G.R. No. L-58794 & L-64489, 24 August 1984

FACTS:

The Sanggunian Bayan of Bayambang, Pangasinan passed a Resolution establishing the Bayambang Fishery and Hunting Park and Municipal Water Shed embracing all the vast area of the Mangabul Fisheries consisting of about 2,061 hectares. In the said ordinance, the municipality designated appointed and constituted private respondent Geruncio Lacuesta as Manager-Administrator for a period of 25 years, renewable for another 25 years, under the condition that said respondent shall pay the municipality a sum equivalent to 10% of the annual gross income that may be derived from the sale of forest products, wild game and fish, which amount shall not be less than P200,000.00 annually. He was further required to post a bond in the amount of P200,000.00 to guaranty payment of the 10% due the municipality.

The said Ordinance was approved by the Provincial Board of Pangasinan and thereafter was forwarded to the then Secretary of Agriculture and Natural Resources for approval pursuant to the provisions of the Fisheries Act, Act No. 4003. However, the Secretary disapproved the Ordinance because it grants fishery privileges to respondent Lacuesta without the benefit of competitive public hearing in contravention of the provisions of Act 4003 as amended.

The Municipality then informed respondent Lacuesta of the disapproval of the Ordinance by the Secretary and directed him to refrain and desist from acting as Administrator-Manager under the contract but the latter refused and insisted in maintaining possession of the fisheries. Inspite of such refusal, the Sanggunian Bayan of Bayambang, Pangasinan passed another Resolution, resolving to advertise for public bidding all fisheries at the Mangabul area for four years and to direct the Municipal Treasurer to prepare the necessary notices of public bidding, and accordingly, the Municipal Mayor and the Municipal Treasurer caused to issue a Notice of Public Bidding. Among the winning bidders were the petitioners herein, the spouses Lydia Terrado and Martin Rosario and Domingo Fernandez who were immediately placed in possession of the Mangabul.

Private respondent Lacuesta immediately filed a petition for prohibition and mandamus with damages against the Municipal Mayor, the Municipal Treasurer, the Sanggunian Bayan and the members thereof, praying that the respondent municipal officials named therein be prohibited from executing any contract of lease with the winning bidders and from enforcing the second Resolution and further asked that a temporary restraining order be issued against said respondent officials from performing the acts enjoined.

ISSUE:

Whether the municipal order granting private responded Lacuesta administration is valid?

RULING:

The Ordinance is clearly against the provisions of the law for it granted exclusive fishery privileges to the private respondent without benefit of public bidding. Under the Fisheries Act, the Municipality may not delegate to a private individual as Manager-Administrator to “use or dispose of the fisheries portion in accordance with the general law on municipal waters” nor to charge foes for fishing and hunting in the park, much less sell forest products, wild games and fish from the area. Neither can the Municipality grant the exclusive privilege of fishing for a period more than five (5) years, whereas in the instant case, the period granted the Manager-Administrator was for twenty-five (25) years, renewable for another twenty-five years.

Essentially, the contract of management and administration between the Municipality and Lacuesta is one of agency whereby a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter. Here in the case at bar, Lacuesta bound himself as Manager-Administrator of the Bayambang Fishing and Hunting Park and Municipal Watershed to render service of perform duties and responsibilities in representation or on behalf of the Municipality of Bayambang, with the consent or authority of the latter pursuant to Ordinance No. 8 Under Article 1919, New Civil Code, agency is extinguished by the death of the agent. His rights and obligations arising from the contract are not transmissible to his heirs.

Since Ordinance No. 8 and the contract of management and supervision is null and void, the Alias Writ of Execution and Possession dated November 6, 1981 and the Order of October 8, 1982 for the issuance of writ of execution and possession to place and restore possession of the Mangabul Fisheries of portions thereof or fisheries therein to Lacuesta, his agents, men and/or representatives under the said contract and by virtue of the ordinance are, including the writ also issued without legal force and effect.

*Case digest by Meriam Rika R. Wong, JD-IV, Andres Bonifacio College, SY 2019 – 2020