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Employees who have separate The CAMC FTAA grants in surface rights can be
retirement schemes under special
laws and are therefore covered favor of CAMC the right of acquired other than
by their respective retirement possession of the Exploration expropriation. The FTAA
laws Contract Area, the full right provision under attack merely
2. Contractual employees who have no
employer-employee relationship of ingress and egress and the facilitates the implementation
with the agencies they serve right to occupy the same. It of the FTAA given to CAMC
3. Uniformed members of AFP and also bestows CAMC the right and shields it from violating
PNP, BJMP and BFP
not to be prevented from the Anti-Dummy Law.
entry into private lands by
Didipio v Gozun surface owners or occupants There is also no basis for the
(Natural resources) thereof when prospecting, claim that the Mining Law
exploring and exploiting and its implementing rules
minerals therein. and regulations do not
DIDIPIO v GOZUN
provide for just compensation
GR No. 157882
Didipio Earth-Savers' Multi- in expropriating private
March 30, 2006
Purpose Association, Inc., an properties. Section 76 of
organization of farmers and Rep. Act No. 7942 and
FACTS:
indigenous peoples organized Section 107 of DAO 96-40
under Philippine laws, provide for the payment of
This petition for prohibition
representing a community just compensation.
and mandamus under Rule
actually affected by the
65 of the Rules of Court
mining activities of CAMC, as II
assails the constitutionality of
well as other residents of
Republic Act No. 7942
areas affected by the mining WHETHER OR NOT THE
otherwise known as the
activities of CAMC. MINING ACT AND ITS
Philippine Mining Act of 1995,
IMPLEMENTING RULES AND
together with the
ISSUES & RULINGS: REGULATIONS ARE VOID
Implementing Rules and
AND UNCONSTITUTIONAL
Regulations issued pursuant
I FOR SANCTIONING AN
thereto, Department of
UNCONSTITUTIONAL
Environment and Natural
WHETHER OR NOT REPUBLIC ADMINISTRATIVE PROCESS
Resources (DENR)
ACT NO. 7942 AND THE OF DETERMINING JUST
Administrative Order No. 96-
CAMC FTAA ARE VOID COMPENSATION.
40, s. 1996 (DAO 96-40) and
BECAUSE THEY ALLOW THE
of the Financial and Technical
UNJUST AND UNLAWFUL NO.
Assistance Agreement (FTAA)
TAKING OF PROPERTY
entered into on 20 June 1994
WITHOUT PAYMENT OF JUST there is nothing in the
by the Republic of the
COMPENSATION , IN provisions of the assailed law
Philippines and Arimco Mining
VIOLATION OF SECTION 9, and its implementing rules
Corporation (AMC), a
ARTICLE III OF THE and regulations that exclude
corporation established under
CONSTITUTION. the courts from their
the laws of Australia and
jurisdiction to determine just
owned by its nationals.
NO. compensation in
expropriation proceedings
Subsequently, AMC
The provision of the FTAA in involving mining operations.
consolidated with Climax
question lays down the ways
Mining Limited to form a
and means by which the Although Section 105 confers
single company that now
foreign-owned contractor, upon the Panel of Arbitrators
goes under the new name of
disqualified to own land, the authority to decide cases
Climax-Arimco Mining
identifies to the government where surface owners,
Corporation (CAMC), the
the specific surface areas occupants, concessionaires
controlling 99% of
within the FTAA contract area refuse permit holders entry,
stockholders of which are
to be acquired for the mine thus, necessitating
Australian nationals.
infrastructure. The involuntary taking, this does
government then acquires not mean that the
on 20 June 1994, President
ownership of the surface land determination of the just
Ramos executed an FTAA
areas on behalf of the compensation by the Panel of
with AMC over a total land
contractor, through a Arbitrators or the Mines
area of 37,000 hectares
voluntary transaction in order Adjudication Board is final
covering the provinces of
to enable the latter to and conclusive. The
Nueva Vizcaya and
proceed to fully implement determination is only
Quirino. Included in this area
the FTAA. Eminent domain is preliminary unless accepted
is Barangay Dipidio, Kasibu,
not yet called for at this by all parties concerned.
