In the case of Heirs of Alberto Suguitan vs. City of Mandaluyong, the Supreme Court ruled that a local government unit (LGU) must enact an ordinance, not merely a resolution, to exercise its power of eminent domain. This means the city’s attempt to expropriate property for the expansion of Mandaluyong Medical Center based on a resolution was invalid. This decision underscores the importance of strict adherence to legal procedures when the government seeks to take private property for public use, protecting individual property rights against potentially overreaching government action.

Taking Property: Does a Resolution Suffice or is an Ordinance Necessary?

The City of Mandaluyong sought to expropriate a parcel of land owned by Alberto Suguitan for the expansion of the Mandaluyong Medical Center. In October 1994, the city council issued Resolution No. 396, authorizing the mayor to initiate expropriation proceedings. When Suguitan refused to sell, the city filed a complaint for expropriation with the Regional Trial Court (RTC) of Pasig. Suguitan filed a motion to dismiss, arguing the city had not followed the proper legal procedures, specifically asserting that the Local Government Code requires an ordinance, not just a resolution, to exercise the power of eminent domain. The RTC denied Suguitan’s motion, leading to this case before the Supreme Court.

At the heart of this case is the interpretation of Section 19 of Republic Act (RA) No. 7160, also known as the Local Government Code of 1991. This section outlines the power of local government units to exercise eminent domain, stating:

A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, purpose, or welfare for the benefits of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws…

The Supreme Court emphasized that the power of eminent domain is inherently legislative and, when delegated to local government units, must be exercised strictly in accordance with the delegating law. The central question was whether a resolution was sufficient to initiate expropriation proceedings, or if an ordinance was required. The city argued that a resolution sufficed for initiating the proceedings, and an ordinance was only necessary to appropriate funds for payment after the court determined just compensation.

The Court disagreed with the City of Mandaluyong, highlighting the distinction between a resolution and an ordinance. The Supreme Court referred to the case of Municipality of Parañaque v. V.M. Realty Corporation, stating:

A municipal ordinance is different from a resolution. An ordinance is a law, but a resolution is merely a declaration of the sentiment or opinion of a lawmaking body on a specific matter. An ordinance possesses a general and permanent character, but a resolution is temporary in nature. Additionally, the two are enacted differently a third reading is necessary for an ordinance, but not for a resolution, unless decided otherwise by a majority of all the Sanggunian members.

Given this distinction, the Court concluded that the Local Government Code clearly requires an ordinance for the exercise of eminent domain, not merely a resolution. The Court also outlined the two stages of expropriation proceedings, referring to Rule 67 of the 1997 Revised Rules of Court:

(1) the first is concerned with the determination of the authority of the plaintiff to exercise the power of eminent domain and the propriety of its exercise in the context of the facts involved in the suit; it ends with an order, if not in a dismissal of the action, of condemnation declaring that the plaintiff has a lawful right to take the property sought to be condemned, for the public use or purpose described in the complaint, upon the payment of just compensation to be determined as of the date of the filing of the complaint;

(2) the second phase is concerned with the determination by the court of the just compensation for the property sought to be taken; this is done by the court with the assistance of not more than three (3) commissioners.

The Court emphasized that the determination of just compensation is the final stage, which can only be reached after the court initially finds that the plaintiff has the lawful right to take the property. Since an ordinance is required to initiate the exercise of eminent domain, it must precede the filing of a complaint in court.

The Supreme Court also addressed the City’s reliance on Article 36 (a), Rule VI of the Implementing Rules and Regulations (IRR) of the Local Government Code, which seemingly allows expropriation proceedings to begin with a resolution. The Court clarified that the law itself (the Local Government Code) prevails over any implementing rules, stating that the IRR’s discrepancy appeared to be a mere oversight. Therefore, the requirement of an ordinance remains paramount.

Ultimately, the Supreme Court granted the petition, reversing the trial court’s decision. The Court underscored that while it supports local autonomy, it cannot permit a local government to exercise eminent domain in violation of the very law granting it that power. This ruling reinforces the importance of protecting individual property rights and ensuring strict adherence to legal requirements when the government seeks to expropriate private property.

The ruling clarifies the procedural requirements for exercising the power of eminent domain, emphasizing the need for local government units to follow the law strictly, including the requirement of enacting an ordinance. This is crucial for protecting property owners from potential abuses of power. The decision doesn’t prevent the City of Mandaluyong from pursuing expropriation, but it mandates compliance with the legal requirements.

FAQs

What was the key issue in this case?	The key issue was whether a city can exercise its power of eminent domain through a resolution or if an ordinance is required. The Supreme Court ruled that an ordinance is required by the Local Government Code.
What is the difference between a resolution and an ordinance?	An ordinance is a law of a general and permanent character, requiring a third reading for enactment. A resolution is merely a declaration of sentiment or opinion, temporary in nature, and doesn’t require a third reading.
What is eminent domain?	Eminent domain is the right of a government to take private property for public use, even if the owner does not want to sell it. It is an inherent power of the state but is limited by the Constitution, which requires just compensation.
What did the Local Government Code say about eminent domain?	Section 19 of the Local Government Code (RA 7160) states that a local government unit may exercise the power of eminent domain “pursuant to an ordinance.”
Why did the City of Mandaluyong want to expropriate the property?	The City of Mandaluyong wanted to expropriate the property of Alberto Suguitan to expand the Mandaluyong Medical Center. The city argued that the expansion was necessary to provide better healthcare services to its residents.
What was Suguitan’s argument against the expropriation?	Suguitan argued that the city was not exercising its power of eminent domain in accordance with the law. He specifically asserted that the city needed an ordinance, not merely a resolution, to authorize the expropriation.
What does the ruling mean for other local governments?	This ruling clarifies that all local government units must enact an ordinance before initiating expropriation proceedings. Resolutions are insufficient to authorize the taking of private property.
Can the City of Mandaluyong still expropriate the property?	Yes, the City of Mandaluyong can still expropriate the property, but only if it first enacts the necessary ordinance. It must also comply with all other legal requirements for expropriation.

This case serves as a reminder that the exercise of governmental power, especially when it infringes on private property rights, must adhere strictly to the bounds of the law. Local government units must ensure they follow proper procedures, including the enactment of ordinances, to protect the rights of their constituents.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: HEIRS OF ALBERTO SUGUITAN VS. CITY OF MANDALUYONG, G.R. No. 135087, March 14, 2000