Professional Documents
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College of Law
Session Two General Concepts and Agricultural Tenancy (Sept. 11, 2017)
A. General concepts
a. Agrarian law
b. Agrarian reform
c. Social legislation
d. Social justice clause in the 1935, 1973 and 1987 Constitution that pertain to agrarian
laws.
e. Social justice (Article XIII, 1987 Constitution)
B. Share Tenancy
1. Concept
a. Under Act No. 4054
b. Under RA 1199
a. RA 3844, as amended by RA 6389 abolished and outlawed share tenancy and put in
its stead the agricultural leasehold system.
Tan v. Pollescas, GR 145568, Nov. 17, 2005
b. Automatic conversion to agricultural leasehold
C. Leasehold Tenancy
1. Concept
a) Under Section 4, RA 1199
b) Under Sec. 6, RA No. 3844
a) Subject matter
b) Attention and cultivation
c) Purpose
d) Law governing the relationship
8. Burden of proof
Lumayog v. Pitcock, GR 169628, March 14, 2012
Ceneze v. Ramos, GR 172287, January 15, 2010
Soliman v. PASUDECO, GR 169589, June 16, 2009
Mon v. CA, GR 118292, April 4, 2004
10. Rights of Pre-emption (Sec. 11) and Redemption (Sec. 12, RA 3844)
17. Land Bank of the Philippines (LBP) financial arm of the agrarian reform
program
Area of Coverage
Par. 1, Sec. 24, Republic Act No. 1199
It shall be unlawful for the tenant, whenever the area of his holdings is
five hectares or more, or is sufficient size to make him and the members
of his immediate farm household fully occupied in its cultivation, to
contract to work at the same time on two or more separate holdings
belonging to different landholders under any system of tenancy, without
the knowledge and consent of the land-holder with whom he first entered
into tenancy relationship.
Exemption or Exclusion
Beneficiaries
a. Qualified beneficiaries are share-tenants or agricultural lessees (RA 1199 and RA 3844)
b. Interpretation in favor of the tenant (Sec. 56, RA 1199)
In the interpretation and enforcement of this Act and other laws as well
as of the stipulations between the landholder and the tenant, the courts
and administrative officials shall solve all grave doubts in favor of the
tenant.
2. Letter Instruction No. 474- Placing under OLT Tenanted Rice/Corn Lands Seven
Hectares or less in Area under certain Condition (October 21, 1976)
B. Constitutionality
1. Presidential Decree No. 27 was assumed to be constitutional and upheld as part and
parcel of the law of the land
2. It applies only to private agricultural lands primarily devoted to rice and corn under
share tenancy or lease tenancy
Euclosia Daez and/or Her Heirs vs. CA, 325 SCRA 857
Pans v. Alfeche, 364 SCRA 110
6. Indefeasibility of Eps
Torres v. Ventura
Corpus v. Grospe, 333 SCRA 425
7. Cancellation of Eps
a. Grounds
(1) Abandonment of the land
(2) Neglect or misuse of the land Sec. 33, CARL
(3) Failure to pay 3 annual amortizations Sec. 26
(4) Misuse or diversion of financial and support services Sec. 37
(5) Sale, transfer or conveyance of the right to use the land Sec. 73
(6) Illegal conversion of the land Sec. 73
b. Jurisdiction
Mariano Jose, et. al. v. Ernesto Novida, et. al. GR No. 177374, July 2, 2014
E. Payment of Just Compensation
a. Modes of payment
i. Direct payment to the landowner by the farmer-beneficiary
ii. Payment by the LBP
b. Transfer of title of ownership to beneficiaries only upon full payment of the just
compensation
a. Area to be retained
b. Retention right under PD 27 and retention right under the CARL
c. Jurisdiction over retention or exemption issues
H. Transferability of Landholding
a. Rule: Title to land acquired pursuant to PD 27 or the Land Reform Program shall
not be transferrable
A. Introduction
1. Constitutional Basis
a) Article II, Section 21
b) Article XII, Section 1
c) Article XIII, Section 3
d) Article XIII, Section 4
e) Article XIII, Section 5
f) Article XIII, Section 6
g) Article XIII, Section 8
b. Specifically, the following lands are covered by the Comprehensive Agrarian Reform
Program:
1. All alienable and disposable lands of the public domain devoted to or suitable for
agriculture. No reclassification of forest or mineral lands to agricultural lands shall
be undertaken after the approval of this Act until Congress, taking into account
ecological, developmental and equity considerations, shall have determined by law,
the specific limits of the public domain;
2. All lands of the public domain in excess of the specific limits as determined by
Congress in the preceding paragraph;
3. All other lands owned by the Government devoted to or suitable for agriculture;
and
4. All private lands devoted to or suitable for agriculture regardless of the agricultural
products raised or that can be raised thereon.
