Question

Subject: Effect and Application of Laws

Topic: Retroactivity of Laws, Vested Rights Principle

Anne owns a piece of property in Metro City. She acquired the property in 2010 and has been using it as a residential dwelling ever since. In 2020, a new law was enacted which states that all properties in Metro City shall be converted into commercial establishments. The law also provides for financial penalties for non-compliance.

Given the situation, answer the following questions:

1. Does the new law apply to Anne's property? Explain your answer in the context of Article 4 of the Civil Code.
2. If the new law does apply to Anne's property, what rights does she have in terms of challenging the law's retroactive application?
3. What factors should be considered in determining whether the retroactive application of the law violates Anne's vested rights?