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[MUNICIPALITY OF CATBALOGAN v. DIRECTOR OF LANDS](https://www.lawyerly.ph/juris/view/cf17?user=fbGU2WFpmaitMVEVGZ2lBVW5xZ2RVdz09)
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17 Phil. 216

[ G. R. No. 5631, October 17, 1910 ]

THE MUNICIPALITY OF CATBALOGAN, PETITIONER AND APPELLEE, VS. THE DIRECTOR OF LANDS, OPPONENT AND APPELLANT.

D E C I S I O N

TORRES, J.:

On June 19, 1908,  the municipal president of the  pueblo of Catbalogan, Province of Samar,  filed, in the name of the municipality, an application  with the Court of Land  Registration in which he asked for the registration, in conformity with the Land Registration Act, of a parcel of land of which the said municipality was the absolute owner, bounded on the north  by calle Corto  south of  the  church square, on the east by Second Avenue, on the south by land belonging to Smith, Bell & Co., and on the west by First Avenue; the application states that the said land has an area of 666.60 square meters and its description  and boundaries are given in detail in the map attached to the  application, which sets forth that the property described  was appraised at the last assessment levied for the  purpose of the payment of the land tax, and that there is no encumbrance  on it; that no one other than the applicant, to the latter's best knowledge and belief, has any right or interest therein; that the said land was acquired by possession  and material occupation for  a large number of years and is  at present occupied by the  applicant as a municipal corporation duly organized; and that, in the unlikely  event of the  denial  of the said application, made in accordance with the Land Registration Act, the applicant invokes the benefits of chapter 6 of Act No. 926, since the said corporation has been in possession of the land mentioned, which is entirely surrounded by  a fence, and has been  cultivating it  for  a  great many years.

On March 18, 1909, the Attorney-General,  in representation of the Director of Lands, filed a writing opposing the registration solicited  and alleged that the land in question belonged to the United States and was  under the control of the Government  of the Philippine Islands.  He asked that the applicant's prayer be denied and that, in case the said property should be  declared  to belong to  the Insular Government, the same be awarded to it, together with the issuance thereto of the proper certificate of registration.

The  case having been heard  on March 22, 23, and 24, 1909, and oral evidence adduced by both parties, the judge, on the 24th of the said month, overruled the opposition of the Director of Lands, and decreed,  after a declaration of general default, that the property in question be awarded to the applicant, the municipality of Catbalogan,  and be registered in its name.  The Attorney-General,  in representation of the Director of Lands, excepted to this ruling and  announced his purpose of filing a bill of exceptions. He asked at the same time for a new trial on the grounds that  the findings  of fact  of the court were openly  and manifestly contrary to the weight of the evidence, and  that the latter did not justify the said decision which, he alleged, was  contrary to law.  This motion was denied and exception  was taken thereto by the Attorney-General,  who  duly presented the required bill of exceptions which was certified and forwarded to this court.

The question submitted to the  decision of this court, through the appeal raised by the Attorney-General in representation  of  the  Director of  Lands, is  whether  the lot occupied by the court-house of the municipality of Catbalogan, of the Island and Province of Samar, belongs to the said  municipality  or is state land under the control of the Insular Government.

In  order to  obtain a better understanding of the  final conclusion to be established in this decision,  it is  meet to state: That for the purpose of the establishment  of  new pueblos in this  Archipelago, at the beginning of its occupation  by the Spaniards, an endeavor was always made to find, in favorable places, a nucleus of inhabitants and, later, near  the pueblos already  established, barrios, which ordinarily served as a basis for  the  formation  of other  new pueblos that  became as populated as the centers  on which they were dependent.

The executive  authorities  and  other officials who  then represented the Spanish Government in these Islands were obliged to adjust  their procedure,  in the  fulfillment of their duties with  regard  to  the  establishment and laying out of new towns, to the Laws of the Indies, which determined the course that they were to pursue for such purposes, as may be seen by the following:

Law 6, title 5, book 4, of the Recompilation of the Laws of the Indies, provides, among other things:
"That within the boundaries which may be assigned to it, there must be at least thirty residents,  and each one of them must have a house," etc.

