Compilation of Environmental Law Full Text

8/12/2019 Compilation of Environmental Law Full Text

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G.R. No. L-12691 February 27, 1959

SIMEON T. DAGDAG,plaintiff-appellee,vs.VIENTE NE!OM"ENO, ET AL.,defendants-appellants.

Jesus Paredes for appellee.

Mariano Sta. Romana for appellants.

#ENG$ON,J.%

Forwarded by the Court of Appeals, this lawsuit coming from Nueva Ecija, concern a smallparcel of land. ubmitted for decision below upon a stipulation of facts, it raises legal!uestions only.

A portion of "ot No. #$%&, Cabanatuan Cadaster 'admittedly alienable or disposable publicland way bac( in )*)&+ is covered by ales atent No. ) issued to /argarita 0uanson, andalso by lease No. 1* e2ecuted by the 3ureau of "ands in favor of Andres de 4era. 5heoverlapping was recently discovered, and their successors in interest now litigate for

possession and6or ownership.

5he ales atent was inscribed in the office of the 7egister of 8eeds on 0uly )), )*$, and9riginal Certificate of 5itle No. &% was accordingly issued in the same of /argarita 0uanson,who later sold the land of 7emegio 0uanson 3autista ')*%+, who in turn sold it to 3alarian:ncorporated ')**+. :n /ay )*;, imeon 5. 8agdag bought it from 3alarin, :nc. After everysale, the corresponding 5ransfer Certificate of 5itle was given out.

9n the other hand, the lease to 8e 4era signed in 0une )*)& covered adjoining land of abigger area. :t was transferred by him to 7egino Nepomuceno. 9riginally for a -years periode2piring on 0une #;, )*1), it was e2tended for another li(e period in )*1*. 8agdag

5he above observations deserve our approval. 5hey conform with our decisions onindefeasibility of public land patents when registered in the corresponding 7egister of 8eeds9ffice.)?e regard these to be veritable 5orrens 5itle subject to no encumbrances e2cept thosestated therein, plus those specified by the status 'lease is not one of them+.

:n addition to the above reason given by his =onor, it should be remembered that when thelease was renewed in 1949, the portion in !uestion was no longer public landsubject to thedisposition of the 8irector of "ands because it had already been granted to /argarita 0uansonand had becomeprivateproperty@ therefore, it could not have beenincluded in the renewal ofsuch lease of public land.

8efendanttitle>,or deed or conveyance within the meaning of section ), which for convenience is !uoted

below

?henever public lands in the hilippine :slands belonging to the Dovernment of thenited tates or the Dovernment of the hilippine :slands are alienated, granted, orconveyed to persons or to public or private corporations, the same shall be broughtforthwith under the operation of this Act and shall become registered lands. :t shall

be the duty of the officials issuing the instrument of alienation, grant, or conveyance

in behalf of the Dovernment to cause such instrument, before its delivery to thegrantee, to be filed with the register of deeds for the province where the land lies and


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to be there registered li(e other deeds and conveyance, whereupon a certificate shallbe entered as in other cases of registered land, and an owner, are documents transferring ownership not

documents of lease, transferring mere possession. 9bserve especially that the statue directs theissuance to the grantee of >an owner. Appellants may not, therefore,assert a titlejust as good-so they claim-as appellee


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G.R. No. 1&&25' (u)y 9, 2''2

FRANISO I. *AVE$,petitioner,vs.!"#LI ESTATES A"T*ORIT+ a AMARI OASTAL #A+ DEVELO!MENTOR!ORATION,respondents.

AR!IO,J.:

5his is an original etition for /andamus with prayer for a writ of preliminary injunction anda temporary restraining order. 5he petition see(s to compel the ublic Estates Authority'>EA> for brevity+ to disclose all facts on EAC8C> for brevity+ to reclaim certain foreshore and offshore areas of /anila 3ay. 5he

contract also included the construction of hases : and :: of the /anila-Cavite Coastal 7oad.C8C obligated itself to carry out all the wor(s in consideration of fifty percent of the totalreclaimed land.

9n February 1, )*$$, then resident Ferdinand E. /arcos issued residential 8ecree No. );%1creating EA. 8 No. );%1 tas(ed EA >to reclaim land, including foreshore and submergedareas,> and >to develop, improve, ac!uire, 2 2 2 lease and sell any and all (inds of lands.> )9nthe same date, then resident /arcos issued residential 8ecree No. );% transferring to EAthe >lands reclaimed in the foreshore and offshore of the /anila 3ay> under the /anila-Cavite Coastal 7oad and 7eclamation roject '/CC77+.

9n 8ecember *, )*%), then resident /arcos issued a memorandum directing EA to amendits contract with C8C, so that >BAll future wor(s in /CC77 2 2 2 shall be funded and

owned by EA.> Accordingly, EA and C8C e2ecuted a /emorandum of Agreement dated8ecember *, )*%), which stated

>'i+ C8C shall underta(e all reclamation, construction, and such other wor(s in the/CC77 as may be agreed upon by the parties, to be paid according to progress ofwor(s on a unit price6lump sum basis for items of wor( to be agreed upon, subject to

price escalation, retention and other terms and conditions provided for inresidential 8ecree No. )*1. All the financing re!uired for such wor(s shall be

provided by EA.

2 2 2

'iii+ 2 2 2 C8C shall give up all its development rights and hereby agrees to cedeand transfer in favor of EA, all of the rights, title, interest and participation of

C8C in and to all the areas of land reclaimed by C8C in the /CC77 as of8ecember #;, )*%) which have not yet been sold, transferred or otherwise disposedof by C8C as of said date, which areas consist of appro2imately Ninety-Nine5housand Four =undred eventy 5hree '**,1$#+ s!uare meters in the FinancialCenter Area covered by land pledge No. and appro2imately 5hree /illion 5hree=undred Eighty 5wo 5housand Eight =undred Eighty Eight '#,#%,%%%+ s!uaremeters of reclaimed areas at varying elevations above /ean "ow ?ater "evellocated outside the Financial Center Area and the First Neighborhood nit.>#

9n 0anuary )*, )*%%, then resident Coraon C. A!uino issued pecial atent No. #)$,granting and transferring to EA >the parcels of land so reclaimed under the /anila-CaviteCoastal 7oad and 7eclamation roject '/CC77+ containing a total area of one million ninehundred fifteen thousand eight hundred ninety four '),*),%*1+ s!uare meters.> ubse!uently,on April *, )*%%, the 7egister of 8eeds of the /unicipality of araGa!ue issued 5ransferCertificates of 5itle Nos. $#;*, $#)), and $#), in the name of EA, covering the threereclaimed islands (nown as the >Freedom :slands> located at the southern portion of the/anila-Cavite Coastal 7oad, araGa!ue City. 5he Freedom :slands have a total land area of9ne /illion Five =undred eventy Eight 5housand Four =undred and Forty 9ne '),$%,11)+s!uare meters or )$.%1) hectares.

9n April , )**, EA entered into a 0oint 4enture Agreement '>04A> for brevity+ withA/A7:, a private corporation, to develop the Freedom :slands. 5he 04A also re!uired the

reclamation of an additional ; hectares of submerged areas surrounding these islands tocomplete the configuration in the /aster 8evelopment lan of the outhern 7eclamationroject-/CC77. EA and A/A7: entered into the 04A through negotiation without public

bidding.19n April %, )**, the 3oard of 8irectors of EA, in its 7esolution No. )1,confirmed the 04A.9n 0une %, )**, then resident Fidel 4. 7amos, through then E2ecutiveecretary 7uben 5orres, approved the 04A.&

9n November *, )**&, then enate resident Ernesto /aceda delivered a privilege speech inthe enate and denounced the 04A as the >grandmother of all scams.> As a result, the enateCommittee on Dovernment Corporations and ublic Enterprises, and the Committee onAccountability of ublic 9fficers and :nvestigations, conducted a joint investigation. 5heenate Committees reported the results of their investigation in enate Committee 7eport No.&; dated eptember )&, )**$.$Among the conclusions of their report are ')+ the reclaimed

lands EA see(s to transfer to A/A7: under the 04A are lands of the public domain whichthe government has not classified as alienable lands and therefore EA cannot alienate theselands@ '+ the certificates of title covering the Freedom :slands are thus void, and '#+ the 04Aitself is illegal.

9n 8ecember , )**$, then resident Fidel 4. 7amos issued residential Administrative9rder No. #& creating a "egal 5as( Force to conduct a study on the legality of the 04A inview of enate Committee 7eport No. &;. 5he members of the "egal 5as( Force were theecretary of 0ustice,% the Chief residential "egal Counsel,*and the Dovernment CorporateCounsel.);5he "egal 5as( Force upheld the legality of the 04A, contrary to the conclusionsreached by the enate Committees.))

9n April 1 and , )**%, thePhilippine ail! "n#uirerand $oda!published reports that there

were on-going renegotiations between EA and A/A7: under an order issued by thenresident Fidel 4. 7amos. According to these reports, EA 8irector Nestor Halaw, EA


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Chairman Arsenio Iulo and retired Navy 9fficer ergio Cru composed the negotiating panelof EA.

9n April )#, )**%, Antonio /. Julueta filed before the Court a Petition for Prohibition with%pplication for the "ssuance of a $emporar! Restraining &rder and Preliminar!"n'unctiondoc(eted as D.7. No. )#**1 see(ing to nullify the 04A. 5he Court dismissed thepetition >for unwarranted disregard of judicial hierarchy, without prejudice to the refiling ofthe case before the proper court.>)

9n April $, )**%, petitioner Fran( :. Chave '>etitioner> for brevity+ as a ta2payer, filed theinstantPetition for Mandamus with Pra!er for the "ssuance of a (rit of Preliminar!