Nueva Vizcaya.
stage since there are still There is nothing wrong with
various avenues by which the grant of primary
jurisdiction by the Panel of INVOLVEMENT IN MINING those of the 1973 variety, the
Arbitrators or the Mines ENTERPRISES, VIOLATES new ones are between
Adjudication Board to PARAGRAPH 4, SECTION 2, foreign corporations acting as
determine in a preliminary ARTICLE XII OF THE contractors on the one hand;
matter the reasonable CONSTITUTION. and on the other, the
compensation due the government as principal or
affected landowners or the use of the word “owner” of the works. In the
occupants. The original and “involving” signifies the new service contracts, the
exclusive jurisdiction of the possibility of the inclusion of foreign contractors provide
courts to decide other forms of assistance or capital, technology and
determination of just activities having to do with, technical know-how, and
compensation remains intact otherwise related to or managerial expertise in the
despite the preliminary compatible with financial or creation and operation of
determination made by the technical assistance. large-scale mining/extractive
administrative agency. enterprises; and the
Thus, we come to the government, through its
III inevitable conclusion that agencies (DENR, MGB),
there was a conscious and actively exercises control and
WHETHER OR NOT THE deliberate decision to avoid supervision over the entire
STATE, THROUGH REPUBLIC the use of restrictive wording operation.
ACT NO. 7942 AND THE that bespeaks an intent not
CAMC FTAA, ABDICATED ITS to use the expression OBITER DICTA: ! justiciable
PRIMARY RESPONSIBILITY “agreements x x x involving controversy: definite and
TO THE FULL CONTROL AND either technical or financial concrete dispute touching on
SUPERVISION OVER assistance” in an exclusionary the legal relations of parties
NATURAL RESOURCES. and limiting manner. having adverse legal interests
which may be resolved by a
RA 7942 provides for the V court of law through the
state's control and application of a law. ! to
supervision over mining WHETHER OR NOT THE 1987 exercise the power of judicial
operations. The following CONSTITUTION PROHIBITS review, the following must be
provisions thereof establish SERVICE CONTRACTS extant (1) there must be an
the mechanism of inspection actual case calling for the
and visitorial rights over NO. The mere fact that the exercise of judicial power; -
mining operations and term service contracts found involves a conflict of legal
institute reportorial in the 1973 Constitution was rights, an assertion of
requirements. not carried over to the opposite legal claims,
present constitution, sans susceptible of judicial
The setup under RA 7942 and any categorical statement resolution as distinguished
DAO 96-40 hardly relegates banning service contracts in from a hypothetical or
the State to the role of a mining activities, does not abstract difference or
“passive regulator” mean that service contracts dispute.
dependent on submitted as understood in the 1973
plans and reports. On the Constitution was eradicated In the instant case, there
contrary, the government in the 1987 Constitution. exists a live controversy
agencies concerned are involving a clash of legal
empowered to approve or The 1987 Constitution allows rights as Rep. Act No. 7942
disapprove -- hence, to the continued use of service has been enacted, DAO 96-
influence, direct and change - contracts with foreign 40 has been approved and an
- the various work programs corporations as contractors FTAAs have been entered
and the corresponding who would invest in and into. The FTAA holders have
minimum expenditure operate and manage already been operating in
commitments for each of the extractive enterprises, various provinces of the
exploration, development and subject to the full control and country.
utilization phases of the supervision of the State; this
mining enterprise. time, however, safety (2) the question must be ripe
measures were put in place for adjudication; and - A
IV to prevent abuses of the past question is considered ripe
regime. for adjudication when the act
WHETHER OR NOT THE being challenged has had a
RESPONDENTS' the phrase agreements direct adverse effect on the
INTERPRETATION OF THE involving either technical or individual challenging it. (3)
ROLE OF WHOLLY FOREIGN financial assistance, referred the person challenging must
AND FOREIGN-OWNED to in paragraph 4, are in fact have the “standing" -
CORPORATIONS IN THEIR service contracts. But unlike personal or substantial
interest in the case such that ! Taking in Eminent Domain appropriated and applied to
the party has sustained or Distinguished from some public purpose, there is
will sustain direct injury as a Regulation in Police Power compensable taking.
