Public Corporations (SY 2022 - 2023)

by Atty. Ulpiano Z. Sarmiento

I. General Principles

A. Corporation
1. Definition
2. Classification
3. Criterion to determine Public Corporation
4. Classes of Public Corporations

Case:

Liban v. Gordon (G.R. No. 175352, 18 January 2011, 654 PHIL 680-738)
Boy Scouts of the Phil. v. COA (G.R. No. 177131, [June 7, 2011], 666
PHIL 140-224)
Philippine Society for the Prevention of Cruelty to Animals v. Commission
on Audit, et al. (G.R. No. 169752, 25 September 2007)
The Province of North Cotabato v. the Gov. of the Republic of the Phils.
Peace Panel (G.R. No. 183591, 14 October 2008)

Read: R.A. No. 11054, otherwise known as the “Organic Law for the
Bangsamoro Autonomous Region in Muslim Mindanao”

B. Principles of Local Autonomy

1. Principle of Local Authority (Section 25, Article II and Section 2, Article

X of the 1987 Constitution

Cases:
Basco v. PAGCOR (G.R. No. 91649, May 14, 1991)
Lina v. Pano (G.R. No. 129093, August 30, 2001)
Limbona v. Mangelin (G.R. No. 80391, February 28, 1989)
Disomangcop v. Datumanong (G.R. No. 149848, 25 November 2004)
Batangas CATV, Inc. v. Court of Appeals (G.R. No. 138810, 29 September
2004)

2. Power of the President over LGUs (Sec. 4, Art. X 1987 Constitution)

Cases:
Judge Dadole v. Commission on Audit (G.R. No. 125350, December 3,
2002)
Pimentel v. Aguirre, et al. (G.R. No. 132988, July 19, 2000), in relation to
Secs. 284-294, LGC.
Province of Batangas v. Romulo (G.R. No. 152774, 27 May 2004)
ACORD v. Zamora (G.R. No. 144256, 08 June 2005)
Kida v. Senate of the Philippines (G.R. No. 196271, 18 October 2011; and
Resolution dated 28 February 2012)
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Gov. Villafuerte, Jr. and Prov. Of Camsur v. Robredo, G.R. No. 195390, 10
December 2014

C. Municipal Corporations (aka Local Government Units [LGUs])

1. Elements
2. Dual Nature and Functions
3. Municipal Corporations/LGUs in the Philippines (Section 1, Article X,
Constitution)

D. Creation and Alteration of Municipal Corporations/LGUs

Cases:
Sema v. Comelec (G.R. No. 177597, 16 July 2008)
League of Cities of the Philippines v. Comelec (GR No. 176951, 18
November 2008; 21 December 2009; 24 August 2010; and 15
February 2011)
Navarro v. Ermita, G.R. 180050, 10 February 2010 and Resolution dated
12 April 2011; Min. Res., GR No. 180050, Navarro v. Executive
Secretary Ermita, September 11, 2012
Miranda v. Aguirre (G.R. No. 133064, 16 September 1999)
Samson v. Aguirre (G.R. No. 133076, 22 September 1999)
Alvarez v. Guingona (G.R. No. 118303, 31 January 1996)
Mariano v. COMELEC (G.R. Nos. 118577, 07 March 1995)
Cawaling Jr. v. COMELEC (G.R, No. 146319, October 26, 2001)
Aquino v. COMELEC (G.R. No. 189793, 07 April 2010)
Tan v. COMELEC (G.R. No. 73155, 11 July 1986)

E. The Local Government Code, as amended

1. Effectivity
2. Rules of Interpretation

II. General Powers and Attributes of LGUs

A. Sources of Powers
B. Governmental Powers
1. Police power aka General Welfare Clause (Sec. 16, LGC)

Cases:
Dela Cruz v. Paras (G.R. Nos. L-42571-72, 25 July 1983)
Binay v. Domingo (G.R. No. 92389, 11 September 1991)
Tano v. Socrates (G.R. No. 110249. 21 August 1997)
White Light Corp. v. City of Manila (G.R. No. 122846, 20 January 2009)
Social Justice Society v. Atienza, G.R. No. 156052. February 13,
2008; see also Social Justice Society (SJS) Officers v. Lim/Atienza
(G.R. No. 187836, 25 November 2014)

