City of Manila vs IAC Date: November 15, 1989 Petitioners: Petitioners: City of Manila and Evangeline !va "es#ondents: IAC, Irene to$ Domingo, et al Ponente: Paras %a&ts: 'iven&io to$ to$ Domingo, r$ r$ died and (as b!ried in Nort) Cemetery ()i&) lot (as leased by t)e &ity to Irene to$ Domingo for t)e #eriod from *!ne +, 191 to *!ne +, -.-1$ /)e /)e (ife #aid t)e f!ll amo!nt amo!nt of t)e lease$ A#art, )o(ever from t)e re&ei#t, no ot)er do&!ment embodied s!&) lease over t)e lot$ 0elieving t)at t)e lease (as only for ve years, t)e &ity &ertied t)e lot as ready for e2)!mation$ 3n t)e basis of t)e &erti&ation, *ose#) 4elm!t) a!t)oried t)e e2)!mation and removal of t)e remains of 'i&en&io$ 4is bones (ere #la&ed in a bag and 6e#t in t)e bodega of t)e &emetery$ /)e lot (as also leased to anot)er lessee$ D!ring t)e ne2t all so!ls day, t)e #rivate res#ondents (ere s)o&6ed to nd o!t t)at 'i&en&io7s remains (ere removed$ /)e &emetery told Irene to loo6 for t)e bones of t)e )!sband in t)e bodega$ Aggrieved, t)e (ido( and t)e &)ildren bro!g)t an a&tion for damages against t)e City of Manila Evangeline !va of t)e City 4ealt) 3&e ergio Mallari, o&er in&)arge of t)e Nort) Cemetery and *ose#) 4elm!t), t)e latter;s #rede&essor #rede&essor as o&erin&)arge of t)e said b!rial gro!nds o(ned and o#erated by t)e City 3N t)e o#erations and and f!n&tions of a #!bli& #!bli& &emetery are are a governmental, or a &or#orate or #ro#rietary f!n&tion of t)e City of Manila$ 4eld 4eld:: Pro# Pro#ri riet etar ary y "atio: Petitioners alleged in t)eir #etition t)at t)e Nort) Cemetery is e2&l!sively devoted for #!bli& !se or #!r#ose as stated in e&$ ?1+ of t)e Com#ilation of t)e 3rdinan&es of t)e City of Manila$ /)ey &on&l!de t)at sin&e t)e City is a #oliti&al s!bdivision s!bdivision in t)e #erforman&e of its governmental f!n&tion, it is imm!ne from tort liability ()i&) may be &a!sed by its #!bli& o&ers and s!bordinate em#loyees$ Private res#ondents maintain t)at t)e City of Manila entered into a &ontra&t of lease ()i&) involve t)e e2er&ise of #ro#rietary f!n&tions (it) Irene to$ Domingo$ /)e &ity and its o&ers t)erefore &an be s!ed for anyviolation of t)e &ontra&t of lease$ /)e City of Manila Manila is a #oliti&al #oliti&al body &or#orate &or#orate and as s!&) s!&) endo(ed endo(ed (it) t)e fa&!lties of m!ni&i#al &or#orations to be e2er&ised by and t)ro!g) its &ity government in &onformity &onformity (it) la(, and in its #ro#er &or#orate name$ It may s!e and be s!ed, and &ontra&t and be &ontra&ted (it)$ Its #o(ers are t(ofold in &)ara&ter#!bli&, governmental or #oliti&al on t)e one )and, and &or#orate, #rivate and #ro#rietary on t)e ot)er$
governmental &a#a&ity, and #rivate or #ro#rietary &a#a&ity$ /)e Ne( Civil Code divides s!&) #ro#erties into #ro#erty for #!bli& !se and #atrimonial #ro#erties BArti&le -?, and f!rt)er en!merates t)e #ro#erties for #!bli& !se as #rovin&ial roads, &ity streets, m!ni&i#al streets, t)e s!ares, fo!ntains, #!bli& (aters, #romenades, and #!bli& (or6s for #!bli& servi&e #aid for by said #rovisions, &ities or m!ni&i#alities, all ot)er #ro#erty is #atrimonial (it)o!t #re@!di&e to t)e #rovisions of s#e&ial la(s$ /)!s in /orio v$ %ontanilla, t)e Co!rt de&lared t)at (it) res#e&t to #ro#rietary f!n&tions t)e settled r!le is t)at a m!ni&i#al &or#oration &an be )eld liable to t)ird #ersons e2 &ontra&t!