Friday, August 24, 2018

BUKLOD NANG MAGBUBUKID vs DAR, G.R. No. 131481, March 16 , 2011 - Case Digest




BUKLOD NANG MAGBUBUKID SA LUPAING RAMOS, INC., PETITIONER,
vs
E. M. RAMOS AND SONS, INC., RESPONDENT.
G.R. No. 131481, March 16 , 2011
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DEPARTMENT OF AGRARIAN REFORM, PETITIONER,
vs
E. M. RAMOS AND SONS, INC., RESPONDENT.
G.R. No. 131624


FACTS:
  • At the core of the controversy are several parcels of unirrigated land (303.38545 hectares) which from part of a larger expanse with an area of 372 hectares situated at Barangay Langkaan, Dasmarinas, Cavite. Originally owned by the MAnila Golf and Country Club, he property was aquired by the [herein repondent EMRASON] in 1965 for the purpose of developing the same into a residential subdivision known as "Traveller's Life Homes".
  • Sometime in 1971, the Municipal Council of Dasmariñas, Cavite, acting pursuant to Republic Act (R.A.) No. 2264, otherwise known as the "Loval Autonomy Act", enacteed Municipal Ordinance No. 1, hereinafter referred to as Ordinance No. 1, enitled "An Ordinance Providing Subdivision Regulation and Providing Penalties for Violation Thereof."
  • In May, 1972, [respondent] E.M. Ramos and Sons, Inc., applied for an authority to convert and development its aforementioned 372-hectare property into a residential subdivision, ataching to the apllication detailed development plans and development proposals from Bancom Development Corporation and San Miguel Corporation. Acting thereon the Municipal Council of Dasmariñas, Cavite passed on July 9, 1972 Municipal Ordinance No. 29-A (Ordinance "No. 29-A, for brevity), approving [EMRASON's] application. Subsequently, [EMRASON] paid the fees, dues and licenses needed to proceed with property development.
  • It appears, however, that the actual implementation of the subdivision project suffered delay owing to the confluence of events. Among these was the fact that the property in question was then mortgaged to, and the titles thereto were in the possession of, the Overseas Bank of Manila, which during the period material was under liquidation.
  • On June 15. 1988, Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform Law or CARL, took effect, ushering in a new process of land classification, acquisition and distribution.
  • On September 23, 1988, the Municipal Mayor of Dasmariñas, Cavite addressed a letter to [EMRASON], stating in part, as follows:

"In reply to your letter of June 2, 1988, we wish to clarify that the Municipality of Dasmarinas, Cavite, has approved the development of your property situated in Barrios Bukal and Langkaan, Dasmarinas, Cavite, with a total area of 372 hectares, more or less, into residential, industrial, commercial and golf course project. This conversion conforms with the approved Development Plan of the Municipality of Dasmarinas Cavite".

  • On August 29, 1990, then OAR Secretary Benjamin Leong sent out the first of four batches of notices of acquisition, each of which drew protest from [EMRASON]. All told, these notices covered 303.38545 hectares of land situated at Barangay Langkaan, Dasmarinas, Cavite owned by [EMRASON].
  • In the meantime, [EMRASON] filed with the Department of Agrarian Reform Adjudication Board (DARAB), Region IV, Pasig, Metro Manila, separate petitions to nullify the first three sets of the above notices. Collectively docketed as DARAB Case No. IV-Ca-0084-92, these petitions were subsequently referred to the Office of the Regional Director, Region IV, which had jurisdiction thereon. In his referral action, the Provincial Agrarian Adjudicator directed the DAR Region IV, through its Operations Division, to conduct a hearing and/or investigation lo determine whether or not the subject property is covered by the Comprehensive Agrarian Reform Program (CARP) and, if not, to cancel the notices of acquisition.
  • Forthwith, the DAR regional office conducted an on-site inspection of the subject property.
  • In the course of the hearing, during which [EMRASON] offered Exhibits :'A" to "UU-2" as documentary evidence, [EMRASON] received another set of notices of acquisition. As lo be expected, [EMRASON] again protested.
  • On August 28, 1992, the Legal Division of DAR, Region IV, through Hearing Officer Victor Baguilat, rendered a decision declaring as null and void all the notices of acquisitions, observing that the property covered thereby is, pursuant to Department of Justice (DOJ) Opinion No. 44, series of 1990, exempt from CARP.
  • The DOJ Opinion adverted to, rendered by then Justice Secretary Franklin Drilon, clarified that lands already converted to non-agricultural uses before June 15, 1988 were no longer covered by CARP.
  • On September 3, 1992, the Region IV DAR Regional Director motu propio elevated the case to the Office of the Agrarian Reform Secretary, it being his view that Hearing Officer Baguilat's decision ran contrary to the department's official position "to pursue the coverage of the same properties and its eventual distribution to qualified beneficiaries particularly the Langkaan farmers in fulfillment of the commitment of the government to deliver to them the balance of thirty-nine hectares x x x".
  • On January 6, 1993, the herein respondent DAR Secretary Ernesto Garilao [(DAR Secretary Garilao)] issued an order affirming the Notices of Acquisition and Directing the OAR field officials concerned to pursue (he coverage under RA 6657 of the properties of E.M. Ramos & Sons, Inc. for which subject Notices of Acquisition had been issued.
  • Its motion for reconsideration of the aforesaid order having been denied by the [DAR Secretary Garilao] in his subsequent order of January 6, 1993, [EMRASON] appealed to the Office of the President.
  • On February 7, 1996, the Office of the President, through herein respondent Deputy Executive Secretary Renato C. Corona [(Deputy Executive Secretary Corona)], rendered the herein assailed decision x x x, dismissing [EMRASON's] appeal.
  • Undaunted, [EMRASON] interposed a motion for reconsideration, followed later by another motion whereunder it invited attention to legal doctrines involving land conversion recently enunciated by no less than the Office of the President itself.
  • On May 14, 1996, the [Deputy Executive Secretary Corona] came out with his second challenged issuance denying [EMRASON's] aforementioned motion for reconsideration x x x.
  • From the denial of its Motion for Reconsideration by the OP, EMRASON filed a Petition for Review with the Court of Appeals.
  • On July 3, 1996, the Court of Appeals issued a Temporary Restraining Order (TRO), which enjoined then DAR Secretary Ernesto Garilao and Deputy Executive Secretary Renato C. Corona from implementing the OP Decision of February 7, 1996 and Resolution of May 14, 1996 until further orders from the court. On September 17, 1996, the appellate court issued a Resolution granting the prayer of EMRASON for the issuance of a writ of preliminary injunction.
  • The DAR Secretary filed a Motion for Reconsideration of the Resolution dated September 17, 1996 of the Court of Appeals, with the prayer that the writ of preliminary injunction already issued be lifted, recalled and/or dissolved.
  • At this juncture, the DAR had already prepared Certificates of Land Ownership Award (CLOAs) to distribute the subject property to farmer-beneficiaries. However, the writ of preliminary injunction issued by the Court of Appeals enjoined the release of the CLOAs. Buklod, on behalf of the alleged 300 farmer-beneficiaries of the subject property, filed a Manifestation and Omnibus Motion, wherein it moved that it be allowed to intervene as an indispensable party in CA-G.R. SP No. 40950; that the writ of preliminary injunction be immediately dissolved, having been issued in violation of Section 55 of the CARL; and that the Petition for Review of EMRASON be dismissed since the appropriate remedy should have been a petition for certiorari before the Supreme Court.
  • The Court of Appeals allowed the intervention of Buklod because -the latter's participation was "not being in any way prejudicial to the interest of the original parties, nor will such intervention change the factual legal complexion of the case." The appellate court, however, affirmed the propriety of the remedy availed by EMRASON given that under Section 5 of Supreme Court Revised Administrative Circular No. 1-95 dated May 16, 1995, appeals from judgments or final orders of the OP or the DAR under the CARL shall be taken to the Court of Appeals, through a verified petition for review; and that under Section 3 of the same Administrative Circular, such a petition for review may raise questions of facts, law, or mixed questions of facts and law.
  • Ultimately, the Court of Appeals ruled in favor of EMRASON because the subject property was already converted/classified as residential by the Municipality of Dasmarinas prior to the effectivity of the CARL.. The Court of Appeals further observed that the subject property has never been devoted to any agricultural activity and is, in fact, more suitable for non-agricultural purposes.


