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DECISION
MARTINEZ, J.:
The strikers protested the March 29, 1996 Decisioni[1] of the Office of
the President (OP), issued through then Executive Secretary Ruben D.
Torres in OP Case No. 96-C-6424, which approved the conversion of a
one hundred forty-four (144)-hectare land from agricultural to agro-
industrial/institutional area. This led the Office of the President, through
then Deputy Executive Secretary Renato C. Corona, to issue the so-called
Win-Win Resolutionii[2] on November 7, 1997, substantially modifying
its earlier Decision after it had already become final and executory.
The said Resolution modified the approval of the land conversion to agro-
industrial area only to the extent of forty-four (44) hectares, and ordered
the remaining one hundred (100) hectares to be distributed to qualified
farmer-beneficiaries.
But, did the Win-Win Resolution culminate in victory for all the
contending parties?
The above-named petitioners cried foul. They have come to this Court
urging us to annul and set aside the Win-Win Resolution and to enjoin
respondent Secretary Ernesto D. Garilao of the Department of Agrarian
Reform from implementing the said Resolution.
Thus, the crucial issue to be resolved in this case is: What is the legal
effect of the Win-Win Resolution issued by the Office of the President on
its earlier Decision involving the same subject matter, which had already
become final and executory?
5. Despite the DARAB order of March 31, 1992, the DAR Regional
Director issued a memorandum, dated May 21, 1992, directing the Land
Bank to open a trust account for P2.38 million in the name of NQSRMDC
and to conduct summary proceedings to determine the just
compensation of the subject property. NQSRMDC objected to these
moves and filed on June 9, 1992 an Omnibus Motion to enforce the
DARAB order of March 31, 1992 and to nullify the summary proceedings
undertaken by the DAR Regional Director and Land Bank on the
valuation of the subject property.
7. The Land Bank complied with the DARAB order and cancelled the
trust account it opened in the name of petitioner NQSRMDC.vii[7]
5. The procedures on how the area was identified and reclassified for
agro-industrial project has no reference to Memo Circular No. 54, Series
of 1993, E.O. No. 72, Series of 1993, and E.O. No. 124, Series of 1993.
10. Thus, the DAR Secretary ordered the DAR Regional Director to
proceed with the compulsory acquisition and distribution of the
property.x[10]
16. In resolving the appeal, the Office of the President, through then
Executive Secretary Ruben D. Torres, issued a Decision in OP Case No.
96-C-6424, dated March 29, 1996, reversing the DAR Secretarys
decision, the pertinent portions of which read:
After a careful evaluation of the petition vis--vis the grounds upon which
the denial thereof by Secretary Garilao was based, we find that the
instant application for conversion by the Municipality of Sumilao,
Bukidnon is impressed with merit. To be sure, converting the land in
question from agricultural to agro-industrial would open great
opportunities for employment and bring about real development in the
area towards a sustained economic growth of the municipality. On the
other hand, distributing the land to would-be beneficiaries (who are not
even tenants, as there are none) does not guarantee such benefits.
On the issue that the land has long been covered by a Notice of
Compulsory Acquisition (NCA) and that the existing policy on withdrawal
or lifting on areas covered by NCA is not applicable, suffice it to state
that the said NCA was declared null and void by the Department of
Agrarian Reform Adjudication Board (DARAB) as early as March 1, 1992.
Deciding in favor of NQSRMDC, the DARAB correctly pointed out that
under Section 8 of R.A. No. 6657, the subject property could not validly
be the subject of compulsory acquisition until after the expiration of the
lease contract with Del Monte Philippines, a Multi-National Company, or
until April 1994, and ordered the DAR Regional Office and the Land
Bank of the Philippines, both in Butuan City, to `desist from pursuing
any activity or activities covering petitioners land.
On this score, we take special notice of the fact that the Quisumbing
family has already contributed substantially to the land reform program
of the government, as follows: 300 hectares of rice land in Nueva Ecija in
the 70s and another 400 hectares in the nearby Municipality of
Impasugong, Bukidnon, ten (10) years ago, for which they have not
received just compensation up to this time.
17.On May 20, 1996, DAR filed a motion for reconsideration of the OP
decision.
