Lopez, Virnadette L.

LAW 1932250

Association of Small Landowners vs Secretary of Agrarian Reform

1989-07-14 | G.R. Nos. 78742, 79310, 79744, and 79777

FACTS: On July 10, 1988, RA No. 6657, also known as Comprehensive Agrarian Reform Law of 1988
was signed into law by then President Corazon Aquino.

Prior from such law, R.A. No. 3844, otherwise known as the Agricultural Land Reform Code,
had already been enacted by the Congress of the Philippines on August 8, 1963, in line with
the above-stated principles. This was substantially superseded almost a decade later by P.D.
No. 27, which was promulgated on October 21, 1972, along with martial law, to provide for
the compulsory acquisition of private lands for distribution among tenant-farmers and to
specify maximum retention limits for landowners.

The people power revolution of 1986 did not change and indeed even energized the thrust
for agrarian reform. Thus, on July 17, 1987, President Corazon C. Aquino issued E.O. No. 228,
declaring full land ownership in favor of the beneficiaries of P.D. No. 27 and providing for the
valuation of still unvalued lands covered by the decree as well as the manner of their
payment. This was followed on July 22, 1987 by Presidential Proclamation No. 131, instituting
a comprehensive agrarian reform program (CARP), and E.O. No. 229, providing the mechanics
for its implementation.

Several petitions had been filed questioning the constitutionality of the said passed law.

ISSUES: Whether or not PD 27, EO 228 and RA 6657 is a valid exercise of police and eminent domain?

RULING: Yes, the above proclamation, executive order and law is a valid exercise of police power and
eminent domain. With regard to valid police power, it satisfies the 2 requisites which is lawful
subject and lawful means.

As to eminent domain, the requirement for public use has already been settled for us by the
Constitution itself. No less than the 1987 Charter calls for agrarian reform, which is the reason
why private agricultural lands are to be taken from their owners, subject to the prescribed
maximum retention limits. The purposes specified in P.D. No. 27, Proc. No. 131 and R.A. No.
6657 are only an elaboration of the constitutional injunction that the State adopt the
necessary measures to encourage and undertake the just distribution of all agricultural lands
to enable farmers who are landless to own directly or collectively the lands they till.

Just compensation should be determined by DAR, however, it could still be contested and
raised to courts. However, the compensation of less money than the actual value of property
is considered valid because the Constitution is aware of the financial limitations of the
government. Furthermore, distributing said land is considered just share of the farmers and
validly and constitutionally allowed to be distributed to the farmers.