Republic of the Philippines SUPREME COURT Manila SECOND DIVISION G.R. No. 1 !"#!

$anua%& #'( #""' )UIS *. M+NESE( +NTONI+ E))+( ,EIRS O- ROS+RIO M. ORDO.E/( %ep%esente0 b& CES+R ORDO.E/( SESIN+NDO PINED+ an0 +UROR+ C+STRO( Petitione%s( 1s. SPOUSES DIOSCORO VE)+SCO an0 G)ICERI+ SU)IT( MI)DRED C,RISTINE ). -)ORES T+NTOCO an0 S2)VI+ ). -)ORES( Respon0ents. DECISION 3UISUM*ING( $.4 -o% %e1ie5 on ce%tio%a%i a%e the Decision1 0ate0 +p%il #6( #""! an0 the Resolution# 0ate0 $une ##( #""! of the Cou%t of +ppeals in C+7G.R. CV No. 6'8!. The appellate cou%t ha0 affi%9e0 the O%0e%8 0ate0 $une 1:( #""" of the Re;ional T%ial Cou%t <RTC= of )ucena Cit&( *%anch :'( in Ci1il Case No. ''71#'( 0is9issin; the petitione%s> co9plaint fo% annul9ent of title an0 0a9a;es a;ainst the %espon0ents. The sub?ect 9atte% of the cont%o1e%s& is the alle;e0 fo%esho%e lan0 5ith an a%ea of about 6:(:#1 s@ua%e 9ete%s( f%ontin; Ta&abas *a& in Guis;uis( Sa%ia&a( 3ueAon.! On Octobe% 18( 1'B1( %espon0ent Diosco%o Velasco 5as issue0 O%i;inal Ce%tificate of Title No. P71 B68:co1e%in; sai0 p%ope%t& b& the Re;iste% of Dee0s of 3ueAon P%o1ince( base0 on ,o9estea0 Patent No. 1888"". On Ma%ch ##( 1'BB( Velasco sol0 the p%ope%t& to %espon0ent S&l1ia -lo%es( an0 T%ansfe% Ce%tificate of Title <TCT= No. T71 "'#8 5as issue0 in he% na9e. On $anua%& !( 1'61( the p%ope%t& 5as sol0 b& -lo%es to Mil0%e0 Ch%istine -lo%es7Tantoco an0 TCT No. T71BBB8:B 5as issue0 in the latte%>s na9e. )ate%( the p%ope%t& 5as 0i1i0e0 into se1en lots an0 TCT Nos. T71BBBBB( T71BBBB6( T71BBBB'( T7 1BBB6"( T71BBB61( T71BBB6#( an0 T71BBB68 5e%e issue0 in the na9e of Mil0%e0 Ch%istine -lo%es7Tantoco. On $anua%& 16( 1''#( the lots co1e%e0 b& TCT Nos. T71BBB6"6 an0 T71BBB61' 5e%e sol0 bacC to -lo%es such that TCT No. T7#B611#1" an0 TCT No. #B611"11 5e%e issue0 in he% na9e. +0?acent an0 conti;uous to the alle;e0 fo%esho%e lan0 is the a;%icultu%al lan0 o5ne0 b& petitione%s. On +u;ust 81( 1'''( the petitione%s file0 a Co9plaint1# fo% +nnul9ent of Title an0 Da9a;es a;ainst %espon0ents befo%e the RTC of )ucena Cit&. The& alle;e0 that the issuance of the ho9estea0 patent an0 the se%ies of t%ansfe%s in1ol1in; the sa9e p%ope%t& 5e%e null an0 1oi0. The& fu%the% alle;e0 that the& applie0 fo% lease of the fo%esho%e lan0 an0 the ;o1e%n9ent ha0 app%o1e0 in thei% fa1o% -o%esho%e( Reclai9e0 )an0 o% Miscellaneous )ease +pplication. Petitione%s clai9e0 that the& 5e%e in open( continuous( eDclusi1e an0 noto%ious possession an0 use of sai0 fo%esho%e lan0 since 1' 1. The& state0 that the& ha0 int%o0uce0 i9p%o1e9ents the%eon an0 plante0 coconut see0lin;s <5hich ha0 ;%o5n up into coconut t%ees= as 5ell as othe% f%uit7bea%in; t%ees an0 plants. The& a00e0 that the& ha0 sublease0 the lan0 to se1e%al tenants. Petitione%s a1e%%e0 that Diosco%o Velasco 5as not @ualifie0 to beco9e a ;%antee of a ho9estea0 patent since he ne1e% occupie0 an& po%tion no% int%o0uce0 an& i9p%o1e9ents on the lan0. The& clai9e0 that Velasco 5as issue0 a ho9estea0 patent because he

