(9) Cebu Oxygen & Acetylene Co., Inc. vs.

Bercilles
G.R. No. L-40474
Aug. 29, 1975

Facts:
The terminal portion of M. Borces Street, Mabolo, Cebu was declared as an abandoned by virtue of Resolution No. 2193 of the City Council of
Cebu. Another Resolution was decreed which authorized Acting City Mayor to sell the land through public Auction. The lot was awarded to
petitioner being the highest bidder and subsequently, a deed of absolute sale was executed in favor to the petitioner. Petitioner filed an
application with the CFI Cebu to have its land registered.

The Assistant Provincial Fiscal of Cebu filed a motion to dismiss on the ground that the property is considered part of the public domain and
therefore outside the commerce of man. The trial court issued an order dismissing the petitioners application for registration.

Issue:
Does the declaration of the road, as abandoned, make it the patrimonial property of the City of Cebu which may be the object of a common
contract?

Held:

Yes. Since that portion of the city street subject of petitioner's application for registration of title was withdrawn from public use, it follows that
such withdrawn portion becomes patrimonial property which can be the object of an ordinary contract.

Article 422 of the Civil Code expressly provides that "Property of public dominion, when no longer intended for public use or for public service, shall
form part of the patrimonial property of the State."

Besides, the Revised Charter of the City of Cebu heretofore quoted, in very clear and unequivocal terms, states that: "Property thus withdrawn
from public servitude may be used or conveyed for any purpose for which other real property belonging to the City may be lawfully used or
conveyed."


(26) Heirs of Moreno vs. Mactan-Cebu International Airport Authority
G.R. No. 156273
Oct. 15, 2003

Facts:
In 1949, MCIAA wanted to acquire Lots Nos. 916 and 920 for the proposed expansion of Lahug Airport. In order to entice the landowners, the
government assured them that that they can repurchase their lands once Lahug Airport was closed or its operation is transferred to Mactan
Airport. Some landowners executed the deed of sale with right to repurchase while others refused including petitioner herein because the
offer of payment is way below the market price.

The Civil Aeronautics Administration filed an expropriation proceedings before the CFI Cebu when the negotiations failed between MCIAA and
the landowners who refused to sell their land.

The trial court granted the expropriation of the lots for public use upon payment of just compensation and thereafter the certificate of titles
were issued in the name of Republic of the Philippines which subsequently transferred to MCIAA.

At the end of 1991, Lahug Airport ceased operation as Mactan Airport was opened hence the expropriated land were not utilized. Petitioners
wrote a letter to Pres. Ramos and the airport manager begging them to exercise their right to repurchase, however, their pleas remained
unheeded.

On Mar. 11, 1997, petitioners filed a complaint for reconveyance and damages before the RTC Cebu against MCIAA. The RTC granted them to
exercise the right to repurchase at the amount pegged as just compensation. On appeal, the CA reversed the decision on the ground that the
expropriation was so that the rights gained therefrom by respondent MCIAA were indicative of ownership in fee simple.
Issue:
Whether petitioners can exercise their right of repurchase.

Held:

Yes. If x x x land is expropriated for a particular purpose, with the condition that when that purpose is ended or abandoned the property shall
return to its former owner, then, of course, when the purpose is terminated or abandoned the former owner reacquires the property so
expropriated. If x x x land is expropriated for a public street and the expropriation is granted upon condition that the city can only use it for a public
street, then, of course, when the city abandons its use as a public street, it returns to the former owner, unless there is some statutory provision to
the contrary x x x x If, upon the contrary, however, the decree of expropriation gives to the entity a fee simple title, then, of course, the land
becomes the absolute property of the expropriator, whether it be the State, a province, or municipality, and in that case the non-user does not
have the effect of defeating the title acquired by the expropriation proceedings x x x x When land has been acquired for public use in fee simple,
unconditionally, either by the exercise of eminent domain or by purchase, the former owner retains no rights in the land, and the public use may
be abandoned, or the land may be devoted to a different use, without any impairment of the estate or title acquired, or any reversion to the
former owner x x x x

While the trial court in Civil Case No. R-1881 could have simply acknowledged the presence of public purpose for the exercise of eminent domain
regardless of the survival of Lahug Airport, the trial court in its Decision chose not to do so but instead prefixed its finding of public purpose upon
its understanding that "Lahug Airport will continue to be in operation." Verily, these meaningful statements in the body of the Decision warrant the
conclusion that the expropriated properties would remain to be so until it was confirmed that Lahug Airport was no longer "in operation." This
inference further implies two (2) things: (a) after the Lahug Airport ceased its undertaking as such and the expropriated lots were not being used
for any airport expansion project, the rights vis--vis the expropriated Lots Nos. 916 and 920 as between the State and their former owners,
petitioners herein, must be equitably adjusted; and, (b) the foregoing unmistakable declarations in the body of the Decision should merge with and
become an intrinsic part of the fallo thereof which under the premises is clearly inadequate since the dispositive portion is not in accord with the
findings as contained in the body thereof.

The predicament of petitioners involves a constructive trust, one that is akin37 to the implied trust referred to in Art. 1454 of the Civil Code, "If an
absolute conveyance of property is made in order to secure the performance of an obligation of the grantor toward the grantee, a trust by virtue of
law is established. If the fulfillment of the obligation is offered by the grantor when it becomes due, he may demand the reconveyance of the
property to him." In the case at bar, petitioners conveyed Lots Nos. 916 and 920 to the government with the latter obliging itself to use the realties
for the expansion of Lahug Airport; failing to keep its bargain, the government can be compelled by petitioners to reconvey the parcels of land to
them, otherwise, petitioners would be denied the use of their properties upon a state of affairs that was not conceived nor contemplated when the
expropriation was authorized.