Don Pepe vs David

7/24/2019 Don Pepe vs David

1/12

DON PEPE HENSON G.R. No. 140496

ENTERPRISE, represented

by its Managing-Partner,

MR. ARISTIDES R. SUAREZ,

Petitioners, Present:

PANGANIBAN,J., Chairman,

- versus - SANDOVAL-G!I"##"$,%

&O#ONA, and

&A#PIO MO#AL"S,JJ.

MARIANO DAVID, JUAN Pr'(u)gated:

PANGILINAN, MARCIAL

DAYRIT, an MEL!UIADES

DE GUZMAN, Respondents. August *+,

/ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -/

D E C I S I O N

CARPIO MORALES,J."

Petiti'ner D'n Pepe 0ens'n "nterprise, represented by its (anagingpartner Aristides #. Suare1, appea)s 2r'( t3e de4isi'n '2 t3e &'urt '2

Appea)s in &A-G.#. SP N'. ++56, 7D'n Pepe 0ens'n "nterprise v.

Marian' David, et a).8

Petiti'ner, a partners3ip, is t3e registered '9ner '2 a par4e) '2

agri4u)tura) )and 4'vered by !rans2er &erti2i4ate '2 !it)e !&!; N'. + 3e4tares, and )'4ated at Barangay Pa(pang, Ange)es &ity.

A p'rti'n '2 t3e )and, 9it3 an aggregate area '2


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!3at a )and)'rd-tenant re)ati'ns3ip e/ists bet9een t3e parties 9as

sett)ed by t3is &'urt inDon Pepe Henson Enterprises v.

PangilinanC*93erein 3erein resp'ndents 9ere 3e)d t' be entit)ed t' se4urity

'2 tenure as tenants. During t3e penden4y '2 t3at 4ase, 3'9ever, t3e p'rti'n

ti))ed by resp'ndents 9as p)a4ed under t3e Operati'n Land !rans2er Pr'gra('2 t3e Depart(ent '2 Agrarian #e2'r( DA#; pursuant t' P.D. N'. +, t3e

!enant "(an4ipati'n De4ree, resu)ting in t3e issuan4e '2 &erti2i4ates '2

Land !rans2er in 2av'r '2 resp'ndents. !3e 4'rresp'nding "(an4ipati'n

Patents and !rans2er &erti2i4ates '2 !it)e 9ere 4'nseuent)y issued in

resp'ndents? na(e.

M'nt3s a2ter t3e pr'(u)gati'n '2 t3is &'urt?s de4isi'n in Don Pepe

Henson

C

, petiti'ner 2i)ed 'n Septe(ber =, *>66 a 4'(p)aint, 93i43 9as)ater a(ended, 2'r 7De4)arati'n '2 Nu))ity, Vi')ati'n '2 P.D. N'. 6*5 and

Da(ages8 against resp'ndents be2're t3e Depart(ent '2 Agrarian #e2'r(

AdEudi4ati'n B'ard DA#AB; #egi'na) O22i4e III in San Fernand',

Pa(panga.

In its 4'(p)aint, petiti'ner raised 2'ur 4auses '2 a4ti'n.

F'r its 2irst 4ause '2 a4ti'n, petiti'ner 43a))enged t3e 4'verage '2 its

)and under P.D. N'. +, it a))eging t3at t3e )and is dev'ted t' sugar4anepr'du4ti'n and is, t3ere2're, 'utside t3e 4'verage '2 said )a9 93i43 app)ies

'n)y t' 7private agri4u)tura) )ands pri(ari)y dev'ted t' ri4e and 4'rn8 t3at

t3e )and is e/e(pt 2r'( P.D. N'. + as it is n't '9ned by t3e partners3ip but

by ea43 '2 t3e partners in 4'(('n, ea43 '2 93'( is entit)ed t' t3e retenti'n

)i(it '2 + 3e4tares t3at t3e issuan4e '2 &erti2i4ates '2 Land !rans2er, t3e

survey by t3e Bureau '2 Lands '2 t3e p'rti'n '2 t3e )and a9arded t'

resp'ndents, and t3e issuan4e '2 "(an4ipati'n Patents are nu)) and v'id,

pri'r n'ti4e t3ere'2 t' petiti'ner n't 3aving been given.

