Baguio vs Jadewell

7/25/2019 Baguio vs Jadewell

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G.R. No. 160025 April 23, 2014

SANGGUNIANG PANLUNGSOD NG BAGUIO CITY,Petitioner,vs. JAD!LL PAR"ING SYST#S CORPORATION,Respondent.

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G.R. No. 163052

JAD!LL PAR"ING SYST#S CORPORATION,Petitioner,vs. #AYOR BRNARDO #. $RGARA, CITY #AYOR O% BAGUIO, $IC #AYOR BTTY LOURDS %. TABANDA, $IC #AYOR O% BAGUIO,COUNCILOR BRAULIO D. YARANON, COUNCILOR L#R O. DATUIN, COUNCILOR ANTONIO R. TABORA, JR., COUNCILOR GALO D.!YGAN, COUNCILOR DILBRTO B. TN%RANCIA, COUNCILOR %DRICO J. #ANDAPAT, JR., COUNCILOR RIC&ARD A. CARINO,COUNCILOR %AUSTINO A. OLO!AN, COUNCILOR DL%IN $. BALAJADIA, COUNCILOR RU%INO #. PANAGAN, CITY SCRTARYRONALDO B. PR', SANGGUNIANG PANLUNGSOD NG BAGUIO, Respondents.

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G.R. No. 16410(

JAD!LL PAR"ING SYST#S CORPORATION,Petitioner,vs. CITY #AYOR BRAULIO D. YARANON,Respondent.

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G.R. No. 165564

JAD!LL PAR"ING SYST#S CORPORATION,Petitioner,vs. CITY #AYOR BRAULIO D. YARANON,Respondent.

D E C I S I O N

SRNO, CJ:

Before this Court are nine (9 Petitions invo!vin" essentia!!# the sa$e parties - offi%ia!s of the Cit# &overn$ent of Ba"uio and 'adee!! Par)in"S#ste$s Corporation ('adee!!. *he on!# part# here that is neither an offi%ia! of the Cit# &overn$ent of Ba"uio nor an offi%er of 'adee!! is for$er'ud"e +ernando i! Pa$intuan.

*he to prin%ipa! parties exe%uted a e$orandu$ of "ree$ent (O on /0 'une /111, here2# the Cit# of Ba"uio authori3ed 'adee!! tore"u!ate and %o!!e%t par)in" fees for on-street par)in" in the %it#, as e!! as to i$p!e$ent the insta!!ation of $odern par)in" $eters.

*he !e"a! disputes e$2odied in the nine Petitions 2e"an hen the San""unian" Pan!un"sod of Ba"uio Cit# (San""unian revo)ed the O throu"hCit# Reso!ution No. 145, Series of /11/ (Reso!ution 45, a!!e"in" su2stantia! 2rea%h of the O on the part of 'adee!!. *hen a#or !fredo er"aravetoed the Reso!ution. *he San""unian Pan!un"sod overrode the veto throu"h an unnu$2ered Reso!ution dated 65 pri! /11/. *hese tinReso!utions %onstitute hat e %a!! here as the first a%t of Res%ission 6of the O 2# the %it# offi%ia!s of Ba"uio. 'adee!! denied the 2rea%h and%o$$en%ed an a%tion 2efore the Re"iona! *ria! Court (R*C of Ba"uio, /7uestionin" the va!idit# of the O8s revo%ation and the San""unian8s%apa%it# to pass a reso!ution revo)in" the O.

*here as a se%ond a%t of res%ission that the %it# offi%ia!s of Ba"uio perfor$ed in /110, the %ir%u$stan%es of hi%h i!! 2e narrated !ater on.

hi!e the $ain %ase as under !iti"ation, and then under appea!, the parties fi!ed %onte$pt %har"es a"ainst ea%h other. Six of these %ases are part of

the %onso!idated Petitions 2efore us.

*hese nine hi"h!#-vo!u$inous %ases, hoever, a!! 2oi! don essentia!!# to :ust these five sets of !e"a! 7uestions re7uirin" reso!ution;

(a *he va!idit# or inva!idit# and !e"a! effi%a%# of Sa""unian8s to distin%t a%ts of res%ission of the O for the insta!!ation of the par)in" $eters and the !e"a!it# of the %o!!e%tion of par)in" fees 2ein"done 2# its par)in" attendants prior to the insta!!ation of the par)in" $eters at Burnha$ Par).60

On /1 De%e$2er /111, 'adee!! rote then i%e-a#or Danie! *. +ariGas to infor$ hi$ of the pro"ress of the deputi3ation 2# the Depart$ent of*ransportation and Co$$uni%ationsand *ransportation Offi%e (DO*C-*O of par)in" attendants re7uired for the i$p!e$entation of the O.'adee!! exp!ained that the# ere sti!! or)in" on the re7uired deputi3ation of 'adee!!8s par)in" attendants. Neverthe!ess, it %!ai$ed that its par)in"attendants ere authori3ed to %o!!e%t par)in" fees pendin" the a%tua! insta!!ation of the par)in" $eters. It a!so %!ai$ed that the par)in" $eters hadnot #et 2een insta!!ed 2e%ause the ne%essar# %ivi! or)s ere #et to 2e %o$p!eted. 65

Short!# thereafter, a %ase as fi!ed 2# Ed"ar . vi!a, et a!. ith the R*C-Ba"uio Cit# (Bran%h 06, assai!in" Ordinan%e No. 114-/111 asun%onstitutiona! and see)in" to restrain the Cit# &overn$ent of Ba"uio fro$ i$p!e$entin" the provisions of the O. It further a!!e"ed that the Cit#&overn$ent %ou!d not de!e"ate the desi"nation of pa# par)in" 3ones to 'adee!!, that the par)in" attendants dep!o#ed 2# 'adee!! ere notdeputi3ed, and that the 7uestioned ordinan%e %reates %!ass !e"is!ation as the desi"nated taxi and :eepne# stands ere dis%ri$inatori!# re$oved. *he%ase as do%)eted as Civi! Case No. ?9/-R. 6*his as dis$issed on $otion 2# 'adee!! :oined 2# the Cit# &overn$ent of Ba"uio. *he !oer %ourtde%!ared that Ordinan%e No. 114-/111 is %onstitutiona! and that a!! a%ts e$anatin" fro$ it are dee$ed @reasona2!e and non-dis%ri$inator#...havin"2een ena%ted in a%%ordan%e ith the poers "ranted to Ba"uio Cit# 2# !a.@69Co$p!ainants8 otion for Re%onsideration (R as denied.

On /? u"ust /116, Ed"ar vi!a, et a!., fi!ed a Ru!e 0 Petition for Certiorari, Prohi2ition and anda$us ith the Supre$e Court assai!in" the R*C8sdis$issa! of their Co$p!aint. *he %ase as do%)eted as &.R. No. 6?90?/. On 61 O%to2er /116, this Court issued a Reso!ution dis$issin" the petitionof vi!a, et a!. for fai!ure to state in their petition the $ateria! dates hen the# re%eived the appea!ed reso!ution and order, and to append the ori"ina!or %ertified true %opies of the 7uestioned reso!ution and order su2:e%t of their petition. /1*here as no reso!ution on the $erits. *he Reso!ution2e%a$e fina! and exe%utor# on / pri! /11/./6

%ase as a!so fi!ed 2# Ne!ia &. Cid a"ainst then a#or Bernardo er"ara, et a!. hen her vehi%!e as %!a$ped, toed aa#, and i$pounded 2#'adee!! after the !atter found her %ar to 2e i!!e"a!!# par)ed. She refused to pa# the %orrespondin" fees to 'adee!! and as a resu!t, the !atter refusedto re!ease her vehi%!e.//Cid fi!ed a %ase for rep!evin and 7uestioned the va!idit# of Ordinan%e No. 114-/111 and the O, as e!! as the authorit# of'adee!! to %!a$p donFto aa# vehi%!es hose oners refuse to pa# par)in" fees. *he %ase as do%)eted as Civi! Case No. 60-R and asassi"ned to Bran%h 5 of R*C-Ba"uio. On /? a# /11/, an O$ni2us Order as issued 2# this R*C that addressed severa! pendin" in%idents re!atedto the authorit# of 'adee!! to %!a$p donFto aa# vehi%!es. *he O$ni2us Order uphe!d 'adee!!8s authorit# to retain the vehi%!e of petitioner Ne!ia&. Cid pendin" her pa#$ent of the par)in" and toa"e fees to 'adee!!, and he!d that the authorit# of 'adee!! as !afu!!# provided in Ordinan%eNo. 114-/111 and the O. !so, the R*C-Ba"uio too) %o"ni3an%e of the ru!in" 2# this Court in &.R. No. 6?90?/ hi%h, in its $ista)en vie, uphe!dthe va!idit# of the 7uestioned ordinan%e and the O./4

