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7/28/2019 Agri Cases 1 7 3 2
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1.GAVINOCORPUZvs.SpousesGERONIMOandHILARIAGROSPE
Facts:
Petitioner Gavino Corpuz was a farmer-beneficiary under the Operation Land
Transfer(OLT)ProgramoftheDepartmentofAgrarianReform(DAR).Pursuantto
PresidentialDecree(PD)No.27,hewasissuedaCertificateofLandTransfer(CLT)overtwoparcelsofagriculturalland(LotNos.3017and012)withatotalareaof3.3hectares situated in Salungat, Sto. Domingo,NuevaEcija. The lotswere formerly
ownedbyacertainFlorentinoChiocoandregisteredunderTitleNo.126638.
To pay for his wifes hospitalization, petitioner mortgaged the subject land on
January20,1982,infavorofVirginiadeLeon.Whenthecontractperiodexpired,he
againmortgaged it toRespondentHilariaGrospe,wifeofGeronimoGrospe, for a
periodoffouryears(December5,1986toDecember5,1990)toguaranteealoanof
P32,500. The parties executed a contract denominated as "Kasunduan Sa
Pagpapahiram Ng Lupang Sakahan," which allowed the respondents to use or
cultivatethelandduringthedurationofthemortgage.
Before the Department of Agrarian Reform Adjudication Board (DARAB) inCabanatuanCity(RegionIII),petitionerinstitutedagainsttherespondentsanaction
for recoveryofpossession. InhisComplaint,heallegedthattheyhadentered the
disputedlandbyforceandintimidationonJanuary10and11,1991,anddestroyed
thepalaythathehadplantedonthe land.Respondents, intheirAnswer, claimed
thatthe"Kasunduan"betweenthemandpetitionerallowedtheformertotakeoverthepossessionandcultivationofthepropertyuntilthelatterpaidhisloan.Instead
of paying his loan, petitioner allegedly executed on June 29, 1989, a "Waiver ofRights"[7]overthelandholdinginfavorofrespondentsinconsiderationofP54,394.
Petitionerdeniedwaivinghisrightsandinterestoverthelandholdingandalleged
thathisandhischildrenssignaturesappearingontheWaiverwereforgeries.
Provincial Agrarian Reform Adjudicator (PARAD) Ernesto P. Tabara ruled that
petitionerabandonedandsurrenderedthelandholdingtotheSamahangNayonof
Malaya, Sto.Domingo,NuevaEcija, whichhad passed ResolutionNos. 16 and 27
recommendingthereallocationofthesaidlotstotherespondentspouses,whowere
the "most qualified farmer[s]-beneficiaries." The appellate court also ruled that
petitionerhadabandonedthelandholdingandforfeitedhisrightasabeneficiary.It
rejectedhiscontentionthatalldeedsrelinquishingpossessionofthelandholdingby
abeneficiarywereunenforceable.
Issue:Whetherornotthepetitionerabandonedorvoluntarilysurrenderedhisrightsasa
beneficiaryunderPD27?
Held:
Yes.The sale, transferorconveyanceof land reform rights are, asa rule,void inordertopreventacircumventionofagrarianreformlaws.However,inthepresent
case, the voluntary surrender orwaiver of theserights infavorof the Samahang
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Nayonisvalidbecausesuchactionisdeemedalegallypermissibleconveyancein
favorofthegovernment.Afterthesurrenderorwaiverofsaidlandreformrights,the Department of Agrarian Reform, which took control of the property, validly
awardedittoprivaterespondents.
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2.FRANCISCOESTOLASvs.ADOLFOMABALOT
Facts:
SubjectagriculturallandwasawardedtorespondentbyvirtueofPD27in
1973andaCLTwasissuedinhisfavor.Inneedofmoneyformedical
expenses,respondentpassedonthepropertytopetitionerforP5,800.00andP200.00worthofrice.Accordingtorespondent,thatwasaverbalmortgage.Accordingtopetitioner,asalehadtakenplaceandatransfer
certificateoftitlewasissuedinpetitioner'sname.Unabletoredeemthe
propertyrespondentfiledacomplaintforreconveyancewiththeDAR
officewhichfoundhisactofsurrenderingthelandinfavorofpetitioneras
constitutinganabandonmentthereof.TheDARCentralOffice,however,
reversedtheassailedorderanddirectedthepetitionertoreturntheland
torespondent.TheCAalsoheldthatthetransferofthelandtopetitioner
wasvoidandthattherewasnoabandonmentbecauserespondenttriedto
redeemthepropertybutpetitioneraskedforahighpurchaserice.