Law 7 of the same title and book contains this provision;

"Whoever wishes to undertake to establish a new town in the manner provided for, of not more  than thirty nor less than  ten residents,  shall be granted the time and territory  necessary for the  purpose and under the same conditions."
It may be affirmed that years afterwards all the  modern pueblos of the Archipelago  were formed  by taking as a basis for their establishment the  barrios already populated by a large number of  residents who, under the agreement to build the church of the  new  pueblo, the court-house, and afterwards the schoolhouse, obtained from the General Government  the administrative separation of their barrio from the  pueblo on which it depended and in whose territory it was previously comprised.  In such cases procedure analogous to that  prescribed by the Laws of the Indies was observed.

For the establishment, then, of new pueblos, the administrative authority of the province,  in representation of the Governor-General, designated the  territory  for their location and extension and the metes and bounds of the same; and before allotting the lands among the  new settlers, a special demarcation was made of  the places which were to serve as the  public square of the pueblo, for the erection of the church, and as sites for the public buildings,  among others, the municipal building or the casa real, as well as of the lands which were to constitute the commons, pastures, and propios of the municipality and the streets and roads which were to intersect the new town were laid out, as may be seen by the following laws:

Law 7, title 7, book 4, of the Recompilation of the Laws of the Indies, provides:
"The district or territory to be given for settlement by composition shall be allotted in the following manner. There shall first be set apart the portion  required for the lots  of the pueblo,  the exido or public  lands, and pastures amply sufficient for the stock which the residents may have, and as much more as propios del lugar or common lands of the locality; the rest of the territory and district shall be divided into four parts - one of them, of his choice, shall be for him who takes upon himself the obligation to found the pueblo, and the other three shall be apportioned equally among the settlers."
Law  8, of the same title and book, prescribes,  among other things:
"That, between the main  square and the church, there shall be constructed the casas reales or municipal buildings, the cabildo,  concejo, customs buildings," etc.
Law 14 of the said title and book, also directs among other things:
"That the viceroys shall have set aside such lands as  to them appear suitable as the common lands  {propios) of the pueblos that have none, therewith to assist in the payment of the salaries of the corregidores, and sufficient public lands (exidos) and pasture lands as provided for and prescribed by law."
Law  1, title 13 of the aforesaid  book, provides the following:
"Such viceroys and governors as have due authority shall designate to each villa and  lugar newly founded and settled the lands and lots which they may need and may be given to them, without detriment to a third party, as propios, and a statement  shall be sent to us of what was designated and given to each,  in order that we may have such  action approved."
The municipality of Catbalogan, as the provincial  seat of Samar, must have been the first and oldest pueblo established in the said province and has been occupying, if not since time immemorial, as affirmed in the application, at least for a long period of years,  some forty or forty-five years according to the evidence given  at trial, the lot in litigation on  which it  had built the successive court-house buildings constructed  for  the  public service of the head municipal authority and his council.  Some of these buildings were burned and others were ruined by typhoons.  The court-house building aforesaid has been used and enjoyed quietly and peaceably and without  any opposition up to the present time, wherefore it is to be  presumed that, on founding the pueblo and on proceeding to designate and demarcate the area of land to be  occupied by the town of Catbalogan, with its square, streets, church, and other public buildings, the said lot was also designated' as a site for the municipal or court building, in accordance with the laws herein before mentioned, and that the adjudication of the lot to the municipality  for  its  court-house  was  duly confirmed  by the Spanish Government,  as must be  inferred,  in  view of the continuous possession for so long a time up to the present; nor does the record show that the court-house of the said pueblo was ever built on any  other lot  than the one in question.

It is to be noted that, in former times, the court-house buildings of  the pueblos were called casas reales  (royal buildings), undoubtedly for the purpose of giving greater dignity  to the principle  of authority represented in them and inculcating respect among the  inhabitants of the pueblo toward the building w^iere the chief local authority exercised his governmental duties and  at the same time administered justice, for  the old pedaneos or petty mayors, later called capitanes or gobernadorcillos, while they had governmental powers, at  the same time  administered justice as local judges.

