Chavez v. Pea and Amari submerged areas.

Only then can these lands qualify as agricultural

lands of the public domain, which are the only natural resources the
Fact: government can alienate. In their present state, the 592.15
In 1973, the Comissioner on Public Highways entered into a hectares of submerged areas are inalienable and outside the
contract to reclaim areas of Manila Bay with the Construction and commerce of man.
Development Corportion of the Philippines (CDCP).
3. Since the Amended JVA seeks to transfer to AMARI, a private
PEA (Public Estates Authority) was created by President Marcos corporation, ownership of 77.34 hectares110 of the Freedom
under P.D. 1084, tasked with developing and leasing reclaimed Islands, such transfer is void for being contrary to Section 3, Article
lands. These lands were transferred to the care of PEA under P.D. XII of the 1987 Constitution which prohibits private corporations
1085 as part of the Manila Cavite Road and Reclamation Project from acquiring any kind of alienable land of the public domain.
(MCRRP). CDCP and PEA entered into an agreement that all
future projects under the MCRRP would be funded and owned by 4. Since the Amended JVA also seeks to transfer to AMARI
PEA. ownership of 290.156 hectares111 of still submerged areas of
Manila Bay, such transfer is void for being contrary to Section 2,
By 1988, President Aquino issued Special Patent No. 3517 Article XII of the 1987 Constitution which prohibits the alienation of
transferring lands to PEA. It was followed by the transfer of three natural resources other than agricultural lands of the public domain.
Titles (7309, 7311 and 7312) by the Register of Deeds of
Paranaque to PEA covering the three reclaimed islands known as PEA may reclaim these submerged areas. Thereafter, the
the FREEDOM ISLANDS. government can classify the reclaimed lands as alienable or
disposable, and further declare them no longer needed for public
Subsquently, PEA entered into a joint venture agreement (JVA) service. Still, the transfer of such reclaimed alienable lands of the
with AMARI, a Thai-Philippine corporation to develop the Freedom public domain to AMARI will be void in view of Section 3, Article XII
Islands. Along with another 250 hectares, PEA and AMARI entered of the 1987Constitution which prohibits private corporations from
the JVA which would later transfer said lands to AMARI. This acquiring any kind of alienable land of the public domain.
caused a stir especially when Sen. Maceda assailed the
agreement, claiming that such lands were part of public domain
(famously known as the “mother of all scams”).
Peitioner Frank J. Chavez filed case as a taxpayer praying for
mandamus, a writ of preliminary injunction and a TRO against the
sale of reclaimed lands by PEA to AMARI and from implementing
the JVA. Following these events, under President Estrada’s admin,
PEA and AMARI entered into an Amended JVA and Mr. Chaves
claim that the contract is null and void.
Issue:
w/n: the transfer to AMARI lands reclaimed or to be reclaimed as
part of the stipulations in the (Amended) JVA between AMARI and
PEA violate Sec. 3 Art. XII of the 1987 Constitution
w/n: the court is the proper forum for raising the issue of whether
the amended joint venture agreement is grossly disadvantageous
to the government.
Held:
On the issue of Amended JVA as violating the constitution:
1. 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. PEA may lease these lands to
private corporations but may not sell or transfer ownership of these
lands to private corporations. PEA may only sell these lands to
Philippine citizens, subject to the ownership limitations in the 1987
Constitution and existing laws.
2. The 592.15 hectares of submerged areas of Manila Bay remain
inalienable natural resources of the public domain until classified as
alienable or disposable lands open to disposition and declared no
longer needed for public service. The government can make such
classification and declaration only after PEA has reclaimed these
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