11

JUST COMPENSATION JUST COMPENSATION IN IN

AGRARIAN REFORMAGRARIAN REFORM

22

1987 CONSTITUTION1987 CONSTITUTION Article XIII, Sec. 4 Article XIII, Sec. 4

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

33

RA 6657, THE CARP LAW RA 6657, THE CARP LAW

15 June 198815 June 1988

Coverage: Coverage: ““The Comprehensive Agrarian The Comprehensive Agrarian

Reform Law of 1988 shall coverReform Law of 1988 shall cover, , regardless of tenurial arrangement and regardless of tenurial arrangement and commodity produced, commodity produced, all public and all public and private agricultural landsprivate agricultural lands as provided in as provided in Proclamation No. 131 and Executive Proclamation No. 131 and Executive Order No. 229, Order No. 229, including other lands of including other lands of the public domain suitable for the public domain suitable for agricultureagriculture.”.” (Sec. 4) (Sec. 4)

44

RA 3844, AGRICULTURAL LAND RA 3844, AGRICULTURAL LAND REFORM CODE REFORM CODE

8 August 19638 August 1963 Abolished share tenancy relationship and Abolished share tenancy relationship and

provides for the expropriation of certain provides for the expropriation of certain agricultural lands for resale to qualified agricultural lands for resale to qualified beneficiariesbeneficiaries

Created Land Bank of the Philippines to Created Land Bank of the Philippines to finance the acquisition by the Government of finance the acquisition by the Government of landed estates for division and resale to small landed estates for division and resale to small landholders, as well as the purchase of the landholders, as well as the purchase of the landholding by the agricultural lessee from the landholding by the agricultural lessee from the landownerlandowner

55

PD 27, OPERATION LAND TRANSFERPD 27, OPERATION LAND TRANSFER

21 October 197221 October 1972

Covers private agricultural lands Covers private agricultural lands primarily devoted to primarily devoted to rice and cornrice and corn

66

EO 228EO 228 17 July 198717 July 1987 Declared qualified farmer beneficiaries as full owners of Declared qualified farmer beneficiaries as full owners of

the land as of 21 October 1972the land as of 21 October 1972 Provides for the valuation mechanism for lands acquired Provides for the valuation mechanism for lands acquired

pursuant to PD 27pursuant to PD 27

FORMULA UNDER EO 228FORMULA UNDER EO 228

LV = (2.5 x AGP x P35/31) x ALV = (2.5 x AGP x P35/31) x AWhere:Where: LV =LV = Land Value Land Value AGP =AGP = Average Gross Production/hectare Average Gross Production/hectare P35/31 =P35/31 = Government Support Price for one (1) Government Support Price for one (1)

cavan of palay/corn in 1972 cavan of palay/corn in 1972 A = A = Total area of the landTotal area of the land

77

Proclamation No. 131 Proclamation No. 131

22 July 198722 July 1987

Instituted the CARPInstituted the CARP

88

EO 229EO 229

22 July 198722 July 1987

Provides the mechanism for the Provides the mechanism for the implementation of the CARP implementation of the CARP

99

Association of Small Landowners in the Association of Small Landowners in the Philippines vs. Secretary of Agrarian ReformPhilippines vs. Secretary of Agrarian Reform(G.R. No. 78742, (G.R. No. 78742, En Banc,En Banc, 14 July 1989) 14 July 1989)

““WHEREFORE, the Court holds as WHEREFORE, the Court holds as follows: follows:

1. R.A. No. 6657, P.D. No. 27, Proc. 1. R.A. No. 6657, P.D. No. 27, Proc. No. 131, and E.O. Nos. 228 and 229 are No. 131, and E.O. Nos. 228 and 229 are SUSTAINED against all the constitutional SUSTAINED against all the constitutional objections raised in the herein petitions. objections raised in the herein petitions.

x x x” x x x”

1010

1987 CONSTITUTION1987 CONSTITUTION Article XIII, Sec. 4 Article XIII, Sec. 4

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

1111

STAKEHOLDERS IN STAKEHOLDERS IN AGRARIAN REFORM AGRARIAN REFORM

Farmer-BeneficiariesFarmer-Beneficiaries

LandownersLandowners

GovernmentGovernment

1212

JUST COMPENSATIONJUST COMPENSATIONThe just and complete equivalent The just and complete equivalent

of the loss which the owner of the of the loss which the owner of the thing expropriated has to suffer by thing expropriated has to suffer by reason of the expropriation.reason of the expropriation.

The compensation given to the The compensation given to the owner is just compensation if he owner is just compensation if he receives for his property a sum receives for his property a sum equivalent to its market value.equivalent to its market value.

