G.R. No. 165955; August 10, 2007
FILINVEST LAND, INC., Petitioner, vs. FLOOD-AFFECTED HOMEOWNERS OF MERITVILLE ALLIANCE, Represented by GABRIEL DELIM and VICTOR RAQUIPISO, Respondents.

FACTS

Petitioner Filinvest Land, Inc. developed the Meritville Townhouse Subdivision in Las Piñas City. Respondents are homeowners who purchased units in the subdivision. Subsequent development of surrounding areas with higher elevations transformed Meritville into a catch basin, causing perennial and severe flooding that damaged the townhouses. Respondents demanded that Filinvest address the issue. Filinvest installed a pumping station and improved drainage, but flooding persisted, leading the National Home Mortgage Finance Corporation to declare the units unacceptable as loan collaterals.
Respondents filed a complaint with the HLURB, praying for the elevation of the area, repairs, or, alternatively, a transfer to flood-free projects or a sell-back of their units. The HLURB Arbiter found recurring flooding and inadequate mitigation measures, ruling in favor of the homeowners. This decision was affirmed with modifications by the HLURB Board of Commissioners and subsequently by the Office of the President. The Court of Appeals also affirmed these rulings, prompting Filinvest’s petition to the Supreme Court.

ISSUE

Whether Filinvest Land, Inc. is legally liable for the flooding in the Meritville subdivision and the resulting damages to the homeowners.

RULING

The Supreme Court REVERSED the Court of Appeals and ruled in favor of Filinvest. The Court held that the cause of the flooding was not the developer’s negligence in the subdivision’s construction but the subsequent development of the surrounding areas by other entities, which altered the natural water flow. More critically, the Court emphasized that flood control is a governmental function. Citing the Local Government Code, it identified the duty of flood control and drainage maintenance as a devolved basic service belonging to the local government unit—in this case, the City Government of Las Piñas. The legal obligation to address the flooding problem, therefore, rests with the city, not the private developer. Consequently, Filinvest could not be held liable for damages arising from a public infrastructure issue outside its control and responsibility. The petition was granted.