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Article XII - DigestsSection 2: EDU of Natural Resources:MAGALONA VS

ERMI!A" GR #$%#&%" August #&" 2'##(A)!S :!*e antece+ent facts of t*is

case e,erge+ u-on t*e -assing of Re-u.lic Act /'0& in #1&# !*e la23s
-ur-ose isto +e,arcate t*e,ariti,e .aselines of t*e 4*ili--ines as it 2as
+ee,e+ to .e an arc*i-elago RA /'0& stoo+unc*allenge+ until 2''1" 2*en
)ongress a,en+e+ it an+ -asse+ RA1522 !*is a,en+ing la2 s*ortene+ one
.aseline an+ +eter,ine+ ne2 .ase -oints of t*e arc*i-elago Moreso" it *as
i+entifie+ t*e 6ala7aanIslan+Grou- an+ t*eScar.oroug* S*oal" as 8regi,es of
islan+s8" generating t*eir o2n ,ariti,e 9ones!*e -etitioners file+ a case
assailing t*e constitutionalit7 of RA 1522 !o t*eiro-inion" t*e la2 *as
effecti:el7re+uce+ t*e ,ariti,e territor7 of t*e countr7 ;it* t*is" Article I of
t*e #1$% )onstitution 2ill .e :iolate+ !*e -etitioners also 2orrie+t*at t*at
.ecause of t*e suggeste+ c*anges in t*e ,ariti,e .aselines 2ill allo2 for
foreign aircrafts an+ :essels to tra:erse t*e 4*ili--ine territor7freel7 In effect"
it ste-s on t*e state3sso:ereignt7 an+ national securit7 Mean2*ile" t*e
)ongress insiste+ t*at in no 2a7 2ill t*e a,en+,ents affect an7-ertinent
-o2er of t*e state It also +eferre+ to agree t*at t*e la2 i,-lie+l7 relin<uis*es
t*e 4*ili--ines clai,s o:er Sa.a* Lastl7" t*e7 *a:e <uestione+ t*enor,ati:e
force of t*e notion t*at all t*e 2aters 2it*in t*e rectangular .oun+aries in t*e
!reat7 of 4aris No2" .ecause t*is treat7 still *as un+eter,ine+contro:ersies"
t*e )ongress .elie:es t*at in t*e -ers-ecti:e of international la2" it +i+ not see
an7 .in+ing o.ligation to *onor it !*us" t*is case of -ra7er for 2rits
ofcertiorari an+ -ro*i.ition is file+ .efore t*e court" assailing t*e
constitutionalit7 of RA 1522ISSUE: Is RA 1522" t*e a,en+ator7 4*ili--ine
=aseline La2" :iolati:e of Section 2" -aragra-* 2" Article XII of t*e
)onstitution>RULING: No !*e )ourt +is,isse+ t*e case It u-*el+ t*e
constitutionalit7 of t*e la2 an+ ,a+e it clear t*at it *as ,erel7 +e,arcate+ t*e
countr73s,ariti,e 9ones an+ continental s*el:es in accor+ance to UN)LOS
III Secon+l7" t*e)ourt foun+ t*at t*e fra,e2or? of t*e regi,e of
islan+ssuggeste+ .7 t*e la2 is not incongruent 2it* t*e 4*ili--ines3 en@o7,ent
of territorial so:ereignt7 o:er t*e areas of 6ala7aan Grou- of Islan+s an+
t*eScar.oroug* !*ir+" t*e court reiterate+ t*at t*e clai,s o:er Sa.a*
re,aine+ e:en 2it* t*e a+o-tion of t*e a,en+,ents (urt*er" t*e )ourt
i,-ortantl7 stresse+t*at t*e .aseline la2s are ,ere ,ec*anis,s for t*e
UN)LOS III to -recisel7 +escri.e t*e +eli,itations It ser:es as a notice to t*e
international fa,il7 of states an+it is in no 2a7 affecting or -ro+ucing an7
effect li?e enlarge,ent or +i,inution of territories ;it* regar+ to t*e
-etitioners3 assertion t*at RA 1522 *ascon:erte+ t*e internal 2aters into
arc*i-elagic2aters" t*e )ourt +i+ not a--ear to .e -ersua+e+ Instea+" t*e
)ourt suggeste+ t*at t*e -olitical .ranc*es of Go:ern,ent can -ass +o,estic
la2s t*at 2ill ai+ in t*eco,-etent securit7 ,easures an+ -olicies t*at 2ill
regulate innocent -assage Since t*e )ourt e,-*asi9e+ innocent -assage as a
rig*t .ase+ on custo,ar7 la2" italso .elie:es t*at no state can :ali+l7 in:o?e
so:ereignt7 to +en7 a rig*t ac?no2le+ge+ .7 ,o+ern states In t*e case of
arc*i-elagic states suc* as ours" UN)LOS IIIre<uire+ t*e i,-osition of
innocent -assage as a concession in lieu of t*eir rig*t to clai, t*e entire
2aters lan+2ar+ .aseline It also ,a+e it -ossi.le for arc*i-elagicstates to .e
recogni9e+ as a co*esi:e entit7 un+er t*e UN)LOS IIIDi9on )o--er :s Dr
Di9on" GR #$/5%/" Aul7 #&" 2'#2(acts: )elestinoDi9on B)elestinoC file+ 2it*
Declarations of Location o:er 5% ,ining clai,s in Da,.ales In #1&&" *erein
-etitionerDi9on )o--er-Sil:er Mines" Inc 2as organi9e+ A,ong its
incor-orators 2ere )elestino an+ *is son" *erein res-on+ent Dr Luis DDi9on
)elestino assigne+ t*eir 5% ,ining clai,s to -etitioner 4etitioner entere+ into
an O-erating Agree,ent 2it* =enguet)or-oration B=enguetC In suc*
agree,ent" -etitioner aut*ori9e+ =enguet to" a,ong ot*ers" EeF-lore" e<ui-"
+e:elo- an+ o-erate t*e 5% ,ining clai,s In #1%$" t*e 5% ,ining clai,s
.eca,e t*e su.@ect of a ,ining lease a--lication 2it* t*e =ureau of
Mines)onse<uentl7" t*e go:ern,ent issue+ 5 Mining Lease )ontracts
BML)sC co:ering & out of t*e 5% ,ining clai,s =enguet file+ anM4SA
a--lication 2it* t*e DENR =enguet an+ -etitioner ter,inate+ t*eir O-erating
Agree,ent In 2''0" =enguet assigne+ M4SA-4-III-#& in fa:or of t*e latter
An+ t*is 2as recor+e+ in t*e na,e of -etitioner 4etitioner sent a letter to t*e
DENR MG= RO-III"re<uesting t*e sai+ office to inclu+e t*e & ,ining clai,s
un+er ML)s in M4SA-4-III-#& !*e re<uest 2as a--ro:e+ Des-ite
t*e-en+enc7 of M4SA-4-III-#&" -etitioner nonet*eless file+ 2it* t*e DENR
anot*er M4SA a--lication +esignate+ as M4SA-4-III-'/-'5an+ co:ers all 5%
of its ,ining clai,s" inclusi:e of t*e & un+er ML)s On t*e ot*er *an+"
res-on+ent file+ 2it* t*e DENR *is M4SA-4-III-'5-'5" an M4SA a--lication
co:ering 2$#1500 *ectares of ,ineral location in Da,.ales It inclu+es t*e &
,ining clai,sun+er ML)s<uentl7" t*e DENR MG= RO-III :erifie+
t*at se:eral areas a--lie+ for .7 res-on+ent in M4SA-4-III-'5-'5o:erla-s
2it* t*ose in -etitioner3s a--lication !*e DENR Secretar7 issue+ an Or+er
+eclaring -etitioner3s M4SA-4-III-#& an+M4SA-4-III-'/-'5 :oi+ a.
