(National Economy and Patrimony IMonday, 15 February2021 6:15 PM IGAbad This is a product of the author's lecture notes condensed from the books of Isagani Cruz's and Fr. Bernas’ Political law and Constitutional Law, respectively, and from Judge Herson Valmores' class lectures and slides. Topics are arranged as per syllabus format (Judge Valmores-SMU COL). Found in Article XI in 1987 Constitution Three General Principles 1. Natural Resources are owned by the State © Regalian Doctrine or Jura Regalia- All lands of the public domain, waters, minerals, coal , petroleum and other mineral oils, all forces of potential energy, fisheries, forests .timber, wildlife, flora, and faunas, and other natural resources are owned by the State - Aproduct of conquest - 1987 Constitution strips of monarchial undertones - Inasmuch as the State is the owner of all lands, all rights must emanate from the .. + Exception: The Concept of Native Title (Carino Doctrine: Carino v. Insular Government) Lands and domains held prior to the Spanish conquest under a claim of private ownership are presumed to have never been public lands and are private 3. The sole exception to the Regalian Doctrine © Lands of the Public Domain: 1) Agricultural Lands; 2) Forest or timber lands; 3) Mineral Lands; 4) National Parks + Only Agricultural lands are alienable subject to limitations ‘A. Private corporations or associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding 25 years, renewable for not more that 25 years, and not to exceed 1,000 ha in area. + Only natural persons may own agricultural lands + Private corporations may have more than what is allowed . It can be used by unscrupulous individuals B. Citizens of the Philippines may lease not more than 500 ha, or acquire not more than 12 ha thereof by purchase, homestead, or grant © Private Lands: Lands of the public domain alienated and given by the State to a Filipino citizen, + General rule: only Filipino citizens may own private lands in the Philippines + Exceptions: 1 Section 7, Article XII: Foreigners may own private lands via hereditary succession © Section 8 Article XI: “A natural-born citizen of the Philippines who has lost his citizenship may be a transferee of private lands, subject to limitations provided by law." Thus unders Section 5 of the Foreign Investment Act (RA 8179), they may be a transferee of a private land up to a maximum of 5,000 square meters in URBAN LAND, or three ha of RURAL LAND for business or other purposes.= Laurel v. Garcia: Roppongi Property. Lands forming part of the reparation agreement with Japan. SC: Itis considered part of public dominion. It has to be classified first as an alienable land. + The classification of public lands is an exclusive executive prerogative of the executive department, through the Office of the President and not to the courts. It is. therefore. OPTIONS AVAILABLE TO THE STATE OF THE EXPLOITATION, DEVELOPMENT, AND UTILIZATION OF NATURAL RESOURCES 1. The State may directly undertake EDU activities 2. Itmay enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least 60 per centum of whose capital is owned by such citizens. Such agreements may be for a period not exceeding 25 years, and under such terms and conditions as may be provided by law. 3. The Congress, may by law, allow small-scale utilization of natural resources by Filipino citizens, as well as cooperative fish farming, with priority to subsistence fishermen and fishworkers in rivers, lakes, bays and lagoons. 4, The President may enter into agreements with foreign-owned corporations involving either technical or financial assistance for large-scale exploration, development. and utilization of minerals, petroleum, and other mineral oils according to the general terms and conditions provided by law, based on real contributions to the economic growth and general welfare of the country. + Philippine Mining Act + La Bugal Blan Case: questioned the constitutionality of the Philippine Mining Act on the ground that itis basically a surrender on the part of the State of its EDU to foreign corporations. SC: declared it as constitutional upon motion for reconsideration ~ Under the FTAA, the foreign contractor provides capital technology and technical know-how, and management expertise while the government. through its agencies (DENR and Mines and Geosciences Bureau) actively exercises control and supervision over the entire operation. Moreover, the FTAA is subject to th following constitutional safeguard: > It shall be crafted in accordance with the general terms and conditions set by Congress in a law > Itis signed by the President who is presumed to have vetted the contractor and ensured that the terms of the agreement is in accordance with law » + Chavez v. Amari: PEA- Amari deal. Amended Joint Venture Agreement between PEA and Amari, The part of Manila bay where there a portion has been partially reclaimed by the PEA. Amari will pay to PEA P1.9B as reimbursement of the cost of the reclamation of the cost of the 157.84ha Freedom Islands in Manila Bay, as a result; ownership of 77.34 ha therof will be transferred to Amari. Triggered investigation in the Senate. PEA was regarded as “grandmother of all scams” Sold the land for P1,200/sq meter and the nearby land cost only P90,000.00.