GR L 3485; (June, 1950) (Digest)
G.R. No. L-3485; June 30, 1950
THE MUNICIPALITY OF PAOAY, ILOCOS NORTE, petitioner, vs. TEODORO MANAOIS and EULOGIO F. DE GUZMAN, Judge of the Court of First Instance of Pangasinan, respondents.
FACTS
Teodoro Manaois obtained a final judgment against the Municipality of Paoay for damages arising from the municipality’s failure to deliver leased fishery lots. To execute the judgment, the Provincial Sheriff levied upon (1) cash in the municipal treasury representing rental payments from a fishery lessee, and (2) about forty fishery lots leased by the municipality to private individuals. The municipality filed a petition to dissolve the attachment, arguing these properties were for public use and thus exempt from execution. The respondent judge denied the petition. Instead of appealing, the municipality filed this petition for certiorari.
ISSUE
Whether the levied properties—specifically, the fishery lots and the rental income in the municipal treasury—are subject to execution to satisfy a money judgment against the municipality.
RULING
The Supreme Court ruled partially in favor of the municipality.
1. The fishery lots (municipal waters) are not subject to execution. They are not patrimonial property of the municipality but are held in trust for public use under a statutory grant (Section 2321, Revised Administrative Code). Their usufruct is for public profit and cannot be levied upon. The attachment on the lots is void.
2. The rental income (P1,712.01) in the municipal treasury, derived from leasing patrimonial assets like fishery lots, is subject to execution. Such funds are not public revenues like taxes but are private or patrimonial in character, held in the municipality’s proprietary capacity. Other similar rental dues from lessees may also be garnished.
The Court emphasized that while properties for public use are exempt, municipalities are not immune from execution on their patrimonial assets. The order of the respondent judge was reversed regarding the attachment of the fishery lots but affirmed as to the levy on the rental funds.
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