"n'unction and $emporar! Restraining &rder. etitioner contends the government stands tolose billions of pesos in the sale by EA of the reclaimed lands to A/A7:. etitioner praysthat EA publicly disclose the terms of any renegotiation of the 04A, invo(ing ection %,Article ::, and ection $, Article :::, of the )*%$ Constitution on the right of the people toinformation on matters of public concern. etitioner assails the sale to A/A7: of lands of the

public domain as a blatant violation of ection #, Article K:: of the )*%$ Constitutionprohibiting the sale of alienable lands of the public domain to private corporations. Finally,petitioner asserts that he see(s to enjoin the loss of billions of pesos in properties of the tatethat are of public dominion.

After several motions for e2tension of time,)#EA and A/A7: filed their Comments on

9ctober )*, )**% and 0une , )**%, respectively. /eanwhile, on 8ecember %, )**%,petitioner filed an 9mnibus /otion 'a+ to re!uire EA to submit the terms of the renegotiatedEA-A/A7: contract@ 'b+ for issuance of a temporary restraining order@ and 'c+ to set the casefor hearing on oral argument. etitioner filed a 7eiterative /otion for :ssuance of a 579dated /ay &, )***, which the Court denied in a 7esolution dated 0une , )***.

:n a 7esolution dated /arch #, )***, the Court gave due course to the petition and re!uiredthe parties to file their respective memoranda.

9n /arch #;, )***, EA and A/A7: signed the Amended 0oint 4enture Agreement'>Amended 04A,> for brevity+. 9n /ay %, )***, the 9ffice of the resident under theadministration of then resident 0oseph E. Estrada approved the Amended 04A.

8ue to the approval of the Amended 04A by the 9ffice of the resident, petitioner now praysthat on >constitutional and statutory grounds the renegotiated contract be declared null andvoid.>)1

Te Iue

5he issues raised by petitioner, EA)and A/A7:)&are as follows

:. ?=E5=E7 5=E 7:NC:A" 7E":EF 7AIE8 F97 :N 5=E E5:5:9NA7E /995 AN8 ACA8E/:C 3ECAE 9F 3ELEN5 E4EN5@

::. ?=E5=E7 5=E E5:5:9N /E7:5 8:/:A" F97 FA:":ND 5993E74E 5=E 7:NC:"E D94E7N:ND 5=E =:E7A7C=I 9F C975@

:::. ?=E5=E7 5=E E5:5:9N /E7:5 8:/:A" F97 N9N-EK=A5:9N 9F A8/:N:57A5:4E 7E/E8:E@

:4. ?=E5=E7 E5:5:9NE7 =A)&*+S S$%,"59 37:ND 5=: :5@

4. ?=E5=E7 5=E C9N5:55:9NA" 7:D=5 59 :NF97/A5:9N:NC"8E 9FF:C:A" :NF97/A5:9N 9N 9N-D9:ND NED95:A5:9N3EF97E A F:NA" AD7EE/EN5@

4:. ?=E5=E7 5=E 5:"A5:9N :N 5=E A/EN8E8 09:N5 4EN57EAD7EE/EN5 F97 5=E 57ANFE7 59 A/A7: 9F CE75A:N "AN8,7EC"A:/E8 AN8 5:"" 59 3E 7EC"A:/E8, 4:9"A5E 5=E )*%$C9N5:55:9N@ AN8

4::. ?=E5=E7 5=E C975 : 5=E 79E7 F97/ F97 7A::ND 5=E:E 9F ?=E5=E7 5=E A/EN8E8 09:N5 4EN57E AD7EE/EN5 :D79"I 8:A84AN5ADE9 59 5=E D94E7N/EN5.

Te our0 Ru)34

First issue: whether the principal reliefs prayed for in the petition are moot and academic

because of subsequent events.

5he petition prays that EA publicly disclose the >terms and conditions of the on-goingnegotiations for a new agreement.> 5he petition also prays that the Court enjoin EA from>privately entering into, perfecting and6or e2ecuting any new agreement with A/A7:.>

EA and A/A7: claim the petition is now moot and academic because A/A7: furnishedpetitioner on 0une ), )*** a copy of the signed Amended 04A containing the terms andconditions agreed upon in the renegotiations. 5hus, EA has satisfied petitioner


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is the duty of the Court to enjoin its implementation, and if already implemented, to annul theeffects of such unconstitutional contract.

5he Amended 04A is not an ordinary commercial contract but one which see(s to transfertitle and ownership to 367.5 hectares of reclaimed lands and submerged areas of anila

!ay to a single private corporation. :t now becomes more compelling for the Court to resolvethe issue to insure the government itself does not violate a provision of the Constitutionintended to safeguard the national patrimony. upervening events, whether intended oraccidental, cannot prevent the Court from rendering a decision if there is a grave violation of

the Constitution. :n the instant case, if the Amended 04A runs counter to the Constitution, theCourt can still prevent the transfer of title and ownership of alienable lands of the publicdomain in the name of A/A7:. Even in cases where supervening events had made the casesmoot, the Court did not hesitate to resolve the legal or constitutional issues raised to formulatecontrolling principles to guide the bench, bar, and the public.)$

Also, the instant petition is a case of first impression. All previous decisions of the Courtinvolving ection #, Article K:: of the )*%$ Constitution, or its counterpart provision in the)*$# Constitution,)%covered agricultural landssold to private corporations which ac!uired thelands from private parties. 5he transferors of the private corporations claimed or could claimthe right to"udicial confirmation of their imperfect titles )*under #itle $$of CommonwealthAct. )1) '>CA No. )1)> for brevity+. :n the instant case, A/A7: see(s to ac!uire from EA, a

public corporation, reclaimed lands and submerged areas for non%agriculturalpurposes

bypurchase under 8 No. );%1 'charter of EA+ and #itle $$$of CA No. )1). Certainunderta(ings by A/A7: under the Amended 04A constitute the consideration for thepurchase. Neither A/A7: nor EA can claim judicial confirmation of their titles because thelands covered by the Amended 04A are newly reclaimed or still to be reclaimed. 0udicialconfirmation of imperfect title re!uires open, continuous, e2clusive and notorious occupationof agricultural lands of the public domain for at least thirty years since 0une ), )*1 orearlier. 3esides, the deadline for filing applications for judicial confirmation of imperfect titlee2pired on 8ecember #), )*%$.;

"astly, there is a need to resolve immediately the constitutional issue raised in this petitionbecause of the possible transfer at any time by EA to A/A7: of title and ownership toportions of the reclaimed lands. nder the Amended 04A, EA is obligated to transfer toA/A7: the latter


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application of a constitutional provision intended to insure the e!uitable distribution ofalienable lands of the public domain among Filipino citiens. 5he thrust of the first issue is tocompel EA to disclose publicly information on the sale of government lands worth billions of

pesos, information which the Constitution and statutory law mandate EA to disclose. 5hethrust of the second issue is to prevent EA from alienating hundreds of hectares of alienablelands of the public domain in violation of the Constitution, compelling EA to comply with aconstitutional duty to the nation.

/oreover, the petition raises matters of transcendental importance to the public. :n +have, v.

(+--,%

the Court upheld the right of a citien to bring a ta2payer3esides, petitioner emphasies, the matter of recovering the ill-gotten wealth of the/arcoses is an issue of at all times 2 2 2 accountable to the people,> *for unless citiens havethe proper information, they cannot hold public officials accountable for anything. Armed withthe right information, citiens can participate in public discussions leading to the formulationof government policies and their effective implementation. An informed citienry is essentialto the e2istence and proper functioning of any democracy. As e2plained by the Court

in/almonte v. !elmonte Jr.#;


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>An essential element of these freedoms is to (eep open a continuing dialogue orprocess of communication between the government and the people. :t is in theinterest of the tate that the channels for free political discussion be maintained tothe end that the government may perceive and be responsive to the people

EA asserts, citing +have, v. (+--,#)

that in cases of on-going negotiations the right toinformation is limited to >definite propositions of the government.> EA maintains the rightdoes not include access to >intra-agency or inter-agency recommendations or communicationsduring the stage when common assertions are still in the process of being formulated or are inthe


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5he information that petitioner may access on the renegotiation of the 04A includesevaluation reports, recommendations, legal and e2pert opinions, minutes of meetings, terms ofreference and other documents attached to such reports or minutes, all relating to the 04A.=owever, the right to information does not compel EA to prepare lists, abstracts, summariesand the li(e relating to the renegotiation of the 04A. #15he right only affords access to records,documents and papers, which means the opportunity to inspect and copy them. 9ne whoe2ercises the right must copy the records, documents and papers at his e2pense. 5he e2erciseof the right is also subject to reasonable regulations to protect the integrity of the publicrecords and to minimie disruption to government operations, li(e rules specifying when andhow to conduct the inspection and copying.#

5he right to information, however, does not e2tend to matters recognied as privilegedinformation under the separation of powers.#&5he right does not also apply to information onmilitary and diplomatic secrets, information affecting national security, and information oninvestigations of crimes by law enforcement agencies before the prosecution of the accused,which courts have long recognied as confidential. #$5he right may also be subject to otherlimitations that Congress may impose by law.

