Chavez vs Pea (Natres)

8/11/2019 Chavez vs Pea (Natres)

1/36

Republic of the Philippines

SUPREME COURT

Manila

EN BANC

G.R. No. 133!" #ul$ %& ""

'RANC(SCO (. C)A*E+& petitione,&

-s.

PUB(C ESTATES AUT)OR(T/ an0 AMAR( COASTA BA/

E*EOPMENT CORPORAT(ON& ,espon0ents.

CARP(O& J.:

This is an o,i2inal Petition fo, Man0aus 4ith p,a$e, fo, a 4,it of p,eliina,$

in5unction an0 a tepo,a,$ ,est,ainin2 o,0e,. The petition see6s to copel

the Public Estates Autho,it$ 78PEA8 fo, b,e-it$9 to 0isclose all facts on PEA:s

then on;2oin2 ,ene2otiations 4ith Aa,i Coastal Ba$ an0 e-elopent

Co,po,ation 78AMAR(8 fo, b,e-it$9 to ,eclai po,tions of Manila Ba$. The

petition fu,the, see6s to en5oin PEA f,o si2nin2 a ne4 a2,eeent 4ith

AMAR( in-ol-in2 such ,eclaation.

The 'acts

On No-ebe, "& 1%= tas6e0 PEA 8to

,eclai lan0& inclu0in2 fo,esho,e an0 sube,2e0 a,eas&8 an0 8to 0e-elop&

ip,o-e& ac?ui,e& @ @ @ lease an0 sell an$ an0 all 6in0s of lan0s.81On the

sae 0ate& then P,esi0ent Ma,cos issue0 P,esi0ential ec,ee No. 1">!

t,ansfe,,in2 to PEA the 8lan0s ,eclaie0 in the fo,esho,e an0 offsho,e of the

Manila Ba$8un0e, the Manila;Ca-ite Coastal Roa0 an0 Reclaation P,o5ect

7MCCRRP9.

On ecebe, %& 1%>1& then P,esi0ent Ma,cos issue0 a eo,an0u

0i,ectin2 PEA to aen0 its cont,act 4ith CCP& so that 8All futu,e 4o,6s in

MCCRRP @ @ @ shall be fun0e0 an0 o4ne0 b$ PEA.8 Acco,0in2l$& PEA an0

CCP e@ecute0 a Meo,an0u of A2,eeent 0ate0 ecebe, %& 1%>1&

4hich state0

87i9 CCP shall un0e,ta6e all ,eclaation& const,uction& an0 such othe, 4o,6sin the MCCRRP as a$ be a2,ee0 upon b$ the pa,ties& to be pai0 acco,0in2

to p,o2,ess of 4o,6s on a unit p,iceDlup su basis fo, ites of 4o,6 to be

a2,ee0 upon& sub5ect to p,ice escalation& ,etention an0 othe, te,s an0

con0itions p,o-i0e0 fo, in P,esi0ential ec,ee No. 1!%=. All the financin2

,e?ui,e0 fo, such 4o,6s shall be p,o-i0e0 b$ PEA.

@ @ @

7iii9 @ @ @ CCP shall 2i-e up all its 0e-elopent ,i2hts an0 he,eb$ a2,ees to

ce0e an0 t,ansfe, in fa-o, of PEA& all of the ,i2hts& title& inte,est an0

pa,ticipation of CCP in an0 to all the a,eas of lan0 ,eclaie0 b$ CCP inthe MCCRRP as of ecebe, 3"& 1%>1 4hich ha-e not $et been sol0&

t,ansfe,,e0 o, othe,4ise 0ispose0 of b$ CCP as of sai0 0ate& 4hich a,eas

consist of app,o@iatel$ Ninet$;Nine Thousan0 'ou, )un0,e0 Se-ent$ Th,ee

7%%&=


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On Ap,il !& 1%%!& PEA ente,e0 into a #oint *entu,e A2,eeent 78#*A8 fo,

b,e-it$9 4ith AMAR(& a p,i-ate co,po,ation& to 0e-elop the ',ee0o (slan0s.

The #*A also ,e?ui,e0 the ,eclaation of an a00itional !" hecta,es of

sube,2e0 a,eas su,,oun0in2 these islan0s to coplete the confi2u,ation in

the Maste, e-elopent Plan of the Southe,n Reclaation P,o5ect;

MCCRRP. PEA an0 AMAR( ente,e0 into the #*A th,ou2h ne2otiation 4ithout

public bi00in2.=On Ap,il >& 1%%!& the Boa,0 of i,ecto,s of PEA& in itsResolution No. 1=!& confi,e0 the #*A.!On #une >& 1%%!& then P,esi0ent

'i0el *. Raos& th,ou2h then E@ecuti-e Sec,eta,$ Ruben To,,es& app,o-e0

the #*A.H

On No-ebe, %& 1%%H& then Senate P,esi0ent E,nesto Mace0a 0eli-e,e0 a

p,i-ile2e speech in the Senate an0 0enounce0 the #*A as the 82,an0othe,

of all scas.8 As a ,esult& the Senate Coittee on Go-e,nent

Co,po,ations an0 Public Ente,p,ises& an0 the Coittee on Accountabilit$ of

Public Office,s an0 (n-esti2ations& con0ucte0 a 5oint in-esti2ation. The

Senate Coittees ,epo,te0 the ,esults of thei, in-esti2ation in Senate

Coittee Repo,t No. !H" 0ate0 Septebe, 1H& 1%%the Chief

P,esi0ential e2al Counsel&%an0 the Go-e,nent Co,po,ate Counsel.1"The

e2al Tas6 'o,ce uphel0 the le2alit$ of the #*A& cont,a,$ to the conclusions

,eache0 b$ the Senate Coittees.11

On Ap,il = an0 !& 1%%>& the Philippine Daily Inquireran0 Todaypublishe0

,epo,ts that the,e 4e,e on;2oin2 ,ene2otiations bet4een PEA an0 AMAR(

un0e, an o,0e, issue0 b$ then P,esi0ent 'i0el *. Raos. Acco,0in2 to these

,epo,ts& PEA i,ecto, Nesto, Jala4& PEA Chai,an A,senio /ulo an0 ,eti,e0

Na-$ Office, Se,2io C,uF copose0 the ne2otiatin2 panel of PEA.

On Ap,il 13& 1%%>& Antonio M. +ulueta file0 befo,e the Cou,t a Petition for

Prohibition with Application for the Issuance of a Temporary Restraining

rder and Preliminary In!unction0oc6ete0 as G.R. No. 13%%= see6in2 to

nullif$ the #*A. The Cou,t 0isisse0 the petition 8fo, un4a,,ante0 0is,e2a,0

of 5u0icial hie,a,ch$& 4ithout p,e5u0ice to the ,efilin2 of the case befo,e the

p,ope, cou,t.81

On Ap,il & petitione, ',an6 (. Cha-eF 78Petitione,8 fo, b,e-it$9 as a

ta@pa$e,& file0 the instant Petition for "andamus with Prayer for the Issuanceof a #rit of Preliminary In!unction and Temporary Restraining rder.

Petitione, conten0s the 2o-e,nent stan0s to lose billions of pesos in the

sale b$ PEA of the ,eclaie0 lan0s to AMAR(. Petitione, p,a$s that PEA

publicl$ 0isclose the te,s of an$ ,ene2otiation of the #*A& in-o6in2 Section

>& A,ticle ((& an0 Section < Constitution on the ,i2ht of

the people to info,ation on atte,s of public conce,n. Petitione, assails the

sale to AMAR( of lan0s of the public 0oain as a blatant -iolation of Section

3& A,ticle K(( of the 1%>< Constitution p,ohibitin2 the sale of alienable lan0s of

the public 0oain to p,i-ate co,po,ations. 'inall$& petitione, asse,ts that he

see6s to en5oin the loss of billions of pesos in p,ope,ties of the State that a,e

of public 0oinion.

