AGRARIAN REFORM: AGRARIAN REFORM: JURISDICTIONAL ISSUES JURISDICTIONAL ISSUES

AND JURISPRUDENCEAND JURISPRUDENCE

JUSTICE OSWALDO D. AGCAOILIPhilippine Judicial Academy

Supreme Court

CONCEPT OF AGRARIAN REFORMCONCEPT OF AGRARIAN REFORM

“It means redistribution of lands, regardless of crops or fruits produced, to farmers and regular farmworkers who are landless, irrespective of tenurial arrangement”

GOVERNING LAWSGOVERNING LAWS

Sec. 4, Article XIII, 1987 Constitution 

“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 . . . ”

 

PD No. 27, or the “Tenant Emancipation Decree” 

“Decree emancipated tenant farmers of private agricultural lands primarily devoted to rice and corn”

RA No. 6657, or the “Comprehensive Agrarian Reform Law of 1988” as amended

by RA 9700

“The State shall encourage and undertake the just distribution of all agricultural lands, subject to the priorities and retention limits set forth in the Act.”

CARP COVERAGE UNDER RA 6657 AS CARP COVERAGE UNDER RA 6657 AS AMENDED BY RA 9700AMENDED BY RA 9700

• (a) All alienable and disposable lands of the public domain devoted to or suitable for agriculture.

• (b) All lands of the public domain in excess of the specific limits as determined by Congress in the preceding paragraph;

• (c) All other lands owned by the Government devoted to or suitable for agriculture; and

• (d) All private lands devoted to or suitable for agriculture regardless of the agricultural products raised or that can be raised thereon.

Retention Limits

– To landowner, not to exceed five (5) hectares– To each child, three (3) hectares, provided:

1. he is at least fifteen (15) years of age; and

2. he is actually tilling the land or directly managing the farm.

•The right to choose the area to be retained, which shall be compact or contiguous, shall pertain to the landowner.

• But if the area selected for retention by the landowner is tenanted, the tenant shall have the option to choose whether to remain therein or be a beneficiary in the same or other agricultural land with similar or comparable features.

Ancestral lands• The right of indigenous cultural communities to their

ancestral lands shall be protected to ensure their economic, social and cultural well-being. In line with the principles of self-determination and autonomy, the systems of land ownership, land use, and the modes of settling land disputes of all these communities must be recognized and respected.

• But the Torrens System shall be respected.

Exemptions and Exclusions

Lands actually, directly and exclusively used and found to be necessary for: 

1. national defense, school sites and campuses, etc.

2. church sites and convents appurtenant thereto;

3. penal colonies and penal farms;

4. government and private research and quarantine centers; and

5. all lands with eighteen percent (18%) slope and over.

Also excluded:1. Lands converted to non-agricultural uses prior to

the effectivity of CARL

2. Farms used for raising livestock, poultry and swine

3. Agricultural lands reclassified by LGU’s into residential, commercial or industrial uses

4. Lands used for academic or educational purposes

5. Homesteads

PROCEDURE FOR ACQUISTION OF PROCEDURE FOR ACQUISTION OF PRIVATE LANDSPRIVATE LANDS

• After having identified the land, the landowners and the beneficiaries, the DAR shall send its notice to acquire the land to the owners thereof;

• If the landowner accepts the offer of the DAR, the Land Bank of the Philippines (LBP) shall pay the landowner the purchase price of the land within thirty (30) days after he executes and delivers a deed of transfer in favor of the Government and surrenders the Certificate of Title and other monuments of title.

• In case of rejection or failure to reply, the DAR shall conduct summary administrative proceedings to determine the compensation for the land by requiring the landowner, the LBP and other interested parties to submit evidence as to the just compensation for the land, and shall decide the case within thirty (30) days;

• Upon receipt by the landowner of the corresponding payment, the DAR shall take immediate possession of the land and request the Register of Deeds to issue a TCT in the name of the Republic.The DAR shall thereafter proceed with the redistribution of the land to the qualified beneficiaries.

DETERMINATION OF COMPENSATIONDETERMINATION OF COMPENSATION

• The cost of acquisition of the land, the value of the standing crop, current value of like properties, its nature, actual use and income, the sworn valuation by the owner, the tax declarations, and the assessment made by government assessors, and 70% of the zonal valuation of the BIR, translated into a basic formula, by the DAR shall be considered.