5here is no claim by EA that the information demanded by petitioner is privilegedinformation rooted in the separation of powers. 5he information does not cover residentialconversations, correspondences, or discussions during closed-door Cabinet meetings which,li(e internal deliberations of the upreme Court and other collegiate courts, or e2ecutive

sessions of either house of Congress,#%

are recognied as confidential. 5his (ind of informationcannot be pried open by a co-e!ual branch of government. A fran( e2change of e2ploratoryideas and assessments, free from the glare of publicity and pressure by interested parties, isessential to protect the independence of decision-ma(ing of those tas(ed to e2erciseresidential, "egislative and 0udicial power.#*5his is not the situation in the instant case.

?e rule, therefore, that the constitutional right to information includes official informationon on%going negotiationsbefore a final contract. 5he information, however, must constitutedefinite propositions by the government and should not cover recognied e2ceptions li(e

privileged information, military and diplomatic secrets and similar matters affecting nationalsecurity and public order.1;Congress has also prescribed other limitations on the right toinformation in several legislations.1)

&i'th issue: whether stipulations in the *mended J/* for the transfer to **4$ of landsreclaimed or to be reclaimed violate the +onstitution.

#he 4egalian octrine

5he ownership of lands reclaimed from foreshore and submerged areas is rooted in the7egalian doctrine which holds that the tate owns all lands and waters of the public domain.pon the panish con!uest of the hilippines, ownership of all >lands, territories and

possessions> in the hilippines passed to the panish Crown.15he Hing, as the sovereignruler and representative of the people, ac!uired and owned all lands and territories in thehilippines e2cept those he disposed of by grant or sale to private individuals.

5he )*#, )*$# and )*%$ Constitutions adopted the 7egalian doctrine substituting, however,the tate, in lieu of the Hing, as the owner of all lands and waters of the public domain. 5he

7egalian doctrine is the foundation of the time-honored principle of land ownership that >alllands that were not ac!uired from the Dovernment, either by purchase or by grant, belong tothe public domain.>1#Article ##* of the Civil Code of )%%*, which is now Article 1; of theCivil Code of )*;, incorporated the 7egalian doctrine.

1wnership and isposition of 4eclaimed ands

5he panish "aw of ?aters of )%&& was the first statutory law governing the ownership anddisposition of reclaimed lands in the hilippines. 9n /ay )%, )*;$, the hilippine

Commission enacted Act No. )&1 which providedfor the lease but not the sale ofreclaimed lands of the government to corporations and individuals . "ater, on November *,)*)*, the hilippine "egislature approved Act No. %$1, the ublic "and Act, whichauthoried the lease but not the sale of reclaimed lands of the government to corporationsand individuals. 9n November $, )*#&, the National Assembly passed Commonwealth Act

No. )1), also (nown as the ublic "and Act, which authori,ed the lease but not the sale ofreclaimed lands of the government to corporations and individuals . CA No. )1) continues tothis day as the general law governing the classification and disposition of lands of the publicdomain.

#he &panish aw of aters of 8966 and the +ivil +ode of 899

nder the panish "aw of ?aters of )%&&, the shores, bays, coves, inlets and all waters withinthe maritime one of the panish territory belonged to the public domain for public use. 115hepanish "aw of ?aters of )%&& allowed the reclamation of the sea under Article , which

provided as follows

>Article . "ands reclaimed from the sea in conse!uence of wor(s constructed bythe tate, or by the provinces, pueblos or private persons, with proper permission,shall become the property of the party constructing such wor(s, unless otherwise

provided by the terms of the grant of authority.>

nder the panish "aw of ?aters, land reclaimed from the sea belonged to the partyunderta(ing the reclamation, provided the government issued the necessary permit and did notreserve ownership of the reclaimed land to the tate.

Article ##* of the Civil Code of )%%* defined property of public dominion as follows

>Art. ##*. roperty of public dominion is

). 5hat devoted to public use, such as roads, canals, rivers, torrents, ports andbridges constructed by the tate, riverban(s, shores, roadsteads, and that of a similarcharacter@

. 5hat belonging e2clusively to the tate which, without being of general publicuse, is employed in some public service, or in the development of the nationalwealth, such as walls, fortresses, and other wor(s for the defense of the territory, and

mines, until granted to private individuals.>


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roperty devoted to public use referred to property open for use by the public. :n contrast,property devoted to public service referred to property used for some specific public serviceand open only to those authoried to use the property.

roperty of public dominion referred not only to property devoted to public use, but also toproperty not so used but employed to develop the national wealth. 5his class of propertyconstituted property of public dominion although employed for some economic or commercialactivity to increase the national wealth.

Article #1) of the Civil Code of )%%* governed the re-classification of property of publicdominion into private property, to wit

>Art. #1). roperty of public dominion, when no longer devoted to public use or tothe defense of the territory, shall become a part of the private property of the tate.>

5his provision, however, was not self-e2ecuting. 5he legislature, or the e2ecutive departmentpursuant to law, must declare the property no longer needed for public use or territorialdefense before the government could lease or alienate the property to private parties. 1

*ct ;o. 865< of the (hilippine +ommission

9n /ay %, )*;$, the hilippine Commission enacted Act No. )&1 which regulated the leaseof reclaimed and foreshore lands. 5he salient provisions of this law were as follows

>ection ). 5he control and disposition of the foreshoreas defined in e2isting law,and the title to all -overnment or public lands made or reclaimed by the-overnment by dredging or fillingor otherwise throughout the hilippine:slands, shall be retained by the -overnmentwithout prejudice to vested rights andwithout prejudice to rights conceded to the City of /anila in the "uneta E2tension.

ection . 'a+ 5he ecretary of the :nterior shall cause all Dovernment or publiclands made or reclaimed by the Dovernment by dredging or filling or otherwise to

be divided into lots or bloc(s, with the necessary streets and alleyways locatedthereon, and shall cause plats and plans of such surveys to be prepared and filed withthe 3ureau of "ands.

'b+ pon completion of such plats and plans the -overnor%-eneral shall givenotice to the public that such parts of the lands so made or reclaimed as are not

needed for public purposes will be l eased for commercial and business purposes , 22 2.

2 2 2

'e+ #he leases above provided for shall be disposed of to the highest and bestbiddertherefore, subject to such regulations and safeguards as the Dovernor-Deneralmay by e2ecutive order prescribe.> 'Emphasis supplied+

Act No. )&1 mandated that the government should retain t itle to all lands reclaimed by thegovernment. 5he Act also vested in the government control and disposition of foreshore lands.rivate parties could lease lands reclaimed by the government only if these lands were nolonger needed for public purpose. Act No. )&1 mandatedpublic bidding in the lease ofgovernment reclaimed lands. Act No. )&1 made government reclaimed lands sui generisinthat unli(e other public lands which the government could sell to private parties, thesereclaimed lands were available only for lease to private parties.

Act No. )&1, however, did not repeal ection of the panish "aw of ?aters of )%&&. Act

No. )&1 did not prohibit private parties from reclaiming parts of the sea under ection ofthe panish "aw of ?aters. "ands reclaimed from the sea by private parties with governmentpermission remained private lands.

*ct ;o. =97< of the (hilippine egislature

9n November *, )*)*, the hilippine "egislature enacted Act No. %$1, the ublic "andAct.1&5he salient provisions of Act No. %$1, on reclaimed lands, were as follows

>ec. &. #he -overnor%-eneral upon the recommendation of the &ecretary of*griculture and ;atural 4esources shall from time to time classify the lands of

the public domain into

'a+*lienable or disposable,

'b+ 5imber, and

'c+ /ineral lands, 2 2 2.

ec. $. For the purposes of the government and disposition of alienable ordisposable public lands, the -overnor%-eneral upon recommendation by the

&ecretary of *griculture and ;atural 4esources shall from time to time declare

what lands are open to disposition or concession under this *ct.>

ec. %. 1nly those lands shall be declared open to disposition or concession whichhave been officially delimited or classified2 2 2.

2 2 2

ec. . Any tract of land of the public domain which, being neither timber normineral land, shall be classified as suitable for residential purposes or forcommercial industrial or other productive purposes other than agricultural

purposes, and shall be open to disposition or concession, shall be disposed of underthe provisions of this chapter, and not otherwise.

ec. &. #he lands disposable under this title shall be classified as follows

>a? ands reclaimed by the -overnment by dredging filling or other


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means@

>b? Foreshore@

>c? arshy landsor lands covered with water bordering upon the shoresor ban(s of navigable la(es or r ivers@

'd+ "ands not included in any of the foregoing classes.

2 2 2.

ec. %. #he lands comprised in classes >a? >b? and >c? of section fifty%si' shall bedisposed of to private parties by lease only and not otherwise , as soon as the-overnor%-eneral upon recommendation by the &ecretary of *griculture and

;atural 4esources shall declare that the same are not necessary for the public

service and are open to disposition under this chapter. #he lands included in class>d? may be disposed of by sale or lease under the provisions of this *ct. > 'Emphasissupplied+

ection & of Act No. %$1 authoried the Dovernor-Deneral to >classify lands of the publicdomain into 2 2 2 alienable or disposable>1$ lands. ection $ of the Act empowered the

Dovernor-Deneral to >declare what lands are open to disposition or concession.> ection % ofthe Act limited alienable or disposable lands only to those lands which have been >officiallydelimited and classified.>

ection & of Act No. %$1 stated that lands >disposable under this title 1%shall be classified>as government reclaimed, foreshore and marshy lands, as well as other lands. All these lands,however, must be suitable for residential, commercial, industrial or other productive non%agriculturalpurposes. 5hese provisions vested upon the Dovernor-Deneral the power toclassify inalienable lands of the public domain into disposable lands of the public domain.5hese provisions also empowered the Dovernor-Deneral to classify further such disposablelands of the public domain into government reclaimed, foreshore or marshy lands of the publicdomain, as well as other non-agricultural lands.

ection % of Act No. %$1 categorically mandated that disposable lands of the public domainclassified as government reclaimed, foreshore and marshy lands shall be disposed of to

private parties by lease only and not otherwise.5he Dovernor-Deneral, before allowing thelease of these lands to private parties, must formally declare that the lands were >not necessaryfor the public service.> Act No. %$1 reiterated the tate policy to lease and not to sellgovernment reclaimed, foreshore and marshy lands of the public domain, a policy firstenunciated in )*;$ in Act No. )&1. Dovernment reclaimed, foreshore and marshy landsremained sui generis, as the only alienable or disposable lands of the public domain that thegovernment could not sell to private parties.