When NQSRMDC was about to transfer the title over the 4-hectare
donated to DECS, it discovered that the title over the subject property
was no longer in its name. It soon found out that during the pendency of
both the Petition for Certiorari, Prohibition, with Preliminary Injunction it
filed against DAR in the Court of Appeals and the appeal to the President
filed by Governor Carlos O. Fortich, the DAR, without giving just
compensation, caused the cancellation of NQSRMDCs title on August 11,
1995 and had it transferred in the name of the Republic of the
Philippines under TCT No. T-50264xix[19] of the Registry of Deeds of
Bukidnon. Thereafter, on September 25, 1995, DAR caused the issuance
of Certificates of Land Ownership Award (CLOA) No. 00240227 and had
it registered in the name of 137 farmer-beneficiaries under TCT No. AT-
3536xx[20] of the Registry of Deeds of Bukidnon.
19. Thus, on April 10, 1997, NQSRMDC filed a complaintxxi[21] with the
Regional Trial Court (RTC) of Malaybalay, Bukidnon (Branch 9), docketed
as Civil Case No. 2687-97, for annulment and cancellation of title,
damages and injunction against DAR and 141 others. The RTC then
issued a Temporary Restraining Order on April 30, 1997xxii[22] and a
Writ of Preliminary Injunction on May 19, 1997,xxiii[23] restraining the
DAR and 141 others from entering, occupying and/or wresting from
NQSRMDC the possession of the subject land.
20. Meanwhile, on June 23, 1997, an Orderxxiv[24] was issued by then
Executive Secretary Ruben D. Torres denying DARs motion for
reconsideration for having been filed beyond the reglementary period of
fifteen (15) days. The said order further declared that the March 29, 1996
OP decision had already become final and executory.
21. The DAR filed on July 11, 1997 a second motion for reconsideration
of the June 23, 1997 Order of the President.
22. On August 12, 1997, the said writ of preliminary injunction issued
by the RTC was challenged by some alleged farmers before the Court of
Appeals through a petition for certiorari and prohibition, docketed as CA-
G.R. SP No. 44905, praying for the lifting of the injunction and for the
issuance of a writ of prohibition from further trying the RTC case.
24. President Fidel V. Ramos then held a dialogue with the strikers and
promised to resolve their grievance within the framework of the law. He
created an eight (8)-man Fact Finding Task Force (FFTF) chaired by
Agriculture Secretary Salvador Escudero to look into the controversy and
recommend possible solutions to the problem.xxvi[26]
SO ORDERED.xxvii[27]
The respondents, through the Solicitor General, opposed the petition and
prayed that it be dismissed outright on the following grounds:
(1) The proper remedy of petitioners should have been to file a petition for
review directly with the Court of Appeals in accordance with Rule 43 of
the Revised Rules of Court;
(2) The petitioners failed to file a motion for reconsideration of the
assailed Win-Win Resolution before filing the present petition; and
These are the preliminary issues which must first be resolved, including
the incident on the motion for intervention filed by the alleged farmer-
beneficiaries.
It is true that under Rule 43, appeals from awards, judgments, final
orders or resolutions of any quasi-judicial agency exercising quasi-
judicial functions,xxxviii[38] including the Office of the
President,xxxix[39] may be taken to the Court of Appeals by filing a
verified petition for reviewxl[40] within fifteen (15) days from notice of the
said judgment, final order or resolution,xli[41] whether the appeal
involves questions of fact, of law, or mixed questions of fact and
law.xlii[42]
xxx xxx x x x.
SEC. 4. Where petition filed.- The petition may be filed not later than
sixty (60) days from notice of the judgment, order or resolution sought to
be assailed in the Supreme Court or, if it relates to the acts or omissions
of a lower court or of a corporation, board, officer or person, in the
Regional Trial Court exercising jurisdiction over the territorial area as
defined by the Supreme Court. It may also be filed in the Court of
Appeals whether or not the same is in aid of its appellate jurisdiction, or
in the Sandiganbayan if it is in aid of its jurisdiction. If it involves the
acts or omissions of a quasi-judicial agency, and unless otherwise
provided by law or these Rules, the petition shall be filed in and
cognizable only by the Court of Appeals. (4a)
But the Supreme Court has the full discretionary power to take
cognizance of the petition filed directly to it if compelling reasons, or the
nature and importance of the issues raised, warrant. This has been the
judicial policy to be observed and which has been reiterated in
subsequent cases, namely:l[50] Uy vs. Contreras, et. al.,li[51] Torres vs.