City of Manila vs. Estrada,City of Manila vs. Estrada, 25 Phil 208 (1913)25 Phil 208 (1913)

1313

MARKET VALUEMARKET VALUEIt is the price fixed by the buyer and It is the price fixed by the buyer and

the seller in the open market in the usual the seller in the open market in the usual and ordinary course of legal trade and and ordinary course of legal trade and competition; the price and value of the competition; the price and value of the article established or shown by sale, article established or shown by sale, public or private, in the ordinary course of public or private, in the ordinary course of business; the fair value of property as business; the fair value of property as between one who desires to purchase and between one who desires to purchase and one who desires to sell.one who desires to sell.

City of Manila vs. EstradaCity of Manila vs. Estrada

25 Phil 208 (1913)25 Phil 208 (1913)

1414

1987 Constitution1987 ConstitutionArticle III, Sec. 9Article III, Sec. 9

““Private property shall not be taken Private property shall not be taken for public use without just for public use without just compensation.”compensation.”

1515

1987 Constitution1987 ConstitutionArticle XIII, Sec. 4Article XIII, Sec. 4

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

1616

1987 Constitution1987 Constitution

Article III – Bill of RightsArticle III – Bill of Rights

It is a guarantee that there are certain areas of a It is a guarantee that there are certain areas of a person’s life, liberty, and property which governmental person’s life, liberty, and property which governmental power may not touch. power may not touch.

Article XIII – Social JusticeArticle XIII – Social Justice

The goal of social justice is closer regulation of the The goal of social justice is closer regulation of the acquisition, ownership, use, and disposition of property in acquisition, ownership, use, and disposition of property in order to achieve a more equitable distribution of wealth order to achieve a more equitable distribution of wealth and political power.and political power.

Fr. Joaquin G. Bernas, S.J.Fr. Joaquin G. Bernas, S.J.The 1987 Philippine ConstitutionThe 1987 Philippine ConstitutionA Reviewer-PrimerA Reviewer-Primer

1717

““In trying to determine just In trying to determine just compensation for purposes of agrarian compensation for purposes of agrarian reform, we must remember that we reform, we must remember that we have to look at this in the context of have to look at this in the context of the Article where it is. It is in the the Article where it is. It is in the Article on Social JusticeArticle on Social Justice, and the thrust , and the thrust of this Article is precisely of this Article is precisely to make it to make it easier for the disadvantaged to be easier for the disadvantaged to be able to obtain landable to obtain land.” *.” *

- Fr. Joaquin G. Bernas, SJ- Fr. Joaquin G. Bernas, SJ

**The 1987 Constitution of the Philippines, A Commentary, 2003 Ed., p. The 1987 Constitution of the Philippines, A Commentary, 2003 Ed., p. 12031203

1818

““When pursuant to an agrarian When pursuant to an agrarian reform mandate that is intended to reform mandate that is intended to reduce inequalities, as social justice reduce inequalities, as social justice commands, land is taken for commands, land is taken for redistribution, is the action taken by the redistribution, is the action taken by the state pure eminent domain or is it not state pure eminent domain or is it not eminent domain mixed with the exercise eminent domain mixed with the exercise of police power? But it is established of police power? But it is established jurisprudence that loss incurred due to jurisprudence that loss incurred due to the state’s exercise of police power is not the state’s exercise of police power is not compensable. compensable. It would seem therefore It would seem therefore that compensation in expropriation for that compensation in expropriation for land reform should be approached land reform should be approached differently than under the Bill of Rights differently than under the Bill of Rights when property is taken for traditional when property is taken for traditional purposespurposes.” *.” *

- Fr. Joaquin G. Bernas, SJ- Fr. Joaquin G. Bernas, SJ *Ibid, p. 1205*Ibid, p. 1205

1919

Association of Small Landowners in the Association of Small Landowners in the Philippines vs. Secretary of Agrarian Reform Philippines vs. Secretary of Agrarian Reform (G.R. No. 78742, (G.R. No. 78742, En Banc,En Banc, 14 July 1989) 14 July 1989)

““What we deal with here is a What we deal with here is a revolutionary revolutionary kind of expropriationkind of expropriation..

The expropriation before us The expropriation before us affects all private affects all private agricultural lands whenever found and of whatever agricultural lands whenever found and of whatever kindkind as long as they are in excess of the maximum as long as they are in excess of the maximum retention limits allowed their owners. This kind of retention limits allowed their owners. This kind of expropriation is intended for the benefit not only of expropriation is intended for the benefit not only of a particular community or of a small segment of the a particular community or of a small segment of the population but of the entire Filipino nation, from all population but of the entire Filipino nation, from all levels of our society, from the impoverished farmer levels of our society, from the impoverished farmer to the land-glutted owner. x x x”to the land-glutted owner. x x x”