co99itte0 f%au0( 9is%ep%esentation( an0 falsification in conni1ance 5ith e9plo&ees of the *u%eau of )an0s. The& a%;ue0 that the sale bet5een Velasco an0 -lo%es 5as in1ali0 because it 5as not app%o1e0 b& the Sec%eta%& of +;%icultu%e an0 Natu%al Resou%ces as %e@ui%e0 un0e% Co99on5ealth +ct No. 1!1( othe%5ise Cno5n as EThe Public )an0 +ct.E18 ,ence( the& clai9e0 that the sale b& -lo%es to Tantoco 5as liCe5ise in1ali0. On Dece9be% #( 1'''( %espon0ents 9o1e0 to 0is9iss1! the co9plaint on the follo5in; ;%oun0s4 <1= petitione%s 0o not ha1e the le;al pe%sonalit& to file the co9plaint since the p%ope%t& fo%9s pa%t of the public 0o9ain an0 onl& the Solicito% Gene%al coul0 b%in; an action fo% %e1e%sion o% an& action 5hich 9a& ha1e the effect of cancelin; a f%ee patent an0 the co%%espon0in; ce%tificate of title issue0 on the basis of the patentF <#= the sale of the p%ope%t& b& Velasco to -lo%es is 1ali0 e1en 5ithout app%o1al of the Sec%eta%& of +;%icultu%e an0 Natu%al Resou%ces as the %e@ui%e0 app%o1al 9a& be obtaine0 afte% the sale ha0 been consu99ate0F <8= the ce%tificate of title issue0 to Velasco can no lon;e% be %e1ie5e0 on the ;%oun0 of f%au0 since a ho9estea0 patent %e;iste%e0 in confo%9it& 5ith the p%o1isions of +ct No. !' 1: pa%taCes of the natu%e of a ce%tificate issue0 in a ?u0icial p%ocee0in; an0 beco9es in0efeasible an0 incont%o1e%tible upon the eDpi%ation of one &ea% f%o9 its issuanceF an0 <!= petitione%s> action is ba%%e0 b& laches since fo% al9ost #6 &ea%s( the& faile0 to asse%t thei% alle;e0 %i;ht o1e% sai0 p%ope%t&. On $une 1:( #"""( the RTC ;%ante0 the Motion to Dis9iss an0 %ule0 that petitione%s 0o not ha1e the le;al pe%sonalit& to file the co9plaint. It hel0 that the ;o1e%n9ent( not petitione%s( is the %eal pa%t& in inte%est an0( the%efo%e( onl& the Solicito% Gene%al 9a& b%in; the action in cou%t. The 0ispositi1e po%tion of the RTC>s O%0e% states4 G,ERE-ORE( the instant Motion is ;%ante0 an0 the plaintiffsH>I co9plaint 0is9isse0. SO ORDERED.1 The Cou%t of +ppeals affi%9e0 the RTC>s O%0e%( 0isposin; as follo5s4 G,ERE-ORE( p%e9ises consi0e%e0( the appeal is DISMISSED fo% lacC of 9e%it. The O%0e% 0ate0 $une 1:( #""" of the Re;ional T%ial Cou%t <RTC=( *%anch :'( )ucena Cit& 0is9issin; plaintiffs7appellants> co9plaint fo% annul9ent of title 5ith 0a9a;es is +--IRMED an0 UP,E)D. SO ORDERED.1B ,ence( this petition. Petitione%s %aise the follo5in; issue fo% ou% %esolution4 HG,ET,ER