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G.R. No. 131512 January 20, 2000Land Transportation Office (LTO) . !ity of "utuan#$%&OR' Re*istration of Tricyc+es LG-s ae te po/er to R$G-LT$ teoperation of tricyc+es for ire and to GRNT RN!$ for te operationtereof.!T Te an**unian* 4an*+un*sod (4) of "utuan on u*ust 1, 1662

passed an ordinance entit+ed 7n Ordinance Re*u+atin* te Operation ofTricyc+es for ire, proidin* 8ecanis8 for te issuance of rancise,Re*istration and 4er8it, and i8posin* 4ena+ties for 9io+ations tereof and foroter purposes.: Te ordinance proided for, a8on* oter tin*s, te pay8entof francise fees, fees for re*istration of te eic+e, and fees for te issuance ofa per8it for te driin* tereof. Te !ity of "utuan asserts tat ec. 126 andec.133 of te Loca+ Goern8ent !ode is teir ;asis for said ordinance andtat, said proisions autorip+ains tat one of te functions of te Nationa+ Goern8ent, tat , indeedas ;een transferred to LG-s is te francisin* autority oer tricyc+es?for?ireof te LTR" ;ut NOT te autority of te LTO to re*ister a++ 8otor eic+es and

to issue to @ua+ified persons of +icenses to drie suc eic+es.Te RT! of "utuan decreed an issuance of a 4$RAN$NT &RT ONJ-!TON a*ainst LTO proi;itin* and enBoinin* LTO, as /e++ as its e8p+oyeesand oter persons actin* in its ;ea+f, fro8 (a) re*isterin* tricyc+es and (;)issuin* +icenses to tricyc+e driers. Te ! sustained te t ria+ courtCs decision.Te aderse ru+in*s of ;ot !ourts pro8pted te LTO to fi+e an instant petitionfor reie/ on certiorari to annu+ and set aside te ear+ier !ourt decisions.

-$ &eter under te present set?up te po/er of te LTO to re*ister,tricyc+es in particu+ar, as /e++ as to issue +icenses for te driin* tereof as+i=e/ise deo+ed to Loca+ Goern8ent -nits.

$L' No, said po/ers Dto re*ister and issue +icensesE re8ain under LTOCse>c+usie Burisdiction.

Te re*istration and +icensin* functions are ested in te LTO (pursuant to rt. 3ec. F(d) D1E, 10 of R F13?Land Transportation and Traffic !ode) /i+efrancisin* and re*u+atory responsi;i+ities are ested in te LTR" (LandTransportation rancisin* and Re*u+atory "oard pursuant to $O 202).-nder te Loca+ Goern8ent !ode (specifica++y ec. F5H (H)(3)(9)), te Loca+Goern8ent -nits no/ ae te po/er to R$G-LT$ (to fi>, esta;+is orcontro+, to adBust ;y ru+e, 8etod or esta;+is 8ode to direct ;y ru+e orrestriction or to su;Bect to *oernin* princip+es or +a/s) te operation of tricyc+esfor ire and *rant francises tereof ;ut tey are sti++ su;Bect to te *uide+inesprescri;ed ;y te 'OT! ('epart8ent of Transportation and !o88unicationsunder rtic+e F5H(a) D3?9E of te R I10).Aunicipa+ity of 4arana@ue 9A Rea+ty G.R. No. 12IH20. Ju+y 20, 166H

4etition for reie/ on certiorariacts-nder a city counci+ reso+ution, te Aunicipa+ity of 4araa@ue fi+ed onepte8;er 20, 1663, a !o8p+aint for e>propriation a*ainst 4riate Respondent9.A. Rea+ty !orporation oer t/o parce+s of +and of 10,000 s@uare 8eters. Tecity preious+y ne*otiated for te sa+e of te property ;ut 9A didnCt accept.