5he rationale behind this tate policy is obvious. Dovernment reclaimed, foreshore andmarshy public lands for non-agricultural purposes retain their inherent potential as areas for

public service. 5his is the reason the government prohibited the sale, and only allowed thelease, of these lands to private parties. 5he tate always reserved these lands for some future

public service.

Act No. %$1 did not authorie the reclassification of government reclaimed, foreshore andmarshy lands into other non-agricultural lands under ection & 'd+. "ands falling underection & 'd+ were the only lands for non-agricultural purposes the government could sell to

private parties. 5hus, under Act No. %$1, the government could not sell governmentreclaimed, foreshore and marshy lands to private parties unless the legislature passed a lawallowing their sale.1*

Act No. %$1 did not prohibit private parties from reclaiming parts of the sea pursuant toection of the panish "aw of ?aters of )%&&. "ands reclaimed from the sea by private

parties with government permission remained private lands.

ispositions under the 835 +onstitution

9n /ay )1, )*#, the )*# Constitution too( effect upon its ratification by the Filipinopeople. 5he )*# Constitution, in adopting the 7egalian doctrine, declared in ection ),Article K:::, that

>ection ). All agricultural, timber, and mineral lands of the public domain, waters,minerals, coal, petroleum, and other mineral oils, all forces of potential energy andother natural resources of the hilippines belong to the tate, and their disposition,e2ploitation, development, or utiliation shall be limited to citiens of thehilippines or to corporations or associations at least si2ty per centum of the capitalof which is owned by such citiens, subject to any e2isting right, grant, lease, orconcession at the time of the inauguration of the Dovernment established under thisConstitution.;atural resources with the e'ception of public agricultural landshall not be alienated, and no license, concession, or lease for the e2ploitation,development, or utiliation of any of the natural resources shall be granted for a

period e2ceeding twenty-five years, renewable for another twenty-five years, e2ceptas to water rights for irrigation, water supply, fisheries, or industrial uses other thanthe development of water power, in which cases beneficial use may be the measureand limit of the grant.> 'Emphasis supplied+

5he )*# Constitution barred the alienation of all natural resources e2cept public agriculturallands, which were the only natural resources the tate could alienate. 5hus, foreshore lands,considered part of the tate


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>ection .;o private corporation or association may acquire lease or holdpublic agricultural lands in e'cess of one thousand and twenty four hectares nor

may any individual acquire such lands by purchase in e'cess of one hundred and

forty hectares or by lease in e'cess of one thousand and twenty%four hectares , orby homestead in e2cess of twenty-four hectares. "ands adapted to graing, note2ceeding two thousand hectares, may be leased to an individual, privatecorporation, or association.> 'Emphasis supplied+

till, after the effectivity of the )*# Constitution, the legislature did not repeal ection % of

Act No. %$1 to open for sale to private parties government reclaimed and marshy lands of thepublic domain. 9n the contrary, the legislature continued the long established tate policy ofretaining for the government title and ownership of government reclaimed and marshy landsof the public domain.

+ommonwealth *ct ;o. 8a? >b? and >c? of section fifty%nine shallbe disposed of to private parties by lease only and not otherwise, as soon as the

(resident, upon recommendation by the ecretary of Agriculture, shall declare thatthe same are not necessary for the public service and are open to disposition underthis chapter. #he lands included in class >d? may be disposed of by sale or leaseunder the provisions of this *ct.> 'Emphasis supplied+

ection &) of CA No. )1) readopted, after the effectivity of the )*# Constitution, ection %of Act No. %$1 prohibiting the sale of government reclaimed, foreshore and marshy

disposable lands of the public domain. All these lands are intended for residential,commercial, industrial or other non-agricultural purposes. As before, ection &) allowed only


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the lease of such lands to private parties. 5he government could sell to private parties onlylands falling under ection * 'd+ of CA No. )1), or those lands for non-agricultural purposesnot classified as government reclaimed, foreshore and marshy disposable lands of the publicdomain. Foreshore lands, however, became inalienable under the )*# Constitution whichonly allowed the lease of these lands to !ualified private parties.

ection % of CA No. )1) e2pressly states that disposable lands of the public domain intendedfor residential, commercial, industrial or other productive purposes other than agricultural>shall be disposed of under the provisions of this chapter and not otherwise .> nder ection

); of CA No. )1), the term >disposition> includes lease of the land. Any disposition ofgovernment reclaimed, foreshore and marshy disposable lands for non-agricultural purposesmust comply with Chapter :K, 5itle ::: of CA No. )1), 1unless a subse!uent law amended orrepealed these provisions.

:n his concurring opinion in the landmar( case of 4epublic 4eal )state +orporation v. +ourtof *ppeals,0ustice 7eynato . uno summaried succinctly the law on this matter, asfollows

>Foreshore lands are lands of public dominion intended for public use. o too arelands reclaimed by the government by dredging, filling, or other means. Act )&1mandated that the control and disposition of the foreshore and lands under waterremained in the national government. aid law allowed only the ec. &;. 2 2 2 5he area so leased or sold shall be such as shall, in the judgment ofthe ecretary of Agriculture and Natural 7esources, be reasonably necessary for the

purposes for which such sale or lease is re!uested, and shall not e2ceed one hundredand forty-four hectares rovided, however, 5hat this limitation shall not apply togrants, donations, or transfers made to a province, municipality or branch orsubdivision of the Dovernment for the purposes deemed by said entities conduciveto the public interest@but the land so granted donated or transferred to a provincemunicipality or branch or subdivision of the -overnment shall not be alienated

encumbered or otherwise disposed of in a manner affecting its title e'cept when

authori,ed by +ongress 2 2 2.> 'Emphasis supplied+

5he congressional authority re!uired in ection &; of CA No. )1) mirrors the legislative

authority re!uired in ection & of Act No. %$1.

9ne reason for the congressional authority is that ection &; of CA No. )1) e2emptedgovernment units and entities from the ma2imum area of public lands that could be ac!uiredfrom the tate. 5hese government units and entities should not just turn around and sell theselands to private parties in violation of constitutional or statutory limitations. 9therwise, thetransfer of lands for non-agricultural purposes to government units and entities could be usedto circumvent constitutional limitations on ownership of alienable or disposable lands of the

public domain. :n the same manner, such transfers could also be used to evade the statutoryprohibition in CA No. )1) on the sale of government reclaimed and marshy lands of the publicdomain to private parties. ection &; of CA No. )1) constitutes by operation of law a lien onthese lands.$

:n case of sale or leaseof disposable lands of the public domain falling under ection * ofCA No. )1), ections and &$ re!uire a public bidding. ections and &$ of CA No. )1)

provide as follows

>ec. . ?henever it is decided that lands covered by this chapter are not neededfor public purposes, the 8irector of "ands shall as( the ecretary of Agriculture andCommerce 'now the ecretary of Natural 7esources+ for authority to dispose of thesame. pon receipt of such authority, the 8irector of "ands shall give notice by

public advertisement in the same manner as in the case of leases or sales ofagricultural public land, 2 2 2.

ec. &$. #he lease or sale shall be made by oral bidding@ and ad"udication shall be

made to the highest bidder. 2 2 2.> 'Emphasis supplied+


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5hus, CA No. )1) mandates the Dovernment to put to public auction all leases or sales ofalienable or disposable lands of the public domain.%

"i(e Act No. )&1 and Act No. %$1 before it, CA No. )1) did not repeal ection of thepanish "aw of ?aters of )%&&. rivate parties could still reclaim portions of the sea withgovernment permission. =owever, the reclaimed land could become private land only ifclassified as alienable agricultural land of the public domainopen to disposition under CA

No. )1). 5he )*# Constitution prohibited the alienation of all natural resources e2cept publicagricultural lands.

#he +ivil +ode of 85A

5he Civil Code of )*; readopted substantially the definition of property of public dominionfound in the Civil Code of )%%*. Articles 1; and 1 of the Civil Code of )*; state that

>Art. 1;. 5he following things are property of public dominion

')+ 5hose intended for public use, such as roads, canals, rivers, torrents, ports andbridges constructed by the tate, ban(s, shores, roadsteads, and others of similarcharacter@

'+ 5hose which belong to the tate, without being for public use, and are intendedfor some public service or for the development of the national wealth.

2 2 2.

Art. 1. roperty of public dominion, when no longer intended for public use or forpublic service, shall form part of the patrimonial property of the tate.>

Again, the government must formally declare that the property of public dominion is no longerneeded for public use or public service, before the same could be classified as patrimonial

property of the tate. *:n the case of government reclaimed and marshy lands of the publicdomain, the declaration of their being disposable, as well as the manner of their disposition, is

governed by the applicable provisions of CA No. )1).

