MFARMC COMMITTEE REPORT
Subject: Supreme Court First Division Decision Upholding Malabon RTC Ruling Declaring the
15-km Municipal Water Limit Unconstitutional: Implications for Claveria, Masbate
Date: February 26, 2025
I. Introduction
This report summarizes the landmark Supreme Court decision (First Division) in Mercidar Case,
which affirmed the Malabon Regional Trial Court’s (RTC) ruling that the 15-kilometer municipal
water jurisdiction limit under the Local Government Code (LGC) is unconstitutional. This report
provides a concise narration of the case, its timeline, and its implications for fisheries management
in Claveria, Masbate.
II. Background of the Mercidar Case
Parties Involved:
- Petitioner: Mercidar Fishing Corporation, and its authorized representative and director, Mr.
Rolando T. Lignon Jr.
- Respondent: Bureau of Fisheries and Aquatic Resources (BFAR), represented by its National
Director, Atty. Demosthenes R. Escoto and Department of Agriculture, represented by its
Undersecretary for Fisheries and Aquatic Resources, Drusila Esther E. Bayate.
Case Context:
The Mercidar Fishing Corp. case revolves around the company’s challenge to the 15-kilometer
municipal water limit, a provision in the Philippine Fisheries Code designed to protect small-scale
fisherfolk. Mercidar, a commercial fishing operation based in Navotas, argued this limit was
unconstitutional, seeking access to these traditionally protected fishing grounds.
III. Timeline of the Mercidar Case
DATE EVENT
October 25, 2023 Mercidar Fishing Corp., a Navotas-based commercial fishing firm,
filed a petition for declaratory relief before the Malabon Regional
Trial Court (RTC). This petition challenged the constitutionality of
certain provisions of the Fisheries Code, specifically those related
to the 15-kilometer municipal water limit. On the same day, the
Office of the Clerk of Court Regional Trial Court of Malabon City
summoned the respondents (DA-BFAR) and directed them to file
an answer within (30) days after the service thereof.
November 10, 2023 Respondent’s Counsel, the Office of the Solicitor General (OSG)
moved orally in open court that they be given for an additional (15)
days to file their answer which the court granted until November
25, 2023 only.
November 25, 2023 The Respondents moved once again in a written Motion for
Extension of Time to file an answer for additional (15) days
December 7, 2023 An omnibus order issued by the court finding the lacking of merit
the motion of Extension of Time, denied the same and granted
petitioner’s motion to declare the Respondents in default and allow
petitioner to present its evidence
December 11, 2023 The Malabon RTC ruled in favor of Mercidar Fishing Corp.,
declaring portions of the Fisheries Code unconstitutional. This
ruling invalidated:
Section 16 of the Fisheries Code, which grants municipal
governments the jurisdiction to regulate commercial fishing within
15 kilometers of their shorelines.
The outright ban on commercial fishing in waters shallower than
seven fathoms (12.8 meters).
January 4, 2024 Office of the Solicitor General (OSG) file a motion for
reconsideration
August 19, 2024 The Supreme Court First Division upheld the Malabon RTC ruling.
The Supreme Court cited procedural lapses, stating that the
pleadings filed by the Office of the Solicitor General (OSG) were
filed "out of time" and lacked "legal basis." This indicates that the
OSG motion was filed late.
Post August 19, 2024 ➢ Fisherfolk groups have held protests against the supreme
court rulings.
➢ Various local government units have also voiced opposition
to the supreme court ruling.
IV. Key Outcomes of the Supreme Court Decision
1. Invalidation of Portions of the Fisheries Code: The decision effectively invalidates portions
of the Fisheries Code (Republic Act 8550) that established the 15-kilometer municipal
water limit. This limit was designed to give preferential fishing rights to small-scale
fisherfolk. Specifically, the ruling impacts Section 16 of the Fisheries Code, which grants
municipal governments jurisdiction to regulate commercial fishing within those 15
kilometers.
2. Opening Municipal Waters to Commercial Fishing: As a result of these invalidations,
commercial fishing vessels may now be allowed to operate within municipal waters that
were previously reserved for small-scale fishers.
3. Procedural Lapses: A significant factor in the Supreme Court’s decision was the procedural
failure of the Office of the Solicitor General (OSG) to file timely and legally sound
pleadings. This played a crucial role in the upholding of the RTC’s decision.
V. Implications in the Municipality
• Increased Competition:
o The ruling opens municipal waters to commercial fishing vessels, leading to
increased competition for fishing grounds. This could severely impact the
livelihoods of our local small-scale fisherfolk in our Municipality, who rely on
these waters for their sustenance.
• Resource Depletion:
o Commercial fishing vessels often employ more advanced and efficient fishing
methods, which can lead to rapid depletion of fish stocks. This poses a significant
threat to the long-term sustainability of fisheries in our Municipality.
• Environmental Damage:
o Large-scale commercial fishing operations can cause damage to sensitive marine
ecosystems, such as coral reefs and seagrass beds. This can have cascading effects
on the overall health of our marine environment.
• Enforcement Challenges:
o The ruling creates challenges for our local authorities in enforcing fisheries
regulations. With the removal of the 15-kilometer limit, it may become more
difficult to monitor and control fishing activities within our municipal waters.
• Socio-Economic Impacts:
o The potential decline in fish stocks and increased competition could lead to
economic hardship to our fishing communities. This could result in increased
poverty, food insecurity, and social unrest.
• Changes to Local Governance:
o The ruling shifts the balance of power between national and local authorities in
fisheries management. Our Municipal government will need to adapt to this new
legal framework and work closely with national agencies to ensure effective
resource management.
Attachment/s:
Annex A: Malabon Regional Trial Court Decision on Special Civil
Aviation Case No. SCA23-003-MAL
Annex B: Supreme Court Resolution dated August 19, 2024 G.R. No.
270929
