The Supreme Court ruled that the Department of Agrarian Reform Adjudication Board (DARAB) only has jurisdiction over cases involving agrarian disputes. This means that disputes must involve tenurial arrangements between landowners and tenants or farmworkers. If a case involves the administrative implementation of agrarian reform laws without an underlying agrarian dispute, the DAR Secretary, not the DARAB, has jurisdiction. This decision clarifies the scope of DARAB’s authority and ensures that cases are handled by the appropriate administrative body. The Court emphasized that a claim of land ownership alone, without evidence of a landlord-tenant relationship or similar tenurial arrangement, is insufficient to establish DARAB’s jurisdiction.

Land Ownership vs. Agrarian Reform: Who Decides?

This case revolves around a dispute over a parcel of land in Masbate. Delia Sutton, the petitioner, claimed ownership of the land, asserting that it was private property inherited from her father. She challenged the Certificate of Land Ownership Award (CLOA) granted to Romanito P. Lim and his sons (private respondents), arguing that the land was not subject to the Comprehensive Agrarian Reform Program (CARP). The central legal question is whether the DARAB has jurisdiction to hear a case for cancellation of a CLOA when there is no agrarian dispute, such as a landlord-tenant relationship, between the parties.

The legal framework governing this issue is primarily found in Republic Act (R.A.) No. 6657, the Comprehensive Agrarian Reform Law, and the DARAB Rules of Procedure. Section 1, Rule II of the 1994 DARAB Rules of Procedure outlines the Board’s jurisdiction, stating:

Section 1. Primary and Exclusive Original and Appellate Jurisdiction. The Board shall have primary and exclusive jurisdiction, both original and appellate, to determine and adjudicate all agrarian disputes involving the implementation of the Comprehensive Agrarian Reform Program (CARP) under Republic Act No. 6657, Executive Order Nos. 228, 229 and 129-A, Republic Act No. 3844 as amended by Republic Act No. 6389, Presidential Decree No. 27 and other agrarian laws and their implementing rules and regulations. Specifically, such jurisdiction shall include but not be limited to cases involving following:

x x x

f) Those involving the issuance, correction and cancellation of Certificates of Land Ownership Award (CLOAs) and Emancipation Patents (EPs) which are registered with the Land Registration Authority;

x x x

However, the Supreme Court has consistently held that the DARAB’s jurisdiction over CLOA cancellation cases is contingent upon the existence of an agrarian dispute. As the Court stated in Heirs of Dela Cruz v. Heirs of Cruz and reiterated in Bagongahasa v. Spouses Cesar Caguin:

The Court agrees with the petitioners’ contention that, under Section 2(f), Rule II of the DARAB Rules of Procedure, the DARAB has jurisdiction over cases involving the issuance, correction and cancellation of CLOAs which were registered with the LRA. However, for the DARAB to have jurisdiction in such cases, they must relate to an agrarian dispute between landowner and tenants to whom CLOAs have been issued by the DAR Secretary. The cases involving the issuance, correction and cancellation of the CLOAs by the DAR in the administrative implementation of agrarian reform laws, rules and regulations to parties who are not agricultural tenants or lessees are within the jurisdiction of the DAR and not the DARAB.

The Court emphasized that the mere involvement of a CLOA cancellation is insufficient; an agrarian dispute is essential for DARAB jurisdiction. An agrarian dispute, as defined in Section 3(d) of R.A. No. 6657, involves controversies relating to tenurial arrangements over agricultural lands. These arrangements can take various forms, but they all share the common element of a relationship between a landowner and a tenant, lessee, or farmworker. Tenurial arrangements are at the heart of the DARAB’s jurisdiction.

The petitioner argued that Section 3(d) could be divided into tenurial and non-tenurial arrangements, but the Court rejected this interpretation. It reasoned that an agrarian dispute must always relate to a tenurial arrangement over agricultural land. Even controversies involving compensation for land acquired under CARP implicitly involve a tenurial relationship between landowners and agrarian reform beneficiaries. The Court underscored the importance of interpreting statutory provisions in context, ensuring that every part of the statute aligns with the overall intent of the law.

