Magno v. Franciso

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AGRARIAN LAW &

SOCIAL LEGISLATION

G.R. No. 168959


6. Magno v. Francisco
Date: March 25, 2010 Topic: Quasi-Judicial Powers
of the DAR
Ponente: CARPIO,
Acting C.J.

DOCTRINE: The DAR is vested with the primary jurisdiction to determine and
adjudicate agrarian reform matters and shall have the exclusive jurisdiction over all
matters involving the implementation of the agrarian reform program.

The DARAB has primary, original and appellate jurisdiction “to determine and
adjudicate all agrarian disputes, cases, controversies, and matters or incidents
involving the implementation of the Comprehensive Agrarian Reform Program
under RA No. 6657, E.O. Nos. 229, 228 and 129-A, R.A. No. 3844as amended by R.A.
No. 6389, P.D. No. 27 and other agrarian laws and their implementing rules and
regulations.”

FACTS
Petitioner is the owner of a 5.3 hectare lot (lot) which is a portion of an agricultural
land identified as Lot No. 593 situated in Brgy. San Fernando, Cabiao, Nueva Ecija.
Petitioner acquired the lot through a Deed of Sale executed by Talens on
28 July 1972, but the sale was only registered on 3 September 1986. At the
time of the sale, respondents Gonzalo Francisco and Manuel Lazaro tenanted the
land and their separate areas of tillage were 2.8 and 2.5 hectares, respectively.

In the agricultural leasehold contract entered into by petitioner and


respondents, Manuel Lazaro was obliged to pay a lease rental of 35 cavans during
the regular season, and 20 cavans during dayatan cropping season. Gonzalo
Francisco, on the other hand, was required to pay a lease rental of 35 cavans during
the regular season and 25 cavans during the cropping season.

Respondents stopped paying the rentals despite petitioner's demands, arguing that
that they have fully paid the price of the lot under the Barangay Committee on Land
Productions (BCLP) valuation.

In 1990, respondents were issued their respective Emancipation Patents (EP). Thus,
petitioner filed with PARAD of Cabanatuan City a complaint for ejectment and
collection of lease rentals against respondents. At the time of filing of the complaint,
respondent Francisco and respondent Lazaro were already in arrears of 155 cavans
and 145 cavans, respectively.

The PARAD of Cabanatuan City dismissed the case for lack of merit. On appeal, the
DARAB reversed the PARADs decision. On further appeal, however, the CA reversed
the DARAB ruling and reinstated the decision of PARAD. The CA stated that the EPs

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AGRARIAN LAW &
SOCIAL LEGISLATION

are public documents and are prima facie evidence of the facts stated therein. The
EPs are presumably issued in the regular performance of an official duty. The CA
ruled that petitioner has not presented any evidence showing that the issuance of the
EPs was tainted with defects and irregularities; hence, they are entitled to full faith
and credit.

Petitioner points out that the CA disregarded a significant fact that the land valuation
came after the issuance of the EPs; hence, the issuance of the EPs was tainted with
irregularity because it was violative of Section 2 of PD 266.

Respondents argue that the DAR has not yet submitted the result of the
administrative determination of the lot in dispute to the DARAB. Respondents
contend that the DARAB's decision was issued without jurisdiction.

ISSUE/S
Whether or not unregistered EPs issued to agricultural lessees which appear to be
irregular on their face can defeat the landowner's rights to agricultural leasehold
rentals.

RULING
NO. Agrarian dispute as defined in Section 3(d) of Republic Act (RA) No.
6657 refers "to any controversy relating to tenurial arrangements, whether
leasehold, tenancy, stewardship or otherwise, over lands devoted to agriculture,
including disputes concerning farmworkers associations or representation of
persons in negotiating, fixing, maintaining, changing or seeking to arrange terms or
conditions of such tenurial arrangements. It includes any controversy relating to
compensation of lands acquired under this Act and other terms and conditions of
transfer of ownership from landowners to farmworkers, tenants and other agrarian
reform beneficiaries, whether the disputants stand in the proximate relation of farm
operator and beneficiary, landowner and tenant, or lessor and lessee."

Section 3, Rule II of the 2003 DARAB Rules of Procedure:

SECTION 3. Agrarian Law Implementation Cases. — The Adjudicator or the Board


shall have no jurisdiction over matters involving the administrative implementation
of RA No. 6657, otherwise known as the Comprehensive Agrarian Reform Law
(CARL) of 1988 and other agrarian laws as enunciated by pertinent rules and
administrative orders, which shall be under the exclusive prerogative of and
cognizable by the Office of the Secretary of the DAR in accordance with his issuances,
to wit:

3.1 Classification and identification of landholdings for coverage under


the agrarian reform program and the initial issuance of CLOAs and EPs,
including protests or oppositions thereto and petitions for lifting of such coverage;

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AGRARIAN LAW &
SOCIAL LEGISLATION

It is undisputed that petitioner and respondents have an established tenancy


relationship, such that the complaint for collection of back rentals and ejectment
is classified as an agrarian dispute and under the jurisdiction of the PARAD and
thereafter by the DARAB. However, in view of the conflicting claims where petitioner
asserted ownership over the lot and respondents emphasized that the lot is subject
to OLT coverage, there is a need to ascertain if the lot is under the agrarian reform
program. Since the classification and identification of landholdings for
coverage under the agrarian reform program are Agrarian Law
Implementation cases, the DAR Secretary should first resolve this issue.

Therefore, the PARAD of Cabanatuan City had no authority to render a decision


declaring the lot under OLT coverage. It is therefore essential that the DAR Secretary
should first resolve the issue on the lot's inclusion or exclusion from OLT coverage
before a final determination of this case can be had.

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