result of the governmental
act that is being challenged, The power of eminent domain ! On different roles and
alleging more than a is the inherent right of the responsibilities:
generalized grievance. state (and of those entities to
which the power has been * DENR Secretary : accept,
By the mere enactment of lawfully delegated) to consider and evaluate
the questioned law or the condemn private property to proposals from foreign-owned
approval of the challenged public use upon payment of corporations or foreign
act, the dispute is said to just compensation.On the investors for contracts of
have ripened into a judicial other hand, police power is agreements involving either
controversy even without any the power of the state to technical or financial
other overt act. Indeed, promote public welfare by assistance for large-scale
even a singular violation of restraining and regulating the exploration, development,
the Constitution and/or the use of liberty and property. and utilization of minerals,
law is enough to awaken which, upon appropriate
judicial duty. Although both police power recommendation of the
and the power of eminent Secretary, the President may
! “taking” under the concept domain have the general execute with the foreign
of eminent domain as welfare for their object, and proponent. (Executive Order
entering upon private recent trends show a No. 279, 1987)
property for more than a mingling of the two with the
momentary period, and, latter being used as an ! in re: easements and
under the warrant or color of implement of the former, taking
legal authority, devoting it to there are still traditional
a public use, or otherwise distinctions between the In Ayala de Roxas v. City of
informally appropriating or two. Manila, it was held that the
injuriously affecting it in such imposition of burden over a
a way as to substantially oust Property condemned under private property through
the owner and deprive him of police power is usually easement was considered
all beneficial enjoyment noxious or intended for a taking; hence, payment of
thereof. noxious purpose; hence, no just compensation is
compensation shall be required. The Court
requisites of taking in paid. Likewise, in the declared:
eminent domain, to wit: exercise of police power,
property rights of private And, considering that the
(1) the expropriator individuals are subjected to easement intended to be
must enter a private restraints and burdens in established, whatever may be
property; order to secure the general the object thereof, is not
comfort, health, and merely a real right that will
(2) the entry must prosperity of the state. Thus, encumber the property, but is
be for more than a an ordinance prohibiting one tending to prevent the
momentary period. theaters from selling tickets exclusive use of one portion
in excess of their seating of the same, by expropriating
(3) the entry must capacity (which would result it for public use which, be it
be under warrant or color of in the diminution of profits of what it may, can not be
legal authority; the theater-owners) was accomplished unless the
upheld valid as this would owner of the property
(4) the property promote the comfort, condemned or seized be
must be devoted to public convenience and safety of the previously and duly
use or otherwise informally customers. indemnified, it is proper to
appropriated or injuriously protect the appellant by
affected; where a property interest is means of the remedy
merely restricted because the employed in such cases, as it
(5) the utilization of continued use thereof would is only adequate rem
the property for public use be injurious to public welfare, BENGUET CORPORATION v
must be in such a way as to or where property is DENR-MAB
oust the owner and deprive destroyed because its G.R. No. 163101
him of beneficial enjoyment continued existence would be February 13, 2008
of the property. injurious to public interest,
there is no compensable FACTS:
taking. However, when a
property interest is
On June 1, 1987, Benguet ISSUES: (1) Should the decision of the majority of
and J.G. Realty entered into a controversy have first been the Arbitrators
RAWOP, wherein J.G. Realty submitted to arbitration
was acknowledged as the before the POA took A contractual stipulation that
owner of four mining claims cognizance of the case?; (2) requires prior resort to
respectively named as Was the cancellation of the voluntary arbitration before
Bonito-I, Bonito-II, Bonito- RAWOP supported by the parties can go directly to
III, and Bonito-IV, with a evidence?; and (3) Did the court is not illegal and is in
total area cancellation of the RAWOP fact promoted by the State.
of 288.8656 hectares, amount to unjust enrichment
situated in Barangay of J.G. Realty at the expense To reiterate, availment of
Luklukam, Sitio Bagong of Benguet? voluntary arbitration before
Bayan, Municipality of Jose resort is made to the courts
Panganiban, Camarines HELD: On correctness of or quasi-judicial agencies of
Norte. appeal: Petitioner having the government is a valid
failed to properly appeal to contractual stipulation that
Thus, on August 9, 1989, the the CA under Rule 43, the must be adhered to by the
Executive Vice-President of decision of the MAB has parties.
Benguet, Antonio N. become final and executory.
Tachuling, issued a letter On this ground alone, the In other words, in the event a
informing J.G. Realty of its instant petition must be case that should properly be
intention to develop the denied. the subject of voluntary
mining claims. However, on arbitration is erroneously filed
February 9, 1999, J.G. (1) YES, the case should with the courts or quasi-
Realty, through its President, have first been brought to judicial agencies, on motion
Johnny L. Tan, then sent a voluntary arbitration before of the defendant, the court or
letter to the President of the POA. quasi-judicial agency shall
Benguet informing the latter determine whether such
that it was terminating the Secs. 11.01 and 11.02 of the contractual provision for
RAWOP on the following RAWOP pertinently provide: arbitration is sufficient and
grounds: effective. If in affirmative, the
11.01 Arbitration court or quasi-judicial agency
a. The fact that your shall then order the
company has failed to Any disputes, differences or enforcement of said
perform the obligations set disagreements between provision.