OR NOTI T,E COURT O- +PPE+)S ERRED IN DISMISSING T,E +PPE+) +ND IN +--IRMING +ND UP,O)DING T,E ORDER O- DISMISS+) OT,E REGION+) TRI+) COURT O- )UCEN+( *R+NC, :' T,+T T,E PETITIONERS DO NOT ,+VE T,E )EG+) PERSON+)IT2 TO INSTITUTE T,E COMP)+INT -OR C+NCE))+TION O- OCT NO. P71 B6' ISSUED PURSU+NT TO ,OMESTE+D P+TENT NO. 1888"" IN T,E N+ME O- DIOSCORO VE)+SCO +ND T,E TR+NS-ER CERTI-IC+TES O- TIT)ES SU*SE3UENT)2 ISSUED IN -+VOR O- SH2I)VI+ ). -)ORES +ND MI)DRED C,RISTINE -)ORES7 T+NTOCO.16 State0 si9pl&( the sole issue in this case is 5hethe% o% not petitione%s a%e %eal pa%ties in inte%est 5ith autho%it& to file a co9plaint fo% annul9ent of title of fo%esho%e lan0. Petitione%s conce0e that un0e% Section 1"1 of Co99on5ealth +ct No. 1!1(1' onl& the Solicito% Gene%al o% the office% actin; in his stea0 9a& institute all actions fo% %e1e%sion in the p%ope% cou%ts. ,o5e1e%( the& in1oCe the p%inciple of e@uit&( a%;uin; that e@uit& an0

social ?ustice 0e9an0 that the& be 0ee9e0 %eal pa%ties in inte%est an0 ;i1en a %i;ht to p%esent e1i0ence sho5in; that the lan0 titles of %espon0ents a%e 1oi0.#" Respon0ents( on the othe% han0( %eite%ate that petitione%s a%e not %eal pa%ties in inte%est because the& 0o not %ep%esent the State.#1 +fte% 0ue consi0e%ation of the sub9issions an0 a%;u9ents of the pa%ties( 5e a%e in a;%ee9ent that the instant petition lacCs 9e%it. Section #( Rule 8 of the 1''B Rules of Ci1il P%oce0u%e p%o1i0es4 SEC. #. Pa%ties in inte%est. 7 + %eal pa%t& in inte%est is the pa%t& 5ho stan0s to be benefite0 o% in?u%e0 b& the ?u0;9ent in the suit( o% the pa%t& entitle0 to the a1ails of the suit. Unless othe%5ise autho%iAe0 b& la5 o% these Rules( e1e%& action 9ust be p%osecute0 o% 0efen0e0 in the na9e of the %eal pa%t& in inte%est.<E9phasis supplie0.= It is a09itte0 b& both pa%ties that the sub?ect 9atte% of cont%o1e%s& is fo%esho%e lan0( 5hich is 0efine0 as that st%ip of lan0 that lies bet5een the hi;h an0 lo5 5ate% 9a%Cs an0 is alte%nati1el& 5et an0 0%& acco%0in; to the flo5 of the ti0es. It is that pa%t of the lan0 a0?acent to the sea( 5hich is alte%natel& co1e%e0 an0 left 0%& b& the o%0ina%& flo5 of ti0es. It is pa%t of the alienable lan0 of the public 0o9ain an0 9a& be 0ispose0 of onl& b& lease an0 not othe%5ise. -o%esho%e lan0 %e9ains pa%t of the public 0o9ain an0 is outsi0e the co99e%ce of 9an. It is not capable of p%i1ate app%op%iation.## Section 1"1 of Co99on5ealth +ct No. 1!1 p%o1i0es4 +ll actions fo% the %e1e%sion to the Go1e%n9ent of lan0s of the public 0o9ain o% i9p%o1e9ents the%eon shall be institute0 b& the Solicito% Gene%al o% the office% actin; in his stea0( in the p%ope% cou%ts( in the na9e of the Republic of the Philippines. In all actions fo% the %e1e%sion to the Go1e%n9ent of lan0s of the public 0o9ain o% i9p%o1e9ents the%eon( the Republic of the Philippines is the %eal pa%t& in inte%est. The action shall be institute0 b& the Solicito% Gene%al o% the office% actin; in his stea0( in behalf of the Republic of the Philippines.