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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
1. Association of Transfer of In G.R. No. 79744: WON CARL violates due NO. The recognized rule, indeed, is that title to the property
Small Landowners Private and On September 3, 1986, the petitioner process because expropriated shall pass from the owner to the expropriator
in the Philippines Public Lands to protested the erroneous inclusion of his landowner is divested of only upon full payment of the just compensation.
v. Secretary of Farmer small landholding under Operation Land his property even before Jurisprudence on this settled principle is consistent both here
Agrarian Reform, Beneficiaries transfer and asked for the recall and actual payment to him in and in other democratic jurisdictions.
G.R. No. 78742, cancellation of the Certificates of Land full of just compensation,
Jul 14, 1989, Transfer in the name of the private in contravention of a well- It is true that P.D. No. 27 expressly ordered the emancipation
175 SCRA 343 respondents. accepted principle of of tenant-farmer as October 21, 1972 and declared that he
En Banc The petitioner contends that the issuance of eminent domain shall "be deemed the owner" of a portion of land consisting of
Cruz, J. E.0. Nos. 228 and 229 shortly before a family-sized farm except that "no title to the land owned by
Congress convened is anomalous and him was to be actually issued to him unless and until he had
arbitrary, besides violating the doctrine of become a full-fledged member of a duly recognized farmers'
separation of powers. cooperative." It was understood, however, that full payment
The petitioner also invokes his rights not to of the just compensation also had to be made first,
be deprived of his property without due conformably to the constitutional requirement.
process of law and to the retention of his
small parcels of riceholding as guaranteed When E.O. No. 228, categorically stated in its Section 1 that:
under Article XIII, Section 4 of the
Constitution All qualified farmer-beneficiaries are now deemed full owners
as of October 21, 1972 of the land they acquired by virtue of
Presidential Decree No. 27.
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
Republic Act No. 6657, the Comprehensive Agrarian Reform Law of 1988 (CARL), provides for two (2) modes of acquisition of private land: compulsory and voluntary. The procedure for the
compulsory acquisition of private lands is set forth in Section 16 of R.A. 6657, viz:
Sec. 16. Procedure for Acquisition of Private Lands. — For purposes of acquisition of private lands, the following procedures shall be followed:
a). After having identified the land, the landowners and the beneficiaries, the DAR shall send its notice to acquire the land to the owners thereof, by personal delivery or registered mail, and
post the same in a conspicuous place in the municipal building and barangay hall of the place where the property is located. Said notice shall contain the offer of the DAR to pay a
corresponding value in accordance with the valuation set forth in Sections 17, 18, and other pertinent provisions hereof.
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
b) Within thirty (30) days from the date of receipt of written notice by personal delivery or registered mail, the landowner, his administrator or representative shall inform the DAR of his
acceptance or rejection of the offer.
c) If the landowner accepts the offer of the DAR, the LBP shall pay the landowner the purchase price of the land within thirty (30) days after he executes and delivers a deed of transfer in
favor of the Government and surrenders the Certificate of Title and other muniments of title.
d) In case of rejection or failure to reply, the DAR shall conduct summary administrative proceedings to determine the compensation for the land requiring the landowner, the LBP and other
interested parties to submit evidence as to the just compensation for the land, within fifteen (15) days from receipt of the notice. After the expiration of the above period, the matter is
deemed submitted for decision. The DAR shall decide the case within thirty (30) days after it is submitted for decision.
e) Upon receipt by the landowner of the corresponding payment, or, in case of rejection or no response from the landowner, upon the deposit with an accessible bank designated by the DAR
of the compensation in cash or in LBP bonds in accordance with this Act, the DAR shall take immediate possession of the land and shall request the proper Register of Deeds to issue a
Transfer Certificate of Title (TCT) in the name of the Republic of the Philippines. The DAR shall thereafter proceed with the redistribution of the land to the qualified beneficiaries.
f) Any party who disagrees with the decision may bring the matter to the court of proper jurisdiction for final determination of just compensation.
In the compulsory acquisition of private lands, the landholding, the landowners and the farmer beneficiaries must first be identified. After identification, the DAR shall send a Notice of
Acquisition to the landowner, by personal delivery or registered mail, and post it in a conspicuous place in the municipal building and barangay hall of the place where the property is located.
Within thirty days from receipt of the Notice of Acquisition, the landowner, his administrator or representative shall inform the DAR of his acceptance or rejection of the offer. If the
landowner accepts, he executes and delivers a deed of transfer in favor of the government and surrenders the certificate of title. Within thirty days from the execution of the deed of transfer,
the Land Bank of the Philippines (LBP) pays the owner the purchase price. If the landowner rejects the DAR's offer or fails to make a reply, the DAR conducts summary administrative
proceedings to determine just compensation for the land. The landowner, the LBP representative and other interested parties may submit evidence on just compensation within fifteen days
from notice. Within thirty days from submission, the DAR shall decide the case and inform the owner of its decision and the amount of just compensation. Upon receipt by the owner of the
corresponding payment, or, in case of rejection or lack of response from the latter, the DAR shall deposit the compensation in cash or in LBP bonds with an accessible bank. The DAR shall
immediately take possession of the land and cause the issuance of a transfer certificate of title in the name of the Republic of the Philippines. The land shall then be redistributed to the
farmer beneficiaries. Any party may question the decision of the DAR in the regular courts for final determination of just compensation.
The DAR has made compulsory acquisition the priority mode of the land acquisition to hasten the implementation of the Comprehensive Agrarian Reform Program (CARP). Under Section 16
of the CARL, the first step in compulsory acquisition is the identification of the land, the landowners and the beneficiaries. However, the law is silent on how the identification process must be
made.
Administrative Order No. 12, Series of 1989 requires that the Municipal Agrarian Reform Officer (MARO) keep an updated master list of all agricultural lands under the CARP in his area of
responsibility containing all the required information. The MARO prepares a Compulsory Acquisition Case Folder (CACF) for each title covered by CARP. The MARO then sends the landowner a
"Notice of Coverage" and a "letter of invitation" to a "conference/meeting" over the land covered by the CACF. He also sends invitations to the prospective farmer-beneficiaries the
representatives of the Barangay Agrarian Reform Committee (BARC), the Land Bank of the Philippines (LBP) and other interested parties to discuss the inputs to the valuation of the property
and solicit views, suggestions, objections or agreements of the parties. At the meeting, the landowner is asked to indicate his retention area.
The MARO shall make a report of the case to the Provincial Agrarian Reform Officer (PARO) who shall complete the valuation of the land. Ocular inspection and verification of the property by
the PARO shall be mandatory when the computed value of the estate exceeds P500,000.00. Upon determination of the valuation, the PARO shall forward all papers together with his
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
recommendation to the Central Office of the DAR. The DAR Central Office, specifically, the Bureau of Land Acquisition and Distribution (BLAD), shall review, evaluate and determine the final
land valuation of the property. The BLAD shall prepare, on the signature of the Secretary or his duly authorized representative, a Notice of Acquisition for the subject property. From this
point, the provisions of Section 16 of R.A. 6657 then apply.
For a valid implementation of the CAR program, two notices are required: (1) the Notice of Coverage and letter of invitation to a preliminary conference sent to the landowner, the
representatives of the BARC, LBP, farmer beneficiaries and other interested parties pursuant to DAR A.O. No. 12, Series of 1989; and (2) the Notice of Acquisition sent to the landowner under
Section 16 of the CARL.
The importance of the first notice, i.e., the Notice of Coverage and the letter of invitation to the conference, and its actual conduct cannot be understated. They are steps designed to comply
with the requirements of administrative due process. The implementation of the CARL is an exercise of the State's police power and the power of eminent domain. To the extent that the
CARL prescribes retention limits to the landowners, there is an exercise of police power for the regulation of private property in accordance with the Constitution. 50 But where, to carry out
such regulation, the owners are deprived of lands they own in excess of the maximum area allowed, there is also a taking under the power of eminent domain. The taking contemplated is not
a mere limitation of the use of the land. What is required is the surrender of the title to and physical possession of the said excess and all beneficial rights accruing to the owner in favor of the
farmer beneficiary. The Bill of Rights provides that "[n]o person shall be deprived of life, liberty or property without due process of law." The CARL was not intended to take away property
without due process of law. The exercise of the power of eminent domain requires that due process be observed in the taking of private property.
DAR A.O. No. 12, Series of 1989, from whence the Notice of Coverage first sprung, was amended in 1990 by DAR A.O. No. 9, Series of 1990 and in 1993 by DAR A.O. No. 1, Series of 1993. The
Notice of Coverage and letter of invitation to the conference meeting were expanded and amplified in said amendments.
DAR A.O. No. 9, Series of 1990 lays down the rules on both Voluntary Offer to Sell (VOS) and Compulsory Acquisition (CA) transactions involving lands enumerated under Section 7 of the
CARL. 54 In both VOS and CA. transactions, the MARO prepares the Voluntary Offer to Sell Case Folder (VOCF) and the Compulsory Acquisition Case Folder (CACF), as the case may be, over a
particular landholding. The MARO notifies the landowner as well as representatives of the LBP, BARC and prospective beneficiaries of the date of the ocular inspection of the property at least
one week before the scheduled date and invites them to attend the same. The MARO, LBP or BARC conducts the ocular inspection and investigation by identifying the land and landowner,
determining the suitability of the land for agriculture and productivity, interviewing and screening prospective farmer beneficiaries. Based on its investigation, the MARO, LBP or BARC
prepares the Field Investigation Report which shall be signed by all parties concerned. In addition to the field investigation, a boundary or subdivision survey of the land may also be
conducted by a Survey Party of the Department of Environment and Natural Resources (DENR) to be assisted by the MARO. This survey shall delineate the areas covered by Operation Land
Transfer (OLT), areas retained by the landowner, areas with infrastructure, and the areas subject to VOS and CA. After the survey and field investigation, the MARO sends a "Notice of
Coverage" to the landowner or his duly authorized representative inviting him to a conference or public hearing with the farmer beneficiaries, representatives of the BARC, LBP, DENR,
Department of Agriculture (DA), non-government organizations, farmer's organizations and other interested parties. At the public hearing, the parties shall discuss the results of the field
investigation, issues that may be raised in relation thereto, inputs to the valuation of the subject landholding, and other comments and recommendations by all parties concerned. The
Minutes of the conference/public hearing shall form part of the VOCF or CACF which files shall be forwarded by the MARO to the PARO. The PARO reviews, evaluates and validates the Field
Investigation Report and other documents in the VOCF/CACF. He then forwards the records to the RARO for another review.
DAR A.O. No. 1, Series of 1993, modified the identification process and increased the number of government agencies involved in the identification and delineation of the land subject to
acquisition. This time, the Notice of Coverage is sent to the landowner before the conduct of the field investigation and the sending must comply with specific requirements. Representatives
of the DAR Municipal Office (DARMO) must send the Notice of Coverage to the landowner by "personal delivery with proof of service, or by registered mail with return card," informing him
that his property is under CARP coverage and that if he desires to avail of his right of retention, he may choose which area he shall retain. The Notice of Coverage shall also invite the
landowner to attend the field investigation to be scheduled at least two weeks from notice. The field investigation is for the purpose of identifying the landholding and determining its
suitability for agriculture and its productivity. A copy of the Notice of Coverage shall be posted for at least one week on the bulletin board of the municipal and barangay halls where the
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
property is located. The date of the field investigation shall also be sent by the DAR Municipal Office to representatives of the LBP, BARC, DENR and prospective farmer beneficiaries. The field
investigation shall be conducted on the date set with the participation of the landowner and the various representatives. If the landowner and other representatives are absent, the field
investigation shall proceed, provided they were duly notified thereof. Should there be a variance between the findings of the DAR and the LBP as to whether the land be placed under agrarian
reform, the land's suitability to agriculture, the degree or development of the slope, etc., the conflict shall be resolved by a composite team of the DAR, LBP, DENR and DA which shall jointly
conduct further investigation. The team's findings shall be binding on both DAR and LBP. After the field investigation, the DAR Municipal Office shall prepare the Field Investigation Report and
Land Use Map, a copy of which shall be furnished the landowner "by personal delivery with proof of service or registered mail with return card." Another copy of the Report and Map shall
likewise be posted for at least one week in the municipal or barangay halls where the property is located.
Clearly then, the notice requirements under the CARL are not confined to the Notice of Acquisition set forth in Section 16 of the law. They also include the Notice of Coverage first laid down
in DAR A.O. No. 12, Series of 1989 and subsequently amended in DAR A.O. No. 9, Series of 1990 and DAR A.O. No. 1, Series of 1993. This Notice of Coverage does not merely notify the
landowner that his property shall be placed under CARP and that he is entitled to exercise his retention right; it also notifies him, pursuant to DAR A.O. No. 9, Series of 1990, that a public
hearing, shall be conducted where he and representatives of the concerned sectors of society may attend to discuss the results of the field investigation, the land valuation and other
pertinent matters. Under DAR A.O. No. 1, Series of 1993, the Notice of Coverage also informs the landowner that a field investigation of his landholding shall be conducted where he and the
other representatives may be present.
3. Daez v. CA Retention Rights Eudosia Daez was the owner of a 4.1685- 1. WON land owner can YES. Petitioner heirs of Eudosia Daez may exercise their right
G.R. No. 133507, Sec. 6 hectare riceland in Barangay Lawa, still exercise their right of of retention over the subject 4.1685 riceland.
Feb 17, 2000, Meycauayan, Bulacan which was being retention over subject In the landmark case of Association of Small Landowners in the
325 SCRA 856 cultivated by respondents Macario Soriente, 4.1685 ha riceland despite Phil., Inc. v. Secretary of Agrarian Reform 23 , we held that
(2000) Rogelio Macatulad, Apolonio Mediana and the fact that a previous landowners who have not yet exercised their retention rights
Second Division Manuel Umali under a system of share- decision denying petition under P.D. No. 27 are entitled to the new retention rights
De Leon, Jr., J. tenancy. The said land was subjected to the for exemption under PD under R.A. No. 6657 24 . We disregarded the August 27, 1985
Operation Land Transfer Program under 27 had long been deadline imposed by DAR Administrative Order No. 1, series of
Presidential Decree No. 27 as amended by executory. 1985 on landowners covered by OLT. However, if a landowner
Letter of Instruction Armed with an affidavit, filed his application for retention after August 27, 1985 but he
allegedly signed under duress by the had previously filed the sworn statements required by LOI Nos.
respondents, stating that they are not share 41, 45 and 52, he is still entitled to the retention limit of seven
tenants but hired laborers, Eudosia Daez (7) hectares under P.D. No. 27. 25 Otherwise, he is only
applied for the exemption of said riceland entitled to retain five (5) hectares under R.A. No. 6657.
from coverage of P.D. No. 27 due to non-
tenancy as well as for the cancellation of the Sec. 6 of R.A. No. 6657, which provides, viz.:chanrob1es virtual
CLTs issued to private respondents. The 1aw library
application of the petitioner was denied.
