G.R. No. L-2929; February 28, 1950
THE CITY OF MANILA, plaintiff-appellant, vs. THE ARRELANO LAW COLLEGES, INC., defendant-appellee.

FACTS

The City of Manila filed an expropriation case against The Arellano Law Colleges, Inc., seeking to condemn several parcels of land with a combined area of 7,270 square meters on Legarda Street. The purpose was to subdivide and resell the land at cost to residents, pursuant to its authority under Section 1 of Republic Act No. 267. The lower court dismissed the action, ruling that the law only authorized cities to purchase, not expropriate, lands for such purpose.

ISSUE

Whether the City of Manila has the authority and valid justification to expropriate the subject property for the purpose of subdivision and resale to private residents as homesites.

RULING

No. The Supreme Court affirmed the dismissal. While Republic Act No. 267 authorizes cities to expropriate (not just purchase) lands for homesites, the exercise of this power is subject to constitutional limitations. The expropriation must be for public use. Here, the intended use was private, benefiting only a handful of occupants. The property was relatively small, located in a highly commercial area, and intended for a university site serving 9,000 students. No genuine public necessity was shown, as cheaper alternative lands were available. The public benefit from providing homes to a few families was outweighed by the public interest in maintaining an educational institution. The expropriation lacked the elements of public convenience, use, or necessity required for the valid exercise of eminent domain.

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