Francisco Chavez vs Public Estates Authority (July 2002)

384 SCRA 152 – Civil Law – Land Titles and Deeds – Lands
of the Public Domain

The Public Estates Authority (PEA) is the central

implementing agency tasked to undertake reclamation
projects nationwide. It took over the leasing and selling
functions of the DENR (Department of Environmental and
Natural Resources) insofar as reclaimed or about to be
reclaimed foreshore lands are concerned.

PEA sought the transfer to the Amari Coastal Bay and

Development Corporation, a private corporation, of the
ownership of 77.34 hectares of the Freedom Islands. PEA
also sought to have 290.156 hectares of submerged areas
of Manila Bay to Amari.

ISSUE: Whether or not the transfer is valid.

HELD: No. To allow vast areas of reclaimed lands of the

public domain to be transferred to Amari as private lands
will sanction a gross violation of the constitutional ban on
private corporations from acquiring any kind of alienable
land of the public domain.

The Supreme Court affirmed that the 157.84 hectares of

reclaimed lands comprising the Freedom Islands, now
covered by certificates of title in the name of PEA, are
alienable lands of the public domain. The 592.15 hectares
of submerged areas of Manila Bay remain inalienable
natural resources of the public domain. The transfer (as
embodied in a joint venture agreement) to AMARI, a
private corporation, ownership of 77.34 hectares of the
Freedom Islands, is void for being contrary to Section 3,
Article XII of the 1987 Constitution which prohibits private
corporations from acquiring any kind of alienable land of
the public domain. Furthermore, since the Amended JVA
also seeks to transfer to Amari ownership of 290.156
hectares of still submerged areas of Manila Bay, such
transfer is void for being contrary to Section 2, Article XII
of the 1987 Constitution which prohibits the alienation of
natural resources other than agricultural lands of the
public domain.