"i(e the Civil Code of )%%*, the Civil Code of )*; included as property of public dominionthose properties of the tate which, without being for public use, are intended for publicservice or the >development of the national wealth.> 5hus, government reclaimed and marshylands of the tate, even if not employed for public use or public service, if developed toenhance the national wealth, are classified as property of public dominion.


5he )*$# Constitution, which too( effect on 0anuary )$, )*$#, li(ewise adopted the 7egaliandoctrine. ection %, Article K:4 of the )*$# Constitution stated that

>ec. %. All lands of the public domain, waters, minerals, coal, petroleum and other

mineral oils, all forces of potential energy, fisheries, wildlife, and other naturalresources of the hilippines belong to the tate. ith the e'ception of agriculturalindustrial or commercial residential and resettlement lands of the public domain

natural resources shall not be alienated, and no license, concession, or lease for thee2ploration, development, e2ploitation, or utiliation of any of the natural resourcesshall be granted for a period e2ceeding twenty-five years, renewable for not morethan twenty-five years, e2cept as to water rights for irrigation, water supply,fisheries, or industrial uses other than the development of water power, in whichcases, beneficial use may be the measure and the limit of the grant.> 'Emphasissupplied+

5he )*$# Constitution prohibited the alienation of all natural resources with the e2ception of>agricultural, industrial or commercial, residential, and resettlement lands of the publicdomain.> :n contrast, the )*# Constitution barred the alienation of all natural resourcese2cept >public agricultural lands.> =owever, the term >public agricultural lands> in the )*#Constitution encompassed industrial, commercial, residential and resettlement lands of the

public domain.&;:f the land of public domain were neither timber nor mineral land, it wouldfall under the classification of agricultural land of the public domain.!oth the 835 and 873+onstitutions therefore prohibited the alienation of all natural resources e'cept

agricultural lands of the public domain.

5he )*$# Constitution, however, limited the alienation of lands of the public domain to

individuals who were citiens of the hilippines. rivate corporations, even if wholly ownedby hilippine citiens, were no longer allowed to ac!uire alienable lands of the public domainunli(e in the )*# Constitution. ection )), Article K:4 of the )*$# Constitution declared that

>ec. )). 5he 3atasang ambansa, ta(ing into account conservation, ecological, anddevelopment re!uirements of the natural resources, shall determine by law the sieof land of the public domain which may be developed, held or ac!uired by, or leasedto, any !ualified individual, corporation, or association, and the conditionstherefor.;o private corporation or association may hold alienable lands of the

public domain e'cept by lease not to e2ceed one thousand hectares in area nor mayany citien hold such lands by lease in e2cess of five hundred hectares or ac!uire by

purchase, homestead or grant, in e2cess of twenty-four hectares. No private

corporation or association may hold by lease, concession, license or permit, timberor forest lands and other timber or forest resources in e2cess of one hundredthousand hectares. =owever, such area may be increased by the 3atasang ambansaupon recommendation of the National Economic and 8evelopment Authority.>'Emphasis supplied+

5hus, under the )*$# Constitution, private corporations could hold alienable lands of thepublic domain only through lease. 9nly individuals could now ac!uire alienable lands of thepublic domain, andprivate corporations became absolutely barred from acquiring any Bindof alienable land of the public domain . 5he constitutional ban e2tended to all (inds ofalienable lands of the public domain, while the statutory ban under CA No. )1) applied onlyto government reclaimed, foreshore and marshy alienable lands of the public domain.

( ;o. 8A9< +reating the (ublic )states *uthority


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9n February 1, )*$$, then resident Ferdinand /arcos issued residential 8ecree No. );%1creating EA, a wholly government owned and controlled corporation with a special charter.ections 1 and % of 8 No. );%1, vests EA with the following purposes and powers

>ec. 1. urpose. 5he Authority is hereby created for the following purposes

'a+ #o reclaim land including foreshore and submerged areas by dredgingfilling or other means or to acquire reclaimed land@

'b+ 5o develop, improve, ac!uire, administer, deal in, subdivide, dispose, lease andsell any and all Binds of lands, buildings, estates and other forms of real property,owned, managed, controlled and6or operated by the government@

'c+ 5o provide for, operate or administer such service as may be necessary for theefficient, economical and beneficial utiliation of the above properties.

ec. . owers and functions of the Authority. 5he Authority shall, in carrying outthe purposes for which it is created, have the following powers and functions

'a+5o prescribe its by-laws.

2 2 2

'i+ #o hold lands of the public domainin e2cess of the area permitted to privatecorporations by statute.

'j+ #o reclaim landsand to construct wor( across, or otherwise, any stream,watercourse, canal, ditch, flume 2 2 2.

2 2 2

'o+ 5o perform such acts and e2ercise such functions as may be necessary for theattainment of the purposes and objectives herein specified.> 'Emphasis supplied+

8 No. );%1 authories EA to reclaim both foreshore and submerged areas of the publicdomain. Foreshore areas are those covered and uncovered by the ebb and flow of thetide.&)ubmerged areas are those permanently under water regardless of the ebb and flow ofthe tide.&Foreshore and submerged areas indisputably belong to the public domain and areinalienable unless reclaimed, classified as alienable lands open to disposition, and furtherdeclared no longer needed for public service.

5he ban in the )*$# Constitution on private corporations from ac!uiring alienable lands of thepublic domain did not apply to EA since it was then, and until today, a fully ownedgovernment corporation. 5he constitutional ban applied then, as it still applies now, only to>private corporations and associations.> 8 No. );%1 e2pressly empowers()* to hold

lands of the public domain> even >in e2cess of the area permitted to private corporations bystatute.> #hus ()* can hold title to private lands as well as title to lands of the public

domain.

:n order for EA to sell its reclaimed foreshore and submerged alienable lands of the publicdomain, there must be legislative authority empowering EA to sell these lands. 5hislegislative authority is necessary in view of ection &; of CA No.)1), which states

>ec. &;. 2 2 2@ but the land so granted, donated or transferred to a province,municipality, or branch or subdivision of the Dovernment shall not be alienated,encumbered or otherwise disposed of in a manner affecting its title, e'cept when

authori,ed by +ongress@ 2 2 2.> 'Emphasis supplied+

?ithout such legislative authority, EA could not sell but only lease its reclaimed foreshoreand submerged alienable lands of the public domain. Nevertheless, any legislative authoritygranted to EA to sell its reclaimed alienable lands of the public domain would be subject tothe constitutional ban on private corporations from ac!uiring alienable lands of the publicdomain. =ence, such legislative authority could only benefit private individuals.


5he )*%$ Constitution, li(e the )*# and )*$# Constitutions before it, has adopted the7egalian doctrine. 5he )*%$ Constitution declares that all natural resources are > owned by the

&tate,> and e2cept for alienable agricultural lands of the public domain, natural resourcescannot be alienated. ections and #, Article K:: of the )*%$ Constitution state that

>ection . All lands of the public domain, waters, minerals, coal, petroleum andother mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife,flora and fauna, and other natural resources are owned by the &tate. ith thee'ception of agricultural lands all other natural resources shall not be alienated.5he e2ploration, development, and utiliation of natural resources shall be under thefull control and supervision of the tate. 2 2 2.

ection #. "ands of the public domain are classified into agricultural, forest ortimber, mineral lands, and national par(s. Agricultural lands of the public domainmay be further classified by law according to the uses which they may be

devoted.*lienable lands of the public domain shall be limited to agriculturallands. (rivate corporations or associations may not hold such alienable lands of

the public domain e'cept by lease for a period not e'ceeding twenty%five years

renewable for not more than twenty%five years and not to e'ceed one thousand

hectares in area. Citiens of the hilippines may lease not more than five hundredhectares, or ac!uire not more than twelve hectares thereof by purchase, homestead,or grant.

5a(ing into account the re!uirements of conservation, ecology, and development,and subject to the re!uirements of agrarian reform, the Congress shall determine, bylaw, the sie of lands of the public domain which may be ac!uired, developed, held,or leased and the conditions therefor.> 'Emphasis supplied+

5he )*%$ Constitution continues the tate policy in the )*$# Constitution banning privatecorporations fromacquiring any Bind of alienable land of the public domain. "i(e the )*$#


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Constitution, the )*%$ Constitution allows private corporations to hold alienable lands of thepublic domain only through lease. As in the )*# and )*$# Constitutions, the general lawgoverning the lease to private corporations of reclaimed, foreshore and marshy alienable landsof the public domain is still CA No. )1).

#he 4ationale behind the +onstitutional !an

5he rationale behind the constitutional ban on corporations from ac!uiring, e2cept throughlease, alienable lands of the public domain is not well understood. 8uring the deliberations of

the )*%& Constitutional Commission, the commissioners probed the rationale behind this ban,thus

>F7. 3E7NA /r. 4ice-resident, my !uestions have reference to page #, line which says

PNo private corporation or association may hold alienable lands of the public domaine2cept by lease, not to e2ceed one thousand hectares in area.