F'r its se4'nd 4ause '2 a4ti'n, petiti'ner 4'(p)ained ab'ut

resp'ndents n't paying renta)s n'r s3aring t3eir 3arvest, t3us 2'r2eiting t3eir

&erti2i4ates '2 Land !rans2er pursuant t' P.D. N'. 6*5, 7P#OVIDING

!0A! !"NAN!-FA#M"#SHAG#I&L!#AL L"SS""S S0ALL PA
http://sc.judiciary.gov.ph/jurisprudence/2004/aug2004/140496.htm#_ftn2http://sc.judiciary.gov.ph/jurisprudence/2004/aug2004/140496.htm#_ftn3http://sc.judiciary.gov.ph/jurisprudence/2004/aug2004/140496.htm#_ftn2http://sc.judiciary.gov.ph/jurisprudence/2004/aug2004/140496.htm#_ftn3


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!0" L"AS"0OLD #"N!ALS J0"N !0" FALL D" AND

P#OVIDING P"NAL!I"S !0"#"FO#.8

As its t3ird 4ause '2 a4ti'n, petiti'ner uesti'ned t3e 2'r(ati'n '2 t3e

Barangay &'((ittee 'n Land Pr'du4ti'n as 9e)) as its va)uati'n '2 t3e )and,it a))eging t3at t3e said 4'((ittee 9as 'rgani1ed 9it3'ut n'ti4e t' petiti'ner

and t3e 4'((ittee?s va)uati'n '2 t3e )and 9as (ade t3r'ug3 4'))usi'n 9it3

e(p)'yees '2 t3e DA#.

Fina))y, 2'r its 2'urt3 4ause '2 a4ti'n, petiti'ner 4)ai(ed 2'r da(ages.

#esp'ndents, in t3eir Ans9er 9it3 &'unter4)ai(, 4)ai(ed, a('ng

't3er t3ings, t3at 93i)e t3e bu)K '2 petiti'ner?s )and is dev'ted t' sugar4ane,t3eir 2ar(3')ding is 4'vered by P.D. N'. + be4ause it 3as a)9ays been

dev'ted t' pa)ay and vegetab)es, it 4iting t3e de4isi'n inDon Pepe

HensonC=and t3e prin4ip)e '2 4'n4)usiveness '2 Eudg(ent.

On t3eir 2ai)ure t' pay renta)s, resp'ndents 4)ai(ed t3at t3ey a4tua))y

'22ered t' pay t3e( t' petiti'ner 93i43, did n't, 3'9ever, a44ept t3e sa(e, it

3aving re2used t' re4'gni1e t3e( as tenants, t3us dra9ing t3e( t' 4'nsign

t3e renta)s in 4'urt. #esp'ndents t3us 4'n4)uded t3at sin4e P.D. N'. 6*5

'n)y 4'nte(p)ates deliberaten'n-pay(ent, t3ey 4ann't be divested '2 t3eir2ar(3')ding.

As 2'r petiti'ner?s a))egati'n t3at it 9as n't in2'r(ed '2 t3e 2'r(ati'n

'2 t3e Barangay &'((ittee 'n Land Pr'du4ti'n as 9e)) as its 4)ai( t3at t3e

va)uati'n '2 t3e )and 9as 2raudu)ent)y (ade, resp'ndents denied t3e sa(e.

!3e Pr'vin4ia) AdEudi4at'r, by De4isi'n '2 * February *>>,

rendered Eudg(ent in 2av'r '2 petiti'ner, t3e disp'sitive p'rti'n '2 93i43reads:

7J0"#"FO#", IN VI"J OF ALL !0" FO#"GOING,Eudg(ent is 3ereby rendered in 2av'r '2 t3e p)ainti22 and against t3e

de2endants, as 2'))'9s:
http://sc.judiciary.gov.ph/jurisprudence/2004/aug2004/140496.htm#_ftn4http://sc.judiciary.gov.ph/jurisprudence/2004/aug2004/140496.htm#_ftn4


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*; De4)aring t3e 4'verage '2 de2endants? )and3')dings under P.D. N'.

