Chavez v Public Estate Authority July 9, 2002 Carpio, J. FACTS: Nov. 20, 1973- Governmen !rou"! !

!e Commi##ioner o$ %u&li' (i"!)ay# #i"ne* a 'on ra' )i ! !e Con# ru' ion an* +evelopmen Corpora ion o$ !e %!ilippine# ,C+C%- o re'laim 'er ain $ore#!ore an* o$$#!ore area# o$ .anila /ay. T!e 'on ra' al#o in'lu*e* !e 'on# ru' ion o$ %!a#e# 0 an* 00 o$ !e .anila-Cavi e Coa# al 1oa*. C+C% o&li"a e* i #el$ o 'arry ou all !e )or2# in 'on#i*era ion o$ $i$ y per'en o$ !e o al re'laime* lan*. Fe&. 3, 1977- %re#. .ar'o# i##ue* %+ 1043 'rea in" %5A ,%u&li' 5# a e6# Au !ori y-. %5A6# a#2 i# o re'laim lan*, in'lu*in" $ore#!ore an* #u&mer"e* area# an* o *evelop, improve,a '7uire, lea#e an* #ell any an* all 2in*# o$ lan*#. o -%re#. .ar'o# al#o i##ue* %+ 1048 ran#$errin" o %5A lan*# re'laime* in !e $ore#!ore an* o$$#!ore o$ .anila /ay un*er .anila-Cavi e Coa# al 1oa* an* 1e'lama ion %ro9e' ,.CC11%+e'. 29, 1941- %re# .ar'o# i##ue* a memo *ire' in" %5A o amen* 'on ra' )i ! C+C% #o !a :all $u ure )or2# in .CC11% #!all &e $un*e* an* o)ne* &y %5A; o %5A an* C+C% e<e'u e* a .emoran*um o$ A"reemen in +e'. 29. 1941 # a in" !a ,iC+C% #!all un*er a2e all re'lama ion, 'on# ru' ion, an* #u'! o !er )or2# in !e .CC11% a# may &e a"ree* upon &y !e par ie#, o &e pai* a''or*in" o pro"re## o$ )or2# on a uni pri'e=lump #um &a#i# $or i em# o$ )or2 o &e a"ree* upon, #u&9e' o pri'e e#'ala ion, re en ion an* o !er erm# an* 'on*i ion# provi*e* $or in %re#i*en ial +e'ree No. 1893. All !e $inan'in" re7uire* $or #u'! )or2# #!all &e provi*e* &y %5A. ,ii-. . . C+C% #!all "ive up all i # *evelopmen ri"! # an* !ere&y a"ree# o 'e*e an* ran#$er in $avor o$ %5A, all o$ !e ri"! #, i le, in ere# an* par i'ipa ion o$ C+C% in an* o all !e area# o$ lan* re'laime* &y C+C% in !e .CC11% a# o$ +e'em&er 30, 1941 )!i'! !ave no ye &een #ol*, ran#$erre* or o !er)i#e *i#po#e* o$ &y C+C% a# o$ #ai* *a e, )!i'! area# 'on#i# o$ appro<ima ely Nine y-Nine T!ou#an* Four (un*re* Seven y T!ree ,99,373- #7uare me er# in !e Finan'ial Cen er Area 'overe* &y lan* ple*"e No. 8 an* appro<ima ely T!ree .illion T!ree (un*re* 5i"! y T)o T!ou#an* 5i"! (un*re* 5i"! y 5i"! ,3,342,444- #7uare me er# o$ re'laime* area# a varyin" eleva ion# a&ove .ean >o) ?a er >evel lo'a e* ou #i*e !e Finan'ial Cen er Area an* !e Fir# Nei"!