Exemption of the 4.1685 riceland from SECTION 6. Retention Limits — Except as otherwise provided
coverage by P.D. No. 27 having been finally in this Act, no person may own or retain, directly or indirectly,
denied her, Eudosia Daez next filed an any public or private agricultural land, the size of which shall
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
application for retention of the same vary according to factors governing a viable family-size, such
riceland, this time under R.A. No. 6657. as commodity produced, terrain, infrastructure, and soil
fertility as determined by the Presidential Agrarian Reform
On March 22, 1994, DAR Region III OIC- Council (PARC) created hereunder, but in no case shall
Director Eugenio B. Bernardo allowed retention by the landowner exceed five (5) hectares. Three (3)
Eudosia Daez to retain the subject riceland hectares may be awarded to each child of the landowner,
but he denied the application of her eight subject to the following qualifications: (1) that he is at least
(8) children to retain three (3) hectares each fifteen (15) years of age; and (2) that he is actually tilling the
for their failure to prove actual tillage of the land or directly managing the farm; Provided, That landowners
land or direct management thereof as whose land have been covered by Presidential Decree No. 27
required by law. They appealed to DAR shall be allowed to keep the area originally retained by them
Secretary. thereunder, further, That original homestead grantees or
direct compulsory heirs who still own the original homestead
DAR Secretary affirmed the decision of the at the time of the approval of this Act shall retain the same
regional director. They appealed to the areas as long as they continue to cultivate said homestead.
Office of the President (OP).
The right to choose the area to be retained, which shall be
Office of the President ruled in favor of Daez compact or contiguous, shall pertain to the landowner.
or her heirs and rendered judgment Provided, however, That in case the area selected for
authorizing the retention of the 4.1685 retention by the landowner is tenanted, the tenant shall have
hectares of land. The application of the the option to choose whether to remain therein or be a
children was still denied. Hence the appeal beneficiary in the same or another agricultural land with
in CA. similar or comparable features. In case the tenant chooses to
remain in the retained area, he shall be considered a lease
CA reversed and set aside the decision of holder and shall lose his right to be a beneficiary under this
the Office of the President. Act. In case the tenant chooses to be a beneficiary in another
agricultural land, he loses his right as a lease holder to the land
retained by the landowner. 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.
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
2. WON distinction NO. Exemption and retention in agrarian reform are two (2)
between exemption from distinct concepts. Hence, it is incorrect to posit that an
agrarian reform coverage application for exemption and an application for retention are
and the right of retention one and the same thing. Being distinct remedies, finality of
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
of landowners is only a judgment in one does not preclude the subsequent institution
matter of semantics that of the other. There was, thus, no procedural impediment to
an adverse decision in the the application filed by Eudosia Daez for the retention of the
former will foreclose subject 4.1865-hectare riceland, even after her appeal for
further action to enforce exemption of the same land was denied in a decision that
the latter considering that became final and executory.
they constitute separate
and distinct causes of P.D. No. 27, which implemented the Operation Land Transfer
action and, therefore, (OLT) Program, covers tenanted rice or corn lands. The
enforceable separately requisites for coverage under the OLT program are the
and in sequel. following: (1) the land must be devoted to rice or corn crops;
and (2) there must be a system of share-crop or lease-tenancy
obtaining therein. If either requisite is absent, a landowner
may apply for exemption. If either of these requisites is
absent, the land is not covered under OLT. Hence, a landowner
need not apply for retention where his ownership over the
entire landholding is intact and undisturbed.
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
Thus, on one hand, exemption from coverage of OLT lies if: (1)
the land is not devoted to rice or corn crops even if it is
tenanted; or (2) the land is untenanted even though it is
devoted to rice or corn crops.
4. Rodriguez v. Retention Rights On May 22, 2003, respondent Teresita V. WON there is tenancy NO. Agricultural tenancy relationship does not exist in the
Salvador Sec. 6 Salvador filed a Complaint for Unlawful relationship between the instant case.
G.R. No. 171972, Detainer, docketed as Civil Case No. 330, parties.
Jun 08, 2011, against petitioners Lucia (Lucia) and Agricultural tenancy exists when all the following requisites
651 SCRA 429 Prudencia Rodriguez, mother and daughter, are present:
(2011) respectively before the Municipal Trial Court 1) the parties are the landowner and the tenant or agricultural
First Division (MTC) of Dalaguete, Cebu. Respondent lessee;
Del Castillo, J. alleged that she is the absolute owner of a 2) the subject matter of the relationship is an agricultural land;
parcel of land covered by Original Certificate 3) there is consent between the parties to the relationship;
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
of Title (OCT) No. P27140 issued by virtue of 4) the purpose of the relationship is to bring about agricultural
Free Patent No. (VII5) 2646 in the name of production;
the Heirs of Cristino Salvador represented by 5) there is personal cultivation on the part of the tenant or
Teresita Salvador; that petitioners acquired agricultural lessee; and
possession of the subject land by mere 6) the harvest is shared between landowner and tenant or
tolerance of her predecessors-in-interest; agricultural lessee.
and that despite several verbal and written
demands made by her, petitioners refused The statements in the affidavits presented by the petitioners
to vacate the subject land. are not sufficient to prove the existence of an agricultural
On July 10, 2003, the preliminary conference tenancy.
was terminated and the parties were
ordered to submit their respective position As correctly found by the CA, the element of consent is
papers together with the affidavits of their lacking.43 Except for the self-serving affidavit of Lucia, no
witnesses and other evidence to support other evidence was submitted to show that respondent’s
their respective claims. predecessors-in-interest consented to a tenancy relationship
On September 10, 2003, the MTC with petitioners. Self-serving statements, however, will not
promulgated a Decision finding the suffice to prove consent of the landowner; independent
existence of an agricultural tenancy evidence is necessary.44
relationship between the parties, and
thereby, dismissing the complaint for lack of Aside from consent, petitioners also failed to prove sharing of
jurisdiction. harvest.1avvphil The affidavits of petitioners’ neighbors
Aggrieved, respondent filed an appeal with declaring that respondent and her predecessors-in-interest
the Regional Trial Court (RTC). On January received their share in the harvest are not sufficient.
12, 2004, the RTC rendered a Decision Petitioners should have presented receipts or any other
remanding the case to the MTC for evidence to show that there was sharing of harvest45 and that
preliminary hearing to determine whether there was an agreed system of sharing between them and the
tenancy relationship exists between the landowners.46
parties. Petitioners moved for
reconsideration arguing that the purpose of As we have often said, mere occupation or cultivation of an
a preliminary hearing was served by the agricultural land will not ipso facto make the tiller an
parties’ submission of their respective agricultural tenant.47 It is incumbent upon a person who
position papers and other supporting claims to be an agricultural tenant to prove by substantial
evidence. evidence all the requisites of agricultural tenancy
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
5. Alita v. CA Exemptions and The subject matter of the case consists of WON lands obtained NO. We agree with the petitioners in saying that P.D. 27
G.R. No. 78517, Exclusions two (2) parcels of land, acquired by private through homestead decreeing the emancipation of tenants from the bondage of
Feb 27, 1989, Sec. 10 respondents' predecessors-in-interest patent are covered by the the soil and transferring to them ownership of the land they
through homestead patent under the till is a sweeping social legislation, a remedial measure
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
170 SCRA 706 provisions of Commonwealth Act No. 141. Agrarian Reform under promulgated pursuant to the social justice precepts of the
(1989) Said lands are situated at Guilinan, P.D. 27. Constitution. However, such contention cannot be invoked to
Second Division Tungawan, Zamboanga del Sur. defeat the very purpose of the enactment of the Public Land
Paras, J. Act or Commonwealth Act No. 141. Thus,
Private respondents herein are desirous of
personally cultivating these lands, but The Homestead Act has been enacted for the welfare and
petitioners refuse to vacate, relying on the protection of the poor. The law gives a needy citizen a piece of
provisions of P.D. 27 and P.D. 316 and land where he may build a modest house for himself and
appurtenant regulations issued by the then family and plant what is necessary for subsistence and for the
Ministry of Agrarian Reform (DAR for short), satisfaction of life's other needs. The right of the citizens to
now Department of Agrarian Reform (MAR their homes and to the things necessary for their subsistence
for short). is as vital as the right to life itself. They have a right to live with
a certain degree of comfort as become human beings, and the
On June 18, 1981, private respondents (then State which looks after the welfare of the people's happiness
plaintiffs), instituted a complaint against is under a duty to safeguard the satisfaction of this vital right.
Hon. Conrado Estrella as then Minister of (Patricio v. Bayog, 112 SCRA 45)
Agrarian Reform, P.D. Macarambon as
Regional Director of MAR Region IX, and In this regard, the Philippine Constitution likewise respects the
herein petitioners (then defendants) for the superiority of the homesteaders' rights over the rights of the
declaration of P.D. 27 and all other Decrees, tenants guaranteed by the Agrarian Reform statute. In point is
Letters of Instructions and General Orders Section 6 of Article XIII of the 1987 Philippine Constitution
issued in connection therewith as which provides:
inapplicable to homestead lands.
Section 6. The State shall apply the principles of agrarian
Defendants filed their answer with special reform or stewardship, whenever applicable in accordance
and affirmative defenses of July 8, 1981. with law, in the disposition or utilization of other natural
resources, including lands of public domain under lease or
Subsequently, on July 19, 1982, plaintiffs concession suitable to agriculture, subject to prior rights,
filed an urgent motion to enjoin the homestead rights of small settlers, and the rights of
defendants from declaring the lands in indigenous communities to their ancestral lands.
litigation under Operation Land Transfer and
from being issued land transfer certificates Additionally, it is worthy of note that the newly promulgated
to which the defendants filed their Comprehensive Agrarian Reform Law of 1988 or Republic Act
opposition dated August 4, 1982. No. 6657 likewise contains a proviso supporting the
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CASE DIGESTS FOR ATTY. GEFER MANCOL’S AGRARIAN LAW AND SOCIAL LEGISLATION SYLLABUS (CHAPTER IV: R.A. 6657 as amended)
CASE CASE TOPIC FACTS ISSUE HELD
NO.
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respondent Secretary nor respondent Since the NATALIA lands were converted prior to 15 June
Director took action on the protest-letters. 1988, respondent DAR is bound by such conversion. It was
Hence, this petition. therefore error to include the undeveloped portions of the
Natalia’s contention: Subject properties Antipolo Hills Subdivision within the coverage of CARL.
already ceased to be agricultural lands when
they were included in the areas reserved by
presidential fiat for townsite reservation.
OSG’s contention: The permits granted
petitioners were not valid and binding
because they did not comply with the
implementing Standards, Rules and
Regulations of P.D. 957, otherwise known as
"The Subdivision and Condominium Buyers'
Protective Decree," in that no application for
conversion of the NATALIA lands from
agricultural to residential was ever filed with
the DAR. In other words, there was no valid
conversion
[Source:
https://lexphil.blogspot.com/2015/05/natali
a-realty-inc-and-estate.html]
7. Luz Farms v. Exemptions and On 10 June 1988, RA 6657 was approved by WON Sections 3(b), 11, 13 NO. The transcripts of the deliberations of the Constitutional
Secretary of Exclusions the President of the Philippines, which and 32 of R.A. No. 6657 Commission of 1986 on the meaning of the word
Agrarian Reform Sec. 10 includes, among others, the raising of (the Comprehensive "agricultural," clearly show that it was never the intention of
G.R. No. 86889, livestock, poultry and swine in its coverage. Agrarian Reform Law of the framers of the Constitution to include livestock and poultry
Dec 04, 1990, 1988), insofar as the said industry in the coverage of the constitutionally-mandated
192 SCRA 51 (1990) Petitioner Luz Farms, a corporation engaged law includes the raising of agrarian reform program of the Government.
En Banc in the livestock and poultry business, avers livestock, poultry and
Paras, J. that it would be adversely affected by the swine in its coverage as The Committee adopted the definition of "agricultural land" as
enforcement of sections 3(b), 11, 13, 16 (d), well as the Implementing defined under Section 166 of R.A. 3844, as land devoted to any
17 and 32 of the said law. Hence, it prayed Rules and Guidelines growth, including but not limited to crop lands, saltbeds,
that the said law be declared promulgated in fishponds, idle and abandoned land (Record, CONCOM, August
unconstitutional. The mentioned sections of accordance therewith are 7, 1986, Vol. III, p. 11).
the law provies, among others, the product- constitutional.
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sharing plan, including those engaged in The intention of the Committee is to limit the application of
livestock and poultry business. the word "agriculture." Commissioner Jamir proposed to insert
the word "ARABLE" to distinguish this kind of agricultural land
Luz Farms further argued that livestock or from such lands as commercial and industrial lands and
poultry raising is not similar with crop or residential properties because all of them fall under the
tree farming. That the land is not the general classification of the word "agricultural". This proposal,
primary resource in this undertaking and however, was not considered because the Committee
represents no more than 5% of the total contemplated that agricultural lands are limited to arable and
investments of commercial livestock and suitable agricultural lands and therefore, do not include
poultry raisers. That the land is incidental commercial, industrial and residential lands (Record,
but not the principal factor or consideration CONCOM, August 7, 1986, Vol. III, p. 30).
in their industry. Hence, it argued that it
should not be included in the coverage of RA It is evident from the foregoing discussion that Section II of
6657 which covers “agricultural lands”. R.A. 6657 which includes "private agricultural lands devoted to
commercial livestock, poultry and swine raising" in the
[Source: definition of "commercial farms" is invalid, to the extent that
https://dennieidea.wordpress.com/2016/10 the aforecited agro-industrial activities are made to be
/28/luz-farms-v-sec-of-dar-gr-86889/] covered by the agrarian reform program of the State. There is
simply no reason to include livestock and poultry lands in the
coverage of agrarian reform.