initioIssue:;*at is a ,ineral -ro+uction s*aring agree,ent> Is it:iolati:e of
sec 2" -ar 2g" Article #2 of t*e )onstitution>Ruling:A Mineral 4ro+uction
S*aring Agree,ent BM4SAC is one of t*e ,ineral agree,ents inno:ate+ .7 t*e
#1$% )onstitution .72*ic* t*e State ta?es on a .roa+er an+ ,ore +7na,ic
role in t*e eF-loration" +e:elo-,ent an+ utili9ation of t*e countr73s
,ineralresources =7 suc* agree,ents" t*e go:ern,ent +oes not .eco,e a
,ere licensor" concessor or lessor of ,ining resourcesG.utactuall7 assu,es
Efull control an+ su-er:ision in t*e eF-loration" +e:elo-,ent an+ utili9ation
of t*e concerne+ ,ining clai,s" inconsonance 2it* Section 2" Article XII of
t*e )onstitution2''& =AR: !rue or (alseA la2 creating a state cor-oration to
eF-loit" +e:elo-" an+ utili9e co,-resse+ natural gasSUGGES!ED ANS;ER:
!*e la2 is :ali+ as un+er Article XII" Section 2 of t*e #1$% )onstitution" t*e
eF-loration" +e:elo-,ent" an+ utili9ation ofnatural resources s*all .e un+er
t*e full control an+ su-er:ision of t*e State It is also -ro:i+e+ t*at t*e State
,a7 +irectl7 un+erta?esuc* acti:ities or it ,a7 enter into co--ro+uction" @oint
:enture or s*aring agree,ents 2it* (ili-ino citi9ens or cor-orations
orassociations" at least &'H (ili-ino-o2ne+ (urt*er,ore" t*e 4resi+ent ,a7
enter into agree,ents 2it* foreign-o2ne+ cor-orations in:ol:ing tec*nical or
financialassistance for large-scale eF-loration" +e:elo-,ent" an+ utili9ation of
,inerals" -etroleu, an+ ot*er ,ineral oils" accor+ing to ter,san+ con+itions
-ro:i+e+ .7 la2 A state cor-oration" unli?e a -ri:ate cor-oration" ,a7 .e
create+ .7 s-ecial la2 an+ -lace+ un+er t*econtrol of t*e 4resi+ent" su.@ect to
suc* con+itions as t*e creating statute ,a7 -ro:i+eSection / Lan+s of 4u.lic
Do,ain:Secrear7 of DENR :s Ia-" GR No #&%%'%" O)! $" 2''$" 5&$
S)RA #&0
(A)!S: On Ma7 22" 2''&" +uring t*e -en+enc7 of GR No #&%%'%"
4resi+ent Gloria Maca-agal-Arro7o issue+ 4rocla,ation No#'&0 classif7ing
=oraca7 Islan+ into four *un+re+ B0''C *ectares of reser:e+ forest lan+
B-rotection -ur-osesC an+ siF *un+re+t2ent7-eig*t an+ 1&J#'' B&2$1&C
*ectares of agricultural lan+ Baliena.le an+ +is-osa.leC !*e 4rocla,ation
li?e2ise -ro:i+e+ for afifteen-,eter .uffer 9one on eac* si+e of t*e centerline
of roa+s an+ trails" reser:e+ for rig*t-of-2a7 an+ 2*ic* s*all for, -art of
t*earea reser:e+ for forest lan+ -rotection -ur-osesOn August #'" 2''&"
-etitioners-clai,ants Dr Saca7" ;ilfre+oGelito" an+ ot*erlan+o2ners in
=oraca7 file+ 2it* t*is )ourt an original -etition for -ro*i.ition" ,an+a,us"
an+ nullification of 4rocla,ation No#'&0 !*e7 allege t*at t*e 4rocla,ation
infringe+ on t*eir 8-rior :este+ rig*ts8 o:er -ortions of =oraca7 !*e7 *a:e
.een incontinue+ -ossession of t*eir res-ecti:e lots in =oraca7 since ti,e
i,,e,orial !*e7 *a:e also in:este+ .illions of -esos in+e:elo-ing t*eir
lan+s an+ .uil+ing internationall7 reno2ne+ first class resorts on t*eir lots
4etitioners-clai,ants conten+e+ t*at t*ere is no nee+ for a -rocla,ation
reclassif7ing =oraca7 into agricultural lan+Neit*er .eing classifie+ as neit*er
,ineral nor ti,.er lan+" t*e islan+ is +ee,e+ agricultural -ursuant to t*e
4*ili--ine =ill of #1'2an+ Act No 12&" ?no2n as t*e first 4u.lic Lan+
Act!*us" t*eir -ossession in t*e conce-t of o2ner for t*e re<uire+ -erio+
entitle+t*e, to @u+icial confir,ation of i,-erfect titleIssue: Is 4GMA3s
4resi+ential 4rocla,ation No #'&5 classif7ing =oraca7 Islan+s into 0''
*ectares of reser:e+ forest lan+ an+ &2$*ectares of agricultural lan+ Baliena.le
an+ +is-osa.leC" :ali+ an+ constitutional>Ruling: Ies 4rocla,ation No #'&0
of 2''& 2*ic* -ositi:el7 +eclare+ -art of =oraca7 as aliena.le an+ o-ene+ t*e
sa,e to -ri:ateo2ners*i- Sections & an+ % of )A No #0# -ro:i+e t*at it is
onl7 t*e 4resi+ent" u-on t*e reco,,en+ation of t*e -ro-er +e-art,ent*ea+"
2*o *as t*e aut*orit7 to classif7 t*e lan+s of t*e -u.lic +o,ain into aliena.le
or +is-osa.le" ti,.er an+ ,ineral lan+s Inissuing 4rocla,ation No #'&0"
4resi+ent Gloria Maca-agal-Arro7o ,erel7 eFercise+ t*e aut*orit7 grante+ to
*er to classif7 lan+s oft*e -u.lic +o,ain" -resu,a.l7 su.@ect to eFisting
:este+ rig*ts )lassification of -u.lic lan+s is t*e eFclusi:e -rerogati:e of
t*eEFecuti:e De-art,ent" t*roug* t*e Office of t*e 4resi+ent )ourts *a:e no
aut*orit7 to +o so A.sent suc* classification" t*e lan+re,ains unclassifie+
until release+ an+ ren+ere+ o-en to +is-osition 4rocla,ation No #'&0
classifies =oraca7 into 0'' *ectares ofreser:e+ forest lan+ an+ &2$1& *ectares
of agricultural lan+ !*e 4rocla,ation li?e2ise -ro:i+es for a #5-,eter .uffer
9one on eac*si+e of t*e center line of roa+s an+ trails" 2*ic* are reser:e+ for
rig*t of 2a7 an+ 2*ic* s*all for, -art of t*e area reser:e+ for forestlan+
-rotection -ur-oses)ontrar7 to -ri:ate clai,ants3 argu,ent" t*ere 2as
not*ing in:ali+ or irregular" ,uc* lessunconstitutional" a.out t*e classification
of =oraca7 Islan+ ,a+e .7 t*e 4resi+ent t*roug* 4rocla,ation No #'&0 It
2as 2it*in *eraut*orit7 to ,a?e suc* classification" su.@ect to eFisting :este+
rig*ts4rocla,ation No #'&0 +oes not :iolate t*e )o,-re*ensi:e Agrarian