forth in the RAWOP, i.e., to BENGUET and the OWNER
undertake development with reference to anything In sum, on the issue of
works within 2 years from the whatsoever pertaining to this whether POA should have
execution of the Agreement that cannot be referred the case to voluntary
Agreement; b. Violation amicably settled by them arbitration, we find that,
of the Contract by allowing shall not be cause of any indeed, POA has no
high graders to operate on action of any kind whatsoever jurisdiction over the dispute
our claim. c. No in any court or administrative which is governed by RA 876,
stipulation was provided with agency but shall, upon notice the arbitration law.
respect to the term limit of of one party to the other, be
the RAWOP. d. Non- referred to a Board of HOWEVER, ESTOPPEL
payment of the royalties Arbitrators consisting of three APPLIES. the Court rules that
thereon as provided in the (3) members, one to be the jurisdiction of POA and
RAWOP. selected by BENGUET, that of MAB can no longer be
another to be selected by the questioned by Benguet at this
On June 7, 2000, J.G. Realty OWNER and the third to be late hour. What Benguet
filed a Petition for Declaration selected by the should have done was to
of Nullity/Cancellation of the aforementioned two immediately challenge the
RAWOP with the Legaspi City arbitrators so POA's jurisdiction by a special
POA, Region V, docketed as appointed. civil action for certiorari when
DENR Case No. 2000-01 and POA ruled that it has
entitled J.G. Realty v. xxxx jurisdiction over the
Benguet. dispute. To redo the
11.02 Court Action proceedings fully participated
DECISION OF LOWER in by the parties after the
COURTS: *POA: declared the No action shall be instituted lapse of seven years from
RAWOP cancelled. *MAB: in court as to any matter in date of institution of the
affirmed POA. dispute as hereinabove original action with the POA
stated, except to enforce the would be anathema to the
speedy and efficient There is a clear distinction
administration of justice. between compulsory and ISSUE/S:
voluntary arbitration. The 1. W/N fish samples seized
(2) The cancellation of the arbitration provided by the by the NBI in the F/B
RAWOP was supported by POA is compulsory, while the Robinson without a
evidence. nature of the arbitration search warrant are
provision in the RAWOP is admissible in evidence. –
(3) There is no unjust voluntary, not involving any YES.
enrichment in the instant government agency. 2. W/N Hizon et al., are guilty
case. There is no unjust You might also like: of illegal fishing with the
use of poisonous
enrichment when the person edy when no other legal
substances. NO.
who will benefit has a valid action can be resorted to,
claim to such benefit. against an intent which is
RATIO: As a general rule, any
nothing short of an arbitrary evidence obtained without a
The principle of unjust restriction imposed by the judicial warrant is inadmissible for
enrichment under Article 22 city by virtue of the coercive any purpose in any proceeding.
requires two conditions: (1) power with which the same is The rule is, however, subject to
that a person is benefited invested. certain exceptions. Search and
without a valid basis or seizure without search warrant of
justification, and (2) that ! in order that one law may vessels and aircrafts for violations
such benefit is derived at operate to repeal another of customs laws have been the
another's expense or law, the two laws must be traditional exception to the
damage. inconsistent.The former must constitutional requirement of a
be so repugnant as to be search warrant. The same
Clearly, there is no unjust irreconciliable with the latter exception ought to apply to
enrichment in the instant act seizures of fishing vessels and
case as the cancellation of FACTS: HIZON et al. were boats breaching our fishery laws.
the RAWOP, which left charged with violating PD 704 for Hizon et al. were charged
with illegal fishing penalized under
Benguet without any legal supposedly fishing without the use
sections 33 and 38 of P.D. 704.
right to participate in further of a poisonous substance (sodium
These provisions create a
developing the mining claims, cyanide). A report that some presumption of guilt for
was brought about by its fishing boats were fishing by "muro
ami" led to the apprehension of possession of explosives or
violation of the RAWOP. poisonous substances. However,
such boat (F/B Robinson), where
Hence, Benguet has no one this presumption is merely prima
Hizon et al were Does the proscription
to blame but itself for its against ex post facto laws apply to the facie and the accused has the right
predicament. interpretation of Section 11, a provision to present evidence to rebut this
which does not provide for a penal presumption.
