GR L 14526; (March, 1965) (Digest)
G.R. No. L-14526 March 31, 1965
ABOITIZ SHIPPING CORPORATION; CARLOS A. GO THONG & COMPANY; CEBU NAVIGATION COMPANY, INC.; CEBU-BOHOL FERRY CO., INC.; COROMINAS, RICHARDS NAVIGATION CO., INC.; HIJOS DE F. ESCAÑO, INC.; PACIFIC LINES, INC.; ROYAL LINES, INC.; SOUTHERN ISLAND SHIPPING CORPORATION; SWEET LINES SHIPPING; VISAYAN TRANSPORTATION CO., INC.; PHILIPPINE STEAM NAVIGATION CO.; COMPAÑIA MARITIMA; and GENERAL SHIPPING CO., INC., plaintiffs-appellants, vs. THE CITY OF CEBU; FELIPE PAREJA, as City Treasurer of Cebu; THE HON. SERGIO OSMEÑA, JR., as Mayor of the City of Cebu, defendants-appellees.
FACTS
The City of Cebu enacted Ordinance No. 207 on August 14, 1956, authorizing the collection of wharfage from shipping concerns whose vessels dock at public wharves and piers in the city. The plaintiffs, various shipping corporations, paid the wharfage charges under protest starting September 1, 1956. They filed an action in the Court of First Instance of Manila on May 8, 1957, seeking to declare the ordinance void, enjoin its enforcement concerning wharves owned by the National Government, and obtain a refund of all collected amounts. The lower court dismissed the complaint. The plaintiffs appealed, arguing that the City of Cebu lacked the authority under its charter ( Commonwealth Act No. 58 ) to impose such charges on wharves owned by the National Government, as the National Government already collected wharfage fees from them under Republic Act No. 1371 (later the Tariff and Customs Code).
ISSUE
Whether or not, under its charter ( Commonwealth Act No. 58 ), the City of Cebu may legally enact an ordinance to collect wharfage from vessels using public wharves and piers located within the city but owned by the National Government.
RULING
No. The Supreme Court reversed the lower court’s decision. The Court held that Ordinance No. 207 of the City of Cebu is null and void. The authority granted to the Municipal Board under Section 17(w) of the City Charter to fix charges for the use of “public wharves, docks, levees, or landing places” refers only to those constructed and owned by the City of Cebu, not to those owned by the National Government. The right to collect wharfage is based on ownership. Since the wharves in question are owned by the National Government and under the exclusive control and management of the Bureau of Customs (per Section 1142 of the Revised Administrative Code), the National Government retains the right to collect wharfage fees. Interpreting the charter as a whole, specifically in conjunction with the preceding subsection 17(v) (granting power over construction and maintenance of public landing places) and Section 30 (granting custody of public docks, etc., “when erected” to the City Engineer), it is evident that the term “public wharves” in subsection (w) pertains to city-owned properties. Allowing the city to collect wharfage on nationally owned wharves would unjustly burden shipowners with double payment. The Court ordered the defendants to refund all amounts collected under the ordinance and to refrain from further collection.