GR L 1440; (March, 1949) (Digest)
G.R. No. L-1440; March 31, 1949
CO CHIONG, ET AL., petitioners-appellees, vs. MIGUEL CUADERNO, SR., ET AL., respondents. MIGUEL CUADERNO, SR., appellant; RAMONA CLEMENTE, ET AL., intervenors-appellees.
FACTS
Petitioners, Chinese alien market stallholders in Manila, filed a petition for prohibition to restrain the enforcement of Republic Act No. 37 and Department of Finance Order No. 32. The Act granted preference to Filipino citizens in the lease of public market stalls. The implementing Order declared all public market stalls vacated as of January 1, 1947, and established a procedure for re-leasing them, giving priority to Filipino applicants and allowing aliens to lease only in the absence of Filipino applicants. Petitioners, who had occupied their stalls for many years and depended on them for livelihood, argued the law and order were unconstitutional for violating due process and equal protection. The lower court upheld the constitutionality of the Act but declared the Order invalid. The Secretary of Finance appealed.
ISSUE
Whether Republic Act No. 37, which grants preference to Filipino citizens in the lease of public market stalls, is constitutional.
RULING
Yes, Republic Act No. 37 is constitutional. The Supreme Court reversed the lower court’s decision and dismissed the petition. The Court held that the operation of public markets is a public utility or public service. Under Section 8, Article XIII of the 1935 Constitution, the operation of public utilities is reserved exclusively to Filipino citizens or to corporations at least 60% owned by Filipinos. This specific constitutional provision prevails over the general guarantees of due process and equal protection invoked by the petitioners. The privilege of participating in public functions, such as occupying public market stalls, is not a fundamental right but is reserved to citizens as an exercise of national sovereignty. The law is a valid exercise of police power to ensure effective official control over foodstuffs affecting public health and welfare.
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