&or!oo* @ni .A Jan. 19, 1944- %re#. A7uino i##ue* Spe'ial %a en No. 3817 "ran in" an* ran#$errin" o %5A : !e par'el# o$ lan* #o re'laime* un*er !e .CC11% Apr 9, 1944- 1e"i# er o$ +ee*# o$ %arana7ue i##ue* i le# in !e name o$ %5A 'overin" !e 3 re'laime* i#lan*# 2no)n a# !e :Free*om 0#lan*#; a !e #ou !ern pro ion o$ !e .anilaCavi e Coa# al 1oa* Apr. 28, 1998- %5A en ere* in o a Join Ben ure A"reemen ,JBA- )i ! A.A10 o *evelop !e Free*om 0#lan*#. JBA )a# en ere* in o !rou"! ne"o ia ion )i !ou pu&li' &i**in". T!e Sena e Commi ee on Governmen Corpora ion# an* %u&li' 5n erpri#e#, an* !e Commi ee on A''oun a&ili y o$ %u&li' C$$i'er# an* 0nve# i"a ion#, 'on*u' e* a 9oin inve# i"a ion. Amon" !e 'on'lu#ion are: !a !e re'laime* lan*# %5A #ee2# o ran#$er o A.A10 un*er !e JBA are lan*# o$ !e pu&li' *omain )!i'! !e "overnmen !a# no 'la##i$ie* a# aliena&le lan*# an* !ere$ore %5A 'anno aliena e !e#e lan*#, !e 'er i$i'a e# o$ !e i le 'overin" !e Free*om 0#lan*# are !u# voi*, an* !e JBA i #el$ i# ille"al.

+e'. 8, 1997- %re#. 1amo# i##ue* %re#. A*min. Cr*er No. 3D8, 'rea in" a >e"al Ta#2 For'e o 'on*u' a # u*y on !e le"ali y o$ !e JBA. T!e Ta#2 For'e up!el* !e le"ali y o$ !e JBA, 'on rary o !e 'on'lu#ion# o$ !e Sena e Commi ee#. Apr. 3 an* 8, 1994- %!ilippine +aily 0n7uirer an* To*ay pu&li#!e* repor # !a !ere )ere on-"oin" rene"o ia ion# &e )een %5A an* A.A10 un*er an or*er i##ue* &y !en %re#i*en Fi*el B. 1amo#. A''or*in" o !e#e repor #, %5A +ire' or Ne# or Eala), %5A C!airman Ar#enio Fulo an* re ire* Navy C$$i'er Ser"io CruG 'ompo#e* !e ne"o ia in" panel o$ %5A. Apr. 13, 1994- An onio Hulue a $ile* %e . For pro!i&i ion )=appli'a ion $or i##uan'e o$ a T1C an* %reliminary 0n9un' ion #ee2in" o nullyi$y JBA, SC *i#mi##e* !e pe i ion $or :un)arran e* *i#re"ar* o$ 9u*i'ial !ierar'!y, )=o pre9u*i'e o re$illin" o$ 'a#e &e$ore !e proper 'our ; Apr 27, 1994- %e i ioner a# a<payer $ile* !e in# an pe i ion $or man*amu# )i ! prayer $or !e i##uan'e o$ a )ri o$ preliminary in9un' ion an* T1C. %e i ioner #ay# "ov # an*# o lo#e &illion# in !e #ale &y %5A o$ !e re'laime* lan*# o A.A10. %e i ioner pray# !a %5A pu&li'ly *i#'lo#e !e erm# o$ any rene"o ia ion o$ !e JBA. %e i ioner al#o a##ail# #ale o A.A10 o$ lan*# o$ !e pu&li' *omain# a# viola ion o$ Se' 3, Ar I00 o$ !e Con# i pro!i&i in" !e #ale o$ aliena&le lan*# o$ !e pu&li' *omain o priva e 'orpora ion#. %e i ioner a##er # !a !e #ee2# o en9oin !e lo## o$ &illion o$ pe#o# in proper ie# o$ !e S a e !a are o$ pu&li' *ominion.