Afte, se-e,al otions fo, e@tension of tie&13PEA an0 AMAR( file0 thei,

Coents on Octobe, 1%& 1%%> an0 #une !& 1%%>& ,especti-el$. Mean4hile&

on ecebe, >& 1%%>& petitione, file0 an Onibus Motion 7a9 to ,e?ui,e

PEA to subit the te,s of the ,ene2otiate0 PEA;AMAR( cont,actI 7b9 fo,

issuance of a tepo,a,$ ,est,ainin2 o,0e,I an0 7c9 to set the case fo, hea,in2

on o,al a,2uent. Petitione, file0 a Reite,ati-e Motion fo, (ssuance of a TRO

0ate0 Ma$ H& 1%%%& 4hich the Cou,t 0enie0 in a Resolution 0ate0 #une &

1%%%.

(n a Resolution 0ate0 Ma,ch 3& 1%%%& the Cou,t 2a-e 0ue cou,se to the

petition an0 ,e?ui,e0 the pa,ties to file thei, ,especti-e eo,an0a.

On Ma,ch 3"& 1%%%& PEA an0 AMAR( si2ne0 the Aen0e0 #oint *entu,e

A2,eeent 78Aen0e0 #*A&8 fo, b,e-it$9. On Ma$ >& 1%%%& the Office of the

P,esi0ent un0e, the a0inist,ation of then P,esi0ent #oseph E. Est,a0a

app,o-e0 the Aen0e0 #*A.

ue to the app,o-al of the Aen0e0 #*A b$ the Office of the P,esi0ent&

petitione, no4 p,a$s that on 8constitutional an0 statuto,$ 2,oun0s the

,ene2otiate0 cont,act be 0ecla,e0 null an0 -oi0.81=


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The (ssues

The issues ,aise0 b$ petitione,& PEA1!an0 AMAR(1Ha,e as follo4s

(. )ET)ER T)E PR(NC(PA RE(E'S PRA/E 'OR (N T)E PET(T(ON

ARE MOOT AN ACAEM(C BECAUSE O' SUBSELUENT E*ENTSI

((. )ET)ER T)E PET(T(ON MER(TS (SM(SSA 'OR 'A((NG TO

OBSER*E T)E PR(NC(PE GO*ERN(NG T)E )(ERARC)/ O' COURTSI

(((. )ET)ER T)E PET(T(ON MER(TS (SM(SSA 'OR NON;

EK)AUST(ON O' AM(N(STRAT(*E REME(ESI

(*. )ET)ER PET(T(ONER )AS $%&' 'TA(DITO BR(NG T)(S SU(TI

*. )ET)ER T)E CONST(TUT(ONA R(G)T TO (N'ORMAT(ON

(NCUES O''(C(A (N'ORMAT(ON ON ON;GO(NG NEGOT(AT(ONS

BE'ORE A '(NA AGREEMENTI

*(. )ET)ER T)E ST(PUAT(ONS (N T)E AMENE #O(NT *ENTURE

AGREEMENT 'OR T)E TRANS'ER TO AMAR( O' CERTA(N ANS&

RECA(ME AN ST( TO BE RECA(ME& *(OATE T)E 1%>H

Constitutional Coission un0e,stoo0 that the ,i2ht to

info,ation contemplates inclusion of negotiations leading to the

consummation of the transaction.Ce,tainl$& a consuate0 cont,act is not

a ,e?ui,eent fo, the e@e,cise of the ,i2ht to info,ation. Othe,4ise& the

people can ne-e, e@e,cise the ,i2ht if no cont,act is consuate0& an0 if one

is consuate0& it a$ be too late fo, the public to e@pose its0efects.;


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10/36

Act No. 1H!=& ho4e-e,& 0i0 not ,epeal Section ! of the Spanish a4 of

ate,s of 1>HH. Act No. 1H!= 0i0 not p,ohibit p,i-ate pa,ties f,o ,eclaiin2

pa,ts of the sea un0e, Section ! of the Spanish a4 of ate,s. an0s

,eclaie0 f,o the sea b$ p,i-ate pa,ties 4ith 2o-e,nent pe,ission

,eaine0 p,i-ate lan0s.

Act (o. >-@ of the Philippine $egislature

On No-ebe, %& 1%1%& the Philippine e2islatu,e enacte0 Act No. >shall be classifie08 as 2o-e,nent ,eclaie0& fo,esho,e an0 a,sh$

lan0s& as 4ell as othe, lan0s. All these lan0s& ho4e-e,& ust be suitable fo,

,esi0ential& coe,cial& in0ust,ial o, othe, p,o0ucti-e non0

agriculturalpu,poses. These p,o-isions -este0 upon the Go-e,no,;Gene,al

the po4e, to classif$ inalienable lan0s of the public 0oain into 0isposable

lan0s of the public 0oain. These p,o-isions also epo4e,e0 the Go-e,no,;

Gene,al to classif$ fu,the, such 0isposable lan0s of the public 0oain into

2o-e,nent ,eclaie0& fo,esho,e o, a,sh$ lan0s of the public 0oain& as

4ell as othe, non;a2,icultu,al lan0s.

Section !> of Act No. >


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12/36

cont,a,$& the le2islatu,e continue0 the lon2 establishe0 State polic$ of

,etainin2 fo, the 2o-e,nent title an0 o4ne,ship of 2o-e,nent ,eclaie0

an0 a,sh$ lan0s of the public 0oain.

%ommonwealth Act (o. ;@; of the Philippine (ational Assembly

On No-ebe, of CA No. 1=1 states

that the 2o-e,nent can 0ecla,e open fo, 0isposition o, concession onl$lan0s that a,e 8officiall$ 0eliite0 an0 classifie0.8 Sections H& < an0 > of CA

No. 1=1 ,ea0 as follo4s

8Sec. H. The President6 upon the recommendation of the 'ecretary of

Agriculture and %ommerce6 shall from time to time classify the lands of the

public domain into

BaC Alienable or disposable&

7b9 Tibe,& an0

7c9 Mine,al lan0s&

an0 a$ at an$ tie an0 in li6e anne, t,ansfe, such lan0s f,o one class to

anothe,&!3fo, the pu,pose of thei, a0inist,ation an0 0isposition.

Sec. . nly those lands shall be declared open to disposition or concession

which ha*e been officially delimited and classifiedan0& 4hen p,acticable&su,-e$e0& and which ha*e not been reser*ed for public or quasi0public uses&

no, app,op,iate0 b$ the Go-e,nent& no, in an$ anne, becoe p,i-ate

p,ope,t$& no, those on 4hich a p,i-ate ,i2ht autho,iFe0 an0 ,eco2niFe0 b$ this

Act o, an$ othe, -ali0 la4 a$ be claie0& o, 4hich& ha-in2 been ,ese,-e0 o,

app,op,iate0& ha-e cease0 to be so. @ @ @.8

Thus& befo,e the 2o-e,nent coul0 alienate o, 0ispose of lan0s of the public

0oain& the P,esi0ent ust fi,st officiall$ classif$ these lan0s as alienable o,0isposable& an0 then 0ecla,e the open to 0isposition o, concession. The,e

ust be no la4 ,ese,-in2 these lan0s fo, public o, ?uasi;public uses.

The salient p,o-isions of CA No. 1=1& on 2o-e,nent ,eclaie0& fo,esho,e

an0 a,sh$ lan0s of the public 0oain& a,e as follo4s

8Sec. !>.Any tract of land of the public domain which6 being neither timber

nor mineral land6 is intended to be used for residential purposes or for

commercial6 industrial6 or other producti*e purposes other than agricultural6

and is open to disposition or concession6 shall be disposed of under the

pro*isions of this chapter and not otherwise.