H!ti$ate!#, 'adee!! as a2!e to insta!! no $ore than 6? par)in" $eters in three (4 areas of Ba"uio Cit#; six (0 on Session Road, five ( on >arrisonRoad and three (4 on a)e Drive. /?t the ti$e that these $eters ere insta!!ed, there ere a!read# ver2a! %o$p!aints 2ein" raised a"ainst 'adee!!2# the San""unian for the fo!!oin" a!!e"ed vio!ations;

a. +ai!ure to insta!! par)in" $eters for ea%h par)in" spa%e as spe%ified in Se%tion 4-+ of Ordinan%e No. 114-/111


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On 6 ar%h /116, 'adee!! rote to the Cit# a#or in response to the $entioned Reso!ution, infor$in" the said offi%e that the for$er had startedoperation of the off-street par)in" on / De%e$2er /111 and of the on-street par)in" on 6 De%e$2er /111.41On /5 'anuar# /116, 'adee!! a!sorote the Cit# *reasurer that the for$er had %o$p!eted insta!!ation of the par)in" $eters.46

In response to the !etter of 'adee!!, the Cit# *reasurer de$anded the re$ittan%e of Ba"uio8s share of the par)in" fees %o!!e%ted 2# 'adee!! sin%e itstarted operations. 'adee!! responded 2# sa#in" that it had %o$p!ied ith this o2!i"ation.4/

On 69 +e2ruar# /11/, the San""unian passed Reso!ution 45, 44 expressin" its intent to res%ind the O ith 'adee!!. *he said Reso!utionenu$erated in the @hereas@ %!auses the a!!e"ed vio!ations of 'adee!! pro$ptin" it to res%ind the O. It reads;

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>ERES, it no appears fro$ verified fa%ts that;

6. %ontrar# to its %o$$it$ent to insta!! a te%hno!o"i%a!!# 2ased P A D par)in" s#ste$, at no %ost to the Cit#, in%!udin" @su%h e7uip$ent andparapherna!ia to $eter the !en"th of usa"e of the affe%ted par)in" spa%es for purposes of pa#$ent of the par)in" fees@, 'adee!! hasinsta!!ed on!# fourteen (6? par)in" $eters (on!# 6/ of hi%h are or)in" in on!# three (4 streets, and 'adee!! does not intend to insta!!an#$ore Jsi%K< instead it has resorted as a ru!e to an ex%eptiona! %ir%u$stan%e of $anua! %o!!e%tion of par)in" fees 2# par)in" attendantsho, despite express provisions of the Ordinan%e, are not du!# deputi3ed 2# the DO*C-*O. Despite assuran%es to the >onora2!e Cit#a#or that 'adee!! ou!d stop %o!!e%tion of par)in" fees unti! the par)in" $eters have 2een du!# insta!!ed, 'adee!! %ontinues to %o!!e%tpar)in" fees $anua!!# 2# usin" undeputi3ed par)in" attendants to do the %o!!e%tionon. *a2ora, 2e it RESOED, asit is here2# reso!ved, to res%ind the e$orandu$ of "ree$ent (O exe%uted 2eteen the Cit# of Ba"uio and 'adee!! Par)in" S#ste$Corporation dated /0 'une /111 on the 2asis of the fore"oin" pre$ises and exer%isin" its ri"hts under Se%tion 6/ of the O on the su2:e%t of On-Street Par)in" exe%uted 2eteen the Cit# of Ba"uio and 'adee!! Par)in" S#ste$s Corporation dated /0 'une /111 and, $ore i$portant!#,

perfor$in" its dut# to prote%t and pro$ote the "enera! e!fare of the peop!e of Ba"uio Cit#.

RESOED +HR*>ER, to dire%t the Cit# e"a! Offi%er to %ause the proper noti%e of res%ission to 'adee!! Par)in" S#ste$s Corporation forthithand to ta)e a!! appropriate steps to i$p!e$ent and enfor%e the intent of this Reso!ution.

RESOED +HR*>ERORE, to infor$ a!! Cit# offi%ia!s and e$p!o#ees and a!! other persons %on%erned to 2e "uided a%%ordin"!#.4

On 6 ar%h /11/, the then Cit# a#or of Ba"uio, Bernardo . er"ara, vetoed Reso!ution 45, throu"h a !etter dated 6 ar%h /11/ addressed to thei%e-a#or, as Presidin" Offi%er of the San""unian, and its $e$2ers. a#or er"ara reasoned that it as pre$ature for the San""unian"Pan!un"sod to res%ind the O, 2e%ause the !atter provides for a $ini$u$ period of five #ears 2efore the ri"ht of res%ission %an 2e exer%ised< and,that the ri"ht of 'adee!! to due pro%ess as vio!ated due to the !a%) of opportunit# to hear the !atter8s side. *he Cit# a#or proposed a re-ne"otiationof the O ith 'adee!! as a so!ution to the pro2!e$.40

eanhi!e, on 64 ar%h /11/, the DO*CCordi!!era utono$ous Re"ion (DO*C-CR issued a %ease and desist order to 'adee!! prohi2itin" it

fro$ %!a$pin" don andFor toin" aa# vehi%!es in Ba"uio Cit# for vio!ation of traffi% ru!es and re"u!ations.45

On 65 pri! /11/, the San""unian reso!ved throu"h a Reso!ution of the sa$e date, to override the veto of the Cit# a#or, orded thus;

NO *>ERE+ORE, the San""unian" Pan!un"sod (Cit# Coun%i! in Re"u!ar Session asse$2!ed, 2# te!ve affir$ative votes %onstitutin" $ore thatJsi%K a to-thirds vote of a!! its e$2ers, has reso!ved to override, as it here2# overrides, the veto of >is >onor, a#or Bernardo . er"ara, of Cit#Reso!ution Nu$2ered 145, Series of /11/, entit!ed @Res%indin" the e$orandu$ of "ree$ent (O Exe%uted Beteen the Cit# of Ba"uio and'adee!! Par)in" S#ste$s Corporation Dated /0 'une /111.@4

!so at this ti$e, Brau!io D. =aranon, ho as then a $e$2er of the San""unian, re7uested a spe%ia! audit fro$ the Co$$ission on uditCordi!!erautono$ous Re"ion (CO-CR on the operations of 'adee!! as re"ards the pa# par)in" pro:e%t e$2odied in the O.

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On /5 a# /11/, 'adee!! fi!ed ith the R*C of Ba"uio Cit# a Ru!e 0 Petition for Certiorari, Prohi2ition and anda$us ith Pra#er for the Issuan%eof a rit of Pre!i$inar# In:un%tion, assai!in" the va!idit# of Reso!ution No. 145-/11/, hi%h res%inded the O 2eteen the San""unian" Pan!un"sodand 'adee!!.49*he %ase as do%)eted as Civi! Case No. /-R and as raff!ed off to R*C-Ba"uio (Bran%h 06.

On O%to2er /11/, the R*C Br. 06 pro$u!"ated its De%ision ?1findin" the San""unian8s res%ission of the O un!afu!. *he San""unian then fi!edan appea! assai!in" the R*C8s de%ision ith the Court of ppea!s< the %ase as do%)eted as C-&.R. SP No. 5?50.

eanhi!e, pendin" reso!ution of C-&.R. SP No. 5?50 2efore the C, the San""unian passed Reso!ution No. 19, Series of /114. *he reso!utionsou"ht the assistan%e of the DO*C-CR spe%ifi%a!!#, for it to ta)e i$$ediate a%tion a"ainst the offi%ers and personne! of 'adee!! for def#in" the 64ar%h /11/ %ease-and-desist Order it issued prohi2itin" the !atter fro$ %!a$pin" don andFor toin" aa# vehi%!es. ?6On /5 a# /114, Cit# a#orer"ara approved and si"ned Reso!ution No. 19-/114. In response, 'adee!! fi!ed a Petition for Indire%t Conte$pt ith the C a"ainst a#orer"ara, the San""unian and other !o%a! "overn$ent offi%ers. *he %ase as do%)eted as C-&.R. SP No. 554?6. *he ori"ina! petition as fo!!oed

2# three (4 supp!e$enta! petitions fi!ed 2# 'adee!! in the sa$e %ase.

