Source: http://lawlibrary.chanrobles.com/index.php?option=com_content&amp;view=article&amp;id=50082:gr-140474-2007&amp;catid=1496&amp;Itemid=566
Timestamp: 2019-04-24 02:56:56+00:00

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MUNICIPALITY OF STA. FE, Petitioner, v. MUNICIPALITY OF ARITAO, Respondent.
This is an appeal by Petition for Review on Certiorariunder Rule 45 of the Rules of Court of the September 30, 1999 Decision1 of the Court of Appeals (CA) affirming in toto the August 27, 1992 Order2 of the Regional Trial Court (RTC) of Bayombong, Nueva Vizcaya, Branch 28, which dismissed Civil Case No. 2821 for lack of jurisdiction.
On October 16, 1980, petitioner Municipality of Sta. Fe, in the Province of Nueva Vizcaya, filed before the RTC of Bayombong, Nueva Vizcaya, Branch 28, Civil Case No. 2821 for the Determination of Boundary Dispute involving the barangays of Bantinan and Canabuan. As the parties failed to amicably settle during the pre-trial stage, trial on the merits ensued.
The trial was almost over, with petitioner's rebuttal witness already under cross-examination, when the court, realizing its oversight under existing law, ordered on December 9, 1988, the suspension of the proceedings and the referral of the case to the Sangguniang Panlalawigan of Nueva Vizcaya.3 In turn, the Sanggunian concerned passed on the matter to its Committee on Legal Affairs, Ordinances and Resolutions, which recommended adopting Resolution No. 64 dated September 14, 1979 of the former members of its Provincial Board.4 Said resolution previously resolved to adjudicate the barangays of Bantinan and Canabuan as parts of respondent's territorial jurisdiction and enjoin petitioner from exercising its governmental functions within the same. Subsequently, as per Resolution No. 357 dated November 13, 1989, the Sangguniang Panlalawigan approved the Committee's recommendation but endorsed the boundary dispute to the RTC for further proceedings and preservation of the status quo pending finality of the case.
Back in the RTC, respondent moved to consider Resolution No. 64 as final and executory. In its Order dated February 12, 1991,5 the trial court, however, resolved to deny the motion ruling that since there was no amicable settlement reached at the time the Provincial Board had exceeded its authority in issuing a "decision" favoring a party. The court held that, under the law in force, the purpose of such referral was only to afford the parties an opportunity to amicably settle with the intervention and assistance of the Provincial Board and that in case no such settlement is reached, the court proceedings shall be resumed.
A close study of the decision of the Honorable Supreme Court in the Municipality of Sogod case in relation to this case palpably shows that, contrary to the claim of respondent Municipality of Sta. Fe, through counsel, it involves boundary dispute as in this case.
As to the applicable law on the question of which agency of the Government can take cognizance of this case or whether or not this Court should proceed in exercising jurisdiction over this case, the same [had] been squarely resolved by the [Honorable] Supreme Court in the Municipality of Sogod case in this wise: "It is worthy to note, however, that up to this time, the controversy between these two Municipalities has not been settled. However, the dispute has already been overtaken by events, namely, the enactment of the 1987 Constitution and the New Local Government Code x x x which imposed new mandatory requirements and procedures on the fixing of boundaries between municipalities. The 1987 Constitution now mandates that [']no province, city, municipality or barangay may be created, divided, merged, abolished or its boundary substantially altered except in accordance with the criteria established in the local government code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected.['] x x x Hence, any alteration or modification of the boundaries of the municipalities shall only be by a law to be enacted by Congress subject to the approval by a majority of the votes cast in a plebiscite in the barrios affected (Section 134, Local Government Code). Thus, under present laws, the function of the provincial board to fix the municipal boundaries are now strictly limited to the factual determination of the boundary lines between municipalities, to be specified by natural boundaries or by metes and bounds in accordance with laws creating said municipalities."
We are not unmindful of the rule that where a court has already obtained and is exercising jurisdiction over a controversy, its jurisdiction to proceed to the final determination of the case is not affected by new legislation placing jurisdiction over such proceedings in another tribunal or body. This rule, however, is not without exception. It is not applicable when the change in jurisdiction is curative in character. As far as boundary disputes are concerned, the 1987 Constitution is the latest will of the people, therefore, the same should be given retroactive effect on cases pending before courts after its ratification. It mandates that "no province, city, municipality or barangay may be created, divided, merged, abolished or its boundary substantially altered except in accordance with the criteria established in the Local Government Code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected."
On the other hand, the Local Government Code of 1991 provides that "[a] local government unit may be created, divided, merged, abolished, or its boundaries substantially altered either by law enacted by Congress in the case of a province, city, municipality, or any other political subdivision, or by ordinance passed by the [s]angguniang [p]anlalawigan or [s]angguniang [p]anglungsod concerned in the case of a barangay located within its territorial jurisdiction, subject to such limitations and requirements prescribed in this Code (Book I, Title One, Chapter 2, Section 6, Local Government Code).
