[12] Rimando v. Naguilian Emission Testing Center G.R. L-3087-88 Concepcion, J.

Topic: Mandamus

Naguilian Emissions was running a business on land owned by the government. It sought to renew its business license in 2008.
However, the mayor of Naguilian town refused to issue the license without the execution of a contract of lease between the business
and the municipality. They could not agree on the terms hence a petition for mandamus was filed against the mayor by the business.
This was granted by the lower court, whose decision was then overturned by the CA, which found that a tax declaration is not sufficient
proof of ownership of the property by the municipality.
DOCTRINE
A mayor cannot be compelled by mandamus to issue a business permit since the exercise of the same is a delegated police power,
hence discretionary in nature.

FACTS
1. Naguilian Emission Testing Center, Inc. was operating an emission testing center in Naguilian, La Union (surprise!) on land owned
by the government, but was subsequently declared alienable and disposable by the DENR.
2. From 2005 to 2007, the business operated without any problem. In 2008, the business applied for a renewal of its business
license and paid the fees therefor.
3. Abraham Rimando, mayor of Naguilian, La Union, refused to issue the license until the business executes a contract of
lease with the Municipality of Naguilian.
4. The business was amenable to this condition, subject to some proposed revisions. (What these revisions were was not mentioned
in the case.) However, these revisions were not acceptable to the Mayor.
5. A petition for mandamus was filed by the business with the RTC against the Mayor.
6. The RTC denied the petition, based on the following findings:
a. That the Municipality of Naguilian was the declared owner of the subject property as evidenced by the tax declaration
over the property;
b. Under Sec. 6A.01 of the Revenue Code, the municipality has the right to require petitioner to sign a contract of lease; and
c. A mayor’s duty to issue business permits is discretionary in nature.
7. The Court of Appeals, while declaring the issue moot and academic since the period for which the business permit was sought
(year 2008) had already lapsed, and Mayor Rimando’s term had already ended. Nonetheless, it proceeded to rule on the merits
and found that the issuance of a write of mandamus was justified. It reversed and set aside the ruling of the RTC.
a. The CA held that the tax declaration was insufficient basis to require the execution of a contract of lease as a
sine qua non condition for the issuance of a business permit.
b. Also, the resolution of the Sangguniang Panlalawigan (2007-81), upon which the mayor anchored his imposition
of rental fees, was void for its failure to comply with the requirements of the Local Government Code. (the case
fails to mention which requirements)
c. The mayor, however, may not be held liable for damages as his refusal was done in the performance of official
duties.

ISSUE with HOLDING

1. W/N a writ of mandamus to compel Mayor Rimando to issue a business license to Naguilian Emission Testing Center
should have been issued by the court.
a. No. A mayor cannot be compelled by mandamus to issue a business permit since the exercise of the same is a
delegated police power, hence discretionary in nature.
i. This was the pronouncement of the Court in Roble Arrastre, Inc. v. Hon. Villaflor, where a determination was
made on the nature of the power of a mayor to grant business permits under the Local Government Code.
ii. The Court in that case held that such power to grant permits is a manifestation of delegated police power.
Necessarily, the exercise thereof cannot be deemed ministerial.
iii. The proper remedy is a writ of certiorari, not mandamus.
iv. The grant of such power under the Local Government Code is found in Sec. 444. Such section states that the
municipal mayor’s power to issue licenses is pursuant to Sec. 16 of the same law. Section 16 of the LGC
is the general welfare clause, which encapsulates the delegated police power to local governments. This is
exercised through their respective legislative bodies.

DISPOSITIVE PORTION
Wherefore, premises considered, the Decision of the Court of Appeals is hereby SET ASIDE. The Decision of the Regional Trial Court
of Bauang, La Union is REINSTATED.