On 5 'u!# /114, the C rendered a De%ision?/in C &.R. SP No. 5?50, affir$in" the assai!ed De%ision of the tria! %ourt hi%h de%!ared as inva!id theSan""unian8s res%ission of the O. *he San""unian fi!ed a otion +or Re%onsideration, 2ut this as denied 2# the C throu"h a Reso!ution dated? Septe$2er /114.?4""rieved 2# the denia! of their appea!, the San""unian fi!ed a Ru!e ? Petition for Revie on Certiorari ith this Court, see)in"to reverse and set aside the 5 'u!# /114 De%ision and its Reso!ution dated 1? Septe$2er /114 of the C. *he petition as do%)eted as &.R. No.6011/, the first of the %onso!idated petitions herein.??

In C-&.R. SP No. 554?6, the C dis$issed in a De%ision ?pro$u!"ated on / 'u!# /11? the %onte$pt petitions fi!ed 2# 'adee!! for !a%) of $erit.*he !atter8s otion +or Re%onsideration as !i)eise denied 2# the C. ?0'adee!! e!evated the dis$issa! of its %onte$pt petitions to this Court on De%e$2er /11? 2# fi!in" a Ru!e ? Petition for Revie on Certiorari. *he %ase as do%)eted as &.R. No. 60019?. *his is not a$on" the %onso!idatedpetitions herein.

On 64 'u!# /114, the CO-CR pro$u!"ated the re7uested Report. ?5*he Report8s o2:e%tive as to as%ertain %o$p!ian%e 2# the %ontra%tin" parties

the Cit# of Ba"uio and 'adee!! ith Ordinan%e No. 114-/111 and the O. *he CO-CR Report has 6/ findin"s, essentia!!# as fo!!os;

6 *he provisions of the O and its Supp!e$ent as re"ards the sharin" of the fees are %ontradi%tin", hen%e the share of the Cit#&overn$ent %annot 2e deter$ined


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prohi2ited 2# !a< this Exe%utive Order sha!! 2e in for%e and effe%t unti! the Cit# Coun%i!, as the !e"is!ative ar$ of the Cit# of Ba"uio, sha!! haveadopted appropriate re$edia! or %orre%tive $easures on the $atters and %on%erns spe%ified hereina2ove.

On 'u!# /11?, a#or =aranon issued a e$orandu$ 0?to the Cit# Dire%tor of the Ba"uio Cit# Po!i%e Depart$ent, dire%tin" the depart$ent to stopand prevent 'adee!! fro$ %!a$pin", toin", and i$poundin" vehi%!es< to arrest and fi!e %ri$ina! %har"es a"ainst 'adee!! personne! ho ou!dexe%ute the pros%ri2ed a%ts spe%ified in the said e$orandu$< and to %onfis%ate the e7uip$ent used 2# 'adee!! to %!a$p, to, or i$pound vehi%!esunder the authorit# of the res%inded O.

On 6/ 'u!# /11?, 'adee!! fi!ed its se%ond Petition for indire%t %onte$pt a"ain ith this Court, this ti$e a"ainst a#or =aranon for havin" issued thea2ove-%ited Order a!so for the sa$e reasons "iven in its first %onte$pt petition ith this Court. *he Petition as do%)eted as &.R. No. 60?615.

+urther$ore, on 6 'u!# /11?, 'adee!! fi!ed an ad$inistrative %ase a"ainst a#or =aranon 2efore the Offi%e of the President (OP. Do%)eted asCase No. OP 1?-&-/9?, it sou"ht the $a#or8s suspension and re$ova! fro$ offi%e. *he %ase a"ainst a#or =aranon as for his issuan%e of thefo!!oin"; (6 Exe%utive Order No. 116-1? dated 6 'u!# /11?< (/ the e$orandu$ dated 5 'u!# /11? !i$itin" the pa# par)in" 2usiness of 'adee!! to%ertain parts of Ba"uio Cit# BOND or a SHRE*= BOND fro$ a reputa2!e 2ondin" %o$pan# of indu2ita2!e so!ven%# in thea$ount of ONE >HNDRED *>OHSND PESOS (P611,111.11, ith ter$s and %onditions to 2e approved 2# the Court, ithin five ( da#sfro$ noti%e, otherise, the rit of pre!i$inar# $andator# in:un%tion herein issued sha!! H*O*IC= 2e !ifted.

NO *>ERE+ORE, =ou, JCit# a#or Brau!io D. =aranonK, #our a"ents, representatives andFor an# person or persons a%tin" upon #our orders or in#our p!a%e or stead, are here2# DIREC*ED to IEDI*E= REOPEN the streets andFor pre$ises operated andFor o%%upied 2# the respondentsand to !et the said streets and pre$ises re$ain OPEN, unti! further orders fro$ this Court.

On pri! /11, a#or =aranon issued a e$orandu$ 1dire%tin" Co!. Isa"ani Nere3, Dire%tor of the Ba"uio Cit# Po!i%e Distri%t, to %reate a spe%ia!tas) for%e to stop 'adee!! fro$ %!a$pin", toin", and i$poundin" vehi%!es in vio!ation of par)in" ru!es in Ba"uio Cit#< to i$pound the re%)erFtotru%)s used 2# 'adee!!.

On /1 pri! /11, this Court pro$u!"ated a Reso!ution in &.R. No. 6011/, findin" a#or =aranon "ui!t# of dire%t and indire%t %onte$pt. >e as %itedfor dire%t %onte$pt hen it as proven that he had su2$itted p!eadin"s 2efore this Court %ontainin" fa!sehoods. a#or =aranon had stated in hisCo$p!ian%e that the streets ere opened for 'adee!! to resu$e operations, 2ut upon inspe%tion these ere found to 2e %!osed. 6>e as a!so %itedfor indire%t %onte$pt, for havin" %ontinuous!# refused to %arr# out the rit issued 2# this Court to reopen the streets so 'adee!! %ou!d resu$eoperations./*his Court !i)eise fined a#or =aranon the a$ount of P61,111, hi%h he paid. *he Court further ordered the Nationa! Bureau of

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6/15

Investi"ation (NBI to i$$ediate!# arrest and detain a#or =aranon pendin" his %o$p!ian%e ith the 9 +e2ruar# /11 rit of pre!i$inar# $andator#in:un%tion issued 2# this Court, hi%h ordered the reopenin" of so$e streets so 'adee!! %ou!d %ontinue its operations. 4

On 61 u"ust /11, Benedi%to Ba!a:adia, et a!. fi!ed Civi! Case No. 019-R a"ainst 'adee!! 2efore the R*CBa"uio Cit#. *he %ase assu2se7uent!# raff!ed to Bran%h 4 of the R*C presided 2# 'ud"e +ernando i! Pa$intuan. ?Ba!a:adia, et a!. sou"ht to nu!!if# the O 2eteen'adee!! and the Cit# &overn$ent of Ba"uio and its ena2!in" ordinan%e, Ordinan%e No. 114-/111. *he %o$p!ainants a!so pra#ed for the issuan%e ofa *e$porar# Restrainin" Order (*RO and for a rit of pre!i$inar# in:un%tion a"ainst 'adee!!.

On 69 pri! /110, 'ud"e Pa$intuan issued an Order in Civi! Case No. 019-R "rantin" the pra#er of %o$p!ainants Ba!a:adia et a!. for the issuan%e ofa rit of Pre!i$inar# Prohi2itor# In:un%tion. *he in:un%tion as $eant to restrain 'adee!! fro$ pro%eedin" ith the supervision and %o!!e%tion ofpar)in", toin", and i$poundin" fees on the streets of Ba"uio Cit#. +urther, 'ud"e Pa$intuan ordered the ho!din" in a2e#an%e of the i$p!e$entationof Cit# Ordinan%e No. 114-/111 and the O.

On /5 pri! /110, 'adee!! fi!ed ith this Court a Ru!e 0 Petition for Certiorari, Prohi2ition, and anda$us a"ainst 'ud"e Pa$intuan 0for refusin" todis$iss Civi! Case No. 019-R. *he %ase as do%)eted as &.R. No. 65//6. On the sa$e da#, 'adee!! fi!ed a Petition as)in" this Court to %ite'ud"e Pa$intuan for %onte$pt. *his fourth %onte$pt %ase, a!2eit pri$ari!# a"ainst a $e$2er of the :udi%iar#, as do%)eted as &.R. No. 65//60.

