What is private ownership of property?

Private ownership of property can be exercised by the State in its private capacity or by private persons.

While the judicial opinions on this subject are more or less uncertain in expression, and court judgment apparently conflicting, perhaps it is correct to affirm that a majority of decision recognize the private rights of the municipal corporation, and hence support the view that all its property of a distinctly private character is fully protected by the constitutional provisions protecting private property of the individual or the private corporation. Accordingly the right of state as to the private property of municipal corporation is a right of regulation to be exercised in harmony with the general policy of the state, and though broader than exists in the case of individuals, or private corporations, is not a right of appropriation. (G.R. No. L-12032; August 31, 1959)

The decision maintain that the property held by a municipal corporation units private capacity is not subject to the unrestricted control of the legislature, and the municipality cannot be deprived of such property against its will, except by the exercise of eminent domain with payment of full compensation. (McQuillin Municipal Corporation, 2nd Ed., Vol. I, pp. 670-681).In its private capacity a municipal corporation is wholly different. The people of a compact community usually require certain conveniences which cannot be furnished without a franchise from the State and which are either unnecessary in the rural districts, such as a system of sewers, or parks and open spaces, or which on account of the expenses it would be financially impossible to supply except where the population is reasonably dense, such as water or gas. But in so far as the municipality is thus authorized to exercise the functions of a private corporation, it is clothed with the capacities of a private corporation and may claim its rights and immunities, even as against the sovereign, and is subject to the liabilities of such a corporation, even as against third parties. (19 R.C. L. p. 698) (G.R. No. L-12032; August 31, 1959)