"SEC. 2167. Municipal Boundary Disputes. - How Settled. - Disputes as to jurisdiction of municipal governments over places, or barrios shall be heard and decided by the Court of First Instance of the Province where the municipalities concerned are situated x x x: Provided, That after joinder of issues, the Court shall suspend proceedings and shall refer the dispute to the Provincial Board x x x concerned for the purpose of affording the parties an opportunity to reach an amicable settlement with the intervention and assistance of the said Provincial Board x x x; Provided, further, That in case no amicable settlement is reached within sixty days from the date the dispute was referred to the Provincial Board x x x concerned, the court proceedings shall be resumed. The case shall be decided by the said Court of First Instance within one year from resumption of the court proceedings, and appeal may be taken from the said decision within the time and in the manner prescribed in Rule 41 or Rule 42, as the case may be, of the Rules of Court x x x"
(b) Boundary disputes involving two (2) or more municipalities within the same province shall be referred for settlement to the sangguniang panlalawigan concerned.
(e) In the event the sanggunian fails to effect an amicable settlement within sixty (60) days from the date the dispute was referred thereto, it shall issue a certification to that effect. Thereafter, the dispute shall be formally tried by the sanggunian concerned which shall decide the issue within sixty (60) days from the date of the certification referred to above.
This Court agrees with petitioner's contention that the trial court had jurisdiction to take cognizance of the complaint when it was filed on October 16, 1980 since the prevailing law then was Section 2167 of the RAC, as amended by Sec. 1 of R.A. No. 6128, which granted the Court of First Instance (now RTC) the jurisdiction to hear and decide cases of municipal boundary disputes. The antecedents of the Municipality of Sogod case reveal that it dealt with the trial court's dismissal of cases filed for lack of jurisdiction because at the time of the institution of the civil actions, the law in force was the old provision of Sec. 2167 of the RAC, which empowered the provincial boards, not the trial courts, to hear and resolve such cases.
The main point of inquiry, however, is whether the CA erred in affirming the trial court's dismissal of the instant case for lack of jurisdiction on the ground that at the time of the filing of the motion to dismiss the original jurisdiction to hear and decide, the case had been vested on the Sangguniang Panlalawigan and no longer on the RTC.
The Court rules that the appellate court did not err. The difference in the factual setting notwithstanding, Municipality of Sogod still applies in the sense that similar thereto the pendency of the present case has also been overtaken by events - the ratification of the 1987 Constitution and the enactment of the LGC of 1991.
(a.) Filing of petition - The sanggunian concerned may initiate action by filing a petition, in the form of a resolution, with the sanggunian having jurisdiction over the dispute.
(b.) Contents of petition - The petition shall state the grounds, reasons or justifications therefore.
(6) Such other documents or information as may be required by the sanggunian hearing the dispute.
(d.) Answer of adverse party - Upon receipt by the sanggunian concerned of the petition together with the required documents, the LGU or LGUs complained against shall be furnished copies thereof and shall be given fifteen (15) working days within which to file their answers.
(e.) Hearing - Within five (5) working days after receipt of the answer of the adverse party, the sanggunian shall hear the case and allow the parties concerned to present their respective evidences.
(f.) Joint hearing - When two or more sanggunians jointly hear a case, they may sit en banc or designate their respective representatives. Where representatives are designated, there shall be an equal number of representatives from each sanggunian. They shall elect from among themselves a presiding officer and a secretary. In case of disagreement, selection shall be by drawing lot.
(g.) Failure to settle - In the event the sanggunian fails to amicably settle the dispute within sixty (60) days from the date such dispute was referred thereto, it shall issue a certification to that effect and copies thereof shall be furnished the parties concerned.
(h.) Decision - Within sixty (60) days from the date the certification was issued, the dispute shall be formally tried and decided by the sanggunian concerned. Copies of the decision shall, within fifteen (15) days from the promulgation thereof, be furnished the parties concerned, DILG, local assessor, Comelec, NSO, and other NGAs concerned.
(i.) Appeal - Within the time and manner prescribed by the Rules of Court, any party may elevate the decision of the sanggunian concerned to the proper Regional Trial Court having jurisdiction over the dispute by filing therewith the appropriate pleading, stating among others, the nature of the dispute, the decision of the sanggunian concerned and the reasons for appealing therefrom. The Regional Trial Court shall decide the case within one (1) year from the filing thereof. Decisions on boundary disputes promulgated jointly by two (2) or more sangguniang panlalawigan shall be heard by the Regional Trial Court of the province which first took cognizance of the dispute.