Issue:Whetherornotthetransferofthelandtothepetitionerwasvoid
Held:
Yes.LandawardedunderPD27cannotbetransferredexcepttothegrantee'sheirs
byhereditarysuccession,orbacktothegovernmentbyotherlegalmeans;thelawisclearandleavesnoroomforinterpretation;agrarianlawsmustbeliberally
interpretedinfavorofthegrantees;thepropertywasnotabandonedasrespondentcontinuestoclaimdominionovertheland;andthatevenifrespondentdidindeed
abandonsubjectproperty,anytransfermayonlybemadeinfavorofthe
government.
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3.CHAVEZvs.PUBLICESTATESAUTHORITY
Facts:
President Ferdinand E. Marcos issued PD No. 1084 creating PEA. PD No. 1084
tasked PEA "to reclaim land, including foreshore and submerged areas," and "to
develop,improve,acquire,leaseandsellanyandallkindsoflands."ThenPresidentMarcos issued Presidential Decree No. 1085 transferring to PEA the "landsreclaimedintheforeshoreandoffshoreoftheManilaBay"undertheManila-Cavite
CoastalRoadandReclamationProject(MCCRRP).Thereafter,PresidentCorazonC.
AquinoissuedSpecialPatentNo.3517,grantingandtransferringtoPEA"theparcels
oflandsoreclaimedundertheManila-CaviteCoastalRoadandReclamationProject
(MCCRRP)containing a totalareaof1,915,894 squaremeters."Subsequently, the
RegisterofDeedsof theMunicipalityofParaaqueissuedTransferCertificatesof
Title, in the name of PEA, covering the three reclaimed islands known as the
"Freedom Islands" located at the southern portion of the Manila-Cavite Coastal
Road,Paraaque City.PEA and AMARIentered into the JointVentureAgreement
(JVA)throughnegotiationwithoutpublicbidding.PresidentFidelV.Ramos,throughthenExecutiveSecretaryRubenTorres,approvedtheJVA.TheSenateCommitteesreportedtheresultsoftheirinvestigation:
(1)thereclaimedlandsPEAseekstotransfertoAMARIunderthe
JVAarelandsofthepublicdomainwhichthegovernmenthasnot
classifiedasalienablelandsandthereforePEAcannotalienatetheselands;
(2)thecertificatesoftitlecoveringtheFreedomIslandsarethusvoid,and
(3)theJVAitselfisillegal.
PetitionerFrankI.Chavezasataxpayer,filedaPetitionforMandamuswithPrayer
fortheIssuanceofaWritofPreliminaryInjunctionandTemporaryRestraining
Order.Petitionercontendsthegovernmentstandstolosebillionsofpesosinthe
salebyPEAofthereclaimedlandstoAMARI.PetitionerpraysthatPEApublicly
disclosethetermsofanyrenegotiationoftheJVA,invokingSection28,ArticleII,and
Section7,ArticleIII,ofthe1987Constitutionontherightofthepeopleto
informationonmattersofpublicconcern.
Issue:
Whetherornotthestipulationsintheamendedjointventureagreementforthe
transfertoAMARIofcertainlands,reclaimedandstilltobereclaimedisvalid
Held:
No.ThemerephysicalactofreclamationbyPEAofforeshoreorsubmergedareas
doesnotmakethereclaimedlandsalienableordisposablelandsofthepublicdomain,muchlesspatrimoniallandsofPEA.Likewise,themeretransferbythe
NationalGovernmentoflandsofthepublicdomaintoPEAdoesnotmakethelands
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alienableordisposablelandsofthepublicdomain,muchlesspatrimoniallandsof
PEA.ThereisnoexpressauthorityundereitherPDNo.1085orEONo.525forPEAtosellitsreclaimedlands.PEA'scharter,however,expresslytasksPEA"todevelop,
improve,acquire,administer,dealin,subdivide,dispose,leaseandsellanyandall
kindsoflands...owned,managed,controlledand/oroperatedbythegovernment."
Thereis,therefore,legislativeauthoritygrantedtoPEAtosellitslands,whetherpatrimonialoralienablelandsofthepublicdomain.PEAmayselltoprivatepartiesitspatrimonialpropertiesinaccordancewiththePEAcharterfreefrom
constitutionallimitations.Theconstitutionalbanonprivatecorporationsfrom
acquiringalienablelandsofthepublicdomaindoesnotapplytothesaleofPEA's
patrimoniallands.