8. DAR v. Sutton Exemptions and The case at bar involves a land in Aroroy, WON DAR A.O. No. 9, YES. In the case at bar, we find that the impugned A.O. is
G.R. No. 162070, Exclusions Masbate, inherited by respondents which series of 1993, which invalid as it contravenes the Constitution. The A.O. sought to
Oct. 19, 2005, 473 Sec. 10 has been devoted exclusively to cow and calf prescribes a maximum regulate livestock farms by including them in the coverage of
SCRA 392 (2005) breeding. On October 26, 1987, pursuant to retention limit for owners agrarian reform and prescribing a maximum retention limit for
En Banc the then existing agrarian reform program of of lands devoted to their ownership. However, the deliberations of the 1987
Puno, J. the government, respondents made a livestock raising, is Constitutional Commission show a clear intent to exclude,
voluntary offer to sell (VOS) their unconstitutional. inter alia, all lands exclusively devoted to livestock, swine and
landholdings to petitioner DAR to avail of poultry- raising. The Court clarified in the Luz Farms case that
certain incentives under the law. livestock, swine and poultry-raising are industrial activities and
On June 10, 1988, CARL took effect. do not fall within the definition of "agriculture" or "agricultural
In view of the Luz Farms ruling, respondents activity." The raising of livestock, swine and poultry is different
filed with petitioner DAR a formal request to from crop or tree farming. It is an industrial, not an
withdraw their VOS as their landholding was agricultural, activity. A great portion of the investment in this
devoted exclusively to cattle-raising and enterprise is in the form of industrial fixed assets, such as:
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thus exempted from the coverage of the animal housing structures and facilities, drainage, waterers
CARL. and blowers, feedmill with grinders, mixers, conveyors,
MARO inspected respondents’ land and exhausts and generators, extensive warehousing facilities for
found that it was devoted solely to cattle- feeds and other supplies, anti-pollution equipment like bio-gas
raising and breeding. He recommended to and digester plants augmented by lagoons and concrete
the DAR Secretary that it be exempted from ponds, deepwells, elevated water tanks, pumphouses,
the coverage of the CARL. sprayers, and other technological appurtenances.15
DAR ignored their request
DAR issued A.O. No. 9, series of 1993, which Clearly, petitioner DAR has no power to regulate livestock
provided that only portions of private farms which have been exempted by the Constitution from the
agricultural lands used for the raising of coverage of agrarian reform. It has exceeded its power in
livestock, poultry and swine as of June 15, issuing the assailed A.O.
1988 shall be excluded from the coverage of
the CARL. In determining the area of land The subsequent case of Natalia Realty, Inc. v. DAR16 reiterated
to be excluded, the A.O. fixed the following our ruling in the Luz Farms case. In Natalia Realty, the Court
retention limits, viz: 1:1 animal-land ratio. held that industrial, commercial and residential lands are not
DAR Secretary Garilao issued an Order covered by the CARL.17 We stressed anew that while Section 4
partially granting the application of of R.A. No. 6657 provides that the CARL shall cover all public
respondents for exemption from the and private agricultural lands, the term "agricultural land"
coverage of CARL. Respondents moved for does not include lands classified as mineral, forest, residential,
reconsideration. They contend that their commercial or industrial. Thus, in Natalia Realty, even portions
entire landholding should be exempted as it of the Antipolo Hills Subdivision, which are arable yet still
is devoted exclusively to cattle-raising. Their undeveloped, could not be considered as agricultural lands
motion was denied. subject to agrarian reform as these lots were already classified
Office of the President affirmed the order of as residential lands.
DAR
On appeal, the Court of Appeals ruled in A similar logical deduction should be followed in the case at
favor of the respondents. It declared DAR bar. Lands devoted to raising of livestock, poultry and swine
A.O. No. 9, s. 1993, void for being contrary have been classified as industrial, not agricultural, lands and
to the intent of the 1987 Constitutional thus exempt from agrarian reform.
Commission to exclude livestock farms from
the land reform program of the government.
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[https://lexphil.blogspot.com/2015/05/dar-
vs-delia-sutton.html]
9. Milestone Farms, Exemptions and Petitioner Milestone Farms, Inc. (petitioner) WON lands devoted to YES. The Court held that it is established that that issues of
Inc. v. Office of the Exclusions was incorporated with the Securities and livestock farming within Exclusion and/or Exemption are characterized as Agrarian Law
President Sec. 10 Exchange Commission on January 8, 1960. the meaning of Luz farms Implementation (ALI) cases which are well within the DAR
G.R. No. 182332, Among its pertinent secondary purposes and Sutton, and which are Secretary’s competence and jurisdiction.
Feb 23, 2011, are: (1) to engage in the raising of cattle, thereby exempt from carl
644 SCRA 2 17 pigs, and other livestock; to acquire lands by coverage, are Precisely, it is the DAR Secretary who is vested with such
(2011) purchase or lease, which may be needed for nevertheless subject to jurisdiction and authority to exempt and/or exclude a property
Second Division this purpose; and to sell and otherwise DAR’s continuing from CARP coverage based on the factual circumstances of
Nachura, J. dispose of said cattle, pigs, and other verification as to use, and, each case and in accordance with law and applicable
livestock and their produce when advisable on the basis of such jurisprudence.
and beneficial to the corporation; (2) to verification, may be
breed, raise, and sell poultry; to purchase or ordered reverted to
acquire and sell, or otherwise dispose of the agricultural classification
supplies, stocks, equipment, accessories, and compulsory
appurtenances, products, and byproducts of acquisition
said business; and (3) to import cattle, pigs,
and other livestock, and animal food
necessary for the raising of said cattle, pigs,
and other livestock as may be authorized by
law.
On June 10, 1988, a new agrarian reform
law, Republic Act (R.A.) No. 6657, otherwise
known as the Comprehensive Agrarian
Reform Law (CARL), took effect, which
included the raising of livestock, poultry, and
swine in its coverage. However, on
December 4, 1990, this Court, sitting en
banc, ruled in Luz Farms v. Secretary of the
Department of Agrarian Reform that
agricultural lands devoted to livestock,
poultry, and/or swine raising are excluded
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[Source:
https://lexphil.blogspot.com/2015/05/centr
al-mindanao-university-vs-darab.html]
11. DAR v. DECS Exemptions and Lot No. 2509 and Lot No. 817-D consists of WON the subject NO. Section 10 of R.A. No. 6657 enumerates the types of lands
G.R. No. 158228, Exclusions an aggregate area of 189.2462 hectares properties are exempt which are exempted from the coverage of CARP as well as the
Mar 23, 2004, Sec. 10 located at Hacienda Fe, Escalante, Negros from the coverage of purposes of their exemption, viz:
426 SCRA 217 Occidental and Brgy. Gen. Luna, Sagay, Republic Act No. 6657,
(2004) Negros Occidental, respectively. On October otherwise known as the xxxxxxxxx
First Division 21, 1921, these lands were donated by Comprehensive Agrarian
Ynares-Santiago, J. Esteban Jalandoni to respondent DECS. Reform Law of 1988 c) Lands actually, directly and exclusively used and found to be
Titles were transferred in the name of (CARL) necessary for national defense, school sites and campuses,
respondent DECS. including experimental farm stations operated by public or
DECS leased the lands to Anglo Agricultural private schools for educational purposes, … , shall be exempt
Corporation for 10 agricultural crop years, from the coverage of this Act.
commencing from crop year 1984-1985 to
crop year 1993-1994. The contract of lease xxxxxxxxx
was subsequently renewed for another 10
agricultural crop years, commencing from Clearly, a reading of the paragraph shows that, in order to be
crop year1995-1996 to crop year 2004-2005. exempt from the coverage: 1) the land must be "actually,
June 10, 1993: Eugenio Alpar et.al, claim to directly, and exclusively used and found to be necessary;" and
be permanent and regular farm workers of 2) the purpose is "for school sites and campuses, including
the subject lands, filed a petition for experimental farm stations operated by public or private
Compulsory Agrarian Reform Program schools for educational purposes."
(CARP) coverage with the Municipal
Agrarian Reform Office (MARO) of Escalante The importance of the phrase "actually, directly, and
After investigation, MARO Jacinto R. Piñosa, exclusively used and found to be necessary" cannot be
sent a “Notice of Coverage” to respondent understated, as what respondent DECS would want us to do by
DECS, stating that the lands are covered by not taking the words in their literal and technical definitions.
CARP and inviting its representatives for a The words of the law are clear and unambiguous. Thus, the
conference with the farmer beneficiaries. "plain meaning rule" or verba legis in statutory construction is
Then, MARO Piñosa submitted his report to applicable in this case. Where the words of a statute are clear,
OIC-PARO Stephen M. Leonidas, who plain and free from ambiguity, it must be given its literal
recommended to the DAR Regional Director meaning and applied without attempted interpretation.
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the approval of the coverage of the We are not unaware of our ruling in the case of Central
landholdings. Mindanao University v. Department of Agrarian Reform
August 7, 1998: DAR Regional Director Adjudication Board, wherein we declared the land subject
Andres approved the recommendation and thereof exempt from CARP coverage. However, respondent
directed Provincial Agrarian Reform Office to DECS’ reliance thereon is misplaced because the factual
facilitate acquisition and distribution of circumstances are different in the case at bar.
landholdings to qualified beneficiaries.
DECS appealed the case to the Secretary of Firstly, in the CMU case, the land involved was not alienable
Agrarian Reform which affirmed the Order and disposable land of the public domain because it was
of the Regional Director. reserved by the late President Carlos P. Garcia under
Aggrieved DECS filed a petition for certiorari Proclamation No. 476 for the use of Mindanao Agricultural
with the Court of Appeals, which set aside College (now CMU). In this case, however, the lands fall under
the decision of the Secretary of Agrarian the category of alienable and disposable lands of the public
Reform. Hence, the instant petition for domain suitable for agriculture.
review.
Secondly, in the CMU case, the land was actually, directly and
[Source: exclusively used and found to be necessary for school sites and
https://www.scribd.com/document/156708 campuses. Although a portion of it was being used by the
076/DAR-v-DECS-Digest] Philippine Packing Corporation (now Del Monte Phils., Inc.)
under a "Management and Development Agreement", the
undertaking was that the land shall be used by the Philippine
Packing Corporation as part of the CMU research program,
with direct participation of faculty and students. Moreover,
the land was part of the land utilization program developed by
the CMU for its "Kilusang Sariling Sikap Project" (CMU-KSSP), a
multi-disciplinary applied research extension and productivity
program. Hence, the retention of the land was found to be
necessary for the present and future educational needs of the
CMU. On the other hand, the lands in this case were not
actually and exclusively utilized as school sites and campuses,
as they were leased to Anglo Agricultural Corporation, not for
educational purposes but for the furtherance of its business.
Also, as conceded by respondent DECS, it was the income from
the contract of lease and not the subject lands that was
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645 SCRA 401 Cavite. Originally owned by the MAnila Golf commodity produced, all public and private agricultural lands
(2001) and Country Club, he property was aquired as provided in Proclamation No. 131 and Executive Order No.
First Division by the [herein repondent EMRASON] in 229, including other lands of the public domain suitable for
Leonardo-De 1965 for the purpose of developing the agriculture: Provided, That landholdings of landowners with a
Castro, J. same into a residential subdivision known as total area of five (5) hectares and below shall not be covered
"Traveller's Life Homes". for acquisition and distribution to qualified beneficiaries.
Sometime in 1971, the Municipal Council of
Dasmariñas, Cavite, acting pursuant to More specifically, the following lands are covered by the CARP:
Republic Act (R.A.) No. 2264, otherwise
known as the "Loval Autonomy Act", (a) All alienable and disposable lands of the public domain
enacteed Municipal Ordinance No. 1, devoted to or suitable for agriculture. No reclassification of
hereinafter referred to as Ordinance No. 1, forest or mineral lands to agricultural lands shall be
enitled "An Ordinance Providing Subdivision undertaken after the approval of this Act until Congress, taking
Regulation and Providing Penalties for into account ecological, developmental and equity
Violation Thereof." considerations, shall have determined by law, the specific
In May, 1972, [respondent] E.M. Ramos and limits of the public domain;
Sons, Inc., applied for an authority to
convert and development its (b) All lands of the public domain in excess of the specific limits
aforementioned 372-hectare property into a as determined by Congress in the preceding paragraph;
residential subdivision, ataching to the
apllication detailed development plans and (c) All other lands owned by the Government devoted to or
development proposals from Bancom suitable for agriculture; and
Development Corporation and San Miguel
Corporation. Acting thereon the Municipal (d) All private lands devoted to or suitable for agriculture
Council of Dasmariñas, Cavite passed on regardless of the agricultural products raised or that can be
July 9, 1972 Municipal Ordinance No. 29-A raised thereon.
(Ordinance "No. 29-A, for brevity),
approving [EMRASON's] application. A comprehensive inventory system in consonance with the
Subsequently, [EMRASON] paid the fees, national land use plan shall be instituted by the Department of
dues and licenses needed to proceed with Agrarian Reform (DAR), in accordance with the Local
property development. Government Code, for the purpose of properly identifying and
It appears, however, that the actual classifying farmlands within one (1) year from effectivity of this
implementation of the subdivision project /Vet. without prejudice to the implementation of the land
suffered delay owing to the confluence of acquisition and distribution." (Emphases supplied.)
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Langkaan, Dasmarinas, Cavite owned by The trial court's determination that Mr. Tepoot's building is
[EMRASON]. commercial and, therefore, Sec. 8 is inapplicable, is
In the meantime, [EMRASON] filed with the strengthened by the fact that the Sangguniang Panlungsod has
Department of Agrarian Reform declared the questioned area as commercial or C-2.
Adjudication Board (DARAB), Region IV, Consequently, even if Tepoot's building was declared for
Pasig, Metro Manila, separate petitions to taxation purposes as residential, once a local government has
nullify the first three sets of the above reclassified an area as commercial, that determination for
notices. Collectively docketed as DARAB zoning purposes must prevail. While the commercial character
Case No. IV-Ca-0084-92, these petitions of the questioned vicinity has been declared thru the
were subsequently referred to the Office of ordinance, private respondents have failed to present
the Regional Director, Region IV, which had convincing arguments to substantiate their claim that
jurisdiction thereon. In his referral action, Cabaguio Avenue, where the funeral parlor was constructed,
the Provincial Agrarian Adjudicator directed was still a residential zone. Unquestionably, the operation of a
the DAR Region IV, through its Operations funeral parlor constitutes a "commercial purpose," as gleaned
Division, to conduct a hearing and/or from Ordinance No. 363
investigation lo determine whether or not
the subject property is covered by the Since the subject property had been reclassified as residential
Comprehensive Agrarian Reform Program land by virtue of Resolution No. 29-A dated July 9, 1972, it is
(CARP) and, if not, to cancel the notices of no longer agricultural land by the time the CARL took effect on
acquisition. June 15, 1988 and is, therefore, exempt from the CARP.
Forthwith, the DAR regional office
conducted an on-site inspection of the
subject property.
In the course of the hearing, during which
[EMRASON] offered Exhibits :'A" to "UU-2"
as documentary evidence, [EMRASON]
received another set of notices of
acquisition. As lo be expected, [EMRASON]
again protested.
