CASE TITLE: MUNICIPALITY OF PILILLA, RIZALvs.HON. COURT OF APPEALS, HON. ARTURO A.
MARAVE, and PHILIPPINE PETROLEUM CORPORATION Date of Case: June 2! "##$ DOCTRINE: %etitioner: The Munici&alit' of %ililia! (i)al (es&ondents: %hili&&ine %etroleu* Cor&oration +on. Arturo Marave , %residing Judge of -ranch . of (TC Morong! (i)al /ACTS: 0n March ".! "##! the (TC -ranch 1 rendered 2udg*ent in a civil case in favor of %ililla and against %hil. %etroleu* Cor&. 3%%C4! ordering %%C to &a' the follo5ing: a4 % 6.7 *illion in ta8es due fro* %%C under Section #3A4 of Munici&al Ta8 0rdinance 9o. " of %ililla fro* "#.# , "#7! :4 % 7.7 *illion in storage &er*it fees under Section "1! %aragra&h ;3"743:<"<c4 of the sa*e *unici&al ta8 ordinance fro* "#.6 , "#=! c4 Ma'or>s &er*it fee due fro* the sa*e ta8 ordinance a*ounting to % "2!"21.11! d4 Sanitar' ins&ection fee a*ounting to % "!1"1.11! and e4 Costs of suit. 0n June 7! "##"! the SC affir*ed the 2udg*ent of the (TC! 5ith so*e *odification rearding :usiness ta8es accruing &rior to "#.= to not :e &aid :' %%C. The 2udg*ent :eca*e final and e8ecutor' on Jul' "7! "##"! 5ith the records re*anded to the (TC for e8ecution. 0n 0cto:er "$! "##"! in connection 5ith the e8ecution of the 2udg*ent of the SC! Att'. /eli8 Mendiola filed a *otion on :ehalf of %ililla 5ith the (TC -ranch . of Morong! (i)al for the e8a*ination of %%C>s gross sales for the 'ears "#.= , "#. and "#$ , "##" for the &ur&ose of co*&uting ta8es on :usinesses as i*&oses under the Local Ta8 Code. Mean5hile! on 0cto:er 2"! "##"! %%C filed a *anifestation that it had alread' &aid the su* of %"".$6 *illion to %ililla>s *a'or in full satisfaction of the 2udg*ent of the SC. As evidence! it &resented release and ?uitclai* docu*ents signed :' the *a'or. Accordingl'! the (TC denied Att'. Mendiola>s *otion. Att'. Mendiola filed an M( to the (TC! stating that total lia:ilit' of %%C actuall' a*ounted to %2$.2 *illion! 5hile the a*ount &aid to the Munici&alit' 5as less than half of that! and that the *a'or could not 5aive the :alance 5hich re&resents ta8es due under the 2udg*ent of the *unci&alit'. It *ust :e noted that the la5 fir* of Att'. Mendiola had registered t5o liens over the 2udg*ent of the *unici&alit' for alleged consultanc' services of 26@ and attorne'sA fees of 26@ 5hich! 5hen ?uantified and added! a*ount to *ore than %"2 *illion. The (TC -ranch .! ho5ever! denied the M(. Att'. Mendiola then filed a &etition for certiorari 5ith the SC! 5hich 5as re*anded to the CA for dis&osition. The %%C after5ards filed a *otion ?uestioning Att'. Mendiola>s authorit' to re&resent the Munici&alit'. The CA su:se?uentl' dis*issed the &etition of Att'. Mendiola for having :een filed :' a &rivate counsel in violation of la5 and 2uris&rudence! :ut 5ithout &re2udice to the filing of a si*ilar &etition :' the Munici&alit' of %ililla through the &ro&er &rovincial or *unici&al legal officer. A su:se?uent M( 5as si*ilarl' denied. Issue ": B09 Att'. Mendiola has an' authorit' to re&resent %ililla %ETITI09E(>S C09TE9TI09: Ces. Bhile Section "=7 of the (evised Ad*in Code &rovides that onl' the &rovincial fiscal and the *unici&al attorne' can re&resent a &rovinceD*unici&alit'! the &rovided e8ce&tion is :road enough to include situations 5herein the &rovincial fiscal refuses to handle the case. /urther*ore! %%C cannot raise for the first ti*e on a&&eal his lacE of authorit' to re&resent the *unici&alit'. (ES%09DE9T>S C09TE9TI09: 9o. As &rovided :' Section "=7 of the (AC! onl' the &rovincial fiscal and the *unici&al attorne' can re&resent a &rovince or *unici&alit' in their la5suits. /urther*ore! a line of cases have