On 69 'une /110, &.R. No. 65//6 as ordered %onso!idated ith &.R. Nos. 6011/, 6041/, 60?615, and 600?.5

On /4 'une /110, a#or =aranon rote 'adee!! a !etter de$andin" that it desist fro$ operatin" the pa# par)in" s#ste$ in Ba"uio Cit#.Si$u!taneous!#, he rote the San""unian, re7uestin" it to %an%e! Ordinan%e No. 114-/111, the ena2!in" ordinan%e for the O.

On /0 'une /110, 'adee!! fi!ed a Supp!e$enta! Petition in &.R. No. 65//6 %o$p!ainin" of 'ud"e Pa$intuan8s issuan%e of the fo!!oin" Orders inCivi! Case No. 019-R; (a Order dated /? pri! /1109dire%tin" the parties to fi!e a pre-tria! 2rief and settin" the pre-tria! of the %ase< (2 Order dated16 'une /11091infor$in" 'adee!! that pu2!i% respondent as not suspendin" the pro%eedin"s, 2e%ause he 2e!ieved he as not %overed 2# the ritissued 2# this Court< (% Order dated 6? 'une /11096upho!din" the rit he issued in the %ivi! %ase despite his re%eipt of a %op# of the rit of

pre!i$inar# in:un%tion issued 2# this Court< and (d Order dated 60 'une /110 9/dire%tin" 'adee!! to %o$p!# ith the rit of pre!i$inar# prohi2itor#in:un%tion under pain of dire%t %onte$pt.

On the sa$e da#, /0 'une /110, the Offi%e of the President (OP rendered a De%ision in OP 1?-&-/9?, the ad$inistrative %ase 'adee!! had fi!eda"ainst a#or =aranon, findin" hi$ "ui!t# of "rave $is%ondu%t, a2use of authorit#, and oppression. a#or =aranon as $eted out a pena!t# tota!!in"6/ $onths suspension fro$ offi%e.94*his suspension as i$p!e$ented 2# the Depart$ent of Interior and o%a! &overn$ent (DI&. ""rieved 2# hissuspension, a#or =aranon fi!ed his otion +or Re%onsideration, hi%h as denied on // u"ust /110 2# the OP.

On /9 'une /110, in response to a#or =aranon8s !etters of /4 'une /110, 'adee!! fi!ed 2efore this Court #et another %ase for %onte$pt its fifth%onte$pt %ase, and the third one spe%ifi%a!!# a"ainst a#or =aranon. In addition to its pra#er to %ite the $a#or for %onte$pt, 'adee!! a!so pra#edthat a#or =aranon, a !a#er, 2e dis2arred.9?*he %ase as do%)eted as &.R. No. 6541?4.

On 46 'u!# /110, &.R. No. 6541?4 as ordered %onso!idated ith &.R. Nos. 6011/, 6041/, 60?615, 600?, and 65//6.9On /5 Septe$2er/110, &.R. No. 65//60 as %onso!idated ith &.R. Nos. 6011/, 6041/, 60?615, 600?.90

On /4 u"ust /110, hi!e the %onso!idated %ases ere pendin" reso!ution 2efore this Court, the San""unian" Pan!un"sod ena%ted Reso!ution No./1?, Series of /110. *he Reso!ution dire%ted the Cit# e"a! Offi%er to notif# 'adee!! of the Ba"uio Cit# &overn$ent8s intention to res%ind the O,and to infor$ 'adee!! to stop its operations under the O 01 da#s after re%eipt of the Noti%e.95

On / u"ust /110, the !e"a! %ounse! for 'adee!! rote to Ba"uio Cit# i%e-a#or Bautista, 'r., infor$in" hi$ that the OP had denied the otion forRe%onsideration of a#or =aranon assai!in" the OP reso!ution orderin" the !atter8s suspension as Cit# a#or of Ba"uio Cit#.9*he %ounse! for'adee!! !i)eise stated in his !etter that the# ere aare that the San""unian as p!annin" to issue a reso!ution to repea! Ordinan%e No. 114-/111and res%ind the O. *he !etter re7uested the i%e-a#or to veto the $easure in !i"ht of the pendin" petitions ith the Supre$e Court. 99*he said%ounse! !i)eise sent a si$i!ar !etter to the San""unian, ur"in" it to desist fro$ i$p!e$entin" the repea! of Ordinan%e No. 114-/111 and theres%ission of the O pendin" the reso!ution of the %ases ith the Supre$e Court.611

On 64 Septe$2er /110, a#or =aranon appea!ed to the C, in a %ase do%)eted as C &.R. C SP No. 90660, pra#in" for the !iftin" of the pena!t# ofsuspension $eted hi$ in OP 1?-&-/9?, 2ut this appea! as denied. a#or =aranon $oved for re%onsideration.616

On // Septe$2er /110, Cit# e"a! Offi%er Ra2anes rote a !etter to 'adee!!, throu"h its President, r. Ro"e!io *an, infor$in" 'adee!! ofReso!ution No. /1?, Series of /110, hi%h res%inded the O, and orderin" it to stop operations ithin 01 da#s fro$ noti%e. 61/*his !etter asre%eived on the sa$e da# it as issued< 614hen%e, the 01-da# period !apsed on // Nove$2er /110. *his noti%e, to"ether ith the reso!ution,%onstitute the se%ond a%t of res%ission of the O 2# the %it# offi%ia!s of Ba"uio.

On 69 O%to2er /110, 'adee!! fi!ed the sixth %onte$pt %ase ith this Court a"ainst the a%tin" Cit# a#or of Ba"uio, Reina!do . Bautista, 'r., and the$e$2ers of the San""unian, in%!udin" Cit# e"a! Offi%er e!%hor Car!os R. Ra2anes, for the se%ond a%t of res%ission of the O. 61?*he %ase asdo%)eted as &.R. No. 65?59.

On 9 O%to2er /115, the C dis$issed a#or =aranon8s Petition in C &.R. C SP No. 90660 on the "round that it had 2e%o$e $oot and a%ade$i%due to a#or =aranon8s fai!ure to 2e re-e!e%ted in the 65 a# /115 e!e%tions. a#or =aranon fi!ed a otion for Re%onsideration on 15 Nove$2er/115, 2ut this as a!so denied 2# the C on /? 'anuar# /11. *hus, on 65 ar%h /11, a#or =aranon fi!ed a Ru!e ? Petition 2efore this Courtsee)in" to reverse and set aside the C De%ision and Reso!ution. It as do%)eted as &.R. No. 66?.

On 6/ Nove$2er /11, &.R. No. 66? as ordered %onso!idated ith the %ases a!read# $entioned.61

*>E ISSHES

6. On &.R. No. 6011/ and on the %!ai$ in &.R. No. 65?59 that the se%ond a%t of res%ission as a va!id a%t of res%ission.

hi!st the issues are spread out a$on" the nine %ases, e have "rouped these a%%ordin" to hat are %o$$on to the spe%ifi% %ases.

In our effort to si$p!if# the issues and provide for$s of re!ief to the parties that are not pure!# a%ade$i%, it is ne%essar# to exa$ine the operativeeffe%ts that $a# resu!t fro$ an# reso!ution of this Court. Su%h exa$ination $a# a!so he!p "uide the parties in their future a%tions, and perhaps theover!#-!iti"ated $atters 2rou"ht 2efore us in the %onso!idated petitions $a# fina!!# 2e put to rest.

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7/15

e note at the outset that on // Nove$2er /110, 01 da#s had !apsed fro$ re%eipt of the !etter dated // Septe$2er /110, infor$in" 'adee!! of thede%ision of the Cit# of Ba"uio to res%ind the O under Se%tion 6/ thereof. It $a# 2e re%a!!ed that Se%tion 6/ re7uires that noti%e of the intention tores%ind 2e "iven 01 da#s prior to the effe%tivit# of the res%ission. 'adee!! has not 7uestioned the !e"a! effi%a%# of this noti%e. It has 2rou"ht this$atter of a se%ond res%ission to the Court8s attention on!# as a $atter of %ontu$a%ious 2ehavior on the part of the respondents in &.R. No. 65?59, inthe sa$e a# that it 2rou"ht various a%tions of the pu2!i% respondents 2efore the Court in its other %onte$pt petitions. Sin%e the !e"a! effi%a%# of theres%ission in /110 has not 2een %ontested 2# 'adee!! in an# of the petitions 2efore us, e thus %onsider this noti%e of res%ission to have ta)en !e"a!effe%t and therefore, at the !atest, the O 2eteen the Cit# of Ba"uio and 'adee!! has %eased to !e"a!!# exist as of // Nove$2er /110.