Te tria+ court issued an Order dated e;ruary F, 166F, autoridec+aration.ccordin* to te respondent, te co8p+aint fai+ed to state a cause of action;ecause it /as fi+ed pursuant to a reso+ution and not to an ordinance as re@uired;y R I10 (te Loca+ Goern8ent !ode) and (;) te cause of action, if any,/as ;arred ;y a prior Bud*8ent or res Budicata. 4etitioner c+ai8ed tat resBudicata /as not app+ica;+e.Te tria+ court dis8issed te case. Te petitionerCs AR /as denied. Te !affir8ed.

ssues

1. &ON a reso+ution du+y approed ;y te 8unicipa+ counci+ as te sa8e forceand effect of an ordinance and /i++ not deprie an e>propriation case of a a+idcause of action.2. &ON te princip+e of res Budicata as a *round for dis8issa+ of case is notapp+ica;+e /en pu;+ic interest is pri8ari+y ino+ed.e+d No to 1st %es to 2nd. 4etition dis8issed.

Ratio1. 4etitioner contends tat a reso+ution approed ;y te 8unicipa+ counci+ for tepurpose of initiatin* an e>propriation case 7su;stantia++y co8p+ies /it tere@uire8ents of te +a/: ;ecause te ter8s 7ordinance: and 7reso+ution: aresynony8ous for 7te purpose of ;esto/in* autority DonE te +oca+ *oern8entunit trou* its cief e>ecutie to initiate te e>propriation proceedin*s in courtin te e>ercise of te po/er of e8inent do8ain.

To stren*ten tis point, te petitioner cited rtic+e 3, Ru+e 9 of te Ru+es andRe*u+ations 8p+e8entin* te Loca+ Goern8ent !ode, /ic proides 7f teLG- fai+s to ac@uire a priate property for pu;+ic use, purpose, or /e+faretrou* purcase, te LG- 8ay e>propriate said property trou* a reso+utionof te an**unian autoriecutie to initiate e>propriationproceedin*s.:!ourt?No. Te po/er of e8inent do8ain is +od*ed in te +e*is+atie ;ranc of*oern8ent, /ic 8ay de+e*ate te e>ercise tereof to LG-s, oter pu;+icentities and pu;+ic uti+ities. n LG- 8ay terefore e>ercise te po/er toe>propriate priate property on+y /en autori

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ec 16, R I10 +oca+ *oern8ent unit 8ay, trou* its cief e>ecutie and actin* pursuant toan ordinance, e>ercise te po/er of e8inent do8ain for pu;+ic use, or purpose,or /e+fare for te ;enefit of te poor and te +and+ess, upon pay8ent of Bustco8pensation, pursuant to te proisions of te !onstitution and pertinent +a/s.Tus, te fo++o/in* essentia+ re@uisites 8ust concur ;efore an LG- can e>ercise

te po/er of e8inent do8ain1. n ordinance is enacted ;y te +oca+ +e*is+atie counci+ autoriecutie, in ;ea+f of te LG-, to e>ercise te po/er of e8inent do8ainor pursue e>propriation proceedin*s oer a particu+ar priate property.2. Te po/er of e8inent do8ain is e>ercised for pu;+ic use, purpose or /e+fare,or for te ;enefit of te poor and te +and+ess.3. Tere is pay8ent of Bust co8pensation, as re@uired under ection 6, rtic+e of te !onstitution, and oter pertinent +a/s.F. a+id and definite offer as ;een preious+y 8ade to te o/ner of teproperty sou*t to ;e e>propriated, ;ut said offer /as not accepted.n te case at ;ar, te +oca+ cief e>ecutie sou*t to e>ercise te po/er ofe8inent do8ain pursuant to a reso+ution of te 8unicipa+ counci+. Tus, tere/as no co8p+iance /it te first re@uisite tat te 8ayor ;e autoriercise e8inent do8ain trou* a 8erereso+ution, it /ou+d ae si8p+y adopted te +an*ua*e of te preious Loca+Goern8ent !ode. "ut !on*ress did not. n a c+ear dier*ence fro8 tepreious Loca+ Goern8ent !ode, ection 16 of R I10 cate*orica++y re@uirestat te +oca+ cief e>ecutie act pursuant to an ordinance.Aoreoer, te po/er of e8inent do8ain necessari+y ino+es a dero*ation of afunda8enta+ or priate ri*t of te peop+e.D35E ccordin*+y, te 8anifest can*e

