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    San Francisco Inn v. San Pablo City Water District

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    V Cruz
    The petitioner, San Francisco Inn, operates a hotel in San Pablo City and constructed two deep wells to supply water for its business. The respondent, San Pablo City Water District, is the local water utility organized under law to regulate water resources. SPCWD promulgated rules governing groundwater pumping that were approved by the national regulatory agency. SPCWD sought to impose production assessment fees on SFI for its wells, but the Supreme Court ruled that SPCWD could not legally do so without first passing the requisite board resolution authorizing such fees, as the obligation to pay fees arises from contract under the applicable laws and rules.

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    San Francisco Inn v. San Pablo City Water District

    Uploaded by

    V Cruz
    178 views2 pages
    The petitioner, San Francisco Inn, operates a hotel in San Pablo City and constructed two deep wells to supply water for its business. The respondent, San Pablo City Water District, is the local water utility organized under law to regulate water resources. SPCWD promulgated rules governing groundwater pumping that were approved by the national regulatory agency. SPCWD sought to impose production assessment fees on SFI for its wells, but the Supreme Court ruled that SPCWD could not legally do so without first passing the requisite board resolution authorizing such fees, as the obligation to pay fees arises from contract under the applicable laws and rules.

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    6. San Francisco Inn v. San Pablo City Water District

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    The petitioner, San Francisco Inn, operates a hotel in San Pablo City and constructed two deep wells to supply water for its business. The respondent, San Pablo City Water District, is the local water utility organized under law to regulate water resources. SPCWD promulgated rules governing groundwater pumping that were approved by the national regulatory agency. SPCWD sought to impose production assessment fees on SFI for its wells, but the Supreme Court ruled that SPCWD could not legally do so without first passing the requisite board resolution authorizing such fees, as the obligation to pay fees arises from contract under the applicable laws and rules.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    178 views2 pages

    San Francisco Inn v. San Pablo City Water District

    Uploaded by

    V Cruz
    The petitioner, San Francisco Inn, operates a hotel in San Pablo City and constructed two deep wells to supply water for its business. The respondent, San Pablo City Water District, is the local water utility organized under law to regulate water resources. SPCWD promulgated rules governing groundwater pumping that were approved by the national regulatory agency. SPCWD sought to impose production assessment fees on SFI for its wells, but the Supreme Court ruled that SPCWD could not legally do so without first passing the requisite board resolution authorizing such fees, as the obligation to pay fees arises from contract under the applicable laws and rules.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    San Francisco Inn v.

    San Pablo City Water District,


    G.R. No. 204639,
    February 15, 2017;

    FACTS:

    The petitioner [SFI] is a hotel business establishment situated at Brgy. San Francisco
    Calihan, San Pablo City. In 1996, petitioner caused the construction of two (2) deep-well pumps
    for the use of its business. The pumps, which have a production capacity of four (4) liters per
    second each, bear the following specification[s]: size of casing [-] 2.0"; size of column pipe-1.5";
    pump setting- 60 feet; and motor HP rating-1.5 HP.

    The respondent [SPCWD] is a local water utility organized under Resolution No. 309, approved
    by the Municipal Board of the City of San Pablo, on December 17, 1973, absorbing the former
    San Pablo Waterworks System and its facilities. Its operation is under the National Water
    Resources Board, formerly Council (NWRB), which is the national agency vested with authority
    to control and regulate the utilization, exploitation, development, conservation and operation of
    water resources pursuant to Presidential Decree No. 1067, otherwise known as the "Water Code
    of the Philippines" (Water Code) and Presidential Decree No. 198, the "Local Water Utilities
    Administration Law". The respondent [SPCWD] is managed by a Board of Directors.

    In 1977, the respondent [SPCWD] promulgated the Rules Governing Groundwater Pumping and
    Spring Development Within the Territorial Jurisdiction of the San Pablo City Water District.
    These rules were approved by the NWRB in its 88th meeting held on January 23, 1978. The
    provisions of the Rules relevant to this case are [Sections 107, 118 and 129]

    ISSUE:

    WON SPCWD can legally impose any production assessment fees upon SFI.

    RULING:

    NO, SPCWD cannot legally impose any production assessment fees upon SFI

    It was held by the SC, “A MOA or contract between the water district entity and the deep
    well operator/user is not required under the law and the Rules, but, when a MOA is voluntarily
    agreed upon and executed, the parties are, legally bound to comply with their respective
    prestation

    Here, the obligation to pay production assessment fees on the part of the deep well
    operator/user and the right of the water district entity to collect the fees arise from contract,
    unlike a MOA, which creates contractual obligations, faithful compliance with the requirements
    of Section 39 of PD 198 and Section 11 of the Rules creates binding obligations arising from
    law.
    Thus, in the absence of the requisite board resolution, SPCWD cannot legally impose any
    production assessment fees upon SFI.

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