Cebu Oxygen & Acetylene Co., Inc. vs. Bercilles

The Court held that a municipal charter provision expressly granting a city council the authority to close or abandon city roads is constitutionally valid, and that once a public road is formally withdrawn from public use, it legally converts from property of public dominion to patrimonial property of the city. Consequently, the converted property falls within the commerce of man, may be lawfully sold by the municipal government, and is registrable under the Torrens system.

The terminal portion of M. Borces Street in Mabolo, Cebu City, was originally established and maintained as a public road for public use. On September 23, 1968, the Cebu City Council adopted Resolution No. 2193, officially declaring the terminal portion of the street abandoned after determining it was excluded from the City Development Plan. Following the declaration of abandonment, the City Council authorized the Acting City Mayor to dispose of the land via public bidding through Resolution No. 2755. The petitioner emerged as the highest bidder and executed a deed of absolute sale with the City of Cebu for P10,800.00 on March 3, 1969. The petitioner subsequently filed an application for original registration of title over the purchased portion.

• The petitioner sought registration of title over a specific parcel of land comprising the terminal portion of M. Borces Street, Mabolo, Cebu City.
• On September 23, 1968, the Cebu City Council adopted Resolution No. 2193, officially declaring the terminal portion of the street abandoned because it was not included in the City Development Plan.
• Pursuant to Resolution No. 2755 dated December 19, 1968, the City Council authorized the Acting City Mayor to sell the abandoned portion through public bidding.
• The petitioner participated in the bidding, emerged as the highest bidder, and executed a deed of absolute sale with the City of Cebu on March 3, 1969, for a consideration of P10,800.00.
• The petitioner subsequently filed an application for original registration of title with the Court of First Instance of Cebu to perfect ownership over the purchased lot.
• The Assistant Provincial Fiscal of Cebu opposed the registration, moving to dismiss the application on the ground that the subject property, being a former public road, remained part of the public domain and was outside the commerce of man.
• The trial court granted the motion and dismissed the registration application, prompting the petitioner to seek review before the Supreme Court.

• Petitioner maintained that the Revised Charter of Cebu City (Republic Act No. 3857), specifically Section 31, paragraph 34, expressly vested the City Council with the legislative power to close or abandon city roads.
• Petitioner argued that the valid exercise of this legislative authority to withdraw the street from public servitude legally converted the property into patrimonial property of the city.
• Petitioner contended that as patrimonial property, the land fell within the commerce of man, rendering the City's sale through public bidding lawful and the subsequent application for registration legally sustainable.

• Respondent, through the Assistant Provincial Fiscal representing the Solicitor General, argued that the subject property was originally established as a public road intended for public use.
• Respondent maintained that property classified as part of the public domain remains outside the commerce of man and cannot be the subject of private ownership or registration.
• Respondent asserted that the City Council lacked the authority to convert public domain property into alienable land, thereby rendering the deed of absolute sale void and the registration application improper.

• Procedural Issues: Whether the trial court correctly dismissed the land registration application on the ground that the subject property, being a former public road, remained part of the public domain and was outside the commerce of man.
• Substantive Issues: Whether Section 31, paragraph 34 of the Cebu City Charter (R.A. No. 3857) validly empowers the City Council to declare a city road abandoned, and whether such declaration converts the property into patrimonial property that may be alienated and registered.

• Procedural: The Court set aside the trial court's order of dismissal and directed the lower court to proceed with the hearing of the petitioner's application for registration of title. The Court found the dismissal legally erroneous because the property had been validly withdrawn from public use and converted to patrimonial status prior to the registration proceedings.
• Substantive: The Court ruled that the City Charter expressly authorized the City Council to close or vacate city roads, and the exercise of this discretionary power is not subject to judicial interference absent fraud or abuse. Because the terminal portion of M. Borces Street was formally withdrawn from public use, it ceased to be property of public dominion and became patrimonial property of the City pursuant to Article 422 of the Civil Code. As patrimonial property, it may be lawfully used or conveyed for any purpose applicable to other city-owned real property. Accordingly, the sale to the petitioner was valid, and the petitioner acquired a registrable title over the lot.

• Conversion of Public Dominion Property to Patrimonial Property — Property of public dominion ceases to be inalienable and converts to patrimonial property when it is formally withdrawn from public use or public service. Once converted, the property falls within the commerce of man and may be alienated, sold, or registered by the State or local government unit. The Court applied this doctrine by holding that the formal declaration of abandonment by the City Council effectively withdrew the street from public servitude, thereby triggering its reclassification as patrimonial property subject to private acquisition and registration.
• Judicial Non-Interference with Discretionary Municipal Powers — The power of a municipal council to vacate or close streets and alleys is discretionary and will not be controlled or interfered with by the courts absent a clear showing of abuse, fraud, or collusion. The Court applied this principle by affirming the City Council's determination that the road was no longer necessary for public use and refusing to invalidate the abandonment ordinance merely because private interests were incidentally served.

• "Property of public dominion, when no longer intended for public use or for public service, shall form part of the patrimonial property of the State." — The Court cited Article 422 of the Civil Code to establish the legal mechanism by which the abandoned road segment transitioned from inalienable public domain to alienable patrimonial property, thereby validating the subsequent municipal sale and registration application.
• "Such power to vacate a street or alley is discretionary. And the discretion will not ordinarily be controlled or interfered with by the courts, absent a plain case of abuse or fraud or collusion. Faithfulness to the public trust will be presumed." — Quoting Favis v. City of Baguio, the Court emphasized that municipal determinations regarding the necessity of public roads are presumptively valid and insulated from judicial second-guessing, reinforcing the legality of the City Council's abandonment resolution.

• Favis v. City of Baguio, G.R. No. L-29910, April 25, 1969 — Cited as controlling precedent to affirm that a city council possesses the inherent discretionary authority to withdraw streets from public use, and that such legislative acts are presumptively valid and not subject to judicial interference absent fraud or abuse.

• Section 31, Paragraph 34, Republic Act No. 3857 (Revised Charter of Cebu City) — Cited as the enabling provision granting the Cebu City Council the explicit legislative power to close or abandon city roads and to subsequently convey or use properties withdrawn from public servitude.
• Article 422, Civil Code of the Philippines — Cited as the governing substantive rule providing that property of public dominion ceases to be inalienable and forms part of the patrimonial property of the State once it is no longer intended for public use or public service.