Arranz,lii[52] Bercero vs. De Guzman,liii[53] and Advincula vs. Legaspi, et.
al.liv[54] As we have further stated in Cuaresma:
That the Court has the power to set aside its own rules in the higher
interests of justice is well-entrenched in our jurisprudence. We reiterate
what we said in Piczon vs. Court of Appeals:lvi[56]
With respect to the third issue, the respondents claim that the filing by
the petitioners of: (a) a petition for certiorari, prohibition with preliminary
injunction (CA-G.R. SP No. 37614) with the Court of Appeals; (b) a
complaint for annulment and cancellation of title, damages and
injunction against DAR and 141 others (Civil Case No. 2687-97) with the
Regional Trial Court of Malaybalay, Bukidnon; and (c) the present
petition, constitute forum shopping.
We disagree.
The test for determining whether a party violated the rule against forum
shopping has been laid down in the 1986 case of Buan vs. Lopez (145
SCRA 34), x x x and that is, forum shopping exists where the
elements of litis pendentia are present or where a final judgment in
one case will amount to res judicata in the other, as follows:
There thus exists between the action before this Court and RTC Case No.
86-36563 identity of parties, or at least such parties as represent the
same interests in both actions, as well as identity of rights asserted
and relief prayed for, the relief being founded on the same facts, and
the identity on the two preceding particulars is such that any judgment
rendered in the other action, will, regardless of which party is
successful, amount to res adjudicata in the action under
consideration: all the requisites, in fine, of auter action pendant.'lviii[58]
It is clear from the above-quoted rule that the petitioners are not guilty of
forum shopping. The test for determining whether a party has violated
the rule against forum shopping is where a final judgment in one case
will amount to res adjudicata in the action under consideration. A
cursory examination of the cases filed by the petitioners does not show
that the said cases are similar with each other. The petition for certiorari
in the Court of Appeals sought the nullification of the DAR Secretarys
order to proceed with the compulsory acquisition and distribution of the
subject property. On the other hand, the civil case in RTC of Malaybalay,
Bukidnon for the annulment and cancellation of title issued in the name
of the Republic of the Philippines, with damages, was based on the
following grounds: (1) the DAR, in applying for cancellation of petitioner
NQSRMDCs title, used documents which were earlier declared null and
void by the DARAB; (2) the cancellation of NQSRMDCs title was made
without payment of just compensation; and (3) without notice to
NQSRMDC for the surrender of its title. The present petition is entirely
different from the said two cases as it seeks the nullification of the
assailed Win-Win Resolution of the Office of the President dated
November 7, 1997, which resolution was issued long after the previous
two cases were instituted.
The fourth and final preliminary issue to be resolved is the motion for
intervention filed by alleged farmer-beneficiaries, which we have to deny
for lack of merit. In their motion, movants contend that they are the
farmer-beneficiaries of the land in question, hence, are real parties in
interest. To prove this, they attached as Annex I in their motion a Master
List of Farmer-Beneficiaries. Apparently, the alleged master list was
made pursuant to the directive in the dispositive portion of the assailed
Win-Win Resolution which directs the DAR to carefully and meticulously
determine who among the claimants are qualified farmer-beneficiaries.
However, a perusal of the said document reveals that movants are those
purportedly Found Qualified and Recommended for Approval. In other
words, movants are merely recommendee farmer-beneficiaries.
Now to the main issue of whether the final and executory Decision dated
March 29,1996 can still be substantially modified by the Win-Win
Resolution.
The rules and regulations governing appeals to the Office of the President
of the Philippines are embodied in Administrative Order No. 18. Section 7
thereof provides:
It is further provided for in Section 9 that The Rules of Court shall apply
in a suppletory character whenever practicable.