-J. Isagani Cruz-J. Isagani Cruz

2020

Sec. 17, RA 6657Sec. 17, RA 6657““In determining just compensation, the cost In determining just compensation, the cost

of acquisition of the land, the value of the of acquisition of the land, the value of the standing crop, the current value of like standing crop, the current value of like properties, its nature, actual use and income, the properties, its nature, actual use and income, the sworn valuation by the owner, the tax sworn valuation by the owner, the tax declarations, the assessment made by declarations, the assessment made by government assessors, and seventy percent government assessors, and seventy percent (70%) of the zonal valuation of the Bureau of (70%) of the zonal valuation of the Bureau of Internal Revenue (BIR), Internal Revenue (BIR), translated into a basic translated into a basic formula by the DAR shall be consideredformula by the DAR shall be considered, subject , subject to the final decision of the proper court. The to the final decision of the proper court. The social and economic benefits contributed by the social and economic benefits contributed by the farmers and the farmworkers and by the farmers and the farmworkers and by the Government to the property as well as the Government to the property as well as the nonpayment of taxes or loans secured from any nonpayment of taxes or loans secured from any government financing institution on the said land government financing institution on the said land shall be considered as additional factors to shall be considered as additional factors to determine its valuation."determine its valuation."

2121

Sec. 49, RA 6657Sec. 49, RA 6657

““The PARC and the DAR The PARC and the DAR shall shall have the power to issue rules and have the power to issue rules and regulationsregulations, whether substantive or , whether substantive or procedural, to carry out the objects procedural, to carry out the objects and purposes of this Act. Said rules and purposes of this Act. Said rules shall take effect ten (10) days after shall take effect ten (10) days after publication in two (2) national publication in two (2) national newspapers of general circulation.”newspapers of general circulation.”

2222

DAR AO No. 5, Series of DAR AO No. 5, Series of 19981998

““There shall be one basic formula for the There shall be one basic formula for the valuation of lands covered by VOS or CA:valuation of lands covered by VOS or CA:

LV= (CNI x 0.6) + (CS x 0.3) + (MV x LV= (CNI x 0.6) + (CS x 0.3) + (MV x 0.1)0.1)

Where: Where:

LV = Land ValueLV = Land Value

CNI = Capitalized Net IncomeCNI = Capitalized Net Income

CS = Comparable SalesCS = Comparable Sales

MV = Market Value”MV = Market Value”

2323

LandBank vs. BanalLandBank vs. Banal (G.R. No. 143276, 3(G.R. No. 143276, 3rdrd Division, 20 July 2004) Division, 20 July 2004)

““(I)n determining the valuation of (I)n determining the valuation of the subject property, the trial court shall the subject property, the trial court shall consider the factors provided under consider the factors provided under Section 17 of RA 6657, as amended x x x. Section 17 of RA 6657, as amended x x x. The formula prescribed by the DAR in The formula prescribed by the DAR in Administrative Order No. 6, Series of Administrative Order No. 6, Series of 1992, as amended by DAR Administrative 1992, as amended by DAR Administrative Order No. 11, Series of 1994, shall be Order No. 11, Series of 1994, shall be used in the valuation of landused in the valuation of land”. ”.

- J. Sandoval-Guttierez- J. Sandoval-Guttierez

2424

LandBank vs. CeladaLandBank vs. Celada (G.R. No. 164876, 1(G.R. No. 164876, 1stst Division, 23 January 2006) Division, 23 January 2006)

““DAR AO No. 5, s. of 1998 precisely DAR AO No. 5, s. of 1998 precisely “filled in the details” of Section 17, RA “filled in the details” of Section 17, RA 6657 by providing a basic formula by 6657 by providing a basic formula by which the factors mentioned therein may which the factors mentioned therein may be taken into accountbe taken into account”. ”.

““SAC was at no liberty to disregard SAC was at no liberty to disregard the formula which was devised to the formula which was devised to implement the said provisionimplement the said provision”.”.

- J. Ynares-Santiago- J. Ynares-Santiago

2525

LandBank vs. Lim and Cabochan LandBank vs. Lim and Cabochan (G.R. No. 171941, (G.R. No. 171941, En BancEn Banc, 2 August 2007), 2 August 2007)

““In Land Bank of the Philippines v. Spouses In Land Bank of the Philippines v. Spouses Banal, this Court underscored the Banal, this Court underscored the mandatory mandatory nature of Section 17 of RA 6657 and DAR AO 6-nature of Section 17 of RA 6657 and DAR AO 6-92, as amended by DAR AO 11-9492, as amended by DAR AO 11-94..

xxx”xxx”

““And in LBP v. Celada, this Court set aside And in LBP v. Celada, this Court set aside the valuation fixed by the RTC of Tagbilaran, the valuation fixed by the RTC of Tagbilaran, which was based solely on the valuation of which was based solely on the valuation of neighboring properties, because it did not apply neighboring properties, because it did not apply the DAR valuation formula.the DAR valuation formula.

