THIRD DIVISION
JAIME
SANCHEZ, JR., Petitioner, - versus - ZENAIDA F.
MARIN, JESUS NICASIO F. MARIN, JOSE DAVID F. MARIN, MARIA BERNADETTE F.
MARIN, PAUL PETER F. MARIN and PHILIP LUIS F. MARIN, Respondents. |
|
G.R. No.
171346 Present: YNARES-SANTIAGO, J., Chairperson,
AUSTRIA-MARTINEZ,
CHICO-NAZARIO, NACHURA, and
REYES, JJ. Promulgated: |
x-
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x
CHICO-NAZARIO,
J.:
This is a
Petition for Review on Certiorari
under Rule 45 of the 1997 Revised Rules of Civil Procedure seeking to reverse
and set aside (1) the Decision[1]
of the Court of Appeals in CA-G.R. SP No. 61955, dated 23 May 2005, which
granted in part the petition filed before it by herein respondents and thereby
annulled and set aside the Decision[2]
rendered by the Department of Agrarian Reform Adjudication Board (DARAB) dated
25 September 2000 in DARAB Cases No. 3799 (Reg. Case No. IV-QI-0175-91) and No.
3800 (Reg. Case No. IV-QI-0167-91); and (2) the Resolution[3]
of the appellate court, dated
Herein
petitioner Jaime Sanchez, Jr. is an agricultural tenant of a 10-hectare
fishpond sited at Barangay Talao-Talao,
The
controversy in this case arose from the following facts:
In 1977,
the petitioner was instituted as a tenant of the subject fishpond by its
previous registered owner David Felix.
The sharing agreement was on a 50/50 basis after deducting the expenses
from the gross harvest. A few years
thereafter, David Felix sold and transferred ownership of the subject fishpond
to respondents Jesus Nicasio, Jose David, Maria Bernadette, Paul Peter and
Philip Luis, all surnamed Marin, to whom a Transfer Certificate of Title (TCT)
No. T-43289,[5]
covering the subject fishpond, was issued.
The aforesaid respondents, as the new owners of the fishpond, entered
into a civil law lease agreement dated
Subsequently,
Zenaida F. Marin, as a lessee of the subject fishpond, made an arrangement with
the petitioner wherein the latter would receive a regular salary and a 20%
share in the net profit of the fishpond from January 1985 to June 1986. The reason why the agreement was with a
period was to be consistent with the lease agreement entered into between respondent
Zenaida F. Marin and her children, herein respondents Jesus Nicasio, Jose
David, Maria Bernadette, Paul Peter and Philip Luis, all surnamed Marin.[6] However, after the expiration of the first
lease agreement between respondent Zenaida F. Marin and her children, and
before a new lease agreement could be made, the petitioner was ordered by
Zenaida F. Marin to
vacate the premises but he refused to do so.
He asserted that he was a tenant of the fishpond and not a mere
contractual worker; hence, he had the right to its peaceful possession and
security of tenure.
On
WHEREFORE, judgment is hereby rendered declaring the [herein petitioner] as the agricultural tenant, not a hired contractual worker on the [subject fishpond], and therefore, entitled to the security of tenure under Section 7[8] of Republic Act No. 1199[9] and to continue possession of the premises and shall enjoy the rights and privileges accorded by law.[10] (Emphasis supplied.)
Dissatisfied,
the aforesaid Decision was appealed by respondent Zenaida F. Marin to the appellate court, in which it was
docketed as CA-G.R. SP (CAR) No. 14421.