Refor, La22''0 =AR:EA4 is a go:ern,ent cor-oration create+ for t*e
-ur-ose of reclai,ing lan+s inclu+ing fores*ore an+ su.,erge+ areas"as 2ell
as to +e:elo-" i,-ro:e" ac<uire" lease an+ sell an7 an+ all ?in+s of lan+s A
la2 2as -asse+ transferring title to EA4 of lan+salrea+7 reclai,e+ in t*e
fores*ore an+ offs*ore areas of MM =a7" -articularl7 t*e so-calle+ Li.ert7
Islan+s" as aliena.le an++is-osa.le lan+s of t*e -u.lic +o,ain !itles 2ere
+ul7 issue+ in EA4s na,e<uentl7" EA4 entere+ into a @oint
:entureagree,ent BAVAC 2it* ARI" a -ri:ate foreign cor-oration" to +e:elo-
Li.ert7 Islan+s A++itionall7" t*e AVA -ro:i+e+ for t*erecla,ation of 25'
*ectares of su.,erge+ lan+ in t*e area surroun+ing Li.ert7 Islan+s EA4
agree+ to sell an+ transfer to ARI a-ortion of Li.ert7 Islan+s an+ a -ortion of
t*e area to .e reclai,e+ as t*e consi+eration for ARIs role an+ -artici-ation in
t*e @oint:enture" u-on a--ro:al .7 t*e Office of t*e 4resi+ent Is t*ere an7
constitutional o.stacle to t*e sale an+ transfer .7 EA4 to ARI of.ot* -ortions
as -ro:i+e+ for in t*e AVA>SUGGES!ED ANS;ER: ARI cannot ac<uire a
-ortion of Li.ert7 Islan+s .ecause" alt*oug* EA4 *as title to Li.ert7 Islan+s
an+ t*us suc* lan+s arealiena.le an+ +is-osa.le lan+" t*e7 cannot .e sol+" onl7
lease+" to -ri:ate cor-orations !*e -ortion of t*e area to .e reclai,e+cannot
.e sol+ an+ transferre+ to ARI .ecause t*e sea.e+ is inaliena.le lan+ of t*e
-u.lic +o,ain BSection /" Article XII of t*e #1$%)onstitutionK )*a:e9 :
4u.lic Estates Aut*orit7" /$0 S)RA #52 L2''2MCSection 0 (orest Lan+s an+
4ar?s:A-eF Mining :s SMGM )or-" GR No #52&#/"No:e,.er 2'"
2''1(acts: Sout*east Min+anao Gol+ Mining )or-oration BSMGMC assails
t*e )ourt3s Decision +ate+ 2/ Aune 2''&" 2*ic* *el+ t*att*e assign,ent of
EF-loration 4er,it BE4C #// in fa:or of SMGM :iolate+ one of t*e con+itions
sti-ulate+ in t*e -er,it" ie" t*at t*esa,e s*all .e for t*e eFclusi:e use an+
.enefit of Marco--er Mining )or-oration BMM)C or its +ul7 aut*ori9e+
agents In :ie2 of t*is" an+ consi+ering t*at un+er Section 5 of Re-u.lic Act
No %102" ot*er2ise ?no2n as t*e EMining Act of#115" ,ining o-erations
in ,ineral reser:ations ,a7 .e un+erta?en +irectl7 .7 t*e State or t*roug* a
contractor" t*e )ourt +ee,e+t*e issue of o2ners*i- of -riorit7 rig*t o:er t*e
conteste+ Di2al2al Gol+ Rus* Area as *a:ing .een o:erta?en .7 t*e
sai+-rocla,ation !*us" it 2as *el+ in t*e Assaile+ Decision t*at it is no2
2it*in t*e -rerogati:e of t*e EFecuti:e De-art,ent toun+erta?e +irectl7 t*e
,ining o-erations of t*e +is-ute+ area or to a2ar+ t*e o-erations to -ri:ate
entities inclu+ing -etitionersA-eF an+ =alite" su.@ect to a--lica.le la2s" rules
an+ regulations" an+ -ro:i+e+ t*at t*ese -ri:ate entities are <ualifie+Issue: Is
44 No 21%" +eclaring t*e Di2al2al Gol+ Rus* Area as a ,ineral reser:ation"
:ali+ an+ constitutional" on t*e groun+ t*atit lac?s t*e concurrence of
)ongress as ,an+ate+ .7 Section 0" Article XII of t*e )onstitution>Ruling: 44
No 21% is :ali+ an+ constitutional e:en 2it*out concurrence fro, )ongress
!*e )ourt recogni9e+ t*at t*e <uestione+-rocla,ation ca,e fro, a co-e<ual
.ranc* of go:ern,ent" 2*ic* entitle+ it to a strong -resu,-tion of
constitutionalit7 !*e-resu,-tion of its constitutionalit7 stan+s inas,uc* as
t*e -arties in t*e instant cases +i+ not <uestion its :ali+it7" ,uc* less-resent
an7 e:i+ence to -ro:e t*at t*e sa,e is unconstitutional Section 0" Article XII
of t*e )onstitution -ro:i+es t*at t*e area co:ere+ .7 forest lan+s an+ national
-ar?s ,a7 not .eeF-an+e+ or re+uce+" unless -ursuant to a la2 enacte+ .7
)ongress SEM +oes not allege nor -resent an7 e:i+ence t*at )ongress
*a+alrea+7 enacte+ a statute +eter,ining 2it* s-ecific li,its forest lan+s an+
national -ar?s )onsi+ering t*e a.sence of suc* la2"4rocla,ation No 21%
coul+ not *a:e :iolate+ Section 0" Article XII of t*e #1$% )onstitution In
a++ition" t*ere is not*ing in t*e constitutional -ro:ision t*at -ro*i.its t*e
4resi+ent fro, +eclaring a forest lan+ as anen:iron,entall7 critical area an+
fro, regulating t*e ,ining o-erations t*erein .7 +eclaring it as a ,ineral
reser:ation in or+er to-re:ent t*e furt*er +egra+ation of t*e forest
en:iron,ent an+ to resol:e t*e *ealt* an+ -eace an+ or+er -ro.le,s t*at .eset
t*earea NN7ou can o-t not to 2rite t*e /r+ -aragra-* in t*e in+eF car+NN
Section % 4ri:ate Lan+ O2ners*i-:Matt*e2s :s !a7lor" GR #&05$0" Aune
22" 2''1(acts: On Aune 2'" #1$$ Res-on+ent =en@a,in !a7lor" a =ritis*"
,arrie+ a (ili-ina na,e+ Aosel7n !a7lor E:entuall7" t*e7.oug*t a lot !*e
transaction 2as sai+ to .e finance+ .7 =en@a,in Aosel7n an+ =en@a,in
constructe+ i,-ro:e,ents an+ ,a+e aninn to t*e sai+ lot 4er,its an+ licenses
2ere secure+ for t*e esta.lis*,ent !*ree 7ears -asse+ an+ t*eir relations*i-
turne+ souran+ Aosel7n ran a2a7 2it* 4*ili- Matt*e2s On Aul7 2'" #112"
Aosel7n as lessor an+ -etitioner 4*ili- Matt*e2s as lessee" entere+ into an
Agree,ent of Lease BAgree,entCin:ol:ing t*e =oraca7 -ro-ert7 for a -erio+
of 25 7ears" 2it* an annual rental of 4#2"''''' !*e agree,ent 2as signe+
.7 t*e-arties an+ eFecute+ .efore a Notar7 4u.lic 4etitioner t*ereafter too?