On August 28, 1992, the Legal Division of
DAR, Region IV, through Hearing Officer
Victor Baguilat, rendered a decision
declaring as null and void all the notices of
acquisitions, observing that the property
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Lot No. 1293-B Psd-65835 under TCT No. designated there. The DAR Secretary even described SNLABC’s
T12639 except Lot No. 1298, Cad. 286 of TCT use of the area as a "seasonal extension of the applicant’s
No. T12637 which is already covered under ‘grazing lands’ during the summer." Therefore, the Limot lands
the Compulsory Acquisition (CA) Scheme cannot be claimed to have been actually, directly and
and had already been valued by the Land exclusively used for SNLABC’s livestock business, especially
Valuation Office, Land Bank of the since these were only intermittently and secondarily used as
Philippines.” grazing areas. The said lands are more suitable -- and are in
fact actually, directly and exclusively being used -- for
On June 24, 1993, TCT No. T12635 covering agricultural purposes.
Lots 1454A & 1296 was cancelled and a new
one issued in the name of the Republic of
the Philippines under RP T16356. On
February 7, 1994, petitioner through its
President, Salvador N. Lopez, Jr., executed a
letteraffidavit addressed to the respondent
Secretary requesting for the exclusion from
CARP coverage of Lots 1454A and 1296 on
the ground that they needed the additional
area for its livestock business. On March 28,
1995, petitioner filed before the DAR
Regional Director of Davao City an
application for the exemption from CARP
coverage of Lots 1454A and 1296 stating
that it has been operating grazing lands even
prior to June 15, 1988 and that the said two
(2) lots form an integral part of its grazing
land.
The DAR Regional Director, after inspecting
the properties, issued an Order dated March
5, 1997 denying the application for
exemption of Lots 1454A and 1296 on the
ground that it was not clearly shown that
the same were actually, directly and
exclusively used for livestock raising since in
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The San Joaquins moved to dismiss the A local government unit may, through its head and acting
complaints on the ground of inadequacy of pursuant to a resolution of its sanggunian exercise the right of
the price offered for their property.
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after the Province of Camarines Sur shall The rules on conversion of agricultural lands found in Section 4
have submitted the requisite approval of the (k) and 5 (1) of Executive Order No. 129-A, Series of 1987,
Department of Agrarian Reform to convert cannot be the source of the authority of the Department of
the classification of the property of the Agrarian Reform to determine the suitability of a parcel of
private respondents from agricultural to agricultural land for the purpose to which it would be devoted
non-agricultural land. by the expropriating authority. While those rules vest on the
[Source: Department of Agrarian Reform the exclusive authority to
http://eightsubjects.blogspot.com/2013/08/ approve or disapprove conversions of agricultural lands for
province-of-camarines-sur-vs-ca.html] residential, commercial or industrial uses, such authority is
limited to the applications for reclassification submitted by the
land owners or tenant beneficiaries.
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17. Land Bank v. Land Valuation Respondents, heirs of the deceased 1. WON since the The Court has repeatedly held that if just compensation was
Dumlao Sec. 17 Florentino G. Dumlao, were the co-owners properties were acquired not settled prior to the passage of RA No. 6657, it should be
G.R No. 167809 of several parcels of agricultural land with an pursuant to PD No. 27, the computed in accordance with said law, although the property
Nov. 27, 2008 aggregate area of 32.2379 hectares situated formula for computing was acquired under PD No. 27.
572 SCRA 108 at Villaverde, Nueva Vizcaya. just compensation In Land Bank of the Philippines v. Estanislao, the Court ruled
(2008) The properties were placed under Operation provided by said decree that taking into account the passage of RA No. 6657 in 1988
Third Division Land Transfer by the Department of and EO No. 228 should pending the settlement of just compensation, it is that law
Reyes, R.T., J. Agrarian Reform (DAR). However, the apply. which applies to landholdings seized under PD No. 27, with
definite time of actual taking was not stated. said decree and EO No. 288 having only suppletory effect.
Pursuant to PD No. 27 and Executive Order
(EO) No. 228, a preliminary valuation was Guided by this precept, just compensation for purposes of
made by the DAR on the landholdings agrarian reform under PD 27 should adhere to Section 17 of
covered by TCT Nos. 41504 and T-1180 with RA 6657.
a total area of 16.3939 hectares.
Finding the valuation to be correct, Section 17 was converted into a formula by the DAR through
petitioner bank informed respondents of the Administrative Order (AO) No. 6, Series of 1992, as amended
said valuation. Payments were then by AO No. 11, Series of 1994,72 the pertinent portions of
deposited in the name of the landowners. which provide:
CS = Comparable Sales
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The above formula shall be used if all the three factors are
present, relevant and applicable.
A.1 When the CS factor is not present and CNI and MV are
applicable, the formula shall be:
A.2 When the CNI factor is not present, and CS and MV are
applicable, the formula shall be:
A.3 When both the CS and CNI are not present and only MV is
applicable, the formula shall be:
LV = MV x 2
2. WON October 21, 1972 2. NO. The "taking" of the properties for the purpose of
(when PD 27 was issued) computing just compensation should be reckoned from the
should be deemed as the date of issuance of emancipation patents, and not on October
date of taking of the 21, 1972, as petitioner insists. The nature of the land at that
subject properties. time determines the just compensation to be paid.
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payment of the just more before actually receiving the amount necessary to cope
compensation. with his loss. To condition the payment upon LBP’s approval
and its release upon compliance with some documentary
requirements would render nugatory the very essence of
"prompt payment." Therefore, to expedite the payment of just
compensation, it is logical to conclude that the 6% interest
rate be imposed from the time of taking up to the time of full
payment of just compensation.
19. Land Bank v. Orilla Land Valuation Spouses Placido and Clara Orilla WON good reasons exist YES. The expropriation of private property under RA 6657 is a
G.R. No. 157206, Sec. 17 (respondents) were the owners of Lot No. 1, to justify the grant by the revolutionary kind of expropriation, being a means to obtain
Jun 27, 2008, 11-12706, situated in Bohol, containing an SAC of the motion for social justice by distributing land to the farmers, envisioning
556 SCRA 102 area of 23.3416 hectares. execution pending appeal freedom from the bondage to the land they actually till. As an
(2008) In November 1996, DAR-PARO of Bohol sent exercise of police power, it puts the landowner, not the
Third Division respondents a Notice of Land Valuation and government, in a situation where the odds are practically
Nachura, J. Acquisition informing them of the against him. He cannot resist it. His only consolation is that he
compulsory acquisition of 21.1289 hectares can negotiate for the amount of compensation to be paid for
of their landholdings pursuant to the CARL the property taken by the government. As expected, the
for P371,154.99 as compensation based on landowner will exercise this right to the hilt, subject to the
the valuation made by the Land Bank of the limitation that he can only be entitled to "just compensation."
Philippines (petitioner). Clearly therefore, by rejecting and disputing the valuation of
Respondents rejected the said valuation. the DAR, the landowner is merely exercising his right to seek
Provincial DARAB) conducted a summary just compensation.
hearing on the amount of just compensation
and affirmed the valuation made by the
petitioner.
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22. Land Bank v. Land Valuation Respondent Leonila P. Celada owns WON the SAC a quo erred YES. The SAC erred in setting aside petitioner’s valuation of
Celada Sec. 17 agricultural in Calatrava, Carmen, Bohol in fixing the just respondent’s land on the sole basis of the higher valuation
G.R. No. 164876, identified in 1998 by the DAR as suitable for compensation of the land given for neighboring properties.
Jan. 23, 2006, compulsory acquisition under the CARP. based not on its actual
479 SCRA 495 LBP valued respondent's land at P2.1105517 land use but on the We note that it did not apply the DAR valuation formula since
(2006) per square meter for an aggregate value of valuation of neighboring according to the SAC, it is Section 17 of RA No. 6657 that
First Division P299,569.61. The DAR offered the same lands. "should be the principal basis of computation as it is the law
Ynares-Santiago, J. amount, but it was rejected. governing the matter". The SAC further held that said Section
The matter was referred to DARAB Region 17 "cannot be superseded by any administrative order of a
VII-Cebu City, for summary administrative government agency", thereby implying that the valuation
hearing on determination of just formula under DAR Administrative Order No. 5, Series of 1998
compensation. (DAR AO No. 5, s. of 1998), is invalid and of no effect.
While the DARAB case was pending,
respondent filed, on February 10, 2000, a While SAC is required to consider the acquisition cost of the
petition for judicial determination of just land, the current value of like properties, its nature, actual use
compensation against LBP, the DAR and the and income, the sworn valuation by the owner, the tax
Municipal Agrarian Reform Officer (MARO) declaration and the assessments made by the government
of Carmen, Bohol, before the Regional Trial assessors to determine just compensation, it is equally true
Court of Tagbilaran City. that these factors have been translated into a basic formula by
SAC set aside petitioner's valuation of the DAR pursuant to its rule-making power under Section 49 of
respondent's land on the sole basis of the RA No. 6657. As the government agency principally tasked to
higher valuation given for neighboring implement the agrarian reform program, it is the DAR’s duty
properties. The SAC based its valuation of to issue rules and regulations to carry out the object of the
P354,847.50 solely on the observation that law. DAR AO No. 5, s. of 1998 precisely "filled in the details" of
there was a 'patent disparity between the Section 17, RA No. 6657 by providing a basic formula by which
price given to respondent and the other the factors mentioned therein may be taken into account. The
landowners. SAC was at no liberty to disregard the formula which was
devised to implement the said provision.
23. Land Bank v. Land Valuation On May 14, 1993, private respondents filed WON RTC erred in NO. Land Bank’s contention that the property was acquired for
Natividad Sec. 17 a petition before the trial court for the declaring that PD 27 and purposes of agrarian reform on October 21, 1972, the time of
G.R. No. 127198, determination of just compensation for their Executive Order No. 228 the effectivity of PD 27, ergo just compensation should be
May 16, 2005, agricultural lands situated in Arayat, (EO 228) are mere based on the value of the property as of that time and not at
458 SCRA 441 Pampanga, which were acquired by the guidelines in the the time of possession in 1993, is likewise erroneous. In Office
(2005) determination of just of the President, Malacañang, Manila v. Court of Appeals, we
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Second Division government pursuant to Presidential Decree compensation, and in ruled that the seizure of the landholding did not take place on
Tinga, J. No. 27 (PD 27) relying on private the date of effectivity of PD 27 but would take effect on the
respondents’ evidence of payment of just compensation.
After trial, RTC rendered judgment in favor the valuation of the
of respondents, ordering DAR and petitioner properties at the time of Under the factual circumstances of this case, the agrarian
LBP to pay private respondents the amount possession in 1993 and reform process is still incomplete as the just compensation to
of P30.00 per square meter as just not on Land Bank’s be paid private respondents has yet to be settled. Considering
compensation. evidence of the value the passage of Republic Act No. 6657 (RA 6657) before the
thereof as of the time of completion of this process, the just compensation should be
In petition for review, Land Bank contends acquisition in 1972. determined and the process concluded under the said law.
that the property was acquired for purposes Indeed, RA 6657 is the applicable law, with PD 27 and EO 228
of agrarian reform on October 21, 1972, the having only suppletory effect
time of the effectivity of PD 27, ergo just
compensation should be based on the value
of the property as of that time
24. Lubrica v. Land Land Valuation Petitioners own parcels of agricultural lands WON the court a quo has YES. The Natividad case reiterated the Court’s ruling in Office
Bank Sec. 18 in Mindoro Occidental which were placed decided the case in a way of the President v. Court of Appeals that the expropriation of
G.R. No. 170220, under land reform pursuant to PD 27. not in accord with the the landholding did not take place on the effectivity of P.D. No.
Nov. 20, 2006, The land was thereafter subdivided and latest decision of the 27 on October 21, 1972 but seizure would take effect on the
507 SCRA 415 distributed to farmer beneficiaries. Supreme Court in the case payment of just compensation judicially determined.
(2006) of Land Bank of the
First Division Petitioners rejected Land Bank’s valuation of Philippines vs. Hon. Eli Likewise, in the recent case of Heirs of Francisco R. Tantoco,
Ynares-Santiago, J. their properties: P5,056,833.54 for the G.C. Natividad, et al., G.R. Sr. v. Court of Appeals, we held that expropriation of
311.7682 hectares (TCT No. T-31) and No. 127198, prom. May landholdings covered by R.A. No. 6657 take place, not on the
P1,512,575.05 for the 128.7161 hectares. 16, 2005 effectivity of the Act on June 15, 1988, but on the payment of
just compensation.
On January 29, 2003, the PARAD fixed the
preliminary just compensation at In the instant case, petitioners were deprived of their
P51,800,286.43 for the 311.7682 hectares properties in 1972 but have yet to receive the just
(TCT No. T-31) and P21,608,215.28 for the compensation therefor. The parcels of land were already
128.7161 hectares. subdivided and distributed to the farmer-beneficiaries thereby
immediately depriving petitioners of their use. Under the
LBP filed for judicial determination of just circumstances, it would be highly inequitable on the part of
compensation before RTC. the petitioners to compute the just compensation using the
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values at the time of the taking in 1972, and not at the time of
RTC ordered LBP to deposit the amounts the payment, considering that the government and the
provisionally determined by the PARAD as farmer-beneficiaries have already benefited from the land
there is no law which prohibits LBP to make although ownership thereof have not yet been transferred in
a deposit pending the fixing of the final their names. Petitioners were deprived of their properties
amount of just compensation. without payment of just compensation which, under the law,
is a prerequisite before the property can be taken away from
CA initially upheld RTC decision. its owners. The transfer of possession and ownership of the
land to the government are conditioned upon the receipt by
However, CA, in its Amended Decision, held the landowner of the corresponding payment or deposit by
that the immediate deposit of the the DAR of the compensation with an accessible bank. Until
preliminary value of the expropriated then, title remains with the landowner.
properties is improper because it was
erroneously computed. Citing Gabatin v.
Land Bank of the Philippines, it held that the
formula to compute the just compensation
should be: Land Value = 2.5 x Average Gross
Production x Government Support Price.
Specifically, it held that the value of the
government support price for the
corresponding agricultural produce (rice and
corn) should be computed at the time of the
legal taking of the subject agricultural land,
that is, on October 21, 1972 when
landowners were effectively deprived of
ownership over their properties by virtue of
P.D. No. 27. According to the Court of
Appeals, the PARAD incorrectly used the
amounts of P500 and P300 which are the
prevailing government support price for
palay and corn, respectively, at the time of
payment, instead of P35 and P31, the
prevailing government support price at the
time of the taking in 1972.
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25. Association of Land Valuation In G.R. No. 79777, the subjects of this WON Sec. 18 of RA 6657 is NO. It cannot be denied from these cases that the traditional
Small Landowners Sec. 18 petition are a 9-hectare riceland worked by unconstitutional insofar as medium for the payment of just compensation is money and
in the Philippines four tenants and owned by petitioner it requires the owners of no other. And so, conformably, has just compensation been
v. Secretary of Nicolas Manaay and his wife and a 5-hectare the expropriated paid in the past solely in that medium. However, we do not
Agrarian Reform riceland worked by four tenants and owned properties to accept just deal here with the traditional excercise of the power of
G.R. No. 79310, by petitioner Augustin Hermano, Jr. The compensation therefor in eminent domain. This is not an ordinary expropriation where
Jul 14, 1989, tenants were declared full owners of these less than money, which is only a specific property of relatively limited area is sought to
175 SCRA 343 lands by E.O. No. 228 as qualified farmers the only medium of be taken by the State from its owner for a specific and perhaps
(1989) under P.D. No. 27. payment allowed local purpose.