in te +e*is+atie +an*ua*e ?? fro8 7reso+ution: under "4 33I to 7ordinance: underR I10 ?? de8ands a strict construction.&en te +e*is+ature interferes /it tat ri*t and, for *reater pu;+ic purposes,appropriates te +and of an indiidua+ /itout is consent, te p+ain 8eanin* ofte +a/ sou+d not ;e en+ar*ed ;y dou;tfu+ interpretation.4etitioner re+ies on rtic+e 3, Ru+e 9 of te 8p+e8entin* Ru+es, /ic re@uireson+y a reso+ution to autoriercise e8inent do8ain. t isa>io8atic tat te c+ear +etter of te +a/ is contro++in* and cannot ;e a8ended ;ya 8ere ad8inistratie ru+e issued for its i8p+e8entation.trict+y spea=in*, te po/er of e8inent do8ain de+e*ated to an LG- is in rea+itynot e8inent ;ut 7inferior: do8ain, since it 8ust confor8 to te +i8its i8posed ;yte de+e*ation, and tus parta=es on+y of a sare in e8inent do8ain.

2. s correct+y found ;y te !ourt of ppea+s and te tria+ court, a++ te re@uisitesfor te app+ication of res Budicata are present in tis case. Tere is a preiousfina+ Bud*8ent on te 8erits in a prior e>propriation case ino+in* identica+interests, su;Bect 8atter and cause of action, /ic as ;een rendered ;y acourt ain* Burisdiction oer it."e tat as it 8ay, te !ourt o+ds tat te princip+e of res Budicata, /ic finds

app+ication in *enera++y a++ cases and proceedin*s, cannot ;ar te ri*t of tetate or its a*ent to e>propriate priate property.$8inent 'o8ain can reac eery for8 of property /ic te tate 8i*t needfor pu;+ic use /eneer tey need it.&i+e te princip+e of res Budicata does not deni*rate te ri*t of te tate toe>ercise e8inent do8ain, it does app+y to specific issues decided in a preiouscase.n Repu;+ic s 'e #nect, te !ourt ru+ed tat te po/er of te tate or its a*entto e>ercise e8inent do8ain is not di8inised ;y te 8ere fact tat a prior fina+Bud*8ent oer te property to ;e e>propriated as ;eco8e te +a/ of te caseas to te parties. Te tate or its autoriercise its ri*t to e>propriate te sa8e property, once a++ +e*a+ re@uire8entsare co8p+ied /it.

4roince of !a8arines ur s !n January 1, 160 ? priate respondent 'ato /as appointed as 4riate *ent ;yte ten Go. of !a8arines ur, po+onio Aa+enitended a per8anent appoint8ent. e /as e>tended ate8porary appoint8ent, /ic /as rene/ed annua++y. January 1, 16IF K Go.+fe+or approed te can*e in 'atos e8p+oy8ent status fro8 te8porary toper8anent upon te +atters representation tat e passed te cii+ sericee>a8ination for superisin* security *uards. aid can*e of status o/eer,/as not faora;+y acted upon ;y te !ii+ erice !o88ission (!!) reasonin*tat 'ato did not possess te necessary cii+ serice e+i*i;i+ity for te office e

/as appointed to. is appoint8ent re8ained te8porary and no oterappoint8ent /as e>tended to i8.Aarc 1, 16I K 'ato /as indefinite+y suspended ;y Go. +fe+or after cri8ina+car*es /ere fi+ed a*ainst i8 and a prison *uard for a++e*ed+y conniin* andMorconsentin* to easion of sentence of so8e detention prisoners /o escapedfro8 confine8ent.T/o years after te re@uest for can*e of status /as 8ade, Ar. Lope ". Ra8a,ead of te !a8arines ur -nit of te !ii+ erice !o88ission, /rote te Go.a +etter infor8in* i8 tat te status of priate respondent 'ato as ;eencan*ed fro8 te8porary to per8anent, te +atter ain* passed te e>a8inationfor uperisin* ecurity Guard. Te can*e of status /as to ;e 8aderetroactie to June 11, 16IF, te date of re+ease of said e>a8ination.