-ossession of t*e -ro-ert7 an+ rena,e+ t*e resort as MusicGar+en
Resort)lai,ing t*at t*e Agree,ent 2as null an+ :oi+ since it 2as entere+
into .7 Aosel7n 2it*out *is B=en@a,in3sC consent" =en@a,ininstitute+ an action
for Declaration of Nullit7 of Agree,ent of Lease 2it* Da,ages against
Aosel7n an+ t*e -etitionerIssue: )an an alien * nullif7 a lease contract
entere+ into .7 *is (ili-ina 2ife o:er a lan+ .oug*t +uring t*eir ,arriage>
Ruling: !*e rule is clear an+ infleFi.le: aliens are a.solutel7 not allo2e+ to
ac<uire -u.lic or -ri:ate lan+s in t*e 4*ili--ines" sa:eonl7 in constitutionall7
recogni9e+ eFce-tions !*ere is no rule ,ore settle+ t*an t*is constitutional
-ro*i.ition" as ,ore an+ ,orealiens atte,-t to circu,:ent t*e -ro:ision .7
tr7ing to o2n lan+s t*roug* anot*er =en@a,in *as no rig*t to nullif7 t*e
Agree,ent of Lease .et2een Aosel7n an+ -etitioner =en@a,in" .eing an alien"
isa.solutel7 -ro*i.ite+ fro, ac<uiring -ri:ate an+ -u.lic lan+s in t*e
4*ili--ines )onsi+ering t*at Aosel7n a--eare+ to .e t*e+esignate+ E:en+ee
in t*e Dee+ of Sale of sai+ -ro-ert7" s*e ac<uire+ sole o2ners*i- t*ereto !*is
is true e:en if 2e sustain=en@a,in3s clai, t*at *e -ro:i+e+ t*e fun+s for suc*
ac<uisition =7 entering into suc* contract ?no2ing t*at it 2as illegal"
noi,-lie+ trust 2as create+ in *is fa:orK no rei,.urse,ent for *is eF-enses
can .e allo2e+K an+ no +eclaration can .e ,a+e t*at t*esu.@ect -ro-ert7 2as
-art of t*e con@ugalJco,,unit7 -ro-ert7 of t*e s-ouses In an7 e:ent" *e *a+
an+ *as no ca-acit7 or-ersonalit7 to <uestion t*e<uent lease of t*e
=oraca7 -ro-ert7 .7 *is 2ife on t*e t*eor7 t*at in so +oing" *e 2as
,erel7eFercising t*e -rerogati:e of a * in res-ect of con@ugal
-ro-ert7#11$ =AR:EF-ress 7our agree,ent or +isagree,ent 2it* an7 of t*e
follo2ing state,ents =egin 7our ans2er 2it* t*e state,ent: 8IAGREE8 or
8DISAGREE8 as t*e case ,a7 .e# An7one" 2*et*er In+i:i+ual" cor-oration
or association" <ualifie+ to ac<uire -ri:ate lan+s is also <ualifie+ to ac<uire
-u.lic lan+sin t*e 4*ili--ines2 A religious cor-oration is <ualifie+ to *a:e
lan+s in t*e 4*ili--ines on 2*ic* it ,a7 .uil+ Its c*urc* an+ ,a?e
ot*eri,-ro:e,ents -ro:i+e+ t*ese are actuall7" +irectl7 an+ eFclusi:el7 use+
for religious -ur-oses/ A religious cor-oration cannot lease -ri:ate lan+s In
t*e 4*ili--ines0 A religious cor-oration can ac<uire -ri:ate lan+s in t*e
4*ili--ines -ro:i+e+ all its ,e,.ers are citi9ens of t*e 4*ili--ines5 A
foreign cor-oration can onl7 lease -ri:ate lan+s in t*e
4*ili--inesSUGGES!ED ANS;ER:#C I +isagree Un+er Section %" Article
XII of t*e )onstitution" a cor-oration or association 2*ic* is siFt7 -ercent
o2ne+ .7 (ili-inociti9ens can ac<uire -ri:ate lan+" .ecause it can lease -u.lic
lan+ an+ can t*erefore *ol+ -u.lic lan+ Oo2e:er" it cannot ac<uire-u.lic
lan+ Un+er Section /" Article XII of t*e )onstitution" -ri:ate cor-orations an+
associations can onl7 lease an+ cannot ac<uire-u.lic lan+ Un+er Section $"
Article XII of t*e )onstitution" a natural-.orn (ili-ino citi9en 2*o lost *is
4*ili--ine citi9ens*i- ,a7ac<uire -ri:ate lan+ onl7 an+ cannot ac<uire -u.lic
lan+2C I +isagree !*e ,ere fact t*at a cor-oration is religious +oes not entitle
it to o2n -u.lic lan+ As *el+ In Register of Dee+s :sUngSiu Si !e,-le" 1%
4*il 5$" &#" lan+ tenure is not in+is-ensa.le to t*e free eFercise an+
en@o7,ent of religious -rofession of2ors*i- !*e religious cor-oration can
o2n -ri:ate lan+ onl7 if it is at least siFt7 -er cent o2ne+ .7 (ili-ino
citi9ens/C I +isagree Un+er Section # of 4resi+ential Decree No 0%#"
cor-orations an+ associations o2ne+ .7 aliens are allo2e+ to lease-ri:ate
lan+s u- to t2ent7-fi:e 7ears" rene2a.le for anot*er -erio+ of t2ent7-fi:e
7ears u-on agree,ent of t*e lessor an+ t*e lesseeOence" e:en if t*e religious
cor-oration is o2ne+ .7 aliens" it can lease -ri:ate lan+s0C I +isagree (or a
cor-oration to <ualif7 to ac<uire -ri:ate lan+s in t*e 4*ili--ines" un+er Section
%" Article Xn of t*e )onstitutionin relation to Section 2" Article XII of t*e
)onstitution" onl7 siFt7 -er cent B&'HC of t*e cor-oration is re<uire+ to .e
o2ne+ .7(ili-ino citi9ens for it to <ualif7 to ac<uire -ri:ate lan+s5C I agree
A foreign cor-oration can lease -ri:ate lan+s onl7 an+ cannot lease -u.lic
lan+ Un+er Section 2" Article XII of t*e)onstitution" t*e eF-loration"
+e:elo-,ent an+ utili9ation of -u.lic lan+s ,a7 .e un+erta?en t*roug* co-
-ro+uction Aoint :entureor -ro+uction-s*aring agree,ents onl7 2it* (ili-ino
citi9en or cor-orations or associations 2*ic* are at least siFt7 -er cent
o2ne+.7 (ili-ino citi9en2''1 =AR: !rue or (alseAliens are a.solutel7
-ro*i.ite+ fro, o2ning -ri:ate lan+s in t*e 4*ili--inesSUGGES!ED
ANS;ER:(alse" Aliens ,a7 o2n -ri:ate lan+s in t*e 4*ili--ines if t*e7
ac<uire t*e -ro-ert7 t*roug* *ere+itar7 succession Also" natural-.orn(ili-ino
citi9en 2*o lost t*eir 4*ili--ine citi9ens*i- ,a7 .e transferees of -ri:ate
lan+s" su.@ect to li,itations -ro:i+e+ .7 la22'## =AR: Alt*ea" a (ili-ino
citi9en" .oug*t a lot in t*e 4*ili--ines in #1%5 Oer-re+ecessors-in-interest
*a:e .een in o-en" continuous" eFclusi:e an+ notorious-ossession of t*e lot
