Agrarian Law Reform Full Cases
Agrarian Law Reform Full Cases
Agrarian Law Reform Full Cases
Supreme Court
Manila
THIRD DIVISION
YNARES-SANTIAGO, J.,
- versus - Chairperson,
AUSTRIA-MARTINEZ,
CHICO-NAZARIO,
NACHURA, and
REYES, JJ.
SPOUSES LEON G. CARPO and AURORA CARPO,
Respondents. Promulgated:
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DECISION
NACHURA, J.:
Before this Court is a Petition for Review on Certiorari[1] under Rule 45 of the Rules of Civil
Procedure seeking the reversal of the Court of Appeals (CA) Decision[2] dated March 5, 2004
which reversed and set aside the Decision[3] of the Department of Agrarian Reform Adjudication
Board (DARAB) dated June 24, 1998 and reinstated the Decision[4] of the Provincial Agrarian
Reform Adjudicator (PARAD) of Laguna dated October 12, 1993.
The Facts
Respondent Leon Carpo[5] (Leon) and his brother Francisco G. Carpo are the registered co-
owners of a parcel of land designated as Lot No. 2175 of the Santa Rosa Estate Subdivision,
situated at Sta. Rosa, Laguna, covered by Transfer Certificate of Title (TCT) No. T-17272[6] of
the Register of Deeds of Laguna, with an area of 91,337 square meters, more or less. A portion
thereof, consisting of 3.5 hectares, pertained to Leon and his wife, respondent Aurora Carpo. It
was devoted to rice and corn production (subject land) and was tenanted by one Domingo
Pastolero (Domingo), husband of Adoracion Pastolero (Adoracion).[7] When Domingo passed
away, Adoracion together with her son Elpidio Pastolero, assumed the tenancy rights of
Domingo over the subject land.
In their Answer[12] dated January 26, 1990, petitioner and Marciano denied that there
was an agreement to increase the existing rental which was already fixed at 36 cavans of palay,
once or twice a year depending on the availability of irrigation water; that neither was there an
agreement as to the future surrender of the land in favor of the respondents; that they did not
refuse to pay the rentals because they even sent verbal and written notices to the respondents,
advising them to accept the same; and that in view of the latters failure to respond, petitioner
and Marciano were compelled to sell the harvest and to deposit the proceeds thereof in Savings
Account No. 9166 with the Universal Savings Bank at Sta. Rosa, Laguna under the names of
Leon and Marciano. As their special affirmative defense, petitioner and Marciano claimed that
Marciano is a farmer-beneficiary of the subject land pursuant to P.D. 27. Petitioner and
Marciano prayed for the outright dismissal of the complaint and for the declaration of Marciano
as full owner of the subject land.
On October 12, 1993, the PARAD ruled that petitioner and Marciano deliberately defaulted in
the payment of the rentals due the respondents. The PARAD found that the deposit made with
Republic Planters Bank was actually in the names of petitioner and Marciano, hence, personal
to them. The PARAD also found that it was only during the hearing that petitioner and Marciano
deposited the amount of P40,000.00 with the Universal Savings Bank for the unpaid rentals. As
such the PARAD considered the deposits as late payments and as implied admission that
indeed petitioner and Marciano did not pay the past rentals when they fell due. The PARAD
further held and disposed thus:
The intent of the defendant to subject the said area under PD 27 should pass the
criteria set. Foremost is the determination of the aggregate riceland of plaintiff.
He must have more than seven (7) hectares of land principally devoted to the
planting of palay. Area over seven (7) hectares shall be the one to be covered by
PD 27 on Operation Land Transfer (OLT). In the case at bar, defendants failed to
prove that plaintiff has more than the required riceland. In fact the subject 3.5
hectares are jointly owned by two. Hence, coverage for OLT is remote.
