Hagonoy Market Vendor Association v. Municipality of Hagonoy, Bulacan

G.R. No. 137621 · 2002-02-06 · J. PUNO, J.: · Primary: Taxation; Secondary: Remedial Law
REITERATION

Facts

1. The Antecedents: The Sangguniang Bayan of Hagonoy, Bulacan, enacted Municipal Ordinance No. 28, increasing market stall rentals. The ordinance was approved on October 7, 1996, and posted from November 4-25, 1996. The petitioner, Hagonoy Market Vendor Association, claims they were unaware of the ordinance's approval and effectivity until they were personally given copies in November 1997, asserting that no public hearing was conducted and the ordinance was not properly posted. 2. Procedural History: The petitioner filed an appeal with the Secretary of Justice on December 8, 1997, assailing the ordinance. The Secretary of Justice dismissed the appeal as time-barred, finding it was filed over a year after the ordinance's effectivity in October 1996, contrary to the thirty-day period prescribed by Section 187 of the Local Government Code. The petitioner's motion for reconsideration was denied. Subsequently, the petitioner appealed to the Court of Appeals, which dismissed the appeal for being formally deficient due to the absence of certified true copies of the assailed resolutions. The petitioner's motion for reconsideration of this dismissal was also denied. 3. The Petition: The petitioner seeks review of the Court of Appeals' resolution, arguing that the appellate court erred in strictly adhering to procedural rules, specifically Section 6, Rule 43 of the 1997 Rules of Court, by dismissing their appeal for failure to attach certified true copies. They contend that their failure was due to a fortuitous event (Typhoon Loleng) and should have been considered substantial compliance. The petitioner also argues that the Secretary of Justice should have overlooked the procedural technicality and ruled on the merits of their challenge to Ordinance No. 28, which they claim was invalidly enacted, contrary to law, and unconstitutional, particularly its retroactive effect from October 1, 1996.

Issue(s)

Whether the Court of Appeals erred in strictly adhering to procedural rules and dismissing the petition for review, and whether the petitioner's failure to attach certified true copies of the assailed Resolutions was due to a fortuitous event and constituted substantial compliance. Whether the appeal filed with the Secretary of Justice was time-barred. Whether Ordinance No. 28 was validly enacted and posted. Whether Ordinance No. 28 was validly enacted and posted, specifically regarding the petitioner's claim of unawareness of the ordinance's effectivity. Whether the ordinance could be enforced retroactively, and whether the ordinance suffered from uniform imposition or unreasonable classification of public markets.

Ruling

The petition is DISMISSED for lack of merit. While the Court of Appeals erred in dismissing the appeal on the ground of formal deficiency due to the fortuitous event of typhoon "Loleng," the appeal to the Secretary of Justice was nonetheless time-barred.

Ratio Decidendi

On the dismissal by the Court of Appeals due to formal deficiency: The Court agreed with the petitioner that the Court of Appeals erred in dismissing the appeal on the ground of formal deficiency. The petitioner satisfactorily explained its failure to attach certified true copies of the assailed Resolutions due to typhoon "Loleng," which caused bad weather and suspension of government work, preventing the certification of the copies. Under these circumstances, the appellate court should have tempered its strict application of procedural rules in view of the fortuitous event, considering that litigation is not a game of technicalities, citing Government Service Insurance System vs. Court of Appeals. However, this finding does not lead to the reversal of the case. On the timeliness of the appeal to the Secretary of Justice: The Court held that the petition should be dismissed because the appeal of the petitioner with the Secretary of Justice was already time-barred. Section 187 of the 1991 Local Government Code mandates that any question on the constitutionality or legality of tax ordinances may be raised on appeal within thirty (30) days from the effectivity thereof to the Secretary of Justice. In this case, Municipal Ordinance No. 28 took effect in October 1996, but the petitioner filed its appeal only in December 1997, more than a year after the ordinance's effectivity. The Court emphasized that the periods fixed by law for availing legal remedies are mandatory and not mere technicalities, especially for revenue measures, citing Commissioner of Internal Revenue vs. Algue, Inc., as the validity of revenue measures should not be left uncertain for a considerable length of time. On the petitioner's claim of unawareness of the ordinance's effectivity: The Court disagreed with the petitioner's contention that its appeal period should be counted from when its members were personally given copies in November 1997. The petitioner's assertion that no public hearing was conducted was belied by its own evidence showing participation in meetings and by the respondent's submission of minutes of public hearings. The Court clarified that while public hearings allow ventilation of views, these views are not binding on the legislative body. Regarding posting, the records showed compliance with Section 188 of the Local Government Code, with the ordinance posted in public places from November 4-25, 1996, in lieu of publication due to the absence of a local newspaper. The petitioner's claim of unawareness was disproved by positive evidence. On the petitioner's claim of unawareness of the ordinance's effectivity: The Court disagreed with the petitioner's contention that its appeal period should be counted from when its members were personally given copies in November 1997. The petitioner's assertion that no public hearing was conducted was belied by its own evidence showing participation in meetings and by the respondent's submission of minutes of public hearings. The Court clarified that while public hearings allow ventilation of views, these views are not binding on the legislative body. Regarding posting, the records showed compliance with Section 188 of the Local Government Code, with the ordinance posted in public places from November 4-25, 1996, in lieu of publication due to the absence of a local newspaper. The petitioner's claim of unawareness was disproved by positive evidence. On the substantive issues: The Court found that the substantive points raised by the petitioner also lacked merit. Section 6c.04 of the 1993 Municipal Revenue Code and Section 191 of the Local Government Code, limiting percentage increases, apply to tax rates, not rentals. The ordinance also did not suffer from uniform imposition or unreasonable classification of public markets, as it covered all three public markets, excluding only a makeshift, dilapidated place for transient peddlers.

Main Doctrine

While courts generally frown upon an uncompromising application of procedural laws so as not to subvert substantial justice, the periods provided for appeal under Section 187 of the Local Government Code are mandatory and cannot be considered a mere technicality, especially concerning revenue measures, the validity of which should not be left uncertain for a considerable length of time. However, a strict application of procedural rules may be relaxed in instances of fortuitous events, provided due diligence was exerted.

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