RTC voids SP resolution authorizing MC Adore sale
“PASSED IN INDECENT HASTE”
NULL and void.
This was the decision handed on May 20 down by the Regional Trial Court (RTC) on the resolution passed by the Dagupan sanggunian panlungsod authorizing Mayor Benjamin Lim to negotiate the sale of the city-owned MC Adore Hotel and a piece of land in Calasiao town.
RTC Judge Mervin Jovito Samadan of Branch 40 made the ruling in connection with the petition for declaratory relief regarding the validity of Resolution No. 6738-2012 passed by the Sangguniang Panlungsod (SP) on April 20, 2012 in a controversial special session.
Aside from Lim, the other respondents in the case are Councilors Jesus Canto, Ma. Librada Fe Reyna, Karlos Liberato Reyna, Marc Brian Lim, Redford Christian Erfe-Mejia, Luis Samson Jr., Alvin Coquia, Guillermo Vallejos and John Chester Gonzales.
The petition questioning the official act of the respondents in passing the resolution was filed by SP Secretary Ryan Ravanzo, whom the court said has the legal interest and the right “to be informed on whether or not the sanggunian can pass the resolution considering its alleged illegal infirmity”.
Even after Ravanzo filed the petition and the subsequent issuance of a temporary restraining order by the court, Lim went on to form a disposal committee and appointed himself as head then subsequently sold MC Adore to a Manila-based company for P119 million.
“The vortex of the present controversy as posed by both parties in this case is whether or not Resolution No. 6738-2012 enacted by the Sangguniang Panlungsod of Dagupan City is valid,” wrote Samadan in his decision.
The judge cited the case bringing to the fore the legitimacy of the issuance of a resolution prompted by a letter coming from the office of Lim, which was approved while City Vice Mayor Belen Fernandez, chair of the SP, was on official leave.
LOCAL GOVERNMENT CODE
The court said that in the first place, a local government unit (LGU) such as the City of Dagupan cannot authorize the sale of a private property through a mere resolution of its lawmaking body, stressing that Republic Act No. 7160, the Local Government Code (LGC), “expressly and clearly requires an ordinance for the purpose, thus a mere resolution will not suffice”.
Section 455, Sub-section (b), Paragraph (1), Sub-paragraph (vi) of RA No. 7160 provides for the indispensability of the sanggunian’s authorization in the execution of contracts which binds the LGU to new obligations.
The decision of the court further reads, “Note should be taken of the fact that RA No. 7160 does expressly state the form that the authorization by the sanggunian has to take. Such authorization must be done through an ordinance.”
“INDECENT HASTE”
This means that if the Sanggunian intends to authorize Lim to sell the two properties, such authority should not be given just by a mere resolution but by means of an ordinance duly approved by at least 2/3 of all the members of the SP.
The court declared that the “Respondents’ averments evince an obvious knowledge and voluntariness on their part to approve the resolution in indecent haste”.
Samadan further said that even assuming arguendo that the authorization may be done through a resolution, it will still be a nullity for lack of notice requirement in accordance with Section 52 (d) of the LGC as reiterated under Article 105 of its implementing rules and regulations.
At the same time, the SP could have appointed a temporary Secretary in case the SP Secretary is absent on a regular or special session.
The court decision said the respondents committed a graver mistake with the questioned Resolution not having undergone two reading requirements in gross violation of Article 107 of the Implementing Rules and Regulations of the LGC.
SALE IS VOID
The court said that failure to comply with a mandatory procedural requirement of having a second reading has the effect of rendering void “all the acts” in connection therewith, implying that the subsequent sale of MC Adore is also void.
Samadan said the court is not ready to lend its approval to a course of action which would achieve one object of desire at the expense of the orderly administration of justice and observance of due process.
“Concededly, the challenged resolution was enacted with the best motives. But in spite of its virtuous aims, the enactment of the resolution has no statutory authority to stand on. All told, the court declares the resolution in question invalid,” he said.
Incoming Mayor Belen Fernandez said she is bent on recovering MC Adore to serve the purpose for which the city government bought it for under Lim’s administration, which is to convert it into the new Dagupan City hall.
Fernandez assumed as acting mayor on May 16, three days after Lim was rushed to a hospital reportedly in Metro Manila and has not reported back since.
Lim’s family has declined to divulge his exact whereabouts and his health condition except for belying reports that he has died after suffering a stroke.
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