G.R. No. 149548 – ROXAS & COMPANY, INC., v. DAMBA-NFSW and DEPARTMENT OF AGRARIAN REFORM

 

G.R. No. 167505 – DAMAYAN NG MANGGAGAWANG BUKID SA ASYENDA ROXAS-NATIONAL FEDERATION OF SUGAR WORKERS (DAMBA-NFSW) v. SECRETARY OF THE DEPARTMENT OF AGRARIAN REFORM, ROXAS & COMPANY, INC. and/or ATTY. MARIANO AMPIL

 

G.R. No. 167540 – KATIPUNAN NG MGA MAGBUBUKID SA HACIENDA ROXAS, INC. (KAMAHARI) represented by its PRESIDENT CARLITO CAISIP, and DAMAYAN NG MANGGAGAWANG BUKID SA ASYENDA ROXAS-NATIONAL FEDERATION OF SUGAR WORKERS (DAMBA-NFSW), represented by LAURO MARTIN v. SECRETARY OF THE DEPARTMENT OF AGRARIAN REFORM, ROXAS & COMPANY, INC.

 

G.R. No. 167543DEPARMENT OF LAND REFORM, formerly DEPARMENT OF AGRARIAN REFORM (DAR)  v. ROXAS & COMPANY, INC.

 

G.R. No. 167845 – ROXAS & COMPANY, INC. v. DAMAYAN NG MANGGAGAWANG BUKID SA ASYENDA ROXAS-NATIONAL FEDERATION OF SUGAR WORKERS (DAMBA-NFSW)

 

G.R. No. 169163 – DAMAYAN NG MANGGAGAWANG BUKID SA ASYENDA ROXAS-NATIONAL FEDERATION OF SUGAR WORKERS (DAMBA-NFSW) represented by LAURO V. MARTIN, President v. ROXAS & COMPANY, INC.

 

G.R. No. 179650 –DAMAYAN NG MANGGAGAWANG BUKID SA ASYENDA ROXAS-NATIONAL FEDERATION OF SUGAR WORKERS (DAMBA-NFSW) v. ROXAS & COMPANY, INC.

 

                                                          Promulgated:

                                                          December 4, 2009

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SEPARATE CONCURRING OPINION

 

PUNO, C.J.:

At test is our commitment to a centerpiece of the Constitution: social justice. In the past, we have always struck a blow for agrarian reform and taken the cudgels for farmers in their struggle for a life with dignity. We cannot abandon that stance for that is dictated by the fundamental law of the land.

In G.R. Nos. 167540 and 167543, the issue for resolution is whether Presidential Proclamation No. 1520 excludes the disputed lots from the coverage of Republic Act No. 6657 or the Comprehensive Agrarian Reform Law (CARL), effective on June 15, 1988.

          The CARL implements the command for agrarian reform in Section 4, Article XIII of the Constitution:

SECTION 4.   The State shall, by law, undertake an agrarian reform program founded on the right of farmers and regular farmworkers, who are landless, to own directly or collectively the lands they till or, in the case of other farmworkers, to receive a just share of the fruits thereof. To this end, the State shall encourage and undertake the just distribution of all agricultural lands, subject to such priorities and reasonable retention limits as the Congress may prescribe, taking into account ecological, developmental, or equity considerations, and subject to the payment of just compensation. In determining retention limits, the State shall respect the right of small landowners. The State shall further provide incentives for voluntary land-sharing.

 

The CARL, being a general welfare legislation, embodies the Constitution’s priority and commitment to further social justice.

As an exercise of both police power as it prescribes retention limits for landowners, and of eminent domain as it provides for the compulsory acquisition of private agricultural lands for redistribution, the CARL remains consistent with this commitment.[1] Private rights must “yield to the irresistible demands of the public interest on the time-honored justification… that the welfare of the people is the supreme law.”[2] We have underscored the import of fulfilling the objectives of an agrarian reform program:

The expropriation before us affects all private agricultural lands whenever found and of whatever kind as long as they are in excess of the maximum retention limits allowed their owners. This kind of expropriation is intended for the benefit not only of a particular community or of a small segment of the population but of the entire Filipino nation, from all levels of our society, from the impoverished farmer to the land-glutted owner. Its purpose does not cover only the whole territory of this country but goes beyond in time to the foreseeable future, which it hopes to secure and edify with the vision and the sacrifice of the present generation of Filipinos. Generations yet to come are as involved in this program as we are today, although hopefully only as beneficiaries of a richer and more fulfilling life we will guarantee to them tomorrow through our thoughtfulness today. And, finally, let it not be forgotten that it is no less than the Constitution itself that has ordained this revolution in the farms, calling for ‘a just distribution’ among the farmers of lands that have heretofore been the prison of their dreams but can now become the key at least to their deliverance.[3]

 

The effective implementation of the CARL, and ultimately the constitutional mandate for social justice, relies on a balance brought forth by “a more equitable distribution and ownership of land, with due regard to the rights of landowners to just compensation and to the ecological needs of the nation,” to achieve the objective of providing “farmers and farmworkers with the opportunity to enhance their dignity and improve the quality of their lives through greater productivity of agricultural lands.”[4]

Section 4 of R.A. No. 6657 provides that the CARL shall “cover, regardless of tenurial arrangement and commodity produced, all public and private agricultural lands.” The CARL defines agricultural land as “land devoted to agricultural activity as defined in [the] Act and not classified as mineral, forest, residential, commercial or industrial land.”[5] The deliberations of the Constitutional Commission confirm the CARL’s limitation of the meaning of the word “agricultural”:

The intention of the Committee is to limit the application of the word ‘agriculture.’ Commissioner Jamir proposed to insert the word ‘ARABLE’ to distinguish this kind of agricultural land from such lands as commercial and industrial lands and residential properties because all of them fall under the general classification of the word ‘agricultural.’ This proposal, however, was not considered because the Committee contemplated that agricultural lands are limited to arable and suitable agricultural lands and therefore, do not include commercial, industrial and residential lands.[6]

 

The CARL’s coverage is further subject to Section 10 of the same, which enumerates the exemptions from the coverage of the Act.[7]

In the cases at bar, it must be emphasized that there is no question of whether the disputed land is among the exemptions under Section 10 of R.A. No. 6657. The issue is whether the land in dispute is devoted to non-agricultural activity. In Natalia Realty, Inc. v. Department of Agrarian Reform (DAR), we held that “lands previously converted to non-agricultural uses prior to the effectivity of CARL by other government agencies other than… DAR” are lands not devoted to agricultural activity and therefore outside the coverage of CARL.[8] Its import rests on the premise that the CARL prohibits the conversion of agricultural lands for non-agricultural purposes after the effectivity of the CARL.[9] 

Although the ruling in Natalia was reiterated in a number of cases, prudence dictates that its application must not be stretched with unbridled discretion. The constitutional mandate to promote social justice through an agrarian reform program, such as that embodied in the CARL, remains the prevailing benchmark by which we measure whether there is, primarily, any merit in Natalia’s application to the cases at bar. Thus, citing Natalia, we upheld the exclusion of land from the coverage of the CARL on the basis of a specific set of circumstances. These include the following: (1) municipal and/or city council zoning ordinances issued prior to the CARL’s effectivity that prescribe the uses for the disputed land as non-agricultural, later approved by government agencies other than the DAR; and (2) Presidential Proclamations enacted prior to the CARL’s effectivity that provide the uses of the disputed land for housing.

The cases at bar must be set apart from the first category of cases that reiterated Natalia, or those that upheld the exclusion of land from CARL due to zoning ordinances that prescribed the uses for the disputed land as non-agricultural and subsequently approved by government agencies other than the DAR. Pasong Bayabas Farmers Association, Inc. v. Court of Appeals held that pursuant to Section 3 of R.A. No. 2264, amending the Local Government Code, municipal and/or city councils have the power to adopt zoning and subdivision ordinances or regulations in consultation with the National Planning Commission.”[10] While the Court defined a zoning ordinance as one that “prescribes, defines, and apportions a given political subdivision into specific land uses as present and future projection of needs,” the Court specified that a local government has the power to convert or reclassify lands to residential lands.[11] For this reason, the approval by the Municipal Council of Carmona, Cavite, of Kapasiyahang Blg. 30 on May 30, 1976 “reclassified and converted [the land] from agricultural to non-agricultural or residential.”[12] However, it is worthy to stress that in confirming the reclassification and conversion of the land, the Court not only considered the municipal council’s zoning ordinance, but also its approval by the Human Settlements Regulatory Commission (HSRC).[13]