In paragraph 92  of the royal ordinances of February 26, 1768, the following appears, among other things:
"And because, while there is a notable excess of pomp in the buildings of the ministers and parish priests, there is, on the other  hand,  great abandonment  of the casas reales which, as a general rule,  are not habitable on account of their uncomfortable and ruinous conditions, etc.,   *  *  * it is ordered that in all the pueblos, and especially in those of the seats of government, the native inhabitants thereof shall  erect  decent  and   convenient  municipal  buildings modeled  after the  plans  to  be furnished by the central government, and that therein the gobernador cillos shall have their court rooms and their jails for the security of prisoners, and all leaks and  other damages  shall be  repaired in time in order that, through neglect they may not cause greater detriment and expense."
If the inhabitants of a pueblo, at the time of its foundation,  were obliged  to erect their casa  real  or municipal building, it is to be supposed that they built it on their own ground after a designation of the site had been made by the governmental  authority of the  province - a designation which had to be made, according to the Laws of the Indies, at the same time as that of the main plaza and of the site to be occupied by the temple or church, which latter building is so necessary  and indispensable for every pueblo as well as the casa real or court-house, since in them, respectively, divine worship is had and the local authorities perform their duties.   The land designated for the church is considered to belong thereto, and likewise the land intended for the court-house should  be deemed to be the property of the pueblo, awarded to it for the public uses of the municipality, since no  pueblo was able to exist administratively without having a church of its own and a court-house which should be the seat of its local authority and its municipal government.

It should be remembered that the court-house and  the church  of every  pueblo were always  built, in accordance with the provisions of the Laws of the Indies, on one of the sides of the plaza mayor or main square of the town, either together or the same side,  or  each  building on an opposite side; but  the said square nearly always occupies a central site within the territory of the pueblo, with the  frequent exception of where the town has extended toward only one end or side of the territory, in which event its main square ceased to be in the center of the town.  However, the said square was never located outside of the inhabited place, as were the commons and pasturages.  (Law 13, title 7, book 4, Recompilation of the Laws of the Indies.)

It  is of course to be presumed1, in accordance with the provisions of the laws aforementioned, that the main square of the pueblo of Catbalogan occupies nearly the central part of its territory, and that the lot on which were successively constructed the several court-houses which the said pueblo has had, is situated on one of the  sides of the said square and consequently in a central point  and not outside the town.  It can not, however, on account of this circumstance, be concluded that the said lot formed a part of the commons, exido, or the pasturage lands  of the said pueblo, but consisted of land which belonged to the pueblo and was legally acquired through the  distribution  and adjudication  of lots made at the beginning of its  foundation, as proved by the laws  hereinbefore quoted.

In  technical administrative terms  bienes propios are: Cultivated real properties, pasturages, houses or any other property which a city, village, or hamlet has for the  payment of the public expenses.  The administration of this class of property lay with the municipalities, and they could be alienated after proper procedure and authorization of the competent superior authorities in accordance with the administrative laws.

It is therefore  unquestionable that  the assets of each pueblo comprised  its bienes propios  and  the revenues  or products derived therefrom, and this fact is recognized  in the Ordenanza de Intendentes of  1786, the forty-seventh article of which reads:
"The funds which any pueblo may have left over as an annual surplus from  the products  of its property and its taxes, after meeting the expenses specified in its own particular ordinance, shall be  invested in the purchase of real estate and revenue bearing investments, so that, having a sufficient income for the payment of its obligations and to aid in defraying its ordinary needs,  the excise taxes, which are always a burden to the public,  may be abolished; and in case  it should have no such taxes, nor annuities  to redeem on its common properties (propios), the said surplus shall be applied to promote establishments useful  to the pueblo and to its  province, or by investments  to  be previously proposed by the intendentes and approved by the junta superior."
From the foregoing it is concluded that the land in question is the common property of the pueblo and is comprised within the patrimonial property of the municipality of Catbalogan, to  which it  was awarded for  the construction thereon of the court-house, on the demarcation and distribution being made of the lands which were to be occupied by the town in its development, in accordance with the provisions  of the  Laws of the  Indies,  and other complementary laws,  at a time when there was an excess of land and few inhabitants to occupy them.  It was for this reason that the royal  cedula  of October 15, 1754, directed that neither the possessors of unappropriated  crown lands, nor their successors  in interest, should  be  disturbed  or  denounced, although they had no titles, it being sufficient for them  to prove their prior possession to obtain a title by just prescription.