xxx”xxx”

2626

LandBank vs. Lim and CabochanLandBank vs. Lim and Cabochan (G.R. No. 171941, (G.R. No. 171941, En BancEn Banc, 2 August 2007), 2 August 2007)

““Consequently, as the amount of Consequently, as the amount of P2,232,868 adopted by the RTC in its P2,232,868 adopted by the RTC in its December 21, 2001 Order was December 21, 2001 Order was not based not based on any of the mandatory formulas on any of the mandatory formulas prescribed in DAR AO 6-92, as amended prescribed in DAR AO 6-92, as amended by DAR AO 11-94,by DAR AO 11-94, the Court of Appeals the Court of Appeals erred when it affirmed the valuation erred when it affirmed the valuation adopted by the RTCadopted by the RTC.”.”

- J. Carpio Morales- J. Carpio Morales

2727

Some Cases Reiterating the Doctrine Some Cases Reiterating the Doctrine in Banal, Celada and Lim that Adherence to in Banal, Celada and Lim that Adherence to the Formula Prescribed by the DAR is the Formula Prescribed by the DAR is MandatoryMandatory LBP v. WycocoLBP v. Wycoco (G. R. No. 140160, 14 January 2003) (G. R. No. 140160, 14 January 2003) Sps. Zoleta, et al. v. Hon. Andres Reyes, et al.Sps. Zoleta, et al. v. Hon. Andres Reyes, et al. (G. (G.

R. No. 169054, 31 August 2003) R. No. 169054, 31 August 2003) De Castro, et al. v. LBPDe Castro, et al. v. LBP (G. R. No. 168026, 03 August (G. R. No. 168026, 03 August

2005) 2005) Meneses v. DAR Secretary, et al.Meneses v. DAR Secretary, et al. (G. R. No. (G. R. No.

156304, 23 October 2006) 156304, 23 October 2006) LBP vs. Heirs of Eleuterio CruzLBP vs. Heirs of Eleuterio Cruz (G.R. No. 175175, (G.R. No. 175175,

September 29, 2008) September 29, 2008) Land Bank of the Philippines v. DumlaoLand Bank of the Philippines v. Dumlao (G.R. No. (G.R. No.

167809, November 27, 2008)167809, November 27, 2008) Allied Bank Corporation v. Land Bank of the Allied Bank Corporation v. Land Bank of the

PhilippinesPhilippines (G.R. No. 175422, March 13, 2009 (G.R. No. 175422, March 13, 2009))

2828

……continuedcontinued

Land Bank of the Philippines v. Heirs of Land Bank of the Philippines v. Heirs of Honorato De LeonHonorato De Leon (G.R. No. 164025, May 8, (G.R. No. 164025, May 8, 2009) 2009)

LBP v. BelistaLBP v. Belista (G. R. No. 164631, 26 June (G. R. No. 164631, 26 June 2009) 2009)

LBP v. Kumassie Plantation Co.,LBP v. Kumassie Plantation Co., (G.R. No. (G.R. No. 177404, December 4, 2009)177404, December 4, 2009)

LBP v. Alpasan, Jr.LBP v. Alpasan, Jr. (G. R. No. 188221, 03 (G. R. No. 188221, 03 February 2010) February 2010)

LBP v. EscandorLBP v. Escandor (G. R. No. 171685, 11 (G. R. No. 171685, 11 October 2010) October 2010)

LBP v. BarridoLBP v. Barrido (G.R. No. 183688, August 18, (G.R. No. 183688, August 18, 2010)2010)

2929

Case where the Supreme Court Case where the Supreme Court departed from the doctrinedeparted from the doctrine

APO FRUITS CORPORATION and HIJO APO FRUITS CORPORATION and HIJO PLANTATION, INC.,PLANTATION, INC., vs. COURT OF vs. COURT OF APPEALS (G.R. No. 164195, February APPEALS (G.R. No. 164195, February 6, 2007) 6, 2007)

3030

More Supreme Court cases since 2004 More Supreme Court cases since 2004 were decided in accordance with the were decided in accordance with the doctrine espoused in doctrine espoused in Banal, Celada Banal, Celada and Lim Cabochanand Lim Cabochan

Only case decided by the Only case decided by the Supreme Supreme Court En BancCourt En Banc involving the issue of involving the issue of how just compensation in land reform is how just compensation in land reform is to be computed is to be computed is LBP vs. Lim and LBP vs. Lim and CabochanCabochan

3131

DATE OF TAKINGDATE OF TAKING((Section 2, Rule 67 of the Rules of Section 2, Rule 67 of the Rules of Court)Court)

General Rule in Expropriation General Rule in Expropriation Proceedings: Proceedings:

Filing of the complaintFiling of the complaint Due notice to ownerDue notice to owner Deposit of CompensationDeposit of Compensation

3232

TAKING UNDER RA 6657TAKING UNDER RA 6657 Secs. 16 (e) & 24, par. 2, RA 6657, as Secs. 16 (e) & 24, par. 2, RA 6657, as amendedamended

Payment to LO Payment to LO

Deposit , in case of rejectionDeposit , in case of rejection

Issuance of title in the name of RPIssuance of title in the name of RP

3333

TAKING UNDER PD 27TAKING UNDER PD 27

October 21, 1972October 21, 1972

Locsin vs. ValenzuelaLocsin vs. Valenzuela, 194 SCRA 194;, 194 SCRA 194; Ass’n of Small Landowners vs. Sec. of Agrarian Ass’n of Small Landowners vs. Sec. of Agrarian

ReformReform, G.R. Nos. 78742, 79310, 79744 & 79777, 14 , G.R. Nos. 78742, 79310, 79744 & 79777, 14 July 1989;July 1989;

LBP vs. David C. Naval, et al.LBP vs. David C. Naval, et al., G.R. No. 122231, 27 , G.R. No. 122231, 27 November 1995;November 1995;

NPC vs. ChiongNPC vs. Chiong, G.R. No. 152436, 20 June 2003, G.R. No. 152436, 20 June 2003 Gabatin vs. LBPGabatin vs. LBP, G.R. No. 148223, 25 November 2004, G.R. No. 148223, 25 November 2004

3434

Formula upheld where taking is October Formula upheld where taking is October 21, 1972 is the formula under PD 27/EO 21, 1972 is the formula under PD 27/EO 228.228.

LV = (2.5 x AGP x P35/31) x ALV = (2.5 x AGP x P35/31) x A

3535

Variance in the Reckoning of Date Variance in the Reckoning of Date of Takingof Taking

Upon payment of just compensation Upon payment of just compensation judicially determinedjudicially determined

OP, et al. vs. CAOP, et al. vs. CA, G.R. No. 131216, 19 , G.R. No. 131216, 19 July 2001July 2001

LBP vs. EstanislaoLBP vs. Estanislao, G.R. No. 166777, , G.R. No. 166777, 10 July 200710 July 2007

3636

Date of issuance of EPsDate of issuance of EPs

LBP vs. DomingoLBP vs. Domingo, G.R. No. 168533, 4 , G.R. No. 168533, 4 February 2008;February 2008;

LBP vs. DumlaoLBP vs. Dumlao, G.R. No. 167809, 27 , G.R. No. 167809, 27 November 2008;November 2008;

DAR vs. TiongsonDAR vs. Tiongson, G.R. No. 171674, 4 , G.R. No. 171674, 4 August 2009;August 2009;

3737

Effect of Change in Date of TakingEffect of Change in Date of Taking

Formula under RA 6657 is to be used, Formula under RA 6657 is to be used, resulting in higher valuation. Rationale is resulting in higher valuation. Rationale is because the agrarian reform process is not because the agrarian reform process is not yet complete when RA 6657 took effect on yet complete when RA 6657 took effect on 15 June 1988.15 June 1988.

LV = (CNI x .60) + (CS x .30) + (MV LV = (CNI x .60) + (CS x .30) + (MV x .10)x .10)

3838

Reason for Divergent PD 27 Reason for Divergent PD 27 Rulings on the Date of Rulings on the Date of TakingTaking

Courts have recognized that the Courts have recognized that the determination of the value of the determination of the value of the land as of October 21, 1972 will land as of October 21, 1972 will result in a low valuation and fixing result in a low valuation and fixing the date of taking on a later date, the date of taking on a later date, and in accordance with RA 6657, and in accordance with RA 6657, will increase the valuation. will increase the valuation.

3939

Relevance of PD 27 Jurisprudence Relevance of PD 27 Jurisprudence TodayToday

RA 9700 (July 1, 2009)RA 9700 (July 1, 2009), rendered the , rendered the issue on date of taking for PD 27-acquired issue on date of taking for PD 27-acquired lands moot and academic. lands moot and academic.

Section 5 of RA 9700Section 5 of RA 9700 - all previously- - all previously-acquired lands subject to challenge should acquired lands subject to challenge should be finally resolved in accordance with be finally resolved in accordance with Section 17 of RA 6657, as amended. Section 17 of RA 6657, as amended.