To establish an agrarian relationship, several elements must concur: (1) the parties are a landowner and a tenant or agricultural lessee; (2) the subject matter is agricultural land; (3) there is consent to the relationship; (4) the purpose is agricultural production; (5) there is personal cultivation by the tenant or lessee; and (6) the harvest is shared between the parties. In this case, Sutton’s claim centered on her ownership of the land and the allegedly erroneous issuance of the CLOA to the Lims. She did not allege any tenurial arrangement, which meant there was no agrarian dispute and the DARAB lacked jurisdiction.

The Court further noted that R.A. No. 9700, which took effect on July 1, 2009, explicitly grants the DAR Secretary exclusive and original jurisdiction over all cases involving the cancellation of CLOAs and other titles issued under any agrarian reform program. This new law reinforced the principle that administrative matters concerning the implementation of agrarian reform laws fall under the purview of the DAR Secretary. The Court found no error in the Court of Appeals’ decision to dismiss the case without prejudice, allowing Sutton to refile her claim with the appropriate authority, the Office of the DAR Secretary.

FAQs

What was the key issue in this case?	The main issue was whether the DARAB has jurisdiction over a petition for cancellation of a CLOA when there is no agrarian dispute, such as a landlord-tenant relationship, between the parties. The Court ruled that DARAB jurisdiction requires the existence of an agrarian dispute.
What is an agrarian dispute?	An agrarian dispute is a controversy relating to tenurial arrangements over lands devoted to agriculture, including disputes concerning farmworkers’ associations or the terms and conditions of land ownership transfer from landowners to farmworkers and tenants. It essentially involves relationships between landowners and tenants or beneficiaries.
What is a CLOA?	A Certificate of Land Ownership Award (CLOA) is a title document issued to agrarian reform beneficiaries, granting them ownership of the land they are tilling. It is a key component of the Comprehensive Agrarian Reform Program (CARP) in the Philippines.
Who has jurisdiction over CLOA cancellation cases?	Under R.A. No. 9700, the DAR Secretary has exclusive and original jurisdiction over all cases involving the cancellation of CLOAs and other titles issued under any agrarian reform program. This reinforces the DAR Secretary’s authority over administrative matters.
What if there is no tenurial relationship?	If there is no tenurial relationship between the parties, such as a landlord-tenant relationship, the DARAB does not have jurisdiction, and the case falls under the jurisdiction of the DAR Secretary. The dispute must involve more than just a claim of land ownership.
What was the basis of the Supreme Court’s decision?	The Supreme Court based its decision on the interpretation of R.A. No. 6657, the DARAB Rules of Procedure, and previous jurisprudence. It emphasized that the DARAB’s jurisdiction is limited to agrarian disputes, which require a tenurial relationship.
What is the practical implication of this ruling?	The ruling clarifies the scope of DARAB’s jurisdiction and ensures that cases are handled by the appropriate administrative body. It prevents the DARAB from handling cases that are purely administrative in nature.
What is R.A. No. 9700?	R.A. No. 9700 is an Act Strengthening the Comprehensive Agrarian Reform Program (CARP), extending the acquisition and distribution of all agricultural lands, instituting necessary reforms, and amending certain provisions of R.A. No. 6657.

This case underscores the importance of understanding the jurisdictional limits of administrative bodies like the DARAB. Parties seeking to cancel CLOAs must demonstrate the existence of an agrarian dispute to properly invoke the DARAB’s authority. Without such a dispute, the matter falls under the administrative purview of the DAR Secretary, ensuring the efficient and appropriate resolution of agrarian reform matters.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Delia T. Sutton vs. Romanito P. Lim, G.R. No. 191660, December 03, 2012