En Banc
Cruz, J. Petitioners are questioning constitutionality What we deal with here is a revolutionary kind of
of P.D. No. 27 and E.O. Nos. 228 and 229. expropriation.
Moreover, the just compensation
contemplated by the Bill of Rights is payable The expropriation before us affects all private agricultural
in money or in cash and not in the form of lands whenever found and of whatever kind as long as they
bonds or other things of value. are in excess of the maximum retention limits allowed their
owners.
However, in an amended petition,
petitioners contended that P.D. No. 27, E.O. the Court hereby declares that the content and manner of the
Nos. 228 and 229 (except Sections 20 and just compensation provided for in the afore- quoted Section
21) have been impliedly repealed by R.A. 18 of the CARP Law is not violative of the Constitution. We do
No. 6657. Nevertheless, this statute should not mind admitting that a certain degree of pragmatism has
itself also be declared unconstitutional influenced our decision on this issue, but after all this Court is
because it suffers from substantially the not a cloistered institution removed from the realities and
same infirmities as the earlier measures. demands of society or oblivious to the need for its
enhancement.
Section 18 of the CARP Law providing in full
as follows: Accepting the theory that payment of the just compensation is
not always required to be made fully in money, we find further
SEC. 18. Valuation and Mode of that the proportion of cash payment to the other things of
Compensation. — The LBP shall compensate value constituting the total payment, as determined on the
the landowner in such amount as may be basis of the areas of the lands expropriated, is not unduly
agreed upon by the landowner and the DAR oppressive upon the landowner. It is noted that the smaller
and the LBP, in accordance with the criteria the land, the bigger the payment in money, primarily because
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NO.
provided for in Sections 16 and 17, and the small landowner will be needing it more than the big
other pertinent provisions hereof, or as may landowners, who can afford a bigger balance in bonds and
be finally determined by the court, as the other things of value. No less importantly, the government
just compensation for the land. financial instruments making up the balance of the payment
are "negotiable at any time." The other modes, which are
The compensation shall be paid in one of the likewise available to the landowner at his option, are also not
following modes, at the option of the unreasonable because payment is made in shares of stock, LBP
landowner: bonds, other properties or assets, tax credits, and other things
of value equivalent to the amount of just compensation.
(1) Cash payment, under the following terms
and conditions:
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CASE CASE TOPIC FACTS ISSUE HELD
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CASE CASE TOPIC FACTS ISSUE HELD
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A preliminary valuation in the amount of agreed upon by the landowner and the DAR and LBP, in
P3,543,070.66 had in fact been previously accordance with the criteria provided for in Sections 16 and
released by the Land Bank in cash and bond 17, and other pertinent provisions hereof, or as may be finally
On December 24, 1997 LBP released the determined by the court, as the just compensation for the
amount of P3,621,023.01 in cash and Land land.
Bank Bond No. AR-0002206 in the amount of
P41,128,024.81 to the petitioner. "The compensation shall be paid in one of the following
Petitioner filed a motion for the issuance of modes, at the option of the landowner:
an alias writ of execution before the
Regional Trial Court, praying that the (1) Cash payment, under the following terms and conditions
payment of the compensation be in
proportion of P8,629,179.36 in bonds and (a) For lands above fifty(50) hectares, insofar as the excess
P32,499,745 in cash, alleging that the cash hectarage is concerned.
portion should include the amounts in the
Decision representing the interest Twenty-five percent (25%) cash, the balance to be paid in
payments. government financial instruments negotiable at any time
The Regional Trial Court issued an Order on
March 20, 1998 for the Land Bank to release (b) For lands above twenty-four (24) hectares and up to fifty
the balance of P41,128,024.81 from the (50) hectares
garnished amount in cash or certified check.
Land Bank moved for a reconsideration. Thirty-percent (30%) cash, the balance to be paid in
Regional Trial Court presided over by a new government financial instruments negotiable at anytime."
judge, resolved the two motions on April 24,
1998. It held that the payment of just Respondent bank was obliged to follow the mandate of the
compensation must be computed in the August 12, 1997 judgment. Hence, its compliance with the
manner provided for in Section 18, Republic Writ of Execution and the Notice of Garnishment ought to
Act No. 6657. have been construed as an agreement to pay petitioner in the
The CA upheld the questioned April 24, 1998 manner set forth in Republic Act No. 6657. Its compliance was
Order of the trial court. not an undertaking to pay in cash because such act would have
been a deviation from the dictum of the final judgment, to
which execution must conform. Paying in cash, as petitioner
demands, is not compatible with such judgment.
29. Land Bank v. CA Land Valuation Private respondent Jose Pascual owned WON CA cannot enforce NO. Petitioner's contention that Sec. 12, par. (b), of PD 946,
and Pascual Sec. 18 three (3) parcels of land located in Gattaran, PARAD's valuation since it which provides that the valuation of lands covered by PD 27 is
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G.R. No. 128557 Cagayan. Pursuant to PD 27 and EO 228, the cannot make such under the exclusive jurisdiction of the Secretary of Agrarian
Dec. 29, 1999 DAR placed these lands under its Operation determination for want of Reform, is still in effect cannot be sustained. It seems that the
321 SCRA 629 Land Transfer (OLT). jurisdiction hence void Secretary of Agrarian Reform erred in issuing Memorandum
(1999) On 11 June 1992 the PARAD ruled in favor of Circular No. I, Series of 1995, directing the DARAB to refrain
Second Division private respondent and ordered petitioner from hearing valuation cases involving PD 27 lands. For on the
Bellosillo, J. LBP to pay private respondent a total contrary, it is the DARAB which has the authority to determine
amount of P1,961,950.00. Private the initial valuation of lands involving agrarian reform
respondent accepted the valuation. although such valuation may only be considered preliminary as
Petitioner LBP having refused to comply the final determination of just compensation is vested in the
with its obligation despite the directive of courts.
the Secretary of the DAR and the various
demand letters of private respondent Jose WON CA erred in ruling YES. At first glance it would seem that private respondent’s
Pascual, the latter finally filed an action for that private respondent lands are indeed covered by AO No. 13. However, Part IV
Mandamus in the Court of Appeals to can avail of the 6% shows that AO No. 13 provides a fixed formula for determining
compel petitioner to pay the valuation compounded interest the Land Value (LV) and the additional interests it would have
determined by the PARAD. prescribed for unpaid earned. In the decision of PARAD, however, the Land Value
CA ruled in respondent’s favor. landowners by (LV) of private respondent’s property was computed by using
The appellate court also required petitioner Administrative Order No. the GSP for 1992, which is P300.00 per cavan of palay and
LBP to pay a compounded interest of 6% per 13, Series of 1994 P250.00 per cavan of corn.
annum in compliance with DAR The purpose of AO No. 13 is to compensate the landowners
Administrative Order No. 13, series of 1994. for unearned interests. 53 Had they been paid in 1972 when
As to its coverage, the Order states: These the GSP for rice and corn was valued at P35.00 and P31.00,
rules and regulations shall apply to respectively, and such amounts were deposited in a bank, they
landowners: (1) whose lands are actually would have earned a compounded interest of 6% per annum.
tenanted as of 21 October 1972 or Thus, if the PARAD used the 1972 GSP, then the product of
thereafter and covered by OLT; (2) who (2.5 x AGP x P35 or P31) could be multiplied by (1.06)n to
opted for government financing through determine the value of the land plus the additional 6%
Land Bank of the Philippines as mode of compounded interest it would have earned from 1972.
compensation; and, (3) who have not yet However, since the PARAD already increased the GSP from
been paid for the value of their land. P35.00 to P300.00/cavan of palay and from P31.00 to
P250.00/cavan of corn, there is no more need to add any
interest thereon, muchless compound it. To the extent that it
granted 6% compounded interest to private respondent Jose
Pascual, the Court of Appeals erred.
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30. Mango v. Barbin Land Valuation On 11 November 1994, respondent Juana Z. WON the Emancipation NO. Emancipation patents issued to agrarian reform
G.R. No. 173923 Sec. 18 Barbin filed with the Provincial Agrarian Patents and Transfer beneficiaries may be corrected and cancelled for violations of
Oct. 12, 2009 Reform Adjudicator (PARAD) of Camarines Certificates of Title issued agrarian laws, rules and regulations. In fact, DAR
603 SCRA 232 Norte an action for Cancellation of to petitioners which were Administrative Order No. 02, series of 1994, which was issued
(2009) Emancipation Patents, Disqualification of already registered with in March 1994, enumerates the grounds for cancellation of
Third Division Tenant-Beneficiary, Repossession and the Register of Deeds registered Emancipation Patents or Certificates of
Carpio, J. Damages. Respondent alleged that she is the have already become Landownership Award:
owner in fee simple of an irrigated riceland indefeasible and can no
located in Barangay Guinacutan, Vinzons, longer be cancelled. Grounds for the cancellation of registered EPs [Emancipation
Camarines Norte, with an area of 4.7823 Patents] or CLOAs [Certificates of Landownership Award] may
hectares, and that Augusto Mago, Crispin include but not be limited to the following:
Mago, Ernesto Mago, and Pedro Mago were
tenants of the subject landholding. 1. Misuse or diversion of financial and support services
Respondent further alleged that petitioners extended to the ARB [Agrarian Reform Beneficiaries]; (Section
violated the terms of their leasehold 37 of R.A. No. 6657)
contracts when they failed to pay lease
rentals for more than two years, which is a 2. Misuse of the land; (Section 22 of R.A. No. 6657)
ground for their dispossession of the
landholding. 3. Material misrepresentation of the ARB’s basic qualifications
On the other hand, petitioners alleged that as provided under Section 22 of R.A. No. 6657, P.D. No. 27,
the subject landholding was placed under and other agrarian laws;
the Operation Land Transfer program of the
government pursuant to PD 27. 4. Illegal conversion by the ARB; (Cf. Section 73, Paragraphs C
Respondent’s original title was then and E of R.A. No. 6657)
cancelled and the subject landholding was
transferred to petitioners who were issued 5. Sale, transfer, lease or other forms of conveyance by a
Emancipation Patents by the DAR. The beneficiary of the right to use or any other usufructuary right
Transfer Certificates of Title issued to over the land acquired by virtue of being a beneficiary, in
petitioners emanating from the order to circumvent the provisions of Section 73 of R.A. No.
Emancipation Patents were registered with 6657, P.D. No. 27, and other agrarian laws. However, if the
the Registry of Deeds. Petitioners averred land has been acquired under P.D. No. 27/E.O. No. 228,
that prior to the issuance of the ownership may be transferred after full payment of
Emancipation Patents, they already amortization by the beneficiary; (Sec. 6 of E.O. No. 228)
delivered their lease rentals to respondent.
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They further alleged that after the issuance 6. Default in the obligation to pay an aggregate of three (3)
of the Emancipation Patents, the subject consecutive amortizations in case of voluntary land
landholding ceased to be covered by any transfer/direct payment scheme, except in cases of fortuitous
leasehold contract. events and force majeure; (Emphasis supplied)
In the Decision dated 30 January 1997,
Department of Agrarian Reform 7. Failure of the ARBs to pay for at least three (3) annual
Adjudication Board (DARAB): amortizations to the LBP, except in cases of fortuitous events
1. ordered the Register of Deeds of and force majeure; (Section 26 of RA 6657)
Camarines Norte to cancel EP Nos. 745, 747,
and 749 issued in the name of Augusto 8. Neglect or abandonment of the awarded land continuously
Mago, Ernesto Mago, and Pedro Mago for a period of two (2) calendar years as determined by the
respectively, and Secretary or his authorized representative; (Section 22 of RA
2. directed the Municipal Agrarian Reform 6657)
Officer of Vinzons, Camarines Norte, to
reallocate the subject lands to qualified 9. The land is found to be exempt/excluded from P.D. No.
beneficiaries. 27/E.O. No. 228 or CARP coverage or to be part of the
DARAB held that when the subject landowner’s retained area as determined by the Secretary or
landholding was placed under the Operation his authorized representative; and
Land Transfer, the tenancy relationship
between the parties ceased and the tenant- 10. Other grounds that will circumvent laws related to the
beneficiaries were no longer required to pay implementation of agrarian reform program.
lease rentals to the landowner. However,
when petitioners entered into an agreement In this case, petitioners entered into an agreement with
with respondent for a direct payment respondent for a direct payment scheme embodied in the
scheme embodied in the Deeds of Transfer, Deeds of Transfer. However, petitioners failed to pay the
petitioners obligated themselves to pay amortizations to respondent landowner in accordance with
their amortizations to respondent who is the their agreed direct payment scheme.
landowner. CA held that the mere issuance
of an Emancipation Patent to a qualified In the first place, the Emancipation Patents and the Transfer
farmer-beneficiary is not absolute and can Certificates of Title should not have been issued to petitioners
be attacked anytime upon showing of any without full payment of the just compensation. Under Section
irregularity in its issuance or non-compliance 2 of Presidential Decree No. 266, the DAR will issue the
with the conditions attached to it. The Emancipation Patents only after the tenant-farmers have fully
Emancipation Patent is subject to the complied with the requirements for a grant of title under PD
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condition that amortization payments be 27. Although PD 27 states that the tenant-farmers are already
remitted promptly to the landowner and deemed owners of the land they till, it is understood that full
that failure to comply with this condition is a payment of the just compensation has to be made first before
ground for cancellation. title is transferred to them. Thus, Section 6 of EO 228 provides
that ownership of lands acquired under PD 27 may be
transferred only after the agrarian reform beneficiary has fully
paid the amortizations.
31. Padua v. CA Land Pepito Dela Cruz, et al. (Dela Cruz, et al.) WON petitioner’s status in NO. That view is incorrect. The statutory mechanism for the
G.R. No. 153456 Redistribution were tenants of Lot Nos. 68 and 90 of the relation to Lot No. 90 was acquisition of land through agrarian reform requires full
Mar 02, 2007 Sec. 22, 23, 24 Dolores Ongsiako Estate in Anao, Tarlac. no longer that of a mere payment of amortization before a farmer-beneficiary may be
517 SCRA 232 In 1966, potential agrarian reform issued a CLOA or EP, which, in turn, can become the basis for
(2007) Dela Cruz, et al. agreed to donate said farmer-beneficiary but a issuance in his name of an original or a transfer certificate of
Third Division properties to the municipality on the civil law vendor dealing title. As Padua himself admitted that he is still paying
AUSTRIA- condition that these be used as school sites. directly with the LBP in amortization on Lot No. 90 to LBP, his status in relation to said
MARTINEZ, J. The project did not materialize Dela Cruz, et the payment of property remains that of a mere potential farmer-beneficiary
al. asked that the properties be returned to amortizations on the whose eligibilities DAR may either confirm or reject. In fact,
them. However, they found out that Mayor property. under Section 2 (d) of Administrative Order No. 06-00, DAR
Cruz had distributed Lot No. 68 to Flor has authority to issue, recall, or cancel a CLT, CBC, EP, or CLOA
Labagnoy (Labagnoy) and Lot No. 90 to issued to potential farmer-beneficiaries but not yet registered
Edwin Cruz (Cruz) who were each issued a with the Register of Deeds.