ISSUE:
  • W/N the subject property could be placed under the CARP.

HELD:
NO. Section 4, Chapter II of the CARL, as amended,24 particularly defines the coverage of the CARP, to wit:

SEC. 4. Scope. - The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of tenurial arrangement and commodity produced, all public and private agricultural lands as provided in Proclamation No. 131 and Executive Order No. 229, including other lands of the public domain suitable for agriculture: Provided, That landholdings of landowners with a total area of five (5) hectares and below shall not be covered for acquisition and distribution to qualified beneficiaries.
More specifically, the following lands are covered by the CARP:

(a) All alienable and disposable lands of the public domain devoted to or suitable for agriculture. No reclassification of forest or mineral lands to agricultural lands shall be undertaken after the approval of this Act until Congress, taking into account ecological, developmental and equity considerations, shall have determined by law, the specific limits of the public domain;
(b) All lands of the public domain in excess of the specific limits as determined by Congress in the preceding paragraph;

(c) All other lands owned by the Government devoted to or suitable for agriculture; and

(d) All private lands devoted to or suitable for agriculture regardless of the agricultural products raised or that can be raised thereon.

A comprehensive inventory system in consonance with the national land use plan shall be instituted by the Department of Agrarian Reform (DAR), in accordance with the Local Government Code, for the purpose of properly identifying and classifying farmlands within one (1) year from effectivity of this /Vet. without prejudice to the implementation of the land acquisition and distribution." (Emphases supplied.)

Section 3(c), Chapter I of the CARL further narrows down the definition of agricultural land that is subject to CARP to "land devoted to agricultural activity as defined in this Act and not classified as mineral, forest, residential, commercial or industrial land."

The CARL took effect on June 15, 1988. To be exempt from the CARP, the subject property should have already been reclassified as residential prior to said date.

Zoning is governmental regulation of the uses of land and buildings according to districts or zones. It is comprehensive where it is governed by a single plan for the entire municipality and prevails throughout the municipality in accordance with that plan. It is partial or limited where it is applicable only to a certain part of the municipality or to certain uses. Fire limits, height districts and building regulations are forms of partial or limited zoning or use regulation that are antecedents of modern comprehensive zoning, (pp. 11-12.)

The term "zoning," ordinarily used with the connotation of comprehensive or general zoning, refers to governmental regulation of the uses of land and buildings according to districts or zones. This regulation must and does utilize classification of uses within districts as well as classification of districts, inasmuch as it manifestly is impossible to deal specifically with each of the innumerable uses made of land and buildings. Accordingly, (zoning has been defined as the confining of certain classes of buildings and uses to certain localities, areas, districts or zones.) It has been stated that zoning is the regulation by districts of building development and uses of property, and that the term "zoning" is not only capable of this definition but has acquired a technical and artificial meaning in accordance therewith. (Zoning is the separation of the municipality into districts and the regulation of buildings and structures within the districts so created, in accordance with their construction, and nature and extent of their use. It is a dedication of districts delimited to particular uses designed to subserve the general welfare.) Numerous other definitions of zoning more or less in accordance with these have been given in the cases, (pp. 27-28.)

The concept that concerns this Court in the instant cases is the reclassification of agricultural lands. In Alarcon v. Court of Appeals, the Court had the occasion to define and distinguish reclassification from conversion as follows:

Conversion is the act of changing the current use of a piece of agricultural land into some other use as approved by the Department of Agrarian Reform. Reclassification, on the other hand, is the act of specifying how agricultural lands shall be utilized for non-agricultural uses such as residential, industrial, commercial, as embodied in the land use plan, subject to the requirements and procedure for land use conversion, x x x. (Italics supplied.)

Reclassification also includes the reversion of non-agricultural lands to agricultural use.

Under the present Local Government Code, it is clear that the authority to reclassify agricultural lands primarily resides in the sanggunian of the city or municipality.

Resolution No. 29-A is a valid ordinance, which, upon its approval on July 9, 1972, immediately effected the zoning and reclassifying of the subject property for residential use. It need not comply with any of the requirements or conditions which DAR and Buklod are insisting upon.

