CASE DIGEST: CITY GOVERNMENT OF TAGAYTAY VS GUERRERO

CITY GOVERNMENT OF TAGAYTAY

VS

GUERRERO

G.R. Nos. 140743 &140745, September 17, 2009

This is a petition for review on certiorari of the decision of the CA.

FACTS:

Tagaytay-Taal Tourist Development Corporation (TTTDC) is the registered owner of two parcels of land. It incurred real estate tax liabilities on the said properties for the tax years 1976 to 1983. For failure of TTTDC to settle its delinquent real estate tax obligations, the City Government of Tagaytay offered the properties for sale at a public auction. Being the only bidder, a certificate of sale was executed in favor of the City of Tagaytay and was correspondingly inscribed on the titles of the properties . The City of Tagaytay filed an unnumbered petition for entry of new certificates of title in its favor before the Regional Trial Court (RTC) of Cavite. RTC granted the petition. The TTTDC appealed to the CA. The subject properties were later purchased by Amuerfina Melencio-Herrera and Emiliana Melencio-Fernando (Melencios) for the amount equivalent to the taxes and penalties due to the same. Meanwhile, during the pendency of the case before the CA, TTTDC filed a petition for nullification of the public auction involving the disputed properties on the ground that the properties were not within the jurisdiction of the City of Tagaytay and thus, beyond its taxing authority. On the other hand, the City of Tagaytay averred that based on its Charter, said properties are within its territorial jurisdiction. The RTC denied this motion.

ISSUE:

WON the City of Tagaytay is liable for damages when it levied real estate taxes on the subject properties

HELD:

YES. It is basic that before the City of Tagaytay may levy a certain property for sale due to tax delinquency, the subject property should be under its jurisdiction. Nonetheless, the failure of the city officials in this case to verify if the property is within its jurisdiction before levying taxes on the same constitutes gross negligence. The negligence of its officers in the performance of their official functions gives rise to a an action ex contractu and quasi ex-delictu. Under the doctrine of respondeat superior, the City of Tagaytay is liable for all the necessary and natural consequences of the negligent acts of its city officials. It is liable for the tortious acts committed by its agents who sold the properties to the Melencios despite the clear mandate of RA No 1418, separating Barrio Birinayan from its jurisdiction and transferring the same to the Province of Batangas. Decision affirmed with modification.