Certificate of Land Transfer (CLT).
Cruz executed an Affidavit of Waiver over
his interest in Lot No. 90 on the basis of
which DAR Regional Office III issued an
Order dated December 7, 1987 cancelling
the CLT of Cruz and declaring Lot No. 90
open for disposition.
On November 7, 1989, then DAR Secretary
Miriam Defensor Santiago issued an Order
awarding Lot No. 90 to herein petitioner
Roberto Padua (Padua) who had been
occupying said property and paying the
amortization thereon to the Land Bank of
the Philippines (LBP).
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NO.
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CASE CASE TOPIC FACTS ISSUE HELD
NO.
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CASE CASE TOPIC FACTS ISSUE HELD
NO.
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CASE CASE TOPIC FACTS ISSUE HELD
NO.
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CASE CASE TOPIC FACTS ISSUE HELD
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respondents surreptitiously planted palay deals with payment of amortization and not on who qualify as
(rice plant) instead of sugar in order to bring legal transferees of lands acquired under PD 27.
the land within the purview of the law. After
proper investigation, the DAR concluded
that the CLTs were "properly and regularly
issued."
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CASE CASE TOPIC FACTS ISSUE HELD
NO.
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CASE CASE TOPIC FACTS ISSUE HELD
NO.
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NO.
four years, he paid the P2.00 rental for the and corn on a sixty-square meter piece of land can not
lot occupied by his house, and delivered produce an income sufficient to provide a modest standard of
50% of the produce to Andrea Millenes. living to meet the farm family's basic needs. The private
respondent himself admitted that he did not depend on the
Sometime in March 1979, after the property products of the land because it was too small, and that he took
was sold, the new owners, Arturo and on carpentry jobs on the side. Thus, the order sought to be
Yolanda Caballes, told Abajon that the reviewed is patently contrary to the declared policy of the law
poultry they intended to build would be stated above.
close to his house and pursuaded him to
transfer his dwelling to the opposite or The essential requisites of a tenancy relationship are:
southern portion of the landholding. Abajon
offered to pay the new owners rental on the 1. The parties are the landowner and the tenant;
land occupied by his house, but his offer was 2. The subject is agricultural land;
not accepted. Later, the new owners asked 3. There is consent;
Abajon to vacate the premises, saying that 4. The purpose is agricultural production;
they needed the property. But Abajon 5. There is personal cultivation; and
refused to leave. 6. There is sharing of harvests.
On April 1, 1982, the landowner, Yolanda All these requisites must concur in order to create a tenancy
Caballes, executed an Affidavit stating that relationship between the parties. The absence of one does not
immediately after she reprimanded Abajon make an occupant of a parcel of land, or a cultivator thereof,
for harvesting bananas and jackfruit from or a planter thereon, a de jure tenant. This is so because
the property without her knowledge, the unless a person has established his status as a de jure tenant,
latter, with malicious and ill intent, cut down he is not entitled to security of tenure nor is he covered by the
the banana plants on the property worth Land Reform Program of the Government under existing
about P50.00. A criminal case for malicious tenancy laws.
mischief was filed against Abajon.
Therefore, the fact of sharing alone is not sufficient to
Regional Director of MAR Regional VII, establish a tenancy relationship. Certainly, it is not unusual for
issued a certification dated January 24, a landowner to accept some of the produce of his land from
1983, stating that said Criminal Case was not someone who plants certain crops thereon. This is a typical
proper for hearing on the bases of the and laudable provinciano trait of sharing or patikim, a native
following findings: way of expressing gratitude for favor received. This, however,
does not automatically make the tiller-sharer a tenant thereof
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That herein accused is a bona-fide tenant of specially when the area tilled is only 60, or even 500, square
the land owned by the complaining witness, meters and located in an urban area and in. the heart of an
which is devoted to bananas; industrial or commercial zone at that. Tenancy status arises
only if an occupant of a parcel of land has been given its
That thin case is filed patently to harass possession for the primary purpose of agricultural production.
and/or eject the tenant from his The circumstances of this case indicate that the private
farmholding, which act is prohibited by law; respondent's status is more of a caretaker who was allowed by
and the owner out of benevolence or compassion to live in the
premises and to have a garden of some sort at its
That this arose out of or is connected with southwestern side rather than a tenant of the said portion.
agrarian relations.
Agricultural production as the primary purpose being absent in
the arrangement, it is clear that the private respondent was
never a tenant of the former owner, Andrea Millenes.
Consequently, Sec. 10 of RA of 3844, as amended, does not
apply. Simply stated, the private respondent is not a tenant of
the herein petitioner.
36. Gelos v. CA Improvement of The subject land is a 25,000 square meter WON petitioner is a NO. It is not the nature of the work involved but the intention
G.R. No. 86186, the Leasehold farmland situated in Cabuyao, Laguna, and tenant of the private of the parties that determines the relationship between them.
May 08, 1992, 208 Relationship belonging originally to private respondent respondent and entitled
SCRA 608 (1992) Sec. 12 Ernesto Alzona and his parents in equal to the benefits of tenancy [Six requisites of tenancy relationship enumerated]
First Division Determination of shares. On July 5, 1970, they entered into a laws and not only a hired
CRUZ, J. Lease Rentals written contract with petitioner Rafael Gelos laborer whose right to The indications of an employer-employee relationship are:
employing him as their laborer on the land occupy the subject land 1) the selection and engagement of the employee;
at the stipulated daily wage of P5.00. ended with the 2) the payment of wages;
The contract of employment dated July 5, termination of their 3) the power of dismissal; and
1970, written in Tagalog and entitled contract of employment 4) the power to control the employee's conduct –– although
"Kasunduan ng Upahang Araw," provides the latter is the most important element.
that "ang Ikalawang Panig (meaning Gelos)
ay may ibig na magpaupa sa paggawa sa Tenancy relationship is distinguished from farm employer-
halagang P5.00 sa bawa't araw, walong oras farm worker relationship in that: "In farm employer-farm
na trabaho" (The Second Party desires to worker relationship, the lease is one of labor with the
lease his services at the rate of P5.00 per agricultural laborer as the lessor of his services and the farm
day, eight hours of work) and that employer as the lessee thereof. In tenancy relationship, it is
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"Ipinatatanto ng Ikalawang Panig na siya ay the landowner who is the lessor, and the tenant the lessee of
hindi kasama sa bukid kundi upahan lamang agricultural land. The agricultural worker works for the farm
na binabayaran sa bawa't araw ng kanyang employer and for his labor be receives a salary or wage
paggawa sa bukid na nabanggit.'' (The regardless of whether the employer makes a profit. On the
Second Party makes it known that he is not a other hand, the tenant derives his income from the
farm tenant but only a hired laborer who is agricultural produce or harvest."
paid for every day of work on the said farm.)
Here, the private respondent, instead of receiving payment of
On September 4, 1973, after Alzona had rentals or sharing in the produce of the land, paid the
bought his parents' share and acquired full petitioner lump sums for specific kinds of work on the subject
ownership of the land, he wrote Gelos to lot or gave him vales, or advance payment of his wages as
inform him of the termination of his services laborer thereon.
and to demand that he vacate the property.
Gelos refused and continued working on the
land.
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registered in her name. It contains an area tenancy system. Section 8 of the same Act limits the relation
of 169,507.00 square meters. The rental is of landholder and tenant to the person who furnishes the land
on a yearly basis. and to the person who actually works the land himself with
the aid of labor available from within his immediate farm
It also appears that the defendant has household. Finally, Section 4 of the same Act requires for the
ceased to work personally with the aid of existence of leasehold tenancy that the tenant and his
helpers the aforecited fishpond since 1956 immediate farm household work the land.
he became ill and incapacitated. His
daughter, Pilar Pangilinan, took over. She A person, in order to be considered a tenant, must himself and
testified that she helps her father in with the aid available from his immediate farm household
administering the leased property, cultivate the land. Persons, therefore, who do not actually
conveying his instructions to the workers, work the land cannot be considered tenants; and he who hires
Urbano Maninang, Isidro Bernal and others whom he pays for doing the cultivation of the land,
Marciano Maninang. The names of Ire, Juan ceases to hold, and is considered as having abandoned the
and Aguedo Viada have been mentioned as land as tenant within the meaning of sections 5 and 8 of
the laborers who were paid for the repair of Republic Act. No. 1199, and ceases to enjoy the status, rights,
the dikes. Bernardo Cayanan, a nephew of and privileges of one.
the defendant, acts as the watcher. He has
lived separately since he got married.
Excepting Pilar Pangilinan. who is residing
near the fishpond, the other children of the
defendant are all professions; a lawyer, an
engineer, and a priest all residing in Manila.
None of these persons has been seen
working on the fishpond.
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On 28 February 2002, the Secretary of Conversion and reclassification differ from each other.
Agrarian Reform issued another Conversion is the act of changing the current use of a piece of
Administrative Order, i.e., DAR AO No. 01- agricultural land into some other use as approved by the DAR
02, entitled "2002 Comprehensive Rules on while reclassification is the act of specifying how agricultural
Land Use Conversion," which further lands shall be utilized for non-agricultural uses such as
amended DAR AO No. 07-97 and DAR AO residential, industrial, and commercial, as embodied in the
No. 01-99, and repealed all issuances land use plan, subject to the requirements and procedures for
inconsistent therewith. The aforesaid DAR land use conversion. In view thereof, a mere reclassification of
AO No. 01-02 covers all applications for an agricultural land does not automatically allow a landowner
conversion from agricultural to non- to change its use. He has to undergo the process of conversion
agricultural uses or to another agricultural before he is permitted to use the agricultural land for other
use. purposes.
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Thereafter, on 2 August 2007, the Secretary Nevertheless, emphasis must be given to the fact that DAR’s
of Agrarian Reform amended certain conversion authority can only be exercised after the effectivity
provisions of DAR AO No. 01-02 by of Republic Act No. 6657 on 15 June 1988. The said date
formulating DAR AO No. 05-07, particularly served as the cut-off period for automatic reclassification or
addressing land conversion in time of rezoning of agricultural lands that no longer require any DAR
exigencies and calamities. conversion clearance or authority. Thereafter, reclassification
of agricultural lands is already subject to DAR’s conversion
To address the unabated conversion of authority. Reclassification alone will not suffice to use the
prime agricultural lands for real estate agricultural lands for other purposes. Conversion is needed to
development, the Secretary of Agrarian change the current use of reclassified agricultural lands.
Reform further issued Memorandum No. 88
on 15 April 2008, which temporarily
suspended the processing and approval of
all land use conversion applications.
40. [40], Sta. Rosa Conversion of Petitioner Sta. Rosa Realty Development WON the property in In Natalia Realty, Inc. v. Department of Agrarian Reform, the
Realty Agricultural Corporation (hereafter, SRRDC) was the question is covered by Court held that lands classified as non-agricultural prior to the
Development Lands registered owner of two parcels of land, CARP despite the fact that effectivity of the CARL may not be compulsorily acquired for
Corporation vs. Sec. 65 situated at Barangay Casile, Cabuyao, the entire property distribution to farmer beneficiaries.
Court of Appeals Laguna covered by TCT Nos. 81949 and formed part of a
G.R. No. 112526 84891, with a total area of 254.6 hectares. watershed area prior to However, more than the classification of the subject land as
October 12, 2001 The parcels of land in Barangay Casile were the enactment of R. A. No. PARK is the fact that subsequent studies and survey showed
367 SCRA 175 declared as "PARK" by a Zoning Ordinance 6657 that the parcels of land in question form a vital part of a
FIRST DIVISION adopted by the municipality of Cabuyao in watershed area.
PARDO, J. 1979, as certified by the Housing and Land
Use Regulatory Board. Another factor that needs to be mentioned is the fact that
On December 12, 1989, Secretary of during the DARAB hearing, petitioner presented proof that the
Agrarian Reform Miriam Defensor Santiago Casile property has slopes of 18% and over, which exempted
sent two (2) notices of acquisition to the land from the coverage of CARL.
petitioner, stating that petitioner's
landholdings had been placed under the Hence, the Court remanded the case to the DARAB for re-
Comprehensive Agrarian Reform Program. evaluation and determination of the nature of the parcels of
On April 6, 1990, petitioner sent a letter to land involved to resolve the issue of its coverage by the
the Land Bank of the Philippines stating that Comprehensive Land Reform Program.
its property under the aforesaid land titles
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were exempt from CARP coverage because In the meantime, the effects of the CLOAs issued by the DAR
they had been classified as watershed area to supposed farmer beneficiaries shall continue to be stayed
and were the subject of a pending petition by the temporary restraining order issued on December 15,
for land conversion. 1993, which shall remain in effect until final decision on the
On January 5, 1994, the Sangguniang Bayan case.
of Cabuyao, Laguna issued a Resolution
voiding the zoning classification of the land
at Barangay Casile as Park and declaring that
the land is now classified as agricultural
land.
41. [41], Ros v. DAR, Conversion of Petitioners are the owners/developers of WON the reclassification NO. The authority of the DAR to approve conversions of
G.R. No. 132477, Agricultural several parcels of land located in Arpili, of the subject lands to agricultural lands covered by Rep. Act No. 6657 to non-
Aug. 31, 2005, 468 Lands Balamban, Cebu. By virtue of Municipal industrial use by the agricultural uses has not been pierced by the passage of the
SCRA 471 (2005) Sec. 65 Ordinance No. 101 passed by the Municipal Municipality of Balamban, Local Government Code. The Code explicitly provides that
Council of Balamban, Cebu, these lands Cebu pursuant to its "nothing in this section shall be construed as repealing or
were reclassified as industrial lands. authority under Section modifying in any manner the provisions of Rep. Act No. 6657."
On 03 April 1995, the Provincial Board of 20(a) of Republic Act No.
Cebu approved Balamban’s land use plan 7160 or the Local After the passage of Republic Act No. 6657, otherwise known
and adopted en toto Balamban’s Municipal Government Code of 1991 as Comprehensive Agrarian Reform Program, agricultural
Ordinance No. 101 with the passage of (the "LGC") has the effect lands, though reclassified, have to go through the process of
Resolution No. 836-95 and Provincial of taking such lands out of conversion, jurisdiction over which is vested in the DAR.