• The LBP shall compensate the landowner in such amounts as may be agreed upon by the landowner and the DAR and the LBP, or as may be finally determined by the court.

QUALIFIED BENEFICIARIESQUALIFIED BENEFICIARIES

• The land shall be distributed to landless residents of the same barangay, or in the absence thereof, landless residents of the same municipality in the following priority: – Agricultural lessees and share tenants;

– Regular farmworkers;

– Seasonal farmworkers;

– Other farmworkers;

– Actual tillers or occupants of public lands;

– Collectives or cooperatives of the above beneficiaries; and

– Others directly working on the land.

• A landless beneficiary is one who owns less than three (3) hectares of agricultural land.

• Beneficiaries under PD 27 who have culpably sold, disposed of, or abandoned their lands are disqualified to become beneficiaries.

• A person who is the owner of more than 3 hectares of residential or commercial land but does not own any agricultural land is considered a landless beneficiary and, therefore, may be awarded 3 hectares of agricultural land.

AWARD TO BENEFICIARIESAWARD TO BENEFICIARIES

• The rights and responsibilities of the beneficiaries shall commence from their receipt of a duly registered emancipation patent or certificate of land ownership award and their actual physical possession of the awarded land.

• The emancipation patents, the certificates of land ownership award, and other titles issued under any agrarian reform program shall be indefeasible and imprescriptible after one (1) year from its registration with the Office of the Registry of Deeds.

CANCELLATION OF REGISTERED CANCELLATION OF REGISTERED PATENTSPATENTS

• All cases involving the cancellation of registered emancipation patents, certificates of land ownership award, and other titles issued under any agrarian reform program are within the exclusive and original jurisdiction of the Secretary of the DAR.

TRANSFERABILITY OF AWARDED LANDSTRANSFERABILITY OF AWARDED LANDS

• Lands acquired by beneficiaries under the Act or other agrarian reform laws shall not be sold, transferred or conveyed except through hereditary succession, or to the government, or to the LBP, or to other qualified beneficiaries through the DAR for a period of ten (10) years.

• But the children or the spouse of the transferor shall have a right to repurchase the land from the government or LBP within a period of two (2) years.

QUASI-JUDICIAL POWERS OF THE DARQUASI-JUDICIAL POWERS OF THE DAR

• The DAR is vested with primary jurisdiction to determine and adjudicate agrarian reform matters and shall have exclusive original jurisdiction over all matters involving the implementation of agrarian reform except those falling under the exclusive jurisdiction of the Department of Agriculture (DA) and the Department of Environment and Natural Resources (DENR).

• It shall not be bound by technical rules of procedure or evidence.

• Notwithstanding an appeal to the Court of Appeals, the decision of the DAR shall be immediately executory except a decision or a portion thereof involving solely the issue of just compensation. (Sec. 50, RA 6657, as amended by RA 9700)

• The DAR shall not take cognizance of any agrarian dispute or controversy unless a certification from the BARC that the dispute has been submitted to it for mediation and conciliation without any success of settlement is presented.

• If no certification is issued by the BARC within thirty (30) days, the case or dispute may be brought before the PARC.

• The findings of fact of the DAR shall be final and conclusive if based on substantial evidence.

• No court in the Philippines shall have jurisdiction to issue any restraining order or writ of preliminary injunction against the PARC or any of its duly authorized or designated agencies in any case, dispute or controversy arising from, necessary to, or in connection with the application, implementation, enforcement, or interpretation of the Act and other pertinent laws on agrarian reform.

EXCLUSIVE JURISDICTION EXCLUSIVE JURISDICTION ON AGRARIAN DISPUTEON AGRARIAN DISPUTE

• No court or prosecutor's office shall take cognizance of cases pertaining to the implementation of the CARP except those provided under Section 57 of RA 6657, as amended.

