippine Constitution, Cases (Limbonas v. Mangelin, supra;
Datu Firdausi Abbas v.Comelec, 179 SCRA 287; Cordillera Broad Coalition v. Commission on
Audit, 181 SCRA 495; Ordillo v. Comelec, 192 SCRA 100); Special Metropolitan Political
Subdivisions, Art 10, Sec 11 of 1987 Philippine Constitution ]
1.4 Creation & Dissolution. Authority, Sec 6, R.A. 7160. Requisites/Limitations on
Creation/Conversion [Art 10, Sec 10 of 1987 Philippine Constitution (Plebiscite, Sec 10, R.A.
7160, Cases Tan v. Comelec, 142 SCRA 727; Padilla v. Comelec, 214 SCRA 735; Grino v.
Comelec, 213 SCRA 672; Lopez v. Comelec, 136 SCRA 633); Sec 7, R.A. 7160 (Income,
Alvarez v. Guingona, 252 SCRA 695; Population; Land Area, Mariano v. Comelec, 242 SCRA
211); Other constitutional limitations, e.g., Bill of Rights]. Corporate Existence, Sec 14, R.A.
7160. Division & Merger & Abolition, Secs 8 & 9 of R.A. 7160. De facto Municipal Corporations;
Requisites, Malabang v. Benito, 27 SCRA 533; Pelaez v. Audtior General, 15 SCRA 569. Attack
Invalidity, Malabang v. Benito, supra, Municipality of San Narciso, Quezon v. Mendez 239
SCRA 11, Municipality of Candihay, Bohol v. CA, 251 SCRA 530, Municipality of Jimenez,
Misamis Occidental v. Borja, 265 SCRA 182.
1.5 The Local Government Code (R.A. 7160). Effectivity, Sec 536. Scope, Sec 4. Declaration of
Policy, Sec 2. Operative Principles of Decentralization, Sec 3. Rules of Interpretation, Sec 5.
Salient Features of the Local Government Code.

Mid-term Coverage:

2. GENERAL POWERS & ATTRIBUTES OF LGUS

2.1 Sources [Art 2, Sec 25 & Art 10 Secs. 5,6 & 7; Statutes, e.g., RA 7160, Charters, Doctrine of
right of self-government for adhering states]. Classification [express, implied, inherent; public or
governmental, private or proprietary; intramural, extramural; mandatory, directory, ministerial,
discretionary]. Execution.
2.2 Governmental Powers. General Welfare, Sec 16, R.A. 7160. [Limitations, Magtajas v. Pryce
Properties, G.R. No. 111097, July 200, 1994, Tatel v. Municipality of Virac, Catanduanes, 207
SCRA 157, Solicitor General v. Metropolitan Manila Authority, 204 SCRA 837; Cases Tano v.
Socrates, G.R. No. 119249, August 21, 1997; Magtajas supra; Lim v. Pacquing, 240 SCRA 649,
Olivares v. Sandiganbayan, G.R. No. 118533, October 4, 1995, Laguna Lake Development
Authority v. CA, 251 SCRA 42; Binay v. Domingo, 201 SCRA 508; Villacorta v. Bernardo, 143
SCRA 480; Terrado v. CA, 131 SCRA373; Matalin Coconut v. Municipal Council of Malabang,
Lanao del Sur, 143 SCRA 404; Physical Therapy Organization of the Philippines v. Municipal
Board of Manila; Philippine Gamefowl Commission v. IAC, 146 SCRA 294, Daeng v. IAC; De la
Cruz v. Paras, 123 SCRA 569, Quezon City v. Ericta, 122 SCRA 759; Velasco v. Villegas, 120
SCRA 568; Ortigas v. Feati Bank, 94 SCRA 533, Sangalang v. Gaston; Balacuit v. CFI of
Agusan del Norte, 163 SCRA 182; Sangalang v. IAC, 176 SCRA 719]. Basic Services &
Facilities, Sec 17, R.A. 7160. Generate & Apply Resources, Sec 18, R.A. 7160; Secs 128-383,
Book 2, R.A. 7160; Fundamental Principles, Sec 130, R.A. 7160. Cases Philippine Petroleum
Corporation v. Municipality of Pililla, Rizal, 198 SCRA 82; Basco v. Pagcor, 197 SCRA 52;
Estanislao v. Costales, 196 SCRA 853; Drilon v.Lim, G.R. No. 112497, August 4, 1994; Mactan
Cebu International Airport Authority v. Marcos, G.R. No. 120082, September 11, 1996.
Fundamental Principles on Financial Affairs, Trasactions & Operations of LGU, Sec 305, R.A.
7160. Eminent Domain, Sec 19, R.A. 7160; Constitutional Limitations. Additional Limitations for
LGU. Moday v. CA, 243 SCRA 152; Municipality of Paranaque v. V.M. Realty Corporation, 292
SCRA 676; Filstream International Inc. v. CA, 284 SCRA 716; City of Mandaluyong v.
Francisco, G.R. No. 137152, January 29, 2001, R.A. 7279 (Urban Development and Housing
Act of 1992). Reclassification of Lands, Sec 20, R.A. 7160. Cases Patalinghug v. CA, 229
SCRA 554; Fortich v. Corona, 298 SCRA 678. Closure and Opening of Roads, Sec 21, R.A.
7160. Cases Pilapil v. CA, 216 SCRA 33; Macasiano v. Diokno, 212 SCRA 464; Cabrera v. CA,
195 SCRA 314; Cebu Oxygen & Acetylene Co. V. Berciles, 66 SCRA 481; Favis v. City of
Baguio, 29 SCRA 456; Cruz v. CA, 153 SCRA 142; Municipality of Cavite v. Rojas 30 Phil 602;
Calapan Lumber Company v. Community Sawmill Company 11 SCRA 346; Sangalang v. IAC,
176 SCRA 716. Local Legislative Power, Secs 48-59, R.A. 7160 [Ordinance & Resolution;
Requisites for Validity, Solicitor General v. Metropolitan Manila Authority, supra; Tatel v.
Municipality of Virac, supra; Magtajas v. Pryce Properties, supra; Approval; Review by
Sangguniang Panlalawigan; Review of Barangay Ordinances; Enforcement of Approved
Ordinances/Resolutions; Effectivity. Authority Over Police Units, Art 16, Sec 6 of 1987 Philippine
Constitution; Philippine National Police Act.
2.3 Corporate Powers, Sec 22, R.A. 7160. [Succession; Sue & Be Sued, City Council of Cebu
v. Cuizon, 47 SCRA 325; Municipality of Pililla, Rizal v. CA, 233 SCRA 484; Ramos v. CA, 269
SCRA 34; Corporate Seal; Acquire & Convey Property, City of Naga v. CA(1989); Salas v.
Jarencio, 48 SCRA 734; Rebuco v. Villegas, 55 SCRA 656; Espiritu v. Municipal Council of
Pozorrubio (Pangasinan) 102 Phil 866; Villanueva v. Castaneda, 154 SCRA 142; Dacanay v.
Asistio, 208 SCRA 404; Macasiano v. Diokno, supra; City of Angeles v. CA, 261 SCRA 90;
Presidential Decree 526; Contracts (Requisites; Ultra vires, Quezon City v. Lexber, Inc. G.R.
No. 141616, March 15, 2001; Manantan v. Municipality of Luna (La Union), 82 Phil 844; Ortigas
v. Feati Bank, 94 SCRA 533; Sangalang v. IAC, 176 SCRA 719; City of Manila v. IAC, 179
SCRA 428;Grants, Sec 23, R.A. 7160); Other Powers Granted By Law]

Semi-final Coverage:

3. MUNICIPAL LIABILITY

3.1 Rule, Sec 24, R.A. 7160. [Specific Legal Provisions on Liability (Art 2189 Civil Code of the
Philippines, Cases City of Manila v. Teotico, 22 SCRA 267; Jimenez v. City of Manila, 150
SCRA 510; Guilatco v. City of Dagupan, 171 SCRA 382; Art 2180, Par 6, Civil Code, Merritt v.
Government of the Philippine Islands, 34 Phil 311; Municipality of San Fernando, La Union v.
Judge Firme,195 SCRA 692; Art 34, Civil Code); Tort Liability (SC Decisions Pre-LGC:
Governmental Function, Palafox v. Province of Ilocos Norte, 102 Phil 1186, Palma v. Garciano;
Municipality of San Fernando, La Union v. Judge Firme, supra; Proprietary Function, Mendoza
v. De Leon, 33 Phil 508; Torio v. Fontanilla, 85 SCRA 599; City of Manila v. IAC, supra; City of
Cebu v. Judge Piccio, 110 Phil 558; Enciso v. Remo, 29 SCRA 580; Laganapan v. Asedillo, 154
SCRA 377). (Officials’ Personal Liability, City of Angeles v. CA,261 SCRA 90; Rama v. CA, 148
SCRA 496; Correa v. CFI Bulacan, 92 SCRA 312; Salcedo v. CA, 81 SCRA 408; Pilar v.
Sangguniang Bayan of Dasol, Pangasinan, 128 SCRA 173; Nemenzo v. Sabillano, 25 SCRA 1;
San Luis v. CA,1989). Violation of Law, Cases Abella v. Municipality of Naga, 90 Phil 385;
Racho v. Municipality of Ilagan, Isabela; Moday v. CA, supra. Contractual Liability, Rule, City of
Manila v. IAC, supra; Constructive Knowledge; Estoppel; Doctrine of Implied Municipal Liability,
Province of Cebu v. IAC, 147 SCRA 447; De Guia v. Auditor General, 44 SCRA 169; San Diego
v. Municipality of Najuan, Oriental Mindoro; Municipality of Pililla, Rizal v. CA, 233 SCRA 484;
Ramos v. CA, 269 SCRA 34; Mancenido v. CA, G.R. No. 118605, April 12, 2000.]

4. LOCAL OFFICIALS

4.1 Provisions Applicable to Elective & Appointive Officials. [Prohibited Business & Pecuniary
Interest, Sec 89, R.A. 7160, R.A. 6713; Practice of Profession, Sec 90, R.A. 7160, Javellana v.
DILG, 212 SCRA 475; Prohibition Against Appointment, Sec 94, R.A. 7160, Art 9-B, Sec 7,
1987 Philippine Constitution, Flores v. Drilon, supra, Art 9-B, Sec 7, 1987 Philippine
Constitution].
4.2 Elective Officials [Qualifications, Sec 39, R.A. 7160, Frivaldo v. Comelec, 257 SCRA 727,
Garvida v. Sales, 271 SCRA 767; Disqualifications, Sec 40, R.A. 7160, De la Torre v. Comelec,
258 SCRA 483; Marquez v. Comelec, 243 SCRA 538; Rodriquez v. Comelec, 259 SCRA 296;
Grego v. Comelec, 274 SCRA 481; Reyes v. Comelec, 254 SCRA 514. Manner of Election, Sec
41, R.A. 7160. Date of Election. Term of Office, R.A. 8524; Borja v. Comelec, G.R. No. 133495,
September 3, 1998; Adormeo v. Comelec, G.R. No. 147927, February 4, 2002; Socrates v.
Comelec, G.R. No. 154512, November 12, 2002. Rules on Succession, Secs 44-46, R.A. 7160
(Permanent Vacancies, Victoria v. Comelec, 229 SCRA 269; Menzon v. Petilla, 197 SCRA 251;
Navarro v. CA, G.R. No.141307, March 28, 2001; Farinas v. Barba, 256 SCRA 396; Garvida v.
Sales, 271 SCRA 767; Temporary Vacancies). Compensation, Sec 81, R.A. 7160. Recall.
Resignation, Sec 82, R.A. 7160. Grievance Procedure, Sec 83, R.A. 7160. Discipline Secs 60-
68, R.A. 7160 (Grounds for Disciplinary Action, Regidor v.Chiongbian, 173 SCRA 507; Salalima
v. Guingona, 257 SCRA 55. Complaints, Ganzon v. CA, 200 SCRA 271; Joson v. Torres, 290
SCRA 279; Salalima v. Guingona, supra; Berces v. Executive Secretary, 241 SCRA 539;
Malinao v. Reyes, 256 SCRA 616. Preventive Suspension, Joson v. Torres, supra; Hagad v.
Gozo-Dadole, G.R. No. 108072, December 12, 1995; Yabut v. Office of the Ombudsman, 233
SCRA 310; Rios v. Sandiganbayan, G.R. No. 129913, September 26, 1997. Penalty, Pablico v.
Villapando, G.R. No. 147870, July 31, 2002; Salalima v. Guingona, supra. Administrative
Appeal, Malinao v. Reyes, 255 SCRA 616; Mendoza v. Laxina, G.R. No. 146875, July 14, 2003.
Execution Pending Appeal, Berces v. Executive Secretary, 241 SCRA 539. Effect of Re-
Election, Malinao v. Reyes, 255 SCRA 616, Salalima v. Guingona, infra, Lingating v. Comelec,
G.R. No. 153475, November 13, 2002.
4.3 Appointive Local Officials. Responsibility for Human Resources & Development, De Rama
v. CA, G.R. No. 131136, February 28,2001; Dimaandal v. Commission on Audit, 291 SCRA
322. Officials Common to LGUS, Secs 469-490, R.A. 7160. Administrative Discipline,
Preventive Suspension, Disciplinary Jurisdiction, Garcia v. Pajaro, G.R. No. 141149, July 5,
2002.

