CHAVEZ vs.

PEA and AMARI

GR. NO. 133250 JULY 9, 2002

Facts: PEA is a government owned and controlled corporation which was tasked to reclaim land including foreshore and submerged areas and to develop, improve, acquire,lease and sell any and all kinds of lands owned , managed, and controlled by the government. PEA entered into a Joint Venture Agreement (JVA) with AMARI, a private corporation, to develop some of its reclaimed lands. The said JVA became subject to investigation for the reason that questions on its legality occurred. Then renegotiations between PEA and AMARI happen which had produced the Amended JVA. Petitioner Chavez filed a petition against PEA and AMARI assailing the transfer of certain lands, reclaimed and still to be reclaimed by PEA to AMARI as stated in the Amended JVA. The petitioner further prays that on constitutional and statutory grounds, the renegotiated contract be declared null and void. Issue: Whether or not stipulations in the Amended Joint Venture Agreement for the transfer to AMARI of certain lands, reclaimed or to be reclaimed, violate the constitution. Held: The court declares the Amended Joint Venture Agreement null and void ab initio. The court orders PEA and AMARI to enjoin from implementing the Amended JVA. Ratio: The Regalian doctrine is deeply implanted in our legal system. Foreshore and submerged areas form part of the public domain and are inalienable. Lands reclaimed from foreshore and submerged areas are also inalienable, unless converted pursuant to law into alienable or disposable lands of public domain. Historically, lands reclaimed by the government are sui generis, not available for sale to private parties unlike other alienable public lands. Reclaimed lands retain their inherent potential as areas for public use or public service. Alienable lands of public domain are to be distributed equitably among our ever growing population. To ensure such equitable distribution, the 1973 and 1987 Constitution have barred private corporation from acquiring any kind of alienable land of public domain. The Amended Joint Venture Agreement clearly violates Section 2, Article XII of the 1987 Constitution which prohibits the alienation of natural resources other than agricultural lands of the public domain and Section 3, Article XII of the 1987 Constitution which prohibits private corporations from acquiring any kind of alienable land of public domain.