When the Office of the President issued the Order dated June 23,1997
declaring the Decision of March 29, 1996 final and executory, as no one
has seasonably filed a motion for reconsideration thereto, the said Office
had lost its jurisdiction to re-open the case, more so modify its Decision.
Having lost its jurisdiction, the Office of the President has no more
authority to entertain the second motion for reconsideration filed by
respondent DAR Secretary, which second motion became the basis of the
assailed Win-Win Resolution. Section 7 of Administrative Order No. 18
and Section 4, Rule 43 of the Revised Rules of Court mandate that only
one (1) motion for reconsideration is allowed to be taken from the
Decision of March 29, 1996. And even if a second motion for
reconsideration was permitted to be filed in exceptionally meritorious
cases, as provided in the second paragraph of Section 7 of AO 18, still
the said motion should not have been entertained considering that the
first motion for reconsideration was not seasonably filed, thereby
allowing the Decision of March 29, 1996 to lapse into finality. Thus, the
act of the Office of the President in re-opening the case and substantially
modifying its March 29,1996 Decision which had already become final
and executory, was in gross disregard of the rules and basic legal precept
that accord finality to administrative determinations.
Since the decisions of both the Civil Service Commission and the Office of
the President had long become final and executory, the same can no
longer be reviewed by the courts. It is well-established in our
jurisprudence that the decisions and orders of administrative agencies,
rendered pursuant to their quasi-judicial authority, have upon their
finality, the force and binding effect of a final judgment within the
purview of the doctrine of res judicata [Brillantes v. Castro, 99 Phil. 497
(1956), Ipekdijna Merchandizing Co., Inc. v. Court of Tax Appeals, G.R.
No. L-15430, September 30, 1963, 9 SCRA 72.] The rule of res judicata
which forbids the reopening of a matter once judicially determined by
competent authority applies as well to the judicial and quasi-judicial acts
of public, executive or administrative officers and boards acting within
their jurisdiction as to the judgments of courts having general judicial
powers [Brillantes v. Castro, supra at 503].
No pronouncement as to costs.
SO ORDERED.
Fortich vs. Corona
When NQSRMDC was about to transfer the title over the 4-hectare
donated to DECS, it discovered that the title over the subject property
was no longer in its name. It soon found out that during the pendency of
both the Petition for Certiorari, Prohibition, with Preliminary Injunction it
filed against DAR in the Court of Appeals and the appeal to the President
filed by Governor Carlos O. Fortich, the DAR, without giving just
compensation, caused the cancellation of NQSRMDCs title on August 11,
1995 and had it transferred in the name of the Republic of the
Philippines under TCT No. T-50264 of the Registry of Deeds of Bukidnon.
Thereafter, on September 25, 1995, DAR caused the issuance of
Certificates of Land Ownership Award (CLOA) No. 00240227 and had it
registered in the name of 137 farmer-beneficiaries under TCT No. AT-
3536 of the Registry of Deeds of Bukidnon.
Issue:
Held:
An error of judgment is one which the court may commit in the exercise
of its jurisdiction, and which error is reviewable only by an appeal. On the
other hand, an error of jurisdiction is one where the act complained of
was issued by the court, officer or a quasi-judicial body without or in
excess of jurisdiction, or with grave abuse of discretion which is
tantamount to lack or in excess of jurisdiction. This error is correctable
only by the extraordinary writ of certiorari.
It is true that under Rule 43, appeals from awards, judgments, final
orders or resolutions of any quasi-judicial agency exercising quasi-
judicial functions, including the Office of the President, may be taken
to the Court of Appeals by filing a verified petition for review within
fifteen (15) days from notice of the said judgment, final order or
resolution, whether the appeal involves questions of fact, of law, or mixed
questions of fact and law.
SEC. 4. Where petition filed.- The petition may be filed not later than
sixty (60) days from notice of the judgment, order or resolution sought to
be assailed in the Supreme Court or, if it relates to the acts or omissions
of a lower court or of a corporation, board, officer or person, in the
Regional Trial Court exercising jurisdiction over the territorial area as
defined by the Supreme Court. It may also be filed in the Court of
Appeals whether or not the same is in aid of its appellate jurisdiction, or
in the Sandiganbayan if it is in aid of its jurisdiction. If it involves the
acts or omissions of a quasi-judicial agency, and unless otherwise
provided by law or these Rules, the petition shall be filed in and
cognizable only by the Court of Appeals.