The said municipality is today in possession of the land in litigation,  as the owner thereof, under the protection of the civil and  administrative laws which guarantee the right of ownership of the corporations that are  capable  of contracting,  acquiring,  and  possessing  real  and  personal property.

Article 343 of the Civil Code  reads:
"The property of provinces and of towns is divided into property for. public use and patrimonial property."
Article 344 of the same  code prescribes:
"Property for public use in provinces and in towns comprises the provincial and town roads, the squares,  streets, fountains, and public waters, the promenades, and public works of general service supported  by the said  towns or provinces.

"All other property possessed  by  either is patrimonial, and shall be governed by the provisions of this code, unless otherwise prescribed in special laws."
Section 2 of Act No. 82, entitled "The Municipal Code," is as follows:
"(a) Pueblos incorporated under  this Act shall be designated as municipalities (municipios), and shall be known respectively by the names heretofore  adopted.  Under such names they may sue and be sued, contract and be contracted with, acquire and hold real and personal property  for the general interests of the municipality, and exercise  all the powers hereinafter conferred  upon them.

"(b) All property  and  property  rights vested  in any pueblo under its former organization shall continue to be vested in  the  same  municipality after  its  incorporation under this Act."
By this last-cited administrative Act the  rights of the old municipalities to acquire real and personal property, in accordance with their former organization, are recognized, and it is declared that the  said property and rights shall continue to pertain to the municipalities created in harmony with the provisions of the Municipal Code, on account of such property being the patrimonial property of the municipalities.

Under these principles, perfectly in accord with both the old and the mother legislation of  this country, the municipality of Catbalogan ought to be considered as the owner of the land in question, on account of the same having been awarded to it as its own, under its exclusive ownership,  on the founding of the pueblo, for the erection  of the court-house, the record of the case showing no proof nor data to the contrary.  As the plaintiff municipality, the applicant, has been occupying the property on which its court-house is situated during such a long space of time, much longer than that required for extraordinary prescription (art. 1959 of the Civil Code), it can not be denied that the presumption exists, in its favor, that .it has been holding the land in its character of owner, since the trial record exhibits no proof that any other parcel  of land, distinct from that in controversy, was awarded to the  said municipality for the erection thereon of its court-house, a court-house and the land on which to build it being necessary and indispensable for the existence of the pueblo.

The  title under which the municipality  of Catbalogan holds and enjoys the said lot is the same as that under which it is recognized as a pueblo and under which the municipality is justified  in  its present occupancy  of the territory where the town is established with its streets, squares, and common lands (terreno comunal), a title identical with that now  held by the church, as a religious institution, to the land  now, occupied  by  the temple  that exists in the said pueblo.

At the time of the beginning of the foundation of the pueblo mentioned and of the distribution or allotment of the lands among its first inhabitants, who, in  accordance with the Laws of the Indies, must have numbered at least thirty men  with  their  respective families, for  the purpose  of founding a pueblo, perhaps none of them was provided with any particular title to accredit the fact that  this or  that parcel of land had fallen to him in the allotment.  Possibly the facts pertaining to the  distribution of the lands were entered in the record kept of the organization of the pueblo, if one such was made, for it must  be remembered that, in ancient times  and up to the  years immediately preceding the beginning of the nineteenth century, fewer records were made than in  modern times, and, besides,  the Laws of the Indies  themselves  recommended that,  in administrative proceedings, the institution of suits should  be avoided in so far as possible where verbal information and investigations could be had to enable proper action to be taken,

