ChanRobles Virtual law Library








GO TO FULL LIST OF DECISIONS and RESOLUTIONS


chanrobles.com - PHILIPPINE SUPREME COURT DECISIONS - ON-LINE

cralaw_scdecisions_separator.NHAD



EN BANC

.  

Please click here to read full text of the following:
  • Main Resolution
  • Vitug,J., see concurring opinion.
  • Quisumbing, J., see separate opinion.
  • Sandoval-Gutierrez, J., see dissenting opinion.
  • Tinga, J., see dissenting opinion.
  • FRANCISCO I. CHAVEZ,
                    Petitioner,

    G.R. No. 133250
    November 11, 2003

    -versus-


    PUBLIC   ESTATES   AUTHORITY   AND   AMARI
    COASTAL BAY
    DEVELOPMENT CORPORATION,
                         Respondents.
     
     chanroblesvirtualawlibrary

    SEPARATE OPINION


     

    VITUG, J.:chanroblesvirtuallawlibrary


    I still maintain that the conclusion reached by the Court in its main decision is correct, and while the reclaimed land from the submerged areas of Manila Bay could perhaps be aptly classed as being "agricultural lands," respondent AMARI Coastal Bay Development Corporation, being a private corporation, is nevertheless disqualified under Article XII, Section 3,[1] of the 1987 Constitution from directly acquiring, except by way of lease, land of the public domain.chanrobles virtuallaw libraryred

    Relative to the pronouncements in Case No. L-21870, entitled "Manuel O. Ponce, et al. v. Hon. Amador Gomez, et al.," and Case No. L-22669, entitled "Manuel O. Ponce, et al. v. City of Cebu, et al.," where this Court held to be valid the assailed reclamation contracts, granting to a corporate entity the option to buy a portion of reclaimed lands, suffice it to say that the foregoing cases were decided on 03 February 1965 and 24 June 1966, respectively, when the 1935 Constitution was still in effect. Unlike the 1987 Charter, the 1935 Constitution did not contain any proscription against corporations holding alienable lands of the public domain.[2]chanrobles virtuallaw libraryred

    Just the same, I should like to make a statement on what could be a grave concern on the part of individuals, who, not being personally disqualified to hold alienable lands of the public domain, may have been able to acquire in good faith, reclaimed portions of the subject property from respondent AMARI Coastal Bay Development Corporation. I believe that such contracts must be duly respected and upheld in line with analogous and applicable jurisprudence, as well as equitable considerations, in cases involving the conveyance to disqualified aliens of real property that, subsequently, are acquired by nationals qualified to own such property.[3]chanrobles virtuallaw libraryred

    In instances, where the successor-in-interest is itself a corporate entity, the constitutional proscription would stand, but if the corporation has introduced structures or permanent improvements thereon, such structures or improvements, when so viewed as having been made in good faith,[4] could well be governed by the Civil Code effectively entitling the builder to pay to the State a reasonable rent for the use of the land[5] or to be reimbursed the value of the structures or improvements.[6]chanrobles virtuallaw libraryred

    The above exceptional instances are issues that, in my view, could well be litigated by the proper parties in separate proceedings.
     
     


    ____________________________

    Endnotes:
     

    [1] SEC. 3. Lands of the public domain are classified into agricultural, forest or timber, mineral lands, and national parks. Agricultural lands of the public domain may be further classified by law according to the uses to which they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands. Private corporations or associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in area. Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve hectares thereof by purchase, homestead or grant.chanrobles virtuallaw libraryred
      Taking into account the requirements of conservation, ecology, and development, and subject to the requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public domain which may be acquired, developed, held, or leased and the conditions therefor.chanrobles virtuallaw libraryred
    [2] Pertinent provisions in the 1935 Constitution provided —chanrobles virtuallaw libraryred
      Article XIII Conservation and Utilization of Natural Resourceschanrobles virtuallaw libraryred
      Section 1. All agricultural, timber, and mineral lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy and other natural resources of the Philippines belong to the State and their disposition, exploitation, development, or utilization shall be limited to citizens of the Philippines or to corporations or associations at least sixty per centum of the capital of which is owned by such citizens, subject to any existing right, grant, lease, or concession at the time of the inauguration of the Government established under this Constitution. Natural resources, with the exception of public agricultural land, shall not be alienated, and no license, concession, or lease for the exploitation, development, or utilization of any of the natural resources shall be granted for a period exceeding twenty-five years, renewable for another twenty-five years, except as to water rights for irrigation, water supply, fisheries, or industrial uses other than the development of water power, in which cases beneficial use may be the measure and the limit of the grant.chanrobles virtuallaw libraryred
      Section 3. The Congress may determine by law the size of private agricultural land which individuals, corporations, or associations may acquire and hold, subject to rights existing prior to the enactment of such law.chanrobles virtuallaw libraryred
      Section 5. Save in cases of hereditary succession, no private agricultural land shall be transferred or assigned except to individuals, corporations or associations qualified to acquire or hold lands of the public domain in the Philippines.chanrobles virtuallaw libraryred
    [3] In De Castro v. Tan (129 SCRA 85), the petitioner, the vendor in a contract of sale, sought to recover the subject parcel of land, which she had sold to an alien vendee. The foreigner had, in the meantime, ceded the property to a naturalized Filipino citizen. In denying the petitioner the right to recover the land, the Court observed that while the vendee was an alien at the time of the sale, the land had since become the property of a naturalized Filipino citizen, who was constitutionally qualified to own land. The Court was convinced that no public policy would be served if a contrary rule were to be adopted. So also, in Republic v. IAC (175 SCRA 398), the Court sustained the conveyance of a land to a foreigner who later became a Filipino citizen.chanrobles virtuallaw libraryred
    [4] "Good faith" is deemed to be attendant where the builder believes to have a rightful claim of title to the property.chanrobles virtuallaw libraryred
    [5] Article 448, New Civil Code provides —chanrobles virtuallaw libraryred
      The owner of the land on which anything has been built, sown or planted in good faith, shall have the right to appropriate as his own the works, sowing or planting, after payment of the indemnity provided for in articles 546 and 548, or to oblige the one who built or planted to pay the price of the land, and the one who sowed, the proper rent. However, the builder or planter cannot be obliged to buy the land if its value is considerably more than that of the building or trees. In such case, he shall pay reasonable rent, if the owner of the land does not choose to appropriate the building or tress after proper indemnity. The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof.chanrobles virtuallaw libraryred
    [6] Article 546 provides:chanroblesvirtuallawlibrarychanrobles virtuallaw libraryred
      Necessary expenses shall be refunded to every possessor; but only the possessor in good faith may retain the thing until he has been reimbursed therefor.chanrobles virtuallaw libraryred
      Useful expenses shall be refunded only to the possessor in good faith with the same right of retention, the person who has defeated him in the possession having the option of refunding the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof.chanrobles virtuallaw libraryred



     Back to Top   -   Back to Main Index   -   Back to Table of Contents -2003 SC Decisions   -   Back to Home











































    chanrobles.com




    ChanRobles Legal Resources:

    ChanRobles On-Line Bar Review

    ChanRobles Internet Bar Review : www.chanroblesbar.com

    ChanRobles MCLE On-line

    ChanRobles Lawnet Inc. - ChanRobles MCLE On-line : www.chanroblesmcleonline.com