since #10'" in t*e conce-t of o2ner In #1$$" Alt*ea.eca,e a naturali9e+
Australian citi9en Is s*e <ualifie+ to a--l7 for registrationof t*e lot in *er
na,e> !*e ans2er is )A Ies" -ro:i+e+ s*e ac<uires .ac? *er (ili-ino
citi9ens*i-= No" eFce-t 2*en it can .e -ro:e+ t*at Australia *as a
counter-art +o,estic
la2 t*at also fa:ors for,er (ili-ino citi9ens resi+ing t*ere) Ies" t*e lot is
alrea+7 -ri:ate in c*aracter an+ as a for,er natural-.orn(ili-ino" s*e can .u7
t*e lot an+ a--l7 for its registration in *er na,eD No" foreigners are not
allo2e+ to o2n lan+s in t*e 4*ili--inesSection $ 4ro-ert7 Rig*ts of for,er
natural .orn (ili-inos:2''' =AR:State 2*et*er or not t*e follo2ing la2 is
constitutional EF-lain .riefl7 No XVIII P aC An+7 Li," an et*nic )*inese"
.eca,e a naturali9e+ (ili-ino in #1/5 =ut later *e lost *is (ili-ino
citi9ens*i-2*en *e .eca,e a citi9en of )ana+a in #1%# ;anting t*e .est of
.ot* 2orl+s" *e .oug*t" in #1$%" a resi+ential lot in ( 4ar? an+a
co,,ercial lot in =inon+o Are t*ese sales :ali+> ;*7> B/HCAns2er: No" t*e
sales are not :ali+ Un+er Section $" Article XII of t*e )onstitution" onl7 a
natural-.orn citi9en of t*e 4*ili--ines2*o lost *is 4*ili--ine citi9ens*i- ,a7
ac<uire -ri:ate lan+ Since An+7 Li, 2as a for,er naturali9e+ (ili-ino
citi9en" *e is not<ualifie+ to ac<uire -ri:ate
QQQQQQQQQSection #'(ili-ini9e+ Areas of In:est,ents:Es-ina :s =autista"
GR #0/$55" Se-t 2#" 2'#'
On Marc* %" 2''' 4resi+ent Aose-* E Estra+a signe+ into la2 Re-u.lic Act
BRAC $%&2" also ?no2n as t*e Retail !ra+eLi.erali9ation Act of 2''' It
eF-ressl7 re-eale+ RA ##$'" 2*ic* a.solutel7 -ro*i.ite+ foreign nationals
fro, engaging in t*e retail tra+e .usiness RA $%&2 also allo2s natural-.orn
(ili-ino citi9ens" 2*o *a+ lost t*eir citi9ens*i- an+ no2 resi+e in t*e
4*ili--ines"to engage in t*e retail tra+e .usiness 2it* t*e sa,e rig*ts as
(ili-ino citi9ens On ##" 2''' -etitioners file+ t*e -resent-etition"
assailing t*e constitutionalit7 of RA $%&2 on t*e groun+s t*at t*e
i,-le,entation of RA $%&2 2oul+ lea+ to alien control of t*e retail tra+e"
2*ic* ta?en toget*er 2it* alien +o,inance of ot*er areas of .usiness" 2oul+
result in t*e loss of effecti:e (ili-inocontrol of t*e econo,7" foreign retailers
li?e ;al,art an+ 6-Mart 2oul+ crus* (ili-ino retailers an+ sari-sari store
:en+ors" +estro7self-e,-lo7,ent" an+ .ring a.out ,ore une,-lo7,ent
Issue: Does RA $%&2 LRetail !ra+e Li.erali9ation Act of 2'''M" :iolate t*e
constitutional ,an+ate in (ili-ini9ation of areas ofin:est,ents>
Ruling: No" t*ere is no s*o2ing t*at t*e la2 *as contra:ene+ an7
constitutional ,an+ate !*e )ourt is not con:ince+ t*at t*e i,-le,entation of
RA $%&2 2oul+ e:entuall7 lea+ to alien control of t*e retail tra+e .usiness
4etitioners *a:e not ,ustere+ an7concrete an+ strong argu,ent to su--ort its
t*esis !*e la2 itself *as -ro:i+e+ strict safeguar+s on foreign -artici-ation in
t*at.usiness !*e t*e )ourt eF-laine+ in !aRa+a : Angara" t*e -ro:isions of
Article II of t*e #1$% )onstitution" t*e +eclarations of-rinci-les an+ state
-olicies" are not self-eFecuting Legislati:e failure to -ursue suc* -olicies
cannot gi:e rise to a cause of action int*e courts ;*ile Section #1" Article II
of t*e #1$% )onstitution re<uires t*e +e:elo-,ent of a self-reliant an+
in+e-en+ent nationalecono,7 effecti:el7 controlle+ .7 (ili-ino entre-reneurs"
it +oes not i,-ose a -olic7 of (ili-ino ,ono-ol7 of t*e econo,icen:iron,ent
!*e o.@ecti:e is si,-l7 to -ro* foreign -o2ers or interests fro,
,aneu:ering our econo,ic -olicies an+ ensuret*at (ili-inos are gi:en
-reference in all areas of +e:elo-,ent More i,-ortantl7" Section #'" Article
XII of t*e #1$% )onstitutiongi:es )ongress t*e +iscretion to reser:e to
(ili-inos certain areas of in:est,ents u-on t*e reco,,en+ation of t*e NEDA
an+ 2*ent*e national interest re<uires !*us" )ongress can +eter,ine 2*at
-olic7 to -ass an+ 2*en to -ass it +e-en+ing on t*e econo,iceFigencies It
can enact la2s allo2ing t*e entr7 of foreigners into certain in+ustries not
reser:e+ .7 t*e )onstitution to (ili-inociti9ens In t*is case" )ongress *as
+eci+e+ to o-en certain areas of t*e retail tra+e .usiness to foreign in:est,ents
instea+ ofreser:ing t*e, eFclusi:el7 to (ili-ino citi9ens !*e NEDA *as not
o--ose+ suc* -olic7
2''& =AR:
State 2*et*er or not t*e follo2ing la2s are constitutional EF-lain .riefl7
A la2 -ro*i.iting )*inese citi9ens fro, engaging in retail tra+e
B2HCSUGGES!ED ANS;ER: !*e la2 is in:ali+ as it singles out an+
+e-ri:es )*inese citi9ens fro, engaging in retail tra+e In Ic*ong :
Oernan+e9" GRNo L-%115" Ma7 /#"#15%" t*e court *el+ t*at t*e !reat7 of
A,it7 .et2een t*e Re-u.lic of t*e 4*ili--ines an+ t*e Re-u.lic of )*ina
guarantees e<ualit7 of treat,ent to t*e )*inese nationals Eu-on t*e sa,e
ter,s as t*e nationals of an7 ot*er countr7 !*us" t*e court rule+ t*erein t*at
t*e nationals of )*ina are not +iscri,inate+ against .ecause nationals of all
ot*er countries" eFce-t t*ose of t*e Unite+ States" 2*o are grante+ s-ecial
rig*ts .7 t*e )onstitution" are all -ro*i.ite+ fro, engaging in t*e retail tra+e
In t*e case at .ar" t*e la2 +iscri,inates onl7 against )*inese citi9ens an+ t*us