0SS@5S=(5>+: ?=N relie$# praye* $or are moo an* a'a*emi'. NC, &e'au#e even i$ !e Amen*e* JBA &y %5A an* A.A10 )ere #i"ne* an* approve* &y !e %re#i*en , !ey )oul* # ill !ave o implemen !e Amen*e* JBA. ?=N pe i ion meri # *i#mi##al $or $ailin" o o&#erve prin'iple "overnin" !ierar'!y o$ 'our #. NC, &e'au#e in# an 'a#e i# a pe i ion $or man*amu# an* $all# un*er ori"inal 9uri#*i' ion o$ !e Cour . ?=N pe i ion meri # *i#mi##al $or non-e<!au# ion o$ a*mini# ra ive reme*ie#. NC, &e'au#e !e prin'iple *oe# no apply in !i# 'a#e. ?=N !e pe i ioner !a# lo'u# # an*i o &rin" !i# #ui . F5S, &e'au#e !i# a<payer6# #ui #ee2# o 'ompel %5A o 'omply )=i # 'on# i u ional *u ie#. ,2 'on# i i##ue# involve* !ere: ri"! o$ 'i iGen# o in$orma ion, an* appli'a ion o$ a 'on# i u ional provi#ion in en*e* o in#ure e7ui a&le *i# ri&u ion o$ aliena&le lan*# o$ !e pu&li' *omain amon" Filipino 'i iGen#- .oreover, !e#e i##ue# are o$ ran#'en*en al impor an'e. ?=N 'on# i u ional ri"! o in$orma ion in'lu*e# o$$i'ial in$orma ion on on-"oin" ne"o ia ion# &e$ore a $inal a"reemen . F5S, o !er)i#e, i may &e oo la e $or !e pu&li' o e<po#e !e *e$e' # o$ a 'on ra' . MAIN ISSUE: W/N stipulations in the Amen e !"A #or the trans#er to AMA$I o# lan s% reclaime or to be reclaime violate the Constitution& 'ES% Amen e !"A is null an voi ab initio& o 0 viola e# Se' 2 an* 3, Ar i'le I00 o$ !e 1947 Con# . @n*er NCC 1309 'on ra' # )!o#e :o&9e' or purpo#e i# 'on rary o la); or )!o#e :o&9e' i# ou #i*e !e 'ommer'e o$ men; are :ine<i# en an* voi* $rom !e &e"innin".; o Common)eal ! A' 131 ,%u&li' >an* A' - empo)er# %re#. o 'la##i$y lan*# o$ pu&li' *omain in o :alieana&le or *i#po#a&le.; T!e %re#i*en 'an *e'lare )!a lan*# are open o *i#po#i ion or 'on'e##ion. T!e "ov6 'an *e'lare open $or *i#po#i ion or

'on'e##ion only lan*# !a are :o$$i'ially *elimi e* an* 'la##i$ie*.; Since then an until no(% the only (ay the )ovt can sell to private parties )overnment reclaime an marshy isposable lan s o# the public omain is #or the le)islature to pass a la( authorizin) such sale& Se'. 84-D1 o$ Common)eal ! A' 131 Se'. 84. Any ra' o$ lan* o$ !e pu&li' *omain )!i'!, &ein" nei !er im&er nor mineral lan*, i# in en*e* o &e u#e* $or re#i*en ial purpo#e# or $or 'ommer'ial, in*u# rial, or o !er pro*u' ive purpo#e# o !er !an a"ri'ul ural, an* i# open o *i#po#i ion or 'on'e##ion, #!all &e *i#po#e* o$ un*er !e provi#ion# o$ !i# '!ap er an* no o !er)i#e. Se'. 89. T!e lan*# *i#po#a&le un*er !i# i le #!all &e 'la##i$ie* a# $ollo)#: o ,a>an*# re'laime* &y !e Governmen &y *re*"in", $illin", or o !er mean#J o ,&Fore#!oreJ o ,'.ar#!y lan*# or lan*# 'overe* )i ! )a er &or*erin" upon !e #!ore# or &an2# o$ navi"a&le la2e# river#J o ,*>an*# no in'lu*e* in any o$ !e $ore"oin" 'la##e#. Se'. D0. Any ra' o$ lan* 'ompri#e* un*er !i# i le may &e lea#e* or #ol*, a# !e 'a#e may &e, o any per#on, 'orpora