• If there is an allegation from any of the parties that the case is agrarian in nature and one of the parties is a farmer, farmworker, or tenant, the case shall be automatically referred by the judge or the prosecutor to the DAR which shall determine and certify within fifteen (15) days from referral whether an agrarian dispute exists. (But see Sec. 50-A, RA 9700)

• From the determination of the DAR, an aggrieved party shall have judicial recourse.In cases referred by the municipal trial court and the prosecutor's office, the appeal shall be with the proper regional trial court, and in cases referred by the RTC, the appeal shall be to the Court of Appeals.

• In cases where regular courts or quasi-judicial bodies have competent jurisdiction, agrarian reform beneficiaries or identified beneficiaries and/or their associations shall have legal standing and interest to intervene concerning their individual or collective rights and/or interests under the CARP.

• Except for the Supreme Court, no court shall have jurisdiction to issue any restraining order or writ of preliminary injunction against the PARC, the DAR, or any of its duly authorized or designated agencies in any case, dispute or controversy arising from, necessary to, or in connection with the application, implementation, enforcement, or interpretation of the Act and other pertinent laws on agrarian reform.

JURISDICTION OF THE ADJUDICATION JURISDICTION OF THE ADJUDICATION BOARDBOARD

• The Agrarian Adjudication Board shall have primary jurisdiction, both original and appellate, to deterjmine and adjudicate all agrarian disputes and other matters involving the CARP.

• Example: cases involving the valuation of land, determination and payment of just compensation; fixing and collection of lease rentals; disturbance compensation; amortization payments; and similar disputes concerning the function of the Land Bank.

• Other disputes: cases involving the sale, alienation, mortgage, foreclosure, pre-emption and redemption of agricultural lands under the CARP; and cases involving the issuance of CLTs, CLOAs and EPs and the administrative correction thereof.

• The RARAD and PARAD may have delegated jurisdiction to receive, hear, determine and adjudicate all agrarian cases and incidents arising within their respective territorial jurisdiction.

• The Board shall have exclusive appellate jurisdiction to review, reverse, modify, alter or affirm resolutions, orders, and decisions of the RARAD and PARAD.

BARC CERTIFICATION REQUIREMENTBARC CERTIFICATION REQUIREMENT

• The Board or its Adjudicators shall not take cognizance of any agrarian dispute unless a certificate is presented from the Barangay Agrarian Reform Council (BARC) except where –– Issue involves the valuation of land

– The parties reside in different barangays

– One party is a public or private corporation

– Issue merely involves the administrative implementation of the agrarian reform law.

SPECIAL AGRARIAN COURTSPECIAL AGRARIAN COURT

• The Supreme Court may designate at least one (1) branch of the Regional Trial Court (RTC) within each province to act as a Special Agrarian Court or more branches to constitute such additional Special Agrarian Courts as may be necessary to cope with the number of agrarian cases in each province.

• The SAC may appoint one or more commissioners to examine, investigate and ascertain facts relevant to the dispute, including the valuation of properties, and to file a written report thereof with the court.

• The Special Agrarian Courts shall have original and exclusive jurisdiction over all petitions (a) for the determination of just compensation to landowners, and (b) the prosecution of all criminal offenses under this Act. The Rules of Court shall apply to all proceedings before the SAC.

• An appeal may be taken from the decision of the SAC by filing a petition for review with the Court of Appeals within fifteen (15) days from receipt of notice of the decision

GENERAL PROVISIONSGENERAL PROVISIONS

• After the lapse of five (5) years from its award, when (a) the land ceases to be economically feasible and sound for agricultural purposes, or (b) the locality has become urbanized and the land will have a greater economic value for residential, commercial or industrial purposes, the DAR, upon application of the beneficiary or the landowner, with due notice to the affected parties, and subject to existing laws, may authorize the reclassification or conversion of the land and its disposition: Provided, That the beneficiary shall have fully paid his obligation.

• Transactions involving a transfer of ownership shall be exempted from taxes arising from capital gains, and from the payment of registration fees, and all other taxes and fees for the conveyance or transfer thereof. Registers of Deeds shall register, free from payment of all fees and other charges, patents, titles, etc. for the implementation of the CARP.

• The sale or disposition of agricultural lands retained by a landowner as a consequence of Section 6 shall be valid as long as the total landholdings that shall be owned by the transferee thereof inclusive of the land to be acquired shall not exceed the landholding ceiling provided for in the Act.