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an**unian* 4an+a+a/i*an, suppressed te appropriation for te position ofssistant 4roincia+ &arden and de+eted priate respondents na8e fro8 tepetitioners p+anti++a.'ato /as su;se@uent+y ac@uitted of te car*es a*ainst i8. !onse@uent+y, ere@uested te Go. for reinstate8ent and ;ac=/a*es. is re@uest /as noteeded. 'ato fi+ed an action ;efore te RT!. RT! ordered te pay8ent of

;ac=/a*es of 'ato e@uia+ent to fie years. 4roince of !a8arines urappea+ed te decision to te !. !affir8ed RT!Cs decision. ence te presentpetition.

-$ &ON 'ato /as a per8anent e8p+oyee of petitioner 4roince of!a8arines ur at te ti8e e /as suspended on Aarc 1, 16I.

$L' NO'ato, ;ein* 8ere+y a te8porary e8p+oyee, is not entit+ed to is c+ai8 for;ac=/a*es for te entire period of is suspension. t te ti8e 'ato /asappointed ssistant 4roincia+ &arden on January 1, 16IF, e ad not yet@ua+ified in an appropriate e>a8ination for te afore8entioned position. uc+ac= of a cii+ serice e+i*i;i+ity 8ade is appoint8ent te8porary and /itout a

fi>ed and definite ter8 and is dependent entire+y upon te p+easure of teappointin* po/er. Te fact tat priate respondent o;tained cii+ sericee+i*i;i+ity +ater on is of no 8o8ent as is ain* passed te superisin* security*uard e>a8ination, did not ipso facto conert is te8porary appoint8ent into aper8anent one. &at is re@uired is a ne/ appoint8ent since a per8anentappoint8ent is not a continuation of te te8porary appoint8ent tese are t/odistinct acts of te appointin* autority Te +etter co88unicated ;y Ar. LopeRa8a to te Go. of !a8arines ur is a c+ear arro*ation of po/er proper+y;e+on*in* to te appointin* autority. !! as te po/er to approe ordisapproe an appoint8ent set ;efore it. t does not ae te po/er to 8a=e teappoint8ent itse+f or to direct te appointin* autority to can*e te e8p+oy8entstatus of an e8p+oyee. !! sou+d ae ended its participation in teappoint8ent of priate respondent on January 1, 16IF /en it confir8ed tete8porary status of te +atter /o +ac=ed te proper cii+ serice e+i*i;i+ity. &en

it issued te fore*oin* co88unication on Aarc 16, 16I, it stepped on te toesof te appointin* autority, tere;y encroacin* on te discretion ested so+e+yupon te +atter.

!T% O ANL 9 !9iencio to. 'o8in*o, r. died and /as ;uried in Nort !e8etery /ic +ot/as +eased ;y te city to rene to. 'o8in*o for te period fro8 June , 16I1 toJune , 2021. Te /ife paid te fu++ a8ount of te +ease. part, o/eer fro8te receipt, no oter docu8ent e8;odied suc +ease oer te +ot. "e+iein* tatte +ease /as on+y for fie years, te city certified te +ot as ready fore>u8ation. On te ;asis of te certification, Josep e+8ut autoriu8ation and re8oa+ of te re8ains of 9icencio. is ;ones /ere p+aced in a