Similarly, Junio v. Garilao upheld the exemption of the disputed land from CARL, because the City Council of Bacolod reclassified the land as residential prior to the CARL’s effectivity, which was subsequently affirmed by the HSRC.[14] Agrarian Reform Beneficiaries Association v. Nicolas used the same reasoning in exempting the disputed land from CARL coverage, holding that a city ordinance reclassified the land within an urban zone, likewise prior to the CARL’s effectivity, which reclassification was later approved by the Housing and Land Use Regulatory Board (HLURB).[15] The Court concluded that the disputed land was “considered ‘non-agricultural’ [which] may be utilized for residential, commercial, and industrial purposes.”[16] Considering that the cases at bar do not involve zoning ordinances that reclassified the disputed land to non-agricultural uses, a discussion of the second category of cases that uphold the exclusion of the disputed land from the coverage of CARL is in order.

A review of the provisions of Presidential Proclamation No. 1520 reveals the absence of a specified technical description of the land subject to its coverage. This glaring omission should, at the very least, subject the issue of whether Natalia applies to the cases at bar to further scrutiny. In Natalia, the Court excluded the disputed land from the coverage of CARL on the basis of Presidential Proclamation No. 1637, which “converted for residential use what were erstwhile agricultural lands.”[17] A subsequent case, National Housing Authority v. Allarde reiterated the ruling in Natalia, and excluded the disputed land from the coverage of CARL on the basis of Presidential Proclamation No. 843, which “categorized [the disputed land] as not being devoted to the agricultural activity contemplated by Section 3(c) of R.A. No. 6657.”[18] It is worthy to note that the Presidential Proclamations cited in both cases provide specified technical descriptions of the lands that were “converted” to residential or “categorized” as non-agricultural, hence, there were no doubts as to their coverage.

          It is respectfully submitted that our ruling in DAR v. Franco gives the guidelines for the proper interpretation of Presidential Proclamation No. 1520.[19] The said case required a review of Presidential Proclamation No. 2052,[20] which, except for the municipalities identified, mirrors the provisions of Presidential Proclamation No. 1520.[21] Thus, we held:  

…the DAR Regional Office VII, in coordination with the Philippine Tourism Authority, has to determine precisely which areas are for tourism development and excluded from the Operation Land Transfer and the Comprehensive Agrarian Reform Program. And suffice it to state here that the Court has repeatedly ruled that lands already classified as non-agricultural before the enactment of RA 6657 on 15 June 1988 do not need any conversion clearance.[22]

In other words, without a technical description of the areas comprising a tourist zone, the Philippine Tourism Authority’s (PTA’s) identification of these areas is necessary for exclusion from coverage of the CARL.

          Franco’s application to the cases at bar cannot be dismissed for the reason that the Court’s abovementioned pronouncement only took note of the contents of the DAR Secretary’s order. A conclusion that the only issue in the appeal concerned the handwritten note of a Department of Agrarian Reform Adjudication Board (DARAB) member thereby making any pronouncement unrelated thereto obiter dictum, is unwarranted.

In Franco, the petitioners expressly raised the issue of whether Presidential Proclamation No. 2052 “has taken outside the coverage of agrarian reform all agricultural lands included within [it] or only those that are acquired and developed by the PTA for tourism purposes” before the Court.[23] It is well established that an adjudication on any point within the issues presented by the case is not obiter dictum:

 

Accordingly, a point expressly decided does not lose its value as a precedent because the disposition of the case is, or might have been, made on some other ground, or even though, by reason of other points in the case, the result reached might have been the same if the court had held, on the particular point, otherwise than it did. A decision which the case could have turned on is not regarded as obiter dictum merely because… an additional reason in a decision, brought forward after the case has been disposed of on one ground, be regarded as dicta.[24]

 

Although the Court resolved the issue of whether the DARAB member’s handwritten note was the proper subject of an appeal, the Court decided the important issue of the validity of the DAR Secretary’s order, which declared that the 808 hectares of land delineated by the PTA as needed for tourism development was excluded from CARL.[25] This ruling in Franco is an authoritative precedent in resolving the cases at bar.

