Digest Author: Cecille Mangaser

Acebedo Optical Company, Inc. v. Court of Appeals

GR Number 100152
Petition: Petition for review
Petitioner: Acebedo Optical Company, Inc.
Respondent: The Honorable Court of Appeals, Hon. Mamindiara Mangotara (Presiding Judge of
RTC 12th Judicial Region, Br. 1, Iligan City), Samahang Optometrist Sa Pilipinas Iligan City
Chapter, Leo T. Cahanap (City Legal Officer), and Hon. Camilo Cabili (City Mayor of Iligan)
Ponente: Purisima, J.
Date: March 31, 2000
Facts:
The petitioner applied with the Office of the City Mayor of Iligan for a business permit. Because
of oppositions interposed by local optometrists, petitioner was issued a business permit subject to
conditions, basically making the them dependent upon prescriptions or limitations to be issued
by local optometrists. Petitioner was not allowed to practice optometry and only sell glasses only
within the city. They complied with the conditions and operated under the permit. Subsequently,
a complaint was filed against the petitioner alleging that they have violated the conditions set
forth in the permit and requesting the cancellation of the permit. Acting on the complaint,
respondent Mayor designated the City Legal Officer to conduct an investigation, which found the
petitioner guilty.
The Mayor sent the petitioner a notice of resolution and cancellation of business permit.
Petitioner brought a petition before the RTC alleging that they were denied due process and
equal protection of laws. It was denied for failure to exhaust administrative remedies. Petitioner
filed a petition for certiorari, prohibition, and mandamus before the CA but it was dismissed for
lack of merit. The subsequent motion for reconsideration was also denied. Hence, this petition.
Issue:
Whether or not the respondent city mayor acted beyond his authority in imposing the special
conditions in the permit.
Ruling:
Yes. The power to issue licenses and permits necessarily includes the corollary power to revoke,
withdraw, or cancel the same. The power to revoke or cancel, likewise includes the power to
restrict through the imposition of certain conditions. Distinction must be made between the
grant of a license or permit to do business and the issuance of a license to engage in the practice
of a particular profession. The first is granted by local authorities while the second is issued by
the Board or Commission tasked to regulate it. A business permit authorizes the person, natural,
or otherwise to engage in business or some form of commercial activity while a professional
license grants the authority to engage in the practice or exercise of a profession.
What is sought by the petitioner from the City Mayor is the permit to engage in the business of
running an optical shop. The issuance of a business permit is aimed at regulating the conduct of
business and the Mayor cannot, through the issuance of the business permit, regulate the practice
of a profession.

Digest Author: Cecille Mangaser

Thus, respondents submission that the imposition of subject special conditions on petitioners
business permit is not ultra vires cannot prevail over the finding and ruling by the Court of
Appeals from which they (respondents) did not appeal.
Dispositive:
The petition is granted. The decision of CA is reversed. The respondent City Mayor is ordered to
reissue the business permit in accordance with law.