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G.R. No. 79777 (Manaays (w/ 9-hectare riceland) and Hermano (5-hectare riceland) with tenants
declared full owners)
o Constitutionality of PD 27, EO 228, EO 229, RA 6657
1 Art. XIII, 4, CONST.: The State shall, by law, undertake an agrarian reform program founded on the right of farmers and regular
farmworkers, who are landless, to own directly or collectively the lands they till or, in the case of other farmworkers, to receive a just
share of the fruits thereof. To this end, the State shall encourage and undertake the just distribution of all agricultural lands, subject to
such priorities and reasonable retention limits as the Congress may prescribe, taking into account ecological, developmental, or equity
considerations, and subject to the payment of just compensation. In determining retention limits, the State shall respect the right of
small landowners. The State shall further provide incentives for voluntary land-sharing.
Corys usurpation of legislative power, failed to provide retention limits of small landowners2
Just compensation may only be made by a court of justice, not the President
Their property rights are deprived due to rentals as advance payment
Due process not effected; their retention rights violated
SOLICITOR GENERAL
Determination of just compensation is initial or preliminary
Such does not foreclose judicial intervention
No valuation of property has been made
Petitioners not proper parties because the lands they own are not beyond the 7-hectare
retention limit
Petitioners Reply
PD 27 does not provide retention limit on tenanted lands
Determination of just compensation is final ascertainment
RA 6657 repealed PD 27, EO 228 and 229
2 Id.
ISSUES + RATIO
Issue (Procedural)
o
COURT: Petitioners will sustain direct injury due to the subject laws thus, they have standing.
Issues (Substantive)
o
Constitutionality of the subject laws (did they fail to include retention limits, as per Art. XIII, 4?)
COURT: RA 6657, Sec. 6 actually provides for retention limits.3 Hence, PD 27, EO 228 and
229 need not indicate said limits and are therefore not unconstitutional.
Separation of Powers
COURT: No violation of Separation of Powers
PD 27, enacted by Marcos, was already sustained in Gonzales v. Estrella.
Proc 131, EO 228 and 229, enacted by Cory, were authorized by the Transitory
Provisions of the 1987 CONST. and were made before the Congress formally
convened.
3 Republic Act No, 6657, Section 6. Retention Limits. Except as otherwise provided in this Act, no person may own or retain,
directly or indirectly, any public or private agricultural land, the size of which shall vary according to factors governing a viable familysized farm, such as commodity produced, terrain, infrastructure, and soil fertility as determined by the Presidential Agrarian Reform
Council (PARC) created hereunder, but in no case shall retention by the landowner exceed five (5) hectares. Three (3) hectares may be
awarded to each child of the landowner, subject to the following qualifications: (1) that he is at least fifteen (15) years of age; and (2)
that he is actually tilling the land or directly managing the farm; Provided, That landowners whose lands have been covered by
Presidential Decree No. 27 shall be allowed to keep the area originally retained by them thereunder, further, That original homestead
grantees or direct compulsory heirs who still own the original homestead at the time of the approval of this Act shall retain the same
areas as long as they continue to cultivate said homestead.
Just Compensation
Full and fair equivalent of the property taken from its owner by expropriator
Owners loss, not takers gain
Requisites
o Expropriator enters a private property
o Entry is more than momentary
o Under legal authority
o Devoted to public use
o Utilization deprives owner of beneficial enjoyment
Determination of compensation is not final. Calculation of compensation is not
under the sole discretion of government
o Owner may reject government offer, but summary proceedings to determine
compensation shall ensue.
CARP is a revolutionary kind of expropriation.
o Involved here are not mere millions, but a tremendous amount of money for
the benefit of the entire nation.
o To deliver such amounts all at once, in full equivalence to the value of
properties taken, is impractical.
o Thus, payment in other forms like bonds is applicable. RA 6657 does
not contemplate any transfer of ownership until full compensation. (This
refers to Sec. 18, RA 6656).
Dispositive
R.A. No. 6657, P.D. No. 27, Proc. No. 131, and E.O. Nos. 228 and 229 are sustained against all the
constitutional objections raised in the herein petitions.
Title to all expropriated properties shall be transferred to the State only upon full payment of compensation
to their respective owners.
4 EMINENT DOMAIN is an inherent power of the State that enables it to forciblyacquire private lands intended for public use upon
payment of just compensation to the owner. Obviously, there is no need to expropriate where the owner is willing to sell under terms
also acceptable to the purchaser, in which case an ordinary deed of sale may be agreed upon by the parties. It is only where the owner
is unwilling to sell, or cannot accept the price or other conditions offered by the vendee, that the power of eminent domain will
come into play to assert the paramount authority of the State over the interests of the property owner. Private rights must then yield to
the irresistible demands of the public interest on the time-honored justification, as in the case of the police power, that the welfare of
the people is the supreme law.