DAR and Buklod aver that Resolution No. 29-A was not reviewed and approved by the NPC, in violation of the line in Section 3 of the Local Autonomy Act of 1959, stating that "[c]ities and municipalities may, however, consult the National Planning Commission on matters pertaining to planning and zoning." Consideration must be given, however, to the use of the word "may" in the said sentence. Where the provision reads "may," this word shows that it is not mandatory but discretionary. It is an auxiliary verb indicating liberty, opportunity, permission and possibility. The use of the word "may" in a statute denotes that it is directory in nature and generally permissive only. The "plain meaning rule" or verba legis in statutory construction is thus applicable in this case. Where the words of a statute are clear, plain, and free from ambiguity, it must be given its literal meaning and applied without attempted interpretation. Since consultation with the NPC was merely discretionary, then there were only two mandatory requirements for a valid zoning or subdivision ordinance or regulation under Section 3 of the Local Autonomy Act of 1959, namely, that
(1) the ordinance or regulation be adopted by the city or municipal board or council; and (2) it be approved by the city or municipal mayor, both of which were complied with byl Resolution No. 29-A.

DAR vs SALVADOR N. LOPEZ AGRIBUSINESS CORP, G.R. No. 179071 January 10, 2011 - Case Digest




REPUBLIC OF THE PHILIPPINES, represented by the DEPARTMENT OF AGRARIAN REFORM, through the HON. SECRETARY NASSER C. PANGANDAMAN, Petitioner,
vs
SALVADOR N. LOPEZ AGRIBUSINESS CORP., represented by SALVADOR N. LOPEZ, JR., President and General Manager, Respondent.
G.R. No. 178895

x-------------------------------------------------------x

SALVADOR N. LOPEZ AGRIBUSINESS CORP., represented by SALVADOR N. LOPEZ, JR., President and General Manager, Petitioner,
vs
DEPARTMENT OF AGRARIA REFORM, through the Honorable Secretary, Respondent.
G.R. No. 179071 January 10, 2011


FACTS:
  • Subject of this petition are four (4) parcels of land with an aggregate area of 160.1161 hectares registered in the name of Salvador N. Lopez AgriBusiness Corporation. Said parcels of land are hereinafter described as follows:



  • On August 2, 1991, Municipal Agrarian Reform Officer (MARO) Socorro C. Salga issued a Notice of Coverage to petitioner with regards (sic) to the aforementioned landholdings which were subsequently placed under Compulsory Acquisition pursuant to R.A. 6657 (Comprehensive Agrarian Reform Law).
  • On December 10, 1992, petitioner filed with the Provincial Agrarian Reform Office (PARO), Davao Oriental, an Application for Exemption of the lots covered by TCT No. T12637 and T12639 from CARP coverage. It alleged that pursuant to the case of Luz Farms v. DAR Secretary said parcels of land are exempted from coverage as the said parcels of land with a total area of 110.5455 hectares are used for grazing and habitat of petitioners 105 heads of cattle, 5 carabaos, 11 horses, 9 heads of goats and 18 heads of swine, prior to the effectivity of the Comprehensive Agrarian Reform Law (CARL).
  • On December 13, 1992 and March 1, 1993, the MARO conducted an onsite investigation on the two parcels of land confirming the presence of the livestock as enumerated. The Investigation Report dated March 9, 1993 stated:

Cognitive thereto, we are favorably recommending for the exemption from the coverage of CARP based on LUZ FARMS as enunciated by the Supreme Court the herein Lot No. 1293-B Psd-65835 under TCT No. T12639 except Lot No. 1298, Cad. 286 of TCT No. T12637 which is already covered under the Compulsory Acquisition (CA) Scheme and had already been valued by the Land Valuation Office, Land Bank of the Philippines.”

  • On June 24, 1993, TCT No. T12635 covering Lots 1454A & 1296 was cancelled and a new one issued in the name of the Republic of the Philippines under RP T16356. On February 7, 1994, petitioner through its President, Salvador N. Lopez, Jr., executed a letteraffidavit addressed to the respondent Secretary requesting for the exclusion from CARP coverage of Lots 1454A and 1296 on the ground that they needed the additional area for its livestock business. On March 28, 1995, petitioner filed before the DAR Regional Director of Davao City an application for the exemption from CARP coverage of Lots 1454A and 1296 stating that it has been operating grazing lands even prior to June 15, 1988 and that the said two (2) lots form an integral part of its grazing land.
  • The DAR Regional Director, after inspecting the properties, issued an Order dated March 5, 1997 denying the application for exemption of Lots 1454A and 1296 on the ground that it was not clearly shown that the same were actually, directly and exclusively used for livestock raising since in its application, petitioner itself admitted that it needs the lots for additional grazing area. The application for exemption, however of the other two (2) parcels of land was approved.
  • On its partial motion for reconsideration, petitioner argued that Lots 1454A & 1296 were taken beyond the operation of the CARP pursuant to its reclassification to a Pollutive Industrial District (Heavy Industry) per Resolution No. 39 of the Sangguniang Bayan of Mati, Davao Oriental, enacted on April 7, 1992. The DAR Regional Director denied the Motion.
  • The petitioner appealed the Regional Directors Orders to respondent DAR. On June 10, 1998, the latter issued its assailed Order affirming the Regional Directors ruling on Lots 1454A & 1296 and further declared Lots 1298 and 1293B as covered by the CARP.
  • On October 17, 2002, petitioners Motion for Reconsideration was denied by respondent prompting the former to file the instant petition.
  • The Court of Appeals partially granted the SNLABC Petition and excluded the two (2) parcels of land (Transfer Certificate of Title [TCT] Nos. T12637 and T12639) located in Barrio Don Enrique Lopez (the Lopez lands) from coverage of the CARL.
  • However, it upheld the Decisions of the Regional Director and the DAR Secretary denying the application for exemption with respect to Lots 1454A and 1296 (previously under TCT No. T12635) in Barrio Limot (the Limot lands). These lots were already covered by a new title under the name of the Republic of the Philippines (RP T16356). The DAR and SNLABC separately sought a partial reconsideration of the assailed Decision of the Court of Appeals, but their motions for reconsideration were subsequently denied.