ion, or a##o'ia ion au !oriGe* o pur'!a#e or lea#e pu&li' lan*# $or a"ri'ul ural purpo#e#. . . but the lan so )rante % onate or trans#erre to a province% municipality% or branch or sub ivision o# the *overnment shall not be alienate % encumbere or other(ise ispose o# in a manner a##ectin) its title% e+cept (hen authorize by Con)ress& Se'. D1. T!e lan*# 'ompri#e* in 'la##e# ,a-, ,&-, an* ,'- o$ #e' ion $i$ y-nine #!all &e *i#po#e* o$ o priva e par ie# &y lea#e only an* no o !er)i#e, a# #oon a# !e %re#i*en , upon re'ommen*a ion &y !e Se're ary o$ A"ri'ul ure, #!all *e'lare !a !e #ame are no ne'e##ary $or !e pu&li' #ervi'e an* are open o *i#po#i ion un*er !i# '!ap er. T!e lan*# in'lu*e* in 'la## ,*- may &e *i#po#e* o$ &y #ale or lea#e un*er !e provi#ion# o$ !i# A' . o Gov6 mu# $ormally *e'lare !a !e proper y o$ pu&li' *ominion i# no lon"er nee*e* $or pu&li' u#e or pu&li' #ervi'e &e$ore !e #ame 'oul* &e 'la##i$ie* a# pa rimonial proper y o$ !e S a e. CC Ar . 320. T!e $ollo)in" !in"# are proper y o$ pu&li' *ominion: ,1- T!o#e in en*e* $or pu&li' u#e, #u'! a# roa*#, 'anal#, river#, orren #, por # an* &ri*"e# 'on# ru' e* &y !e S a e, &an2#, #!ore#, roa*# ea*#, an* o !er# o$ #imilar '!ara' erJ ,2- T!o#e )!i'! &elon" o !e S a e, )i !ou &ein" $or pu&li' u#e, an* are in en*e* $or #ome pu&li' #ervi'e or $or !e *evelopmen o$ !e na ional )eal !. CC Ar . 322. %roper y o$ pu&li' *ominion, )!en no lon"er in en*e* $or pu&li' u#e or $or pu&li' #ervi'e, #!all $orm par o$ !e pa rimonial proper y o$ !e S a e. o 1947 Con# i, li2e !e 1938 an* 1973, a*op e* !e 1e"alian *o' rine, an* *e'lare# !a all na ural re#our'e# are :o)ne* &y !e S a e.; 1e"alian *o' rine: !ol*# !a !e # a e o)n# all lan*# an* )a er# o$ !e pu&li' *omain. ,647 Con# - Se' ion 2. All lan*# o$ !e pu&li' *omain, )a er#, mineral#, 'oal, pe roleum an* o !er mineral oil#, all $or'e# o$ po en ial ener"y, $i#!erie#, $ore# # or im&er, )il*li$e, $lora an* $auna, an* o !er na ural re#our'e# are o)ne* &y !e S a e. ?i ! !e e<'ep ion o$ a"ri'ul ural lan*#, all o !er na ural re#our'e# #!all no &e aliena e*. T!e e<plora ion, *evelopmen ,

o o

an* u iliGa ion o$ na ural re#our'e# #!all &e un*er !e $ull 'on rol an* #upervi#ion o$ !e S a e. . . ,647 Con# - Se' ion 3. >an*# o$ !e pu&li' *omain are 'la##i$ie* in o a"ri'ul ural, $ore# or im&er, mineral lan*#, an* na ional .par2#. A"ri'ul ural lan*# o$ !e pu&li' *omain may &e $ur !er 'la##i$ie* &y la) a''or*in" o !e u#e# )!i'! !ey may &e *evo e*. Aliena&le lan*# o$ !e pu&li' *omain #!all &e limi e* o a"ri'ul ural lan*#. %riva e 'orpora ion# or a##o'ia ion# may no !ol* #u'! aliena&le lan*# o$ !e pu&li' *omain e<'ep &y lea#e, $or a perio* no e<'ee*in" )en y-$ive year#, rene)a&le $or no more !an )en y-$ive year#, an* no o e<'ee* one !ou#an* !e' are# in area. Ci iGen# o$ !e %!ilippine# may lea#e no more !an $ive !un*re* !e' are#, or