Rama, et al. vs. Moises, et al.

Case Digest Governor Garcia commenced an action for

Hon. Michael L. Rama, et al. vs. Hon. Gilbert P. declaratory relief to seek the interpretation of Section
Moises, et al. 3 (b) of P.D. No. 198 on the proper appointing
G.R. No. 197146. December 6, 2016 authority for the members of the MCWD Board of
Ponente: Directors.

Facts On February 22, 2008, however, Mayor Osmeña

On May 25, 1973, President Ferdinand E. Marcos appointed Yu as a member of the MCWD Board of
issued Presidential Decree No. 198 (Provincial Water Directors.7 Accordingly, on May 20, 2008, the RTC
Utilities Act of 1973). By virtue of P. D. No. 198, Cebu dismissed the action for declaratory relief on the
City formed the Metro Cebu Water District (MCWD) in ground that declaratory relief became improper once
1974. Thereafter, the Cities of Mandaue, Lapu-Lapu there was a breach or violation of the provision.
and Talisay, and the Municipalities of Liloan,
Compostela, Consolacion, and Cordova turned over On June 13, 2008, Governor Garcia filed a complaint
their waterworks systems and services to the MCWD. to declare the nullity of the appointment of Yu as a
From 1974 to 2002, the Cebu City Mayor appointed member of the MCWD Board of Directors (docketed
all the members of the MCWD Board of Directors in as Civil Case No. CEB-34459), alleging that the
accordance with Section 3 (b) of P. D. No. 198, to wit: appointment by Mayor Osmefia was illegal; that under
Section 3(b) of P.D. No. 198, it was she as the
(b) Appointing authority. The person empowered to Provincial Governor of Cebu who was vested with the
appoint the members of the board of Directors of a authority to appoint members of the MCWD Board of
local water district, depending upon the geographic Directors because the total active water service
coverage and population make-up of the particular connections of Cebu City and of the other cities and
district. In the event that more than seventy-five municipalities were below 75% of the total water
percent of the total active water service service connections in the area of the MCWD.
connections of a local water district are within the
boundary of any city or municipality, the On November 16, 2010, the RTC rendered the
appointing authority shall be the mayor of that assailed judgment declaring the appointment of Yu as
city or municipality, as the case may be; illegal and void and ruled that the court has not been
otherwise, the appointing authority shall be the able to find any constitutional infirmity in the
governor of the province within which the district questioned provision (Sec. 3) of Presidential Decree
is located. If portions of more than one province are No. 198. The fundamental criterion is that all
included within the boundary of the district, and the reasonable doubts should be resolved in favor of the
appointing authority is to be the governors then the constitutionality of a statute. Every law has in its favor
power to appoint shall rotate between the governors the presumption of constitutionality. For a law to be
involved with the initial appointments made by the nullified, there must be shown that there is a clear and
governor in whose province the greatest number of unequivocal breach of the Constitution. The ground
service connections exists. (emphasis supplied) for nullity must be clear and beyond reasonable
doubt.
In July 2002, Cebu Provincial Governor Pablo L.
Garcia wrote to the MCWD to assert his authority and Mayor Osmeña and Yu jointly moved for
intention to appoint the members of the MCWD Board reconsideration, but the RTC denied their motion.
of Directors Hence, the petitioners have instituted this special civil
Later on, the MCWD commenced in the Regional action for certiorari.
Trial Court in Cebu City (RTC) its action for
declaratory relief seeking to declare Section 3(b) of
P.D. No. 198 unconstitutional; or, should the provision Issues
be declared valid, it should be interpreted to mean 1. Whether Section 3(b) of P.D. No. 198 was
that the authority to appoint the members of the void on its face for violating the constitutional
MCWD Board of Directors belonged solely to the provision on local autonomy and independence of
Cebu City Mayor. The RTC (Branch 7) dismissed the HUCs under Article X of the 1987 Constitution.
action for declaratory relief. 2. Whether Section 3(b) of P.D. 198 is
unconstitutional for violating the Due Process Clause
To avoid a vacuum and in the exigency of the service, and the Equal Protection Clause.
Provincial Governor Gwendolyn F. Garcia and Cebu
City Mayor Tomas R. Osmeña jointly appointed Atty.
Adelino Sitoy and Leo Pacana to fill the vacancies.
However, the position of Atty. Sitoy was deemed Rulings
vacated upon his election as the Municipal Mayor of
Cordova, Cebu in the 2007 elections. Section 3(b) of P.D. 198 is already superseded
The Court opines that Section 3(b) of P.D. No. 198
should be partially struck down for being repugnant to
the local autonomy granted by the 1987 Constitution to the purpose of P.D. No. 198 when it was enacted in
to LGUs, and for being inconsistent with R.A. No. 1973, the intervening reclassification of the City of
7160 (1991 Local Government Code) and related Cebu into an HUC and the subsequent enactment of
laws on local governments. the 1991 Local Government Code rendered the
continued application of Section 3(b) in disregard of
The enactment of P.D. No. 198 on May 25, 1973 was the reclassification unreasonable and unfair. Clearly,
prior to the enactment on December 22, 1979 of the assailed provision no longer provided for
Batas Pambansa Blg. 51 (An Act Providing for the substantial distinction because, firstly, it ignored that
Elective or Appointive Positions in Various Local the MCWD was built without the participation of the
Governments and for Other Purposes) and antedated provincial government; secondly, it failed to consider
as well the effectivity of the 1991 Local Government that the MCWD existed to serve the community that
Code on January 1, 1992. At the time of the represents the needs of the majority of the active
enactment of P.D. No. 198, Cebu City was still a water service connections; and, thirdly, the main
component city of Cebu Province. Section 328 of B.P. objective of the decree was to improve the water
Blg. 51 reclassified the cities of the Philippines based service while keeping up with the needs of the
on well-defined criteria. Cebu City thus became an growing population.
HUC, which immediately meant that its inhabitants
were ineligible to vote for the officials of Cebu Hence, we deem it to be inconsistent with the true.
Province. In accordance with Section 12 of Article X objectives of the decree to still leave to the provincial
of the 1987 Constitution, cities that are highly governor the appointing authority if the provincial
urbanized, as determined by law, and component governor had administrative supervision only over
cities whose charters prohibit their voters from voting municipalities and component cities accounting for
for provincial elective officials, shall be independent of 16.92% of the active water service connection in the
the province, but the voters of component cities within MCWD. In comparison, the City of Cebu had 61.28%
a province, whose charters contain no such of the active service water connections; Mandaue,
prohibition, shall not be deprived of their right to vote another HUC, 16%; and Lapu Lapu City, another
for elective provincial officials. Later on, Cebu City, HUC, 6.8%. There is no denying that the MCWD has
already an HUC, was further effectively rendered been primarily serving the needs of Cebu City.
independent from Cebu Province pursuant to Section Although it is impermissible to inquire into why the
29 of the 1991 Local Government Code. decree set 75% as the marker for determining the
proper appointing authority, the provision has
Hence, all matters relating to its administration, meanwhile become unfair for ignoring the needs and
powers and functions were exercised through its local circumstances of Cebu City as the LGU accounting
executives led by the City Mayor, subject to the for the majority of the active water service
President's retained power of general supervision connections, and whose constituency stood to be the
over provinces, HUCs, and independent component most affected by the decisions made by the MCWD's
cities pursuant to and in accordance with Section 252 Board of Directors. Indeed, the classification has truly
of the 1991 Local Government Code, a law enacted ceased to be germane or related to the main objective
for the purpose of strengthening the autonomy of the for the enactment of P.D. No. 198 in 1973.
LGUs in accordance with the 1987 Constitution.