ISSUE: W/N the Lopez and Limot lands of SNLABC can be considered grazing lands for its livestock business and are thus exempted from the coverage of the CARL under the Courts ruling in Luz Farms v. DAR.


HELD:
NO. The Limot lands were found to be agricultural lands devoted to coconut trees and rubber and are thus not subject to exemption from CARP coverage.

In the Report dated 06 April 1994, the team that conducted the inspection found that the entire Limot lands were devoted to coconuts (41.5706 hectares) and rubber (8.000 hectares) and recommended the denial of the application for exemption. Verily, the Limot lands were actually, directly and exclusively used for agricultural activities, a fact that necessarily makes them subject to the CARP. These findings of the inspection team were given credence by the DAR Regional Director who denied the application, and were even subsequently affirmed by the DAR Secretary and the Court of Appeals.

Tthe MARO itself in the Investigation Report cited by no less than SNLABC, found that the livestock were only moved to the Limot lands sporadically and were not permanently designated there. The DAR Secretary even described SNLABCs use of the area as a seasonal extension of the applicants grazing lands during the summer. Therefore, the Limot lands cannot be claimed to have been actually, directly and exclusively used for SNLABCs livestock business, especially since these were only intermittently and secondarily used as grazing areas. The said lands are more suitable and are in fact actually, directly and exclusively being used for agricultural purposes.














MILESTONE FARMS vs Office of the President, G.R. No. 182332 February 23, 2011 - Case Digest




MILESTONE FARMS, INC., Petitioner,
vs
OFFICE OF THE PRESIDENT, Respondent.
G.R. No. 182332 February 23, 2011


FACTS:
  • Petitioner Milestone Farms, Inc. (petitioner) was incorporated with the Securities and Exchange Commission on January 8, 1960. Among its pertinent secondary purposes are: (1) to engage in the raising of cattle, pigs, and other livestock; to acquire lands by purchase or lease, which may be needed for this purpose; and to sell and otherwise dispose of said cattle, pigs, and other livestock and their produce when advisable and beneficial to the corporation; (2) to breed, raise, and sell poultry; to purchase or acquire and sell, or otherwise dispose of the supplies, stocks, equipment, accessories, appurtenances, products, and byproducts of said business; and (3) to import cattle, pigs, and other livestock, and animal food necessary for the raising of said cattle, pigs, and other livestock as may be authorized by law.
  • On June 10, 1988, a new agrarian reform law, Republic Act (R.A.) No. 6657, otherwise known as the Comprehensive Agrarian Reform Law (CARL), took effect, which included the raising of livestock, poultry, and swine in its coverage. However, on December 4, 1990, this Court, sitting en banc, ruled in Luz Farms v. Secretary of the Department of Agrarian Reform that agricultural lands devoted to livestock, poultry, and/or swine raising are excluded from the Comprehensive Agrarian Reform Program (CARP).
  • Thus, in May 1993, petitioner applied for the exemption/exclusion of its several properties from the coverage of the CARL, pursuant to the aforementioned ruling of this Court in Luz Farms.
  • Meanwhile, on December 27, 1993, the Department of Agrarian Reform (DAR) issued Administrative Order No. 9, Series of 1993 (DAR A.O. No. 9), setting forth rules and regulations to govern the exclusion of agricultural lands used for livestock, poultry, and swine raising from CAR coverage. Thus, on January 10, 1994, petitioner redocumented its application pursuant to DAR A.O. No. 9.
  • Acting on the said application, the DARs Land Use Conversion and Exemption Committee (LUCEC) of Region IV conducted an ocular inspection on petitioners property and arrived with a recommendation for the exemption of petitioners 316.0422hectare property from the coverage of CARP. Adopting the LUCECs findings and recommendation, DAR Regional Director Percival Dalugdug (Director Dalugdug) issued an Order dated June 27, 1994, exempting petitioners 316.0422 hectare property from CARP.
  • The Southern Pinugay Farmers MultiPurpose Cooperative, Inc. (Pinugay Farmers), represented by Timiano Balajadia, Sr. (Balajadia), moved for the reconsideration of the said Order, but the same was denied by Director Dalugdug in his Order dated November 24, 1994. Subsequently, the Pinugay Farmers filed a letterappeal with the DAR Secretary.
  • Correlatively, on June 4, 1994, petitioner filed a complaint for Forcible Entry against Balajadia and company before the Municipal Circuit Trial Court (MCTC) of TeresaBaras, Rizal. The MCTC ruled in favor of petitioner, but the decision was later reversed by the Regional Trial Court, Ultimately, the case reached the CA, which, in its Decision dated October 8, 1999, reinstated the MCTCs ruling, ordering Balajadia and all defendants therein to vacate portions of the property. In its Resolution dated July 31, 2000, the CA held that the defendants therein failed to timely file a motion for reconsideration, given the fact that their counsel of record received its October 8, 1999 Decision; hence, the same became final and executory.
  • In the meantime, R.A. No. 6657 was amended by R.A. No. 7881, which was approved on February 20, 1995. Private agricultural lands devoted to livestock, poultry, and swine raising were excluded from the coverage of the CARL. On October 22, 1996, the factfinding team formed by the DAR Undersecretary for Field Operations and Support Services conducted an actual headcount of the livestock population on the property. The headcount showed that there were 448 heads of cattle and more than 5,000 heads of swine.
  • On January 21, 1997, then DAR Secretary Ernesto D. Garilao (Secretary Garilao) issued an Order exempting from CARP only 240.9776 hectares of the 316.0422 hectares previously exempted by Director Dalugdug, and declaring 75.0646 hectares of the property to be covered by CARP.
  • Secretary Garilao opined that, for private agricultural lands to be excluded from CARP, they must already be devoted to livestock, poultry, and swine raising as of June 15, 1988, when the CARL took effect. He found that the Certificates of Ownership of Large Cattle submitted by petitioner showed that only 86 heads of cattle were registered in the name of petitioners president, Misael Vera, Jr., prior to June 15, 1988; 133 were subsequently bought in 1990, while 204 were registered from 1992 to 1995. Secretary Garilao gave more weight to the certificates rather than to the headcount because the same explicitly provide for the number of cattle owned by petitioner as of June 15, 1988.
  • Applying the animalland ratio (1 hectare for grazing for every head of cattle/carabao/horse) and the infrastructureanimal ratio (1.7815 hectares for 21 heads of cattle/carabao/horse, and 0.5126 hectare for 21 heads of hogs) under DAR A.O. No. 9, Secretary Garilao exempted 240.9776 hectares of the property.
  • Petitioner filed a Motion for Reconsideration, however, Secretary Garilao denied petitioners Motion for Reconsideration.
  • Aggrieved, petitioner filed its Memorandum on Appeal before the Office of the President (OP). On February 4, 2000, the OP rendered a decision reinstating Director Dalugdugs Order dated June 27, 1994 and declared the entire 316.0422hectare property exempt from the coverage of CARP.
  • However, on separate motions for reconsideration of the aforesaid decision filed by farmergroups Samahang AnakPawis ng Lagundi (SAPLAG) and Pinugay Farmers, and the Bureau of Agrarian Legal Assistance of DAR, the OP issued a resolution dated September 16, 2002, setting aside its previous decision and a new one entered REINSTATING the Order dated 21 January 1997 of then DAR Secretary Ernesto D. Garilao.
  • On April 29, 2005, the CA found that, based on the documentary evidence presented, the property subject of the application for exclusion had more than satisfied the animal -and and infrastructure-animal ratios under DAR A.O. No. 9. The CA also found that petitioner applied for exclusion long before the effectivity of DAR A.O. No. 9, thus, negating the claim that petitioner merely converted the property for livestock, poultry, and swine raising in order to exclude it from CARP coverage.
  • Meanwhile, six months earlier, or on November 4, 2004, without the knowledge of the CA as the parties did not inform the appellate court then DAR Secretary Rene C. Villa (Secretary Villa) issued DAR Conversion Order No. CON04100016 (Conversion Order), granting petitioners application to convert portions of the 316.0422hectare property from agricultural to residential and golf courses use.
  • On the CAs decision of April 29, 2005, Motions for Reconsideration were filed by farmergroups, namely: the farmers represented by Miguel Espinas (Espinas group), the Pinugay Farmers, and the SAPLAG. The farmergroups all claimed that the CA should have accorded respect to the factual findings of the OP. Moreover, the farmergroups unanimously intimated that petitioner already converted and developed a portion of the property into a leisureresidentialcommercial estate known as the Palo Alto Leisure and Sports Complex (Palo Alto).
  • With the CA now made aware of these developments, particularly Secretary Villas Conversion Order of November 4, 2004, the appellate court had to acknowledge that the property subject of the controversy would now be limited to the remaining 162.7373 hectares. In the same token, the Espinas group prayed that this remaining area be covered by the CARP.
  • CA amended its decision and the 162.7373 hectareagricultural portion is declared covered by CARP. Petitioner filed a Motion for Reconsideration but was denied.