In a Decision[11]
dated
Having been
declared as an agricultural tenant on the subject fishpond, the petitioner, on P30,000.00
per annum, docketed as DARAB Case No. IV-QI-0175-91. It was alleged therein by the petitioner that
under Section 12 of Republic Act No. 6657[12]
and Department of Agrarian Reform (DAR) Administrative Order No. 4, Series of
1989, he had the option to convert his status as share-crop tenant into an
agricultural lessee by paying a fixed lease rental on the fishpond. He further claimed that the respondents
posited no objection to the amount of P30,000.00 as a yearly lease
rental. Yet, in an Answer filed by the
respondents, they insisted that fishponds, like the subject matter of this
case, were not yet within the purview of the law on leasehold. They likewise refuted the fact that they
agreed to fix the lease rental at P30,000.00 per annum. Although they admitted that the petitioner
was indeed declared as an agricultural tenant of the fishpond, they, however,
argued that the petitioner should already be ejected therefrom for his failure
to pay the rent.
Thus, on P650,000.00 representing the lease rentals from
The
petitioner denied having any liability to respondent Zenaida F. Marin in the
amount of P650,000.00 as rental arrears.
He stressed that he failed to pay the lease rentals from July 1987 to
July 1989 because he failed to harvest anything from the fishpond during the
said period due to respondent Zenaida F. Marin’s refusal to defray the expenses
of production. Accordingly, he cannot be
evicted on the basis of non-payment of rent because his obligation to pay the
same merely depends on the actual harvest made.
Similarly, the petitioner emphasized that from March 1989 to September
1990, he deposited the rent due respondent Zenaida F. Marin in Philippine
National Bank (PNB) Account No. 66375[13]
under the name of the Deputy Sheriff of the RTC of Lucena City, Branch 53, and
respondent Zenaida F. Marin withdrew the said amount.
Considering
that the two cases involved the same parties and the same subject matter, the
Provincial Adjudicator consolidated the same.
On
WHEREFORE, premises considered, judgment is hereby rendered:
x x x x
3. Ordering that [petitioner] be maintained in the peaceful possession of subject farm-holding.[15]
Respondents moved for the
reconsideration of the aforementioned Decision but the same was denied in a
Joint Order,[16]
dated
Aggrieved, respondents appealed the
PARAD Decision dated
On
Still
refusing to admit defeat, respondents filed with the Court of Appeals a
Petition for Review of the aforesaid DARAB Decision maintaining that the DARAB
grossly erred in not finding that substantial evidence exists to warrant the
dispossession of the petitioner from the subject fishpond.
On
Petitioner
moved for the reconsideration of the aforesaid Decision, but it was denied in a
Resolution dated
Hence, this
Petition.
Petitioner
presents the following issues for this Court’s resolution:
I.
Whether the
burden of proof to show that a fishpond is not an agricultural land rests on
the agricultural lessor.
II.
Whether this
burden was sufficiently discharged by the respondents.
III.
Whether the
Office of the Secretary of the Department of Agrarian Reform should first
determine the exclusion of a fishpond from the coverage of CARP before it could
be finally said that it is indeed excluded therefrom.
IV.
Whether the
subject fishpond is covered by the [CARL].
V.
Assuming
that the fishpond is not covered by the CARL, whether the [DARAB] has
jurisdiction over the case.
Petitioner
maintains his contention that Section 10 of Republic Act No. 6657, as amended
by Republic Act No. 7881, which was the basis of the appellate court in
declaring that the subject fishpond was not an agricultural land, does not
mention any presumption as regards the exemption of prawn farms and fishponds
from the coverage of the CARL. According
to him, before a fishpond can be considered exempted from the coverage of
Republic Act No. 6657, two things must concur, to wit: (1) the fishpond has not
been distributed; and (2) a CLOA has been issued to the agrarian reform
beneficiaries under the CARP. And the
burden of proof to establish the existence of the aforesaid elements falls upon
the agricultural lessor. Absent any of
these two elements, the fishpond will remain within the coverage of Republic
Act No. 6657. He also argues that
Section 10 of Republic Act No. 6657, as amended by Republic Act No. 7881,
cannot be given retroactive effect. Neither
can it prevail over a right which has already been vested in him by virtue of
the final and executory Decision dated 11 September 1989 of the Court of Appeals,
affirming the Decision dated 20 July 1987 of the Lucena City RTC, which
declared him as an agricultural tenant of the subject fishpond and therefore
entitled to security of tenure.