Parentheti%a!!#, e note that hi!e the va!idit# of the se%ond a%t of res%ission des%ri2ed in &.R. No. 65?59 is not prin%ipa!!# deter$inative of therespondents8 !ia2i!it# for indire%t %onte$pt therein, a %on%!usion that the se%ond a%t of res%ission as underta)en %o$petent!# and appropriate!# i!! toa %ertain de"ree i$pa%t our appre%iation of su%h possi2!e !ia2i!it#. e i!! dis%uss this issue in our su2se7uent dis%ussion on the %har"es of %onte$pt.

Inas$u%h as there is no !on"er an# existin" O, no order of this Court %an have the effe%t of dire%tin" the Cit# of Ba"uio to enfor%e an# of the ter$sof the O, hi%h 2rin"s us to the $atter of &.R. No. 6011/. In hatever dire%tion e ru!e on the 7uestion of the va!idit# of the first a%t of res%ission,su%h ru!in" i!! on!# have the effe%t of either providin" 'adee!! a 2asis to see) da$a"es fro$ the Cit# of Ba"uio for the ron"fu! ter$ination of theO, shou!d e find ron"fu! ter$ination to have ta)en p!a%e, or, den# 'adee!! that ri"ht. *he possi2!e sus%epti2i!it# of the Cit# of Ba"uio and itsoffi%ia!s to an a%tion for da$a"es on a findin" of ron"fu! ter$ination is h# e do not %onsider &.R. No. 6011/ as havin" 2een rendered $oot 2#the !afu! res%ission of the O on // Nove$2er /110. *hus, e i!! pro%eed to ru!e on the issues in &.R. No. 6011/.

*he fa!!o of the R*C De%ision uphe!d 2# the C, hi%h affir$an%e is the !is $ota in &.R. No. 6011/, reads as fo!!os;

>ERE+ORE, :ud"$ent is rendered de%!arin" 2oth San""unian" Pan!un"sod Reso!ution No. 145, Series of /11/ and the pri! 65, /11/ Reso!utionoverridin" the a#or8s veto as NH and OID. *he rit of Pre!i$inar# In:un%tion ear!ier issued 2# this Court is $ade PERNEN*, ith %ostsa"ainst respondents.610

*he R*C did not order the respondents therein to %o$p!# ith the O. n order to perfor$ a %ontra%t is not ne%essari!# su2su$ed in an order not to

ter$inate the sa$e.

Contrast this !e"a! point ith the fa%t that the pra#er of 'adee!! in its ori"ina! petition as)ed the R*C, in re!evant part;

...that the rit of pre!i$inar# in:un%tion 2e $ade per$anent and the rits app!ied for 2e issued a"ainst the respondents nu!!if#in" and voidin"Reso!ution No. 145, series of /11/ and the reso!ution over-ridin" the veto L and instead, dire%tin" the$ to perfor$ hat the $e$orandu$ ofa"ree$ent re7uires the$ to do. (E$phasis supp!ied615

*his !atter part, hi%h is effe%tive!# a pra#er for a per$anent $andator# in:un%tion a"ainst respondents therein to perfor$ the ter$s of the O, arenot in the fa!!o of the R*C de%ision. e %onsider therefore that the R*C de!i2erate!# ithhe!d "rantin" the spe%ifi% pra#er to order Ba"uio Cit# toperfor$ the O. No $otion to %orre%t or %!arif# the said fa!!o havin" 2een fi!ed 2# 'adee!!, the pra#er to order the %it# offi%ia!s of Ba"uio to perfor$the O is here2# dee$ed a2andoned.

e further note three thin"s;

6. 'adee!! has not 7uestioned - in its Petition, Rep!# to Co$$ent, and e$orandu$ 2efore this Court - the i$p!i%ation of the R*C and CDe%isions to the effe%t that the San""unian had the authorit# to perfor$ a%ts of %ontra%tua! res%ission on 2eha!f of the Cit# of Ba"uio hen 2oththese %ourts i"nored the issue raised 2# 'adee!! in its Petition 2efore the R*C, and e therefore do not %onsider this to 2e a "enuine issue inthis Petition 2efore usI&>= HRBNIED CI*= for the previous #ears. *his has2e%o$e possi2!e due to the %o!!e%tive effort of 2oth the Citi3ens of Ba"uio and the Cit# &overn$ent. >oever, the in%rease in popu!ation, vo!u$e ofvehi%!es and the a2sen%e of a re"u!ator# $easure to address this %on%ern "radua!!# tainted hat used to 2e a reputation e ere proud of.

*he ever in%reasin" pro2!e$s, spe%ifi%a!!# those re!evant to the *raffi% situation is at this point the 2i""est %ontri2utor to environ$enta! de"radation.Other Sa!ient points e $ust %onsider re!evant to this $atter are the pro2!e$s on OBS*RHC*ION ND DOHBE PRIN& hi%h are ver# ra$pant.e further add to these the pro2!e$s on DISOR&NIED PRIN&, C O+ DEPH*IED &EN*S to $onitor, supervise and enfor%e traffi% ru!es

and re"u!ations.

t this point in ti$e, e fee! the i$$ediate need of fo%usin" on these pro2!e$s. *here is an ur"ent need to adopt $easures that ou!d a!!eviate these$atters. *his e re%o$$end that PRIN& SPCES shou!d 2e RE&H*ED in su%h a $anner that it ou!d 2rin" advanta"e 2oth to the Cit#&overn$ent and the Citi3ens of Ba"uio. e further propose the %o!!e%tion of RE&H*OR= +EES that ou!d 2e used in $aintainin" our roads andto hire peop!e that ou!d de deputi3ed to he!p ease the pro2!e$s as stated a2ove.

+ina!!#, e 2e!ieve that our roads are 2e#ond the Co$$er%e of an. *o %onvert our roads into P= PRIN& SPCES, ou!d 2e vio!ative of thisprin%ip!e. >oever to RE&H*E its use and its eventua! effe%t ou!d redound to the &ENER E+RE i!! 2e an appre%iated "esture to he!ppreserve our i$a"e as the CENES* ND &REENES* >I&>= HRBNIED CI*=.

x x x x

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11/15

SEC*ION ?. Par)in" spa%es. par)in" p!a%e $a# 2e divided into par)in" spa%es and for the purposes of this Ordinan%e, ea%h spa%e or for a nu$2erof spa%es as deter$ined 2# the private par)in" operator in %onsu!tation ith the %on%erned Offi%ia! of the Cit# of Ba"uio.

x x x x

SEC*ION . Prohi2itions a"ainst par)in" outside the par)in" spa%es. No spa%es sha!! par) an# $otor vehi%!e on the sidea!) or %ause or per$it an#$otor vehi%!e to ait to an# road or !en"th of road on hi%h in an# p!a%e in hi%h or ad:a%ent to or in %!ose proxi$it# to hi%h there is a par)in" p!a%e.

x x x x

SEC*ION 5. Pa#$ent of Pres%ri2ed Char"es. (6 No person sha!! par) an# $otor vehi%!e in a par)in" p!a%e or par)in" spa%e durin" the ti$es

spe%ified in this Ordinan%e ithout pa#in" the pres%ri2ed %har"e for the re7uired par)in" period< (/ *he pres%ri2ed %har"e pa#a2!e in respe%t to thepar)in" of a $otor vehi%!e in a par)in" spa%e sha!! 2e paid 2# the insertion into the par)in" $eter provided for that par)in" spa%e a %oinF%oins ofPhi!ippine Curren%# or 2# usin" %ards in order to o2tain the pa#$ent ti%)et to eviden%e the pa#$ent of the pres%ri2ed %har"e< (4 *he pa#$ent ti%)etsha!! 2e disp!a#ed at a %onspi%uous part of a $otor vehi%!e in a par)in" p!a%e or par)in" spa%e< (? *he pa#$ent ti%)et sha!! 2e va!id to 2e used onan# par)in" spa%e ithin the authori3ed period indi%ated in the pa#$ent ti%)et.

x x x x

SEC*ION //. Ru!es. *he e$orandu$ of "ree$ent (O to 2e entered into 2# the Cit# a#or sha!! 2e "overned 2# this Ordinan%e.

