Regulation of Public Market

Under R.A. 7160, Section 17 provides that “local government units shall likewise
exercise such other powers and discharge such other functions and responsibilities as are
necessary, appropriate, or incidental to efficient and effective provisions of the basic
services and facilities” which includes for a barangay, satellite, or public markets.

Moreover, under Section 391 (7), the Sangguniang Barangay possesses the power
to regulate barangay markets. Furthermore, the Sangguniang Bayan and Sangguniang
Panlungsod are vested with power to approve ordinances which shall establish markets
and authorize the operation thereof by the municipal or city government and regulate the
construction of private markets, talipapas, and other similar buildings and structures.

In consonance with the above mentioned powers, the Local Government Code
Section 447 (5)(iv) and Section 458(5)(iv) also sanctions both the Sangguniang Bayan
and Sangguniang Panglungsod to regulate the preparation and sale of meat, poultry, fish,
vegetables, fruits, fresh dairy products and other food stuffs for public consumption.

Under P.D. 856 Section 34, it provided for the prescribed standards for the
construction of markets and guidelines to be followed.

Section 34. Prescribed Standards of Construction the construction of markets and

abattoirs shall conform to standards prescribed by the Department. These standards shall
be set along the following guidelines:

“1. Suitability of site insofar as elimination of nuisance condition and prevention of contamination
are concerned;
2. Availability of ample water supply for cleaning;
3. Accessibility of adequate drainage facilities;
4. Durability of construction to protect vendors and customers from any hazard and exposure to
the elements; and
5. Facilities for sanitation maintenance, such as cleaning and elimination of harborages of
vermin.”

Under Sec. 35, it provided for the responsibilities of the Local Health Authority
on markets and abattoirs

“(a) On Markets
1. Make periodic inspections to ascertain the maintenance of adequate sanitary conditions
of markets and their premises;
2. Supervise and control the proper care and use of market stalls;
3. Prohibit the construction of living quarters within any market and its premises;
4. Enforce the ban on construction of partitions, sheds or booths within the market area.
(b) On Abattoirs
1. Supervise the maintenance of adequate sanitation in abattoirs and their premises;
2. Enforce the requirements on the examination of meat as provided in existing laws;
3. Permit the slaughter of animals for public consumption in other designated areas in
certain exigencies, provided public health is adequately protected;
4. Supervise the sanitary disposal of all abattoir wastes; and
5. Ensure that only healthy animals shall be slaughtered, and that the method of
slaughtering, the techniques of dressing and the storing, handling and transporting
procedures are in accordance with prescribed standards.”

Section 36 of the same Code provided for the responsibility of the Local
Governments and private operators: “Local governments and private operators in charge
of public or private markets and abattoirs shall employ an adequate number of personnel
to ensure their efficient operation and hygienic maintenance. These employees shall be
under the direct supervision of the local health authority”.

The Supreme Court has held in the case of Cruz v. Court of Appeals the
establishment and maintenance of public market is an exercise of legislative power; the
Mayor (of Manila) by himself cannot provide for the opening, and operations or closure
of public market, joint action of the Board and the Mayor is necessary (G.R. No. L-44178.
August 21, 1987).

In Co Chiong v. Mayor of Manila, the establishment, maintenance and operation

of public markets are governmental in nature, being among the public functions of the
state and, therefore, the opportunity of occupying stalls in public markets is a privilege
that can be granted or withdrawn without impairing any one of the guarantees embodied
in the Bill of Rights of the Constitution (G.R. No. L-1891. March 31, 1949).

What is a Public Market?

A market is a "public market" when it is dedicated to the service of the general

public and is operated under government control and supervision as a public utility,
whether it be owned by the government or any instrumentality thereof or by any private
individual. It is a settled doctrine that a "public market may be the object of individual
ownership or lease, subject to municipal supervision and control." (43 C.J. 394). Thus, if
a market has been permitted to operate under government license for service to the
general public, it is a "public market" whether the building that houses it or the land upon
which it is built is of private or public ownership (Vda. de Salgado v. De la Fuente, 87
Phil. 343 as cited in Cruz v. Court of Appeals G.R. No. L-44178. August 21, 1987 ).

Rescission of Contract to Operate Public Market

Under the New Civil Code,

Art. 1380. Contracts validly agreed upon may be rescinded in the cases
established by law. (1290)

Art. 1381. The following contracts are rescissible:

(1) Those which are entered into by guardians whenever the wards whom they
represent suffer lesion by more than one-fourth of the value of the things which
are the object thereof;

(2) Those agreed upon in representation of absentees, if the latter suffer the lesion
stated in the preceding number;

(3) Those undertaken in fraud of creditors when the latter cannot in any other
manner collect the claims due them;

(4) Those which refer to things under litigation if they have been entered into by
the defendant without the knowledge and approval of the litigants or of competent
judicial authority;

(5) All other contracts specially declared by law to be subject to rescission.

(1291a)