Similarly, petitioner contends that respondents’ unsubstantiated claim
that no CLOA had been issued to him was not enough to discharge their burden of
proving that the subject fishpond was already exempted from the coverage of the
CARL.
Petitioner
further avers that although Section 10 of Republic Act No. 6657 already
provides that prawn farms and fishponds are exempted from the coverage of the
CARL, the said provision of law still has to be construed in relation to
Section 3, Rule II of the 2003 DARAB Rules of Procedure, which requires an
application for exemption to be filed before the Office of the Secretary of the
DAR to determine if prawn farms and fishponds are indeed excluded from the
coverage of the CARL. And considering
that the respondents failed to file the said application for exemption,
petitioner then alleges that the subject fishpond cannot be considered excluded
from the coverage of the CARL.
Finally,
petitioner argues that granting arguendo that
the subject fishpond was excluded from the coverage of the CARL, still, the
DARAB had jurisdiction over his case.
Petitioner asserts that his status as an agricultural tenant of the
subject fishpond has long been settled.
And being a tenant, he has various rights which are recognized and
protected under the law, among which is his right to security of tenure. Thus, when the respondents filed a Complaint
before DARAB Region IV to eject him from the fishpond, in violation of his
rights, it cannot be denied that an agrarian dispute arose between him and the
respondents and the same properly fell within the jurisdiction of the
DARAB. And so, even though the fishpond
was excluded from the coverage of the CARL, the petitioner asserts that it does
not necessarily follow that no tenancy relation existed between him and the respondents
and it cannot be used as basis to deprive the DARAB of its jurisdiction over
the present case.
In sum, the
issues in this case may be summarized as follows:
I. Whether the subject fishpond is exempted/excluded from the coverage of the Comprehensive Agrarian Reform Program of the government by virtue of the amendments introduced by R.A. No. 7881 to R.A. No. 6657.
II. Granting that the subject fishpond is exempted/excluded from the coverage of the CARL, whether the DARAB has jurisdiction over the case.
The
Petition is meritorious.
The Court
of Appeals grounded its Decision on this Court’s pronouncements in Romero v. Tan.[18] In the said case, this Court traced the
classification of fishponds for agrarian reform purposes. Section 166(1) of Republic Act No. 3844[19]
defined an agricultural land as land devoted to any growth, including but not
limited to crop lands, salt beds, fish
ponds, idle land and abandoned land.
Thus, it is beyond cavil that under this law, fishponds were considered agricultural
lands. Even when Republic Act No. 6657
entitled, “Comprehensive Agrarian Reform Law of 1988,” took effect on
Section 10 of Republic Act No. 6657,
as amended by Republic Act No. 7881, explicitly provides:
SEC. 10. Exemptions and Exclusions. –
x x x x.
b) Private lands actually, directly and exclusively used for prawn farms and fishponds shall be exempt from the coverage of this Act: Provided, That said prawn farms and fishponds have not been distributed and Certificate of Land Ownership Award (CLOA) issued to agrarian reform beneficiaries under the Comprehensive Agrarian Reform Program.
In cases where the fishponds or prawn farms have been subjected to the Comprehensive Agrarian Reform Law, by voluntary offer to sell, or commercial farms deferment or notices of compulsory acquisition, a simple and absolute majority of the actual regular workers or tenants must consent to the exemption within one (1) year from the effectivity of this Act. When the workers or tenants do not agree to this exemption, the fishponds or prawn farms shall be distributed collectively to the workers-beneficiaries or tenants who shall form a cooperative or association to manage the same
In cases where the fishponds or prawn farms have not been subjected to the Comprehensive Agrarian Reform Law, the consent of the farm workers shall no longer be necessary; however, the provision of Section 32-A hereof on incentives shall apply. (Emphasis supplied.)
