G.R. No. 230651. September 18, 2018 (Case Brief / Digest)

### Title:
Alliance of Quezon City Homeowners’ Association, Inc. v. The Quezon City Government

### Facts:
In 2010, a directive from the Department of Interior and Local Government and the Department of Finance mandated local government units to update their real property assessments every three years. Subsequently, the Quezon City (QC) Assessor prepared a revised schedule of Fair Market Values (FMVs) and submitted it for approval, leading to the enactment of QC Ordinance No. SP-2556, Series of 2016. This ordinance significantly increased the FMVs of properties in QC. Alliance of Quezon City Homeowners’ Association, Inc. (Alliance), claiming to represent QC residents, filed a petition challenging the ordinance’s constitutionality, arguing it violated substantive due process by being unjust, excessive, and confiscatory. Alliance also contended that the process lacked real public consultation and that the new ordinance was implemented too quickly for residents to adjust. A Temporary Restraining Order (TRO) against the ordinance’s implementation was issued by the Supreme Court on April 18, 2017.

### Issues:
1. The procedural issues: adherence to doctrines of exhaustion of administrative remedies, hierarchy of courts, and Alliance’s legal capacity to sue.
2. The substantive issue: the validity and constitutionality of QC Ordinance No. SP-2556, Series of 2016.

### Court’s Decision:
**Procedural Aspect:**
– The Supreme Court exempted the case from the rules of exhaustion of administrative remedies and hierarchy of courts due to public interest, but ultimately dismissed the petition due to Alliance’s lack of legal capacity to sue.

**Substantive Aspect:**
– Without delving much into the ordinance’s validity and constitutionality due to procedural dismissal, the Court noted the importance and potential impact of such ordinances on residents. However, it emphasized the need for a proper party to file a case for these issues to be adequately addressed.

### Doctrine:
– The doctrine laid out emphasizes on procedural requirements for a petition, particularly focusing on the necessity for a petitioner to have legal capacity to sue. It also reiterated exceptions to the doctrines of exhaustion of administrative remedies and hierarchy of courts in situations of transcendental importance or when strong public interest is involved.

### Class Notes:
– In cases challenging the legality of governmental ordinances, the petitioner must demonstrate legal capacity to sue, showing that it is either a natural or juridical person or an entity authorized by law.
– Exceptions to the doctrines of exhaustion of administrative remedies and hierarchy of courts include matters of transcendental importance or cases involving strong public interest.
– Considerations of public interest and the potential widespread impact of governmental ordinances can lead to the relaxing of procedural doctrines.

### Historical Background:
This case reflects ongoing tensions between local government units’ power to levy taxes and property owners’ rights. It underscores the complexity of updating property values for taxation purposes, balancing the need for local government revenue with residents’ ability to pay. The case occurred amid efforts to modernize and increase tax revenue from real property, highlighting challenges in implementing such policies, including the need for adequate public consultation and adherence to legal and procedural standards.


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