limitations on property rights

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Limitations on Property Rights -The inherent powers of the State are: (a) police power; (b) power of eminent domain; and (c) power of taxation -attribute of sovereignty -methods by which the State interferes with private property -exercised primarily by the legislature - necessary and indispensable, the State cannot function without it. Distinctions between the three: 1. Police power regulates both liberty and property; eminent domain and taxation ONLY affect property rights 2. Police power and taxation are exercised only by the government; eminent domain may be exercised by private entities -the legislature delegates the power to private entities like public utilities or railroads, and even to individuals for the purpose of acquiring access to their landlocked land 3. PROPERTY TAKEN IN POLICE POWER is usually noxious or intended for a noxious purpose and may thus be destroyed (without just compensation); while in eminent domain and taxation, the property is wholesome and devoted to public use or purpose LIMITATIONS: BILL OF RIGHTS: although in some cases the exercise of the power prevails over specific constitutional guarantees EMINENT DOMAIN ART. III, Sec. 1 No person shall be deprived of life, liberty, or property without the due process of law, nor shall any person be denied equal protection of the laws ART. III, Sec. 9 Private property shall not be taken for public use without just compensation Art. 435 No person shall be deprived of his property except by competent authority and for public use and always upon payment of just compensation. Should this requirement not first complied with, the courts shall protect, in a proper case, restore the owner in his possession. LGC. Sec. 19. Eminent Domain. - A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or welfare for the benefit of the poor and the landless, upon

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Page 1: Limitations on Property Rights

Limitations on Property Rights-The inherent powers of the State are: (a) police power; (b) power of eminent domain; and (c) power of taxation

-attribute of sovereignty -methods by which the State interferes with private property-exercised primarily by the legislature- necessary and indispensable, the State cannot function without it.

Distinctions between the three:1. Police power regulates both liberty and property; eminent domain and

taxation ONLY affect property rights

2. Police power and taxation are exercised only by the government; eminent domain may be exercised by private entities

-the legislature delegates the power to private entities like public utilities or railroads, and even to individuals for the purpose of acquiring access to their landlocked land

3. PROPERTY TAKEN IN POLICE POWER is usually noxious or intended for a noxious purpose and may thus be destroyed (without just compensation); while in eminent domain and taxation, the property is wholesome and devoted to public use or purpose

LIMITATIONS: BILL OF RIGHTS: although in some cases the exercise of the power prevails over specific constitutional guarantees

EMINENT DOMAINART. III, Sec. 1No person shall be deprived of life, liberty, or property without the due process of law, nor shall any person be denied equal protection of the laws

ART. III, Sec. 9Private property shall not be taken for public use without just compensation

Art. 435No person shall be deprived of his property except by competent authority and for public use and always upon payment of just compensation.

Should this requirement not first complied with, the courts shall protect, in a proper case, restore the owner in his possession.

LGC. Sec. 19. Eminent Domain. - A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws: Provided, however, That the power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted: Provided, further, That the local government unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair market value of the property based on the current tax declaration of the property to be expropriated: Provided, finally, That, the amount to be paid for the expropriated property shall be determined by the proper court, based on the fair market value at the time of the taking of the property. -It is also known as the power of expropriation-As distinguished from Police power:

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Police power is the power of the State to promote public welfare by restraining and regulating the use of liberty and propertyEminent domain is the inherent right of the State to condemn private property to public use upon payment of just compensation

-INHERENT and need not be granted by the Constitution-Sec 9 of Art. III mandated that private property shall not be taken for public use without just compensation is merely imposes a limit on the government’s exercise of its power and provides a measure of protection to the individual’s right to property

Due process of law: no person may be deprived of his property without due process of law

- There must be (1) appropriate expropriation proceedings and (2) payment of indemnity

- Strictly in favor of landowners: seizure and occupation of property without first serving process on the owners or occupants is so gross a violation that no claim by the corporation can be heard by way of defense to an action for damages for the unlawful trespass

