Balacuit V CFI

CARLOS BALACUIT, LAMBERTO TAN and SERGIO YU be reasonably necessary for the accomplishment of the
CARCEL, petitioners-appellants, purpose and not unduly oppressive upon individuals. The
vs. legislature may not, under the guise of protecting the public
COURT OF FIRST INSTANCE OF AGUSAN DEL NORTE AND interest, arbitrarily interfere with private business, or impose
BUTUAN CITY, Branch 11, and the CITY OF unusual and unnecessary restrictions upon lawful
BUTUAN, respondents-appellees. occupations.
G.R. No. L-38429 | June 30, 1988 We agree with petitioners that the ordinance is not justified
by any necessity for the public interest. The police power
En Banc | GANCAYCO, J.:
legislation must be firmly grounded on public interest and
Case Nature: Petition for review assailing the validity and welfare, and a reasonable relation must exist between
constitutionality of Ordinance No. 640 of Municipal Board of purposes and means. The evident purpose of the ordinance is
the City of Butuan. to help ease the burden of cost on the part of parents who
have to shell out the same amount of money for the
FACTS admission of their children, as they would for themselves, A
On April 21, 1969, the Municipal Board of the City of Butuan reduction in the price of admission would mean
passed Ordinance No. 640, which made it unlawful for any corresponding savings for the parents; however, the
person, group of persons, entity, or corporation engaged in petitioners are the ones made to bear the cost of these
the business of selling admission tickets to any movie or other savings. The ordinance does not only make the petitioners
public exhibitions, games, contests, or other performances to suffer the loss of earnings but it likewise penalizes them for
require children between seven (7) and twelve (12) years of failure to comply with it.
age to pay full payment for admission tickets intended for
adults. The same ordinance required said persons to charge A theater ticket has been described to be either a mere
only one-half of the value of the said tickets. license, revocable at the will of the proprietor of the theater
or it may be evidence of a contract whereby, for a valuable
Petitioners herein are managers of the Maya and Dalisay consideration, the purchaser has acquired the right to enter
Theaters, the Crown Theater, and the Diamond Theater, the theater and observe the performance on condition that
respectively. Aggrieved by the effect of the ordinance, they he behaves properly. Such ticket, therefore, represents a
filed a complaint before the CFI of Agusan del Norte and right, Positive or conditional, as the case may be, according to
Butuan City that the subject ordinance be declared the terms of the original contract of sale. This right is clearly a
unconstitutional and, therefore, void and unenforceable. right of property. The ticket which represents that right is
also, necessarily, a species of property. As such, the owner
Respondent court, however, declared the ordinance
thereof, in the absence of any condition to the contrary in the
constitutional and valid. Petitioners filed their motion for
contract by which he obtained it, has the clear right to
reconsideration of the decision of the court a quo which was
dispose of it, to sell it to whom he pleases and at such price
denied in a resolution. Hence, this petition.
as he can obtain.
ISSUE
While it is true that a business may be regulated, it is equally
WON an ordinance prohibiting the sale of admission tickets at
true that such regulation must be within the bounds of
full price for children aged 7-12 years is a valid exercise of
reason, that is, the regulatory ordinance must be reasonable,
police power?
and its provisions cannot be oppressive amounting to an
RULING arbitrary interference with the business or calling subject of
NO. The decision of the trial court is hereby REVERSED and regulation. A lawful business or calling may not, under the
SET ASIDE and a new judgment is hereby rendered declaring guise of regulation, be unreasonably interfered with even by
Ordinance No. 640 unconstitutional and, therefore, null and the exercise of police power. A police measure for the
void. regulation of the conduct, control and operation of a business
should not encroach upon the legitimate and lawful exercise
In this jurisdiction, it is already settled that the operation of by the citizens of their property rights. The right of the owner
theaters, cinematographs and other places of public to fix a price at which his property shall be sold or used is an
exhibition are subject to regulation by the municipal council inherent attribute of the property itself and, as such, within
in the exercise of delegated police power by the local the protection of the due process clause. Hence, the
government. proprietors of a theater have a right to manage their property
To invoke the exercise of police power, not only must it in their own way, to fix what prices of admission they think
appear that the interest of the public generally requires an most for their own advantage, and that any person who did
interference with private rights, but the means adopted must not approve could stay away.

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CARLOS BALACUIT, LAMBERTO TAN and SERGIO YU be reasonably necessary for the accomplishment of the

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