#8 Mo%eo1e%( such action 0oes not p%esc%ibe. P%esc%iption an0 laches 5ill not ba% actions file0 b& the State to %eco1e% its p%ope%t& ac@ui%e0 th%ou;h f%au0 b& p%i1ate in0i1i0uals.#! *ase0 on the fo%e;oin;( 5e %ule that petitione%s a%e not the %eal pa%ties in inte%est in this case. Ge the%efo%e affi%9 the 0is9issal b& the t%ial cou%t of the co9plaint an0 the %ulin; of the Cou%t of +ppeals that petitione%s 9ust fi%st lo0;e thei% co9plaint 5ith the *u%eau of )an0s in o%0e% that an a09inist%ati1e in1esti;ation 9a& be con0ucte0 un0e% Section '1#: of The Public )an0 +ct. +s to petitione%s> contention that the& shoul0 be 0ee9e0 %eal pa%ties in inte%est base0 on the p%inciple of e@uit&( 5e %ule othe%5ise. E@uit&( 5hich has been aptl& 0esc%ibe0 as E?ustice outsi0e le;alit&(E is applie0 onl& in the absence of( an0 ne1e% a;ainst( statuto%& la5 o% ?u0icial %ules of p%oce0u%e. Positi1e %ules p%e1ail o1e% all abst%act a%;u9ents base0 on e@uit& cont%a le;e9.# G,ERE-ORE( the petition is DENIED. The assaile0 Decision 0ate0 +p%il #6( #""! an0 the Resolution 0ate0 $une ##( #""! of the Cou%t of +ppeals in C+7G.R. CV No. 6'8! a%e +--IRMED. Costs a;ainst petitione%s. SO ORDERED. )EON+RDO +. 3UISUM*ING +ctin; Chief $ustice GE CONCUR4

CONC,IT+ C+RPIO MOR+)ES +ssociate $ustice D+NTE O. TING+ REN+TO C. CORON+J +ssociate $ustice +ssociate $ustice MINIT+ V. C,ICO7N+/+RIOJJ +ssociate $ustice C E R T I - I C+T I O N Pu%suant to Section 18( +%ticle VIII of the Constitution( I ce%tif& that the conclusions in the abo1e Decision ha0 been %eache0 in consultation befo%e the case 5as assi;ne0 to the 5%ite% of the opinion of the Cou%t>s Di1ision. )EON+RDO +. 3UISUM*ING +ctin; Chief $ustice -ootnotes J +00itional 9e9be% in lieu of +ssociate $ustice P%esbite%o $. Velasco( $%. 5ho is ab%oa0 on official business. JJ +00itional 9e9be% in lieu of +ssociate $ustice +%tu%o D. *%ion 5ho is on lea1e. 1 Rollo( pp. 8B7!#. Penne0 b& +ssociate $ustice Se%;io ). Pesta.o( 5ith +ssociate $ustices Robe%to +. *a%%ios an0 Vicente 3. RoDas concu%%in;. # I0. at !!. Penne0 b& +ssociate $ustice Vicente 3. RoDas( 5ith +ssociate $ustices Robe%to +. *a%%ios an0 +u%o%a S. )a;9an concu%%in;. 8 I0. at !:7:". ! I0. at 8B. : Reco%0s( pp. 1171#. I0. at 1!. B I0. at 1B. 6 I0. at 16. ' I0. at 1'. 1" I0. at ##. 11 I0. at #8. 1# I0. at 171". 18 +n +ct to +9en0 an0 Co9pile the )a5s Relati1e to )an0s of the Public Do9ain( app%o1e0 on No1e9be% B( 1'8 . 