Agrarian Law (Mendoza vs. Mendoza)

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JULIO MERCADO, 

Petitioner, vs. EDMUNDO MERCADO, Respondent.

G.R. No. 178672               March 19, 2009

Julio Mercado (petitioner) was a tenant of an agricultural land (the property)


owned by the grandfather of Edmundo Mercado (respondent). In 1976, JULIO
was issued a Certificate of Land Transfer 1 (CLT) covering the property pursuant
to Presidential Decree No. 27. Then 6 years after, in 1982, he was issued an
Emancipation Patent (EP).2

On the other hand, on August 1, 1994, EDMUNDO, relying on a Certificate of


Retention (CR) issued in his name on the strength of his grandfather’s Huling
Habilin,3 filed a complaint4 against JULIO, for rescission of contract,
cancellation of the CLT and EP, payment of rentals in arrears, and ejectment,
before the Provincial Adjudication Board (PARAB), Department of Agrarian
Reform Adjudication Board (DARAB).

EDMUNDO, alleged that JULIO’s CLT and EP were irregularly issued as the
property is covered by his CR, and that petitioner had not been paying rentals
on the property since 1979 despite repeated demands.

In his Answer,6 JULIO, invoking his rights under the EP, contends that
EDMUNDO’s CR was anomalously issued and, in any event, respondent’s
claim is barred by the statute of limitations (under Section 38 of Republic Act
No. 3844, as amended by Republic Act No. 6389.)

The PARAB, declaring that JULIO’s EP was legally and validly issued,
dismissed respondent’s complaint.7

EDMUNDO filed an appeal. the DARAB, reversed the PARAB’s decision. Also
finds the petitioner to have deliberately failed to comply with the law and
ordered the rescission of the leasehold contract between petitioner and
respondent, disposing as follows:

1. Declaring the respondent Julio Mercado guilty of deliberate non-


payment of lease rentals pursuant to Section 3 of Presidential Decree No.
816 and Section 26 and 36 of Republic Act No. 3844, as amended;

2. Ordering the rescission of the leasehold contract between the plaintiff


and respondent;

3. Ordering the ejectment of respondent Julio Mercado and all person or


persons acting in his behalf to vacate the area in dispute and deliver to
the same to the peaceful possession and enjoyment of the plaintiff-
appellant herein;
4. The concerned official of the DAR is hereby directed to cause the
cancellation of CLT No. 033197 and CLT No. 033198 from its record
considering that the land covered by said certificate had been certified as
retention areas;

The DARAB decision having become final and executory, a Writ of


Execution11 was issued.

The finality of the DARAB decision notwithstanding, JULIO filed a Petition


for Certiorari with Prayer for Preliminary Injunction 12 before the Court of
Appeals which dismissed it, due to, in the main, the finality of the DARAB
decision.13i

JULIO thereupon filed a Petition for Review on Certiorari 14 before Supreme


Court which it denied due to procedural flaws.15

SECOND PETITION

Undaunted, JULIO went back to the DARAB. He filed a Petition for Relief from
Judgment16 of the DARAB decision before the DARAB itself which denied the
same. JULIO went on to challenge the denial of the petition via Petition for
Review17 before the Court of Appeals, in which same petition he again sought
the review of the DARAB decision.

CA denied petitioner’s petition as well as his Motion for Reconsideration. 21 

Hence, the present petition22 which faults the Court of Appeals in deciding his
petition "in a way not in accord[ance with] law or with applicable decisions of
[this] Court"23 and raises the same arguments he raised before the Court of
Appeals.24

ISSUES: based on JULIO MERCADO’S contention before the CA

1. The assailed decision in DARAB Case was rendered WITHOUT or IN


EXCESS OF JURISDICTION and is, therefore, NULL and VOID ab initio;
and,

2. The Board seriously ERRED and/or GRAVELY ABUSED its discretion


amounting to lack or excess of jurisdiction when it issued the assailed
resolutions denying the petition and petitioner’s Motion for
Reconsideration despite the miserable failure of respondent to produce
any single authentic document that would prima facie establish his
ownership of the parcels of land in question to qualify him as a
"landlord" or "land owner" thereof and despite the clear showing therein
that the complaint filed by respondent, as well as the appeal he filed
before the Board a quo, was barred under the Statute of Limitations.
3. The Board seriously ERRED and/or GRAVELY ABUSED its discretion
amounting to lack or excess of jurisdiction when it rendered the assailed
decision in violation of petitioner’s constitutional right to due process of
law.19 (Emphasis and italics in the original)

RULING:The petition is bereft of merit.