But assuming for the sake of argument that Franco is not applicable to the cases at bar, the proper statutory construction of Presidential Proclamation No. 1520 in light of the CARL will still yield a similar outcome.

Basic is the rule that only statutes with an ambiguous or doubtful meaning may be the subject of statutory construction.[26] The irreconcilable interpretations offered by the contending parties, however, prove that the proclamation suffers from ambiguity: first, the blanket classification of the subject municipalities, as claimed by the Roxas & Co., and second, the piecemeal classification of areas for tourism within the subject municipalities, as contended by Katipunan ng mga Magbubukid sa Hacienda Roxas, Inc. (KAMAHARI) and Damayan ng Manggagawang Bukid sa Asyenda Roxas-National Federation of Sugar Workers (DAMBA-NFSW). Too, the Whereas clauses of the proclamation incite doubt as to the role of the PTA in the delineation of tourist zone boundaries as they speak of “certain areas in the sector comprising the Municipalities of Maragondon and Ternate in Cavite Province and Nasugbu in Batangas” and of the necessity to “segregate specific geographic areas for concentrated efforts.” Finally, the area declared as a tourist zone in the proclamation was not defined by metes and bounds, putting into question the scope of the proclamation. Hence, the apparent need for construction.

I do not subscribe to the view that the very terms expressed in the proclamation as well as by its title declared as a single tourist zone the area comprising the municipalities of Nasugbu, Ternate, and Maragondon. It is well to remember that statutes in pari materia should be construed together to attain the purpose of an expressed national policy.[27] Likewise, in interpretating a statute, the Court should start with the assumption that the legislature intended to enact an effective law; it cannot be presumed to have done a vain thing.[28] An interpretation should be avoided under which a statute or provision being construed is defeated, or as otherwise expressed, nullified, destroyed, emasculated, repealed, explained away, or rendered insignificant, meaningless, inoperative or nugatory.[29]

In the cases at bar, we should construe Presidential Proclamation No. 1520 within the context of the CARL, Presidential Decree No. 564 which revised the charter of the PTA, and the Constitution and its provisions mandating agrarian reform and social justice. Taking this approach, we have to recognize the power of the PTA to identify and specify geographic areas with potential tourism value in a declared tourist zone which includes a huge area, not all of which are tourism-ready. This is supported by Section 38 of Presidential Decree No. 564, which defines a “tourist zone” as a “geographic area with well-defined boundaries proclaimed as such by the President, upon the recommendation of the Authority [the PTA], and placed under the administration and control of the Authority.” Hence, absent such a determination and development plan by the PTA, the area can still be considered subject to the coverage of the CARL.

Moreover, the application of CARL fits within the landscape of Section 5.A.2 of Presidential Decree No. 564, which tasks the PTA to formulate a development plan for each zone, with the following proviso:

 

…[that] in case the zone in question to be developed is not solely for tourism purposes, the development plan shall cover specifically those aspects pertaining to tourism; Provided, further, That the tourism development plan is fully coordinated and integrated with other sectoral plans for the area.

 

Therefore, the logical conclusion is that pockets of tourist zones can exist alongside areas subject to the coverage of the CARL, as long as the requirements in Presidential Decree No. 564 and Presidential Proclamation No. 1520 are met.

The overly broad interpretation of Presidential Proclamation No. 1520 with regard to the declaration of a tourist zone will open the gates to attempts to defeat the spirit of the CARL, and more importantly, the Constitution. The march of our farmers towards social justice has been in slow motion for ages now.

I concur.

 

 

                                                                                               

                                                                              REYNATO S. PUNO

                                                                                      Chief Justice



[1] Association of Small Landowners in the Philippines, Inc. v. Secretary of Agrarian Reform, G.R. No. 78742, July 14, 1989, 175 SCRA 343, 373-374.

[2] Id. at 376.