Besides the reasons hereinabove noted, there is that of the continuous and constant renovation of the personnel which composed the officials of a municipality in the Philippines, for the pedaneo or gobernadorcillo, his tenientes, judges, and other subordinates were first chosen  and  appointed annually, and later every two years; and, although in the beginning the capitan pedaneo of the pueblo may have had in his possession the record of the necessary concession and award of the land on which the court-house was built, and that of the pueblo of Catbalogan was constructed of stone, it would in nowise  be strange that, in spite  of the zeal and diligence which  may  have been  exercised by  his many successors, the said record or  title should have disappeared or been  destroyed  in the case of Catbalogan, during the lapse of  so long a time; indeed, it would be marvelous and extraordinary that  such a document should  exist, intrusted to the more or less diligent  care of so many  municipal officials who, at the most, occupied their offices but two years. It is certain, however, that the successive  court-houses which  the said pueblo has had have  occupied the  land in question  without opposition on the part of anyone, or of the state, and  including the  building which served as a court-house, together with the land on which it is built, as one of the properties which form the assets of the pueblo of Catbalogan, as they should  be classed, it is incontrovertible that the right of the said  municipality therein must be respected, as the right of ownership is consecrated  and sanctioned by the  laws of every  civilized country  in the interest and  for the benefit of society, public order,  and civtt&ation itself.

As has been shown in the preceding paragraphs, the  land in litigation, which is a lot  occupied  by the court-house, anciently termed the casa real, of the pueblo of Catbalogan, pertains  to the said pueblo,  awarded to  the same, not gratuitously,  but on account of the necessity arising from its organization, and forms a  part, as a patrimonial property, of its municipal assets,  and therefore it  is not comprised within the common land (terreno comunal) which may have been granted to the said pueblo. Law 8, title 3, book 6 of the Recompilation of the Laws of the Indies, is not applicable to the question at issue with respect to the said land or  lot,  nor are the  provisions of article 53  of the ordinances of good government, before cited, of February 26, 1768, nor the subsequent royal decrees of February 28, August 1,  1883,  and of January 17, 1885, relative to the legua or terreno comunal; and, consequently, the doctrine laid down in the decision rendered in the case of The City of Manila vs. The Insular Government (10 Phil. Rep., 327) is likewise inapplicable, for the  reason  that  the  land in dispute is not that of a common, but of a building lot of which  the  pueblo of Catbalogan had absolute  need at the beginning of its organization for the erection thereon of its court-house.  This was duly  proved  at trial,  without possible contradiction.

Notwithstanding the number  of years during which the municipality  of Catbalogan has been in possession of the lot, once it has been shown by unquestionable evidence that the property was assigned to it as  its  own, in order that it might erect its court-house thereon,  as  it did do at the beginning of its foundation, and its possession  of the said land not being by  mere  unlawful occupation,  the  municipality has no need to rely upon the right of prescription, although, being entitled to acquire and  possess property in the character of  owner, according to its organic law, it is not understood  why it  could not acquire such right by prescription  in accordance with law, it being, as  it is, a juridical person susceptible of rights and duties.

The  present  case has nothing to do with any contract made by the  old  municipality of Catbalogan, nor administrative acts or procedure of the applicant  herein,  but relates to its right of ownership  in a  parcel of  land vested with the character of bien propio of its own, or patrimonial property; for  which  reason the doctrine established in the decision  rendered in the case of Aguado vs. The  City of Manila (9 Phil. Rep., 513) is also inapplicable, inasmuch as the said  municipality, in the exercise  of the right of ownership in its  own  property, has  ail independent personality of its own, recognized  by law, and does not act as a mere delegate of the central authority.

For  the foregoing reasons,  and  considering that  the municipality of Catbalogan is the owner  of the land occupied by its court-house and that it is entitled  to have the said property registered in  its name in the Court of Land Registration,  it is proper, in our  opinion, to  affirm and we hereby affirm the judgment appealed from  in its present form.

Arellano, C.J., Moreland and Trent, JJ., concur.

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