Defendant claimed that plaintiff is covered by LOI 474, and therefore, he is zero
retention of area. In reference to said law, wherein it provides landowner with
other agricultural land of more than 7 hectares, or have other industrial lands
from where he and his family derived resources, then, the owner cannot retain
any riceland. However, this is not applicable in the instant case, as the defendant
failed to prove that plaintiff has other source of income from where they will
derive their sustenance.
2. Directing the MARO of Sta. Rosa, Laguna to assist the parties in the
proper accounting of lease rentals to be paid by the defendants-
appellants to the plaintiffs-appellees.
No costs.
SO ORDERED.
Aggrieved, respondents appealed to the CA. On April 16, 2003, Marciano passed away.[14]
On March 5, 2004, the CA affirmed the factual findings of the PARAD that petitioner and
Marciano failed to pay the rentals and that there was no valid tender of payment. The CA added
that this failure to pay was tainted with bad faith and deliberate intent. Thus, petitioner and
Marciano did not legally comply with their duties as tenants. Moreover, the CA held that the
subject land was not covered by P.D. 27, Republic Act (R.A.) No. 6657 and Executive Order
(E.O.) No. 228, since the same had become a residential, commercial and industrial land, to wit:
In the case at bar, We opted to give more weight to the petitioners contention
that the subject landholding is for residential, commercial, and industrial
purposes as declared by zoning ordinance of 1981 of the town of Sta. Rosa,
Laguna upon recommendation of the Human Settlement Committee xxx. The
vicinity map of the subject landholding shows that it is almost beside Nissan
Motors Technopa[r]k and surrounded by the South Expressway and several
companies such as the Coca-Cola Bottlers Philippines, Inc. and Toyota Motors
Philippines along the Pulong Santa Cruz, National Road. The vicinity map shows
therefore that the subject landholding is a residential, commercial, and industrial
area exempted from the coverage of P.D. No. 27, Republic Act. No. 6657 and
Executive Order No. 228.
Petitioner asseverates that there is no evidence to support respondents' claim that the failure to
pay the lease rentals was tainted with malevolence, as the records are replete with acts
indicative of good faith on the part of the petitioner and Marciano and bad faith on the part of
respondents.
Moreover, petitioner claimed that the power to determine whether or not the subject land
is non-agricultural, hence, exempt from the coverage of the Comprehensive Agrarian Reform
Law (CARL), lies with the DAR, and not with the courts; that mere reclassification by way of a
zoning ordinance does not warrant the dispossession of a tenant but conversion does, and
entitles the tenant to payment of disturbance compensation; the legal concepts of
reclassification and conversion are separate and distinct from each other; that respondents'
complaint before the PARAD alleged and established the fact that the subject land is a riceland,
therefore, agricultural; that the CA failed to explain why it upheld the findings of the PARAD on
the issue of non-payment of lease rentals; and that though the issue of non-payment of lease
rentals is a question of fact, due to the conflict of the factual findings of the PARAD and CA with
those of the DARAB, petitioner asks that this Court review the evidence on record, and pursuant
to the CA decision in Cabero v. Caturna, et al.,[17] rule on whether petitioner willfully and
deliberately refused to pay lease rentals as to warrant her dispossession from the subject
land.[18]
On the other hand, respondents aver that petitioner and her family are wealthy, as they
own numerous properties in Sta. Rosa, Laguna including a luxurious house;[19] that, as such,
petitioner cannot be considered as a landless tenant deserving the protection of agrarian reform
laws; that the DARAB negated the highest degree of respect the factual findings of the
PARAD deserved; that petitioner's claims that Marciano repeatedly made
verbal and written notices[20] for Leon to accept their lease rentals were fraudulent designs to
disguise the deliberate intent of petitioner not to pay the lease rentals; that when Leon went to
petitioner's residence, petitioner did not pay the P10,000.00 due as lease rentals; that during the
hearing before the PARAD, when respondents' counsel requested that they be furnished a bank
certificate as to the existence of said bank deposits in Republic Planters Bank as of April 20,
1987 and October 1, 1987, petitioner herself commented,Nagdeposito ho talaga kami sa
pangalan namin;[21] that the statement of petitioner is an admission that bank deposits, if any,
were made, not in the name of Leon as contained in the written notices, but rather in the names