:iolates t*e e<ual -rotection )lause QQQQ
Section 11. Public Utilities:Francisco vs. TRB, G.R. No. 166910, Oct. 19,
(acts: In #1%%" 4res Marcos issue+ 4D ###2" aut*ori9ing t*e esta.lis*,ent
of toll facilities on -u.lic i,-ro:e,ents It ac?no2le+ge+ t*e *uge financial
re<uire,ents an+ t*e nee+ to ta- into t*e resources of t*e -ri:ate sector to
i,-le,ent t*e -rogra,In or+er to attract t*e -ri:ate sector" 4D ###2 create+
t*e !oll Regulator7 =oar+ B!R=C an+ allo2e+ t*e collection of toll fees for t*e
use of certain -u.lic i,-ro:e,ents" allo2ing a reasona.le rate of ROI
4D###/ 2as also issue+" granting to 4N)) a franc*ise to construct toll
facilities 2it* a rig*t to collect fees as t*e !R= ,a7 fiF !R= an+ 4N))
signe+ an agree,ent for t*e o-eration of t*e eF-ress2a7 In #1$/" 4N)) 2as
grante+ a franc*ise o:er MMEX As state+ in t*e -re:ious 4Ds 4N)) ,a7
sell its franc*ise u-on t*e 4resi+ent3s a--ro:al" t*en ca,e t*e #1$%
)onstitution 2it* its franc*ise -ro:ision 4etitioners assail t*e constitutionalit7
ofSections / BaC an+ B+C of 4D ###2 in relation to Section $ B.C of 4D #$10
insofar as t*e7 :este+ t*e !R=" on one *an+"toll o-eration a2ar+ing -o2er
2*ile" on t*e ot*er *an+" granting it also t*e -o2er to issue" ,o+if7 an+
-ro,ulgate toll rate c*arges !*e !R=" so -etitioners .e,oan" cannot .e an
a2ar+ing -art7 of a !OA an+" at t*e sa,e ti,e" .e t*e regulator of t*e toll 2a7
in+ustr7 an+ an a+@u+icator of rate eFactions +is-utes
Issue: Is t*e aut*orit7 to grant -u.lic utilit7 franc*ise an eFclusi:e legislati:e
-o2er> )an it .e +elegate+> Is a congressional franc*ise necessar7 .efore a
-u.lic utilit7 ,a7 o-erate>
Ruling: A franc*ise is .asicall7 a legislati:e grant of a s-ecial -ri:ilege to a
-erson" 2*ic* inclu+es not onl7 aut*ori9ations issuing +irectl7 fro, )ongress
in t*e for, of statute" .ut also t*ose grante+ .7 a+,inistrati:e agencies to
2*ic* t*e -o2er to grant franc*ise *as .een +elegate+ .7 )ongress !*e
-o2er to aut*ori9e an+ control a -u.lic utilit7 is a+,itte+l7 a -rerogati:e t*at
ste,s fro, t*e Legislature An7 suggestion" *o2e:er" t*at onl7 )ongress *as
t*e aut*orit7 to grant a -u.lic utilit7 franc*ise is less t*an accurate As stresse+
in Al.ano : Re7es" t*ere is not*ing in t*e )onstitution re,otel7 in+icating t*e
necessit7 of a congressional franc*ise .efore eac* an+ e:er7 -u.lic utilit7 ,a7
o-erate !*at t*e )onstitution -ro:i+es t*at t*e issuance of a franc*ise"
certificate or ot*er for, of aut*ori9ation for t*e o-eration of a -u.lic utilit7
s*all .e su.@ect to a,en+,ent" alteration or re-eal .7 )ongress +oes not
necessaril7 i,-l7 t*at onl7 )ongress *as t*e -o2er to grant suc*
aut*ori9ation In suc* a case" t*erefore" a s-ecial franc*ise +irectl7e,anating
fro, )ongress is not necessar7 if t*e la2 alrea+7 s-ecificall7 aut*ori9es an
a+,inistrati:e .o+7 to grant a franc*ise or toa2ar+ a contract Un+er t*e #1$%
)onstitution" )ongress *as an eF-licit aut*orit7 to grant a -u.lic utilit7
franc*ise Oo2e:er" it ,a7:ali+l7 +elegate its legislati:e aut*orit7" un+er t*e
-o2er of su.or+inate legislation" to issue franc*ises of certain -u.lic utilities
toso,e a+,inistrati:e agenciesGa,.oa :s !e:es" GR No #%&5%1" Aune 2$"
2'## !*is is a -etition to nullif7 t*e sale of s*ares of stoc? of 4*ili--ine
!eleco,,unications In:est,ent )or-oration B4!I)C .7t*e go:ern,ent of t*e
Re-u.lic of t*e 4*ili--ines" acting t*roug* t*e Inter-Agenc7 4ri:ati9ation
)ouncil BI4)C" to Metro 4acificAssets Ool+ings" Inc BM4AOC" an affiliate of
(irst 4acific )o,-an7 Li,ite+ B(irst 4acificC" a Oong 6ong-.ase+
in:est,ent,anage,ent an+ *ol+ing co,-an7 an+ a s*are*ol+er of t*e
4*ili--ine Long Distance !ele-*one )o,-an7 B4LD!C !*e -etitioner
<uestione+ t*e sale on t*e groun+ t*at it also in:ol:e+ an in+irect sale of #2
,illion s*ares Bor a.out &/-ercent of t*e outstan+ing co,,on s*aresC of
4LD! o2ne+ .7 4!I) to (irst 4acific ;it* t*e t*is sale" (irst 4acific3s
co,,ons*are*ol+ings in 4LD! increase+ fro, /'% -ercent to /% -ercent"
t*ere.7 increasing t*e total co,,on s*are*ol+ings of foreignersin 4LD! to
a.out $#0%H !*is" accor+ing to t*e -etitioner" :iolates Section ##" Article
XII of t*e #1$% 4*ili--ine )onstitution 2*ic*li,its foreign o2ners*i- of t*e
ca-ital of a -u.lic utilit7 to not ,ore t*an 0'HIssue: Is section ##" Article
XII" ena.ling or self-eFecuting> Does t*e ter, Eca-ital in Section ##"
Article refer to t*e total co,,ons*ares onl7 or to t*e total outstan+ing ca-ital
stoc? Bco,.ine+ total of co,,on an+ non-:oting -referre+ s*aresC of 4LD!" a
-u.licutilit7>Ruling:aC Self-eFecuting Section ##" Article XII of t*e
)onstitution" li?e ot*er -ro:isions of t*e )onstitution eF-ressl7 reser:ing
to(ili-inos s-ecific areas of in:est,ent" suc* as t*e +e:elo-,ent of natural
resources an+ o2ners*i- of lan+" e+ucational institutionsan+ a+:ertising
.usiness" is self-eFecuting !*ere is no nee+ for legislation to i,-le,ent t*ese
self-eFecuting -ro:isions of t*e)onstitution !*e rationale 2*7 t*ese
constitutional -ro:isions are self-eFecuting 2as eF-laine+ in Manila 4rince
Ootel : GSIS !o treat Section ##" Article XII of t*e )onstitution as not self-
