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Daez vs. Court of Appeals (325 SCRA 856) it ruled in favor of Daez.

Aggrieved, the private respondents sought a review
Topic: Section 6 of RA 6657 of the decision before the CA which reversed the OP’s decision.

Facts: Issue: W/N the heirs of Eudosia Daez may exercise their right of retention over
Daez and her husband declared, in the affidavit they executed, ownership over the 4.1 hectares of Riceland.
41.8 hectares of agricultural lands and 14 hectares of Riceland 16 hectares of
forestland and 10 hectares of “batuhan” and 1.8 hectares of residential lands. Ruling: 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
The 4.1 of 14 hectares of Riceland which is being cultivated by the compulsory land acquisition by balancing the rights of the land owner and the
respondents Soriente Macatulad, Mediana and Umali under sa system of tenant and by implementing the doctrine that social justice was not meant to
shared-tenancy was subjected to the “Operation Land Transfer Program” perpetrate an injustice against the landowner.
under PD 27 as amended by LOI 474.
In the landmark case of Association of Small Landowners of the Phils vs. Sec.
The Ministry of Agrarian reform acquired the subject Riceland and issued of Agrarian reform, the Court held that landowners who have not yet exercised
Certificates of Land Transfer (CLT) to respondents as beneficiaries. In 1981, their retention rights under PD 27 are entitled to new retention under RA
respondents signed an affidavit, allegedly under duress, stating that they are 6657.
hired laborers not shared-tenants. Daez, armed with such document applied
for the exemption of said Riceland from PD 27’s coverage due to non-tenancy Sec 6 of RA 6654 reads:
and for the cancellation of the CLTs issued.
SECTION 6. Retention Limits. — Except as otherwise provided in this Act, no
The DAR Undersecretary denied Daez’s application for exemption upon person may own or retain, directly or indirectly, any public or private
finding that her subject land is covered under the LOI 474 because of her agricultural land, the size of which shall vary according to factors governing a
ownership of agricultural lands exceeding 7 hectares. viable family-size farm, such as commodity produced, terrain, infrastructure,
In a request for reconsideration, the DAR Secretary affirmed the assailed order and soil fertility as determined by the Presidential Agrarian Reform Council
upon finding that respondents are bona fide tenants of the subject land and (PARC) created hereunder, but in no case shall retention by the landowner
that the affidavit executed by them were made under duress. exceed five (5) hectares.

The Court of Appeals sustained the DAR Secretary’s decision and upon Three (3) hectares may be awarded to each child of the landowner, subject to
pursuing her petition before the SC, the same was denied as well as the the following qualifications: (1) that he is at least fifteen (15) years of age; and
subsequent MR. (2) that he is actually tilling the land or directly managing the farm: Provided,
That landowners whose lands have been covered by Presidential Decree No. 27
In 1992, DAR issued Emancipation Patents to private respondents which they shall be allowed to keep the areas originally retained by them thereunder:
later presented with the Register of Deeds. Eventually they were issued TCTs. 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
Daez filed an application for retention of the same Riceland this time under RA Act shall retain the same areas as long as they continue to cultivate said
6657. The DAR Director allowed retention of Riceland but denied the homestead.
application of her 8 children to retain 3 hectares each for their failure to prove
actual tillage of the land or its direct management. The DAR Secretary set aside The right to choose the area to be retained, which shall be compact or
the order of DAR’s Director. On appeal before the Office of the President (OP), contiguous, shall pertain to the landowner: Provided, however, That in case the
area selected for retention by the landowner is tenanted, the tenant shall have

In case the tenant chooses to be a beneficiary in another agricultural land.the option to choose whether to remain therein or be a beneficiary in the same hereby REINSTATED. WHEREFORE. Section 6 of RA 6657 defines the nature and incidents of a landowner’s right of retention. management. Without doubt. disposition. Admin Order No. The decision of the CA is REVERSED and SET ASIDE and the Decision of the Office of the President is . of or another agricultural land with similar or comparable features. In the implementation of said decision.4 series of 1991 likewise recognizes no limit to the prerogative of the land owner. he shall be considered a rights under Section 6 RA 6657. The tenant must exercise this option within a period of one (1) year from the time the landowner manifests his choice of the area for retention. In the instant case. The TCTs thus issued on the basis of those CLTs cannot operate to defeat the right of the heirs of deceased Eudosia Daez to retain the 4. contract or transfer of possession of private lands executed by the original landowner in violation of the Act shall be null and void: Provided. Thereafter. any sale. the security of tenure of the farmers or farmworkers on the land prior to the approval of this Act shall be respected. In all cases. he loses his right as a leaseholder to the land retained by the landowner.1 hectares of Riceland. lease. however. leaseholder and shall lose his right to be a beneficiary under this Act. the Dept. What must be protected 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. a landowner’s choice of the area to be retained must prevail. Upon the effectivity of this Act. For a long as the area retained is compact or contiguous and it does not exceed the retention ceiling of 5 hectares. the instant petition is hereby GRANTED. this right of retention may be exercised over tenanted land despite the issuance of CLT to farmer-beneficiaries. the CLTs of private respondents were issued without Daez’s having been accorded her right of choice as to what to remain among her landholdings. That those executed prior to this Act shall be valid only when registered with the Register of Deeds within a period of three (3) months after the effectivity of this Act. In case the Agrarian Reform is hereby ORDERED to fully accord private respondents their tenant chooses to remain in the retained area. all Registers of Deeds shall inform the Department of Agrarian Reform (DAR) within thirty (30) days of any transaction involving agricultural lands in excess of five (5) hectares.