sanction but which merely authorizes
OBITER DICTA: the inspection of suspect accounts and In this case, the only basis
(1) Difference between deposits? Does the proscription for the charge of fishing with
compulsory & voluntary against ex post facto laws apply to the poisonous substance is the result
interpretation of Section 11, a provision
arbitration -- which does not provide for a penal
of the first NBI laboratory test on
sanction but which merely authorizes the four fish specimens. The
In Reformist Union of R.B. the inspection of suspect accounts and apprehending officers who
Liner, Inc. vs. NLRC, deposits? present. The police (PNP boarded and searched the boat
compulsory arbitration has Maritime Command and the Task did not find any sodium cyanide
Force Bantay Dagat) directed the nor any poisonous or obnoxious
been defined both as “the
boat captain to get random substance. Neither did they find
process of settlement of labor
samples of the fish from the fish any trace of the poison in the
disputes by a government
cage for testing. The initial results possession of the fishermen or in
agency which has the tested the fish positive for sodium the fish cage itself. Under the
authority to investigate and cyanide and that was the basis of circumstances of the case,
to make an award which is the information against Hizon et al. however, this finding does not
binding on all the parties, and However, a second set of fish warrant the infallible conclusion
as a mode of arbitration samples yielded a negative result that the fishes in the F/B Robinson,
where the parties are on the sodium cyanide. or even the same four specimens,
compelled to accept the Notwithstanding this, the were caught with the use of
resolution of their dispute RTC found Hizon et al. guilty and sodium cyanide.
through arbitration by a third sentenced them to imprisonment Apparently, it was the
party.” While a voluntary and forfeiture of the fishes. The CA police who were the ones engaged
arbitrator is not part of the affirmed this decision. Hizon et al., in an illegal fishing expedition.
governmental unit or labor together with the Solicitor general "Muro ami", as what was reported
department's personnel, said now question the admissibility of the fishermen were doing, is made
arbitrator renders arbitration the evidence against petitioners in with "the use of a big net with
services provided for under view of the warrantless search of sinkers to make the net submerge
the fishing boat and the in the water with the fishermen
labor laws.
subsequent arrest of petitioners. surround[ing] the net." This
method of fishing needs XII and Sections 2 and 7 of therein to LGUs which
approximately two hundred (200) Article XIII of the 1987 unquestionably involve the
fishermen to execute. What the Constitution. exercise of police power, the
apprehending officers instead
discovered were twenty eight (28)
validity of the questioned
fishermen in their sampans fishing ISSUE: ordinances cannot be
by hook and line. The authorities Are the challenged doubted.
found nothing on the boat that ordinances unconstitutional? Mn m hvkjkkvhjvcjhcmh
would have indicated any form of Kjbaskjdbakdbask.bdaskbdkasbdk
illegal fishing. All the documents of HELD: asdb
the boat and the fishermen were in No. The Supreme Court kskhdkasjfksa
order. It was only after the fish
found the petitioners
specimens were tested, albeit
under suspicious circumstances, contentions baseless and held
that petitioners were charged with that the challenged sjhbgsjkdgasjbdasljdbsajdvaslj
illegal fishing with the use of ordinances did not suffer Mn m
poisonous substances. from any infirmity, both hvkjkkvhjvcjnkkmslaknldnaskj;j
under the Constitution and bkasbjhcmh
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absolutely no showing that
Socrates any of the petitioners
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Natural and Environmental qualifies as a subsistence or
Laws; Constitutional Law; marginal fisherman. Besides,
Regalian Doctrine Section 2 of Article XII aims
GR No. 110249; August 21, primarily not to bestow any
1997 right to subsistence
fishermen, but to lay stress
on the duty of the State to
FACTS: protect the nation’s marine
On Dec 15, 1992, the wealth. The so-called
Sangguniang Panglungsod ng “preferential right” of
Puerto Princesa enacted an subsistence or marginal
ordinance banning the fishermen to the use of
shipment of all live fish and marine resources is not at all
lobster outside Puerto absolute.
Princesa City from January 1, In accordance with the
1993 to January 1, 1998. Regalian Doctrine, marine
Subsequently the resources belong to the state
Sangguniang Panlalawigan, and pursuant to the first
Provincial Government of paragraph of Section 2,
Palawan enacted a resolution Article XII of the
prohibiting the catching , Constitution, their
gathering, possessing, “exploration, development
buying, selling, and shipment and utilization...shall be
of a several species of live under the full control and
marine coral dwelling aquatic supervision of the State.
organisms for 5 years, in and
coming from Palawan waters. In addition, one of the
Petitioners filed a special civildevolved powers of the LCG
action for certiorari and on devolution is the
prohibition, praying that the enforcement of fishery laws
ABUSE OF RIGHT
Elements ABUSE OF RIGHT in municipal waters including
Elements court declare the said the conservation of
ordinances and resolutions as mangroves. This necessarily
unconstitutional on the includes the enactment of
ground that the said ordinances to effectively
ordinances deprived them of carry out such fishery laws
the due process of law, their within the municipal waters.
livelihood, and unduly In light of the principles of
restricted them from the decentralization and
practice of their trade, in devolution enshrined in the
violation of Section 2, Article LGC and the powers granted
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