ART. 18. Maintenance of Status Quo. - Pending final resolution of the dispute, the status of the affected area prior to the dispute shall be maintained and continued for all purposes.
ART. 19. Official Custodian. - The DILG shall be the official custodian of copies of all documents on boundary disputes of the LGUs.
Notably, unlike R.A. No. 6128 and B.P. 337, the LGC of 1991 grants an expanded role on the Sangguniang Panlalawigan concerned in resolving cases of municipal boundary disputes. Aside from having the function of bringing the contending parties together and intervening or assisting in the amicable settlement of the case, the Sangguniang Panlalawigan is now specifically vested with original jurisdiction to actually hear and decide the dispute in accordance with the procedures laid down in the law and its implementing rules and regulations. This situation, in effect, reverts to the old rule under the RAC, prior to its amendment by R.A. No. 6128, under which the provincial boards were empowered to investigate, hear the parties and eventually decide the case on the basis thereof. On the other hand, under the LGC of 1991, the trial court loses its power to try, at the first instance, cases of municipal boundary disputes. Only in the exercise of its appellate jurisdiction can the proper RTC decide the case, on appeal, should any party aggrieved by the decision of the Sangguniang Panlalawigan elevate the same.
It is readily apparent from the provisions of the 1987 Constitution and the LGC of 1991 that their new provisions and requirements regarding changes in the constitution of political units are intended to apply to all existing political subsidiaries immediately, i.e., including those with pending cases filed under the previous regime, since the overarching consideration of these new provisions is the need to empower the local government units without further delay.
Furthermore, the RTC can still review the decision of the Sanguniang Panlalawigan under the new set-up, in the exercise of its appellate jurisdiction, so no substantial prejudice is caused by allowing retroactivity.
The Court, therefore, sees no error, much less grave abuse of discretion, on the part of the CA in affirming the trial court's dismissal of petitioner's complaint.
1 Penned by Associate Justice Demetrio G. Demetria, with Associate Justices Ramon A. Barcelona and Mercedes Gozo-Dadole concurring.
2 Penned by Judge Jose B. Rosales.
7 G.R. NOS. 38204-5, September 24, 1991, 201 SCRA 632.
12 See Province of Camarines Norte v. Province of Quezon, G.R. No. 80796, November 8, 1989, 179 SCRA 233, 235.
14 Sec. 4 of R.A. No. 6128 provides that it shall take effect upon its approval. The Act, however, was published in the Official Gazette (66 O.G. 34, 7796-7798) on August 24, 1970.
15 AN ACT PRESCRIBING THE PROCEDURE FOR THE SETTLEMENT OF MUNICIPAL OR BARRIO BOUNDARY DISPUTES.
16 Sec. 234 of the Code stated that it shall take effect one month after its publication in the Official Gazette, which was on February 14, 1983 (79 O.G. 7).
17 Sec. 233 of B.P. Blg. 337.
19 Sec. 536 of the Local Government Code of 1991. See also Mathay v. Court of Appeals, G.R. No. 124374, December 15, 1999, 320 SCRA 703, 710; Angobung v. COMELEC, G.R. No. 126576, March 5, 1997, 269 SCRA 245, 255; Ty v. Trampe, G.R. No. 117577, December 1, 1995, 250 SCRA 500, 510; Garcia v. COMELEC, G.R. No. 111511, October 5, 1993, 227 SCRA 100, 110; and Evardone v. COMELEC, G.R. No. 94010, December 2, 1991, 204 SCRA 464, 470.
21 Administrative Order No. 270 issued on February 21, 1992.
22 Sec. 2, Rule 9 of the Rules of Court.
23 BPI v. ALS Management & Development Corp., G.R. No. 151821, April 14, 2004, 427 SCRA 564, 574; AFP Mutual Benefit Association, Inc. v. NLRC, G.R. No. 102199, January 28, 1997, 267 SCRA 47, 63; and Duero v. Court of Appeals, 424 Phil. 12, 24 (2002).
24 Francel Realty Corp. v. Sycip, G.R. No. 154684, September 8, 2005, 469 SCRA 424, 431.
25 Duero v. Court of Appeals, 424 Phil. 12, 24 (2002).
27 Philippine Long Distance Telephone Company v. Dulay, G.R. No. 53446, April 12, 1989, 172 SCRA 31, 41.
28 Atlas Fertilizer Corporation v. Navarro, No. L-72074, April 30, 1987, 149 SCRA 432, 436 citing Bengzon v. Inciong, 91 SCRA 248, 256.
29 Commissioner of Internal Revenue v. Marubeni Corporation, G.R. No. 137377, December 18, 2001, 372 SCRA 576, 587-588 and Camacho v. Court of Industrial Relations, 80 Phil. 848, 855 (1948).

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