;a* and =ept in te ;ode*a of te ce8etery. Te +ot /as a+so +eased to anoter+essee. 'urin* te ne>t a++ sou+s day, te priate respondents /ere soc=ed tofind out tat 9icencioCs re8ains /ere re8oed. Te ce8etery to+d rene to +oo=for te ;ones of te us;and in te ;ode*a. **rieed, te /ido/ and teci+dren ;rou*t an action for da8a*es a*ainst te !ity of Aani+a $an*e+ineua of te !ity ea+t Office er*io Aa++ari, officer?in?car*e of te Nort

!e8etery and Josep e+8ut, te +atters predecessor as officer?in?car*e ofte said ;uria+ *rounds o/ned and operated ;y te !ity Goern8ent of Aani+a.Te court ordered defendants to *ie p+aintiffs te ri*t to 8a=e use of anoter+ot. Te ! affir8ed and inc+uded te a/ard of da8a*es in faor of te priaterespondents.

-$ &eter or not te operations and functions of a pu;+ic ce8etery are a*oern8enta+, or a corporate or proprietary function of te !ity of Aani+a

$L' t is under te proprietary functions of te !ity of Aani+a.4etitioners a++e*ed in teir petition tat te Nort !e8etery is e>c+usie+ydeoted for pu;+ic use or purpose as stated in ec. 31 of te !o8pi+ation of teOrdinances of te !ity of Aani+a. Tey conc+ude tat since te !ity is a po+itica+

su;diision in te perfor8ance of its *oern8enta+ function, it is i88une fro8tort +ia;i+ity /ic 8ay ;e caused ;y its pu;+ic officers and su;ordinatee8p+oyees. 4riate respondents 8aintain tat te !ity of Aani+a entered into acontract of +ease /ic ino+es te e>ercise of proprietary functions /it reneto. 'o8in*o. Te city and its officers terefore can ;e sued for any?io+ation ofte contract of +ease.Te !ity of Aani+a is a po+itica+ ;ody corporate and as suc endo/ed /it tefacu+ties of 8unicipa+ corporations to ;e e>ercised ;y and trou* its city*oern8ent in confor8ity /it +a/, and in its proper corporate na8e. t 8ay sueand ;e sued, and contract and ;e contracted /it. ts po/ers are t/ofo+d incaracter?pu;+ic, *oern8enta+ or po+itica+ on te one and, and corporate,priate and proprietary on te oter. Goern8enta+ po/ers are tose e>ercisedin ad8inisterin* te po/ers of te state and pro8otin* te pu;+ic /e+fare andtey inc+ude te +e*is+atie, Budicia+, pu;+ic and po+itica+. Aunicipa+ po/ers on te

one and are e>ercised for te specia+ ;enefit and adanta*e of te co88unityand inc+ude tose /ic are 8inisteria+, priate and corporate. n connection/it te po/ers of a 8unicipa+ corporation, it 8ay ac@uire property in its pu;+icor *oern8enta+ capacity, and priate or proprietary capacity. Te Ne/ !ii+!ode diides suc properties into property for pu;+ic use and patri8onia+properties (rtic+e F23), and furter enu8erates te properties for pu;+ic use asproincia+ roads, city streets, 8unicipa+ streets, te s@uares, fountains, pu;+ic/aters, pro8enades, and pu;+ic /or=s for pu;+ic serice paid for ;y saidproisions, cities or 8unicipa+ities, a++ oter property is patri8onia+ /itoutpreBudice to te proisions of specia+ +a/s. Tus in Torio . ontani++a, te !ourtdec+ared tat /it respect to proprietary functions te sett+ed ru+e is tat a8unicipa+ corporation can ;e e+d +ia;+e to tird persons e> contractu.