Sec. !%. The lands disposable under this title shall be classified as follows

BaC $ands reclaimed by the 4o*ernment by dredging6 filling6 or other means

BbC )oreshore

BcC "arshy landso, lan0s co-e,e0 4ith 4ate, bo,0e,in2 upon the sho,es o,

ban6s of na-i2able la6es o, ,i-e,sI

709 an0s not inclu0e0 in an$ of the fo,e2oin2 classes.

Sec. H". An$ t,act of lan0 cop,ise0 un0e, this title a$ be lease0 o, sol0& as

the case a$ be& to an$ pe,son& co,po,ation& o, association autho,iFe0 to

pu,chase o, lease public lan0s fo, a2,icultu,al pu,poses. @ @ @.

Sec. H1. The lands comprised in classes BaC6 BbC6 and BcC of section fifty0nine

shall be disposed of to pri*ate parties by lease only and not otherwise& as

soon as the President& upon ,ecoen0ation b$ the Sec,eta,$ of

A2,icultu,e& shall declare that the same are not necessary for the public

ser*icean0 a,e open to 0isposition un0e, this chapte,. The lands included in

class BdC may be disposed of by sale or lease under the pro*isions of this

Act.8 7Ephasis supplie09


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Section H1 of CA No. 1=1 ,ea0opte0& afte, the effecti-it$ of the 1%3!

Constitution& Section !> of Act No. >


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municipality or branch or subdi*ision of the 4o*ernment shall not be

alienated6 encumbered6 or otherwise disposed of in a manner affecting its

title6 e1cept when authori3ed by %ongress @ @ @.8 7Ephasis supplie09

The con2,essional autho,it$ ,e?ui,e0 in Section H" of CA No. 1=1 i,,o,s the

le2islati-e autho,it$ ,e?ui,e0 in Section !H of Act No. >HH. P,i-ate pa,ties coul0 still

,eclai po,tions of the sea 4ith 2o-e,nent pe,ission. )o4e-e,&

the reclaimed land could become pri*ate land only if classified as alienable

agricultural land of the public domainopen to 0isposition un0e, CA No. 1=1.

The 1%3! Constitution p,ohibite0 the alienation of all natu,al ,esou,ces

e@cept public a2,icultu,al lan0s.

The %i*il %ode of ;?E

The Ci-il Co0e of 1%!" ,ea0opte0 substantiall$ the 0efinition of p,ope,t$ of

public 0oinion foun0 in the Ci-il Co0e of 1>>%. A,ticles =" an0 = of the

Ci-il Co0e of 1%!" state that

8A,t. =". The follo4in2 thin2s a,e p,ope,t$ of public 0oinion

719 Those inten0e0 fo, public use& such as ,oa0s& canals& ,i-e,s& to,,ents&

po,ts an0 b,i02es const,ucte0 b$ the State& ban6s& sho,es& ,oa0stea0s& an0

othe,s of siila, cha,acte,I

79 Those 4hich belon2 to the State& 4ithout bein2 fo, public use& an0 a,e

inten0e0 fo, soe public se,-ice o, fo, the 0e-elopent of the national

4ealth.

@ @ @.

A,t. =. P,ope,t$ of public 0oinion& 4hen no lon2e, inten0e0 fo, public use

o, fo, public se,-ice& shall fo, pa,t of the pat,ionial p,ope,t$ of the State.8

A2ain& the 2o-e,nent ust fo,all$ 0ecla,e that the p,ope,t$ of public

0oinion is no lon2e, nee0e0 fo, public use o, public se,-ice& befo,e the

sae coul0 be classifie0 as pat,ionial p,ope,t$ of the State.!%(n the case of

2o-e,nent ,eclaie0 an0 a,sh$ lan0s of the public 0oain& the

0ecla,ation of thei, bein2 0isposable& as 4ell as the anne, of thei,0isposition& is 2o-e,ne0 b$ the applicable p,o-isions of CA No. 1=1.

i6e the Ci-il Co0e of 1>>%& the Ci-il Co0e of 1%!" inclu0e0 as p,ope,t$ of

public 0oinion those p,ope,ties of the State 4hich& 4ithout bein2 fo, public

use& a,e inten0e0 fo, public se,-ice o, the 8de*elopment of the national

wealth.8 Thus& 2o-e,nent ,eclaie0 an0 a,sh$ lan0s of the State& e-en if

not eplo$e0 fo, public use o, public se,-ice& if 0e-elope0 to enhance the

national 4ealth& a,e classifie0 as p,ope,t$ of public 0oinion.

Dispositions under the ;?-+ %onstitution


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The 1%= c,eatin2 PEA& a 4holl$ 2o-e,nent o4ne0 an0 cont,olle0

co,po,ation 4ith a special cha,te,. Sections = an0 > of P No. 1">=& -ests

PEA 4ith the follo4in2 pu,poses an0 po4e,s

8Sec. =. Pu,pose. The Autho,it$ is he,eb$ c,eate0 fo, the follo4in2 pu,poses

7a9 To reclaim land6 including foreshore and submerged areas6 by dredging6

filling or other means6 or to acquire reclaimed land

7b9 To 0e-elop& ip,o-e& ac?ui,e& a0iniste,& 0eal in& sub0i-i0e&

0ispose& lease and sell any and all Finds of lands& buil0in2s& estates an0

othe, fo,s of ,eal p,ope,t$& o4ne0& ana2e0& cont,olle0 an0Do, ope,ate0 b$

the 2o-e,nentI

7c9 To p,o-i0e fo,& ope,ate o, a0iniste, such se,-ice as a$ be necessa,$

fo, the efficient& econoical an0 beneficial utiliFation of the abo-e p,ope,ties.

Sec. !. Po4e,s an0 functions of the Autho,it$. The Autho,it$ shall& in ca,,$in2

out the pu,poses fo, 4hich it is c,eate0& ha-e the follo4in2 po4e,s an0

functions


16/36

7a9To p,esc,ibe its b$;la4s.

@ @ @

7i9 To hold lands of the public domain in e@cess of the a,ea pe,itte0 to

p,i-ate co,po,ations b$ statute.

759 To reclaim landsan0 to const,uct 4o,6 ac,oss& o, othe,4ise& an$ st,ea&4ate,cou,se& canal& 0itch& flue @ @ @.

@ @ @

7o9 To pe,fo, such acts an0 e@e,cise such functions as a$ be necessa,$

fo, the attainent of the pu,poses an0 ob5ecti-es he,ein specifie0.8

7Ephasis supplie09

P No. 1">= autho,iFes PEA to ,eclai both fo,esho,e an0 sube,2e0 a,eas

of the public 0oain. 'o,esho,e a,eas a,e those co-e,e0 an0 unco-e,e0 b$

the ebb an0 flo4 of the ti0e.H1

Sube,2e0 a,eas a,e those pe,anentl$un0e, 4ate, ,e2a,0less of the ebb an0 flo4 of the ti0e.H'o,esho,e an0

sube,2e0 a,eas in0isputabl$ belon2 to the public 0oainH3an0 a,e

inalienable unless ,eclaie0& classifie0 as alienable lan0s open to

0isposition& an0 fu,the, 0ecla,e0 no lon2e, nee0e0 fo, public se,-ice.

The ban in the 1%


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4hich a$ be ac?ui,e0& 0e-elope0& hel0& o, lease0 an0 the con0itions

the,efo,.8 7Ephasis supplie09

The 1%>< Constitution continues the State polic$ in the 1%


18/36

public 0oain onl$ to in0i-i0uals. This& it 4oul0 see& is the p,actical benefit

a,isin2 f,o the constitutional ban.