Moreover,thegovernmentisrequiredtosellvaluablegovernmentpropertythrough
publicbidding.InthecaseatbartheoriginalJVAdatedApril25,1995coverednot
onlytheFreedomIslandsandtheadditional250hectaresstilltobereclaimed,it
alsograntedanoptiontoAMARItoreclaimanother350hectares.TheoriginalJVA,a
negotiatedcontract,enlargedthereclamationareato750hectares.ThefailureofpublicbiddingonDecember10,1991,involvingonly407.84hectares,isnotavalidjustificationforanegotiatedsaleof750hectares,almostdoubletheareapublicly
auctioned.Thegrantoflegislativeauthoritytosellpubliclandsdoesnot
automaticallyconvertalienablelandsofthepublicdomainintoprivateor
patrimoniallands.Thealienablelandsofthepublicdomainmustbetransferredto
qualifiedprivateparties,ortogovernmententitiesnottaskedtodisposeofpubliclands,beforetheselandscanbecomeprivateorpatrimoniallands.Toallowvast
areasofreclaimedlandsofthepublicdomaintobetransferredtoPEAasprivatelandswillsanctionagrossviolationoftheconstitutionalbanonprivate
corporationsfromacquiringanykindofalienablelandofthepublicdomain.The
157.84hectaresofreclaimedlandscomprisingtheFreedomIslands,nowcoveredbycertificatesoftitleinthenameofPEA,arealienablelandsofthepublicdomain.
PEAmayleasetheselandstoprivatecorporationsbutmaynotsellortransfer
ownershipoftheselandstoprivatecorporations.
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4.LUZFARMSvs.THEHONORABLESECRETARYOFDAR
Facts:
LuzFarms,petitionerinthiscase,isacorporationengagedinthelivestockand
poultrybusinessandtogetherwithothersinthesamebusinessallegedlystandsto
beadverselyaffectedbytheenforcementofSection3(b),Section11,Section13,Section16(d)and17andSection32ofR.A.No.6657otherwiseknownasComprehensiveAgrarianReformLawandoftheGuidelinesandProcedures
ImplementingProductionandProfitSharingunderR.A.No.6657promulgated
onJanuary2,1989andtheRulesandRegulationsImplementingSection11
thereofaspromulgatedbytheDARonJanuary9,1989
Hence,thispetitionprayingthataforesaidlaws,guidelinesandrulesbedeclared
unconstitutional.Meanwhile,itisalsoprayedthatawritofpreliminaryinjunction
orrestrainingorderbeissuedenjoiningpublicrespondentsfromenforcingthe
same,insofarastheyaremadetoapplytoLuzFarmsandotherlivestockand
poultryraisers.LuzFarmsquestionsthefollowingprovisionsofR.A.6657,insofaras
theyaremadetoapplytoit:
(a)Section3(b)whichincludesthe"raisingoflivestock(andpoultry)"inthe
definitionof"Agricultural,AgriculturalEnterpriseorAgriculturalActivity."
(b)Section11whichdefines"commercialfarms"as"privateagriculturallandsdevotedtocommercial,livestock,poultryandswineraising..."
(c)Section13whichcallsuponpetitionertoexecuteaproduction-sharingplan.(d)Section16(d)and17whichvestontheDepartmentofAgrarianReformthe
authoritytosummarilydeterminethejustcompensationtobepaidforlands
coveredbytheComprehensiveAgrarianReformLaw.(e)Section32whichspellsouttheproduction-sharingplanmentionedinSection
13
Theconstitutionalprovisionunderconsiderationreadsasfollows:
ARTICLEXIII
xxx
AGRARIANANDNATURALRESOURCESREFORM
Section4.TheStateshall,bylaw,undertakeanagrarianreformprogramfounded
ontherightoffarmersandregularfarmworkers,whoarelandless,toowndirectly
orcollectivelythelandstheytillor,inthecaseofotherfarmworkers,toreceivea
justshareofthefruitsthereof.Tothisend,theStateshallencourageandundertakethejustdistributionofallagriculturallands,subjecttosuchpriorities
andreasonableretentionlimitsastheCongressmayprescribe,takingintoaccountecological,developmental,orequityconsiderations,andsubjecttothepaymentof
justcompensation.Indeterminingretentionlimits,theStateshallrespectthe
rightsofsmalllandowners.TheStateshallfurtherprovideincentivesforvoluntaryland-sharing.xxx"
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It,however,arguedthatCongressinenactingthesaidlawhastranscendedthe
mandateoftheConstitution,inincludinglanddevotedtotheraisingoflivestock,poultryandswineinitscoverage.Livestockorpoultryraisingisnotsimilarto
croportreefarming.Landisnottheprimaryresourceinthisundertakingand
representsnomorethanfivepercent(5%)ofthetotalinvestmentofcommercial
livestockandpoultryraisers.Indeed,therearemanyownersofresidentiallandsalloverthecountrywhouse
availablespaceintheirresidenceforcommerciallivestockandraisingpurposes,
under"contract-growingarrangements,"wherebyprocessingcorporationsand
othercommerciallivestockandpoultryraisersLandssupportthebuildingsand
otheramenitiesattendanttotheraisingofanimalsandbirds.Theuseoflandis
incidentaltobutnottheprincipalfactororconsiderationinproductivityinthis
industry.