+ro$ the a2ove, the fo!!oin" are %!ear; (6 that the Cit# of Ba"uio de%ided on the privati3ation of the ad$inistration of par)in" for environ$enta! andpea%e and safet# reasons, 2oth of hi%h are ithin its poers under Se%tion ?(((v and (vi of the o%a! &overn$ent Code< and (/ that theter$s of a"ree$ent 2eteen the Cit# of Ba"uio and 'adee!! invo!ve the de!e"ation of "overn$enta! fun%tions in ter$s of re"u!atin" the desi"nationand use of par)in" spa%es as e!! as the %o!!e%tion of fees for su%h use. *hese are indi%ators that an# privati3ation %ontra%t pursuant to the a2ove

Reso!ution ta)es the essentia! %hara%ter of a fran%hise 2e%ause hat is 2ein" privati3ed is a "overn$ent-$onopo!i3ed fun%tion.

It ou!d thus 2e re!evant to as) if there is a provision in the app!i%a2!e !as or the fran%hise (O that "rants the Cit# of Ba"uio the ri"ht to revo)ethe !atter either at i!!, or upon the satisfa%tion of %ertain %onditions, su%h that ordinar# due pro%ess prote%tion %an 2e %onsidered to have 2eenaived 2# the fran%hisee. e $ust %aution that hen e refer to revo%ation at i!! here, e are referrin" to the revo%ation of reso!utor#, notsuspensive, o2!i"ations.6?5

e have !oo)ed %!ose!# at Reso!ution No. 114-/111 and the O and have additiona!!# ref!e%ted on the app!i%a2!e provision under the Civi! Code.e have %o$e to the %on%!usion that;

(a *here is on!# one provision that a!!os for uni!atera! revo%ation of the O, hi%h %an 2e found in Se%tion 9 thereof;

9. ini$u$ &uarant# *he +IRS* PR*= "uaranties (si% a $ini$u$ period of five ( #ears a"ainst res%ission< provided that after su%hperiod, the parties $a# a"ree to in%rease to a reasona2!e rate the par)in" fees and the share of the %it# fro$ the par)in" fees %o!!e%ted as

provided for in the "uide!ines, (nnex @B@e $a# a!sosee) res%ission, even after he has %hosen fu!fi!!$ent, if the !atter shou!d 2e%o$e i$possi2!e.

*he %ourt sha!! de%ree the res%ission %!ai$ed, un!ess there 2e :ust %ause authori3in" the fixin" of a period.

*his is understood to 2e ithout pre:udi%e to the ri"hts of third persons ho have a%7uired the thin", in a%%ordan%e ith rti%!es 64 and 64 andthe ort"a"e a.

+ro$ the a2ove, it appears that in order to effe%t a va!id revo%ation of the O prior to the !apse of the -#ear period provided for in Se%tion 9, theCit# of Ba"uio had to approa%h the pro2!e$ fro$ one or 2oth of to perspe%tives; one, ne"otiate the ter$ination of the O ith 'adee!!, or to,exer%ise its option under rti%!e 6696 of the Civi! Code.

*he first option, a ne"otiated preter$ination of the %ontra%t, is an inherent ri"ht of ever# part# in a %ontra%t. *his %an 2e inferred fro$ the freedo$ ofthe parties to %ontra%t and $odif# their previous %ovenants provided it ou!d not 2e %ontrar# to !a, $ora!s, "ood %usto$s, pu2!i% order or pu2!i%po!i%#.6?Despite the provision on the $ini$u$ arrant# a"ainst res%ission stipu!ated in the O, the parties ere not %onstrained to $utua!!# $odif#su%h restri%tion. *he San""unian %ou!d have proposed to 'adee!! the possi2i!it# of !iftin" the arrant# a"ainst res%ission su2:e%t to the %ondition thatthe !atter i!! %o$p!# ith its o2!i"ations under the O.

*his s%enario %ou!d have i$pressed upon 'adee!! that its %ontra%tua! re!ations ith the %it# "overn$ent of Ba"uio ere !ess than idea!. *hesu""ested approa%h for the San""unian %ou!d have 2een !e"a!!# sound and pra%ti%a!. O2vious!#, this as not done in this %ase< thus, 'adee!!8sCo$p!aint 2efore the R*C of Ba"uio Cit#.

*he se%ond option is the exer%ise of the uni!atera! ri"ht to res%ind a 2i!atera! %ontra%t on the part of a part# ho 2e!ieves that it has 2een in:ured 2# a2rea%h su2stantia! enou"h to arrant revo%ation. here one part# a!!e"ed!# fai!ed to %o$p!# ith his o2!i"ations under a %ontra%t, the in:ured part#$a# res%ind the o2!i"ation if the other does not perfor$ or is not read# and i!!in" to perfor$. 6?9e i!! exa$ine the a%ts of Ba"uio Cit# in re!ation tohat is a!!oed under rti%!e 6696.

Res%ission under rti%!e 6696 ta)es p!a%e throu"h either of to $odes; (6 throu"h an extra:udi%ia! de%!aration of res%ission< or (/ upon the "rant of a:udi%ia! de%ree of res%ission.

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Extra:udi%ia! de%!aration of res%ission is re%o"ni3ed as a poer hi%h does not re7uire :udi%ia! intervention. 61If the res%ission is not opposed,extra:udi%ia! de%!aration of res%ission produ%es !e"a! effe%t66su%h that the in:ured part# is a!read# re!ieved fro$ perfor$in" the underta)in".6/

>oever, the poer of de%!arin" extra:udi%ia! res%ission %onferred upon the in:ured part# is re"u!ated 2# the Civi! Code. If the extra:udi%ia! res%issionis i$pu"ned 2# the other part#, it sha!! 2e su2:e%t to a :udi%ia! deter$ination 64here %ourt a%tion $ust 2e ta)en, and the fun%tion of the %ourt is tode%!are the res%ission as havin" 2een proper!# or i$proper!# $ade, or to "ive a period ithin hi%h the de2tor $ust perfor$ the o2!i"ation a!!e"ed to2e 2rea%hed.6? uni!atera! %an%e!!ation of a %ontra%t $a# 2e 7uestioned in %ourts 2# the affe%ted part# to deter$ine hether or not %an%e!!ation isarranted.6*hus, in an extra:udi%ia! de%ree of res%ission, revo%ation %annot 2e %o$p!ete!# exer%ised so!e!# on a part#8s on :ud"$ent that the otherhas %o$$itted a 2rea%h of the o2!i"ation602ut a!a#s su2:e%t to the ri"ht of the other part# to :udi%ia!!# i$pu"n su%h de%ision.

It is i$portant to %ontextua!i3e that the a"ree$ent entered into 2# the Cit# of Ba"uio ith 'adee!! is the e$2odi$ent of a "rant of fran%hise i$2uedith pu2!i% interest and is not $ere!# an a"ree$ent 2eteen to private parties.

It is our vie that the first a%t of res%ission 2# the Cit# of Ba"uio $a# 2e va!id even if there is a stipu!ation a"ainst it ithin the first five #ears of theO8s existen%e. rti%!e 6696 of the Ne Civi! Code provides a part# the ri"ht to res%ind the a"ree$ent and %!ear!# overrides an# stipu!ation to the%ontrar#. >oever, the "rounds that ou!d serve as 2asis to the app!i%ation of the said arti%!e $ust 2e %!ear!# esta2!ished.