The Amended Joint 7enture Agreement

The sub5ect atte, of the Aen0e0 #*A& as state0 in its secon0 he,eas

clause& consists of th,ee p,ope,ties& nael$

1. 8Th,ee pa,tiall$ ,eclaie0 an0 substantiall$ e,o0e0 islan0s alon2 Eilio

A2uinal0o Boule-a,0 in Pa,ana?ue an0 as Pinas& Met,o Manila& 4ith a

cobine0 title0 a,ea of 1&!&==1 s?ua,e ete,sI8

. 8Anothe, a,ea of &=1&!!% s?ua,e ete,s conti2uous to the th,ee

islan0sI8 an0

3. 8At AMAR(:s option as app,o-e0 b$ PEA& an a00itional 3!" hecta,es

o,e o, less to ,e2ula,iFe the confi2u,ation of the ,eclaie0 a,ea.8H!

PEA confi,s that the Aen0e0 #*A in-ol-es 8the 0e-elopent of the',ee0o (slan0s an0 fu,the, ,eclaation of about !" hecta,es @ @ @&8 plus

an option 82,ante0 to AMAR( to subse?uentl$ ,eclai anothe, 3!" hecta,es @

@ @.8HH

(n sho,t& the Aen0e0 #*A co-e,s a ,eclaation a,ea of

Un0e, the Aen0e0 #*A& AMAR( 4ill ,eibu,se PEA the su of

P1&>%=&1%&""."" fo, PEA:s 8actual cost8 in pa,tiall$ ,eclaiin2 the ',ee0o(slan0s. AMAR( 4ill also coplete& at its o4n e@pense& the ,eclaation of the

',ee0o (slan0s. AMAR( 4ill fu,the, shoul0e, all the ,eclaation costs of all

the othe, a,eas& totalin2 !%.1! hecta,es& still to be ,eclaie0. AMAR( an0

PEA 4ill sha,e& in the p,opo,tion of


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P No. 1">!& couple0 4ith P,esi0ent A?uino:s actual issuanceof a special

patent co-e,in2 the ',ee0o (slan0s& is e?ui-alent to an official p,oclaation

classif$in2 the ',ee0o (slan0s as alienable o, 0isposable lan0s of the public

0oain. P No. 1">! an0 P,esi0ent A?uino:s issuance of a lan0 patent also

constitute a 0ecla,ation that the ',ee0o (slan0s a,e no lon2e, nee0e0 fo,

public se,-ice. The )reedom Islands are thus alienable or disposable lands

of the public domain6 open to disposition or concession to qualified parties.

At the tie then P,esi0ent A?uino issue0 Special Patent No. 3!1< Constitution classifies lan0s of the public 0oain into 8a2,icultu,al&

fo,est o, tibe,& ine,al lan0s& an0 national pa,6s.8 Bein2 neithe, tibe,&

ine,al& no, national pa,6 lan0s& the ,eclaie0 ',ee0o (slan0s necessa,il$

fall un0e, the classification of a2,icultu,al lan0s of the public 0oain. Un0e,

the 1%>< Constitution& a2,icultu,al lan0s of the public 0oain a,e the onl$natu,al ,esou,ces that the State a$ alienate to ?ualifie0 p,i-ate pa,ties. All

othe, natu,al ,esou,ces& such as the seas o, ba$s& a,e 84ate,s @ @ @ o4ne0

b$ the State8 fo,in2 pa,t of the public 0oain& an0 a,e inalienable pu,suant

to Section & A,ticle K(( of the 1%>< Constitution.

AMAR( clais that the ',ee0o (slan0s a,e p,i-ate lan0s because CCP&

then a p,i-ate co,po,ation& ,eclaie0 the islan0s un0e, a cont,act 0ate0

No-ebe, "& 1%HH& a,2ues that 8if the

o4ne,ship of ,eclaie0 lan0s a$ be 2i-en to the pa,t$ const,uctin2 the

4o,6s& then it cannot be sai0 that ,eclaie0 lan0s a,e lan0s of the public

0oain 4hich the State a$ not alienate.8

ate,s ,ea0s as follo4s

8A,ticle !. an0s ,eclaie0 f,o the sea in conse?uence of 4o,6s

const,ucte0 b$ the State& o, b$ the p,o-inces& pueblos o, p,i-ate

pe,sons& with proper permission& shall becoe the p,ope,t$ of the pa,t$

const,uctin2 such 4o,6s& unless otherwise pro*ided by the terms of the grant

of authority.8 7Ephasis supplie09

Un0e, A,ticle ! of the Spanish a4 of ate,s of 1>HH& p,i-ate pa,ties coul0

,eclai f,o the sea onl$ 4ith 8p,ope, pe,ission8 f,o the State. P,i-ate

pa,ties coul0 o4n the ,eclaie0 lan0 onl$ if not 8othe,4ise p,o-i0e0 b$ the

te,s of the 2,ant of autho,it$.8 This clea,l$ eant that no one coul0 ,eclai

f,o the sea 4ithout pe,ission f,o the State because the sea is p,ope,t$

of public 0oinion. (t also eant that the State coul0 2,ant o, 4ithhol0

o4ne,ship of the ,eclaie0 lan0 because an$ ,eclaie0 lan0& li6e the sea

f,o 4hich it ee,2e0& belon2e0 to the State. Thus& a p,i-ate pe,son

,eclaiin2 f,o the sea 4ithout pe,ission f,o the State coul0 not ac?ui,eo4ne,ship of the ,eclaie0 lan0 4hich 4oul0 ,eain p,ope,t$ of public

0oinion li6e the sea it ,eplace0.HH a0opte0 the tie;hono,e0 p,inciple of lan0 o4ne,ship that 8all lan0s

that 4e,e not ac?ui,e0 f,o the 2o-e,nent& eithe, b$ pu,chase o, b$ 2,ant&

belon2 to the public 0oain.8


21/36

4ith the National Go-e,nent& an0 no lon2e, b$ 2,ant o, pe,ission as

p,o-i0e0 in Section ! of the Spanish a4 of ate,s of 1>HH.

E@ecuti-e O,0e, No. !!& issue0 on 'eb,ua,$ 1=& 1%


22/36


23/36


24/36


25/36

failu,e of public bi00in2 on ecebe, 1"& 1%%1& in-ol-in2 onl$ ="=

hecta,es&%!is not a -ali0 5ustification fo, a ne2otiate0 sale of

si2nin2 of the o,i2inal #*A on Ap,il !& 1%%!. The econoic situation in the

count,$ ha0 2,eatl$ ip,o-e0 0u,in2 the inte,-enin2 pe,io0.

Reclamation under the /T $aw and the $ocal 4o*ernment %ode

The constitutional p,ohibition in Section 3& A,ticle K(( of the 1%>< Constitution

is absolute an0 clea, 8P,i-ate co,po,ations o, associations a$ not hol0

such alienable lan0s of the public 0oain e@cept b$ lease& @ @ @.8 E-en

Republic Act No. H%!< 78BOT a4&8 fo, b,e-it$9& cite0 b$ PEA an0 AMAR( as

le2islati-e autho,it$ to sell ,eclaie0 lan0s to p,i-ate pa,ties& ,eco2niFes the

constitutional ban. Section H of RA No. H%!< states

8Sec. H. Repa$ent Schee. ; 'o, the financin2& const,uction& ope,ation an0

aintenance of an$ inf,ast,uctu,e p,o5ects un0e,ta6en th,ou2h the buil0;

ope,ate;an0;t,ansfe, a,,an2eent o, an$ of its -a,iations pu,suant to the

p,o-isions of this Act& the p,o5ect p,oponent @ @ @ a$ li6e4ise be ,epai0 in

the fo, of a sha,e in the ,e-enue of the p,o5ect o, othe, non;oneta,$

pa$ents& such as& but not liite0 to& the 2,ant of a po,tion o, pe,centa2e of

the ,eclaie0 lan0& sub!ect to the constitutional requirements with respect to

the ownership of the land @ @ @.8 7Ephasis supplie09

A p,i-ate co,po,ation& e-en one that un0e,ta6es the ph$sical ,eclaation of a

2o-e,nent BOT p,o5ect& cannot ac?ui,e ,eclaie0 alienable lan0s of the

public 0oain in -ie4 of the constitutional ban.