1! Reco%0s( pp. 8:78B. 1: +n +ct to P%o1i0e fo% the +0?u0ication an0 Re;ist%ation of Titles to )an0s in the Philippine Islan0s( enacte0 on No1e9be% ( 1'"# an0 tooC effect on $anua%& 1( 1'"8. 1 Rollo( p. !'. 1B I0. at !#. 16 I0. at 1"8. 1' SEC. 1"1. +ll actions fo% the %e1e%sion to the Go1e%n9ent of lan0s of the public 0o9ain o% i9p%o1e9ents the%eon shall be institute0 b& the Solicito% Gene%al o% the office% actin; in his stea0( in the p%ope% cou%ts( in the na9e of the Republic of the Philippines. #" Rollo( p. 81. #1 I0. at 116. ## Republic 1. Cou%t of +ppeals( G.R. No. 1# 81 ( $une #:( #""!( !8# SCR+ :'8( :'67 :''. #8 O%ti;as K Co9pan&( )i9ite0 Pa%tne%ship 1. RuiA( No. )788':#( Ma%ch '( 1'6B( 1!6

SCR+ 8# ( 88'78!"( citin; The Di%ecto% of )an0s 1. )i9( et al.( '1 Phil. '1# <1':#=. #! Republic 1. ,ei%s of -elipe +le?a;a( S%.( G.R. No. 1! "8"( Dece9be% 8( #""#( 8'8 SCR+ 8 1( 8B!. #: SEC. '1. The state9ents 9a0e in the application shall be consi0e%e0 as essential con0itions an0 pa%ts of an& concession( title( o% pe%9it issue0 on the basis of such application( an0 an& false state9ent the%ein o% o9ission of facts alte%in;( chan;in;( o% 9o0if&in; the consi0e%ation of the facts set fo%th in such state9ents( an0 an& subse@uent 9o0ification( alte%ation( o% chan;e of the 9ate%ial facts set fo%th in the application shall ipso facto p%o0uce the cancellation of the concession( title( o% pe%9it ;%ante0. It shall be the 0ut& of the Di%ecto% of )an0s( f%o9 ti9e to ti9e an0 5hene1e% he 9a& 0ee9 it a01isable( to 9aCe the necessa%& in1esti;ations fo% the pu%pose of asce%tainin; 5hethe% the 9ate%ial facts set out in the application a%e t%ue( o% 5hethe% the& continue to eDist an0 a%e 9aintaine0 an0 p%ese%1e0 in ;oo0 faith( an0 fo% the pu%poses of such in1esti;ation( the Di%ecto% of )an0s is he%eb& e9po5e%e0 to issue subpoenas an0 subpoenas 0uces tecu9 an0( if necessa%&( to obtain co9pulso%& p%ocess f%o9 the cou%ts. In e1e%& in1esti;ation 9a0e in acco%0ance 5ith this section( the eDistence of ba0 faith( f%au0( conceal9ent( o% f%au0ulent an0 ille;al 9o0ification of essential facts shall be p%esu9e0 if the ;%antee o% possesso% of the lan0 shall %efuse o% fail to obe& a subpoena o% subpoena 0uces tecu9 la5full& issue0 b& the Di%ecto% of )an0s o% his autho%iAe0 0ele;ates o% a;ents( o% shall %efuse o% fail to ;i1e 0i%ect an0 specific ans5e%s to pe%tinent @uestions( an0 on the basis of such p%esu9ption( an o%0e% of cancellation 9a& issue out fu%the% p%ocee0in;s. # Republic 1. Cou%t of +ppeals( G.R. No. 1""B"'( No1e9be% 1!( 1''B( #61 SCR+ 8'( !'( citin;Causapin 1. Cou%t of +ppeals( G.R. No. 1"B!8#( $ul& !( 1''!( #88 SCR+ 1:( #:F /abat( $%. 1. Cou%t of +ppeals( No. )78 ':6( $ul& 1"( 1'6 ( 1!# SCR+ :6B( :'1.