ISSUE: W/N the parcels of land owned by the petitioners can be subjected to CARP.


HELD: YES.
The subject parcels of land were not directly, actually, and exclusively used for pasture.

Indeed, as pointed out by the CA, the instant case does not rest on facts parallel to those of Sutton because, in Sutton, the subject property remained a livestock farm. We even highlighted therein the fact that there has been no change of business interest in the case of respondents.

Petitioners admission that, since 2001, it leased another ranch for its own livestock is fatal to its cause. While petitioner advances a defense that it leased this ranch because the occupants of the subject property harmed its cattle, like the CA, we find it surprising that not even a single police and/or barangay report was filed by petitioner to amplify its indignation over these alleged illegal acts. Moreover, we accord respect to the CAs keen observation that the assailed MARO reports and the Investigating Teams Report do not actually contradict one another, finding that the 43 cows, while owned by petitioner, were actually pastured outside the subject property.














DAR vs SUTTON, G.R. No. 162070 October 19, 2005 - Case Digest






DEPARTMENT OF AGRARIAN REFORM, represented by SECRETARY JOSE MARI B. PONCE (OIC), Petitioner,
vs
DELIA T. SUTTON, ELLA T. SUTTONSOLIMAN and HARRY T. SUTTON, Respondents.
G.R. No. 162070 October 19, 2005


FACTS:
  • The case at bar involves a land in Aroroy, Masbate, inherited by respondents which has been devoted exclusively to cow and calf breeding. On October 26, 1987, pursuant to the then existing agrarian reform program of the government, respondents made a voluntary offer to sell (VOS) their landholdings to petitioner DAR to avail of certain incentives under the law.
  • On June 10, 1988, a new agrarian law, Republic Act (R.A.) No. 6657, also known as the Comprehensive Agrarian Reform Law (CARL) of 1988, took effect. It included in its coverage farm used for raising livestock, poultry and swine.
  • On December 4, 1990, in an en banc decision in the case of Luz Farms v. Secretary of DAR, this Court ruled that lands devoted to livestock and poultryraising are not included in the definition of agricultural land. Hence, we declared as unconstitutional certain provisions of the CARL insofar as they included livestock farms in the coverage of agrarian reform.
  • In view of the Luz Farms ruling, respondents filed with petitioner DAR a formal request to withdraw their VOS as their landholding was devoted exclusively to cattleraising and thus exempted from the coverage of the CARL.
  • On December 21, 1992, the Municipal Agrarian Reform Officer of Aroroy, Masbate, inspected respondents land and found that it was devoted solely to cattleraising and breeding. He recommended to the DAR Secretary that it be exempted from the coverage of the CARL.
  • On April 27, 1993, respondents reiterated to petitioner DAR the withdrawal of their VOS and requested the return of the supporting papers they submitted in connection therewith. Petitioner ignored their request.
  • On December 27, 1993, DAR issued A.O. No. 9, series of 1993, which provided that only portions of private agricultural lands used for the raising of livestock, poultry and swine as of June 15, 1988 shall be excluded from the coverage of the CARL. In determining the area of land to be excluded, the A.O. fixed the following retention limits, viz: 1:1 animalland ratio (i.e., 1 hectare of land per 1 head of animal shall be retained by the landowner), and a ratio of 1.7815 hectares for livestock infrastructure for every 21 heads of cattle shall likewise be excluded from the operations of the CARL.
  • On February 4, 1994, respondents wrote the DAR Secretary and advised him to consider as final and irrevocable the withdrawal of their VOS as, under the Luz Farms doctrine, their entire landholding is exempted from the CARL.
  • On September 14, 1995, then DAR Secretary Ernesto D. Garilao issued an Order partially granting the application of respondents for exemption from the coverage of CARL. Applying the retention limits outlined in the DAR A.O. No. 9, petitioner exempted 1,209 hectares of respondents land for grazing purposes, and a maximum of 102.5635 hectares for infrastructure. Petitioner ordered the rest of respondents landholding to be segregated and placed under Compulsory Acquisition.
  • Respondents moved for reconsideration. They contend that their entire landholding should b exempted as it is devoted exclusively to cattleraising. Their motion was denied.
  • They filed a notice of appeal with the Office of the President. On October 9, 2001, the Office of the President affirmed the impugned Order of petitioner DAR. It ruled that DAR A.O. No. 9, s. 1993, does not run counter to the Luz Farms case as the A.O. Provided the guidelines to determine whether a certain parcel of land is being used for cattleraising. However, the issue on the constitutionality of the assailed A.O. was left for the determination of the courts as the sole arbiters of such issue.
  • On appeal, the Court of Appeals ruled in favor of the respondents. It declared DAR A.O. No. 9, s. 1993, void for being contrary to the intent of the 1987 Constitutional Commission to exclude livestock farms from the land reform program of the government.