In the exer%ise of this option under rti%!e 6696, as it ne%essar# for the Cit# of Ba"uio to provide 'adee!! an opportunit# to air its side on the $atter2efore the for$er i$p!e$ented the res%ission of the OQ In the instant %ase, as 'adee!! deprived of pro%edura! due pro%essQ

e anser in the ne"ative. e disa"ree ith the ru!in"s of the R*C and the C that 'adee!! as deprived of due pro%ess. In *axi%a2 Operators ofetro ani!a v. *he Board of *ransportation, 65e %onfronted the issue of hether the petitioners ere denied pro%edura! due pro%ess hen therespondent Board of *ransportation issued a %ir%u!ar orderin" the phasin" out of o!d vehi%!es to 2e used as taxi%a2s. In the said %ase, the phase-outas e$2odied in a %ir%u!ar that as pro$u!"ated ithout ho!din" a pu2!i% hearin" or at !east re7uirin" those affe%ted to su2$it their position paperson the po!i%# to 2e i$p!e$ented. e he!d for the respondent Board, and ru!ed in this ise;

Dispensin" ith a pu2!i% hearin" prior to the issuan%e of the Cir%u!ars is neither vio!ative of pro%edura! due pro%ess. s he!d in Centra! Ban) vs. >on.C!ori2e! and Ban%o +i!ipino, ?? SCR 415 (695/;

Previous noti%e and hearin" as e!e$ents of due pro%ess, are %onstitutiona!!# re7uired for the prote%tion of !ife or vested propert# ri"hts, as e!! as of!i2ert#, hen its !i$itation or !oss ta)es p!a%e in %onse7uen%e of a :udi%ia! or 7uasi-:udi%ia! pro%eedin", "enera!!# dependent upon a past a%t or eventhi%h has to 2e esta2!ished or as%ertained. It is not essentia! to the va!idit# of "enera! ru!es or re"u!ations pro$u!"ated to "overn future %ondu%t of a%!ass or persons or enterprises, un!ess the !a provides otherise.

In the instant %ase, the assai!ed a%t 2# the San""unian Pan!un"sod in res%indin" the O 2e it first or se%ond a%t of res%ission as %!ear!# in theexer%ise of its !e"is!ative or ad$inistrative fun%tions and as not an exer%ise of a :udi%ia! or 7uasi-:udi%ia! fun%tion. *he San""unian Pan!un"sod doesnot possess an# :udi%ia! or 7uasi-:udi%ia! fun%tions. *he prea$2!e of the O !ends support to this vie. Evident!#, the fore$ost reason h# thea"ree$ent as entered into 2# the parties as to provide order, "iven Ba"uio Cit#8s par)in" pro2!e$s in identified areas, as e!! as to "eneratein%o$e.

*he o2:e%tives of the San""unian Pan!un"sod, as e!! as its intention to res%ind the O< 2e%ause it dee$s to no !on"er serve the interest of theCit# of Ba"uio, are %!ear!# an exer%ise of its !e"is!ative or ad$inistrative fun%tion. >oever, it is another $atter as to hether the Cit# of Ba"uio asa2!e to %!ear!# esta2!ish the "rounds as 2asis for the exer%ise of its ri"ht to res%ind.

%. On the a!!e"ation of 'adee!!8s su2stantia! 2rea%h of the O.

*he Ba"uio Cit# "overn$ent has repeated!# $entioned that 'adee!! had so far insta!!ed on!# 6? par)in" $eters, ith on!# 6/ fun%tionin". *he CO-CR Report dated 64 'u!# /114 enu$erated 6/ findin"s,6a $a:orit# of hi%h indi%ates that 'adee!! as re$iss in the fu!fi!$ent of its o2!i"ationsunder the O. hi!e +indin" Nos. (6, (/, (4, (?, (, ( and (6/ of the CO-CR Report state that 'adee!! %o!!e%ted par)in" fees, 'adee!!fai!ed to proper!# re$it the sa$e. +indin" No. (66 of the CO-CR Report states that 'adee!! fai!ed to have its par)in" attendants deputi3ed, 69a%ondition under the O that is a!so i$portant to the overa!! o2:e%tive of the endeavor.

*he O does not spe%ifi%a!!# provide for the exa%t nu$2er of par)in" $eters to 2e insta!!ed 2# 'adee!! pursuant to the parties8 o2:e%tive inre"u!atin" par)in" in the %it#. Neverthe!ess, 611 par)in" spa%es ere a!!otted as $entioned in nnex of the O. 601*he a"ree$ent a!so o2!i"ates'adee!! to have its par)in" attendants deputi3ed 2# the DO*C-*O so that the# sha!! have the authorit# to enfor%e traffi% ru!es and re"u!ations in there"u!ated areas.606*o the Court8s $ind, these are to of the $ost i$portant o2!i"ations that 'adee!! had to %o$p!# ith, %onsiderin" the nature ando2:e%tive of the a"ree$ent it had entered into.

Despite the enu$eration of the a2ove-$entioned fau!ts of 'adee!!, e do not $a)e a %ate"ori%a! findin" that there as su2stantia! 2rea%h%o$$itted 2# 'adee!! to :ustif# a uni!atera! res%ission of the O. e find, hoever, that the R*C had not proper!# re%eived eviden%e that ou!da!!o it to deter$ine the extent of the %!ai$ed vio!ations of the O. >ad these vio!ations 2# 'adee!! 2een proven in a proper hearin", the findin" ofa su2stantia! 2rea%h of the O ou!d have 2een a distin%t pro2a2i!it#.

Hnfortunate!#, neither the R*C nor the C provided a %!ear 2asis for their ru!in"s on the extent of the 2rea%h of the O 2# 'adee!!. Save fro$reiteratin" the San""unian8s !itan# of vio!ations said to 2e %o$$itted 2# 'adee!!, there as no testi$on# on re%ord to prove su%h fa%ts and noindi%ation as to hether the R*C or C dis$issed the$ or too) the$ at fa%e va!ue.

hatever the extent of 2rea%h of %ontra%t that 'adee!! $a# have %o$$itted and the enu$eration of 'adee!!8s a!!e"ed fau!ts in Reso!ution 45 is7uite extensive the Cit# of Ba"uio as sti!! dut#-2ound to esta2!ish the a!!e"ed 2rea%h.

atters 2e%a$e %o$p!i%ated hen the R*C and the C !u$ped the issues on the due pro%ess vio!ation of Ba"uio Cit# ith 'adee!!8s a!!e"edsu2stantia! 2rea%hes under the O, instead of $a)in" a %!ear findin" on the existen%e and extent of su%h 2rea%h. *he fa%ts and !e"a! issues erethus $udd!ed.

e find fau!t in the !oer and appe!!ate %ourt8s !apse in exa$inin" the issue on 'adee!!8s a!!e"ed su2stantia! 2rea%h. Eviden%e-ta)in" had to 2eunderta)en 2# these %ourts 2efore the# %ou!d arrive at a :udi%ia! %on%!usion on the presen%e of su2stantia! 2rea%h.

e thus DEN= the Petition of the San""unian Pan!un"sod in &.R. No. 6011/ and ++IR the 7uestioned C De%ision. >oever, e re:e%t theru!in" $ade 2# the appe!!ate %ourt that the vio!ations of 'adee!! under the O ere not su2stantia!. e ho!d that there is no suffi%ient eviden%e onre%ord to $a)e su%h deter$ination.

12
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13/15

hi!e 'adee!! pra#s for da$a"es a"ainst the pu2!i% respondent, and hi!e ordinari!# e %ou!d "rant the sa$e, the %ontext of this %ase prevents usfro$ "ivin" an# for$ of re%o$pense to 'adee!! even if the res%ission of the O did not fo!!o the re7uired !e"a! pro%edure. *his is 2e%ause it ou!d2e appa!!in" to "rant 'adee!! an# aard of da$a"es, %onsiderin" (6 it insta!!ed on!# 6? out of the apparent!# 611 %onte$p!ated par)in" $eters< (/its e$p!o#ees, private %iti3ens ho did not possess an# authorit# fro$ the *O, ere $anua!!# %o!!e%tin" par)in" fees fro$ the pu2!i%, and (4 it didnot, apparent!# proper!# re$it an# si"nifi%ant a$ount of $one# to the Cit# of Ba"uio. *hese three fa%ts are un%ontested, these o$issions areoffensive to the %on%ept of pu2!i% servi%e that the residents of Ba"uio ere pro$ised throu"h 'adee!!. +ro$ its a$2i"uous responses extant in there%ords, it is %!ear that 'adee!! does not appear to 2e an investor ho has !ost in its invest$ents in the Ba"uio Cit# pro:e%t. *hus, e do not aardan# da$a"es to 'adee!!.

/. On &.R. Nos. 6041/, 60?615, 600?, 65//60, 6541?4 and 65?59 (*he Conte$pt Petitions

Se%tion 4 of Ru!e 56 of the Revised Ru!es of Civi! Pro%edure enu$erates the a%ts %onstitutin" indire%t %onte$pt, thus;

(a is2ehavior of an offi%er of a %ourt in the perfor$an%e of his offi%ia! duties or in his offi%ia! transa%tionson. Per!asBerna2e,656e reiterated our ru!in"s in East sia *raders and Indiana erospa%e. e had ru!ed in these ear!ier %ases that an order of the tria! %ourtden#in" a $otion to dis$iss is an inter!o%utor# order, and to use a rit of %ertiorari to assai! it is i$proper.

