The Roman Catholic Church sought an action against the municipalities of Cebu, Compostela, Liloan, Ginatilan, Toledo, and Daanbantayan for ownership and right of occupation of all its public highways and plazas.
This was made in the first years of the American occupation (the Americans arrived in Cebu on 1899). The Attorney General acting on behalf of the Governor General, as representatives of the sued municipalities agreed with the Roman Catholic Church that the case be dismissed.
The cases against the other municipalities including that of the municipality of Cebu (the subject was the Parian's convent) was dismissed. What was only left for the court to hear was the case against the municipality of Medellin.
The Roman Catholic Church claimed ownership of the following:
1. The church building known as the Church of Medellin and the church lot.
2. The chapels known as the Chapels of Cauit and Tindog.
3. The plaza of a church, known as the plaza of the Church of Paypay. The property was in the possession and under the administration of Gregorio Aglipay (soon to be the founder of the Philippine Independent Church, Buenaventura Valladolid, Dionisio Orbeso, Santiago Pari, Nicolas Ibanez, and the municipality of Medellin.
The case reached the Supreme Court and was decided on October 8, 1908. The High Tribunal said that the plaza of Medellin was part of the agreement that all plazas shall belong to the municipalities. However, as far as the church was concerned, the church is the owner of the churches in the municipality of Medellin. This was in consonance to the case of the Roman Catholic Church against the municipality of Placer which was decided on September 23, 1908.
To end all controversies and to clarify the issue of ownership of the subject properties, the Supreme Court handed the decision:
"It is further adjudged and decreed that the plaintiff, the Roman Catholic Apostolic Church, is the owner of, and is entitled to the possession of the following described property, situated in the municipality of Medellin, in the Province of Cebu, to wit-
(1) The church building known as the church of Medellin and the church-lot;
(2)The chapels known as the chapels of Cauit and Tindog, and their corresponding lots, situated in the barriors of Cauit and Tindog – and neither the municipality of Medellin (it became a municipality on December 1, 1901 with Victor Tumulak as its founder) nor the defendants Gregorio Aglipay, Dionisio Orbeso, Santiago Pari, or Nicolas Ibanez have a right, title or interest therein."
The Supreme Court further decided:
"It is further adjudged and decreed that the property last herein before mentioned and returned to the plaintiffs and that the said defendants, the municipality of Medellin, Aglipay, Orbesto, Pari, and Ibanez be ousted from the possession thereof and that such possession be awarded to the plaintiffs."
The defendants were represented by Rafael Palma, Perfecto Salas, Deogracias Reyes, Teodoro Gonzalez, Felipe Buencamino and Ramon Diokno, while the Roman Catholic Church was represented by the American lawyer, Thomas L. Hartigan who, was admitted to the Philippine Bar on March 18, 1901.
The decision of the case was written by Justice Willard.