+ and t3e &erti2i4ates '2 Land !rans2er and "(an4ipati'n Patentsissued t' t3e( as nu)) and v'id

; De4)aring t3e de2endants t' 3ave 2'r2eited t3eir respe4tive rig3ts

'ver t3e subEe4t )and3')dings=; Ordering t3e de2endants t' va4ate pea4e2u))y t3eir respe4tive

)and3')dings and surrender p'ssessi'n t3ere'2 t' p)ainti22

; Ordering de2endants t' pay p)ainti22 * 4avans per 3e4tareHperannu( as )ease renta)s 2'r agri4u)tura) years *>66 t' *>>* every

year t3erea2ter, up t' and unti) t3ey 2ina))y va4ate t3e subEe4t

)and3')dings


5/12

!3e DA#AB, by De4isi'n '2 O4t'ber , *>>+, reversed t3e de4isi'n

'2 t3e Pr'vin4ia) AdEudi4at'r and dis(issed t3e 4'(p)aint '2 petiti'ner.

Petiti'ner t3us appea)ed t' t3e &'urt '2 Appea)s 'n t3e 2'))'9ing

gr'unds:

*; !0A! !0" 0ONO#ABL" ADDI&A!ION BOA#D

G#AV"L ABS"D I!S DIS"!ION AMON!ING !O LA& OF#ISDI&!ION IN D"&LA#ING !0A! !0" LAND SB"&! OF

!0" &AS" JAS P#OP"#L AND L"GALL &OV"#"D ND"# P.D.

NO. +, D"SPI!" !0" &L"A# ADMISSION OF D"NIAL OF D"

P#O&"SS

; !0A! !0" 0ONO#ABL" ADDI&A!ION BOA#D

G#AV"L ABS"D I!S DIS"!ION AMON!ING !O LA& OF#ISDI&!ION IN D"&LA#ING !0A! !0" #"SPOND"N!S DID

NO! VIOLA!" P#"SID"N!IAL D""" NO. 6*5, B APPLING

I!S OJN &ON&LSION AS I!S BASIS #A!0"# !0AN !0""VID"N&" P#"S"N!"D AND

=; !0A! !0" 0ONO#ABL" ADDI&A!ION BOA#D 0AS

IND""D ABS"D I!S DIS"!ION AMON!ING !O LA& OF#ISDI&!ION IN #"V"#SING !0" D"&ISION OF !0"

P#OVIN&IAL ADDI&A!O# JI!0O! AN S!IFIABL" BASIS

IN LAJ AND IN FA&!.

By De4isi'n '2 une >, *>>>, t3e &'urt '2 Appea)s, sustaining t3e

2inding t3at t3e 2ar(3')ding '2 resp'ndents 9as 4'vered by P.D. N'. +,

3e)d, 3'9ever, t3at t3e issuan4e '2 t3e &erti2i4ates '2 Land !rans2er,

"(an4ipati'n Patents, and !&!s t' resp'ndents 9as vitiated due t' t3e

vi')ati'n '2 petiti'ner?s rig3t t' due pr'4ess.

Signi2i4ant)y, t3e appe))ate 4'urt a)s' 3e)d t3at t3ere is n' pr''2 t3at

t3e 2ar(3')ding 3as been paid 2'r by resp'ndents 93' 7d' n'Ct even see(

t' Kn'9 3'9 (u43 t3ey paid and 2'r 3'9 (any years.8 N'net3e)ess, t3eappe))ate 4'urt 3e)d t3at resp'ndents 4ann't be eEe4ted be4ause t3ey 9ere

dee(ed '9ners t3ere'2 up'n t3e e22e4tivity '2 P.D. N'. + 'n * O4t'ber

*>+, it 4itingLocsin v. ValenzuelaC93I43 3e)d:

7/ / / It 2'))'9s t3at in respe4t '2 )and subEe4ted t' Operati'n

Land !rans2er, t3e tenants-2ar(ers be4a(e '9ners '2 t3e )and t3ey ti))ed


6/12

as '2 t3e e22e4tive date '2 Presidentia) De4ree N'. +, i.e., * O4t'ber

*>+. Pending 2u)) pay(ent '2 t3e 4'st '2 t3e )and t' t3e ')d )and'9ner by

t3e Land BanK '2 t3e P3i)ippines, t3e )ease3')d syste( 9as pr'visi'na))y(aintained but t3e )ease renta)s paid by t3e tenants-2ar(ers pri'r t'

su43 2u)) pay(ent by t3e Land BanK t' t3e ')d )and'9ner, 9'u)d be

4redited n' )'nger as renta)s but rat3er as a('rti1ati'n pay(ents '2 t3epri4e '2 t3e )and, t3e un-a('rti1ed p'rti'n being payab)e by t3e Land

BanK. In respe4t '2 )ands br'ug3t 9it3in t3e 4'verage '2 Operati'n Land

!rans2er, t3e )ease3')d syste( 9as )ega))y and e22e4tive)y ter(inatedi((ediate)y 'n * O4t'ber *>+ n't9it3standing t3e 4uri'us state(ent

in Depart(ent &ir4u)ar N'. 6 t3at it 9as pr'visi'na))y (aintained;. / / /

8C


7/12

; !0A! !0" 0ONO#ABL" &O#! OF APP"ALS G#AV"L

ABS"D I!S DIS"!ION AMON!ING !O LA& OF

#ISDI&!ION J0"N I! #"FS"D !O APPL P.D. NO. 6*5 AND""&! !0" #"SPOND"N!S F#OM P"!I!ION"#?S LAND, D"SPI!"

!0" &L"A# P#ONON&"M"N! OF !0" LAJ AND "IS!ING

"VID"N&" ON #"&O#D. nders4'ring supp)ied;

Petiti'ner prays 2'r t3e ('di2i4ati'n '2 t3e 43a))enged de4isi'n su43

t3at t3e i(p'siti'n '2 a ua)i2i4ati'n 'n t3e annu)(ent '2 t3e &erti2i4ates '2

Land !rans2er, "(an4ipati'n Patents and !&!s, t3at it is 79it3'ut

preEudi4e t' Cresp'ndents? app)ying 2'r t3e issuan4e '2 ne9 patents and

4erti2i4ates t' t3e(, a2ter 'bservan4e '2 due pr'4ess '2 )a9,8 be de)eted, and

t3at resp'ndents be 'rdered eEe4ted.

Jit3 regard t' t3e 2irst gr'und t' 93i43 t3e present petiti'n is

an43'red, t3is &'urt 3')ds t3at 93i)e it is undisputed t3at t3e bu)K '2 t3e *>-

3e4tare )and '2 petiti'ner is dev'ted t' sugar4ane pr'du4ti'n, t3e ; 3e4tares are dev'ted t' sugar4anepr'du4ti'n.8C5 nders4'ring supp)ied;

Petiti'ner?s atte(pt t' s3'9 t3at t3e 2ar(3')ding a9arded t'

resp'ndents is e/e(pt 2r'( t3e 4'verage '2 P.D. N'. + in )ig3t '2 its si1e,

2ai)s.