Ontheotherhand,thepublicrespondentarguedthatlivestockandpoultry
raisingisembracedintheterm"agriculture"andtheinclusionofsuchenterpriseunderSection3(b)ofR.A.6657isproper.HecitedthatWebster'sInternationalDictionary,SecondEdition(1954),definesthefollowingwords:
"Agriculturetheartorscienceofcultivatingthegroundandraisingand
harvestingcrops,often,includingalso,feeding,breedingandmanagementof
livestock,tillage,husbandry,farming.Itincludesfarming,horticulture,forestry,
dairying,sugarmaking...Livestockdomesticanimalsusedorraisedonafarm,especiallyforprofit.Farmaplotortractoflanddevotedtotheraisingof
domesticorotheranimals."
ISSUE:
WhetherornotSections3(b),11,13and32ofR.A.No.6657insofarasthesaidlawincludestheraisingoflivestock,poultryandswineinitscoverageaswellasthe
ImplementingRulesandGuidelinespromulgatedinaccordancetherewithis
constitutional?
HELD:
No.ThetranscriptsofthedeliberationsoftheConstitutionalCommissionof1986
onthemeaningoftheword"agricultural,"clearlyshowthatitwasneverthe
intentionoftheframersoftheConstitutiontoincludelivestockandpoultryindustry
inthecoverageoftheconstitutionally-mandatedagrarianreformprogramofthe
Government.
TheCommitteeadoptedthedefinitionof"agriculturalland"asdefinedunderSection166ofR.A.3844,aslauddevotedtoanygrowth,includingbutnotlimitedto
croplands,saltbeds,fishponds,idleandabandonedland
TheintentionoftheCommitteeistolimittheapplicationoftheword"agriculture."
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ItisevidentfromtheforegoingdiscussionthatSectionIIofR.A.6657which
includes"privateagriculturallandsdevotedtocommerciallivestock,poultryandswineraising"inthedefinitionof"commercialfarms"isinvalid,totheextentthat
theaforecitedagro-industrialactivitiesaremadetobecoveredbytheagrarian
reformprogramoftheState.Thereissimplynoreasontoincludelivestockand
poultrylandsinthecoverageofagrarianreform.Hence,thereismeritinLuzFarms'argumentthattherequirementinSections13
and32ofR.A.6657directing"corporatefarms"whichincludelivestockandpoultry
raiserstoexecuteandimplement"production-sharingplans"(pendingfinal
redistributionoftheirlandholdings)wherebytheyarecalledupontodistribute
fromthreepercent(3%)oftheirgrosssalesandtenpercent(10%)oftheirnet
profitstotheirworkersasadditionalcompensationisunreasonableforbeing
confiscatory,andthereforeviolativeofdueprocess
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6.PHILIPPINENATURALRAILWAYSvs.DELVALLE
Facts:
PhilippineNationalRailways(PNR)ownedthreestripsoflandalongtheManila-
legazpiroute,partofitsrailroadrightofway.Someportionsofthelandwere
occupiedbypeople,promptingdisputes.PNRadoptedtemporaryrulesforthepossessionofthelandthroughrentals.PNRawardedtheuseofthelandafterabiddingtoPantaleonBingabingforaperiodofthreeyearscreatingacivillawlease
expresslystipulatingBingabingto"occupyandustheproperty.temporarilyfor
agriculture."BingabingfailedtotakepossessionofthesaidpieceoflandasPampilo
Doltzhadoccupiedthelandandclaimsthatheisatenantofthepreviousawardees
andBingabingtoo.Inresponsetothis,PNRandBingabingfiledsuitagainstDoltzfor
recoveryofthepossessionoftheland,toremovethehouseofDoltzandpayfor
compensationtoBingabing.