. >BAnother area of ,1),* s!uare meters contiguous to the three islands@> and

#. >BAt A/A7:&

EA confirms that the Amended 04A involves >the development of the Freedom :slands andfurther reclamation of about ; hectares 2 2 2,> plus an option >granted to A/A7: tosubse!uently reclaim another #; hectares 2 2 2.>&&

:n short, the Amended 04A covers a reclamation area of $; hectares. 1nly 857.9< hectaresof the 75A%hectare reclamation pro"ect have been reclaimed and the rest of the 5=.85

hectares are still submerged areas forming part of anila !ay.

nder the Amended 04A, A/A7: will reimburse EA the sum of ),%*1,)*,;;.;; for

EAactual cost> in partially reclaiming the Freedom :slands. A/A7: will also complete, atits own e2pense, the reclamation of the Freedom :slands. A/A7: will further shoulder all the


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reclamation costs of all the other areas, totaling *.) hectares, still to be reclaimed. A/A7:and EA will share, in the proportion of $; percent and #; percent, respectively, the total netusable area which is defined in the Amended 04A as the total reclaimed area less #; percentearmar(ed for common areas. 5itle to A/A7:nder the ublic "and Act 'CA )1), as amended+, reclaimed lands are classifiedas alienable and disposable lands of the public domain

&*5he "egal5as( Force concluded that

>8. Conclusion

7eclaimed lands are lands of the public domain. =owever, by statutory authority,the rights of ownership and disposition over reclaimed lands have been transferredto EA, by virtue of which EA, as owner, may validly convey the same to any!ualified person without violating the Constitution or any statute.

5he constitutional provision prohibiting private corporations from holding publicland, e2cept by lease 'ec. #, Art. K4::, $;)*%$ Constitution+, does not apply to

reclaimed lands whose ownership has passed on to EA by statutory grant.>

nder ection , Article K:: of the )*%$ Constitution, the foreshore and submerged areas of/anila 3ay are part of the >lands of the public domain, waters 2 2 2 and other naturalresources> and conse!uently >owned by the tate.> As such, foreshore and submerged areas>shall not be alienated,> unless they are classified as >agricultural lands> of the public domain.5he mere reclamation of these areas by EA does not convert these inalienable naturalresources of the tate into alienable or disposable lands of the public domain. 5here must be alaw or presidential proclamation officially classifying these reclaimed lands as alienable ordisposable and open to disposition or concession. /oreover, these reclaimed lands cannot beclassified as alienable or disposable if the law has reserved them for some public or !uasi-

public use.$)

ection % of CA No. )1) provides that >only those lands shall be declared open to disposition


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or concession which have been officially delimited and classified.>$5he resident has theauthority to classify inalienable lands of the public domain into alienable or disposable landsof the public domain, pursuant to ection & of CA No. )1). :n "aurel vs. Darcia, $#theE2ecutive 8epartment attempted to sell the 7oppongi property in 5o(yo, 0apan, which wasac!uired by the hilippine Dovernment for use as the Chancery of the hilippine Embassy.Although the Chancery had transferred to another location thirteen years earlier, the Court stillruled that, under Article 1$1of the Civil Code, a property of public dominion retains suchcharacter until formally declared otherwise. 5he Court ruled that

>5he fact that the 7oppongi site has not been used for a long time for actualEmbassy service does not automatically convert it to patrimonial property. Any suchconversion happens only if the property is withdrawn from public use 'Cebu 92ygenand Acetylene Co. v. 3ercilles, && C7A 1%) B)*$.* property continues to be

part of the public domain not available for private appropriation or ownership

0until there is a formal declaration on the part of the government to withdraw it

from being such0 ':gnacio v. 8irector of "ands, );% hil. ## B)*&;.> 'Emphasissupplied+

8 No. );%, issued on February 1, )*$$, authoried the issuance of special land patents forlands reclaimed by EA from the foreshore or submerged areas of /anila 3ay. 9n 0anuary)*, )*%% then resident Coraon C. A!uino issued pecial atent No. #)$ in the name ofEA for the )$.%1 hectares comprising the partially reclaimed Freedom :slands.

ubse!uently, on April *, )*** the 7egister of 8eeds of the /unicipality of arana!ue issued5C5 Nos. $#;*, $#)) and $#) in the name of EA pursuant to ection );# of 8 No. )*authoriing the issuance of certificates of title corresponding to land patents. 5o this day, thesecertificates of title are still in the name of EA.

8 No. );%, coupled with resident A!uino 3eing neither timber, mineral, nor national par( lands, thereclaimed Freedom :slands necessarily fall under the classification of agricultural lands of the

public domain. nder the )*%$ Constitution, agricultural lands of the public domain are theonly natural resources that the tate may alienate to !ualified private parties. All other naturalresources, such as the seas or bays, are >waters 2 2 2 owned by the tate> forming part of the

public domain, and are inalienable pursuant to ection , Article K:: of the )*%$ Constitution.

A/A7: claims that the Freedom :slands are private lands because C8C, then a privatecorporation, reclaimed the islands under a contract dated November ;, )*$# with the

Commissioner of ublic =ighways. A/A7:, citing Article of the panish "aw of ?aters of)%&&, argues that >if the ownership of reclaimed lands may be given to the party constructing

the wor(s, then it cannot be said that reclaimed lands are lands of the public domain which thetate may not alienate.>$Article of the panish "aw of ?aters reads as follows

>Article . "ands reclaimed from the sea in conse!uence of wor(s constructed bythe tate, or by the provinces, pueblos or private persons, with proper permission,shall become the property of the party constructing such wor(s, unless otherwise

provided by the terms of the grant of authority.> 'Emphasis supplied+

nder Article of the panish "aw of ?aters of )%&&, private parties could reclaim from the

sea only with >proper permission> from the tate. rivate parties could own the reclaimed landonly if not >otherwise provided by the terms of the grant of authority.> 5his clearly meant thatno one could reclaim from the sea without permission from the tate because the sea is

property of public dominion. :t also meant that the tate could grant or withhold ownership ofthe reclaimed land because any reclaimed land, li(e the sea from which it emerged, belongedto the tate. 5hus, a private person reclaiming from the sea without permission from the tatecould not ac!uire ownership of the reclaimed land which would remain property of publicdominion li(e the sea it replaced. $&Article of the panish "aw of ?aters of )%&& adoptedthe time-honored principle of land ownership that >all lands that were not ac!uired from thegovernment, either by purchase or by grant, belong to the public domain.>$$

Article of the panish "aw of ?aters must be read together with laws subse!uently enactedon the disposition of public lands. :n particular, CA No. )1) re!uires that lands of the public

domain must first be classified as alienable or disposable before the government can alienatethem. 5hese lands must not be reserved for public or !uasi-public purposes. $%/oreover, thecontract between C8C and the government was e2ecuted afterthe effectivity of the )*$#Constitution which barred private corporations from ac!uiring any (ind of alienable land ofthe public domain. 5his contract could not have converted the Freedom :slands into privatelands of a private corporation.

residential 8ecree No. #-A, issued on 0anuary )), )*$#, revo(ed all laws authoriing thereclamation of areas under water and revested solely in the National Dovernment the power toreclaim lands. ection ) of 8 No. #-A declared that

>#he provisions of any law to the contrary notwithstanding, the reclamation ofareas under water, whether foreshore or inland, shall be limited to the ;ational-overnment or any person authori,ed by it under a proper contract. 'Emphasissupplied+

2 2 2.>

8 No. #-A repealed ection of the panish "aw of ?aters of )%&& because reclamation ofareas under water could now be underta(en only by the National Dovernment or by a personcontracted by the National Dovernment. rivate parties may reclaim from the sea only under acontract with the National Dovernment, and no longer by grant or permission as provided inection of the panish "aw of ?aters of )%&&.

E2ecutive 9rder No. , issued on February )1, )*$*, designated EA as the National

Dovernmentall reclamation projects of the government,>which >shall be undertaBen by the ()* or through a proper contract e'ecuted by it with any


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person or entity .> nder such contract, a private party receives compensation for reclamationservices rendered to EA. ayment to the contractor may be in cash, or in (ind consisting of

portions of the reclaimed land, subject to the constitutional ban on private corporations fromac!uiring alienable lands of the public domain. 5he reclaimed land can be used as payment in(ind only if the reclaimed land is first classified as alienable or disposable land open todisposition, and then declared no longer needed for public service.

5he Amended 04A covers not only the Freedom :slands, but also an additional *.)hectares which are still submerged and forming part of /anila 3ay. #here is no legislative or

(residential act classifying these submerged areas as alienable or disposable lands of thepublic domain open to disposition. 5hese submerged areas are not covered by any patent orcertificate of title. 5here can be no dispute that these submerged areas form part of the publicdomain, and in their present state are inalienable and outside the commerce of man. ntilreclaimed from the sea, these submerged areas are, under the Constitution, >waters 2 2 2owned by the tate,> forming part of the public domain and conse!uently inalienable. 9nlywhen actually reclaimed from the sea can these submerged areas be classified as publicagricultural lands, which under the Constitution are the only natural resources that the tatemay alienate. 9nce reclaimed and transformed into public agricultural lands, the governmentmay then officially classify these lands as alienable or disposable lands open to disposition.5hereafter, the government may declare these lands no longer needed for public service. 9nlythen can these reclaimed lands be considered alienable or disposable lands of the publicdomain and within the commerce of man.

5he classification of EAB5o own or operate railroads,tramways and other (inds of land transportation, 2 2 2@ B5o construct, maintain and operatesuch systems of sanitary sewers as may be necessary@ B5o construct, maintain and operatesuch storm drains as may be necessary.> EA is empowered to issue >rules and regulations asmay be necessary for the proper use by private parties of any or all of the highways roadsutilities buildings andEor any of its properties and to impose or collect fees or tolls for theiruse.> 5hus, part of the reclaimed foreshore and submerged lands held by the EA wouldactually be needed for public use or service since many of the functions imposed on EA byits charter constitute essential public services.

