G.R. No. L-16692; May 24, 1922
FORTUNATO LIANGKO, plaintiff-appellant, vs. THE MUNICIPALITY OF TABACO, ALBAY, THE MUNICIPAL COUNCIL OF TABACO, and THE PROVINCIAL BOARD OF ALBAY, defendants-appellants.

FACTS

The Municipal Council of Tabaco, Albay, approved Ordinance No. 1, fixing a marine fishing zone and granting exclusive fishing privileges therein for 4.5 years, to be awarded at public auction. The Provincial Board of Albay initially approved the ordinance. Plaintiff Fortunato Liangko was the highest bidder at the auction and was awarded the concession. He paid the fees and began operating. Later, the Provincial Board passed Resolution No. 584, entirely disapproving Ordinance No. 1 for being in excess of the municipal council’s powers. Consequently, the Municipal Council passed Resolution No. 138 annulling the ordinance and the concession. The municipality then publicly announced the annulment, causing fishermen to stop delivering the contracted share of their catch to Liangko. Liangko sued to enforce his concession and for damages. The trial court ruled in his favor, except for damages. Both parties appealed.

ISSUE

Whether the resolutions of the Provincial Board and the Municipal Council annulling the fishing concession granted to Liangko are valid.

RULING

Yes, the annulling resolutions are valid. Under Sections 2319 and 2320 of the Administrative Code, the lease of fisheries for a period longer than one year requires the approval of the provincial board. Furthermore, the decision of a municipal council awarding such a privilege is subject to final revisal by the provincial board. In this case, the provincial board, in the exercise of its revisory power, ultimately disapproved the ordinance and the lease. This action was in accordance with law. Therefore, the annulment of the concession was valid. The Court reversed the trial court’s judgment upholding the concession, dissolved the preliminary injunction, and affirmed the denial of damages to Liangko.