All rights previously acquired by the tenant- farmers under P.D. No. 27 are retained and recognized.
Landowners who were unable to exercise their rights of retention under P.D. No. 27 shall enjoy the
retention rights granted by R.A. No. 6657 under the conditions therein prescribed.
Subject to the above-mentioned rulings all the petitions are DISMISSED, without pronouncement as to
costs.
Fernan, C.J., Narvasa, Melencio-Herrera, Gutierrez, Jr., Paras, Feliciano, Gancayco, Padilla, Bidin, Sarmiento,
Cortes, Grio-Aquino, Medialdea, and Regalado, JJ., concur.
REYES VS. NATIONAL HOUSING AUTHORITY, 395 SCRA 494, 20 JAN 2003
Petitioners: MARINA Z. REYES; ALFREDO A. FRANCISCO; ANGELITA Z. GARCIA; ALFREDO Z.
FRANCISCO, JR; ARMANDO Z. FRANCISCO; ALMA C. FRANCISCO; EUGENIA Z. LUNA; CLARITA Z.
ZABALLERO, LEONARDO Z. ZABALLERO, JR, and TEODORO Z. ZABALLERO, in substitution of
LEONARDO M. ZABALLERO; AUGUSTO M. ZABALLERO; FRINE A. ZABALLERO; ELENA FRONDA
The expropriation of private land for slum clearance and urban development is for a public purpose
even if the developed area is later sold to private homeowners, commercials firms, entertainment and
service companies, and other private concerns.
The expropriation of private property for the purpose of socialized housing for the marginalized sector
is in furtherance of social justice.
The Constitution itself allows the State to undertake, for the common good and in cooperation with the
private sector, a continuing program of urban land reform and housing which will make at affordable
cost decent housing and basic services to underprivileged and homeless citizens in urban centers and
resettlement areas.
With respect to the amount of the just compensation still due and demandable from respondent (NHA),
the lower courts erred in not awarding interest computed from the time the property is actually taken to
the time when compensation is actually paid or deposited in court.
RULING: NHA IS ORDERED TO PAY PETITIONERS P1,218,574.35 with legal interest at 12% per annum
computed from the taking of the expropriated properties in 1997 until the amount due shall have been fully paid
Respondents: Antionio N., Francisco N., Thelma N., Eusebio N., Rodolfo N., all surnamed Aguilar
FACTS:
RECLASSIFICATION OF LOTS
Resolution No. 125 of the Board of Housing and Urban Development Coordinating Council
o Classified these lots as an Area for Priority Development under Proclamation nos. 1967 and
2284 of then President Marcos
Tenants offered to purchase the land from respondents
But they refused to sell
Tenants under Kapitbisig (association of tenants and occupants of the subject land) adopted Resolution
No. 516 of the Sangguniang Panlungsod
o enabling Mayor Abalos of Mandaluyong to initiate action for expropriation on Nov. 1996.
MAYOR OF MANDALUYONG TRIES TO PURCHASE THE LOTS
January 10, 1996, Abalos sent a letter to purchase the lots 3000Php per square meter
Respondents Reply:
o denied having received a copy of the letter
o countered that the expropriation is arbitrary and capricious and not for public purpose.
o Zonal value set by Bureau of Internal Revenue is at 7000 Php per square meter.
CITY OF MANDALUYONG FILES FOR EXPROPRIATION
August 4, 1997, a complain for expropriation was filed by the City of Mandaluyong against the
respondents
The three lots in the complaint were registered under the names of Aguilars and residential houses
were built and being leased until the complaint
RTC RULING
Dismissed complaint
o Small property owners land is exempt from expropriation under Republic Act No. 72795.
CITY OF MANDALUYONG APPEALS WITH SC
Claims that the size of lots does not exempt the same from expropriation of lots declared to be within the
Area for Priority Development (APD) No. 5 of Mandaluyong (Proclamation No. 1967)
ISSUE: W/N THE LAND OF THE AGUILARS CAN BE EXPROPRIATED FOR SOCIALIZED HOUSING
5 The acquisition of lands for socialized housing is governed by several provisions in the law. Section 9 of R.A. 7279 provides:Sec. 9. Priorities in the
Acquisition of Land.Lands for socialized housing shall be acquired in the following order:
(a) Those owned by the Government or any of its subdivisions, instrumentalities, or agencies, including government-owned or controlled
corporations and their subsidiaries;
(b) Alienable lands of the public domain;
(c) Unregistered or abandoned and idle lands;
(d) Those within the declared Areas for Priority Development, Zonal Improvement Program sites, and Slum Improvement and Resettlement
Program sites which have not yet been acquired;
(e) Bagong Lipunan Improvement of Sites and Services or BLISS Sites which have not yet been acquired;
(f) Privately-owned lands.
