The Supreme Court addressed a dispute over land in Laguna, focusing on whether property claimed as a municipal park and watershed area could be subject to the Comprehensive Agrarian Reform Program (CARP). The Court ruled that the land, despite its classification as a municipal park after agricultural activities had already begun, and without actual steps taken to use it as a park, could still be covered under CARP. This decision reinforces the rights of farmer-beneficiaries to land awarded under agrarian reform, ensuring that existing land use and agricultural practices take precedence over later zoning classifications intended to circumvent CARP coverage. The ruling underscores the government’s commitment to land redistribution and social justice, protecting the interests of landless farmers against attempts to reclassify land for non-agricultural purposes.
From Canlubang Estate to CARP: Whose Land Is It Anyway?
The case revolves around parcels of land within the former Canlubang Estate, titled to Sta. Rosa Realty Development Corporation (SRRDC). These lands became subject to both civil suits and administrative proceedings, particularly concerning the rights of farmers who had been cultivating the land for generations. Amante, et al., representing these farmers, sought to prevent SRRDC from evicting them, arguing that the land should be under CARP coverage. SRRDC countered that the land was classified as a municipal park and watershed area, exempting it from agrarian reform.
This legal battle highlights a key conflict: the tension between property rights and the state’s commitment to agrarian reform. The central legal question before the Supreme Court was whether the reclassification of agricultural land into a municipal park after the farmers had already established their rights could defeat the farmers’ claim to the land under CARP. The Court needed to determine the precedence of existing agricultural use over subsequent zoning classifications and whether ecological concerns could be used to undermine agrarian reform.
At the core of the dispute was the nature of the land itself. The DARAB, after ocular inspections, found that the landholdings were under the possession and tillage of the potential beneficiaries, who inherited their rights from their forebears who worked on the Yulo Estate. The DARAB emphasized the suitability of the land for agriculture, noting that while some portions had slopes over 18%, fruit-bearing trees and plantations were visible, indicating productivity and development. In this context, the DARAB concluded that the lands did not belong to an exempt class and that the claim that the land was a watershed was unfounded, considering that the DENR had certified that the only declared watershed in Laguna was the Caliraya-Lumot Rivers. The determination of whether the land was agricultural and suitable for CARP coverage was thus a critical point in the Court’s analysis.
However, SRRDC insisted that the property was classified as a “municipal park” under the Zoning Ordinance of Cabuyao, approved by the Housing and Land Use Regulatory Board (HLURB), placing it beyond the scope of CARP. While the Court recognized the local government’s power to reclassify lands through local ordinances, it cited the case of Co vs. Intermediate Appellate Court, which held that an ordinance converting agricultural lands into residential or light industrial should be given prospective application only and should not change the nature of existing agricultural lands or the legal relationships existing over such lands.
A reading of Metro Manila Zoning Ordinance No. 81-01, series of 1981, does not disclose any provision converting existing agricultural lands in the covered area into residential or light industrial… this simply means that, if we apply the general rule, as we must, the ordinance should be given prospective operation only. The further implication is that it should not change the nature of existing agricultural lands in the area or the legal relationships existing over such lands.
The Court noted that before Barangay Casile was classified as a municipal park in November 1979, it was part of the Canlubang Sugar Estate. Municipal Ordinance No. 110-54 did not provide for the retroactivity of its classification, which meant it could not alter the existing nature of the land or the rights already established. Moreover, the municipality had not taken any steps to utilize the property as a park. This underscored the importance of the land’s actual use and the absence of concrete steps by the municipality to convert it into a park.
SRRDC cited the case of Natalia Realty, Inc. vs. DAR, arguing that lands not devoted to agricultural activity and not classified as mineral or forest by the DENR, and not classified in town plans and zoning ordinances as approved by the HLURB prior to the enactment of R.A. No. 6657 on June 15, 1988, are outside the coverage of CARP. However, the Court found that this ruling did not apply because Municipal Ordinance No. 110-54 of Cabuyao did not provide for any retroactive application nor did it convert existing agricultural lands. Therefore, the subject property remained agricultural in nature and within CARP’s coverage.