ISSUE: W/N DAR A.O. No. 9, series of 1993, which prescribes a maximum retention limit for owners of lands devoted to livestock raising is constitutional.


HELD: NO.
In the case at bar, we find that the impugned A.O. is invalid as it contravenes the Constitution. The A.O. sought to regulate livestock farms by including them in the coverage of agrarian reform and prescribing a maximum retention limit for their ownership. However, the deliberations of the 1987 Constitutional Commission show a clear intent to exclude, inter alia, all lands exclusively devoted to livestock, swine and poultryraising. The Court clarified in the Luz Farms case that livestock, swine and poultryraising are industrial activities and do not fall within the definition of agriculture or agricultural activity. The raising of livestock, swine and poultry is different from crop or tree farming. It is an industrial, not an agricultural, activity. A great portion of the investment in this enterprise is in the form of industrial fixed assets, such as: animal housing structures and facilities, drainage, waterers and blowers, feedmill with grinders, mixers, conveyors, exhausts and generators, extensive warehousing facilities for feeds and other supplies, antipollution equipment like biogas and digester plants augmented by lagoons and concrete ponds, deepwells, elevated water tanks, pumphouses, sprayers, and other technological appurtenances.

Clearly, petitioner DAR has no power to regulate livestock farms which have been exempted by the Constitution from the coverage of agrarian reform. It has exceeded its power in issuing the assailed A.O.

ALITA vs CA , G.R. No. 78517 February 27, 1989 - Case Digest






GABINO ALITA, JESUS JULIAN, JR., JESUS JULIAN, SR., PEDRO RICALDE, VICENTE RICALDE and ROLANDO SALAMAR, petitioners,
vs.
THE HONORABLE COURT OF APPEALS, ENRIQUE M. REYES, PAZ M. REYES and FE M. REYES, respondents.
G.R. No. 78517 February 27, 1989


FACTS:
  • The subject matter of the case consists of two (2) parcels of land, acquired by private respondents' predecessors-in-interest through homestead patent under the provisions of Commonwealth Act No. 141.
  • Private respondents herein are desirous of personally cultivating these lands, but petitioners refuse to vacate, relying on the provisions of P.D. 27 and P.D. 316 and appurtenant regulations issued by the then Ministry of Agrarian Reform (DAR for short), now Department of Agrarian Reform (MAR for short).
  • On June 18, 1981, private respondents (then plaintiffs), instituted a complaint against Hon. Conrado Estrella as then Minister of Agrarian Reform, P.D. Macarambon as Regional Director of MAR Region IX, and herein petitioners (then defendants) for the declaration of P.D. 27 and all other Decrees, Letters of Instructions and General Orders issued in connection therewith as inapplicable to homestead lands.
  • Defendants filed their answer with special and affirmative defenses of July 8, 1981.
  • Subsequently, on July 19, 1982, plaintiffs filed an urgent motion to enjoin the defendants from declaring the lands in litigation under Operation Land Transfer and from being issued land transfer certificates to which the defendants filed their opposition dated August 4, 1982.
  • On November 5, 1982, the then Court of Agrarian Relations 16th Regional District, Branch IV, Pagadian City (now Regional Trial Court, 9th Judicial Region, Branch XVIII) rendered its decision dismissing the said complaint and the motion to enjoin the defendants was denied.
  • On January 4, 1983, plaintiffs moved to reconsider the Order of dismissal, to which defendants filed their opposition on January 10, 1983.
  • Thus, on April 29, 1986, the Regional Trial Court issued the aforequoted decision prompting defendants to move for a reconsideration but the same was denied in its Order dated June 6, 1986.
  • On appeal to the respondent Court of Appeals, the same was sustained.


ISSUE: W/N lands obtained through homestead patent are covered by the Agrarian Reform under P.D. 27.


HELD: NO
We agree with the petitioners in saying that P.D. 27 decreeing the emancipation of tenants from the bondage of the soil and transferring to them ownership of the land they till is a sweeping social legislation, a remedial measure promulgated pursuant to the social justice precepts of the Constitution. However, such contention cannot be invoked to defeat the very purpose of the enactment of the Public Land Act or Commonwealth Act No. 141. Thus,

The Homestead Act has been enacted for the welfare and protection of the poor. The law gives a needy citizen a piece of land where he may build a modest house for himself and family and plant what is necessary for subsistence and for the satisfaction of life's other needs. The right of the citizens to their homes and to the things necessary for their subsistence is as vital as the right to life itself. They have a right to live with a certain degree of comfort as become human beings, and the State which looks after the welfare of the people's happiness is under a duty to safeguard the satisfaction of this vital right. (Patricio v. Bayog, 112 SCRA 45)

In this regard, the Philippine Constitution likewise respects the superiority of the homesteaders' rights over the rights of the tenants guaranteed by the Agrarian Reform statute. In point is Section 6 of Article XIII of the 1987 Philippine Constitution which provides:

Section 6. The State shall apply the principles of agrarian reform or stewardship, whenever applicable in accordance with law, in the disposition or utilization of other natural resources, including lands of public domain under lease or concession suitable to agriculture, subject to prior rights, homestead rights of small settlers, and the rights of indigenous communities to their ancestral lands.