REQUISITES OF EMINENT DOMAIN1. Power must be exercised by competent authority such as:

a. National Governmentb. Provincial Governmentc. The Municipal Governmentd. Persons or entities engaged in developing and exploiting mineral

resourcese. Persons or entities engaged in businesses affected with public

interest and specifically empowered under their charter (ex. MERALCO; PLDT)

2. For public use:a. Public use is a legislative and judicial question

i. If the legislature had specifically granted the expropriation of a certain or particular parcel of land for some specified public purpose, the courts cannot question it

ii. If the legislature conferred general authority to take the land for public use, necessity for the expropriation is an issue which is competent for the courts to decide

b. Requirement: reasonable necessity of the taking for the purpose in view

3. Upon payment of just compensation. This compensation is determined—

a. As of the time of the “taking”b. “Just compensation”: By taking into consideration the “market

value” which is the value that the property will bring when it is offered for sale by one who desires but is not obliged to sell it, and is bought by one who is under no necessity of having it, plus the consequential damages, if any, minus the consequential benefits, if any

c. Proprietary rights, except the right of occupation, are not affected by the condemnation proceedings until the title has passed to the petitioner, and that does not occur until the award of compensation for damages has been satisfied

i. It is a condition precedent to the taking of private property for use

d. The power of eminent domain may not be used as a shield in order to avoid the payment of a just and valid contractual obligation

e. Abandonment of action f. Termination of use : if land is expropriated with the condition

that when that purpose ended or abandoned, the property shall return to its former owner then the former owner requires the property so expropriated at termination

Page 3: Limitations on Property Rights

i. Of landowner was given a fee simple title then the land becomes absolute property of the expropriator,

POLICE POWER

Art. 436. When any property is condemned or seized by competent authority in the interest of health, safety, or security, the owner thereof shall not be entitled to compensation, unless he can show that such condemnation or seizure is unjustified

-Police power is the power of promoting public welfare by restraining and regulating the use of liberty and property-It is the most pervasive, the least limitable, and the most demanding of the three powers.-Justification:

1. salus populi est suprema lex: the welfare of the people is the supreme law

2. sic utere tuo ut alienum non laedas: use what is yours so as to not harm othersScope: everything essential to the public safety, health, and morals and to justify the destruction or abatement, by summary proceedings, of whatever may be regarded as a public nuisance

IT MAY BE NON-COMPENSABLE

Requisites:1. It must appear that the interests of the public generally (not just

those of a particular class, require such interference)2. That the means are reasonably necessary for the accomplishment

of a purpose and not unduly offensive upon individuals

Section 20. Reclassification of Lands. -(a) A city or municipality may, through an ordinance passed by the sanggunian after conducting public hearings for the purpose, authorize the reclassification of agricultural lands and provide for the manner of their utilization or disposition in the following cases: (1) when the land ceases to be economically feasible and sound for agricultural purposes as determined by the Department of Agriculture or (2) where the land shall have substantially greater economic value for residential, commercial, or industrial purposes, as determined by the sanggunian concerned: Provided, That such reclassification shall be limited to the following percentage of the total agricultural land area at the time of the passage of the ordinance:(1) For highly urbanized and independent component cities, fifteen percent (15%);(2) For component cities and first to the third class municipalities, ten percent (10%); and(3) For fourth to sixth class municipalities, five percent (5%): Provided, further, That agricultural lands distributed to agrarian reform beneficiaries pursuant to Republic Act Numbered Sixty-six hundred fifty-seven (R.A. No.