The Court also dismissed SRRDC’s argument that the property had an 18% slope and over, making it exempt from acquisition and distribution under Section 10 of R.A. No. 6657. This argument was invalidated by DAR Administrative Order No. 13, which provided that those with an 18% slope and over but already developed for agricultural purposes as of June 15, 1988, could be allocated to qualified occupants. Additionally, the topography maps showed that the property had a 5-10% flat to undulating slope and was already planted with diversified crops. These details further reinforced the suitability and actual use of the land for agricultural purposes.
SRRDC further contended that the property was part of a watershed, citing certifications from the Laguna Lake Development Authority and a Final Report for Watershed Area Assessment Study for the Canlubang Estate. However, the Court noted that these pieces of evidence were brought to record only when SRRDC filed its petition for review with the CA, and the DARAB never had the opportunity to assess them. The DARAB noted that SRRDC had been given ample time to prove its grounds for protest but failed to take advantage of it. The Court thus emphasized that parties must present evidence during the administrative proceedings and cannot introduce new evidence on appeal.
Another critical point was the determination of qualified beneficiaries. The Court emphasized that, under Section 15 of R.A. No. 6657, the identification of beneficiaries is a matter involving strictly the administrative implementation of CARP, exclusively vested in the Secretary of Agrarian Reform. Thus, the farmer-beneficiaries had already been identified, and the DAR Secretary had issued Notices of Coverage and Notices of Acquisition. This highlighted the administrative discretion granted to the DAR in determining beneficiaries.
Finally, the Court addressed the financial aspects of the case. Then DAR Secretary Benjamin T. Leong had issued a Memorandum on July 11, 1991, ordering the opening of a trust account in favor of SRRDC. However, the Court cited Land Bank of the Philippines vs. Court of Appeals, which struck down DAR Administrative Circular No. 9, Series of 1990, providing for the opening of trust accounts in lieu of cash or bonds. Therefore, the trust account opened by the LBP was ordered to be converted to a deposit account, subject to a 12% interest per annum from the time the trust account was opened. This adjustment aimed to rectify the error committed by the DAR and grant the landowners the benefits concomitant to payment in cash or LBP bonds.
FAQs
What was the key issue in this case? | The key issue was whether land classified as a municipal park after agricultural activities had begun could be subject to the Comprehensive Agrarian Reform Program (CARP). |
Who were the parties involved in this case? | The parties involved were Sta. Rosa Realty Development Corporation (SRRDC) and a group of farmers represented by Juan B. Amante, et al., along with various government agencies like the DAR and LBP. |
What was SRRDC’s main argument for exempting the land from CARP? | SRRDC argued that the land was classified as a municipal park and watershed area, thus exempting it from CARP coverage under the zoning ordinance of Cabuyao. |
How did the Court address the argument that the land was a municipal park? | The Court held that the zoning ordinance was not retroactive and did not change the existing agricultural nature of the land, especially since the municipality had not taken steps to utilize it as a park. |
What was the significance of the land’s slope in this case? | The Court noted that even if the land had a slope of 18% or more, it was already developed for agricultural purposes, which allowed it to be allocated to qualified occupants under DAR Administrative Order No. 13. |
Who has the authority to identify beneficiaries under CARP? | Under Section 15 of R.A. No. 6657, the Secretary of Agrarian Reform has the exclusive authority to identify and qualify beneficiaries under CARP. |
What was the ruling regarding the trust account opened for SRRDC? | The Court ordered the Land Bank of the Philippines to convert the trust account in the name of Sta. Rosa Realty Development Corporation to a deposit account, subject to a 12% interest per annum. |
What was the final outcome of the case? | The Supreme Court granted the petition, enjoining Sta. Rosa Realty Development Corporation from disturbing the peaceful possession of the farmer-beneficiaries with CLOAs. |
This case underscores the judiciary’s role in balancing property rights and agrarian reform objectives. By upholding the rights of farmer-beneficiaries and emphasizing the importance of actual land use, the Supreme Court reinforced the government’s commitment to social justice and equitable land distribution. The decision also encourages proactive watershed management and sustainable practices, urging collaboration between the DENR, DAR, and farmer-beneficiaries to ensure ecological preservation.
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Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Sta. Rosa Realty Development Corporation v. Amante, G.R. No. 112526, March 16, 2005