2. Taxing Power (cf., Local Taxation: Sec. 5 - 7, Art. X, Constitution;

Secs. 128-196, LGC)
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Cases:
Manila International Airport Authority v. Court of Appeals (G.R. No.
155650, 20 July 2006)
Mactan Cebu International Airport Authority v. Marcos (G.R. No.
120082, 11 September 1996)
City Government of Quezon City v. Bayan Telecommunications, Inc.
(G.R. No. 162015, 06 March 2006)
Drilon v. Lim (G.R. No. 112497, 04 August 1994)
Batangas City v. Pilipinas Shell Petroleum Corp. (G.R. No. 187631, 08
July 2015)

3. Eminent Domain (Sec. 19, LGC; Sec. 9, Article III, Constitution; Rule
97, Rules of Court)

Cases:
City Gov. of Quezon City v. Ericta (G.R. No. L-34915, 24 June 1983)
City of Cebu v. Spouses Apolonio (G.R. No. 142971, 07 May 2002)
Republic v. Court of Appeals (G.R. No. 146587, 02 July 2002)

4. Reclassification of Lands

Case: Department of Agrarian Reform v. Saranggani Agricultural Co.,

Inc. (G.R. No. 165547, 24 January 2007)

5. Closure and Opening of Roads (Sec. 21, LGC)

Cases:
Sangalang v. Intermediate Appellate Court (G.R. No. 71169, 25 August
1989)
MMDA v. Bel Air Village Assoc. Inc. (G.R. No. 135962, 27 March 2000)
Lucena Grand Central Terminal, Inc. v. JAC Liner, Inc. (G.R. No.
148339, 23 February 2005)

6. Legislative Power
(a) Requisites for valid ordinance

Cases:
City of Manila v. Laguio, Jr. (G.R. No. 118127, 12 April 2005)
Social Justice Society v. Atienza (G.R. No. 156052, 13 Feb.2008)

(b) Local initiative and referendum

7. Authority over Police Units

Section 6, Article XVI of the 1987 Constitution

C. Corporate Powers
1. To have continuous succession in its corporate name
2. To sue and be sued
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3. To have and use a corporate seal

4. To acquire and convey real or personal property
5. To enter into contracts
(a) Requisites
(b) Ultra vires contracts

III. Municipal Liability

A. Section 24, RA No. 7160

B. Liability for violation of law, contract, tort
C. Doctrine of implied municipal liability

IV. Local Officials

A. Provisions applicable to Elective and Appointive Local Officials

1. Prohibited Business and Pecuniary Interest
2. Practice of Profession

Cases:
Republic of the Philippines v. Rambuyong (G.R. No. 167810, 04
October 2010)
Catu v. Rellosa (A.C. No. 5738, 19 February 2008)

3. Prohibition Against Appointment

Case: Flores v. Drilon (G.R. No. 104732, 22June 1993)

B. Elective Local Officials

1. Qualifications/disqualifications

Jalosjos v. Comelec (G.R. Nos. 193237/193536, 09 October 2012)

Jalosjos v. Comelec (G.R. No. 205033, 18 June 2013)
Aratea v. Comelec (G.R. No. 195229, 09 October 2012)
Japzon v. Comelec (G.R. No. 180088. 19 January 2009)
Sobejana-Condon v. Comelec (G.R No. 198742, 10 August 2012)
Corodora v. Comelec (GR No. 176947, 19 February 2008)

2. Manner and Date of Election

Kida v. Senate of the Philippines (supra)