a'7uire no more !an )elve !e' are# !ereo$ &y pur'!a#e, !ome# ea*, or "ran . Ta2in" in o a''oun !e re7uiremen # o$ 'on#erva ion, e'olo"y, an* *evelopmen , an* #u&9e' o !e re7uiremen # o$ a"rarian re$orm, !e Con"re## #!all *e ermine, &y la), !e #iGe o$ lan*# o$ !e pu&li' *omain )!i'! may &e a'7uire*, *evelope*, !el*, or lea#e* an* !e 'on*i ion# !ere$or. >i2e !e 673 Con# i, 647 Con# i only allo)# priva e 'orpora ion# o !ol* aliena&le lan*# o$ !e pu&li' *omain only !rou"! lea#e. 1a ionale &e!in* !e &an: o # ren" !en !e 'on# i u ional limi a ion on in*ivi*ual# $rom a'7uirin" more !an !e allo)e* area o$ aliena&le lan*# o$ !e pu&li' *omain. ,hreshol Issue accor in) to SC: W/N AMA$I% a private corporation% can ac-uire an o(n un er the Amen e !"A ./0&1 hectares o# reclaime #oreshore an submer)e areas in Manila 2ay in vie( o# Sec 3 4 . o# Article 53 o# the 5670 Const& %5A 'on'e*e# !a lan*# in 7ue# ion are aliena&le or *i#po#a&le lan*# o$ !e pu&li' *omain. .ere re'lama ion o$ !e 7ue# ione* area# *oe# no 'onver !e#e re#our'e# in o aliena&le or *i#po#a&le lan*#, &e'au#e !ere mu# &e a la) or pre#i*en ial pro'lama ion o$$i'ially 'la##i$yin" !e#e a# aliena&le or *i#po#a&le. T!e#e lan*# al#o 'anno &e 'la##i$ie* a# aliena&le or *i#po#a&le i$ !e la) !a# re#erve* !em $or #ome pu&li' or 7ua#i-pu&li' u#e. %+ 1048 an* %re#i*en A7uino6# i##uan'e o$ a #pe'ial pa en 'overin" Free*om 0#lan*# 'la##i$ie# Free*om 0#lan*# a# aliena&le or *i#po#a&le lan*# o$ pu&li' *omain, (C?5B51, Amen*e* JBA 'over# no only Free*om 0#lan*# &u al#o a**i ional 892.18 !e' are# )!i'! are # ill #u&mer"e* an* $ormin" par o$ .anila /ay, an* !ere i# no le"i#la ive or %re#i*en ial a' 'la##i$yin" !e#e area# a# aliena&le or *i#po#a&le lan*# o$ !e pu&li' *omain open o *i#po#i ion. A&#en )o o$$i'ial a' # ,1- a 'la##i$i'a ion !a !e#e lan*# are aliena&le or *i#po#a&le an* open o *i#po#i ion an* ,2- a *e'lara ion !a !e#e lan*# are no nee*e* $or pu&li' #ervi'e, !e lan*# re'laime* remain inaliena&le lan*# o$ !e pu&li' *omain. T!ere i# no e<pre## au !ori y un*er ei !er %+ 1048 or 50 828 $or %5A o #ell i # re'laime* lan*#. %+ 1048 merely ran#$erre* :o)ner#!ip an* a*mini# ra ion; o$ lan*# re'laime* )!ile 5C 828 *e'lare* !a lan*# re'laime* &y %5A #!all &elon" o or &e o)ne* &y %5A, an* !a %5A #!oul* *i#po#e o$ re'laime* lan*# :in a''or*an'e )= !e provi#ion# o$ %+ 1043; (o)ever, %5A may #ell o priva e par ie# i # pa rimonial proper ie# in a''or*an'e )=i # '!ar er $ree $rom 'on# i u ional limi a ion#. T!e &an on priva e 'orpora ion# $rom a'7uirin" aliena&le lan*# o$ pu&li' *omain *oe# no apply o !e #ale o$ %5A6# pa rimonial lan*#. %5A )oul* al#o !ave o 'on*u' a pu&li' au' ion a##umin" !a i # re'laime* lan*# are 'la##i$ie* a# aliena&le=*i#po#a&le. 0n 'omplian'e )i ! CA No. 131 #e' ion# D3 an* D7 re7uirin" pu&li' au' ion in !e a&#en'e o$ a la) e<emp in" %5A $rom !ol*in" #u'!.