Doltzdefensesstatethatheisinteraliatenantonthepropertyfor20yearsplaced
bydeceasedlessorPabloGomba,andsuccessorDemetriodeVera.HealsoclaimedthathehadgivenBingabing1/3ofthecropharvestprofitsandbyeffectbecomeatenantofBingabing.Uponthecourt'srequest,DoltzandBingabingagreedto
temporarilyliquidatetheharvestonasharingratioof70-30inDoltz'favour.While
thecasewaspending,DoltzregisteredwiththeCourtofAgrarianRelations(CAR)a
petitionagainstBingabingforsecurityoftenure,theadoptionofasharingratioof
70-30ofthecrops,andreliquidationofpastharvests.PNRintervenedinthecase.Petitionershereintheremaintainedthepositionthatthepremisesincontroversy
arenotanagriculturallandwithinthecontemplationoftheAgriculturalTenancyAct(RepublicAct1199)ortheAgriculturalLandReformCode(RepublicAct3844);
thatnotenancyrelationshipexistedbetweentheparties;thatCAR,therefore,lacked
jurisdictionoverthecase;andthatthereisapendingcasebetweenthesamepartiesinanothercourtinvolvingthesamesubjectmatterandthesamecauseofaction.
CARdecidedinfavorofDoltzandthatthesharingratiobemaintained.
Issues:
(1)IsthelandindisputeagriculturallandwithintheAgriculturalTenancyactand
the
AgriculturalLandreformcode?
(2)IsDoltzconsideredatenant?
Held:
(1)No.Section3oftheAgriculturalTenancyAct,"agriculturaltenancyisthephysicalpossessionbyapersonoflanddevotedtoagriculturebelongingto,or
legallypossessedby,anotherforthepurposeofproductionthroughthelaboroftheformerandofthemembersofhisimmediatefarmhousehold,inconsiderationof
whichtheformeragreestosharetheharvestwiththelatter,ortopayaprice
certainorascertainable,eitherinproduceorinmoney,orinbothSection166(1)oftheAgriculturalLandReformCode,"agriculturalland"means
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landdevotedtoanygrowthincludingbutnotlimitedtocroplands,saltbeds,
fishponds,idlelandandabandonedlandasdefinedinparagraphs18and19ofthissection.Thelandhereincontroversydoesnotfitintotheconceptofagricultural
land.PNRcannotdevoteittoagriculturebecausebyitsowncharter,RepublicAct
4156,PNRcannotengageinagriculture.Agriculturalactivitiesmayhamperthe
operation,securityandsafetyofthePNR.(2)ThecontractofleaseexecutedbyPNRinfavourofBingabingwasmerely
temporaryandmayberevocableatanytimethePNRneedstheleasedlandforits
ownuse.Also,thecontractrulesstipulatethatanyformofsubleaseofthelandis
prohibitedandthatpreviousawardeesdeVera,Gombaorpresentleaseholder
Bingabingcannotcreateone,sincePNRdidnotconsenttothecreationofsuch.
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7.KRIVENKOvs.REGISTEROFDEEDS
Facts:
Petitionermaforeigner,boughtresidentiallotfromtheMagdalenaEstate, Inc. inDecember 1941, but the registration wasinterrupted due to war (Second World War). In
May 1945, he tried to accomplish theregistration of the aforementioned residential lotbut then he was denied by the Registryof Deedsof Manila because he was not a Filipino
citizen. The constitutional provision in question is Section 1 of article XIII of theConstitution (1935) which provides; Natural resources, with the exception of public
agricultural land, shall not be alienated. And with respect to public agricultural lands,theiralienation is limited to Filipino citizens. Krivenko contends that the land he bought is
not covered by the said constitutional provision because it was a private residential landand not a public agricultural land.
Issue:
Whether or not an alien may acquire residential lang
Held:No. Section 5 of Article XIII of the Constitution (1935) provides; save in cases
of hereditary succession, no private agricultural land shall be transferred orassigned except to individuals, corporations, or associations qualified to acquire or hold
lands of the public domain in the Philippines. Ir is rue in statutory construction t h a t aword o r phrase repeated in a stature will bear t h e same meaning throughout the statute,
unless a different intention appears. The only difference between agricultural landunder Section 1 and agricultural land under section 5, is that the former is public and
the latter is private. But such difference refers to the ownership and not the class ofland. The lands are the same in both sections and for the conservation of national
patrimony, what is important Is the nature o r class of the property regardless whether itisowned by the State or by its citizens.