But the Supreme Court has the full discretionary power to take
cognizance of the petition filed directly to it if compelling reasons, or the
nature and importance of the issues rose, warrant. This has been the
judicial policy to be observed.
It is further provided for in Section 9 that The Rules of Court shall apply
in a suppletory character whenever practicable.
When the Office of the President issued the Order dated June 23,1997
declaring the Decision of March 29, 1996 final and executory, as no one
has seasonably filed a motion for reconsideration thereto, the said Office
had lost its jurisdiction to re-open the case, more so modify its Decision.
Having lost its jurisdiction, the Office of the President has no more
authority to entertain the second motion for reconsideration filed by
respondent DAR Secretary, which second motion became the basis of the
assailed Win-Win Resolution. Section 7 of Administrative Order No. 18
and Section 4, Rule 43 of the Revised Rules of Court mandate that
only one (1) motion for reconsideration is allowed to be taken from the
Decision of March 29, 1996. And even if a second motion for
reconsideration was permitted to be filed in exceptionally meritorious
cases, as provided in the second paragraph of Section 7 of AO 18, still
the said motion should not have been entertained considering that the
first motion for reconsideration was not seasonably filed, thereby
allowing the Decision of March 29, 1996 to lapse into finality. Thus, the
act of the Office of the President in re-opening the case and substantially
modifying its March 29,1996 Decision which had already become final
and executory, was in gross disregard of the rules and basic legal precept
that accord finality to administrative determinations.
In San Luis, et al. vs. Court of Appeals, et al. we held:
Since the decisions of both the Civil Service Commission and the Office of
the President had long become final and executory, the same can no
longer be reviewed by the courts. It is well-established in our
jurisprudence that the decisions and orders of administrative agencies,
rendered pursuant to their quasi-judicial authority, have upon their
finality, the force and binding effect of a final judgment within the
purview of the doctrine of res judicata The rule of res judicata which
forbids the reopening of a matter once judicially determined by
competent authority applies as well to the judicial and quasi-judicial acts
of public, executive or administrative officers and boards acting within
their jurisdiction as to the judgments of courts having general judicial
powers.
The test for determining whether a party violated the rule against forum
shopping has been laid down in the 1986 case of Buan vs. Lopez and
that is, forum shopping exists where the elements of litis
pendentia are present or where a final judgment in one case will
amount to res judicata in the other, as follows:
There thus exists between the action before this Court and RTC Case No.
86-36563 identity of parties, or at least such parties as represent the
same interests in both actions, as well as identity of rights asserted
and relief prayed for, the relief being founded on the same facts, and
the identity on the two preceding particulars is such that any judgment
rendered in the other action, will, regardless of which party is
successful, amount to res adjudicata in the action under
consideration: all the requisites, in fine, of auter action pendant.
It is clear from the above-quoted rule that the petitioners are not guilty of
forum shopping. The test for determining whether a party has violated
the rule against forum shopping is where a final judgment in one case
will amount to res adjudicata in the action under consideration. A
cursory examination of the cases filed by the petitioners does not show
that the said cases are similar with each other. The petition for certiorari
in the Court of Appeals sought the nullification of the DAR Secretarys
order to proceed with the compulsory acquisition and distribution of the
subject property. On the other hand, the civil case in RTC of Malaybalay,
Bukidnon for the annulment and cancellation of title issued in the name
of the Republic of the Philippines, with damages, was based on the
following grounds: (1) the DAR, in applying for cancellation of petitioner
NQSRMDCs title, used documents which were earlier declared null and
void by the DARAB; (2) the cancellation of NQSRMDCs title was made
without payment of just compensation; and (3) without notice to
NQSRMDC for the surrender of its title. The present petition is entirely
different from the said two cases as it seeks the nullification of the
assailed Win-Win Resolution of the Office of the President dated
November 7, 1997, which resolution was issued long after the previous
two cases were instituted.