Laws on Public Corporation
Storm Sarmiento
SY 2025 - 2026
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.
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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)
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)
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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)
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)
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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
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. 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
V. Local Initiatives and Referendum
A. Local Initiative
1. Definition
2. Procedure
3. Limitations
B. Local Referendum
1. Definition