Final Coverage:

5. INTERGOVERNMENTAL RELATIONS

5.1 National Government; Power of General Supervision; Coordination with National Agencies;
Consultation.
5.2 Philippine National Police, Republic Act 6975, as amended, Department of Interior and
Local Government Act of 1990.
5.3 Inter-Local Government Relations, Municipality of Pililla v. CA, 233 SCRA 484; Ramos v.
CA, 269 SCRA 34.
5.4 PO’s & NGO’s
5.5 Mandated Local Agencies, [Local School Board, Secs 98-101 of R.A. 7160, Commission on
Audit of the Province of Cebu v. Province of Cebu, G.R. No. 141386, November 29, 2001; Local
Health Board, Secs 102-105; Local Development Council, Secs 106-115; Local Peace and
Order Council, Sec 116].
5.6 Settlement of Boundary Disputes. Municipality of Jimenez v. Borja, 265 SCRA 182;
Municipality of Kananga v. Madrona, G.R. No. 141375, April 30, 2003; Mariano v. Comelec,
supra.

6. LOCAL INITIATIVE & REFERENDUM

6.1 Local Initiative. Definition. Procedure, Sec 13, R.A. 7160. Limitations [Local Initiative;
Sanggunian]
6.2 Local Referendum. Definition.
6.3 Authority of Courts.

7. Local Government Units

7.1 Barangay. Chief Officials & Offices. Milo v. Salanga, 152 SCRA 113; People v. Monton
(1998); Baranggay Assembly, Sec 398, R.A. 7160; Katarungang Pambarangay. Lupong
Tagapamayapa; Pangkat ng Tagapagkasundo; Subject Matter, Procedure, Conciliation,
Arbitration, Effects, Award, Secs 408-416, R.A. 7160. Sangguniang Kabataan. Creation,
Composition, Powers & Functions, Sec 428, R.A. 7160; Katipunan ng Kabataan; Pederasyon ng
mga Sangguniang Kabataan.
7.2 Municipality, Secs 440-447, R.A. 7160.
7.3 City, Secs 448-458, R.A. 7160.
7.4 Province, Secs 459-468, R.A. 7160.
7.5 Leauges of LGU/Officials. Liga ng mga Baranggay, Secs 491-495, Viola v. Alunan, G.R. No.
115844, August 15, 1997; Bito-onon v. Judge Nelia Yap Fernandez, G.R. No. 139813, January
31, 2001. Leauge of Municipalities, Secs 496-498. League of Cities, Secs 499-501. Leauge of
Provinces, Secs 502-503. Leauge and Federation of Local Elective Officials, Secs. 508-510.

Legal Sources: 1987 Philippine Constitution, Republic Act 7610 (The Local Government Code
of 1991), Civil Code of the Philippines, Supreme Court Decisions as listed and to be further
assigned, Republic Act 7279 (Urban Development and Housing Act of 1992), Republic Act
6975, as amended (Philippine National Police Act) and other pertinent laws.

References:
Books. The Local Government Code of 1991, Rufus Rodriguez, Rex Bookstore, Inc.;
Outline/Reviewer in Political Law, Antonio Nachura, JRMB Printing Press; The 1987 Philippine
Constitution A Reviewer-Primer, Joaquin J. Bernas, S.J., Rex Bookstore, Inc.; Political Law
Compendium, Jacinto D. Jimenez, Central Professional Books, Inc.
Web Sites. www.supremecourt.gov.ph, www.lawphil.net, www.chanrobles.com

Prepared By:

Atty. Jeffrey L. Ravelo

Petralba Ravelo & Cordero Law Offices
3/F JMR Building, Katipunan St., Cebu City
Telephone: 032-5165576
Telefax: 032-4177140
Email: jeff_ravelo@yahoo.com
i
Patterned after Antonio B. Nachura’s Oultine/Reviewer in Political Law