C. Exclusions from the Coverage of CARL
1. Section 101
2. Private lands actually, directly and exclusively used for prawn farms and fishponds
3. Lands actually, directly and exclusively used and found to be necessary for:
1
As amended by Republic Act No. 7881.
a. National defense;
b. School sites and campuses including experimental farm stations operated by public
or private schools for educational purposes;
c. Seeds and seedling research and pilot production center;
d. Church sites and convents appurtenant thereto;
e. Mosque sites and Islamic centers appurtenant thereto;
f. Communal burial grounds and cemeteries;
g. Penal colonies and penal farms actually worked by the inmates; and
h. Government and private research and quarantine centers.
4. All lands with eighteen percent (18%) slope and over which are not developed for
agriculture
Luz Farms v. Secretary of Agrarian Reform, 192 SCRA 51
Almero v. Heirs of Pacquing, GR 199008, 741 SCRA 209 (2014)
Espiritu v. del Rosario, GR No. 204964, October 15, 2014
4. Purpose of the Leasehold Relation: To protect and improve the tenurial and economic
status of the farmers in tenanted lands. [Section 12]
5. Application [Section 12]
a. Tenanted lands under the retention limit; and
b. Tenanted lands not yet acquired under the CARL
B. Production Sharing Plan
1. Application [Section 13]
2. Period for Compliance: Within ninety (90) days from effectivity of CARL
3. Scheme (Applies to those individuals or enterprises realizing gross sales in excess of
five million pesos per annum, unless the DAR sets a lower ceiling) [Section 32]
Session Eight Continuation of the Comprehensive Agrarian Reform
Program (R.A. 6657) (Oct. 30, 2017)
V. Registration
A. Procedure
B. Procedure
2. Under EO 405 (1990), Land Bank of the Philippines shall be primarily responsible for
the determination of the land valuation and compensation.
3. Basic formula for valuation of lands
a. DAR AO No. 5, series of 1998
There shall be one basic formula for the valuation of lands covered by VOS or CA:
Where:
LV = Land Value
CNI = Capitalized Net Income
CS = Comparable Sales
MV = Market Value
a. Jurisprudence
LandBank vs. Banal G.R. No. 143276, 3rd Division, 20 July 2004
Land Bank vs. Celada G.R. No. 164876, 1st Division, 23 January 2006
Land Bank vs. Lim and Cabochan G.R. No. 171941, En Banc, 2 August 2007
(1) Some Cases Reiterating the Doctrine in Banal, Celada and Lim that
Adherence to the Formula Prescribed by the DAR is Mandatory:
LBP v. Wycoco, G. R. No. 140160, 14 January 2003
Sps. Zoleta, et al. v. Hon. Andres Reyes, et al. (G. R. No. 169054, 31 August 2003)
De Castro, et al. v. LBP (G. R. No. 168026, 03 August 2005)
Meneses v. DAR Secretary, et al. (G. R. No. 156304, 23 October 2006)
LBP vs. Heirs of Eleuterio Cruz (G.R. No. 175175, September 29, 2008)
Land Bank of the Philippines v. Dumlao (G.R. No. 167809, November 27, 2008)
Allied Bank Corporation v. Land Bank of the Philippines (G.R. No. 175422,
March 13, 2009
Land Bank of the Philippines v. Heirs of Honorato De Leon (G.R. No. 164025,
May 8, 2009)
LBP v. Belista (G. R. No. 164631, 26 June 2009)
LBP v. Kumassie Plantation Co., (G.R. No. 177404, December 4, 2009)
LBP v. Alpasan, Jr. (G. R. No. 188221, 03 February 2010)
LBP v. Escandor (G. R. No. 171685, 11 October 2010)
LBP v. Barrido (G.R. No. 183688, August 18, 2010)