Additionally, it is worthy of note that the newly promulgated Comprehensive Agrarian Reform Law of 1988 or Republic Act No. 6657 likewise contains a proviso supporting the inapplicability of P.D. 27 to lands covered by homestead patents like those of the property in question, reading,

Section 6. Retention Limits. …
... Provided further, That original homestead grantees or their direct compulsory heirs who still own the original homestead at the time of the approval of this Act shall retain the same areas as long as they continue to cultivate said homestead.'


RODRIGUEZ vs SALVADOR, G.R. No. 171972 June 8, 2011 - case digest




LUCIA RODRIGUEZ AND PRUDENCIA RODRIGUEZ, Petitioners,
vs
TERESITA V. SALVADOR, Respondent.
G.R. No. 171972 June 8, 2011


FACTS:
  • On May 22, 2003, respondent Teresita V. Salvador filed a Complaint for Unlawful Detainer, docketed as Civil Case No. 330, against petitioners Lucia (Lucia) and Prudencia Rodriguez, mother and daughter, respectively before the Municipal Trial Court (MTC) of Dalaguete, Cebu. Respondent alleged that she is the absolute owner of a parcel of land covered by Original Certificate of Title (OCT) No. P27140 issued by virtue of Free Patent No. (VII5) 2646 in the name of the Heirs of Cristino Salvador represented by Teresita Salvador; that petitioners acquired possession of the subject land by mere tolerance of her predecessorsininterest; and that despite several verbal and written demands made by her, petitioners refused to vacate the subject land.
  • On July 10, 2003, the preliminary conference was terminated and the parties were ordered to submit their respective position papers together with the affidavits of their witnesses and other evidence to support their respective claims.
  • On September 10, 2003, the MTC promulgated a Decision finding the existence of an agricultural tenancy relationship between the parties, and thereby, dismissing the complaint for lack of jurisdiction.
  • Aggrieved, respondent filed an appeal with the Regiona Trial Court (RTC). On January 12, 2004, the RTC rendered a Decision remanding the case to the MTC for preliminary hearing to determine whether tenancy relationship exists between the parties. Petitioners moved for reconsideration arguing that the purpose of a preliminary hearing was served by the parties submission of their respective position papers and other supporting evidence.
  • On June 23, 2004, the RTC granted the reconsideration and affirmed the MTC Decision dated September 10, 2003. Respondent sought reconsideration but it was denied by the RTC.
  • Thus, respondent filed a Petition for Review with the CA. the CA rendered judgment in favor of respondent. It ruled that no tenancy relationship exists between the parties because petitioners failed to prove that respondent or her predecessorsininterest consented to the tenancy relationship. The CA likewise gave no probative value to the affidavits of petitioners witnesses as it found their statements insufficient to establish petitioners status as agricultural tenants. If at all, the affidavits merely showed that petitioners occupied the subject land with the consent of the original owners. And since petitioners are occupying the subject land by mere tolerance, they are bound by an implied promise to vacate the same upon demand by the respondent. Failing to do so, petitioners are liable to pay damages.


ISSUE:
  • W/N Agricultural tenancy relationship exists between thepetitioners and the respondent.


HELD: NO
Agricultural tenancy exists when all the following requisites are present:
  1. the parties are the landowner and the tenant or agricultural lessee;
  2. the subject matter of the relationship is an agricultural land;
  3. there is consent between the parties to the relationship;
  4. the purpose of the relationship is to bring about agricultural production;
  5. there is personal cultivation on the part of the tenant or agricultural lessee; and
  6. the harvest is shared between landowner and tenant or agricultural lessee.

The statements in the affidavits presented by the petitioners are not sufficient to prove the existence of an agricultural tenancy.

As correctly found by the CA, the element of consent is lacking. Except for the selfserving affidavit of Lucia, no other evidence was submitted to show that respondents predecessorsininterest consented to a tenancy relationship with petitioners. Selfserving
statements, however, will not suffice to prove consent of the landowner; independent evidence is necessary.

Aside from consent, petitioners also failed to prove sharing of harvest. The affidavits of petitioners neighbors declaring that respondent and her predecessorsininterest received their share in the harvest are not sufficient. Petitioners should have presented receipts or any other evidence to show that there was sharing of harvest and that there was an agreed system of sharing between them and the landowners.

As we have often said, mere occupation or cultivation of an agricultural land will not ipso facto make the tiller an agricultural tenant. It is incumbent upon a person who claims to be an agricultural tenant to prove by substantial evidence all the requisites of agricultural tenancy.


Heirs of Daez vs CA, G.R. No. 133507. February 17, 2000 - CASE DIGEST









EUDOSIA DAEZ AND/OR HER HEIRS, REP. BY ADRIANO D. DAEZ, petitioners,
vs.
THE HON. COURT OF APPEALS MACARIO SORIENTES, APOLONIO MEDIANA, ROGELIO MACATULAD and MANUEL UMALI, respondents.
G.R. No. 133507. February 17, 2000