$ nder t)e foregoing &onsiderations and in t)e absen&e of a s#e&ial la(, t)e Nort) Cemetery is a #atrimonial #ro#erty of t)e City of Manila$ /)e administration and government of t)e &emetery are !nder t)e City 4ealt) 3&er, t)e order and #oli&e of t)e &emetery, t)e o#ening of graves, ni&)es, or tombs, t)e e2)!ming of remains, and t)e #!ri&ation of t)e same are !nder t)e &)arge and res#onsibility of t)e s!#erintendent of t)e &emetery$ >it) t)e a&ts of dominion, t)ere is no do!bt t)at t)e Nort) Cemetery is (it)in t)e &lass of #ro#erty ()i&) t)e City of Manila o(ns in its #ro#rietary or #rivate &)ara&ter$ %!rt)ermore, t)ere is no dis#!te t)at t)e b!rial lot (as leased in favor of t)e #rivate res#ondents$ 4en&e, obligations arising from &ontra&ts )ave t)e for&e of la( bet(een t)e &ontra&ting #arties$ /)!s a lease &ontra&t e2e&!ted by t)e lessor and lessee remains as t)e la( bet(een t)em$ /)erefore, a brea&) of &ontra&t!al #rovision entitles t)e ot)er #arty to damages even if no #enalty for s!&) brea&) is #res&ribed in t)e &ontra&t$ Iss!e: >3N t)e &ity is liable for damages 4eld: Fes "atio: All t)ings &onsidered, even as t)e Co!rt &ommiserates (it) #lainti=s for t)e !nfort!nate )a##ening &om#lained of and !ntimely dese&ration of t)e resting #la&e and remains of t)eir de&eased dearly beloved, it nds t)e reliefs #rayed for by t)em la&6ing in legal and fa&t!al basis$ nder t)e aforementioned fa&ts and &ir&!mstan&es, t)e most t)at #lainti=s ran as6 for is t)e re#la&ement of s!b@e&t lot (it) anot)er lot of e!al sie and similar lo&ation in t)e Nort) Cemetery ()i&) s!bstit!te lot #lainti=s &an ma6e !se of (it)o!t #aying any rental to t)e &ity government for a #eriod of fortyt)ree B? years, fo!r B mont)s and eleven B11 days &orres#onding to t)e !ne2#ired #ortion of t)e term of t)e lease s!ed !#on as of *an!ary -5, 198 ()en t)e remains of t)e late 'iven&io to$ Domingo, r$ (ere #remat!rely removed from t)e dis#!ted lot and to re!ire t)e defendants to loo6 in earnest for t)e bones and s6!ll of t)e late 'iven&io to$ Domingo r$ and to b!ry t)e same in t)e s!bstit!te lot ad@!dged in favor of #lainti=s )ere!nder$ As regards t)e iss!e of t)e validity of t)e &ontra&t of lease of grave lot No$ 159, 0lo&6 No$ 195 of t)e Nort) Cemetery for 5. years beginning from *!ne +, 191 to *!ne +, -.-1 as &learly stated in t)e re&ei#t d!ly signed by t)e de#!ty treas!rer of t)e City of Manila and sealed by t)e &ity government, t)ere is not)ing in t)e re&ord t)at @!sties t)e reversal of t)e &on&l!sion of bot) t)e trial &o!rt and t)e Intermediate A##ellate Co!rt to t)e e=e&t t)at t)e re&ei#t is in itself a &ontra&t of lease$ B nder t)e do&trine of res#ondent s!#erior, B/orio v$ %ontanilla, #etitioner City of Manila is liable for t)e tortio!s a&t &ommitted by its agents ()o failed to verify and &)e&6 t)e d!ration of t)e &ontra&t of lease$ /)e &ontention of t)e #etitioner&ity
t)at t)e lease is &overed by Administrative 3rder No$ 5, series of 195 dated Mar&) +, 195 of t)e City of Manila for ve B5 years only beginning from *!ne +, 191 is not meritorio!s for t)e said administrative order &overs ne( leases$ >)en s!b@e&t lot (as &ertied on *an!ary -5, 198 as ready for e2)!mation, t)e lease &ontra&t for fty B5. years (as still in f!ll for&e and e=e&t$