3. Term of Office

Abundo v. Commission on Elections (GR No. 201716, 08 January

2013)
Borja v. Comelec (G.R. No. 133495, 03 September 1998)
Aldovino v. Comelec (G.R. No. 184836, 23 December 2009)
Adormeo v. Comelec (G.R. No. 147927, 04 February 2002)
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Socrates v. Comelec (G.R. No. 154512, 12 November 2002)

Latasa v. Comelec (G.R. No. 154829, 10 December 2003)
Ong v. Alegre (G.R. No. 163295, 23 January 2006)
Mendoza v. Comelec (G.R. No. 149736, 17 December 2002)
Rivera III v. Comelec (G.R. No. 167591, 09 May 2007)
Dizon v. Comelec (G.R. No. 182088, 30 January 2009)
Bolos, Jr. v. Comelec (G.R. No. 184082, 17 March 2009)
Comelec v. Cruz (G.R. No. 186616, 20 November 2009)

4. Rules on Succession

Talaga v. Comelec (G.R. No. 196804, 09 October 2012)

Gamboa v. Aguirre (G.R. No. 134213, 20 July 1999)

5. Recall
6. Resignation
7. Discipline
(a) Grounds
(b) Jurisdiction
(c) Preventive suspension
(d) Removal
(e) Administrative appeal

Disciplinary Actions
A. Elective Local Officials (Secs. 60 – 68)
Cases: Ganzon v. Court of Appeals (200 SCRA 271)
Joson v. Torres (290 SCRA 279)
Salalima v. Guingona (257 SCRA 55)
Berces v. Executive Secretary (241 SCRA 539)
Malinao v. Reyes (256 SCRA 616)
Sanggunian Baranggay of Don Mariano Marcos v.
Martinez (G.R. No. 170626, March 3, 2008)
Lingating v. COMELEC (G.R. No. 153478, November 13,
2002)

B. Secs. 13, 21, and 24, R.A. 6770

Cases: Hagad v. Gozo-Dadole (G.R. No. 108072,
December 12, 1995)
Office of the Ombudsman v. Rodriguez (G.R. No. 172700, July
23, 2010)

C. Sec. 13, R.A. 3019

Case: Talaga, Jr. v. Sandiganbayan (G.R. No. 169888,
November 11, 2008)

D. Secs. 51 and 52, Subtitle A, Title I, Book V of Executive Order

No. 292, or the Administrative Code of 1987

(f) Doctrine of condonation

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Aguinaldo v. Santos (G.R. No. 94115, 21 August 1992)

Salumbines, Jr. v. Office of the Ombudsman (G.R. No. 180917, 23
April 2010)
Ombudsman Carpio-Morales v. CA and Binay (G.R. Nos. 217126-27,
10 November 2015)

C. Appointive Local Officials

1. Responsibility for Human Resources and Development
2. Discipline (Secs. 84 – 88, LGC)

Cases:
De Rama v. CA (G.R. No. 131136, February 28, 2001)
Plaza v. CA (G.R. No. 138464, January 18, 2008)
Atienza v. Villarosa (G.R. No. 161081, 10 May 2005)
People v. Sandiganbayan (G.R. No. 164185, 23 July 2008)
Sales v. Carreon (G.R. No. 160791, 13 February 2007)
Quirog v. Aumentado (G.R. No. 163443, 11 November 2008)
Montuerto v. Ty (G.R. No. 177736, 06 October 2008)
Provincial Government of Aurora v. Marco, G.R. No. 202331, 22 April
2015

V. Intergovernmental Relations

A. With the National Government and its agencies (read Sec. 11, Art. X,
Constitution)

Cases:
MMDA v. Viron Transportation Co., Inc. (G.R. No. 170656, 15 August
2007)
MMDA v. Garin (G.R. No. 130230. April 15, 2005)
Province of Rizal v. Executive Secretary (G.R. No. 129546, 13 December
2005)

B. With other LGUs

VI. Local Initiatives and Referendum

A. Local Initiative
1. Definition
2. Procedure
3. Limitations
B. Local Referendum
1. Definition