alread' sho5n that &rivate attorne's cannot re&resent a &rovince or *unici&alit' in la5suits. SF%(EME C0F(T: %etition of Att'. Mendiola is devoid of *erit. The CA is correct in holding that Att'. Mendiola has no authorit to file a &etition in :ehalf of and in the na*e of the Munici&alit' of %ililla. The *atter of re&resentation of a *unici&alit' :' a &rivate attorne' has :een settled in Ramos vs. Court of Appeals, et al.! and reiterated in Province of Cebu vs. Intermediate Appellate Court, et al.! 5here the SC ruled that &rivate attorne's cannot re&resent a &rovince or *unici&alit' in la5suits. Section "=7 of the (AC! co*&le*ented :' Section 7 of (A 22=$ 3Local Autono*' La54 &rovides that onl' the &rovincial fiscal and the *unici&al attorne' can re&resent a &rovince or *unici&alit' in their la5suits. The &rovision is *andator'. The *unici&alit'As authorit' to e*&lo' a &rivate la5'er is e8&ressl' li*ited onl' to situations 5here the &rovincial fiscal is dis?ualified to re&resent it. /or the afore*entioned e8ce&tion to a&&l'! the fact that the &rovincial fiscal 5as dis?ualified to handle the *unici&alit'As case *ust a&&ear on record. As a&&lied to the case at hand! there is nothing in the records to sho5 that the &rovincial fiscal 5as dis?ualified to act as counsel for %ililla on a&&eal! therefore the a&&earance of Att'. Mendiola 5as 5ithout authorit' of la5. The SC did not sustain Att'. Mendiola>s argu*ent that the e8ce&tion is :road enough to include situations 5herein the &rovincial fiscal refuses to handle the case. A fiscalAs refusal to re&resent the *unici&alit' is not a legal 2ustification for e*&lo'ing the services of &rivate counsel. A fiscal cannot refuse to &erfor* his functions on grounds not &rovided for :' la5 5ithout violating his oath of office. Instead of engaging the services of a s&ecial attorne'! the *unici&al council should re?uest the Secretar' of Justice to a&&oint an acting &rovincial fiscal in &lace of the &rovincial fiscal 5ho has declined to handle and &rosecute its case in court! &ursuant to Section "=.# of the (AC. Att'. Mendiola>s argu*ent that %%C cannot raise for the first ti*e on a&&eal his lacE of authorit' to re&resent the *unici&alit' 5as also held as untena:le. The legalit' of his re&resentation can :e ?uestioned at an' stage of the &roceedings! as &rovided in the afore*entioned 2uris&rudence. It should also :e noted that the lacE of authorit' of Att'. Mendiola 5as even raised :' the *unici&alit' itself. /urther*ore! even assu*ing that the re&resentation of the *unici&alit' :' Att'. Mendiola 5as dul' authori)ed! said authorit' is dee*ed to have :een revoEed :' the *unici&alit' 5hen %ililla! through the *a'or and 5ithout Att'. Mendiola>s &artici&ation! entered into a co*&ro*ise agree*ent 5ith herein &rivate res&ondent 5ith regard to the e8ecution of the 2udg*ent in its favor and thereafter filed &ersonall' 5ith the court t5o &leadings constitutive of a GSatisfaction of Judg*entG and a G(elease and Huitclai*G. A client! :' a&&earing &ersonall' and &resenting a *otion :' hi*self! is considered to have i*&liedl' dis*issed his la5'er. Counsel cannot &retend to :e authori)ed to continue re&resenting the *unici&alit' since the latter is entitled to dis&ense 5ith his services at an' ti*e. Fnder Section 2=! (ule "7 of the (ules of Court! a client *a' dis*iss his la5'er at an' ti*e or at an' stage of the &roceedings! and there is nothing to &revent a litigant fro* a&&earing :efore the court to conduct his o5n litigation. Dis&ositive %ortion: B+E(E/0(E! the &etition at :ar is DE9IED for lacE of *erit and the 2udg*ent of res&ondent Court of A&&eals is here:' A//I(MED.