*he pro%edura! po!i%# in the %ited %ases as a"ain referred to in Bernas v. Soverei"n entures, In%.,65/hi"h!i"htin" the fo!!oin";

et it 2e stressed at this point the 2asi% ru!e that hen a $otion to dis$iss is denied 2# the tria! %ourt, the re$ed# is not to fi!e a petition for %ertiorari,2ut to appea! after a de%ision has 2een rendered. (E$phasis supp!ied

&.R. No. 66?

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15/15

*he 7uestion of !a raised 2# petitioner =aranon in this Petition for Revie on Certiorari is hether the C %orre%t!# dis$issed his appea! 7uestionin"the va!idit# of his suspension fro$ offi%e as Cit# a#or, on the "round that his suit had 2e%o$e $oot and a%ade$i% due to his non-re-e!e%tion tooffi%e. *he C %ited Crespo v. Provin%ia! Board of Nueva E%i:a654as 2asis for the dis$issa!.

+or his part, a#or =aranon %ontends that the appe!!ate %ourt shou!d have ru!ed on the va!idit# of his suspension fro$ offi%e despite his fai!ure to "etre-e!e%ted as Cit# a#or. >e ar"ues that he has the ri"ht to )no hether his suspension as va!id or not and, in the event his suspension isde%!ared inva!id, a#or =aranon 2e!ieves he is entit!ed to the sa!aries and 2enefits a%%ruin" durin" the period he as suspended.

e den# the Petition of a#or =aranon.

*he appea! of a#or =aranon has 2een rendered $oot and a%ade$i%. e ho!d that the reso!ution of the issue raised herein ou!d serve no pra%ti%a!purpose.

In iria$ Co!!e"e v. Court of ppea!s,65?e ru!ed that a %ase 2e%o$es $oot and a%ade$i% hen there is no $ore a%tua! %ontrovers# 2eteen theparties, or hen no usefu! purpose %an 2e served in passin" upon the $erits. +urther, %ourts i!! not deter$ine a $oot 7uestion in hi%h no pra%ti%a!re!ief %an 2e "ranted.65

a#or =aranon has a!read# served his suspension. e find no pra%ti%a! va!ue in re$andin" his %ase to the appe!!ate %ourt for the deter$ination ofthe fa%tua! 2asis and !e"a! issues of his appea! pertainin" to the va!idit# of his suspension as then Cit# a#or of Ba"uio Cit#.

e have he!d in Ni%art, 'r. v. Sandi"an2a#an (*hird Division,650that an issue 2e%o$es $oot hen a petitioner is not entit!ed to su2stantia! re!ief;

x x x J*Khe propriet# of the preventive suspension of petitioner effe%ted throu"h the assai!ed Reso!ution of +e2ruar# 6, /116 has 2e%o$e a $ootissue, it appearin" that he has a!read# served his suspension. n issue 2e%o$es $oot and a%ade$i% hen it %eases to present a :ustifia2!e%ontrovers# so that a deter$ination thereof ou!d 2e of no pra%ti%a! use and va!ue. In su%h %ases, there is no a%tua! su2stantia! re!ief to hi%h

petitioner ou!d 2e entit!ed to and hi%h ou!d 2e ne"ated 2# the dis$issa! of the petition.

e %annot sustain a#or =aranon8s ar"u$ent that his appea! shou!d not have 2een dis$issed 2e%ause, in the event that the findin" of the Offi%e ofthe President to suspend hi$ is reversed, he is sti!! entit!ed to the sa!aries a%%ruin" durin" the period he as suspended. e ta)e note of the %ases%ited 2# a#or =aranon su%h as Crespo v. Provin%ia! Board of Nueva E%i:a, 655Ba7uerfo v. San%he365and Re#es v. Cristi,659a$on" others. *hese%ases invo!ve su2stantia! issues su%h as denia! of due pro%ess and pro%edura! irre"u!arities other than a $ere %!ai$ for entit!e$ent to sa!aries.*he fa%tua! 2a%)"round and the !e"a! issues for reso!ution in the %ases $entioned are not si$i!ar to the %ase at 2ar.

In *riste v. e#te State Co!!e"e Board of *rustees61the Court e!u%idated on the nature of the sa!ar# of a pu2!i% offi%ia!;

e%he$ states that @(!i)e the re7uire$ent of an oath, the fa%t of the pa#$ent of a sa!ar# andFor fees $a# aid in deter$inin" the nature of a position,2ut it is not %on%!usive, for hi!e a sa!ar# or fees are usua!!# annexed to the offi%e, it is not ne%essari!# so. s in the %ase of the oath, the sa!ar# or feesare $ere in%idents and for$ no part of the offi%e. here a sa!ar# or fees are annexed, the offi%e is often said to 2e %oup!ed ith an interest8< hereneither is provided for it is a na)ed or honorar# offi%e, and is supposed to 2e a%%epted $ere!# for the pu2!i% "ood.@ (E$phasis supp!ied

&iven the %ir%u$stan%es of this %ase, e find that a#or =aranon8s %!ai$ for unpaid sa!aries, in %ase of exoneration, does not %onstitute su%hsu2stantia! re!ief that ou!d :ustif# the reviva! of his appea!. Even if e did sustain his Petition, e neverthe!ess find that it has 2een $ooted 2# ourreso!ution in the $ain petition.

>ERE+ORE, e here2# ru!e as fo!!os;

a. In &.R. No. 6011/, the Petition of the San""unian" Pan!un"sod of Ba"uio Cit# is DENIED. *he C De%ision dated 5 'u!# /114 in C&.R. SP No. 5?50 is here2# ++IRED ith $odifi%ation. *here is not enou"h eviden%e on re%ord to %on%!ude that 'adee!!8s vio!ationsere suffi%ient to :ustif# the uni!atera! %an%e!!ation of the O 2# the San""unian" Pan!un"sod of Ba"uio Cit#< at the sa$e ti$e, neither theR*C nor the C provided a %!ear findin" hether the 2rea%h of the O 2# 'adee!! as su2stantia!. e affir$ the C as to the rest of itsdispositions in its assai!ed De%ision. Neverthe!ess, no aard of da$a"es is here2# $ade in favour of 'adee!! and neither is there an#pronoun%e$ent as to %osts.

2. &.R. Nos. 6041/, 60?615, 600?, 65//60, 6541?4 and 65?59, the Petitions of 'adee!! to %ite a#or Brau!io D. =aranon, a#or

Bernardo . er"ara, %tin" Cit# a#or Reina!do . Bautista, i%e a#or Bett# ourdes +. *a2anda, the $e$2ers of the San""unian"Pan!un"sod of Ba"uio Cit# na$e!#; E!$er O. Datuin, ntonio R. *a2ora, Edi!2erto B. *enefran%ia, +ederi%o '. andapat, 'r., Ri%hard .Carino, +austino . O!oan, Rufino . Pana"an, eonardo B. =an"ot, 'r., Ro%)# *ho$as . Ba!ison", &a!o P. e#"an, Per!ita . Chan-Ronde3, 'ose . o!intas, and 'ud"e +ernando i! Pa$intuan for indire%t %onte$pt and to dis2ar San""unian" Pan!un"sod $e$2ersRo%)# *ho$as . Ba!ison", Edi!2erto B. *enefran%ia, +austino . O!oan, +ederi%o '. andapat, Per!ita . Chan-Ronde3, 'ose . o!intas,e!%hor Car!os B. Ra2anes and a#or Brau!io D. =aranon are a!! here2# DISISSED for !a%) of $erit. No pronoun%e$ent as to %osts.

%. e DEN= the Petition of 'adee!! for !a%) of $erit in &.R. No. 65//6. e !i)eise DEN= its pra#er for the issuan%e of a te$porar#restrainin" order andFor rit of pre!i$inar# in:un%tion for 2ein" $oot and a%ade$i%. No pronoun%e$ent as to %osts.

d. e DEN= the Petition of a#or Brau!io D. =aranon in &.R. No. 66?, for !a%) of $erit and ++IR the C De%ision C-&.R. SP No.90660. No pronoun%e$ent as to %osts.

SO ORDERED.
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