J3i)e t3e 2ar(3')ding 4'ntains 'n)y


8/12

't3er urban purp'ses 2r'( 93i43 t3ey derive adeuate in4'(e t' supp'rt

t3e(se)ves and t3eir 2a(i)ies.8 nders4'ring and e(p3asis supp)ied;

I2 t3e


9/12

Petiti'ner d'es n't state spe4i2i4a))y 93at se4ti'n '2 P.D. N'. 6*5 it is

inv'King. It is gat3ered 2r'( t3e 4'nte/t '2 t3e petiti'n, 3'9ever, t3at it is

re2erring t' Se4ti'n t3ere'2 93i43 reads:

7S"&!ION . !3at any agri4u)tura) )essee '2 a ri4e 'r 4'rn )andunder Presidentia) De4ree N'. + 93' de)iberate)y re2uses andH'r

4'ntinues t' re2use t' pay t3e renta)s 'r a('rti1ati'n pay(ents 93en t3ey

2a)) due 2'r a peri'd '2 t9' ; years s3a)), up'n 3earing and 2ina)

Eudg(ent, 2'r2eit t3e &erti2i4ate '2 Land !rans2er issued in 3is 2av'r, i2 3is2ar(3')ding is a)ready 4'vered by su43 &erti2i4ate '2 Land !rans2er and

3is 2ar(3')ding8 nders4'ring supp)ied;

!3e &'urt '2 Appea)s, in its 43a))enged de4isi'n, 3e)d:

. . . C!3ere is n' pr''2 t3at t3e petiti'ner 3as been paid 2'r its )and. !3e

resp'ndents d' n' sic; even see( t' Kn'9 3'9 (u43 t3ey paid and 2'r

3'9 (any years. In 2a4t, t3ey are sti)) insisting t3at t3ey are dep'sitingQrenta)s? in 4'urt.C**

J3i)e t3e appe))ate 4'urt did n't state 93et3er t3e 2ai)ure t' pay 9as

de)iberate andH'r 4'ntinu'us, as re2)e4ted ab've, petiti'ner 2i)ed t3e

4'(p)aint be2're t3e DA#AB #egi'na) O22i4e III as 2ar ba4K as Septe(ber

=, *>66. N' pr''2 '2 pay(ent 3aving been pr'22ered and given a2ter t3e

)apse '2 a 4'nsiderab)e )engt3 '2 ti(e 2r'( t3e 2i)ing '2 t3e 4'(p)aint, it 4an

be assu(ed t3at n' pay(ent 3as been (ade and t3at su43 2ai)ure t' pay 9as

eit3er de)iberate 'r 4'ntinuing, 'r b't3.

#esp'ndents 3ave asserted t3'ug3 t3at t3ey 3ave been paying t3r'ug3

4'nsignati'n by dep'siting renta)s in 4'urt. !3e appe))ate 4'urt 9as n't

4'nvin4ed, 3'9ever, '2 t3e vera4ity '2 su43 4)ai(, and neit3er is t3is &'urt,

n' d'4u(entary eviden4e 3aving been presented in supp'rt t3ere'2.

!3ere being t3en a de)iberate andH'r 4'ntinuing re2usa) t' pay

a('rti1ati'n pay(ents, P.D. N'. 6*5 app)ies. It s3'u)d be n'ted, 3'9ever,

t3at Se4ti'n t3ere'2 4'vers 'n)y t3'se 2ar(3')dings 7a)ready 4'vered by

su43 &erti2i4ate '2 Land !rans2er8.


10/12

In t3e present 4ase, t3e &'urt '2 Appea)s ru)ed t3at t3e &erti2i4ates '2

Land !rans2er, "(an4ipati'n Patents, and !&!s issued t' resp'ndents 9ere

vitiated due t' t3e vi')ati'n '2 petiti'ner?s rig3t t' due pr'4ess, and s3'u)d,

t3ere2're, be annu))ed. Sin4e t3is parti4u)ar ru)ing is n't being 43a))engedby any party, t3ere appears t' be n' reas'n t' disturb it.

!3e &erti2i4ates '2 Land !rans2er, "(an4ipati'n Patents and !&!s

being v'id t3en, it 9'u)d be in4'ngru'us t' app)y Se4ti'n '2 P.D. N'.