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-nder te fore*oin* considerations and in te a;sence of a specia+ +a/, teNort !e8etery is a patri8onia+ property of te !ity of Aani+a. Tead8inistration and *oern8ent of te ce8etery are under te !ity ea+tOfficer, te order and po+ice of te ce8etery, te openin* of *raes, nices, orto8;s, te e>u8in* of re8ains, and te purification of te sa8e are under tecar*e and responsi;i+ity of te superintendent of te ce8etery. &it te acts of

do8inion, tere is no dou;t tat te Nort !e8etery is /itin te c+ass ofproperty /ic te !ity of Aani+a o/ns in its proprietary or priate caracter.urter8ore, tere is no dispute tat te ;uria+ +ot /as +eased in faor of tepriate respondents. ence, o;+i*ations arisin* fro8 contracts ae te force of+a/ ;et/een te contractin* parties. Tus a +ease contract e>ecuted ;y te+essor and +essee re8ains as te +a/ ;et/een te8. Terefore, a ;reac ofcontractua+ proision entit+es te oter party to da8a*es een if no pena+ty forsuc ;reac is prescri;ed in te contract.

an 'ie*o . Aunicipa+ity of NauBan, Orienta+ Aindoroacts Te 8unicipa+ity of NauBan issued Reso+ution F a/ardin* te concessionof te "utas Rier and te NauBan La=e to an 'ie*o. !ontract 5 years, fro8January 1, 16FH to 'ece8;er 31, 1652, +ease of te e>c+usie prii+e*e of

erectin* fis corra+s a+on* te "utas Rier ;e*innin* fro8 its Bunction /it tean *ustin Rier up to te NauBan La=e itse+f, for annua+ renta+ of 42,300.00.-pon petition ;y te +essee, o/eer, te said counci+ reduced te annua+ renta+;y 20P ;y irtue of Reso+ution 56, series of 16F6. On epte8;er 5, 1650, te+essee re@uested for a fie?year e>tension of te ori*ina+ +ease period. Tere@uest /as, for so8e ti8e, +eft pendin* ;efore te 8unicipa+ counci+, ;ut on'ece8;er 1, 1651, after te +essee ad reiterated is petition for e>tension, forte reason tat te typoon &anda, /ic too= p+ace tat 8ont, destroyed8ost of is fis corra+s, te counci+ adopted Reso+ution 222, series of 1651e>tendin* te +ease for anoter fie (5) years ;e*innin* January 1, 1652, /itte e>press condition tat te p+aintiff /ou+d /aie te prii+e*e to see= forreduction of te a8ount of rent /ic /as to ;e ;ased on te ori*ina+ contract.fter te reso+ution ad ;een approed ;y te 4roincia+ "oard of Orienta+Aindoro, te +essor and te +essee, on 'ece8;er 23, 1651, contracted for te

e>tension of te period of te +ease. Te contract /as approed and confir8edon 'ece8;er 26, 1651 ;y Reso+ution 226, series of 1651, of te 8unicipa+counci+ of NauBan /ose ter8 /as ten a;out to e>pire. 4ursuant to te saidcontract, te +essee fi+ed a surety ;ond of 452,000.00 and ten reconstructedis fis corra+s and stoc=ed te NauBan La=e /it ;a*us fin*er+in*s.On January 2, 1652, te 8unicipa+ counci+ of NauBan, tis ti8e co8posed of ane/ set of 8e8;ers, adopted Reso+ution 3, series of 1652, reo=in* Reso+ution222, series of 1651. On te sa8e date, te ne/ counci+ a+so passed Reso+ution11, reo=in* Reso+ution 226 of te o+d counci+ /ic confir8ed te e>tension ofte +ease period. Te +essee re@uested for reconsideration and reca++ ofReso+ution 3, on te *round, a8on* oters, tat it io+ated te contract e>ecuted;et/een i8 and te 8unicipa+ity on 'ece8;er 23, 1651, and, terefore,

contrary to rtic+e , section 1, c+ause 10 of te !onstitution. Te re@uest,o/eer, /as not *ranted.On epte8;er F, 1652, te +essee instituted tis proceedin*s in te court ;e+o/see=in* to ae Reso+ution 3, series of 1652, of te 8unicipa+ counci+ of NauBan,dec+ared nu++ and oid, for ;ein* unconstitutiona+, and prayin* for an orderenBoinin* te defendant 8unicipa+ity fro8 conductin* a pu;+ic ;iddin* for te

+easin* of te NauBan fiseries to any person oter tan te p+aintiff durin* teperiod fro8 January 1, 1653 to 'ece8;er 31, 165I.ns/erin* te co8p+aint, te defendant asserted te a+idity of Reso+ution 3,series of 1651, a++e*in* ;y te /ay of specia+ defense tat te reso+utionautoritension, and dec+arin* Reso+ution 3, series of 1652, nu++and oid. Te 8unicipa+ity of NauBan as ta=en tis appea+.

