Sangguniang Panlungsod ng Baguio v.

Jadewell Parking Systems

G.R. No. 160025 | April 23, 2014 | Sereno, C. J. DISPOSITION
Petitioners: Sangguniang Panglungsod ng Baguio - Petition was denied.
Respondents: Jadewell Parking Systems
NOTES
FACTS - The Court held that there is not enough evidence on record to
- The parties executed a MOA whereby the City authorized Jadewell conclude that there was a substantial breach of the MOA to justify
to regulate and collect parking fees for on-street parking in the city, the unilateral cancellation of the MOA
as well as to implement the installation of modern parking meters
- The Sangguniang Panlungsod revoked the MOA through a
resolution alleging a substantial breach on the part of Jadewell
o Mayor Vergara vetoed the resolution but the veto was
overridden through an unnumbered resolution (constituting
the first act of rescission of the MOA by the Baguio officials)
- Jadewell denied the breach and commenced an action before the
RTC questioning the validity of the MOAs revocation and the
capacity to pass a resolution revoking said MOA
nd
- There was a 2 act of rescission that the city officials performed later
on

ISSUES
1. W/N the Sanggunian has the power to delegate or privatize the operation
of the parking in the city (di ko maintindihan yung issue nung case na
related dun sa local autonomy huhu) Yes

RULING & RATIO

- The terms of agreement between the City of Baguio and Jadewell
involved the delegation of governmental functions in terms of
regulating the designation and use of parking spaces as well as the
collection of fees for such use
o Any privatization contract pursuant to the said resolution
takes the essential character of a franchise because what
is being privatized is a government-monopolized function
- The power to privatize the administration is well within the powers of
the local government for the protection of environment and
maintenance of peace and order (Sections 458(a)(5)(v) and (vi) of
the LGC)
- The assailed act by the Sanggunian Panlungsod in rescinding the
MOA be it first or second act of rescission was clearly in the
exercise of its legislative or administrative functions and was not an
exercise of a judicial or quasi-judicial function.
- The objectives of the Sanggunian Panlungsod, as well as its
intention to rescind the MOA; because it deems to no longer serve
the interest of the City of Baguio, are clearly an exercise of its
legislative or administrative function.

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