From the
afore-quoted provision, it is crystal clear that fishponds are excluded/exempted
from the coverage of the CARL. This Court
affirmed such exemption/exclusion in Atlas
Fertilizer Corp. v. Secretary, Department of Agrarian Reform.[21] In view of the foregoing, it is beyond doubt
that the subject fishpond is indeed now exempted/excluded from the coverage of
the CARL. Thus, the contention of the
petitioner that the subject fishpond cannot be exempted/excluded from CARL
coverage because respondents failed to prove that the fishpond has not yet been
distributed and a CLOA has been issued to the beneficiary of the agrarian
reform, as required by Section 10 of Republic Act No. 6657, as amended by
Republic Act No. 7881, is now unavailing.
Moreover, this Court notes that the DARAB already made a finding in its
Decision that no CLOA had been issued to the petitioner as a beneficiary of the
fishpond. Neither was the fishpond
voluntarily offered for sale to the petitioner.
Section 54 of Republic Act No. 6657, as amended, expressly states that
the findings of fact of the DARAB shall be final and conclusive if based on
substantial evidence. Since the issue as
to whether a CLOA has been issued to the petitioner is a question of fact, and
being convinced that the findings of the DARAB on such issue was not based on
mere surmises or conjectures, this Court upholds the same. Similarly, in this case, the character of the land was
never put in issue as it has long been settled that the 10-hectare lot was
indeed used actually, directly and exclusively as fishponds. Hence, it is not necessary for the
respondents to file an application for the exemption of the subject fishpond
from the coverage of the CARL, contrary to the claim of the petitioner.
Even
as we recognize that the fishpond is not covered by the CARL, pursuant to
Section 10 of Republic Act No. 6657, as amended by Republic Act No. 7881, this
Court, nonetheless, does not agree in the conclusion arrived at by the Court of
Appeals that since the subject fishpond is no longer an agricultural land, it
follows then that there can be no tenurial arrangement affecting the parties in
this case. And in view of the fact that
there is no agrarian dispute cognizable by the DARAB, then the DARAB had no
jurisdiction to resolve petitioner’s case.
It
bears emphasis that the status of the petitioner as a tenant in the subject
fishpond and his right to security of tenure were already previously settled in
the Decision dated
Verily,
DAR Administrative Order No. 3, Series of 1995, expressly respects and
acknowledges the tenancy relationship that existed between the parties prior to
the amendments made to Republic Act No. 6657 by Republic Act No. 7881, that is,
before fishponds and prawn farms were exempted/excluded from the coverage of
the CARL. The aforesaid DAR
Administrative Order provides:
II.
POLICY STATEMENT
D.
Acts of harassment by
landowners intended to eject or remove the workers or tenants or the loss of
their rights, benefits and privileges to which they are entitled shall be
sanctioned and dealt with under existing laws, rules and regulations.
E.
Fishpond or prawn
farmworkers affected by exemption/exclusion have the option to remain as
workers or become beneficiaries in other agricultural lands.
A worker who chooses to remain in
the exempted area shall remain therin and shall be entitled to such rights,
benefits and privileges granted to farmworkers under existing laws, decrees,
and executive orders. (Emphasis supplied.)
Indubitably, despite the amendments to
Section 10 of Republic Act No. 6657, the petitioner’s right to tenancy and
security of tenure over the subject fishpond must still be honored.
This Court likewise affirms that the
DARAB correctly assumed jurisdiction over the case, contrary to the declaration
made by the appellate court in its Decision.
Notably, the present case was instituted as early as 1991 when the
petitioner filed a Petition before the PARAD for the fixing of his lease rental
on the subject fishpond. Respondents
subsequently filed a countercharge against the petitioner for the accounting,
collection of sums of money, and dispossession.