-$ &ON Reso+ution No. 3, series of 1652, reo=in* Reso+ution 222, seriesof 1651, of te 8unicipa+ counci+ of NauBan is a+id.

$L' %$.Te +a/ (ec. 2323 of te Reised d8inistratie !ode) re@uires tat /en tee>c+usie prii+e*e of fisery or te ri*t to conduct a fis?;reedin* *round is*ranted to a priate party, te sa8e sa++ ;e +et to te i*est ;idder in te sa8e8anner as is ;ein* done in e>p+oitin* a ferry, a 8ar=et or a s+au*terouse;e+on*in* to te 8unicipa+ity. Te re@uire8ent of co8petitie ;iddin* is for tepurpose of initin* co8petition and to *uard a*ainst faoritis8, fraud andcorruption in te +ettin* of fisery prii+e*esTere is no dou;t tat te ori*ina+ +ease contract in tis case /as a/arded to tei*est ;idder, ;ut te reduction of te renta+ and te e>tension of te ter8 ofte +ease appear to ae ;een *ranted /itout preious pu;+ic ;iddin*.

!a+te> (4i+.), nc., et a+. s. 'e+*ado "ros., nc.te a8end8ent to an arrastrecontract /as dec+ared nu++ and oid on te *round tat it /as 8ade /itoutpreious pu;+ic ;iddin*. n so dec+arin*, tis !ourt as adopted te fo++o/in*opinion. . . it is te opinion of te !ourt tat te said a*ree8ent .. e>ecuted andentered into /itout preious pu;+ic ;iddin*, is nu++ and oid, and cannotaderse+y affect te ri*ts of tird parties . . . and of te pu;+ic in *enera+. Te!ourt a*rees /it te contention of counse+ for te p+aintiffs tat te duee>ecution of a contract after pu;+ic ;iddin* is a +i8itation upon te ri*t of tecontradictin* parties to a+ter or a8end it /itout anoter pu;+ic ;iddin*, foroter/ise /at /ou+d a pu;+ic ;iddin* ;e *ood for if after te e>ecution of acontract after pu;+ic ;iddin*, te contractin* parties 8ay a+ter or a8end tecontract or een cance+ it, at teir /i++Q 4u;+ic ;iddin*s are e+d for te protection

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of te pu;+ic, and to *ie te pu;+ic te ;est possi;+e adanta*es ;y 8eans ofopen co8petition ;et/een te ;idders. e /o ;ids or offers te ;est ter8s isa/arded te contract su;Bect of te ;id, and it is o;ious tat suc protectionand ;est possi;+e adanta*es to te pu;+ic /i++ disappear if te parties to acontract e>ecuted after pu;+ic ;iddin* 8ay a+ter or a8end it /itout anoterpreious pu;+ic ;iddin*.

&i+e in tat case /e ru+ed tat a+tou* te arrastre contract terein@uestioned autoriecuted in co8p+iance /it te +a/ /eresuc a8end8ents a+ter te ori*ina+ contract in so8e ita+ and essentia+particu+ar nas8uc as te period in a +ease is a ita+ and essentia+ particu+ar tote contract, /e ;e+iee tat te e>tension of te +ease period in tis case, /ic/as *ranted /itout te essentia+ re@uisite of pu;+ic ;iddin*, is not in