FACTS:
  • Eudosia Daez, now deceased, was the owner of a 4.1685hectare riceland in Barangay Lawa, Meycauayan, Bulacan which was being cultivated by respondents Macario Soriente, Rogelio Macatulad, Apolonio Mediana and Manuel Umali under a system of sharetenancy. The said land was subjected to the Operation Land Transfer (OLT) Program under Presidential Decree (P.D.) No. 27 as amended by Letter of Instruction (LOI) No. 474. Thus, the then Ministry of Agrarian Reform acquired the subject land and issued Certificates of Land Transfer (CLT) on December 9, 1980 to private respondents as beneficiaries.
  • In their Affidavit dated October 2, 1983, Eudosia Daez and her husband, Lope, declared ownership over 41.8064 hectares of agricultural lands located in Meycauayan, Bulacan and fourteen (14) hectares of riceland, sixteen (16) hectares of forestland, ten (10) hectares of "batuhan" and 1.8064 hectares of residential lands in Penaranda, Nueva Ecija. Included in their 41.8064hectare landholding in Bulacan, was the subject 4,1685hectare riceland in Meycauayan.
  • On July 27, 1987, DAR Undersecretary Jose C. Medina issued an Order denying Eudosia Daezs application for exemption upon finding that her subject land is covered under LOI No. 474, petitioner being owner of the aforesaid agricultural lands exceeding seven (7) hectares.
  • On June 29, 1989, Eudosia Daez wrote a letter to DAR Secretary Benjamin T. Leong requesting for reconsideration of Undersecretary Medinas order. But on January 16, 1992, Secretary Leong affirmed the assailed order upon finding private respondents to be bonafide tenants of the subject land.
  • Undaunted, Eudosia Daez brought her case on February 20, 1992 to the Court of Appeals via a petition for certiorari. The Court of Appeals, however, sustained the order of Secretary Leong.
  • Eudosia pursued her petition before this court but we denied it and also denied her motion for reconsideration.
  • On August 6 and 12, 1992, the DAR issued Emancipation Patents (EPs) to private respondents. Thereafter, the Register of Deeds of Bulacan issued the corresponding Transfer Certificates of Title (TCTs).
  • Exemption of the 4.1685 riceland from coverage by P.D. No. 27 having been finally denied her, Eudosia Daez next filed an application for retention of the same riceland, this time under R.A. No. 6657.
  • In an order dated March 22, 1994, DAR Region III OICDirector Eugenio B. Bernardo allowed Eudosia Daez to retain the subject riceland but he denied the application of her eight (8) children to retain three (3) hectares each for their failure to prove actual tillage of the land or direct management thereof as required by law. Aggrieved, they appealed to the DAR.
  • On August 26, 1994, then DAR Secretary Ernesto D. Garilao, set aside the order of Regional Director Bernardo in a Resolution.
  • Eudosia Daez filed a Motion for Reconsideration but it was denied on January 19, 1995.
  • She appealed Secretary Garilaos decision to the Office of the President which ruled in her favor. The dispositive portion of the Decision of then Executive Secretary reads:

"WHEREFORE, the resolution and order appealed from are hereby SET ASIDE and
judgment is rendered authorizing the retention by Eudosia Daez or her heirs of the
4.1685 hectare landholding subject thereof.

SO ORDERED."

  • Aggrieved, private respondents sought from the Court of Appeals, a review of the decision of the Office of the President. On January 28, 1999, the said Decision of the Office of the President was reversed.


ISSUE(S):
  1. W/N the finality of judgment in exemption (PD27) does preclude the subsequent institution of application for retention (RA 6657).
  2. W/N the heirs of Eudosia Daez may exercise their right of retention over the subject 4.1685 riceland.
  3. W/N the land awards made pursuant to the governments agrarian reform program are subject to the exercise by a landowner of his right of retention.


HELD:
  1. NO
Exemption and retention in agrarian reform are two (2) distinct concepts. P.D. No. 27, which implemented the Operation Land Transfer (OLT) Program, covers tenanted rice or corn lands. The requisites for coverage under the OLT program are the following: (1) the land must be devoted to rice or corn crops; and (2) there must be a system of sharecrop or leasetenancy obtaining therein. If either requisite is absent, a landowner may apply for exemption. If either of these requisites is absent, the land is not covered under OLT. Hence, a landowner need not apply for retention where his ownership over the entire landholding is intact and undisturbed.

Thus, on one hand, exemption from coverage of OLT lies if: (1) the land is not devoted to rice or corn crops even if it is tenanted; or (2) the land is untenanted even though it is devoted to rice or corn crops.

On the other hand, the requisites for the exercise by the landowner of his right of retention are the following: (1) the land must be devoted to rice or corn crops; (2) there must be a system of sharecrop or leasetenancy obtaining therein; and (3) the size of the landholding must not exceed twentyfour (24) hectares, or it could be more than twentyfour (24) hectares provided that at least seven (7) hectares thereof are covered lands and more than seven (7) hectares of it consist of "other agricultural lands".

Clearly, then, the requisites for the grant of an application for exemption from coverage of OLT an those for the grant of an application for the exercise of a landowners right of retention, are different.

Hence, it is incorrect to posit that an application for exemption and an application for retention are one and the same thing. Being distinct remedies, finality of judgment in one does not preclude the subsequent institution of the other. There was, thus, no procedural impediment to the application filed by Eudosia Daez for the retention of the subject 4.1865hectare riceland, even after her appeal for exemption of the same land was denied in a decision that became final and executory.


  1. YES.
The right of retention is a constitutionally guaranteed right, which is subject to qualification by the legislature. It serves to mitigate the effects of compulsory land acquisition by balancing the rights of the landowner and the tenant and by implementing the doctrine that social justice was not meant to perpetrate an injustice against the landowner.

In the landmark case of Association of Small Landowners in the Phil., Inc. v. Secretary of Agrarian Reform, we held that landowners who have not yet exercised their retention rights under P.D. No. 27 are entitled to the new retention rights under R.A. No. 6657.

Without doubt, this right of retention may be exercised over tenanted land despite even the issuance of Certificate of Land Transfer (CLT) to farmerbeneficiaries. What must be protected, however, is the right of the tenants to opt to either stay on the land chosen to be retained by the landowner or be a beneficiary in another agricultural land with similar or comparable features.


  1. YES.
The issuance of EPs or CLOAs to beneficiaries does not absolutely bar the landowner from retaining the area covered thereby. Under Administrative Order No. 2, series of 1994, an EP or CLOA may be cancelled if the land covered is later found to be part of the landowners retained area.

A certificate of title accumulates in one document a comprehensive statement of the status of the fee held by the owner of a parcel of land. As such, it is a mere evidence of ownership and it does not constitute the title to the land itself. It cannot confer title where no title has been acquired by any of the means provided by law.

In the instant case, the CLTs of private respondents over the subject 4.1685hectare riceland were issued without Eudosia Daez having been accorded her right of choice as to what to retain among her landholdings. The transfer certificates of title thus issued on the basis of those CLTs cannot operate to defeat the right of the heirs of deceased Eudosia Daez to retain the said 4.1685 hectares of riceland.