(2) Case where the Supreme Court departed from the doctrine
APO FRUITS CORPORATION and HIJO PLANTATION, INC., vs. COURT OF
APPEALS (G.R. No. 164195, February 6, 2007)
(3) More Supreme Court cases since 2004 were decided in accordance with
the doctrine espoused in Banal, Celada and Lim Cabochan
(4) Only case decided by the Supreme Court En Banc involving the issue of
how just compensation in land reform is to be computed is LBP vs. Lim and
Cabochan
5. Mode of Payment [Section 18]
a. Cash
b. Balance
c. Set-off [Section 66]
6. Amount to be deposited Section 16 (a), (b), (d), & (e) of RA 6657
LBP v. Arieta Tan, G.R. No. 161834, August 23, 2010
7. Amount that can be withdrawn
a. LBP v. Josefina Lubrica, G.R. No. 177190, February 23, 2011
b. Sec. 18, RA 6657
c. Sec. 16, RA 6657
D. Date of Taking
a. Section 2, Rule 67 of the Rules of Court
General Rule in Expropriation Proceedings:
1. Filing of the complaint
2. Due notice to owner
3. Deposit of Compensation
b. Taking under RA 6657 - Secs. 16 (e) & 24, par. 2, RA 6657, as amended
1. Payment to LO
2. Deposit , in case of rejection
3. Issuance of title in the name of RP
c. Taking under PD 27
1. Jurisprudence
Locsin vs. Valenzuela, 194 SCRA 194
Assn of Small Landowners vs. Sec. of Agrarian Reform, G.R. Nos. 78742, 79310,
79744 & 79777
BP vs. David C. Naval, et al., G.R. No. 122231, 27 November 1995
NPC vs. Chiong, G.R. No. 152436, 20 June 2003
Gabatin vs. LBP, G.R. No. 148223, 25 November 2004
2. Formula upheld where taking is October 21, 1972 is the formula under PD 27/EO
228.
LV = (2.5 x AGP x P35/31) x A
3. Variance in the Reckoning of Date of Taking
(a) Upon payment of just compensation judicially determined
OP, et al. vs. CA, G.R. No. 131216, 19 July 2001
LBP vs. Estanislao, G.R. No. 166777, 10 July 2007
d. Administrative Order No. 20, Series of 1992 [Took effect on 30 December 1992]
Fortich v. Corona, GR No. 131457, April 24, 1998 Decision, Opinion and
Resolution of the MR with the Decision of the OP on the Sumilao case.
3. Disturbance Compensation [Section 36(1) of Republic Act No. 3844]
4. Difference (Exemption, Conversion and Reclassification)
a. CREBA V. Secretary of Agrarian Reform, GR No. 183409, June 18, 2010
Ros v. DAR, G.R. No. 132477, August 31, 2005
b. Land reclassification Section 20, RA 7160 Local Govt Code of 1991
c. MC 54, s 1993 from the Office of the President
- Prescribing the Guidelines governing Sec. 20, RA 7601 Authorizing Cities and
Municipalities to Reclassify Agricultural Lands to Non-Agricultural Uses
B. Conversions
XV. Relation to Other Laws
A. Suppletory Application: The provisions of Republic Act No. 3844, as amended,
Presidential Decree Nos. 27 and 266, as amended, Executive Order Nos. 228 and 229, both
Series of 1987; and other laws not inconsistent with this Act shall have suppletory effect.
[Section 75]
B. Repealing Clause: Section 35 of Republic Act No. 3844, Presidential Decree No. 316, the
last two paragraphs of Section 12 of Presidential Decree No. 946, Presidential Decree No.
1038, and all other laws, decrees, executive orders, rules and regulations, issuances or parts
thereof inconsistent with CARL are hereby repealed or amended accordingly.
XVI. Effectivity
* CARL takes effect immediately after publication in at least two (2) national newspapers of
general circulation. CARL was printed 15 June 1988.