4040

DAR AO No. 1, series of 2010DAR AO No. 1, series of 2010 - - provides that the reckoning date of the provides that the reckoning date of the AGP and SP inputs needed in the AGP and SP inputs needed in the computation computation shall be June 30, 2009shall be June 30, 2009; ; provides the legal formula in the provides the legal formula in the computation:computation:

LV = (CNI x .60) + (CS x .30) + (MV x .10) LV = (CNI x .60) + (CS x .30) + (MV x .10)

OrOr

LV = (CNI x .90) + (MV x .10)LV = (CNI x .90) + (MV x .10)

4141

AMOUNT TO BE DEPOSITEDAMOUNT TO BE DEPOSITEDSection 16 (a), (b), (d), & (e) of RA 6657Section 16 (a), (b), (d), & (e) of RA 6657

““(a) x x x Said notice shall contain the offer (a) x x x Said notice shall contain the offer of the DAR to pay a corresponding value in of the DAR to pay a corresponding value in accordance with the valuation set forth in accordance with the valuation set forth in Sections 17, 18, and other pertinent provisions Sections 17, 18, and other pertinent provisions hereof. hereof.

(b) Within thirty (30) days from the date of (b) Within thirty (30) days from the date of receipt of written notice by personal delivery or receipt of written notice by personal delivery or registered mail, the landowners, his registered mail, the landowners, his administrator, or representative shall inform the administrator, or representative shall inform the DAR of his acceptance or rejection of the offer.”DAR of his acceptance or rejection of the offer.”

4242

continued…continued…

(c) If the landowner accepts the offer of the (c) If the landowner accepts the offer of the DAR, the LBP shall pay the landowner the purchase DAR, the LBP shall pay the landowner the purchase price of the land within thirty (30) days after he price of the land within thirty (30) days after he executes and delivers a deed of transfer x x xexecutes and delivers a deed of transfer x x x

(e) “Upon receipt by the landowner of the (e) “Upon receipt by the landowner of the corresponding payment or corresponding payment or in case of rejection or no in case of rejection or no response from the landowner,response from the landowner, upon the deposit with upon the deposit with an accessible bankan accessible bank designated by the DAR of the designated by the DAR of the compensation in cash or in LBP bonds in accordance compensation in cash or in LBP bonds in accordance with this Act, the DAR shall take immediate with this Act, the DAR shall take immediate possession of the land and shall request the proper possession of the land and shall request the proper Register of Deeds to issue a Transfer Certificate of Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of the Republic of the Title (TCT) in the name of the Republic of the PhilippinesPhilippines. The DAR shall thereafter proceed with . The DAR shall thereafter proceed with the redistribution of the land to qualified the redistribution of the land to qualified beneficiaries.”beneficiaries.”

4343

LBP v. Arieta TanLBP v. Arieta Tan(G.R. No. 161834, August 23, 2010)(G.R. No. 161834, August 23, 2010)

““The amount of ‘offer’ which the DAR The amount of ‘offer’ which the DAR gives to the landowner as compensation gives to the landowner as compensation for his land, as mentioned in Section 16 for his land, as mentioned in Section 16 (b) and (c), is based on the initial (b) and (c), is based on the initial valuation by the LBP. This then is the valuation by the LBP. This then is the amount which may be accepted or amount which may be accepted or rejected by the landowner under the rejected by the landowner under the procedure established in Section 16. procedure established in Section 16. Perforce, Perforce, such initial valuation by the LBP such initial valuation by the LBP also becomes the basis of the deposit of also becomes the basis of the deposit of provisional compensation pending final provisional compensation pending final determination of just compensationdetermination of just compensation, in , in accordance with sub-paragraph (e).”accordance with sub-paragraph (e).”

4444

AMOUNT THAT CAN BE WITHDRAWNAMOUNT THAT CAN BE WITHDRAWN

LBP v. Josefina Lubrica, LBP v. Josefina Lubrica, (G.R. No. 177190, February 23, 2011)(G.R. No. 177190, February 23, 2011)

““Clearly, therefore, it is the Clearly, therefore, it is the initial initial valuationvaluation made by the DAR and LBP that is made by the DAR and LBP that is contained in the letter-offer to the contained in the letter-offer to the landowner under Sec. 16(e), landowner under Sec. 16(e), said valuation said valuation of which must be deposited and released to of which must be deposited and released to the landowner prior to taking possession of the landowner prior to taking possession of the propertythe property.” .”

4545

Sec. 18, RA 6657Sec. 18, RA 6657

““The LBP shall compensate the The LBP shall compensate the landowner in such amounts landowner in such amounts as may as may be agreed upon by the landowner be agreed upon by the landowner and the DAR and the LBP, and the DAR and the LBP, in in accordance with the criteria accordance with the criteria provided for in Sections 16 and 17,provided for in Sections 16 and 17, and other pertinent provisions and other pertinent provisions hereof,hereof, or as may be finally or as may be finally determined by the court, determined by the court, as the just as the just compensation for the land.”compensation for the land.”