Section 3" of the ocal Go-e,nent Co0e& also entione0 b$ PEA an0

AMAR(& autho,iFes local 2o-e,nents in lan0 ,eclaation p,o5ects to pa$ the

cont,acto, o, 0e-elope, in 6in0 consistin2 of a pe,centa2e of the ,eclaie0

lan0& to 4it

8Section 3". 'inancin2& Const,uction& Maintenance& Ope,ation& an0

Mana2eent of (nf,ast,uctu,e P,o5ects b$ the P,i-ate Secto,. @ @ @

@ @ @

(n case of lan0 ,eclaation o, const,uction of in0ust,ial estates& the

,epa$ent plan a$ consist of the 2,ant of a po,tion o, pe,centa2e of the

,eclaie0 lan0 o, the in0ust,ial estate const,ucte0.8

Althou2h Section 3" of the ocal Go-e,nent Co0e 0oes not contain a

p,o-iso siila, to that of the BOT a4& the constitutional ,est,ictions on lan0

o4ne,ship autoaticall$ appl$ e-en thou2h not e@p,essl$ entione0 in the

ocal Go-e,nent Co0e.

Thus& un0e, eithe, the BOT a4 o, the ocal Go-e,nent Co0e& the

cont,acto, o, 0e-elope,& if a co,po,ate entit$& can onl$ be pai0 4ith leasehol0s

on po,tions of the ,eclaie0 lan0. (f the cont,acto, o, 0e-elope, is an

in0i-i0ual& po,tions of the ,eclaie0 lan0& not e@cee0in2 1 hecta,es%Hof non;

a2,icultu,al lan0s& a$ be con-e$e0 to hi in o4ne,ship in -ie4 of the

le2islati-e autho,it$ allo4in2 such con-e$ance. This is the onl$ 4a$ these

p,o-isions of the BOT a4 an0 the ocal Go-e,nent Co0e can a-oi0 a

0i,ect collision 4ith Section 3& A,ticle K(( of the 1%>< Constitution.

Registration of lands of the public domain

'inall$& PEA theo,iFes that the 8act of con-e$in2 the o4ne,ship of the

,eclaie0 lan0s to public ,espon0ent PEA t,ansfo,e0 such lan0s of the

public 0oain to p,i-ate lan0s.8 This theo,$ is echoe0 b$ AMAR( 4hich

aintains that the 8issuance of the special patent lea0in2 to the e-entual

issuance of title ta6es the sub5ect lan0 a4a$ f,o the lan0 of public 0oain

an0 con-e,ts the p,ope,t$ into pat,ionial o, p,i-ate p,ope,t$.8 (n sho,t& PEA

an0 AMAR( conten0 that 4ith the issuance of Special Patent No. 3!1< an0

the co,,espon0in2 ce,tificates of titles& the 1!= hecta,es cop,isin2 the

',ee0o (slan0s ha-e becoe p,i-ate lan0s of PEA. (n suppo,t of thei,theo,$& PEA an0 AMAR( cite the follo4in2 ,ulin2s of the Cou,t

1. 'umail *. Judge of %)I of %otabato&%4he,e the Cou,t 0ecla,e0 ;

8Afte, the ,e2ist,ation an0 issuance of the ce,tificate an0 0uplicate ce,tificate

of title base0 on a public lan0 patent& the lan0 co-e,e0 the,eb$ autoaticall$


26/36


27/36

Thus& the p,o-isions of CA No. 1=1 appl$ to the ',ee0o (slan0s on atte,s

not co-e,e0 b$ P No. 1">=. Section H" of CA No. 1=1 p,ohibits& 8e@cept

4hen autho,iFe0 b$ Con2,ess&8 the sale of alienable lan0s of the public

0oain that a,e t,ansfe,,e0 to 2o-e,nent units o, entities. Section H" of CA

No. 1=1 constitutes& un0e, Section == of P No. 1!%& a 8statuto,$ lien

affectin2 title8 of the ,e2iste,e0 lan0 e-en if not annotate0 on the ce,tificate of

title.

1"=

Alienable lan0s of the public 0oain hel0 b$ 2o-e,nent entities un0e,Section H" of CA No. 1=1 ,eain public lan0s because the$ cannot be

alienate0 o, encube,e0 unless Con2,ess passes a la4 autho,iFin2 thei,

0isposition. Con2,ess& ho4e-e,& cannot autho,iFe the sale to p,i-ate

co,po,ations of ,eclaie0 alienable lan0s of the public 0oain because of

the constitutional ban. Onl$ in0i-i0uals can benefit f,o such la4.

The 2,ant of le2islati-e autho,it$ to sell public lan0s in acco,0ance 4ith

Section H" of CA No. 1=1 0oes not autoaticall$ con-e,t alienable lan0s of

the public 0oain into p,i-ate o, pat,ionial lan0s. The alienable lan0s of the

public 0oain ust be t,ansfe,,e0 to ?ualifie0 p,i-ate pa,ties& o, to

2o-e,nent entities not tas6e0 to 0ispose of public lan0s& befo,e these lan0scan becoe p,i-ate o, pat,ionial lan0s. Othe,4ise& the constitutional ban

4ill becoe illuso,$ if Con2,ess can 0ecla,e lan0s of the public 0oain as

p,i-ate o, pat,ionial lan0s in the han0s of a 2o-e,nent a2enc$ tas6e0 to

0ispose of public lan0s. This 4ill allo4 p,i-ate co,po,ations to ac?ui,e 0i,ectl$

f,o 2o-e,nent a2encies liitless a,eas of lan0s 4hich& p,io, to such la4&

a,e conce0e0l$ public lan0s.

Un0e, EO No. !!& PEA becae the central implementing agencyof the

National Go-e,nent to ,eclai fo,esho,e an0 sube,2e0 a,eas of the

public 0oain. Thus& EO No. !! 0ecla,es that

8EKECUT(*E ORER NO. !!

esi2natin2 the Public Estates Autho,it$ as the A2enc$ P,ia,il$

Responsible fo, all Reclaation P,o5ects

he,eas& the,e a,e se-e,al ,eclaation p,o5ects 4hich a,e on2oin2 o, bein2

p,opose0 to be un0e,ta6en in -a,ious pa,ts of the count,$ 4hich nee0 to be

e-aluate0 fo, consistenc$ 4ith national p,o2,asI

he,eas& the,e is a nee0 to 2i-e fu,the, institutional suppo,t to the

Go-e,nent:s 0ecla,e0 polic$ to p,o-i0e fo, a coo,0inate0& econoical an0efficient ,eclaation of lan0sI

he,eas& P,esi0ential ec,ee No. 3;A ,e?ui,es that all ,eclaation of a,eas

shall be liite0 to the National Go-e,nent o, an$ pe,son autho,iFe0 b$ it

un0e, p,ope, cont,actI

#hereas6 a central authority is needed to act on behalf of the (ational

4o*ernment which shall ensure a coordinated and integrated approach in

the reclamation of lands

#hereas6 Presidential Decree (o. ;E>@ creates the Public 2states Authority

as a go*ernment corporation to undertaFe reclamation of lands and ensure

their ma1imum utili3ation in promoting public welfare and interestsI an0

he,eas& P,esi0ential ec,ee No. 1=1H p,o-i0es the P,esi0ent 4ith

continuin2 autho,it$ to ,eo,2aniFe the national 2o-e,nent inclu0in2 the

t,ansfe,& abolition& o, e,2e, of functions an0 offices.