SUMMARY: 1. The 157.84 hectares of reclaimed lands comprising the reedom !slands" no# co$ered %& certificates of title in the name of '(A" are aliena%le lands of the p)%lic domain. '(A ma& lease these lands to pri$ate corporations %)t ma& not sell or transfer o#nership of these lands to pri$ate corporations. '(A ma& onl& sell these lands to 'hilippine citi*ens" s)%+ect to the o#nership limitations in the 1,87 -onstit)tion and e.isting la#s. /. The 5,/.15 hectares of s)%merged areas of Manila 0a& remain inaliena%le nat)ral reso)rces of the p)%lic domain )ntil classified as aliena%le or disposa%le lands open to disposition and declared no longer needed for p)%lic ser$ice. The go$ernment can ma1e s)ch classification and declaration onl& after '(A has reclaimed these s)%merged areas. 2nl& then can these lands 3)alif& as agric)lt)ral lands of the p)%lic domain" #hich are the onl& nat)ral reso)rces the go$ernment can alienate. !n their present state" the 5,/.15 hectares of s)%merged areas are inaliena%le and o)tside the commerce of man. 4. Since the Amended 56A see1s to transfer to AMAR!" a pri$ate corporation" o#nership of 77.44 hectares 117 of the reedom !slands" s)ch transfer is $oid for %eing contrar& to Section 4" Article 8!! of the 1,87 -onstit)tion #hich prohi%its pri$ate corporations from ac3)iring an& 1ind of aliena%le land of the p)%lic domain. 4. Since the Amended 56A also see1s to transfer to AMAR! o#nership of /,7.159 hectares 111 of still s)%merged areas of Manila 0a&" s)ch transfer is $oid for %eing contrar& to Section /" Article 8!! of the 1,87 -onstit)tion #hich prohi%its the alienation of nat)ral reso)rces other than agric)lt)ral lands of the p)%lic domain. '(A ma& reclaim these s)%merged areas. Thereafter" the go$ernment can classif& the reclaimed lands as aliena%le or disposa%le" and f)rther declare them no longer needed for p)%lic ser$ice. Still" the transfer of s)ch reclaimed aliena%le lands of the p)%lic domain to AMAR! #ill %e $oid in $ie# of Section 4" Article 8!! of the 1,87 -onstit)tion #hich prohi%its pri$ate corporations from ac3)iring an& 1ind of aliena%le land of the p)%lic domain. -learl& the Amended 56A $iolates glaringl& Sections / and 4" Article 8!! of the 1,87 -onstit)tion. )nder Article 147, 11/ of the -i$il -ode" contracts #hose :o%+ect or p)rpose is contrar& to la#": or #hose :o%+ect is o)tside the commerce of men": are :ine.istent and $oid from the %eginning.: the -o)rt m)st perform its d)t& to defend and )phold the -onstit)tion "and therefore declares the Amended 56A n)ll and $oid a% initio.