eFecuting 2oul+ ,ean t*at since t*e #1/5 )onstitution" or o:ert*e last %5
7ears" not one of t*e constitutional -ro:isions eF-ressl7 reser:ing s-ecific
areas of in:est,ents to cor-orations" at least &'-ercent of t*e Eca-ital of
2*ic* is o2ne+ .7 (ili-inos" 2as enforcea.le In s*ort" t*e fra,ers of t*e
#1/5" #1%/ an+ #1$%)onstitutions ,isera.l7 faile+ to effecti:el7 reser:e to
(ili-inos s-ecific areas of in:est,ent" li?e t*e o-eration .7 cor-orations
of-u.lic utilities" t*e eF-loitation .7 cor-orations of ,ineral resources" t*e
o2ners*i- .7 cor-orations of real estate" an+ t*eo2ners*i- of e+ucational
institutions All t*e legislatures t*at con:ene+ since #1/5 also ,isera.l7 faile+
to enact legislations toi,-le,ent t*ese :ital constitutional -ro:isions t*at
+eter,ine 2*o 2ill effecti:el7 control t*e national econo,7" (ili-inos
orforeigners !*is )ourt cannot allo2 suc* an a.sur+ inter-retation of t*e
)onstitution.C It refers to t*e total )o,,on s*ares !*e -etition an+ rule t*at
t*e ter, Eca-ital in Section ##" Article XII of t*e #1$%)onstitution refers
onl7 to s*ares of stoc? entitle+ to :ote in t*e election of +irectors" an+ t*us in
t*e -resent case onl7 to co,,ons*ares" an+ not to t*e total outstan+ing ca-ital
stoc? Bco,,on an+ non-:oting -referre+ s*aresC Res-on+ent )*air-erson of
t*eSecurities an+ EFc*ange )o,,ission is +irecte+ to a--l7 t*is +efinition of
t*e ter, Eca-ital in +eter,ining t*e eFtent of allo2a.leforeign o2ners*i- in
res-on+ent 4*ili--ine Long Distance !ele-*one )o,-an7" an+ if t*ere is a
:iolation of Section ##" Article XII oft*e )onstitution" to i,-ose t*e
a--ro-riate sanctions un+er t*e la2 NNIn+is-uta.l7" construing t*e ter,
Eca-ital in Section ##"Article XII of t*e )onstitution to inclu+e .ot* :oting
an+ non-:oting s*ares 2ill result in t*e a.@ect surren+er of
ourteleco,,unications in+ustr7 to foreigners" a,ounting to a clear a.+ication
of t*e State3s constitutional +ut7 to li,it control of-u.lic utilities to (ili-ino
citi9ens Suc* an inter-retation certainl7 runs counter to t*e constitutional
-ro:ision reser:ing certainareas of in:est,ent to (ili-ino citi9ens" suc* as t*e
eF-loitation of natural resources as 2ell as t*e o2ners*i- of lan+"
e+ucationalinstitutions an+ a+:ertising .usinesses !*e )ourt s*oul+ ne:er
o-en to foreign control 2*at t*e )onstitution *as eF-ressl7 reser:e+to
(ili-inos for t*at 2oul+ .e a .etra7al of t*e )onstitution an+ of t*e national
interest !*e )ourt ,ust -erfor, its sole,n +ut7 to+efen+ an+ u-*ol+ t*e
intent an+ letter of t*e )onstitution to ensure" in t*e 2or+s of t*e )onstitution"
Ea self-reliant an+in+e-en+ent national econo,7 effecti:el7 controlle+ .7
(ili-inos NN
Section #& GO)) an+ Econo,ic Via.ilit7:=S4 :s )OA" GR No #%%#/#"
Aune %" 2'##(acts: !*e )OA issue+ a resolution in #111 +efining its -olic7
2it* res-ect to t*e au+it of t*e =o7 Scouts of t*e 4*ili--ine" 2*ic*2as create+
as a -u.lic cor-oration an+ t*at in =S4 :sNLR)" t*e S) rule+ t*at t*e =S4"
as constitute+ un+er its c*arter" 2as aGO)) 2it*in t*e ,eaning of Art IX B=C
B2C B#C of t*e )onstitution" an+ t*at t*e =S4 is regar+e+ as a go:ern,ent
instru,entalit7un+er t*e A+,inistrati:e )o+e (or t*e -ur-oses of au+it
su-er:ision" t*e =S4 s*all .e classifie+ a,ong t*e go:ern,entcor-orations to
.e au+ite+ .7 e,-lo7ing t*e tea, au+it a--roac* !*e =S4 soug*t
reconsi+eration of t*e )OA Resolution in a lettersigne+ .7 t*en =S4 National
4resi+ent Ae@o,ar ) =ina7" sa7ing t*at it is not su.@ect to t*e )OA3s
@uris+ictionIssues: aC Is )A no ###" as a,en+e+ .7 RA %2%$ constitutional
an+ consistent 2it* section #&" Article XII of t*e constitution> .C Does t*e
test of econo,ic :ia.ilit7 a--l7 to -u.lic cor-orations +ealing 2it*
go:ern,ental functions>Ruling: aC Ies !*e =S4 B)A no ###" as a,en+e+ .7
RA %2%$C is a -u.lic cor-oration or a go:ern,ent agenc7 or
instru,entalit72it* @uri+ical -ersonalit7" 2*ic* +oes not fall 2it*in t*e
constitutional -ro*i.ition in Article XII" Section #&" not2it*stan+ing
t*ea,en+,ents to its c*arter Not all cor-orations" 2*ic* are not go:ern,ent
o2ne+ or controlle+" are i-so facto to .e consi+ere+-ri:ate cor-orations as
t*ere eFist anot*er +istinct class of cor-orations or c*artere+ institutions 2*ic*
are ot*er2ise ?no2n as8-u.lic cor-orations8 !*ese cor-orations are treate+
.7 la2 as agencies or instru,entalities of t*e go:ern,ent 2*ic* are not
su.@ectto t*e tests of o2ners*i- or control an+ econo,ic :ia.ilit7 .ut to
+ifferent criteria relating to t*eir -u.lic -ur-osesJinterests orconstitutional
-olicies an+ o.@ecti:es an+ t*eir a+,inistrati:e relations*i- to t*e go:ern,ent
or an7 of its De-art,ents or Offices .C No Section #&" Article XII +eals 2it*
Et*e for,ation" organi9ation" or regulation of -ri:atecor-orations" 2*ic*
s*oul+ .e +one t*roug* a general la2 enacte+ .7 )ongress" -ro:i+es for an
eFce-tion" t*at is: if t*ecor-oration is go:ern,ent o2ne+ or controlle+K its
creation is in t*e interest of t*e co,,on goo+K an+ it ,eets t*e test of
econo,ic:ia.ilit7 !*e rationale .e*in+ Article XII" Section #& of t*e #1$%
)onstitution 2as eF-laine+ in (eliciano : )o,,ission on Au+it"Art XII" Sec
#& .ans t*e creation of -ri:ate cor-orations .7 s-ecial la2" *o2e:er sai+