Ordinance No. 95-8, respectively. As part of the coverage of the CARL However, agricultural lands already reclassified before the
their preparation for the development of and beyond the effectivity of Rep. Act No. 6657 are exempted from
the subject lands as an industrial park, jurisdiction of the DAR conversion.
petitioners secured all the necessary permits
and appropriate government certifications.
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Subsequently, on 30 March 1999, the Nevertheless, emphasis must be given to the fact that DAR’s
Secretary of Agrarian Reform issued DAR AO conversion authority can only be exercised after the effectivity
No. 01-99, entitled "Revised Rules and of Republic Act No. 6657 on 15 June 1988. The said date
Regulations on the Conversion of served as the cut-off period for automatic reclassification or
Agricultural Lands to Non-agricultural Uses," rezoning of agricultural lands that no longer require any DAR
amending and updating the previous rules conversion clearance or authority. Thereafter, reclassification
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on land use conversion. Its coverage of agricultural lands is already subject to DAR’s conversion
includes the following agricultural lands, to authority. Reclassification alone will not suffice to use the
wit: (1) those to be converted to residential, agricultural lands for other purposes. Conversion is needed to
commercial, industrial, institutional and change the current use of reclassified agricultural lands.
other non-agricultural purposes; (2) those to
be devoted to another type of agricultural
activity such as livestock, poultry, and
fishpond ─ the effect of which is to exempt
the land from the Comprehensive Agrarian
Reform Program (CARP) coverage; (3) those
to be converted to non-agricultural use
other than that previously authorized; and
(4) those reclassified to residential,
commercial, industrial, or other non-
agricultural uses on or after the effectivity of
Republic Act No. 6657 on 15 June 1988
pursuant to Section 20 of Republic Act No.
7160 and other pertinent laws and
regulations, and are to be converted to such
uses.
On 28 February 2002, the Secretary of
Agrarian Reform issued another
Administrative Order, i.e., DAR AO No. 01-
02, entitled "2002 Comprehensive Rules on
Land Use Conversion," which further
amended DAR AO No. 07-97 and DAR AO
No. 01-99, and repealed all issuances
inconsistent therewith. The aforesaid DAR
AO No. 01-02 covers all applications for
conversion from agricultural to non-
agricultural uses or to another agricultural
use.
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43. [43], Fortich v. Conversion of This case involves a 144-hectare land WON the final and NO. When the Office of the President issued the Order dated
Corona, G.R. No. Agricultural located at San Vicente, Sumilao, Bukidnon, executory Decision dated June 23,1997 declaring the Decision of March 29, 1996 final
131457, April 24, Lands owned by the Norberto Quisumbing, Sr. March 29,1996 converting and executory, as no one has seasonably filed a motion for
1998, 289 SCRA 624 Sec. 65 Management and Development Corporation the land in question from reconsideration thereto, the said Office had lost its jurisdiction
(1998) (NQSRMDC), one of the petitioners. agricultural to agro- to re-open the case, more so modify its Decision, the pertinent
SECOND DIVISION industrial can still be portions of which read:
MARTINEZ, J. In 1984, the land was leased as a pineapple substantially modified by
plantation to the Philippine Packing the Win-Win Resolution. “After a careful evaluation of the petition vis--vis the grounds
Corporation, now Del Monte Philippines, upon which the denial thereof by Secretary Garilao was based,
Inc. (DMPI), a multinational corporation, for we find that the instant application for conversion by the
a period of ten (10) years under the Crop Municipality of Sumilao, Bukidnon is impressed with merit. To
Producer and Growers Agreement duly be sure, converting the land in question from agricultural to
annotated in the certificate of title. The agro-industrial would open great opportunities for
lease expired in April, 1994. employment and bring about real development in the area
towards a sustained economic growth of the municipality. On
In October, 1991, during the existence of the the other hand, distributing the land to would-be beneficiaries
lease, the Department of Agrarian Reform (who are not even tenants, as there are none) does not
(DAR) placed the entire 144-hectare guarantee such benefits.
property under compulsory acquisition and
assessed the land value at P2.38 million. Nevertheless, on the issue that the land is considered a prime
agricultural land with irrigation facility it maybe appropriate to
In February, 1992, NQSRMDC sought and mention that, as claimed by petitioner, while it is true that
was granted by the DAR Adjudication Board there is, indeed, an irrigation facility in the area, the same
(DARAB), through its Provincial Agrarian merely passes thru the property (as a right of way) to provide
Reform Adjudicator (PARAD) in DARAB Case water to the ricelands located on the lower portion thereof.
No. X-576, a writ of prohibition with The land itself, subject of the instant petition, is not irrigated
preliminary injunction. as the same was, for several years, planted with pineapple by
the Philippine Packing Corporation.
Provincial Development Council (PDC) of
Bukidnon, headed by Governor Carlos O. On the issue that the land has long been covered by a Notice
Fortich, passed Resolution No. 6, dated of Compulsory Acquisition (NCA) and that the existing policy
January 7, 1993, designating certain areas on withdrawal or lifting on areas covered by NCA is not
along Bukidnon-Sayre Highway as part of the applicable, suffice it to state that the said NCA was declared
null and void by the Department of Agrarian Reform
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Bukidnon Agro-Industrial Zones where the Adjudication Board (DARAB) as early as March 1, 1992.
subject property is situated. Deciding in favor of NQSRMDC, the DARAB correctly pointed
out that under Section 8 of R.A. No. 6657, the subject property
On March 4, 1993, the Sangguniang Bayan could not validly be the subject of compulsory acquisition until
of Sumilao, Bukidnon enacted Ordinance No. after the expiration of the lease contract with Del Monte
24 converting or re-classifying 144 hectares Philippines, a Multi-National Company, or until April 1994, and
of land in Bgy. San Vicente, said ordered the DAR Regional Office and the Land Bank of the
Municipality, from agricultural to Philippines, both in Butuan City, to `desist from pursuing any
industrial/institutional activity or activities covering petitioners land.
On 12 October 1993, the Bukidnon Neither can the assertion that there is no clear and tangible
Provincial Land Use Committee approved compensation package arrangements for the beneficiaries
the said Ordinance. Accordingly, on 11 hold water as, in the first place, there are no beneficiaries to
December 1993, the instant application for speak about, for the land is not tenanted as already stated.
conversion was filed by Mr. Gaudencio
Beduya in behalf of NQSRMDC/BAIDA Nor can procedural lapses in the manner of
(Bukidnon Agro-Industrial Development identifying/reclassifying the subject property for agro-
Association). industrial purposes be allowed to defeat the very purpose of
the law granting autonomy to local government units in the
On November 14, 1994, the DAR, thru management of their local affairs. Stated more simply, the
Secretary Garilao, invoking its powers to language of Section 20 of R.A. No. 7160, supra, is clear and
approve conversion of lands under Section affords no room for any other interpretation. By unequivocal
65 of R.A. No. 6657, issued an Order denying legal mandate, it grants local government units autonomy in
the instant application for the conversion of their local affairs including the power to convert portions of
the subject land from agricultural to agro- their agricultural lands and provide for the manner of their
industrial and, instead, placed the same utilization and disposition to enable them to attain their fullest
under the compulsory coverage of CARP and development as self-reliant communities.’’
directed the distribution thereof to all
qualified beneficiaries.
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1987, as well as the Rules of the direct and indirect contempts in the same manner and subject
Adjudication Board of the Department of to the same penalties as provided in the Rules of Court.
Agrarian Reform, jurisdiction of the Regional
Trial Court over agrarian cases had been Section 56 of RA 6657, on the other hand, confers "special
transferred to the Department of Agrarian jurisdiction" on "Special Agrarian Courts," which are Regional
Reform. Trial Courts designated by the Supreme Court — at least one
(1) branch within each province — to act as such. These
CA upheld decision of Trial Court. Regional Trial Courts qua Special Agrarian Courts have,
according to Section 57 of the same law, original and exclusive
jurisdiction over:
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docketed as Civil Case No. B-2333. Amante, Pursuant to Section 50 of RA 6657, the DAR adopted the
et al. alleged that: they are residents of DARAB Revised Rules, Rule II (Jurisdiction of the Adjudication
Barangay Casile, Cabuyao, Laguna, which Board), which of which provides:
covers an area of around 300 hectares; in
1910, their ancestors started occupying the SECTION 1. Primary, Original and Appellate Jurisdiction. – The
area, built their houses and planted fruit- Agrarian Reform Adjudication Board shall have primary
bearing trees thereon, and since then, have jurisdiction, both original and appellate, to determine and
been peacefully occupying the land; some adjudicate all agrarian disputes, cases, controversies, and
time in June 3, 1985, SRRDC’s security matters or incidents involving the implementation of the
people illegally entered Bgy. Casile and Comprehensive Agrarian Reform Program under Republic Act
fenced the area; SRRDC’s men also entered No. 6657, Executive Order Nos. 229, 228 and 129-A, Republic
the barangay on November 4, 1985, cut Act No. 3844 as amended by Republic Act No. 6389,
down the trees, burned their huts, and Presidential Decree No. 27 and other agrarian laws and their
barred the lone jeepney from entering the implementing rules and regulations.
Canlubang Sugar Estate; as a result of these
acts, Amante, et al. were deprived of Specifically, such jurisdiction shall extend over but not be
possession and cultivation of their lands. limited to the following:
While the injunction and ejectment cases a) Cases involving the rights and obligations of persons
were still in process, it appears that in engaged in the cultivation and use of agricultural land covered
August, 1989, the Municipal Agrarian by the Comprehensive Agrarian Reform Program (CARP) and
Reform Office (MARO) issued a Notice of other agrarian laws;
Coverage to SRRDC.
b) Cases involving the valuation of land, and determination
On December 12, 1989, Secretary of and payment of just compensation, fixing and collection of
Agrarian Reform Miriam Defensor Santiago lease rentals, disturbance compensation, amortization
sent two (2) notices of acquisition to payments, and similar disputes concerning the functions of the
petitioner, stating that petitioner’s Land Bank;
landholdings covered by TCT Nos. T-81949
and T-84891, containing an area of 188.2858 c) Cases involving the annulment or cancellation of orders or
and 58.5800 hectares, valued at decisions of DAR officials other than the Secretary, lease
P4,417,735.65 and P1,220,229.93, contracts or deeds of sale or their amendments under the
respectively, had been placed under the administration and disposition of the DAR and LBP;
Comprehensive Agrarian Reform Program.
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petitioner would vacate the land upon It is irrefutable in the case at bar that the subject land which
demand. Petitioner occupied the land used to be an idle, swampy land was converted by the
without paying any rental and converted the petitioner into a fishpond. And it is settled that a fishpond is
same into a fishpond. an agricultural land.
But a case involving an agricultural land does not automatically
In 1990, private respondent through her make such case an agrarian dispute upon which the DARAB
overseer demanded from petitioner the has jurisdiction.
return of the land, but the latter refused. [Reiterates essential requisites of tenancy relationship]
The fact remains that the existence of all the requisites of a
A complaint for unlawful detainer was filed tenancy relationship was not proven by the petitioner. In the
by private respondent against petitioner absence of a tenancy relationship, the complaint for unlawful
before the Municipal Trial Court (MTC) of detainer is properly within the jurisdiction of the Municipal
Gapan, Nueva Ecija. Petitioner set up the Trial Court.
following defenses: (a) that the complaint
was triggered by his refusal to increase his
lease rental; (b) the subject land is a
fishpond and therefore is agricultural land;
and (c) that lack of formal demand to vacate
exposes the complaint to dismissal for
insufficiency of cause of action.
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On April 1, 1992, private respondent filed a The issue of who can harvest the mangoes and when they can
Petition for Injunction and Damages with an be harvested is an incident ancillary to the main petition for
application for the issuance of a preliminary injunction. As such, it is dependent on the main case.
injunction with the DARAB, praying that Inasmuch as the DARAB has no jurisdiction to hear and decide
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petitioner be enjoined from preventing the controversy between the parties, necessarily, the motion
private respondent from gathering the for intervention loses the leg on which it can stand. This issue,
mango fruits lest they "over-mature and after all, can be resolved by the trial court, which has the
become useless." jurisdiction to order the gathering of the mango fruits and
depositing the proceeds with it, considering that an action has
The Provincial Adjudicator Erasmo SP. Cruz already been filed before it on the specific issue of ownership.
of the DARAB issued an order on April 3,
1992, allowing the gathering of the mango
fruits and directing that the proceeds
thereof be deposited with the Adjudication
Board.
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tenanted by one Domingo Pastolero been lodged in an administrative body of special competence.