NO& T)ERE'ORE& (& 'ER(NAN E. MARCOS& P,esi0ent of the

Philippines& b$ -i,tue of the po4e,s -este0 in e b$ the Constitution an0

pu,suant to P,esi0ential ec,ee No. 1=1H& 0o he,eb$ o,0e, an0 0i,ect thefollo4in2

Section 1. The Public 2states Authority BP2AC shall be primarily responsible

for integrating6 directing6 and coordinating all reclamation pro!ects for and on

behalf of the (ational 4o*ernment. All ,eclaation p,o5ects shall be

app,o-e0 b$ the P,esi0ent upon ,ecoen0ation of the PEA& an0 shall be

un0e,ta6en b$ the PEA o, th,ou2h a p,ope, cont,act e@ecute0 b$ it 4ith an$

pe,son o, entit$I P,o-i0e0& that& ,eclaation p,o5ects of an$ national

2o-e,nent a2enc$ o, entit$ autho,iFe0 un0e, its cha,te, shall be un0e,ta6en

in consultation 4ith the PEA upon app,o-al of the P,esi0ent.

@ @ @ .8

As the cent,al ipleentin2 a2enc$ tas6e0 to un0e,ta6e ,eclaation p,o5ects

nation4i0e& 4ith autho,it$ to sell ,eclaie0 lan0s& PEA too6 the place of

ENR as the 2o-e,nent a2enc$ cha,2e0 4ith leasin2 o, sellin2 ,eclaie0

lan0s of the public 0oain. The ,eclaie0 lan0s bein2 lease0 o, sol0 b$ PEA

a,e not p,i-ate lan0s& in the sae anne, that ENR& 4hen it 0isposes of

othe, alienable lan0s& 0oes not 0ispose of p,i-ate lan0s but alienable lan0s of

the public 0oain. Onl$ 4hen ?ualifie0 p,i-ate pa,ties ac?ui,e these lan0s

4ill the lan0s becoe p,i-ate lan0s. In the hands of the go*ernment agency


28/36

tasFed and authori3ed to dispose of alienable of disposable lands of the

public domain6 these lands are still public6 not pri*ate lands.

'u,the,o,e& PEA:s cha,te, e@p,essl$ states that PEA 8shall hold lands of the

public domain8 as 4ell as 8an$ an0 all 6in0s of lan0s.8 PEA can hol0 both

lan0s of the public 0oain an0 p,i-ate lan0s. Thus& the e,e fact that

alienable lan0s of the public 0oain li6e the ',ee0o (slan0s a,e t,ansfe,,e0

to PEA an0 issue0 lan0 patents o, ce,tificates of title in PEA:s nae 0oes not

autoaticall$ a6e such lan0s p,i-ate.

To allo4 -ast a,eas of ,eclaie0 lan0s of the public 0oain to be t,ansfe,,e0

to PEA as p,i-ate lan0s 4ill sanction a 2,oss -iolation of the constitutional

ban on p,i-ate co,po,ations f,o ac?ui,in2 an$ 6in0 of alienable lan0 of the

public 0oain. PEA 4ill sipl$ tu,n a,oun0& as P2A has now done under the

Amended J7A& an0 t,ansfe, se-e,al hun0,e0s of hecta,es of these ,eclaie0

an0 still to be ,eclaie0 lan0s to a sin2le p,i-ate co,po,ation in onl$ one

t,ansaction. This schee 4ill effecti-el$ nullif$ the constitutional ban in

Section 3& A,ticle K(( of the 1%>< Constitution 4hich 4as inten0e0 to 0iffusee?uitabl$ the o4ne,ship of alienable lan0s of the public 0oain aon2

'ilipinos& no4 nube,in2 o-e, >" illion st,on2.

This schee& if allo4e0& can e-en be applie0 to alienable a2,icultu,al lan0s

of the public 0oain since PEA can 8ac?ui,e @ @ @ an$ an0 all 6in0s of lan0s.8

This 4ill open the f loo02ates to co,po,ations an0 e-en in0i-i0uals ac?ui,in2

hun0,e0s of hecta,es of alienable lan0s of the public 0oain un0e, the 2uise

that in the han0s of PEA these lan0s a,e p,i-ate lan0s. This 4ill ,esult in

co,po,ations aassin2 hu2e lan0hol0in2s ne-e, befo,e seen in this count,$ ;

c,eatin2 the -e,$ e-il that the constitutional ban 4as 0esi2ne0 to p,e-ent.

This 4ill copletel$ ,e-e,se the clea, 0i,ection of constitutional 0e-elopentin this count,$. The 1%3! Constitution allo4e0 p,i-ate co,po,ations to ac?ui,e

not o,e than 1&"= hecta,es of public lan0s.1"!The 1%< Constitution has une?ui-ocall$ ,eite,ate0 this p,ohibition.

The contention of PEA an0 AMAR( that public lan0s& once ,e2iste,e0 un0e,

Act No. =%H o, P No. 1!%& autoaticall$ becoe p,i-ate lan0s is cont,a,$

to e@istin2 la4s. Se-e,al la4s autho,iFe lan0s of the public 0oain to be

,e2iste,e0 un0e, the To,,ens S$ste o, Act No. =%H& no4 P No. 1!%&

4ithout losin2 thei, cha,acte, as public lan0s. Section 1 of Act No. =%H&

an0 Section 1"3 of P No. 1!%& ,especti-el$& p,o-i0e as follo4s

Act No. =%H

8Sec. 1. hene-e, public lan0s in the Philippine (slan0s belon2in2 to the @

@ @ Go-e,nent of the Philippine (slan0s a,e alienate0& 2,ante0& o, con-e$e0

to pe,sons o, thepublic or pri*ate corporations& the sae shall be b,ou2ht

fo,th4ith un0e, the ope,ation of this Act an0 shall becoe ,e2iste,e0 lan0s.8

P No. 1!%

8Sec. 1"3. Ce,tificate of Title to Patents. hene-e, public lan0 is b$ the

Go-e,nent alienate0& 2,ante0 o, con-e$e0 to any person& the sae shall

be b,ou2ht fo,th4ith un0e, the ope,ation of this ec,ee.8 7Ephasis supplie09

Base0 on its le2islati-e histo,$& the ph,ase 8con-e$e0 to an$ pe,son8 in

Section 1"3 of P No. 1!% inclu0es con-e$ances of public lan0s to public

co,po,ations.

Alienable lan0s of the public 0oain 82,ante0& 0onate0& o, t,ansfe,,e0 to a

p,o-ince& unicipalit$& o, b,anch o, sub0i-ision of the Go-e,nent&8 asp,o-i0e0 in Section H" of CA No. 1=1& a$ be ,e2iste,e0 un0e, the To,,ens

S$ste pu,suant to Section 1"3 of P No. 1!%. Such ,e2ist,ation& ho4e-e,&

is e@p,essl$ sub5ect to the con0ition in Section H" of CA No. 1=1 that the lan0

8shall not be alienate0& encube,e0 o, othe,4ise 0ispose0 of in a manner

affecting its title6 e1cept when authori3ed by %ongress.8 This p,o-ision ,efe,s

to 2o-e,nent ,eclaie0& fo,esho,e an0 a,sh$ lan0s of the public 0oain

that ha-e been title0 but still cannot be alienate0 o, encube,e0 unless

e@p,essl$ autho,iFe0 b$ Con2,ess. The nee0 fo, le2islati-e autho,it$ p,e-ents

the ,e2iste,e0 lan0 of the public 0oain f,o becoin2 p,i-ate lan0 that can

be 0ispose0 of to ?ualifie0 p,i-ate pa,ties.