Article X of the 1987 Constitution guarantees and Under the foregoing circumstances, therefore, the
promotes the administrative and fiscal autonomy of RTC gravely abused its discretion in upholding
the LGUs. The foregoing statutory enactments Section 3(b) of P.D. No. 198. It thereby utterly
enunciate and implement the local autonomy disregarded the clear policies favoring local autonomy
provisions explicitly recognized under the 1987 enshrined in the 1987 Constitution and effected by the
Constitution. To conform with the guarantees of the 1991 Local Government Code and related
Constitution in favor of the autonomy of the LGUs, subsequent statutory enactments, and for being
therefore, it becomes the duty of the Court to declare violative of the Due Process Clause and the Equal
and pronounce Section 3(b) of P.D. No. 198 as Protection Clause of the 1987 Constitution.
already partially unconstitutional.

WHEREFORE, we GRANT the petition for

certiorari; ANNUL and SET ASIDE the decision
Section 3(b) of P.D. 198 is unconstitutional for rendered in Civil Case No. CEB-34459 on November
violating the Due Process Clause and 16, 2010 by the Regional Trial Court, Branch 18, in
the Equal Protection Clause Cebu City;
We opine that although Section 3(b) of P.D. No. 198 and DECLARE as UNCONSTITUTIONAL Section
provided for substantial distinction and was germane 3(b) of Presidential Decree No. 198