4646

Sec. 16, RA 6657Sec. 16, RA 6657

““Any party who disagrees with Any party who disagrees with the decisionthe decision may bring the matter to may bring the matter to the court of proper jurisdiction for the court of proper jurisdiction for final determination of just final determination of just compensationcompensation.”.”

4747

Sec. 57, RA 6657Sec. 57, RA 6657

““The Special Agrarian Courts shall The Special Agrarian Courts shall have have original and exclusive jurisdictionoriginal and exclusive jurisdiction over all petitions for the determination over all petitions for the determination of just compensation to landowners, of just compensation to landowners, and the prosecution of all criminal and the prosecution of all criminal offenses under this Act. The Rules of offenses under this Act. The Rules of Court shall apply to all proceedings Court shall apply to all proceedings before the Special Agrarian Courts, before the Special Agrarian Courts, unless modified by this Act.”unless modified by this Act.”

4848

DAR Adjudication Board (DARAB)DAR Adjudication Board (DARAB)

““Section 16. Procedure for Section 16. Procedure for Acquisition of Private Lands.Acquisition of Private Lands. — —

xxxxxx(d) In case of rejection or failure to (d) In case of rejection or failure to

reply, the reply, the DAR shall conduct summary DAR shall conduct summary administrative proceedingsadministrative proceedings to determine to determine the compensation for the land requiring the compensation for the land requiring the landowner, the LBP and other the landowner, the LBP and other interested parties to submit evidence as to interested parties to submit evidence as to the just compensation for the land, within the just compensation for the land, within fifteen (15) days from the receipt of the fifteen (15) days from the receipt of the noticenotice. xxx”. xxx” (RA 6657) (RA 6657)

4949

Sec 50, RA 6657Sec 50, RA 6657

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

5050

DARAB Rules of ProceduresDARAB Rules of Procedures

1. 20091. 2009

2. 20032. 2003

3. 19943. 1994

5151

DARAB and SAC’s JurisdictionDARAB and SAC’s Jurisdiction

Philippine Veterans Bank v. CAPhilippine Veterans Bank v. CA (G.R. No. 132767. January 18, 2000)(G.R. No. 132767. January 18, 2000)

No contradiction in the jurisdiction of No contradiction in the jurisdiction of DARAB and SACDARAB and SAC

Proceedings before the DARAB is Proceedings before the DARAB is administrative while the proceedings administrative while the proceedings before SAC is judicialbefore SAC is judicial

5252

LBP vs. WycocoLBP vs. Wycoco (G.R. No. 140160, 13 January 2004)(G.R. No. 140160, 13 January 2004)

Direct resort to SAC is validDirect resort to SAC is valid

SAC is not an appellate court of DARABSAC is not an appellate court of DARAB

Summary administrative proceedings Summary administrative proceedings before the DARAB is not necessary prior before the DARAB is not necessary prior to filing before the SACto filing before the SAC

5353

LBP vs. BelistaLBP vs. Belista (G.R. No. 164631, 26 June 2009)(G.R. No. 164631, 26 June 2009)

Party need not appeal the Party need not appeal the Adjudicator’s decision to the DARAB Adjudicator’s decision to the DARAB before it can file a petition for before it can file a petition for determination of just compensation determination of just compensation before the SAC.before the SAC.

5454

Land Bank of the Philippines v. CeladaLand Bank of the Philippines v. Celada (G.R. No. 164876, 23 January 2006)(G.R. No. 164876, 23 January 2006)

APO Fruits and HIJO Plantation, Inc., vs. APO Fruits and HIJO Plantation, Inc., vs. CACA (G.R. No. 164195, 6 February 2007)(G.R. No. 164195, 6 February 2007)

NNotwithstanding the pendency of otwithstanding the pendency of a just compensation case before the a just compensation case before the DARAB, a party may file a petition DARAB, a party may file a petition before the SACbefore the SAC

5555

Time to File Original Action Before Time to File Original Action Before the SACthe SAC

Philippine Veterans Bank v. CAPhilippine Veterans Bank v. CA (G.R. No. 132767, January 18, 2000)(G.R. No. 132767, January 18, 2000)

LBP vs. Raymunda MartinezLBP vs. Raymunda Martinez (G.R. No. 169008, July 31, 2008)(G.R. No. 169008, July 31, 2008)

Although the proceedings before the SAC is not Although the proceedings before the SAC is not appellate in nature the petition for the fixing of appellate in nature the petition for the fixing of just compensation should be filed within 15 days just compensation should be filed within 15 days period from receipt of the adverse DARAB period from receipt of the adverse DARAB decision.decision.

5656

Sec. 60, RA 6657Sec. 60, RA 6657

““An appeal may be taken from the An appeal may be taken from the decision of the Special Agrarian Courts decision of the Special Agrarian Courts by by filing a petition for review with the Court of filing a petition for review with the Court of Appeals within fifteen (15) days from Appeals within fifteen (15) days from receipt of notice of the decisionreceipt of notice of the decision; otherwise, ; otherwise, the decision shall become final.the decision shall become final.