The Re-ise0 A0inist,ati-e Co0e of 1%>< also ,eco2niFes that lan0s of the

public 0oain a$ be ,e2iste,e0 un0e, the To,,ens S$ste. Section =>&

Chapte, 1& Boo6 ( of the Co0e states

8Sec. =>. Official Autho,iFe0 to Con-e$ Real P,ope,t$. hene-e, ,eal

p,ope,t$ of the Go-e,nent is autho,iFe0 b$ la4 to be con-e$e0& the 0ee0 of

con-e$ance shall be e@ecute0 in behalf of the 2o-e,nent b$ the follo4in2

719 @ @ @


29/36

79 )or property belonging to the Republic of the Philippines6 but titled in the

name of any political subdi*ision or of any corporate agency or

instrumentality& b$ the e@ecuti-e hea0 of the a2enc$ o, inst,uentalit$.8

7Ephasis supplie09

Thus& p,i-ate p,ope,t$ pu,chase0 b$ the National Go-e,nent fo, e@pansion

of a public 4ha,f a$ be title0 in the nae of a 2o-e,nent co,po,ation

,e2ulatin2 po,t ope,ations in the count,$. P,i-ate p,ope,t$ pu,chase0 b$ the

National Go-e,nent fo, e@pansion of an ai,po,t a$ also be title0 in the

nae of the 2o-e,nent a2enc$ tas6e0 to a0iniste, the ai,po,t. P,i-ate

p,ope,t$ 0onate0 to a unicipalit$ fo, use as a to4n plaFa o, public school

site a$ li6e4ise be title0 in the nae of the unicipalit$.1"HAll these

p,ope,ties becoe p,ope,ties of the public 0oain& an0 if al,ea0$ ,e2iste,e0

un0e, Act No. =%H o, P No. 1!%& ,eain ,e2iste,e0 lan0. The,e is no

,e?ui,eent o, p,o-ision in an$ e@istin2 la4 fo, the 0e;,e2ist,ation of lan0

f,o the To,,ens S$ste.

P,i-ate lan0s ta6en b$ the Go-e,nent fo, public use un0e, its po4e, ofeinent 0oain becoe un?uestionabl$ pa,t of the public 0oain.

Ne-e,theless& Section >! of P No. 1!% autho,iFes the Re2iste, of ee0s to

issue in the nae of the National Go-e,nent ne4 ce,tificates of title

co-e,in2 such e@p,op,iate0 lan0s. Section >! of P No. 1!% states

8Sec. >!. an0 ta6en b$ einent 0oain. hene-e, an$ ,e2iste,e0 lan0& o,

inte,est the,ein& is e@p,op,iate0 o, ta6en b$ einent 0oain& the National

Go-e,nent& p,o-ince& cit$ o, unicipalit$& o, an$ othe, a2enc$ o,

inst,uentalit$ e@e,cisin2 such ,i2ht shall file fo, ,e2ist,ation in the p,ope,

Re2ist,$ a ce,tifie0 cop$ of the 5u02ent 4hich shall state 0efinitel$ b$ an

a0e?uate 0esc,iption& the pa,ticula, p,ope,t$ o, inte,est e@p,op,iate0& thenube, of the ce,tificate of title& an0 the natu,e of the public use. A

eo,an0u of the ,i2ht o, inte,est ta6en shall be a0e on each ce,tificate

of title b$ the Re2iste, of ee0s& an0 4he,e the fee siple is ta6en& a new

certificate shall be issued in fa*or of the (ational 4o*ernment6 pro*ince6 city6

municipality& o, an$ othe, a2enc$ o, inst,uentalit$ e@e,cisin2 such ,i2ht fo,

the lan0 so ta6en. The le2al e@penses inci0ent to the eo,an0u of

,e2ist,ation o, issuance of a ne4 ce,tificate of title shall be fo, the account of

the autho,it$ ta6in2 the lan0 o, inte,est the,ein.8 7Ephasis supplie09

Conse?uentl$& lan0s ,e2iste,e0 un0e, Act No. =%H o, P No. 1!% a,e not

e@clusi-el$ p,i-ate o, pat,ionial lan0s. an0s of the public 0oain a$ also

be ,e2iste,e0 pu,suant to e@istin2 la4s.

AMAR( a6es a pa,tin2 shot that the Aen0e0 #*A is not a sale to AMAR( of

the ',ee0o (slan0s o, of the lan0s to be ,eclaie0 f,o sube,2e0 a,eas

of Manila Ba$. (n the 4o,0s of AMAR(& the Aen0e0 #*A 8is not a sale but a

5oint -entu,e 4ith a stipulation fo, ,eibu,seent of the o,i2inal cost incu,,e0

b$ PEA fo, the ea,lie, ,eclaation an0 const,uction 4o,6s pe,fo,e0 b$ the

CCP un0e, its 1%the Go-e,nent Au0itin2 Co0e&1"%an0 Section 3& A,ticle K(( of the

1%>< Constitution.

The Re2alian 0oct,ine is 0eepl$ iplante0 in ou, le2al s$ste. 'o,esho,e

an0 sube,2e0 a,eas fo, pa,t of the public 0oain an0 a,e inalienable.

an0s ,eclaie0 f,o fo,esho,e an0 sube,2e0 a,eas also fo, pa,t of the

public 0oain an0 a,e also inalienable& unless con-e,te0 pu,suant to la4 into

alienable o, 0isposable lan0s of the public 0oain. )isto,icall$& lan0s

,eclaie0 b$ the 2o-e,nent a,e sui generis& not a-ailable fo, sale to p,i-atepa,ties unli6e othe, alienable public lan0s. Reclaie0 lan0s ,etain thei,

inhe,ent potential as a,eas fo, public use o, public se,-ice. Alienable lan0s of

the public 0oain& inc,easin2l$ becoin2 sca,ce natu,al ,esou,ces& a,e to be

0ist,ibute0 e?uitabl$ aon2 ou, e-e,;2,o4in2 population. To insu,e such

e?uitable 0ist,ibution& the 1%< Constitutions ha-e ba,,e0 p,i-ate

co,po,ations f,o ac?ui,in2 an$ 6in0 of alienable lan0 of the public 0oain.

Those 4ho attept to 0ispose of inalienable natu,al ,esou,ces of the State&

o, see6 to ci,cu-ent the constitutional ban on alienation of lan0s of the

public 0oain to p,i-ate co,po,ations& 0o so at thei, o4n ,is6.

e can no4 sua,iFe ou, conclusions as follo4s


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1. The 1!= hecta,es of ,eclaie0 lan0s cop,isin2 the ',ee0o (slan0s&

no4 co-e,e0 b$ ce,tificates of title in the nae of PEA& a,e alienable lands of

the public domain. PEA a$ lease these lan0s to p,i-ate co,po,ations but

a$ not sell o, t,ansfe, o4ne,ship of these lan0s to p,i-ate co,po,ations. PEA

a$ onl$ sell these lan0s to Philippine citiFens& sub5ect to the o4ne,ship

liitations in the 1%>< Constitution an0 e@istin2 la4s.

. The !%.1! hecta,es of sube,2e0 a,eas of Manila Ba$ ,eain inalienable

natu,al ,esou,ces of the public 0oain until classifie0 as alienable o,

0isposable lan0s open to 0isposition an0 0ecla,e0 no lon2e, nee0e0 fo,

public se,-ice. The 2o-e,nent can a6e such classification an0 0ecla,ation

onl$ afte, PEA has ,eclaie0 these sube,2e0 a,eas. Onl$ then can these

lan0s ?ualif$ as a2,icultu,al lan0s of the public 0oain& 4hich a,e the onl$

natu,al ,esou,ces the 2o-e,nent can alienate. (n thei, p,esent state& the

!%.1! hecta,es of sube,2e0 a,eas are inalienable and outside the

commerce of man.

3. Since the Aen0e0 #*A see6s to t,ansfe, to AMAR(& a p,i-ate co,po,ation&o4ne,ship of < Constitution 4hich

p,ohibits the alienation of natu,al ,esou,ces othe, than a2,icultu,al lan0s of

the public 0oain. PEA a$ ,eclai these sube,2e0 a,eas. The,eafte,& the

2o-e,nent can classif$ the ,eclaie0 lan0s as alienable o, 0isposable& an0fu,the, 0ecla,e the no lon2e, nee0e0 fo, public se,-ice. Still& the t,ansfe, of

such ,eclaie0 alienable lan0s of the public 0oain to AMAR( 4ill be -oi0 in

-ie4 of Section 3& A,ticle K(( of the 1%>< Constitution 4hich p,ohibits p,i-ate

co,po,ations f,o ac?ui,in2 an$ 6in0 of alienable lan0 of the public 0oain.