CONVERSION OF LANDSCONVERSION OF LANDS

• After the lapse of five (5) years from its award, when the land ceases to be economically feasible and sound for agricultural purposes, or the locality has become urbanized and the land will have a greater economic value for residential, commercial or industrial purposes, the DAR, upon application of the beneficiary or the landowner with respect only to his/her retained area which is tenanted, with due notice to the affected parties, and subject to existing laws, may authorize the reclassification or conversion of the land and its disposition (except irrigated lands) .

SUBSTANTIVE AND JURISDICTIONAL SUBSTANTIVE AND JURISDICTIONAL ISSUES: ILLUSTRATIVE CASESISSUES: ILLUSTRATIVE CASES

COVERAGE• Lands previously converted by government

agencies to non-agricultural uses prior to the effectivity of the CARL (June 15, 1988) are outside its coverage. Here, the lands were classified within an urban zone by a city ordinance of Davao in 1982. (Agrarian Reform Beneficiaries Association v. Nicolas, GR No. 168394, Oct. 6, 2008; also Natalia Realty v. DAR, GR No. 103302, Aug. 12, 1993))

• Where the subject parcels of lands were reclassified within an urban zone pursuant to a city ordinance prior to the effectivity of the CARL (June 10, 1988), said lands are considered “non-agricultural” and may be utilized for residential, commercial, and industrial purposes. The parcels of land are deemed exempted from the law’s coverage. (Pasong Bayabas Farmers Association, Inc. v. Court of Appeals, GR No. 142359 May 25, 2004, 429 SCRA 109).

• While PD 27, which took effect on Oct. 21, 1972, clearly applies to private agricultural lands planted to rice and corn, it does not preclude nor prohibit the disposition of landholdings planted with other crops (like sugar cane) to the tenants by express will of the landowner.

• Ownership of lands granted to tenant-farmers under PD 27 may not be transferred or conveyed to third parties except by hereditary succession (intestate or testate) or to the government, in order to develop generations of farmers to have an adequate and sustained agricultural production. (Encarnacion v. Dizon, GR No. 148777, Oct. 18, 2007)

BENEFICIARIES

• DAR has authority to identify qualified agrarian reform beneficiaries or to select a substitute to a previously designated beneficiary who may have surrendered or abandoned his claim (Manuel v. DARAB, GR No. 149095, July 24, 2007)

• Agrarian laws were enacted to help small farmers uplift their economic status by providing them with a modest standard of living sufficient to meet their needs for food, clothing, shelter and other basic necessities. The law grants them the right to constitute a home lot as their dwelling and subsistence. (Bautista v. Mag-isa, GR No. 152564, Sept. 13, 2004)

• A homesteader has rights superior to that of tenants under the CARP. The homesteader is entitled to a homelot for himself and family and to plant what is necessary for their subsistence. (Taguinod v. Court of Appeals, GR No. 154654, Sept. 14, 2007)

 

JURISDICTION• All controversies on the implementation of the

CARP fall under the jurisdiction of the DAR . The notice of coverage relates to the implementation of the CARP which is under the quasi-judicial jurisdiction of the DAR. Its decisions are immediately executory. (DAR v. Cuenca, GR No. 154112, Sept. 23, 2004)

• RA No. 6657 invests DAR with original jurisdiction, generally, over all cases involving agrarian laws. (Tangub v. Court of Appeals, GR No. UDK No. 1964, Dec. 3, 1990)

• Implementation of the CARP falls under the exclusive jurisdiction of the DAR Secretary.

• He determines whether a tract of land is covered by or exempt from CARP.

• Questions regarding the eligibility of CARP beneficiaries must be addressed to him.

