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Ortigas & Co. v. CA, GR 126102, 4 December 2000
Whether or not the ordinance impaired the stipulated restrictions in the contract prior to its effectivity
YES. The court held that statutes in exercise of valid police power must be read into every contract. Noteworthy, in Sangalang vs. Intermediate Appellate Court,13 we already upheld MMC Ordinance No. 81-01 as a legitimate police power measure. chanrobles virtual law library
The trial courts reliance on the Co vs. IAC,14 is misplaced. In Co, the disputed area was agricultural and Ordinance No. 81-01 did not specifically provide that it shall have retroactive effect so as to discontinue all rights previously acquired over lands located within the zone which are neither residential nor light industrial in nature,[15 and stated with respect to agricultural areas covered that the zoning ordinance should be given prospective operation only.16 The area in this case involves not agricultural but urban residential land. Ordinance No. 81-01 retroactively affected the operation of the zoning ordinance in Greenhills by reclassifying certain locations therein as commercial. Moreover, statutes in exercise of valid police power must be read into every contract.
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