of petitioner and Marciano; that such certificate was not introduced in evidence and that upon
inquiry, said deposits do not actually exist; that per recent inquiry, the bank deposit in Universal
Savings Bank only contains P1,020.19 due to previous withdrawals made by Marciano; that the
foregoing circumstances indicate a pattern of fraudulent misrepresentations by the petitioner to
mislead the DARAB into believing that petitioner and Marciano did not deliberately refuse to pay
the lease rentals; that from July 18, 1985 up to the present, petitioner failed to pay the lease
rentals showing again, the deliberate refusal to pay; that this default on the part of the petitioner
has been recurring for several years already, thus depriving the respondents as landowners of
their share of the subject land in violation of the principle of social justice; that as raised in
respondents Omnibus Supplemental Motion for Reconsideration[22] before the DARAB and as
found by the CA based on its vicinity map,[23] the subject land is of a residential, commercial and
industrial character, exempted from agrarian reform coverage; and that the DARAB erred in not
finding the sale of the tenancy rights of Adoracion to petitioner and Marciano for P72,500.00
violative of P.D. 27 even if the same was with Leon's consent. The sale, respondents contend
was therefore, null and void ab initio, not susceptible of any ratification.[24]
Our Ruling
Before we resolve this case on the merits, a procedural issue must be disposed of.
Respondents strongly argue that the instant Petition was filed out of time because, while
petitioner originally claimed to have received her copy of the CA Resolution[25]dated June 28,
2004, denying her Motion for Reconsideration,[26] on July 12, 2004, petitioner eventually
admitted, after respondents showed proof to the contrary, that she actually received the said
Resolution on July 7, 2004.[27] Thus, petitioner had only up to July 22, 2004 to appeal the CA's
ruling to this Court. In this case, petitioner filed her Motion[28] for Extension of Time to File
Petition for Review on Certiorari (Motion) on July 23, 2004. As such, there was no more period
to extend. Further, the instant Petition was filed on August 27, 2004, or three (3) days beyond
the thirty-day extended period. Hence, respondents submit that the CA decision had already
become final and executory.[29]
Petitioner alleges that on July 15, 2004, she met with her counsel to engage the latter's
legal services. During said meeting, counsel asked petitioner about the date of receipt of the
assailed CA Resolution. Petitioner replied that she received her copy on July 12, 2004. On July
20, 2004, counsel filed an Entry of Appearance with the CA.[30] On July 23, 2004, petitioner
through counsel filed the Motion for Extension of Time to File Petition for Review. On August 11,
2004, petitioner received a copy of respondents' Opposition to the Motion. Thereafter, upon
verification, petitioner admitted that she received the copy of the CA Resolution on July 7, 2004.
Thus, her Motion was admittedly filed one day late. Petitioner begs the indulgence of this Court
for her oversight and mistake, attributing the same to her lack of education and old age.
Rules of procedure are merely tools designed to facilitate the attainment of justice. If the
application of the Rules would tend to frustrate rather than to promote justice, it is always within
our power to suspend the rules or except a particular case from their operation. Law and
jurisprudence grant to courts the prerogative to relax compliance with the procedural rules, even
the most mandatory in character, mindful of the duty to reconcile the need to put an end to
litigation speedily and the parties' right to an opportunity to be heard.[31]
In this case, petitioner was one day late in filing her Motion for Extension. To deny the
Petition on this ground alone is too harsh a penalty for a days delay, taking into consideration
the time, resources and effort spent by petitioner and even by the respondents, in order to
pursue this case all the way to this Court. Thus, we dispense with the apparent procedural
defect and resolve this case on the merits. The ends of justice are better served when cases are
determined on the merits with all parties given full opportunity to ventilate their causes and
defenses rather than on technicality or some procedural imperfections.[33]
In sum, there are two (2) ultimate issues that require resolution in this case:
1) Whether the CA erred in ruling that the subject land had already become
residential, commercial and/or industrial, thus, excluded from the coverage of our laws
on agrarian reform; and
2) Whether the petitioner, as an agricultural tenant, failed to pay her lease rentals when the
same fell due as to warrant her dispossession of the subject land.