1. On the issue of jurisdiction.

The DARAB decision in DARAB had long become final and executory, hence,
immutable and unalterable. It may thus no longer be modified in any respect,
even if the modification is meant to correct erroneous conclusions of fact or
law.25

JULIO insists that the decision is void for having been rendered without
jurisdiction, there having been no more tenancy relationship between him and
respondent after the issuance to him of the EP.

Since jurisdiction over the subject matter is determined by the allegations in


the complaint. Those allegations show the existence of the following elements of
a tenancy relationship between the parties.

[[[1) that the parties are the landowner and the tenant or agricultural lessee; 2)
that the subject matter of the relationship is an agricultural land; 3) that there
is consent between the parties to the relationship; 4) that the purpose of the
relationship is to bring about agricultural production; 5) that there is personal
cultivation on the part of the tenant or agricultural lessee; and 6) that the
harvest is shared between the landowner and the tenant or agricultural
lessee.29]]]

Furthermore, Jurisdiction over a case does not thus disappear the moment a
certificate of title is issued, for the issuance of such certificate is not a mode of
transfer of property but merely an evidence of such transfer. 32

And finally, IN ANY EVENT, petitioner may not question the jurisdiction of the
DARAB and its adjudicative arm at this late juncture of the proceedings, he
having actively participated in the proceedings below. 33

2. On the 2nd issue, the issue of denial of petitioner Julio’s MR

Relief from judgment is available only against the decision of an adjudicator, to


be filed before the adjudicator, when the party seeking it has no other adequate
remedy available to him in the ordinary course of law. In the case at bar,
petitioner sought relief from the decision of the DARAB, not that of the
adjudicator, before the DARAB.34 This leaves it unnecessary to pass upon the
other glaring flaws attendant to petitioner’s Petition for Relief from Judgment.
3. And lastly, on the issue of violation of due process

As for petitioner’s plaint of having been deprived of due process, thus:

this Court subscribes to the principles of liberality in the availment of due


process, in the interest of justice, the same should be extended to those who
are vigilant in the protection of one’s rights.

WHEREFORE, the petition is DENIED. The Decision of the Court of Appeals


dated March 21, 2007 is AFFIRMED. Double costs against petitioner. SO
ORDERED

THE TENANT EMANCIPATION LAW (PD 27)

Stages of Land Transfer

1. Issuance of Certificate of Land Title to the farmer-beneficiary; and

2. Issuance of Emancipation Patent

Significance of the Certificate of Land Transfer (CLT)

A CLT is a document that the government issues to a tenant-farmer of an


agricultural land primarily devoted to rice and corn production placed under
the coverage of the government’s Operation Land Transfer program under PD
27. It serves as the tenant farmer’s (grantee of the certificate) proof of inchoate
right over the land covered thereby.

As a preliminary step, therefore, the issuance of a CLT merely evinces


that the grantee thereof is qualified to avail of the statutory mechanism for the
acquisition of ownership of the land tilled by him, as provided under PD 27.
The CLT is not a muniment of title that vests in the tenant-farmer absolute
ownership in the landholding.

Significance of an Emancipation Patent (EP)

Obtaining an EP presupposes that the grantee or beneficiary has,


following the issuance of a CLT, already complied with all the preconditions
required under PD27, and that the landowner has been fully compensated for
his property. And upon the issuance of title, the grantee becomes the owner of
the landholding and he thereby ceases to be a mere tenant or lessee. His right
of ownership, once vested, becomes fixed and established and is no longer open
to doubt or controversy. The grantee becomes the owner of the subject property
upon the issuance of the emancipation patents and, as such, enjoys the right
to posses the same – a right that is an attribute of absolute ownership.
Jurisdiction over Cancellation of EPs

All cases involving the cancellation of registered EPs are within the
exclusive and original jurisdiction of the Secretary of DAR.

The Tenant-Farmer Will Pay the Land Bank

The farmer-beneficiary or his heirs will pay the Land Bank the total costs
of the land plus interest at the rate of 6% per annum for 20 years in 20 equal
annual amortizations. The EP will be issued to the farmer-beneficiary after full
payment of the amortizations. Section 6 of EO 228 provides that:

“SECTION 6. The total costs of the land including interest


at the rate of six percent (6%) per annum with a two percent
(2%) interest rebate for amortizations paid on time, shall be paid
by the farmer-beneficiary or his heirs to the Land Bank over a
period up to twenty (20) years in twenty (20) equal annual
amortizations. Lands already valued and financed by the Land
Bank are likewise extended a 20-year period of payment of
twenty (20) equal annual amortizations. However, the farmer-
beneficiary if he so elects, may pay in full before the twentieth
year or may request the Land Bank to structure a repayment
period of less than twenty (20) years if the amount to be
financed and the corresponding annual obligations are well
within the farmer's capacity to meet. Ownership of lands
acquired by the farmer-beneficiary may be transferred after full
payment of amortizations.
i

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