At such point, the law applicable was Republic Act No. 6657, wherein
fishponds and prawn farms were not yet exempted/excluded from the CARL coverage. Evidently, there was an agrarian dispute
existing between the petitioner and the respondents, cognizable by the PARAD at
the time it rendered its Decision on
WHEREFORE,
premises considered, the instant Petition is hereby GRANTED. The Decision and
the Resolution of the Court of Appeals in CA-G.R. SP No. 61955, dated 23 May
2005 and 25 January 2006, respectively, which annulled and set aside the Decision
of the DARAB, dated 25 September 2000, for lack of jurisdiction, are hereby REVERSED AND SET ASIDE. Thus, the said Decision of the DARAB dated
SO ORDERED.
|
MINITA V. CHICO-NAZARIOAssociate Justice |
WE
CONCUR:
CONSUELO YNARES – SANTIAGO
Associate Justice
Chairperson
Associate Justice
Associate Justice
RUBEN T. REYES
Associate
Justice
ATTESTATION
I attest that the conclusions in the above
Decision were reached in consultation before the case was assigned to the
writer of the opinion of the Court’s Division.
CONSUELO
YNARES-SANTIAGO
Associate Justice
Chairperson, Third Division
CERTIFICATION
Pursuant
to Section 13, Article VIII of the Constitution, and the Division Working
Chairperson’s attestation, it is hereby certified that the conclusions in the
above Decision were reached in consultation before the case was assigned to the
writer of the opinion of the Court’s Division.
REYNATO S. PUNO
Chief Justice
[1] Penned by Associate Justice Godardo A. Jacinto with Associate Justices Bienvenido L. Reyes and Rosalinda Asuncion-Vicente, concurring; rollo, pp. 46-58.
[2] Signed by Assistant Secretary Lorenzo R. Reyes as Vice-Chairman, Undersecretary Federico A. Poblete, Assistant Secretary Augusto P. Quijano, Assistant Secretary Edwin C. Sales and Assistant Secretary Wilfredo M. Peñaflor; rollo, pp. 33-44.
[3] Rollo, pp. 72-74.
[4] As per Transfer Certificate of Title No. T-43289; records, Volume II, pp. 205-206.
[5]
[6] CA rollo, pp. 114-115.
[7] Penned by Judge Rodolfo G. Palattao, CA rollo, pp. 110-118.
[8] SEC. 7. Tenancy relationship; How Established; Security of Tenure. – Tenancy relationship may be established either verbally or in writing, expressly or impliedly. Once such relationship is established, the tenant shall be entitled to security of tenure as hereinafter provided (R.A. No. 1199).
[9] Otherwise known as “Agricultural
Tenancy Act of the
[10] CA rollo, p. 118.
[11] Penned by Associate Justice Asaali S. Isnani with Associate Justices Luis A. Javellana and Minerva P. Gonzaga–Reyes, concurring; records Vol. I, pp. 64-70.
[12] Otherwise known as “Comprehensive
Agrarian Reform Law of 1988,” which took effect on
[13] Records Vol. I, pp. 78-79.
[14] Penned by Provincial Adjudicator Claro M. Almogela, CA rollo, pp. 43-50.
[15] CA rollo, pp. 49-50.
[16] Penned by Regional Adjudicator Fe Arche-Manalang; id. at 89-92.
[17] “An Act Amending Certain Provisions
of Republic Act No. 6657, Entitled “An Act Instituting A Comprehensive Agrarian
Reform Program to Promote Social Justice and Industrialization, Providing the
Mechanism for its Implementation, and for Other Purposes,” which was enacted on
20 February 1995.
[18] 468 Phil. 224 (2004).
[19] Otherwise known as “The Agricultural
Land Reform Code,” which was enacted on
[20] Romero v. Tan, supra note 18 at 236.
[21] G.R. No. 93100,
[22] Section 35. Exemption from Leasehold of Other Kinds of Lands. – x x x, in the case of fishponds, x x x at the time of the approval of this Code, the consideration, as well as the tenancy system prevailing, shall be governed by the provisions of Republic Act Numbered Eleven Hundred and Ninety-Nine, as amended (R.A. No. 3844).
[23] Balboa v. Farrales, 51 Phil. 498, 502 (1928).
[24] Sps. Tirona v. Alejo, 419 Phil. 285, 301-302 (2001).
[25] Philrock, Inc. v. Construction Industry Arbitration Commission, 412 Phil. 236, 242-243 (2001).