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G.R. No. L-38429 June 30, 1988

CARLOS BALACUIT, LAMBERTO TAN and SERGIO YU CARCEL, petitioners-appellants,

vs.
COURT OF FIRST INSTANCE OF AGUSAN DEL NORTE AND BUTUAN CITY, Branch 11, and the CITY
OF BUTUAN, respondents-appellees.

Facts:

Petitioners, managers of Maya and Dalisay theaters, prays that ordinance No. 640 passed by
the Municipal Board of the City of Butuan, which mandates to charge only half the price of a
movie ticket to children between seven and twelve, be declared unconstitutional, and therefore
void. Petitioners content that respondent committed ultra vires act and an invalid exercise of
police power. The Municipal Board is only to regulate and fix the amount of license fees for
theaters.

Respondents invoked the general welfare clause under the Local Government Code for the
furtherance and promotion of good order, comfort and convenience of the the public.

Issue:

Whether or not the power to regulate includes the authority to interfere in the fixing of prices
of admission.

Ratio Decidendi:

To invoke the exercise of police power, not only must it appear that the interest of the public
requires an interference with private rights, but the means adopted must be reasonably
necessary and not unduly oppressive upon individuals. The legislature may not, under the guise
of protecting public interest, arbitrarily interfere with private businesses.

A reduction in the price of admission would mean corresponding savings for the parents.
However, petitioners are the ones made to bear the cost of these savings. There is no
discernible relation between the ordinance and the promotion of public health, safety, morals
and general welfare. No person is under the compulsion to purchase a ticket. It is totally a
voluntary act. Ordinance 640, being unreasonable and undue restraint of trade, cannot be
upheld as valid under the guise of police power.