Ultra Vires Acts of Local Government Units (LGUs) – A Detailed Discussion

I. Introduction

In the context of Local Government Units (LGUs) in the Philippines, the doctrine of ultra vires acts pertains to actions taken by an LGU or its officials that exceed the scope of their authority. The Local Government Code of 1991 (Republic Act No. 7160) defines the general powers and limitations of LGUs. Acts beyond those expressly or impliedly granted by law are considered ultra vires, making them void or unenforceable.

This discussion will delve into the scope of LGU powers, the concept of ultra vires acts, the consequences of such acts, relevant jurisprudence, and exceptions or mitigating principles.

II. Powers of LGUs

Under the Local Government Code, LGUs are granted specific powers and responsibilities. These powers are classified into the following:

Express Powers: Those explicitly provided by law (R.A. No. 7160) and the Constitution.
Implied Powers: Powers necessary or incidental to the effective exercise of express powers.
Delegated Powers: Powers that are devolved by national legislation to LGUs, such as the powers relating to taxation, enactment of ordinances, and control over local resources.

The inherent powers of LGUs include:

Police Power: The ability to enact laws and ordinances that promote the welfare of the community.
Power of Eminent Domain: The right to expropriate private property for public use, subject to due process and payment of just compensation.
Power of Taxation: The authority to impose local taxes, fees, and charges.

However, these powers must be exercised within the confines of the law and must follow prescribed procedures. Actions outside these bounds are considered ultra vires.

III. The Doctrine of Ultra Vires

The term ultra vires is a Latin phrase meaning “beyond the powers.” In the legal context, it refers to acts or decisions made beyond the legal authority of the entity or official performing them. For LGUs, an ultra vires act is an action that exceeds their statutory authority or violates limitations set by the Local Government Code or other relevant laws.

Key Legal Basis: Section 22(c) of the Local Government Code specifically provides that an LGU shall have “such other powers as are necessary, appropriate, or incidental to efficient and effective governance and those which are essential to the promotion of the general welfare.”

However, actions falling outside these parameters are not allowed.

Types of Ultra Vires Acts:

Substantive Ultra Vires: Acts that LGUs do not have the authority to undertake at all. For example, passing an ordinance regulating a matter exclusively within national legislation.
Procedural Ultra Vires: Acts that LGUs might have the authority to perform but are rendered ultra vires because they were done without following the proper procedures (e.g., failure to follow the required steps in passing an ordinance).

IV. Consequences of Ultra Vires Acts

An ultra vires act by an LGU or its officials results in the following consequences:

Nullity of the Act: Ultra vires acts are void ab initio (from the beginning) and have no legal effect. This is a fundamental principle in administrative law.
Personal Liability of Officials: LGU officials who engage in ultra vires acts may be held personally liable, especially if the act was done with malice, bad faith, or gross negligence. The doctrine of qualified political immunity may not shield them if their actions are ultra vires.
Non-Ratifiability: Ultra vires acts cannot be ratified, even by the LGU itself, since the actions were beyond the scope of their legal authority to begin with.
Injunctions or Declaratory Relief: Affected parties can seek judicial remedies, such as injunctions or declaratory relief, to nullify ultra vires acts.

V. Examples of Ultra Vires Acts

Imposition of Unauthorized Taxes: An LGU imposes a tax that is not authorized by the Local Government Code, such as a tax on national government instrumentalities like the Bureau of Customs. This would be an ultra vires exercise of the LGU’s taxation power.
Ordinances Inconsistent with National Law: LGUs passing ordinances that are inconsistent with or violate national laws are acting ultra vires. For instance, if an LGU enacts a traffic regulation that contradicts the Land Transportation and Traffic Code, such ordinance will be struck down.
Unlawful Use of Eminent Domain: LGUs are given the power to expropriate property, but doing so without following proper procedures (such as the requirement to negotiate with the property owner before filing for expropriation) renders the act ultra vires.
Overstepping Jurisdiction: If an LGU passes an ordinance or takes action that pertains to matters outside its territorial jurisdiction, such act is ultra vires. For example, a municipality cannot enact ordinances regulating businesses located outside its geographic boundaries.

VI. Jurisprudence on Ultra Vires Acts

Several cases have defined the boundaries of ultra vires acts by LGUs:

Province of Cebu v. City of Cebu (G.R. No. 138043, 2001): The Supreme Court ruled that the city’s imposition of a franchise tax on the Province of Cebu’s water distribution system was ultra vires, as local governments cannot impose taxes on government instrumentalities.
Metropolitan Manila Development Authority (MMDA) v. Bel-Air Village Association (G.R. No. 135962, 2000): The Supreme Court held that the MMDA’s action of opening streets within a private subdivision without the necessary authority was an ultra vires act. While MMDA has certain supervisory powers, its actions must be within the parameters of the law.
Paje v. Casino (G.R. No. 207257, 2014): The Supreme Court invalidated a municipal ordinance that sought to regulate the issuance of mining permits, ruling that the authority to regulate mining operations was vested exclusively in the national government under the Mining Act of 1995.

VII. Exceptions and Mitigating Principles

While ultra vires acts are generally void, there are instances where courts may not strictly apply the doctrine:

De Facto Officer Doctrine: This doctrine protects the public and third parties who rely on the actions of an officer or official who is later found to have acted without authority. It allows for the validity of certain acts taken in good faith by a de facto officer, despite the lack of authority.
Public Welfare Consideration: In some instances, courts may uphold acts that are ultra vires in nature if they were done for the benefit of the general welfare, provided there was no evident bad faith or malice.

VIII. Conclusion

The doctrine of ultra vires serves as a necessary limitation on the powers of Local Government Units (LGUs) in the Philippines. While LGUs are given broad powers under the Local Government Code to govern and promote the general welfare, such powers are not without boundaries. Any act outside these boundaries—whether by overstepping the authority granted or failing to follow the proper procedures—is considered ultra vires, rendering the act void.

LGU officials must be mindful of the scope of their powers and ensure that their actions are in accordance with the law. Ultra vires acts can lead to the nullity of government actions, as well as personal liability for the officials involved, making it crucial for local governance to remain within the limits prescribed by law and jurisprudence.