Monday, March 17, 2014

[Digest] Bel-Air Association vs. Intermediate Appellate Court (1989)

BEL-AIR ASSOCIATION V. IAC (1989)
  Sarmiento, J.

STATEMENT OF THE CASE
Before the Court are six consolidated petitions, docketed as G.R. nos. 71169, 74376, 76394, 78182, 82281 and 60727. The first five petitions for a motion for reconsideration raise the issue of whether Jupiter Street is for the exclusive use of Bel-Air Village residents. Meanwhile, the last petition (G.R. 60727) raises the lone issue of whether or not the Mayor of Makati could have validly opened Jupiter and Orbit Streets to vehicular traffic.

Facts
·         Ayala Corporation (original owner of the property subsequently subdivided as Bel-Air Village) executed a Deed of Donation covering Jupiter and Orbit streets to Bel-Air Village Association (BAVA).
·         Respondents allege that upon instructions of the Mayor of Makati, studies were made by the on the feasibility of opening streets in Bel-Air Village calculated to alleviate traffic congestions along the public streets adjacent to Bel-Air Village.
o    Accordingly, it was deemed necessary by the Municipality of Makati in the interest of the general public to open to traffic several village streets including Jupiter and Orbit streets.
·         Respondent’s claim: BAVA had agreed to the opening of Bel-Air Village streets and that the opening was demanded by public necessity and in the exercise of police power.
·         Petitioner’s counter-argument: It has never agreed on the opening of Jupiter and Orbit streets. By virtue of its ownership of the streets, it should not be deprived without due process of law and without just compensation.

ISSUES/HOLDING
a.       W/N the Mayor of Makati could have validly opened Jupiter and Orbit streets? – YES
b.       If yes, what is the nature of the state power being invoked by the Mayor? – POLICE POWER

RATIO
a. BAVA cannot rightfully complain that the Mayor of Makati, in opening up Jupiter and Orbit streets, had acted arbitrarily.
  • Citing Sangalang v. IAC, the Court held that Jupiter street lies as the boundary between Bel-Air Village and Ayala Corporation’s commercial section. Being considered as merely a boundary – and hence not part of Ayala’s real estate development projects – it cannot be said to have been for the exclusive benefit of Bel-Air Village residents.
  • The very Deed of Donation executed by Ayala Corp. covering Jupiter and Orbit Streets, amongst others, effectively required both passageways open to the general public.
o    “…the property will be used as a street for the use of the members of the DONEE (BAVA), their families, personnel, guests, domestic help and under certain reasonable conditions and restrictions, by the general public…”
  • As the Court asserted in Sangalang, the opening of Jupiter and Orbit streets was warranted by the demands of the common good, in terms of traffic decongestion and public convenience.

b. The act of the Mayor now challenged is in the concept of police power.
o    The demolition of the gates at Orbit and Jupiter streets does not amount to deprivation of property without due process of law or expropriation without just compensation – there is no taking of property involved.
o    Police power as the “state authority to enact legislation that may interfere with personal liberty or property in order to promote the general welfare.”
o    Even liberty itself, the greatest of all rights, is not unrestricted license to act accordingly to one’s will. It is subject to the far more overriding demands and requirements of the greater number.
o    Public welfare when clashing with the individual right to property should not be made to prevail through the state’s exercise of its police power.
o    The exercise of police power, however, may not be done arbitrarily or unreasonably. But the burden of showing that it is unjustified lies on the aggrieved party.
o    In the case at bar, BAVA has failed to show that the opening up of Orbit and Jupiter streets was unjustified or that the Mayor acted unreasonably.
o    The fact that the opening has led to the loss of privacy of BAVA residents is no argument against the Municipality’s effort to ease vehicular traffic in Makati. The duty of local executive is to take care of the needs of the greater number, in many cases at the expense, of the minority.


DISPOSITIVE: Motion for reconsideration by Bel-Air Village Association is DENIED with FINALITY. The petition in G.R. 60727 is GRANTED. 

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