~ Whatis the nature of a reclaimed land? - LESSON FROM THE CASE OF CHAVEZ V. AMARI 1. Foreshore and submerged areas form part of the public dornain. In that state it is beyond the commerce of man; 2. Lands reclaimed from foreshore and submerged areas form part of the public domain and are inalienable; - Cannot be disposed of 3, Reclaimed lands retain their inherent potential as areas for public use or public service until there is a formal declaration from the government to the contrary; - It shall be reclassified into an alienable land 4, Reclaimed lands can only be alienated if it is converted, pursuant to law, into alienable and disposable land of the public domain and is declared no longer needed for public service; and 5. Only Filipino citizens could be a transferee of a reclaimed land which was declared alienable and is released from public use or public service, Private corporations are barred from being a transferee of a reclaimed land which meets the foregoing requirements ‘They may only be allowed to lease pursuant to Section 3, Article XII of the Constitution, = Maximum of 12 ha; ~ Such transfer is void for being contrary to Sec. 2 Article XII of the 1987 Constitution which prohibits the alienation of natural resources other than agricultural lands of the public domain, Ramirez v. Ramirez: The naked owner and the beneficial owner. The naked owner owns the land but the fruits thereof belongs to the latter. Rellosa v. Gaw Chee Hun: After selling the land to Gaw Chee Hun, he retained as a lessee thereto, He late learned that foreigners cannot own nor buy land, he sought to recover the land sold. SC said that Rellosa is barred from the same. In pari delicto, he cannot get the land back because he benefitted from it. Gaw Chee cannot town the same. The land now belonged to the State. Frenzel v. Catito: Frenzel is a foreign national married to Catito. The former gave money to latter to buy land. Marriage turned sour and he sought to recover the money. Muller v. Muller: Foreigner-Filipina married. Conjugal money they bough a property. Filipina sold the property against the will of the husband, arguing he is a conjugal owner. Cheesman v. IAC: Foreigner- Filipina. Filipina wants to rent Matthews v Taylor: Foreigner- Fi ~ SC: Ruled that the legal personality of the husband is not party thereto as the law provides that they cannot own property. Seeking for the recovery of money, tantamount of giving them lands. ~ Exception to in pari delicto: Phil Banking v. Lui She. Filipina, renting is close to the foreign national. Had the favor of leasing the land. Can a filipino lease a real estate to foreign nationals? No legal prohibition. Filipino is still the owner. No conferment of ownership.But lease for 99 years cannot acquire ownership. To be bought after 50 years. Agreement derogates the law. No in pati delicto because both parties died. The Successors of both parties are Filipinos. + Hulstv PR builders: May foreigner own a condominium unit in the PH? Condo unit owner has a separate entity and the condo unit holder as long as 60% holders are © Filipinized Industries/Business 60:40. Foreigners max of 40% Section 11, Article XII Public utilities; J.G. Summit Holding v. CA. GR no. 124293, 24-03-2003. The COO is a chinese national. SC: the executive and managing officers must be Filipino citizens HB No. 78 was approved on 10 Mar 2020 - seeks to limit the term "public utility" to the distribution and transmission f electricity, water pipeline distribution and sewage pipelines. Is this in accord with the Constitution? (. Carpio) The Constitution does not provide for the definition of “public utilities." SC has the power to define the same. Wilson P. Gamboa v. Finance Secretary: “Preferred Shares” v. "Common Shares” The former are shares of stocks without voting rights, the latter has voting rights. PLDT Most of the preferred shares of stocks were held by foreigners by almost 99%, - Mere legal title is insufficient to meet the 60 percent Filipino-owned “capital” required in the Constitution. Full beneficial ownership of 60 percent of the ‘outstanding capital stock, coupled with 60 percent of the voting rights, is required. The legal and beneficial ownership of 60 percent of the outstanding capital stock must rest in the hands of Filipino nationals in accordance with the constitutional mandate. Otherwise, the corporation is “considered as non- Philippine nationals.” ~ The 60:40 requirement must be met both by the common and preferred shares 2. The Constitution gives preferential right to Filipinos on matters of national economy and patrimony 3. The present Constitution seeks to establish a national regime that is favorable to the Filipino people