6 Section 10. Modes of Land Acquisition.The modes of acquiring lands for purposes of this Act shall include, among others, community mortgage, land
swapping, land assembly or consolidation, land banking, donation to the Government, joint-venture agreement, negotiated purchase, and
expropriation: Provided, however, That expropriation shall be resorted to only when other modes of acquisition have been exhausted: Provided,
further, That where expropriation is resorted to, parcels of land owned by small property owners shall be exempted for purposes of this
Act: Provided, finally, That abandoned property, as herein defined, shall be reverted and escheated to the State in a proceeding analogous to the
procedure laid down in Rule 91 of the Rules of Court.
2 provisions the limit the exercise of eminent domain [Article 3, Section 1 & 9, 1987 Constitution.]
(1) no person shall be deprived of life, liberty, or property without due process of law, nor shall any person be
denied the equal protection of the laws
(2) private property shall not be taken for public use without just compensation.
There was no showing at all why petitioners property was singled out for expropriation by the city
ordinance or what necessity impelled the particular choice or selection
Ordinance No. 1843 stated no reason for the choice of petitioners property as the site of a socialized
housing project.
Piecemeal or random condemnation of private lands to accommodate few tenants or squatters is
certainly not the condemnation for public use contemplated by the Constitution.
Private lands rank last in the order of priority for purposes of socialized housing
RA 7279 is the law that governs the local expropriation of property for purposes of urban land reform
and housing.
SEC 9. Priorities in the Acquisition of Land. Lands for socialized housing shall be acquired in the following order: x x x
(f) Privately-owned lands.
SEC. 10. Modes of Land Acquisition. The modes of acquiring lands for purposes of this Act shall include, among others,
community mortgage, land swapping, land assembly or consolidation, land banking, donation to the Government, joint venture
agreement, negotiated purchase, and expropriation: Provided, however, That expropriation shall be resorted to only when
other modes of acquisition have been exhausted: Provided further, That where expropriation is resorted to, parcels of land
owned by small property owners shall be exempted for purposes of this Act: xxx
Limitations on on the exercise of the power of eminent domain by local government units:
1) the order of priority in acquiring land for socialized housing and
2) the resort to expropriation proceedings as a means to acquiring it
Expropriation proceedings may be resorted to only after the other modes of acquisition are exhausted.
Compliance with these conditions is mandatory
These are the only safeguards of oftentimes helpless owners of private property against what may be a
tyrannical violation of due process when their property is forcibly taken
The City of Cebu did not comply with these safeguards
There was no evidence of a valid and definite offer to buy petitioners property as required by Section
19 of RA 7160.
In 1998, petitioners had already obtained a favorable judgment of eviction against the illegal occupants
of their property.
The judgment in this ejectment case had, in fact, already attained finality, with a writ of execution and
an order of demolition.
But Mayor Garcia requested the trial court to suspend the demolition on the pretext that the City was
still searching for a relocation site for the squatters.
However, instead of looking for a relocation site during the suspension period, the city council suddenly
enacted Ordinance No. 1843 for the expropriation of petitioners lot.
It was trickery and bad faith, pure and simple. The unconscionable manner in which the questioned
ordinance was passed clearly indicated that respondent City transgressed the Constitution, RA 7160
and RA 7279.
Ordinance No. 1843 failed to comply with the substantive requirements for a valid ordinance. A clear
case of constitutional infirmity having been thus established, this Court is constrained to nullify the
subject ordinance because
For an ordinance to be valid:
(1) must not contravene the Constitution or any statute
(2) must not be unfair or oppressive
(3) must not be partial or discriminatory
(4) must not prohibit but may regulate trade
(5) must be general and consistent with public policy, and
(6) must not be unreasonable
First, as earlier discussed, the questioned ordinance is repugnant to the pertinent provisions of the
Constitution, RA 7279 and RA 7160;
Second, the precipitate manner in which it was enacted was plain oppression masquerading as a propoor ordinance;
Third, the fact that petitioners small property was singled out for expropriation for the purpose of
awarding it to no more than a few squatters indicated manifest partiality against petitioners, and
fourth, the ordinance failed to show that there was a reasonable relation between the end sought and
the means adopted. While the objective of the City of Cebu was to provide adequate housing to slum
dwellers, the means it employed in pursuit of such objective fell short of what was legal, sensible and
called for by the circumstances.
RULING: the petition is hereby GRANTED. The July 1, 2002 decision of Branch 23 of the Regional Trial Court
of Cebu City is REVERSED and SET ASIDE.