An appeal from the decision of the An appeal from the decision of the Court of Appeals, or from any order, ruling Court of Appeals, or from any order, ruling or decision of the DAR, as the case may be, or decision of the DAR, as the case may be, shall be shall be by a petition for review with the by a petition for review with the Supreme Court within a non-extendible Supreme Court within a non-extendible period of fifteen (15) days period of fifteen (15) days from receipt of a from receipt of a copy of said decision.”copy of said decision.”

5757

LBP vs. Arlene De LeonLBP vs. Arlene De LeonG.R. No. 143275, 20 March 2003G.R. No. 143275, 20 March 2003

““We ruled that the Rules of Court does not We ruled that the Rules of Court does not categorically prescribe ordinary appeal as the categorically prescribe ordinary appeal as the exclusive mode of appeal from decisions of Special exclusive mode of appeal from decisions of Special Agrarian Courts. The reference by Section 61 to the Agrarian Courts. The reference by Section 61 to the Rules of Court in fact even supports the mode of a Rules of Court in fact even supports the mode of a petition for review as the appropriate way to appeal petition for review as the appropriate way to appeal decisions of the Special Agrarian Courts. x x xdecisions of the Special Agrarian Courts. x x x

““WHEREFOREWHEREFORE, the motion for reconsideration , the motion for reconsideration dated October 16, 2002 and the supplement to the dated October 16, 2002 and the supplement to the motion for reconsideration dated November 11, motion for reconsideration dated November 11, 2002 are 2002 are PARTIALLY GRANTEDPARTIALLY GRANTED. While we clarify that . While we clarify that the Decision of this Court dated September 10, the Decision of this Court dated September 10, 2002 stands, our ruling therein that a petition for 2002 stands, our ruling therein that a petition for review is the correct mode of appeal from decisions review is the correct mode of appeal from decisions of Special Agrarian Courts shall apply only to cases of Special Agrarian Courts shall apply only to cases appealed after the finality of this Resolution.”appealed after the finality of this Resolution.”

5858

ARF is solely answerable for just ARF is solely answerable for just compensation to landownercompensation to landowner

Sec. 63, RA 6657, as amended by Sec. 63, RA 6657, as amended by RA 9700RA 9700

““xxx all just compensation xxx all just compensation payments to landowners, payments to landowners, including including execution of judgmentsexecution of judgments therefor, therefor, shall shall onlyonly be sourced from the be sourced from the Agrarian Reform FundAgrarian Reform Fund;”;”

5959

INTEREST ON JUST INTEREST ON JUST COMPENSATIONCOMPENSATION

1. When there is no delay in payment.1. When there is no delay in payment.

2. When there is a delay in payment.2. When there is a delay in payment.

6060

WHEN THERE IS NO DELAYWHEN THERE IS NO DELAY

Cash portionCash portion – prevailing savings rate – prevailing savings rate

Bond portionBond portion – interest rate aligned with – interest rate aligned with the the 91-day TB rates91-day TB rates (Section 18, RA (Section 18, RA 6657, as amended)6657, as amended)

6161

WHEN THERE IS DELAYWHEN THERE IS DELAY

Art. 2209, Civil CodeArt. 2209, Civil Code

CB Circular 416CB Circular 416

Eastern Shipping vs. CAEastern Shipping vs. CA (G.R. No. 168453, 13 March 2009)(G.R. No. 168453, 13 March 2009)

6262

APO-HIJO VS. LBP APO-HIJO VS. LBP (G.R No. 164195, 12 April 2011)(G.R No. 164195, 12 April 2011)

Forbearance of moneyForbearance of money

12% interest12% interest

6363

PECULIAR CIRCUMSTANCES PECULIAR CIRCUMSTANCES IN APO-HIJO VS. LBPIN APO-HIJO VS. LBP

Market value upheld over value determined Market value upheld over value determined under DAR valuation guidelinesunder DAR valuation guidelines

SC decided case on the merits when issue on SC decided case on the merits when issue on appeal is proceduralappeal is procedural

22ndnd MR of APO elevated to the SC MR of APO elevated to the SC En Banc En Banc and given due course inspite of Entry of and given due course inspite of Entry of Judgment.Judgment.

6464

3rd MR of APO given due course without 3rd MR of APO given due course without 2/3 vote of the Justices pursuant to SC 2/3 vote of the Justices pursuant to SC Internal Rules of ProcedureInternal Rules of Procedure

Payment of just compensation classified Payment of just compensation classified as forbearance of money to justify 12% as forbearance of money to justify 12% interestinterest

6565

THANK YOU!THANK YOU!