Professional Documents
Culture Documents
Fundamental Powers of the State What are the limitations of these powers?
1. May not be exercised arbitrarily to the prejudice of the bill of rights.
What are the Fundamental Powers the State? 2. Subject at all times to the limitations and requirements of the
1. Police Power Constitution and may in proper cases be annulled by the courts when
2. Power of Eminent Domain there is grave abuse of discretion.
3. Power of Taxation
Can Laws enacted in the exercise of police power be given What is eminent domain?
retroactive effect? It is the right, authority or power of the State as sovereign, or of those to
In Ortigas & Co v. CA, a law enacted in the exercise of police power to whom the power has been lawfully delegated to take private property
regulate or govern certain activities or transactions could be given for public use upon observance of due process of law and paying for
retroactive effect and may reasonably impair vested rights or contracts. the owner a just compensation to be ascertained according to law.
Police power legislation is applicable not only to future contracts, The conditions for the exercise of eminent domain ( T P J D )
but equally to those already in existence. a. Taking of private property
b. For public use
Non-impairment of contracts or vested rights clauses will have to c. Just compensation
yield to the superior and legitimate exercise by the State of the d. Observance of due process
police power.
Who exercises the power?
Who may exercise police power? Congress. However, the following may exercise this power by virtue of
General rule: Police power is inherently vested in the legislature. valid delegation:
Exception: By virtue of valid delegation of legislative power, it may be a. The president
exercised by the: b. Various local legislative bodies
1. President c. Certain public corporations like Land authority
2. Administrative Bodies d. Quasi-public corporations like Philippine National Railways
3. Lawmaking bodies on all municipal levels including the barangar.
Municipal Governments exercise this power under the general welfare In City of Manila v. Chinese Community of Manila, the right of
clause. expropriation is not an inherent power in a municipal corporation, and
Requisites for Valid Delegation of Police Power before it can exercise the right some law must exist conferring the
1. Express grant by law power upon it. When the courts come to determine the question they
2. Must not contrary to law must only find.
3. GR: Within territorial limits of LGUs a. That a law or authority exists for the exercise of the right of eminent
Except: when exercised to protect water supply. domain but
b. Also that the right or authority is being exercised in accordance with
What are the tests to determine the validity of police power? the law.
Fundamental Powers of the State - MAD
Who determines just compensation? Entitlement to the payment of just compensation is not, however,
In EPZA v. Dulay, The determination of just compensation is a judicial limited to the “owner”, but includes all those who have lawful
function. The executive department or the legislature may make the interest in the property to be condemned.
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 When does title to the property passes?
public use without just compensation, no statute, decree, or executive After payment. Therefore, the owner may still dispose of the same
order can mandate that its own determination shall prevail over the before payment.
court’s findings. Does non‐payment of just compensation entitle the private owner to
recover possession of the expropriated property?
When should assessment of the value of the property be determined? GR: Non‐payment by the government does not entitle private
In EPZA v. Dulay, The value of the property must be determined either owners to recover possession of the property because
at the time of taking or filing of the complaint, whichever comes first. expropriation is an in rem proceeding, not an ordinary sale,
but only entitle them to demand payment of the fair market
The Court is not bound by the Commissioners to be appointed by the value of the property.
court for the determination of just compensation. The court may
substitute its own estimate of the value of the property only for valid XPNS: ( R F )
reasons. 1. When there is deliberate refusal to pay just compensation
a. The commissioners applied illegal principles to the evidence 2. Government’s failure to pay compensation within 5 years
submitted to them. from the finality of the judgment in the expropriation
b. They have disregarded a clear preponderance of evidence proceedings. This is in connection with the principle that the
c. Where the amount allowed is either grossly inadequate or excessive. government cannot keep the property and dishonor the judgment.
(Republic v. Lim, G.R. No. 161656, June 29, 2005)
However, trial by commissioners is not mdatory in agrarian reform cases.
Is the owner entitled to the payment of interest? How about
Does the compensation to be paid in money? reimbursement of taxes paid on the property?
General Rule: Yes. Yes, the owner is entitled to the payment of interest from the time
Exception: In Association of Small Landowners v. Secretary of of taking until just compensation is actually paid to him. Taxes paid
Agrarian Reform, supra., 175 SCRA 343, it was held that in agrarian by him from the time of the taking until the transfer of title (which
reform, payment is allowed to be made partly in bonds. It is not an can only be done after actual payment of just compensation),
ordinary expropriation where only a specific property of relatively during which he did not enjoy any beneficial use of the property,
limited area is sought to be taken by the State from its owner for a are reimbursable by the expropriator.
specific and perhaps local purpose. It is rather a revolutionary kind of
expropriation
a) Sec. 28 (31 Art. VI: Charitable institutions, churches and parsonages License Fee Tax
or convents appurtenant thereto, mosques, non-profit cemeteries, and Police measure Revenue measure
all lands, buildings and improvements, actually, directly and exclusively Amount collected is limited to the cost Amount of tax may be unlimited
used for religious, charitable or educational purposes shall be exempt of permit and reasonable police provided it is not confiscatory
from taxation. regulation except when the license
fee is imposed on a non-useful
b) Sec. 4 (3) Art. XIV: All revenues and assets of non-stock, non-profit occupation
educational institutions used actually, directly and exclusively for It is paid for the privilege of doing Imposed on persons or property for
educational purposes shall be exempt from taxes and duties, x x x something, and may be revoked when revenue.
Proprietary educational institutions, including those co-operatively public interest so requires
owned, may likewise be entitled to such exemptions subject to the
limitations provided by law including restrictions on dividends and
provisions for reinvestment.
c) Sec. 4 (41 Art. XIV: Subject to conditions prescribed by law, ail grants,
endowments, donations, or contributions used actually, directly and
exclusively for educational purposes shall be exempt from tax.