[3] Id. at 386.

[4] Republic Act No. 6657 (1988), Sec. 2.

[5] Sec. 3(c).

[6] Luz Farms v. Secretary of Department of Agrarian Reform, G.R. No. 86889, December 4, 1990, 192 SCRA 51, 57 citing III Record, Constitutional Commission 30 (August 7, 1986); See also Natalia Realty Inc. v. Department of Agrarian Reform, G.R. No. 103302, August 12, 1993, 225 SCRA 278, 283.

[7] This section provides:

 

SECTION 10.       Exemptions and Exclusions. — Lands actually, directly and exclusively used and found to be necessary for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds, and mangroves, national defense, school sites and campuses including experimental farm stations operated by public or private schools for educational purposes, seeds and seedlings research and pilot production centers, church sites and convents appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds and cemeteries, penal colonies and penal farms actually worked by the inmates, government and private research and quarantine centers and all lands with eighteen percent (18%) slope and over, except those already developed shall be exempt from the coverage of the Act.

 

[8] Natalia Realty, Inc. v. Department of Agrarian Reform, supra note 6.

[9] Department of Agrarian Reform v. Sutton, G.R. No. 162070, October 19, 2005, 473 SCRA 392, 401.

[10] G.R. No. 142359, May 25, 2004, 429 SCRA 109, 135.

[11] Id.

[12] Id. at 132.

[13] Id. at 133.

[14] G.R. No. 147146, July 29, 2005, 465 SCRA 173, 186.

[15] G.R. No. 168394, October 6, 2008, 567 SCRA 540, 553-554.

[16] Id.

[17] Natalia Realty, Inc. v. Department of Agrarian Reform, supra note 6, at 282.

[18] G.R. No. 106593, November 16, 1999, 318 SCRA 22, 29.

[19] G.R. No. 147479, September 26, 2005, 471 SCRA 74.

[20] The pertinent portion of Proclamation No. 2052 (January 30, 1981) is quoted below:

 

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby declare the areas comprising the Barangays of Sibugay, Malubog, Babag and Sirao including the proposed Lusaran Dam in the City of Cebu and the municipalities of Argao and Dalaguete in the Province of Cebu as tourist zones under the administration and control of the Philippine Tourism Authority pursuant to Section 5 (d) of Presidential Decree 564.

 

The PTA shall identify well-defined geographic areas within the zones with potential tourism value, wherein optimum use of natural assets and attractions, as well as existing facilities and concentration of efforts and limited resources of both government and private sector may be affected and realized in order to generate foreign exchange as well as other tourist receipts.

 

Any duly established military reservations existing within the zones shall be excluded from this proclamation. (Emphasis supplied)

 

[21] The pertinent portion of Proclamation No. 1520 (November 28, 1975) is quoted below:

 

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby declare the area comprising the Municipalities of Maragondon and Ternate in Cavite Province and Nasugbu in Batangas Province as a tourist zone under the administration and control of the Philippine Tourism Authority (PTA) pursuant to Section 5 (D) of P.D. 564.

 

The PTA shall identify well-defined geographic areas within the zone with potential tourism value, wherein optimum use of natural assets and attractions, as well as existing facilities and concentration of efforts and limited resources of both government and private sector may be affected and realized in order to generate foreign exchange as well as other tourist receipts.

 

Any duly established military reservation existing within the zone shall be excluded from this proclamation. (Emphasis supplied)

 

[22] Department of Agrarian Reform v. Franco, supra note 19, at 92.

[23] Id. at 85.

[24] Villanueva, Jr. v. Court of Appeals, G.R. No. 142947, March 19, 2002, 379 SCRA 463, 469-470.

[25] Department of Agrarian Reform v. Franco, supra note 19.

[26] Daong v. Municipal Judge, No. L-34568, March 28, 1988, 159 SCRA 369.

[27] C & C Commercial Corporation v. National Waterworks and Sewerage Authority, G.R. No. L-27275, November 18, 1967, 21 SCRA 984, 992.

[28] Asturias Sugar Central, Inc. v. Commissioner of Customs, No. L-19337, September 30, 1969, 29 SCRA 617, 627.

[29] Id. at 628.