accordance /it +a/. nd it fo++o/s te Reso+ution 222, series of 1651, and tecontract autoritendin* te ori*ina+ fie?year +ease to anoter fieyears are nu++ and oid as contrary to +a/ and pu;+ic po+icy.&e a*ree /it te defendant?appe++ant in tat te @uestion Reso+ution 3 is notan i8pair8ent of te o;+i*ation of contract, ;ecause te constitutiona+ proisionon i8pair8ent refers on+y to contract +e*a++y e>ecuted. &i+e, apparent+y,Reso+ution 3 tended to a;ro*ate te contract e>tendin* te +ease, +e*a++yspea=in*, tere /as no contract a;ro*ated ;ecause, as /e ae said, tee>tension contract is oid and ine>istent.Te +o/er court, in o+din* tat te defendant?appe++ant 8unicipa+ity as ;eenestopped fro8 assai+in* te a+idity of te contract into /ic it entered on'ece8;er 23, 1651, see8s to ae oer+oo=ed te *enera+ ru+e tat . . . tedoctrine of estoppe+ cannot ;e app+ied as a*ainst a 8unicipa+ corporation toa+idate a contract /ic it as no po/er to 8a=e or /ic it is autoripended +ar*e su8s in preparation for perfor8ance. reason fre@uent+yassi*ned for tis ru+e is tat to app+y te doctrine of estoppe+ a*ainst a8unicipa+ity in suc case /ou+d ;e to ena;+e it to do indirect+y /at it cannot dodirect+y. +so, /ere a contract is io+atie of pu;+ic po+icy, te 8unicipa+itye>ecutin* it cannot ;e estopped to assert te ina+idity of a contract /ic asceded a/ay, contro++ed, or e8;arrassed its +e*is+atie or *oern8ent po/ers.s pointed out a;oe, pu;+ic ;iddin*s are e+d for te ;est protection of tepu;+ic and to *ie te pu;+ic te ;est possi;+e adanta*es ;y 8eans of openco8petition ;et/een te ;idders. Tus, contracts re@uirin* pu;+ic ;iddin* affect

pu;+ic interest, and to can*e te8 /itout co8p+yin* /it tat re@uire8ent/ou+d indeed ;e a*ainst pu;+ic po+icy. Tere is, terefore, notin* to p+aintiff?appe++ees contention tat te parties in tis case ;ein* in pari de+icto sou+d ;e+eft in te situation /ere tey are found, for a+tou* te parties are in paride+icto, yet te court 8ay interfere and *rant re+ief at te suit of one of te8,/ere pu;+ic po+icy re@uires its interention, een tou* te resu+t 8ay ;e tat

a ;enefit /i++ ;e deried ;y a p+aintiff /o is in e@ua+ *ui+t /it defendant. "utere te *ui+t of te parties is not considered as e@ua+ to te i*er ri*t of tepu;+ic, and te *ui+ty party to /o8 te re+ief is *ranted is si8p+y te instru8ent;y /ic te pu;+ic is sered.n ie/ of te fore*oin*, /e o+d tat te 8unicipa+ counci+ of NauBan actedari*t in adoptin* Reso+ution 3, series of 1652, no/ in @uestion. n consonance/it te princip+es enunciated a;oe, Reso+ution 56, series of 16FI, reducin*te renta+s ;y 20P of te ori*ina+ price, /ic /as a+so passed /itout pu;+ic;iddin*, sou+d +i=e/ise ;e e+d oid, since a reduction of te renta+ to ;e paid;y te +essee is a su;stantia+ a+ternation in te contract, 8a=in* it a distinct anddifferent +ease contract /ic re@uires te prescri;ed for8a+ity of pu;+ic ;iddin*.Tere see8s to ;e no necessity of passin* on te a+idity of Reso+ution F,series of 16FI, for defendant?appe++ant, apparent+y, did not 8ean to ae it

annu++ed, as 8ay ;e seen fro8 its prayer in te court ;e+o/ and a+so in tisappea+. t any rate, te a+idity of said reso+ution does not a+ter our findin* to teeffect tat Reso+ution 56, series of 16F6, and Reso+ution 222, series of 1651, arei++e*a+ and oid and tat Reso+ution 3, series of 1652, is a+id.