Municipality of Makati vs CA

Principle/s:

-        General Rule: Public funds are not subject to levy and execution. Unless otherwise, provided by the statute.

-        State’s inherent power of eminent domain (expropriation)

Municipality of Makati vs CA

GR Nos. 89898-99, 1990

FACTS:

The present petition for review is an off-shoot of expropriation proceedings initiated by petitioner Municipality of Makati against private respondent Admiral Finance Creditors Consortium, Inc., Home Building System & Realty Corporation and one Araceli P. Jo, involving a parcel of land and improvements thereon located at Mayapis St., San Antonio Village, Makati.

ISSUE:

Whether public funds may be subject to levy and execution?

HELD:

The funds deposited in the second PNB account are public funds of the municipal government. In this jurisdiction, it is a well-settled rule that public funds are not subject to levy and execution. Unless otherwise, provided for by statute. More particularly, the properties of a municipality, whether real or personal, which are necessary for public use cannot be attached and sold at execution sale to satisfy a money judgment against the municipality. Municipal revenues derived from taxes, licenses and market fees, and which are intended primarily and exclusively for the purpose of financing the governmental activities and functions of the municipality are exempt from execution.

The state’s inherent power of eminent domain as to just compensation provides that not only the correct determination of the amount to be paid to the owner of the land but also the payment of the land within a reasonable time from its taking. Without prompt payment, compensation cannot be considered “just” for the property owner is made to suffer the consequence of being immediately deprived of his land while being made to wait for a decade or more before actually receiving the amount necessary to cope with his loss.