6*5. J3at s3'u)d app)y instead is Se4ti'n = '2 t3e sa(e )a9 93i43 reads:

7S"&!ION =. !3at any agri4u)tura) )essee 93'se )and3')ding

is n't yet 4'vered by a &erti2i4ate '2 Land !rans2er and 93' s3a)) 4'ntinue

n't t' pay 3is )ease renta)s 'r a('rti1ati'n pay(ents 93en t3ey 2a)) due2'r a peri'd '2 t9' ; years t' t3e )and'9nerHagri4u)tura) )ess'r s3a)),

up'n pr'per 3earing and Eudg(ent, $o&% '(& #()'* *o +% (&&% aC%#*(-(a*% o- Lan T#an&-%# n%# P#%&(%n*(a$ D%#%% No. / an '(&

-a#'o$(n)8 "(p3asis and unders4'ring supp)ied;

!3ere2're, in s' 2ar as t3at t3e appe))ate 4'urt a))'9ed resp'ndents t'

app)y 2'r ne9 patents and 4erti2i4ates, its de4isi'n is n't in a44'rdan4e 9it3

Se4ti'n = '2 P.D. N'. 6*5 93i43 'perates t' deprive resp'ndents '2 t3eir

7rig3t t' be issued &erti2i4ateCs '2 Land !rans2er under P.D. N'. + and

Ct3eir 2ar(3')ding.8 On t3is s4're, resp'ndents? eEe4t(ent is pr'per.

J3i)e inLocsinC*t3e pertinent p'rti'n '2 93i43 9as pri'r)y u'ted,

t3is &'urt 3e)d t3at tenant-2ar(ers 4'vered by P.D. N'. + 9ere dee(ed

'9ners '2 t3e )and t3ey ti))ed as '2 O4t'ber *, *>+, t3e date '2 e22e4tivity

'2 t3e said de4ree, in resp'ndents? 4ase, 93i)e t3ey )iKe9ise 9ere dee(ed

'9ners '2 t3eir 2ar(3')ding, t3eir 7'9ners3ip8 9as subEe4t t' t3e pr'visi'n

'2 P.D. N'. 6*5, Se4ti'n =, 93i43 t3ey vi')ated.

2HERE3ORE, t3e 43a))enged de4isi'n '2 t3e &'urt '2 Appea)s is

3ereby A33IRMED (*' *'% MODI3ICATIONt3at t3e annu)(ent '2

resp'ndents? &erti2i4ates '2 Land !rans2er, "(an4ipati'n Patents, and

!rans2er &erti2i4ates '2 !it)e 4'vering t3eir 2ar(3')ding is JI!0


11/12

P#"DI&" t' t3eir app)ying 2'r ne9 patents and 4erti2i4ates, and t3ey are

'rdered t' pea4e2u))y va4ate t3eir 2ar(3')ding.

SO ORDERED.

CONCHITA CARPIO MORALES

ssociate Justice

J" &ON:

ARTEMIO V. PANGANI5AN

ssociate Justice

Chairman

ON L"AV";

ANGELINA SANDOVALGUTIERREZ

ssociate Justice

RENATO C. CORONA

ssociate Justice

ATTESTATION

I attest t3at t3e 4'n4)usi'ns in t3e ab've De4isi'n 9ere rea43ed in

4'nsu)tati'n be2're t3e 4ase 9as assigned t' t3e 9riter '2 t3e 'pini'n '2 t3e

&'urt?s Divisi'n.

ARTEMIO V. PANGANI5AN


12/12

ssociate Justice

Chairman

CERTI3ICATION

Pursuant t' Arti4)e VIII, Se4ti'n *= '2 t3e &'nstituti'n, and t3e

Divisi'n &3air(an?s Attestati'n, it is 3ereby 4erti2ied t3at t3e 4'n4)usi'ns in

t3e ab've De4isi'n 9ere rea43ed in 4'nsu)tati'n be2're t3e 4ase 9as

assigned t' t3e 9riter '2 t3e 'pini'n '2 t3e &'urt.

HILARIO G. DAVIDE, JR.

Chie! Justice

% On Leave.C* *5* SA 56+ *>66;.C "d.C= "d.C *> SA *> *>>*;.C

Documents

Don Pepe vs David