• He decides to whom lands placed under the CARP shall be distributed. (Department of Agrarian Reform v. Polo Coconut Plantation, Co., Inc., GR No. 168787, Sept. 3, 2008)

• DARAB has primary and exclusive jurisdiction, both original and appellate, to determine and adjudicate all agrarian dispute involving the implementation of the CARP. (Note: Such jurisdiction extended to cases for the issuance, correction or cancellation of CLOAs and EPs already registered; however, under RA 9700, the DAR Secretary has now jurisdiction over all cases for the cancellation of titles issued under the agrarian reform program). (Gabriel v. Jamias, GR No. 156482, Sept. 17, 2008)  

• Note: DAR Secretary has now jurisdiction over all cases for the cancellation of titles issued under the agrarian reform program, thus:

• “All cases involving the cancellation of registered emancipation patents, certificates of land ownership award, and other titles issued under any agrarian reform program are within the exclusive and original jurisdiction of the Secretary of the DAR.” (Sec. 24, RA No. 6657, as amended by RA No. 9700, dated August 8, 2009)

• Prior to registration with the Register of Deeds, cases involving the issuance, recall or cancellation of CLOAs or EPs were within the jurisdiction of the DAR; corollarily, cases involving the issuance, correction or cancellation of CLOAs or EPs which had already been registered were within the jurisdiction of the DARAB.” (Dao-Ayan v. DARAB, GR No. 172109, Aug. 29, 2007)

• Note: RA 9700 now vests in the DAR exclusive jurisdiction to cancel registered emancipation patents or CLOAs.

• The doctrine of primary jurisdiction precludes the courts from resolving a controversy over which jurisdiction has initially been lodged with an administrative body of special competence.

• For agrarian reform cases, jurisdiction is vested in the DARAB. (Hilario v. Prudente, GR No. 150635, Sept. 11, 2008) 

• DARAB has exclusive original jurisdiction over cases involving the rights and obligations of persons engaged in the management, cultivation and use of all agricultural lands covered by the CARL. (Rivera v. Del Rosario, GR No. 144934, Jan. 15, 2004)

• “For DARAB to have jurisdiction over the case, there must be a tenancy relationship between the parties.” (Mateo v. Court of Appeals, GR No. 128392, April 29, 2005)

• Where DARAB and the MCTC exercised jurisdiction over two cases involving the same subject matter, issue, and parties, and ultimately rendered conflicting decisions, the circumstances clearly make out a case for prohibition. (David v. Rivera, GR No. 139913, Jan. 16, 2004)

ELEMENTS OF TENANCYELEMENTS OF TENANCY

• Parties are the landowner and the tenant;

• Subject matter is an agricultural land;

• There is consent between the parties to the relationship;

• Purpose is to bring about agricultural production;

• There is personal cultivation on the part of the tenant; and

• The harvest is shared between the parties.

• The fact that the land in dispute is an agricultural land does not ipso facto make it an agrarian dispute within the jurisdiction of the DARAB.

• Tenancy relationship can only be created with the consent of the true and lawful landholder who is either the owner, lessee, usufructuary or legal possessor of the land.

• The fact alone of working on another's landholding does not raise a presumption of the existence of agricultural tenancy. (Dandoy v. Tongson, GR No. 144652, Dec. 16, 2005. J. Austria-Martinez)

• A person who occupies the land of another at the latter's tolerance or permission, without any contract between them, is necessarily bound by an implied promise to vacate upon demand, failing which, a summary action for ejectment is the proper remedy.

• It is the duty of the court to determine the existence of a tenancy relationship; if tenancy is proved, the court should dismiss the case for lack of jurisdiction. (Magpily v. Dela Cruz, GR No. 167748, Nov. 8. 2005)

• A tenancy relationship may be established either verbally or in writing, expressly or impliedly. (Monsanto v. Zerna, GR No. 142501, Dec. 7, 2001)

• Dispute as to the tenancy relationship between respondent and petitioner is an agrarian dispute. Agrarian dispute means any controversy relating to tenurial arrangements over lands devoted to agriculture. (Salazar v. De Leon, GR No. 127965, Jan. 20, 2009)

• DAR Secretary is vested with the administrative authority to issue and correct or recall the CLOA issued under Section 24 of RA No. 6657. Ruling of the Secretary is appealable to the OP, thence, by a petition for review to the CA. (Dela Cruz v. Cruz, GR No. 162890, Nov. 22, 2005)

• To be a bona fide tenant, the person must cultivate the land himself and with the aid available from his immediate farm household. (Castillo v. Court of Appeals, GR No. 161959, Feb. 2, 2007)

• All the requisites must concur in order to create a tenancy relationship between the parties; the absence of one or more requisites does not make the alleged tenant a de facto tenant as contradistinguished from a de jure tenant. (Jugalbot v. Court of Appeals, GR No. 170346, March 12, 2007)

• A tenancy relationship arises between a landholder and a tenant once they agree to undertake jointly the cultivation of a land belonging to the landholder.

