Torio vs.

Fontanilla
G.R. No. L-29993; 85 SCRA 399
October 23, 1978

Facts: 
         On October 21,1958, the Municipal Council of Malasiqui, Pangasinan, passed Resolution
No. 159  to managed the 1959 Malasiqui town fiesta celebration. The 1959 Malasiqui Town
fiesta executive committee was created, which in turn organized a sub-committee on
entertainment and stage.
A 'zarzuela' troupe of which Vicente Fontanilla was a member , arrived for their performance on
January 22. During the 'zarzuela ' the stage collapsed and Fontanilla was pinned underneath.
He immediately hospitalized, but died the following day.
Fontanilla's heirs filed a complaint to recover damages against the Municipality of Malasiqui, its
Municipal Council and all the Council's individual members.
The municipality invoked inter alia the defense that as a legally and duly organized public
corporation it performs sovereign functions and the holding of a town fiesta was an exercise of
its governmental functions from which no liability can arise to answer for the negligence of any
of its agents.
The councilors maintained that they merely acted as the municipality's agents in carrying out the
municipal ordinance and as such they are likewise not liable for damages as the undertaking
was not one for profit, furthermore, they had exercised due care and diligence in implementing
the municipal ordinance.
After trial, the RTC dismiss the complaint, concluding that the Executive Committee had
exercised due diligence and care in selecting a competent man for the construction of the stage,
and the collapse was due to process beyond the control of the committee. Consequently, the
defendants were not liable for the death of Vicente Fontanilla .Upon appeal, the court of
Appeals reversed the trial court's decision and ordered all the defendants-appellees to pay
jointly and severally the heirs of Vicente Fontanilla the sums of 12,000.00 by way of moral and
actual damages: 1200.00 its attorney's fees; and the cost.

Issue:
         Whether or not the Municipality of Malasiqui may be held liable.

Ruling: 
          Under Philippine laws, municipalities are political bodies endowed with the faculties of
municipal corporations to be exercised by and through their respective municipal governments
om conformity with law, and in their proper corporate name, they may inter alia sue and be
sued, and contract and be contracted with.
The powers of a municipality are two-fold in character, public, governmental or political on the
one hand; and corporate, private or proprietary on the other. Government powers are those
exercised by the corporation in administering the powers of the state and promoting the public
welfare. These include the legislative, judicial public, and political. Municipal  powers, on the
other hand are exercised for the special benefit and advantage of the community. These include
those who which are ministerial, private and corporate.
This distinction of powers are necessary in determining the liability of the municipality for the
acts of its agents which result in injury to third persons.
If the injury is caused in the course of the performance of a governmental function/duty, no
recovery can be had from the municipality unless there is an existing statue on the matter, nor
from its officers, so long as they performed their duties honestly and in good faith or that they
did not act wantonly and maliciously. With respect to proprietary functions, the settled rule is
that municipal corporation can be held liable to third person ex contract or ex delicto. They may
also be subject to suit upon contracts and its tort.