Clea,l$& the Aen0e0 #*A -iolates 2la,in2l$ Sections an0 3& A,ticle K(( of

the 1%>< Constitution. Un0e, A,ticle 1="%11of the Ci-il Co0e& cont,acts

4hose 8ob5ect o, pu,pose is cont,a,$ to la4&8 o, 4hose 8ob5ect is outsi0e the

coe,ce of en&8 a,e 8 ine@istent an0 -oi0 f,o the be2innin2.8 The Cou,t

ust pe,fo, its 0ut$ to 0efen0 an0 uphol0 the Constitution& an0 the,efo,e

0ecla,es the Aen0e0 J7A null and *oid ab initio.

'e*enth issue: whether the %ourt is the proper forum to raise the issue of

whether the Amended J7A is grossly disad*antageous to the go*ernment.

Consi0e,in2 that the Aen0e0 #*A is null an0 -oi0 ab initio& the,e is no

necessit$ to ,ule on this last issue. Besi0es& the Cou,t is not a t,ie, of facts&

an0 this last issue in-ol-es a 0ete,ination of factual atte,s.

)ERE'ORE& the petition is GRANTE. The Public Estates Autho,it$ an0Aa,i Coastal Ba$ e-elopent Co,po,ation a,e PERMANENT/

EN#O(NE f,o ipleentin2 the Aen0e0 #oint *entu,e A2,eeent 4hich

is he,eb$ 0ecla,e0 NU an0 *O( ab initio.

SO ORERE.

Da*ide6 Jr.6 %.J.6 /ellosillo6 Puno6 7itug6 Kapunan6 "endo3a6 Panganiban6

Luisumbing6 9nares0'antiago6 'ando*al04utierre36 Austria0"artine36 and

%orona6 JJ.6concu,.

'ootnote

1Section = of P No. 1">=.

PEA:s Meo,an0u 0ate0 Au2ust =& 1%%%& p. 3.

3PEA:s Meo,an0u& sup,a note at %;%H& a0-ise0 PEA that PEA coul0

ne2otiate the sale of the 1!=;hecta,e ',ee0o (slan0s in -ie4 of the

failu,e of the public bi00in2 hel0 on ecebe, 1"& 1%%1 4he,e the,e 4as not

a sin2le bi00e,. See also Senate Coittee Repo,t No. !H"& p. 1.

!PEA:s Meo,an0u& sup,a note at %.

HIbid.


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p,ope,t$ is to be sol0. In the e*ent that the public auction fails6 the property

may be sold at a pri*ate sale at such price as may be fi1ed by the same

committee or body concerned and appro*ed by the %ommission.8

'eenote .

%Section 1& A,ticle K( of the 1%>< Constitution states as follo4s 8Public

office is a public t,ust. Public office,s an0 eplo$ees ust at all ties be

accountable to the people& se,-e the 4ith utost ,esponsibilit$& inte2,it$&

lo$alt$& an0 efficienc$& act 4ith pat,iotis an0 5ustice& an0 lea0 o0est li-es.8

3"1>"" 7Safe2ua,0

Measu,es Act9 p,ohibits the ,elease to the public of confi0ential info,ation

subitte0 in e-i0ence to the Ta,iff Coission. Section 3 7n9 of R.A. No.

>!"= 7Philippine A(S P,e-ention an0 Cont,ol Act9 classifies as confi0entialthe e0ical ,eco,0s of )(* patients. Section H 759 of R.A. No. >"=3 7(nte,;

Count,$ A0option Act9 classifies as confi0ential the ,eco,0s of the a0opte0

chil0& a0optin2 pa,ents& an0 natu,al pa,ents. Section %= 7f9 of R.A. No.


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19.

=HAct No. %H& enacte0 on Octobe, Title (( of Act No. >>9 states& 8No ,eclassification of

fo,est o, ine,al lan0s to a2,icultu,al lan0s shall be un0e,ta6en afte, the

app,o-al of this Act until Con2,ess& ta6in2 into account ecolo2ical&

0e-elopental an0 e?uit$ consi0e,ations& shall ha-e 0eliite0 b$ la4& the

specific liits of the public 0oain.8

!=Co-e,in2 Sections !> to H> of CA No. 1=1.

!!%% SCRA 1%% 71%%>9.

!HSection 1& A,ticle K((( of the 1%3! Constitution liite0 the 0isposition an0

utiliFation of public a2,icultu,al lan0s to Philippine citiFens o, to co,po,ations

at least si@t$ pe,cent o4ne0 b$ Philippine citiFens. This 4as& ho4e-e,&

sub5ect to the o,i2inal O,0inance appen0e0 to the 1%3! Constitution statin2&

aon2 othe,s& that until the 4ith0,a4al of Unite0 States so-e,ei2nt$ in the

Philippines& 8CitiFens an0 co,po,ations of the Unite0 States shall en5o$ in the

Coon4ealth of the Philippines all the ci-il ,i2hts of the citiFens an0

co,po,ations& ,especti-el$& the,eof.8

!


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%ommerce& shall f,o tie to tie 0ecla,e 4hat lan0s a,e open to 0isposition

o, concession un0e, this Act.8

>3On 8an0s fo, Resi0ential& Coe,cial& o, (n0ust,ial an0 othe, Siila,

Pu,poses.8

>=RA No. %3& enacte0 on #une 1H& 1%=>& autho,iFe0 the sale of a,sh$

lan0s un0e, ce,tain con0itions. Section 1 of RA No. %3 p,o-i0e0 as follo4s8The p,o-isions of section si@t$;one of Coon4ealth Act Nube,e0 One

hun0,e0 an0 fo,t$;one to the cont,a,$ not4ithstan0in2& a,sh$ lan0s an0

lan0s un0e, 4ate, bo,0e,in2 on sho,es o, ban6s o, na-i2able la6es o, ,i-e,s

4hich a,e co-e,e0 b$ subsistin2 leases o, leases 4hich a$ he,eafte, be

0ul$ 2,ante0 un0e, the p,o-isions of the sai0 Act an0 a,e al,ea0$ ip,o-e0

an0 ha-e been utiliFe0 fo, fa,in2& fishpon0& o, siila, pu,poses fo, at least

fi-e $ea,s f,o the 0ate of the cont,act of lease& a$ be sol0 to the lessees

the,eof un0e, the p,o-isions of Chapte, 'i-e of the sai0 Act as soon as the

P,esi0ent& upon ,ecoen0ation of the Sec,eta,$ of A2,icultu,e an0 Natu,al

Resou,ces& shall 0ecla,e that the sae a,e not necessa,$ fo, the public

se,-ice.8

>!PEA:s Meo,an0u& see note at =!.

>H'eenote 1.

%"hile PEA clais the,e 4as a failu,e of public bi00in2 on ecebe, 1"&

1%%1& the,e is no sho4in2 that the Coission on Au0it app,o-e0 the p,ice

o, consi0e,ation stipulate0 in the ne2otiate0 Aen0e0 #*A as ,e?ui,e0 b$

Section


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Section 1"3 of P No. 1!%& Section == applies to ce,tificates of title issue0

pu,suant to a lan0 patent 2,ante0 b$ the 2o-e,nent.

1"!Section & A,ticle K((( of the 1%3! Constitution.

1"H)a,t$ -. Municipalit$ of *icto,ia& 13 Phil. 1! 71%"%9.

1"H spea6s of 82ui0elines 74hich9 shall 2o-e,n the2ene,al p,oce0u,es on thedi*estment or disposal of assets of go*ernment0

owned andor controlled corporationsan0 thei, subsi0ia,ies.8 i6e4ise& COA

Au0it Ci,cula, No. >%;%H 0ate0 #anua,$

Chavez vs Pea (Natres)

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