/oreover, ection ) of E2ecutive 9rder No. provides that EA >shall be primarilyresponsible for integrating, directing, and coordinating all reclamation projects for and on

behalf of the National Dovernment.> 5he same section also states that >BAll reclamationprojects shall be approved by the resident upon recommendation of the EA, and shall beunderta(en by the EA or through a proper contract e2ecuted by it with any person or entity@ 22 2.> 5hus, under E9 No. , in relation to 8 No. #-A and 8 No.);%1, EA became the

primary implementing agency of the National Dovernment to reclaim foreshore andsubmerged lands of the public domain. E9 No. recognied EA as the government entity>to underta(e the reclamation of lands and ensure their ma2imum utiliation in promoting

public welfare and interests.>$*ince large portions of these reclaimed lands would obviouslybe needed for public service, there must be a formal declaration segregating reclaimed landsno longer needed for public service from those still needed for public service.1wphi1.n/t

ection # of E9 No. , by declaring that all lands reclaimed by EA >shall belong to or be

owned by the EA,> could not automatically operate to classify inalienable lands intoalienable or disposable lands of the public domain. 9therwise, reclaimed foreshore andsubmerged lands of the public domain would automatically become alienable once reclaimed

by EA, whether or not classified as alienable or disposable.

5he 7evised Administrative Code of )*%$, a later law than either 8 No. );%1 or E9 No., vests in the 8epartment of Environment and Natural 7esources '>8EN7> for brevity+ thefollowing powers and functions

>ec. 1. owers and Functions. 5he 8epartment shall

')+ 2 2 2

2 2 2

'1+)'ercise supervision and controlover forest lands, alienable and disposablepublic lands, mineral resources and, in the process of e2ercising such control,impose appropriate ta2es, fees, charges, rentals and any such form of levy andcollect such revenues for the e2ploration, development, utiliation or gathering ofsuch resources@

2 2 2

')1+(romulgate rules regulations and guidelines on the issuance of licensespermits concessions lease agreements and such other privileges concerning the

development e'ploration and utili,ation of the country0s marine freshwater and

bracBish water and over all aquatic resources of the country and shall continue to

oversee supervise and police our natural resources@ cancel or cause to cancel suchprivileges upon failure, non-compliance or violations of any regulation, order, andfor all other causes which are in furtherance of the conservation of natural resourcesand supportive of the national interest@

')+)'ercise e'clusive "urisdiction on the management and disposition of alllands of the public domain and serve as the sole agency responsible for

classification, sub-classification, surveying and titling of lands in consultation withappropriate agencies.>%;'Emphasis supplied+

As manager, conservator and overseer of the natural resources of the tate, 8EN7 e2ercises>supervision and control over alienable and disposable public lands.> 8EN7 also e2ercises>e2clusive jurisdiction on the management and disposition of all lands of the public domain.>5hus, 8EN7 decides whether areas under water, li(e foreshore or submerged areas of /anila3ay, should be reclaimed or not. 5his means that EA needs authoriation from 8EN7 beforeEA can underta(e reclamation projects in /anila 3ay, or in any part of the country.

8EN7 also e2ercises e2clusive jurisdiction over the disposition of all lands of the publicdomain. =ence, 8EN7 decides whether reclaimed lands of EA should be classified asalienable under ections &%)and $%of CA No. )1). 9nce 8EN7 decides that the reclaimedlands should be so classified, it then recommends to the resident the issuance of a


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proclamation classifying the lands as alienable or disposable lands of the public domain opento disposition. ?e note that then 8EN7 ecretary Fulgencio . Factoran, 0r. countersignedpecial atent No. #)$ in compliance with the 7evised Administrative Code and ections &and $ of CA No. )1).

:n short, 8EN7 is vested with the power to authorie the reclamation of areas under water,while EA is vested with the power to underta(e the physical reclamation of areas underwater, whether directly or through private contractors. 8EN7 is also empowered to classifylands of the public domain into alienable or disposable lands subject to the approval of the

resident. 9n the other hand, EA is tas(ed to develop, sell or lease the reclaimed alienablelands of the public domain.

Clearly, the mere physical act of reclamation by EA of foreshore or submerged areas doesnot ma(e the reclaimed lands alienable or disposable lands of the public domain, much less

patrimonial lands of EA. "i(ewise, the mere transfer by the National Dovernment of lands ofthe public domain to EA does not ma(e the lands alienable or disposable lands of the publicdomain, much less patrimonial lands of EA.

Absent two official acts a classification that these lands are alienable or disposable and opento disposition and a declaration that these lands are not needed for public service, landsreclaimed by EA remain inalienable lands of the public domain. 9nly such an officialclassification and formal declaration can convert reclaimed lands into alienable or disposable

lands of the public domain, open to disposition under the Constitution, 5itle : and 5itle :::%#

ofCA No. )1) and other applicable laws.%1

()*0s *uthority to &ell 4eclaimed ands

EA, li(e the "egal 5as( Force, argues that as alienable or disposable lands of the publicdomain, the reclaimed lands shall be disposed of in accordance with CA No. )1), the ublic"and Act. EA, citing ection &; of CA No. )1), admits that reclaimed lands transferred to a

branch or subdivision of the government >shall not be alienated, encumbered, or otherwisedisposed of in a manner affecting its title, e'cept when authori,ed by +ongress 2 22.>%'Emphasis by EA+

:naurel vs. -arcia

,

%&

the Court cited ection 1% of the 7evised Administrative Code of)*%$, which states that

>ec. 1%. 9fficial Authoried to Convey 7eal roperty. ?henever real property ofthe Dovernment is authori,ed by law to be conveyed, the deed of conveyance shall

be e2ecuted in behalf of the government by the following 2 2 2.>

5hus, the Court concluded that a law is needed to convey any real property belonging to theDovernment. 5he Court declared that -

>:t is not for the resident to convey real property of the government on his or herown sole will.*ny such conveyance must be authori,ed and approved by a lawenacted by the +ongress. :t re!uires e2ecutive and legislative concurrence.>

'Emphasis supplied+

EA contends that 8 No. );% and E9 No. constitute the legislative authority allowingEA to sell its reclaimed lands. 8 No. );%, issued on February 1, )*$$, provides that

>#he land reclaimed in the foreshore and offshore area of anila !ay pursuant tothe contract for the reclamation and construction of the /anila-Cavite Coastal 7oadroject between the 7epublic of the hilippines and the Construction and8evelopment Corporation of the hilippines dated November ;, )*$# and6or anyother contract or reclamation covering the same area is hereby transferredconveyed and assigned to the ownership and administration of the (ublic )states

*uthorityestablished pursuant to 8 No. );%1@ rovided, however, 5hat the rightsand interests of the Construction and 8evelopment Corporation of the hilippinespursuant to the aforesaid contract shall be recognied and respected.

=enceforth, the ublic Estates Authority shall e2ercise the rights and assume theobligations of the 7epublic of the hilippines '8epartment of ublic =ighways+arising from, or incident to, the aforesaid contract between the 7epublic of thehilippines and the Construction and 8evelopment Corporation of the hilippines.

:n consideration of the foregoing transfer and assignment, the ublic EstatesAuthority shall issue in favor of the 7epublic of the hilippines the correspondingshares of stoc( in said entity with an issued value of said shares of stoc( 'which+shall be deemed fully paid and non-assessable.

5he ecretary of ublic =ighways and the Deneral /anager of the ublic EstatesAuthority shall e2ecute such contracts or agreements, including appropriateagreements with the Construction and 8evelopment Corporation of the hilippines,as may be necessary to implement the above.

&pecial land patentEpatents shall be issued by the &ecretary of ;atural 4esources

in favor of the (ublic )states *uthority without pre"udice to the subsequent

transfer to the contractor or his assignees of such portion or portions of the land

reclaimed or to be reclaimed as provided for in the above%mentioned contract. 1n

the basis of such patents the and 4egistration +ommission shall issue the

corresponding certificate of title.> 'Emphasis supplied+

9n the other hand, ection # of E9 No. , issued on February )1, )*$*, provides that -

>ec. #.*ll lands reclaimed by ()* shall belong to or be owned by the ()*whichshall be responsible for its administration, development, utiliation or disposition inaccordance with the provisions of residential 8ecree No. );%1. Any and all incomethat the EA may derive from the sale, lease or use of reclaimed lands shall be usedin accordance with the provisions of residential 8ecree No. );%1.>

5here is no e2press authority under either 8 No. );% or E9 No. for EA to sell itsreclaimed lands. 8 No. );% merely transferred >ownership and administration> of landsreclaimed from /anila 3ay to EA, while E9 No. declared that lands reclaimed by EA>shall belong to or be owned by EA.> E9 No. e2pressly states that EA should dispose

of its reclaimed lands >in accordance with the provisions of residential 8ecree No. );%1,> thecharter of EA.


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EAto develop, improve, ac!uire, administer, dealin, subdivide, dispose, lease and sell any and all Binds of lands 2 2 2 owned, managed,controlled and6or operated by the government.>%$'Emphasis supplied+ #here is thereforelegislative authority granted to ()* to sell its lands whether patrimonial or alienable lands

of the public domain. EA may sell to private parties itspatrimonial propertiesin accordancewith the EA charter free from constitutional limitations. 5he constitutional ban on privatecorporations from ac!uiring alienable lands of the public domain does not apply to the sale ofEAcontractor or his assignees> 'Emphasis supplied+ would not apply to privatecorporations but only to individuals because of the constitutional ban. 9therwise, the

provisions of 8 No. );% would violate both the )*$# and )*%$ Constitutions.