Page 4: Limitations on Property Rights

6657). otherwise known as "The Comprehensive Agrarian Reform Law", shall not be affected by the said reclassification and the conversion of such lands into other purposes shall be governed by Section 65 of said Act.(b) The President may, when public interest so requires and upon recommendation of the National Economic and Development Authority, authorize a city or municipality to reclassify lands in excess of the limits set in the next preceding paragraph.(c) The local government units shall, in conformity with existing laws, continue to prepare their respective comprehensive land use plans enacted through zoning ordinances which shall be the primary and dominant bases for the future use of land resources: Provided. That the requirements for food production, human settlements, and industrial expansion shall be taken into consideration in the preparation of such plans.(d) Where approval by a national agency is required for reclassification, such approval shall not be unreasonably withheld. Failure to act on a proper and complete application for reclassification within three (3) months from receipt of the same shall be deemed as approval thereof.(e) Nothing in this Section shall be construed as repealing, amending, or modifying in any manner the provisions of R.A. No. 6657.

Section 447. Powers, Duties, Functions and Compensation. -(a) The sangguniang bayan, as the legislative body of the municipality, shall enact ordinances, approve resolutions and appropriate funds for the general welfare of the municipality and its inhabitants pursuant to Section 16 of this Code and in the proper exercise of the corporate powers of the municipality as provided for under Section 22 of this Code, and shall:(4) Regulate activities relative to the use of land, buildings and structures within the municipality in order to promote the general welfare and for said purpose shall:(i) Declare, prevent or abate any nuisance;(ii) Require that buildings and the premises thereof and any land within the municipality be kept and maintained in a sanitary condition; impose penalties for any violation thereof, or upon failure to comply with said requirement, have the work done and require the owner, administrator or tenant concerned to pay the expenses of the same; or require the filling up of any land or premises to a grade necessary for proper sanitation;(iii) Regulate the disposal of clinical and other wastes from hospitals, clinics and other similar establishments;(iv) Regulate the establishment, operation and maintenance of cafes, restaurants, beerhouses, hotels, motels, inns, pension houses, lodging houses, and other similar establishments, including tourist guides and transports;(v) Regulate the sale, giving away or dispensing of any intoxicating malt, vino, mixed or fermented liquors at any retail outlet;(vi) Regulate the establishment and provide for the inspection of steam boilers or any heating device in buildings and the storage of inflammable and

Page 5: Limitations on Property Rights

highly combustible materials within the municipality;(vii) Regulate the establishment, operation, and maintenance of entertainment or amusement facilities, including theatrical performances, circuses, billiards pools, public dancing schools, public dance halls, sauna baths, massage parlors, and other places of entertainment or amusement; regulate such other events or activities for amusement or entertainment, particularly those which tend to disturb the community or annoy the inhabitants, or require the suspension or suppression of the same; or, prohibit certain forms of amusement or entertainment in order to protect the social and moral welfare of the community;(viii) Provide for the impounding of stray animals; regulate the keeping of animals in homes or as part of a business, and the slaughter, sale or disposition of the same; and adopt measures to prevent and penalize cruelty to animals; and(ix) Regulate the establishment, operation, and maintenance of funeral parlors and the burial or cremation of the dead, subject to existing laws, rules and regulations.

Section 468. Powers, Duties, Functions and Compensation.(a) The sangguniang panlalawigan, as the legislative body of the

province, shall enact ordinances, approve resolutions and appropriate funds for the general welfare of the province and its inhabitants pursuant to Section 16 of this Code in the proper exercise of the corporate powers of the province as provided for under Section 22 of this Code, and shall:

(2) Generate and maximize the use of resources and revenues for the development plans, program objectives and priorities of the province as provided for under Section 18 of this Code, with particular attention to agro-industrial development and country-wide growth and progress and relative thereto, shall:

(vi) Prescribe reasonable limits and restraints on the use of property within the jurisdiction of the province;

Art. 431. The owner of a thing cannot make use thereof in such manner as to injure the rights of a third person. (n)

Page 6: Limitations on Property Rights

Art. 432. The owner of a thing has no right to prohibit the interference of another with the same, if the interference is necessary to avert an imminent danger and the threatened damage, compared to the damage arising to the owner from the interference, is much greater. The owner may demand from the person benefited indemnity for the damage to him. (n)