constitutional -ro:ision s*oul+ not .econstrue+ so as to -ro* t*e creation
of -u.lic cor-orations or a cor-orate agenc7 or instru,entalit7 of t*e
go:ern,ent inten+e+to ser:e a -u.lic interest or -ur-ose !*is s*oul+ not .e
,easure+ on t*e .asis of econo,ic :ia.ilit7" .ut accor+ing to t*e
-u.licinterest or -ur-ose it ser:es as en:isione+ .7 -ar 2" Art 00 of t*e )i:il
)o+e" an+ of t*e A+,inistrati:e )o+eRe-u.lic :s )it7 of 4arana<ue" GR
no #1##'1" Aul7 #$" 2'#2 !*is is a -etition for re:ie2 on certiorari un+er Rule
05 of t*e #11% Rules of )i:il 4roce+ure" on -ure <uestions of la2"assailing t*e
Aanuar7 $" 2'#' Or+er of t*e Regional !rial )ourt" =ranc* #15" 4arafia<ue
)it7 BR!)C" 2*ic* rule+ t*at -etitioner4*ili--ine Recla,ation Aut*orit7
B4RAC is a go:ern,ent-o2ne+ an+ controlle+ cor-oration BGO))C" a taFa.le
entit7" an+" t*erefore" not eFe,-t fro, -a7,ent of real -ro-ert7 taFes !*e
-ertinent -ortion of t*e sai+ or+er rea+s: In :ie2 of t*e fin+ing of t*is
courtt*at -etitioner is not eFe,-t fro, -a7,ent of real -ro-ert7 taFes"
res-on+ent 4araRa<ue )it7 !reasurer Li.erato M )ara.eo +i+ notact FFF
2it*out or in eFcess of @uris+iction" or 2it* gra:e a.use of +iscretion
a,ounting to lac? or in eFcess of @uris+iction in issuingt*e 2arrants of le:7 on
t*e su.@ect -ro-erties On August /" 2''1" after an eFc*ange of se:eral
-lea+ings an+ t*e failure of .ot* -arties to arri:e at a co,-ro,iseagree,ent"
4RA file+ a Motion for Lea:e to (ile an+ A+,it Attac*e+ Su--le,ental
4etition 2*ic* soug*t to +eclare as null an+ :oi+t*e assess,ent for real
-ro-ert7 taFes" t*e le:7 .ase+ on t*e sai+ assess,ent" t*e -u.lic auction sale
con+ucte+ on A-ril %" 2''/" an+t*e )ertificates of Sale issue+ -ursuant to t*e
auction sale On Aanuar7 $" 2'#'" t*e R!) ren+ere+ its +ecision +is,issing
4RA3s-etition In ruling t*at 4RA 2as not eFe,-t fro, -a7,ent of real
-ro-ert7 taFes" t*e R!) reasone+ out t*at it 2as a GO)) un+erSection / of
4D No #'$0 It 2as organi9e+ as a stoc? cor-oration .ecause it *a+ an
aut*ori9e+ ca-ital stoc? +i:i+e+ into no -ar:alue s*ares Not in confor,it7"
4RA file+ t*is -etition for certiorari assailing t*e Aanuar7 $" 2'#' R!) Or+er
.ase+ on t*e follo2ingGROUNDSIssue: Is t*e 4*ili--ine Recla,ation
Aut*orit7 a go:ern,ent-o2ne+ an+ controlle+ cor-oration BGO))C un+er
Sec #&" Article XII>Ruling: A GO)) ,ust *a:e .een organi9e+ as a stoc? or
non-stoc? cor-oration !*e 4*ili--ine Recla,ation Aut*orit7 is neit*er Itis
not a GO));*en t*e la2 :ests in a go:ern,ent instru,entalit7 cor-orate
-o2ers" t*e instru,entalit7 +oes not necessaril7 .eco,e acor-oration Unless
t*e go:ern,ent instru,entalit7 is organi9e+ as a stoc? or non-stoc?
cor-oration" it re,ains a go:ern,entinstru,entalit7 eFercising not onl7
go:ern,ental .ut also cor-orate -o2ers In t*e case at .enc*" 4RA is not a
GO)) .ecause it isneit*er a stoc? nor a non-stoc? cor-oration (urt*er,ore"
t*ere is anot*er reason 2*7 t*e 4RA cannot .e classifie+ as a GO))Section
#&" Article XII of t*e #1$% )onstitution -ro:i+es as follo2s: ESection #&
!*e )ongress s*all not" eFce-t .7 general la2"-ro:i+e for t*e for,ation"
organi9ation" or regulation of -ri:ate cor-orations Go:ern,ent-o2ne+ or
controlle+ cor-orations ,a7 .ecreate+ or esta.lis*e+ .7 s-ecial c*arters in t*e
interest of t*e co,,on goo+ an+ su.@ect to t*e test of econo,ic
:ia.ilit7 NN!*e fun+a,ental -ro:ision a.o:e aut*ori9es )ongress to create
GO))s t*roug* s-ecial c*arters on t2o con+itions: #C t*e GO)),ust .e
esta.lis*e+ for t*e co,,on goo+K an+ 2C t*e GO)) ,ust ,eet t*e test of
econo,ic :ia.ilit7 In t*is case" 4RA ,a7 *a:e-asse+ t*e first con+ition of
co,,on goo+ .ut faile+ t*e secon+ one P econo,ic :ia.ilit7 Un+ou.te+l7"
t*e -ur-ose .e*in+ t*ecreation of 4RA 2as not for econo,ic or co,,ercial
acti:ities Neit*er 2as it create+ to co,-ete in t*e ,ar?et -lace
consi+eringt*at t*ere 2ere no ot*er co,-eting recla,ation co,-anies .eing
o-erate+ .7 t*e -ri:ate sector As ,entione+ earlier" 4RA 2ascreate+
essentiall7 to -erfor, a -u.lic ser:ice consi+ering t*at it 2as -ri,aril7
res-onsi.le for a coor+inate+" econo,ical an+efficient recla,ation"
a+,inistration an+ o-eration of lan+s .elonging to t*e go:ern,ent 2it* t*e
o.@ect of ,aFi,i9ing t*eirutili9ation an+ *astening t*eir +e:elo-,ent
consistent 2it* t*e -u.lic interestNNSection #% !e,-orar7 !a?e P O:er:2'##
=AR:!*e 4resi+ent issue+ an eFecuti:e or+er +irecting all +e-art,ent *ea+s to
secure *is consent .efore agreeing to a--ear +uring<uestion *our .efore
)ongress on ,atters -ertaining to t*eir +e-art,ents Is t*e eFecuti:e or+er
unconstitutional for su--ressinginfor,ation of -u.lic concern> !*e ans2er is
BAC No" .ecause t*ose +e-art,ent *ea+s are *is alter egos an+ *e is .ut
eFercising *is rig*t against self-incri,ination B=C Ies" t*e 4resi+ent cannot
control t*e initiati:e of t*e +e-art,ent *ea+s to confor, 2it* t*e o:ersig*t
function of )ongress B)C Ies" t*e 4resi+ent cannot 2it**ol+ consent to t*e
initiati:e of *is +e-art,ent *ea+s as it 2ill :iolate t*e -rinci-le of c*ec? an+
.alance BDC No" t*e 4resi+ent *as t*e -o2er to 2it**ol+ consent to
a--earance .7 *is +e-art,ent *ea+s +uring <uestion