#he requirement of public auction in the sale of reclaimed lands

Assuming the reclaimed lands of EA are classified as alienable or disposable lands open todisposition, and further declared no longer needed for public service, EA would have toconduct a public bidding in selling or leasing these lands. EA must observe the provisions ofections and &$ of CA No. )1) re!uiring public auction, in the absence of a law e2emptingEA from holding a public auction.%%pecial atent No. #)$ e2pressly states that the patentis issued by authority of the Constitution and 8 No. );%1, >supplemented by CommonwealthAct No. )1), as amended.> 5his is an ac(nowledgment that the provisions of CA No. )1)apply to the disposition of reclaimed alienable lands of the public domain unless otherwise

provided by law. E2ecutive 9rder No. &1,%*which authories EA >to determine the (ind andmanner of payment for the transfer> of its assets and properties, does not e2empt EA from

the re!uirement of public auction. E9 No. &1 merely authories EA to decide the mode ofpayment, whether in (ind and in installment, but does not authorie EA to dispense withpublic auction.

/oreover, under ection $* of 8 No. )11, otherwise (nown as the Dovernment AuditingCode, the government is re!uired to sell valuable government property through public bidding.ection $* of 8 No. )11 mandates that

>ection $*. hen government propertyhas become unserviceable for any cause,or is no longer needed, it shall, upon application of the officer accountable therefor,

be inspected by the head of the agency or his duly authoried representative in thepresence of the auditor concerned and, if found to be valueless or unsaleable, it maybe destroyed in their presence.$f found to be valuable it may be sold at public

auction to the highest bidderunder the supervision of the proper committee onaward or similar body in the presence of the auditor concerned or other authoried

representative of the Commission, after advertising by printed notice in the 1fficial-a,ette or for not less than three consecutive days in any newspaper of general

circulation, or where the value of the property does not warrant the e2pense ofpublication, by notices posted for a li(e period in at least three public places in thelocality where the property is to be sold.$n the event that the public auction failsthe property may be sold at a private sale at such price as may be fi'ed by the

same committee or body concerned and approved by the +ommission.>

:t is only when the public auction fails that a negotiated sale is allowed, in which case the

Commission on Audit must approve the selling price.

*;

5he Commission on Audit implementsection $* of the Dovernment Auditing Code through Circular No. %*-*&*)dated 0anuary $,)*%*. 5his circular emphasies that government assets must be disposed of only through

public auction, and a negotiated sale can be resorted to only in case of >failure of publicauction.>

At the public auction sale, only hilippine citiens are !ualified to bid for EArivate corporations or associations may not hold such alienable lands of the publicdomain e2cept by lease, 2 2 2.> Even 7epublic Act No. &*$ '>395 "aw,> for brevity+, cited

by EA and A/A7: as legislative authority to sell reclaimed lands to private parties,recognies the constitutional ban. ection & of 7A No. &*$ states

>ec. &. 7epayment cheme. - For the financing, construction, operation andmaintenance of any infrastructure projects underta(en through the build-operate-and-transfer arrangement or any of its variations pursuant to the provisions of thisAct, the project proponent 2 2 2 may li(ewise be repaid in the form of a share in therevenue of the project or other non-monetary payments, such as, but not limited to,


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the grant of a portion or percentage of the reclaimed land, sub"ect to theconstitutional requirements with respect to the ownership of the land 2 2 2.>'Emphasis supplied+

A private corporation, even one that underta(es the physical reclamation of a government395 project, cannot ac!uire reclaimed alienable lands of the public domain in view of theconstitutional ban.

ection #; of the "ocal Dovernment Code, also mentioned by EA and A/A7:, authories

local governments in land reclamation projects to pay the contractor or developer in (indconsisting of a percentage of the reclaimed land, to wit

>ection #;. Financing, Construction, /aintenance, 9peration, and /anagement of:nfrastructure rojects by the rivate ector. 2 2 2

2 2 2

:n case of land reclamation or construction of industrial estates, the repayment planmay consist of the grant of a portion or percentage of the reclaimed land or theindustrial estate constructed.>

Although ection #; of the "ocal Dovernment Code does not contain a proviso similar tothat of the 395 "aw, the constitutional restrictions on land ownership automatically applyeven though not e2pressly mentioned in the "ocal Dovernment Code.

5hus, under either the 395 "aw or the "ocal Dovernment Code, the contractor or developer,if a corporate entity, can only be paid with leaseholds on portions of the reclaimed land. :f thecontractor or developer is an individual, portions of the reclaimed land, not e2ceeding )hectares*&of non-agricultural lands, may be conveyed to him in ownership in view of thelegislative authority allowing such conveyance. 5his is the only way these provisions of the395 "aw and the "ocal Dovernment Code can avoid a direct collision with ection #, ArticleK:: of the )*%$ Constitution.

4egistration of lands of the public domain

Finally, EA theories that the >act of conveying the ownership of the reclaimed lands topublic respondent EA transformed such lands of the public domain to private lands.> 5histheory is echoed by A/A7: which maintains that the >issuance of the special patent leading tothe eventual issuance of title ta(es the subject land away from the land of public domain andconverts the property into patrimonial or private property.> :n short, EA and A/A7: contendthat with the issuance of pecial atent No. #)$ and the corresponding certificates of titles,the )$.%1 hectares comprising the Freedom :slands have become private lands of EA. :nsupport of their theory, EA and A/A7: cite the following rulings of the Court

). Sumail v. Judge of *0" of *otabato,*$where the Court held

>9nce the patent was granted and the corresponding certificate of title was issued,the land ceased to be part of the public domain and became private property over

which the 8irector of "ands has neither control nor jurisdiction.>

.)ee ong o2 v. avid,*%where the Court declared -

>After the registration and issuance of the certificate and duplicate certificate of titlebased on a public land patent, the land covered thereby automatically comes underthe operation of 7epublic Act 1*& subject to all the safeguards providedtherein.>#.eirs of 3regorio $engco v. eirs of Jose %liwalas,**where the Courtruled -

>?hile the 8irector of "ands has the power to review homestead patents, he may doso only so long as the land remains part of the public domain and continues to beunder his e2clusive control@ but once the patent is registered and a certificate of titleis issued, the land ceases to be part of the public domain and becomes private

property over which the 8irector of "ands has neither control nor jurisdiction.>

1.Manalo v. "ntermediate %ppellate *ourt,);; where the Court held

>?hen the lots in dispute were certified as disposable on /ay )*, )*$), and freepatents were issued covering the same in favor of the private respondents, the saidlots ceased to be part of the public domain and, therefore, the 8irector of "ands lost

jurisdiction over the same.>

.7epublic v. Court of Appeals,);)where the Court stated

>roclamation No. #;, dated 9ctober *, )*&, of resident /agsaysay legallyeffected a land grant to the /indanao /edical Center, 3ureau of /edical ervices,8epartment of =ealth, of the whole lot, validly sufficient for initial registrationunder the "and 7egistration Act. uch land grant is constitutive of a


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:n the instant case, the only patent and certificates of title issued are those in the name of EA,a wholly government owned corporation performing public as well as proprietary functions.

No patent or certificate of title has been issued to any private party. No one is as(ing the8irector of "ands to cancel EAe2cept when authoried by Congress,> thesale of alienable lands of the public domain that are transferred to government units or entities.ection &; of CA No. )1) constitutes, under ection 11 of 8 No. )*, a >statutory lienaffecting title> of the registered land even if not annotated on the certificate oftitle.);1Alienable lands of the public domain held by government entities under ection &; of

CA No. )1) remain public lands because they cannot be alienated or encumbered unlessCongress passes a law authoriing their disposition. Congress, however, cannot authorie thesale to private corporations of reclaimed alienable lands of the public domain because of theconstitutional ban. 9nly individuals can benefit from such law.

5he grant of legislative authority to sell public lands in accordance with ection &; of CA No.)1) does not automatically convert alienable lands of the public domain into private or

patrimonial lands. 5he alienable lands of the public domain must be transferred to !ualifiedprivate parties, or to government entities not tas(ed to dispose of public lands, before theselands can become private or patrimonial lands. 9therwise, the constitutional ban will becomeillusory if Congress can declare lands of the public domain as private or patrimonial lands inthe hands of a government agency tas(ed to dispose of public lands. 5his will allow privatecorporations to ac!uire directly from government agencies limitless areas of lands which, prior

to such law, are concededly public lands.

nder E9 No. , EA became the central implementing agencyof the NationalDovernment to reclaim foreshore and submerged areas of the public domain. 5hus, E9 No. declares that

>EKEC5:4E 978E7 N9.

8esignating the ublic Estates Authority as the Agency rimarily 7esponsible forall 7eclamation rojects

?hereas, there are several reclamation projects which are ongoing or beingproposed to be underta(en in various parts of the country which need to be evaluatedfor consistency with national programs@

?hereas, there is a need to give further institutional support to the Dovernment


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As the central implementing agency tas(ed to underta(e reclamation projects nationwide, withauthority to sell reclaimed lands, EA too( the place of 8EN7 as the government agencycharged with leasing or selling reclaimed lands of the public domain. 5he reclaimed lands

Documents

Compilation of Environmental Law Full Text