• An action to enforce rights as an agricultural tenant is barred by prescription if not filed within three (3) years. (Landicho v. Sia, GR No. 169472, Jan. 20, 2009)

• The principal factor in determining whether a tenancy relationship exists is intent. (Reyes v. Joson, GR No. 143111, June 7, 2007)

• Where respondent is not identified as one of the farmers-beneficiaries in the DARAB case, he has no personality to assert that the DAR has primary jurisdiction over the land subject matter of the unlawful detainer case before the MTC. (Active Realty and Devt. Corporation v. Fernandez, GR No. 157186, Oct. 19, 2007)

• Certifications issued by administrative agencies and/or officials concerning the presence or the absence of a tenancy relationship are merely preliminary or provisional and are not binding on the courts. (Masaquel v. Orial, GR No. 148044, Oct. 19, 2007)

JUST COMPENSATION• Valuation of property in eminent domain is

essentially a judicial function vested with the RTC acting as SAC. (Apo Fruits Corporation v. Court of Appeals, GR No. 164195, Feb. 6, 2007)

• While a petition for the fixing of just compensation with the SAC is not an appeal from the agrarian reform adjudicator's decision but an original action, the same has to be filed within the 15-day period stated in the DARAB Rules; otherwise, the adjudicator's decision will attain finality.

• The adjudicator’s land valuation and determination of just compensation is directly appealable to the SAC within 15 days from receipt of notice. A petition for the fixing of just compensation filed 26 days after receipt of the PARAD decision renders said decision final and enforceable by a writ of execution.

• The Administrative Code of 1987 mandates the OGCC, not the LBP Legal Department, to act as the principal law office of the LBP. (Land Bank of the Philippines v. Martinez, GR No. 169008, Aug. 14, 2007)

• Section 57 of R.A. No. 6657 vests RTC, acting as a SAC, original and exclusive jurisdiction over all petitions for the determination of just compensation to landowners.

• What adjudicators are empowered to do is only to determine in a preliminary manner the reasonable compensation to be paid to landowners, leaving to the courts the ultimate power to decide this question. (Land Bank of the Philippines v. Suntay, GR No. 157903, Oct. 11, 2007)

APPEAL• A decision of the RTC acting as a SAC should be

brought to the CA via a petition for review under Rule 42. (Concepcion v. Court of Appeals,

GR No. 161844, Dec. 8, 2008)• In appeals in agrarian cases, the only function

required of the Court of Appeals is to determine whether the findings of fact of the DARAB are supported by substantial evidence. (Joson v. Mendoza, GR No. 144071, Aug. 25, 2005)

• In several instances, the Court entertained and allowed lapsed appeals in the higher interest of justice. 

• Moreover, proceedings before the DAR are summary and pursuant to Section 50 of RA 6657, the DAR is not bound by technical rules of procedure and evidence. (Department of Agrarian Reform v. Samson, GR No. 161910, June 17, 2008) 

• Section 1 of Rule 47 limits the subject matter of petitions for annulment to final judgments and orders rendered by RTC in civil actions.

• Final judgments or orders of quasi-judicial tribunals or administrative bodies such as the Office of the President and PARAD are not covered. (Fraginal v. Parañal, GR No. 150207, Feb. 23, 2007)

• A petition for the fixing of just compensation with the SAC has to be filed within the 15-day period stated in the DARAB Rules. (Land Bank of the Philippines v. Martinez, GR No. 169008, July 31, 2008)

CRIMINAL AND CIVIL LIABILITY

• While a court may have authority to pass upon the criminal liability of the accused, it has no jurisdiction to make any civil awards that relate to the agrarian relationship of the parties.

• The matter (of civil awards) falls within the jurisdiction of the DARAB which has quasi-judicial powers to determine and adjudicate agrarian reform matters. (Monsanto v. Zerna, GR No. 142501, Dec. 7, 2001)

THANK YOU

JUSTICE OSWALDO D. AGCAOILIPHILIPPINE JUDICIAL ACADEMY

SUPREME COPURT