Acebedo v. CA

Facts:

Acebedo Opticalappliedfor a business permit tooperatein Iligan City. After hearing the sides of local optometrists, Mayor Cabili of Iligan granted the permit but he attached various special conditions whichbasicallymade Acebedo’s dependent upon prescriptions to be issued by local optometrists. Acebedo
is not allowed to practice optometry within the city. Acebedo however acquiesced to the said conditions andoperatedunder the permit. Later, Acebedo was charged for violating the said conditions and was subsequently suspended fromoperatingwithin Iligan. Acebedo then assailed the validity of the attached conditions. The local optometrists argued that Acebedo is estopped in assailing the said conditions because it acquiesced to the same and that the imposition of the special conditions is a valid exercise of police power; that such conditions wereenteredupon by the city in its proprietary function hence the permit is actually a contract.

ISSUE:Whether or not the special conditions attached by the mayor is a valid exercise of police power.

HELD:NO. Acebedo wasapplyingfor a business permit to operate its business and not to practice optometry (the latter being within the jurisdiction PRC Board of Optometry). The conditions attached by the mayor is ultra vires hence cannot be given any legalapplicationtherefore estoppel does not apply. It is neither a valid exercise of police power. Though the mayor can definitely impose conditions in the granting of permits, he must base such conditions on law or ordinances otherwise the conditions are ultra vires. Lastly, the granting of the license is not a contract, it is a special privilege – estoppels does not apply.