(Domingo), husband of Adoracion Pastolero For agrarian reform cases, jurisdiction is vested in the
(Adoracion). When Domingo passed away, Department of Agrarian Reform (DAR); more specifically, in
Adoracion together with her son Elpidio the Department of Agrarian Reform Adjudication Board
Pastolero, assumed the tenancy rights of (DARAB). Executive Order 229 vested the DAR with (1) quasi-
Domingo over the subject land. judicial powers to determine and adjudicate agrarian reform
However, on December 29, 1983, matters; and (2) jurisdiction over all matters involving the
Adoracion, by executing a notarized implementation of agrarian reform, except those falling under
Pinanumpaang Salaysay with the conformity the exclusive original jurisdiction of the Department of
of Leon, and for a consideration of Agriculture and the Department of Environment and Natural
P72,500.00, transferred her rights in favor of Resources.
petitioner Otilia Sta. Ana (petitioner) who,
together with her husband, Marciano de la Simply put, agrarian disputes, as defined by law and settled in
Cruz (Marciano), became the new tenants of jurisprudence, are within the primary and exclusive original
the subject land. jurisdiction of the PARAD and the DARAB, while issues of
Circumstances transpired which abraded the retention and non-coverage of a land under agrarian reform,
relationship, and on December 1, 1989, among others, are within the domain of the DAR Secretary.
respondents filed Complaint for Ejectment
due to Non-Payment of Lease Rentals. Thus, Section 3, Rule II of the 2003 DARAB Rules of Procedure
provides:
Respondents alleged that it was their
agreement with petitioner and Marciano to SECTION 3. Agrarian Law Implementation Cases. – The
increase the existing rentals from 36 cavans Adjudicator or the Board shall have no jurisdiction over
to 45 cavans, and that, if respondents matters involving the administrative implementation of RA No.
wanted to repossess the property, they only 6657, otherwise known as the Comprehensive Agrarian
had to pay the petitioner the amount of Reform Law (CARL) of 1988 and other agrarian laws as
P72,500.00, the same amount paid by the enunciated by pertinent rules and administrative orders,
latter to Adoracion. Respondents further which shall be under the exclusive prerogative of and
averred that despite repeated demands, cognizable by the Office of the Secretary of the DAR in
petitioner refused to pay the actual rentals accordance with his issuances, to wit:
from July 1985 to September 1989, in
violation of Presidential Decree (P.D.) No. 3.1 Classification and identification of landholdings for
817; and that the subject land had been coverage under the agrarian reform program and the initial
declared, upon the recommendation of the
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Human Settlements Committee, suitable for issuance of CLOAs and EPs, including protests or oppositions
commercial and industrial purposes, per thereto and petitions for lifting of such coverage;
Zoning Ordinance of 1981 of the
Municipality of Sta. Rosa, Laguna. 3.2 Classification, identification, inclusion, exclusion,
Respondents prayed that petitioner be qualification, or disqualification of potential/actual farmer-
ejected from the subject land and be beneficiaries;
directed to pay P75,016.00 as unpaid
rentals. 3.3 Subdivision surveys of land under CARP;
Petitioner and Marciano denied that there 3.4 Recall, or cancellation of provisional lease rentals,
was an agreement to increase the existing Certificates of Land Transfers (CLTs) and CARP Beneficiary
rental which was already fixed at 36 cavans Certificates (CBCs) in cases outside the purview of Presidential
of palay, once or twice a year depending on Decree (PD) No. 816, including the issuance, recall, or
the availability of irrigation water; that cancellation of EPs or CLOAs not yet registered with the
neither was there an agreement as to the Register of Deeds;
future surrender of the land in favor of the
respondents; that they did not refuse to pay 3.5 Exercise of the right of retention by the landowner;
the rentals because they even sent verbal
and written notices to the respondents, 3.6 Application for exemption from coverage under Section 10
advising them to accept the same; and that of RA 6657;
in view of the latter’s failure to respond,
petitioner and Marciano were compelled to 3.7 Application for exemption pursuant to Department of
sell the harvest and to deposit the proceeds Justice (DOJ) Opinion No. 44 (1990);
thereof in Savings Account No. 9166 with
the Universal Savings Bank at Sta. Rosa, 3.8 Exclusion from CARP coverage of agricultural land used for
Laguna under the names of Leon and livestock, swine, and poultry raising;
Marciano. As their special affirmative
defense, petitioner and Marciano claimed 3.9 Cases of exemption/exclusion of fish pond and prawn
that Marciano is a farmer-beneficiary of the farms from the coverage of CARP pursuant to RA 7881;
subject land pursuant to P.D. 27. Petitioner
and Marciano prayed for the outright 3.10 Issuance of Certificate of Exemption for land subject of
dismissal of the complaint and for the Voluntary Offer to Sell (VOS) and Compulsory Acquisition (CA)
declaration of Marciano as full owner of the found unsuitable for agricultural purposes;
subject land.
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51. Laguna Estates Resolution of The facts, as found by the Court of Appeals, WON the DARAB has NO. The DARAB has no jurisdiction over such issue. For DARAB
Development Agrarian Disputes are as follows: jurisdiction to grant to have jurisdiction over a case, there must exist a tenancy
Corporation vs. Sec. 50, 51, 52, private respondents who relationship between the parties.
Court of Appeals 53 "On 12 December 1989, some 234.76 are beneficiaries of an Obviously, the issue of a right of way or easement over private
335 SCRA 29 , hectares of agricultural land situated in agrarian reform program property without tenancy relations is outside the jurisdiction
G.R. No. 119357 Barangay Casile, Cabuyao, Laguna belonging or tenants of adjoining of the DARAB. This is not an agrarian issue. Jurisdiction is
July 05, 2000 to the Sta. Rosa Realty Development landholdings a right of vested in a court of general jurisdiction.
FIRST DIVISION Corporation ("SRRDC", hereafter) was way over petitioners
PARDO, J. placed by the Department of Agrarian network of private roads
Reform (DAR), through its adjudicatory arm, intended for their
public respondent DARAB, under the exclusive use
compulsory acquisition scheme of the
Comprehensive Agrarian Reform Program
(CARP), and subsequently, Certificates of
Land Ownership Award (CLOA’s) numbered
00130422, 00130423 and 00130424 with
TCT Nos. C-168, C-167 and C-169 334 were
issued and award to farmers-beneficiaries,
private respondents herein, namely: Rosa T.
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March 29, 2010 Sec. 50, 51, 52, beneficiaries over a portion of land involving the identification the CARP, a matter exclusively cognizable by the Secretary of
THIRD DIVISION 53 registered in the name of Lilia E. Gala, Luisita and selection of qualified the Department of Agrarian Reform, and beyond the
PERALTA, J. E. Gala and Teresita E. Gala, respectively, farmer-beneficiaries of a jurisdiction of the DARAB.
with an aggregate area of 33.5006 hectares, land covered by the CARP
more or less. The finding of the MARO declaring petitioners as beneficiaries
of the land in dispute must, therefore, be accorded respect. It
PARAD dismissed the case, ruling that it had should also be equally binding on the DARAB for the simple
no authority to rule on the selection of reason that the latter has no appellate jurisdiction over the
farmer-beneficiaries, as the same was a former: The DARAB cannot review, much less reverse, the
purely administrative matter under the administrative findings of DAR. Instead, the DARAB would do
jurisdiction of the DAR. well to defer to DAR’s expertise when it comes to the
identification and selection of beneficiaries, as it did in Lercana
DARAB set aside PARAD decision. where this Court noted with approval that, in the dispositive
portion of its decision, left to the concerned DAR Offices the
CA reversed and set aside DARAB decision. determination of who were or should be agrarian reform
beneficiaries. In fact, this course of action available to the
Respondents then filed a Motion for DARAB is now embodied in Rule II of its 2003 Rules of
Reconsideration, which the CA granted, Procedure, thus:
reinstating DARAB decision.
Section 5. Referral to Office of the Secretary (OSEC). − In the
event that a case filed before the Adjudicator shall necessitate
the determination of a prejudicial issue involving an agrarian
law implementation case, the Adjudicator shall suspend the
case and, for purposes of expediency, refer the same to the
Office of the Secretary or his authorized representative in the
locality x x x.
54. Philippine Role of SAC in Petitioner Philippine Veterans Bank owned WON a petition for the NO. The pertinent provisions of R.A. No. 6657 provides:
Veterans Bank vs. Land Valuation four parcels of land in Tagum, Davao, which judicial fixing of just
Court of Appeals and Penal are covered by Transfer Certificates of Title compensation before SECTION 50. Quasi-Judicial Power of the DAR. — The DAR is
322 SCRA 139 , Provisions Nos. T-38666, T-38667, T-6236, and T- Special Agrarian Court hereby vested with primary jurisdiction to determine and
G.R. No. 132767 Sec. 56, 57 27591. The lands were taken by the should be [filed] within adjudicate agrarian reform matters and shall have exclusive
January 18, 2000 Department of Agrarian Reform for the period provided in original jurisdiction over all matters involving the
Second Division distribution to landless farmers pursuant to Rule XIII, Section 11 of the implementation of agrarian reform, except those falling under
Mendoza, J. the Comprehensive Agrarian Reform Law DARAB Rules of Procedure the exclusive jurisdiction of the Department of Agriculture
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(R.A. No. 6657). Dissatisfied with the and before the decision of (DA) and the Department of Environment and Natural
valuation of the land made by respondents the DAR Provincial Resources (DENR) . . . .
Land Bank of the Philippines and the Adjudicator becomes final
Department of Agrarian Reform and executory? SECTION 57. Special Jurisdiction. — The Special Agrarian
Adjudication Board (DARAB), petitioner filed Courts shall have original and exclusive jurisdiction over all
a petition for a determination of the just [Alternative: WON DAR petitions for the determination of just compensation to
compensation for its property. The petition adjudicators have no landowners, and the prosecution of all criminal offenses under
was filed on January 26, 1994 with the jurisdiction to determine this Act. The Rules of Court shall apply to all proceedings
Regional Trial Court, Branch 2, Tagum, the just compensation for before the Special Agrarian Courts, unless modified by this Act.
Davao, which on February 23, 1995, the taking of lands under
dismissed the petition on the ground that it the Comprehensive The Special Agrarian Courts shall decide all appropriate cases
was filed beyond the 15-day reglementary Agrarian Reform Program, under their special jurisdiction within thirty (30) days from
period for filing appeals from the orders of because such jurisdiction submission of the case for decision.
the DARAB. is vested in Regional Trial
Courts designated as There is nothing contradictory between the provision of §50
Special Agrarian Courts granting the DAR primary jurisdiction to determine and
and, therefore, a petition adjudicate "agrarian reform matters" and exclusive original
for the fixing of just jurisdiction over "all matters involving the implementation of
compensation can be filed agrarian reform," which includes the determination of
beyond the 15-day period questions of just compensation, and the provision of §57
of appeal provided from granting Regional Trial Courts "original and exclusive
the decision of the DAR] jurisdiction" over (1) all petitions for the determination of just
compensation to landowner, and (2) prosecutions of criminal
offenses under R.A. No. 6657. The first refers to administrative
proceedings, while the second refers to judicial proceedings.
Under R.A. No. 6657, the Land Bank of the Philippines is
charged with the preliminary determination of the value of
lands placed under land reform program and the
compensation to be paid for their taking. It initiates the
acquisition of agricultural lands by notifying the landowner of
the government’s intention to acquire his land and the
valuation of the same as determined by the Land Bank. Within
30 days from receipt of notice, the landowner shall inform the
DAR of his acceptance or rejection of the offer. In the event
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preliminary determination of just (15) days from receipt of the notice thereof. Any party shall be
compensation in accordance with Section 16 entitled to only one motion for reconsideration.
(d) of the CARL.
In a September 4, 2002 judgment, PARAD In Philippine Veterans Bank v. Court of Appeals and in
ordered LBP to pay petitioner the Department of Agrarian Reform Adjudication Board v. Lubrica,
recomputed amount of Php12,179,492.50. we explained the consequence of the said rule to the effect
LBP filed with RTC petition for fixing just that the adjudicator's decision on land valuation attains finality
compensation 26 days after it received a after the lapse of the 15-day period. Considering therefore
copy of PARAD’s decision. that, in this case, LBP's petition with the SAC for the fixing of
On November 11, 2003, granted just compensation was filed 26 days after its receipt of the
respondent’s motion for the issuance of a PARAD's decision, or eleven days beyond the reglementary
writ of execution. period, the latter had already attained finality. The PARAD
On February 23, 2004, Office of the PARAD could very well issue the writ of execution.
ordered the issuance of a writ of execution.
LBP, on March 12, 2004, moved to quash the
said February 23, 2004 PARAD resolution.
On April 6, 2004, even as the motion to
quash was yet unresolved, LBP instituted a
petition for certiorari before the CA.
CA found LBP guilty of forum-shopping for
not disclosing the pendency of the Motion
to Quash and dismissed the petition.
56. Land Bank of the Role of SAC in Respondent Heirs of Eleuterio Cruz are WON CA erred in adopting YES. The Court held in Celada that the formula outlined in DAR
Philippines vs. Land Valuation Anicia Cruz-Papa, Resurreccion Cruz- SAC ruling that it was A.O. No. 5, series of 1998 should be applied in computing just
Heirs of Eleuterio and Penal Pagcaliwagan, Antonio D. Cruz, Lourdes constrained to adopt the compensation.
Cruz Provisions Cruz-Doma, Lorna Cruz-Felipe, Mamerto D. finding of the PARAD
567 SCRA 31 , Sec. 56, 57 Cruz, Eduardo D. Cruz and Victoria Cruz- which did not adhere to In Land Bank of the Philippines v. Sps. Banal, because the trial
G.R. No. 175175 Dumlao. Eleuterio Cruz is the registered the formula prescribed in court therein based its valuation upon a different formula and
September 29, owner of an unirrigated riceland situated in regulations issued by the did not conduct any hearing for the reception of evidence, the
2008 Lakambini, Tuao, Cagayan of which 13.5550 DAR Court ordered a remand of the case to the SAC for trial on the
hectares was placed by the government merits.
under the coverage of the operation land
transfer program under Presidential Decree Hence, the Court ordered that Agrarian Case No. 0058 is
(P.D.) No. 27. REMANDED to the Regional Trial Court, Branch 1, Tuguegarao
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Petitioner pegged the value of the acquired City, Cagayan, which is directed to determine with dispatch
landholding at P106,935.76 based on the the just compensation due respondents strictly in accordance
guidelines set forth under P.D. No. 277 and with DAR A.O. No. 5, series of 1998.
Executive Order (E.O.) No. 228.
Respondents rejected petitioner’s valuation
and instituted an action for a summary
proceeding for the preliminary
determination of just compensation before
the PARAD.
A perusal of the PARAD's Decision dated 23
November 1999, which mandated payment
of just compensation in the amount of
P80,000.00 per hectare, reveals that the
PARAD did not adhere to the formula
prescribed in any of the aforementioned
regulations issued by the DAR or was at least
silent on the applicability of the
aforementioned DAR regulations to the
question of just compensation. The PARAD
decision also did not refer to any evidence in
support of its finding.
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On December 19, 1997, RTC fixed just What indeed is the proper mode of appeal from decisions of
compensation as follows: the Regional Trial Courts, sitting as Special Agrarian Courts, in
a. P1,260,000.00 for the 16.69 hectares of the determination of just compensation an appeal by way of a
riceland; petition for review or an ordinary appeal?
b. P2,957,250.00 for the 30.4160 hectares of
sugarland. Section 2 of Rule 41 of the 1997 Revised Rules of Civil
On March 17, 1998, the DAR filed in the CA a Procedure provides for three modes of appeal, to wit:
petition for review of the decision of the
SAC. Sec. 2. Modes of Appeal.
Petitioner LBP also initiated in the CA an
appeal of the same decision of the SAC by (a) Ordinary appeal. The appeal to the Court of Appeals in
filing a notice of appeal. cases decided by the Regional Trial Court in the exercise of its
CA dismissed the ordinary appeal instituted original jurisdiction shall be taken by filing a notice of appeal
by petitioner LBP, reasoning that “the mode with the court which rendered the judgment or final order
of appeal followed by the petitioner was appealed from and serving a copy thereof upon the adverse
erroneous considering that Section 60 of RA party. No record on appeal shall be required except in special
6657, otherwise known as the proceedings and other cases or multiple or separate appeals
Comprehensive Agrarian Reform Law, where the law or these Rules so require. In such cases, the
mandates that appeals from decisions of record on appeal shall be filed and served in like manner.
Special Agrarian Courts should be by
petition for review. Therefore, the notice of (b) Petition for Review. The appeal to the Court of Appeals in
appeal filed by LBP was ineffectual and did cases decided by the Regional Trial Court in the exercise of its
not stop the running of the period of appellate jurisdiction shall be by petition for review in
appeal.” accordance with Rule 42.
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