On appeal, the DARAB concentrated on the issue of petitioners failure to pay lease
rentals. When the DARAB ruled that petitioner and Marciano did not deliberately fail to pay said
rentals, respondents raised a new issue in their Omnibus Motion that the transaction between
Adoracion and petitioner was void in violation of P.D. No. 27, despite the conformity
of Leon. This issue was not resolved by the DARAB.
Finally, when the case reached the CA, the appellate court affirmed the findings of the
PARAD that petitioner and Marciano deliberately and in bad faith did not pay the lease
rentals. The CA, however, also held that the subject land had already become a residential,
commercial and industrial area based on the vicinity map showing that the land was surrounded
by commercial and industrial establishments.
Without doubt, the PARAD acted without jurisdiction when it held that the subject land
was no longer covered by our agrarian laws because of the retention rights of the
respondents. The CA likewise acted without jurisdiction when it ruled that the land had become
non-agricultural based on a zoning ordinance of 1981 on the strength of a mere vicinity map.
These rulings violated the doctrine of primary jurisdiction.
The doctrine of primary jurisdiction precludes the courts from resolving a controversy over which
jurisdiction has initially been lodged in an administrative body of special competence. For
agrarian reform cases, jurisdiction is vested in the Department of Agrarian Reform (DAR); more
specifically, in the Department of Agrarian Reform Adjudication Board (DARAB). Executive
Order 229 vested the DAR with (1) quasi-judicial powers to determine and adjudicate agrarian
reform matters; and (2) jurisdiction over all matters involving the implementation of agrarian
reform, except those falling under the exclusive original jurisdiction of the Department of
Agriculture and the Department of Environment and Natural Resources.[34]
As held by this Court in Centeno v. Centeno [343 SCRA 153], "the DAR is vested
with the primary jurisdiction to determine and adjudicate agrarian reform matters
and shall have the exclusive jurisdiction over all matters involving the
implementation of the agrarian reform program." The DARAB has primary,
original and appellate jurisdiction "to determine and adjudicate all agrarian
disputes, cases, controversies, and matters or incidents involving the
implementation of the Comprehensive Agrarian Reform Program under R.A. No.
6657, E.O. Nos. 229, 228 and 129-A, R.A. No. 3844 as amended by R.A. No.
6389, P.D. No. 27 and other agrarian laws and their implementing rules and
regulations."
Under Section 3 (d) of R.A. No. 6657 (CARP Law), "agrarian dispute" is defined
to include "(d) . . . any controversy relating to tenurial arrangements, whether
leasehold, tenancy, stewardship or otherwise over lands devoted to agriculture,
including disputes concerning farmworkers associations or representation of
persons in negotiating, fixing, maintaining, changing or seeking to arrange terms
or conditions of such tenurial arrangements. It includes any controversy relating
to compensation of lands acquired under this Act and other terms and conditions
of transfer of ownership from landowners to farmworkers, tenants and other
agrarian reform beneficiaries, whether the disputants stand in the proximate
relation of farm operator and beneficiary, landowner and tenant, or lessor and
lessee."
Simply put, agrarian disputes, as defined by law and settled in jurisprudence, are within
the primary and exclusive original jurisdiction of the PARAD and the DARAB, while issues of
retention and non-coverage of a land under agrarian reform, among others, are within the
domain of the DAR Secretary.