In Land Bank of the Philippines v. Raymunda Martinez, the Supreme Court addressed the critical issue of forum shopping and the proper legal representation of government-owned corporations. The Court ruled that Land Bank engaged in forum shopping by simultaneously pursuing a motion to quash a writ of execution before the Provincial Agrarian Reform Adjudicator (PARAD) and filing a petition for certiorari with the Court of Appeals, both seeking the same relief. This decision underscores the importance of adhering to procedural rules and respecting the role of the Government Corporate Counsel (OGCC) as the primary legal representative of government entities.

Dual Pursuit, Dual Peril: Forum Shopping in Agrarian Disputes and Representation by Government Counsel

This case arose from a dispute over the just compensation for Raymunda Martinez’s 62.5369-hectare land, which was compulsorily acquired by the Department of Agrarian Reform (DAR) under the Comprehensive Agrarian Reform Law of 1988 (CARL). Land Bank of the Philippines (LBP) offered P1,955,485.60, which Martinez rejected as unjust. The Department of Agrarian Reform Adjudication Board (DARAB), through its Provincial Agrarian Reform Adjudicator (PARAD), conducted summary administrative proceedings and determined the just compensation to be Php12,179,492.50. LBP filed a petition before the Special Agrarian Court (SAC), questioning the PARAD’s decision, but did so beyond the 15-day period. While the case was pending with the SAC, Martinez sought a writ of execution from the PARAD, which was granted. LBP then filed a motion to quash the writ of execution and simultaneously filed a petition for certiorari with the Court of Appeals (CA), leading to the central issue of forum shopping.

The Court emphasized that LBP’s actions constituted forum shopping. The essence of forum shopping lies in seeking the same relief in multiple forums, creating the potential for conflicting decisions. The Supreme Court referenced La Campana Development Corporation v. See, where it defined forum shopping as:

In essence, forum shopping is the practice of litigants resorting to two different fora for the purpose of obtaining the same relief, to increase their chances of obtaining a favorable judgment. In determining whether forum shopping exists, it is important to consider the vexation caused to the courts and the parties-litigants by a person who asks appellate courts and/or administrative entities to rule on the same related causes and/or to grant the same or substantially the same relief, in the process creating the possibility of conflicting decisions by the different courts or fora on the same issues.

In this instance, LBP was simultaneously contesting the PARAD’s decision through a motion to quash and a petition for certiorari, both aimed at preventing the execution of the PARAD’s order. This violated the principle against seeking concurrent remedies in different forums. The court noted the remedies sought by LBP were the same in both proceedings; a situation where both courts could come up with conflicting decisions.

Further, the Supreme Court addressed the issue of LBP being represented by its legal department instead of the OGCC. The Court cited Land Bank of the Philippines v. Teresita Panlilio-Luciano, emphasizing that the Administrative Code of 1987 designates the OGCC as the principal law office of all government-owned and controlled corporations (GOCCs), including LBP. Section 10, Book IV, Title III, Chapter 3 of the Administrative Code of 1987 states:

Section 10. Office of the Government Corporate Counsel. – The Office of the Government Corporate Counsel (OGCC) shall act as the principal law office of all government-owned or controlled corporations, their subsidiaries, other corporate offsprings and government acquired asset corporations and shall exercise control and supervision over all legal departments or divisions maintained separately and such powers and functions as are now or may hereafter be provided by law.

The Supreme Court stated that the OGCC’s role is not merely advisory, but supervisory. The law expressly mandates the OGCC to exercise control and supervision over all legal departments or divisions, implying express participation by the OGCC as principal legal counsel of LBP.

Moreover, the Court observed that the petition before the SAC was filed beyond the 15-day period prescribed by the DARAB Rules of Procedure. Rule XIII, Section 11 of the DARAB Rules of Procedure states:

Section 11. Land Valuation and Preliminary Determination and Payment of Just Compensation. – The decision of the Adjudicator on land valuation and preliminary determination and payment of just compensation shall not be appealable to the Board but shall be brought directly to the Regional Trial Courts designated as Special Agrarian Courts within fifteen (15) days from receipt of the notice thereof. Any party shall be entitled to only one motion for reconsideration.

This delay resulted in the PARAD’s decision becoming final and executory, rendering LBP’s petition for certiorari moot. Because the petition was filed 26 days after the decision, it was 11 days beyond the reglementary period for appeal. The Supreme Court affirmed the Court of Appeals’ decision, emphasizing that the PARAD did not gravely abuse its discretion in issuing the writ of execution.

FAQs

What was the key issue in this case?	The key issue was whether Land Bank engaged in forum shopping by simultaneously pursuing a motion to quash a writ of execution and filing a petition for certiorari. Additionally, the Court addressed whether LBP was properly represented by its legal department instead of the OGCC.
What is forum shopping?	Forum shopping is the practice of a litigant pursuing multiple legal actions in different courts or tribunals simultaneously, seeking the same relief, to increase their chances of obtaining a favorable judgment. It is considered a violation of procedural rules and an abuse of the judicial system.
Why is forum shopping prohibited?	Forum shopping is prohibited because it wastes judicial resources, causes undue vexation to the opposing party, and creates the potential for conflicting decisions from different courts or tribunals. It undermines the orderly administration of justice.
What is the role of the Government Corporate Counsel (OGCC)?	The OGCC is the principal law office of all government-owned and controlled corporations (GOCCs). It exercises control and supervision over the legal departments of GOCCs and is responsible for providing legal advice and representation to these entities.
Why was Land Bank required to be represented by the OGCC?	The Administrative Code of 1987 mandates that the OGCC act as the principal law office of GOCCs. This requirement ensures that GOCCs receive consistent and coordinated legal representation and that their legal positions align with the interests of the government.
What is the significance of the DARAB Rules of Procedure in this case?	The DARAB Rules of Procedure prescribe a 15-day period for appealing decisions on land valuation and just compensation. Because LBP filed its petition beyond this period, the PARAD’s decision became final and executory.
What was the effect of the PARAD’s decision becoming final and executory?	Once the PARAD’s decision became final and executory, it could be enforced through a writ of execution. LBP’s attempts to challenge the decision through a petition for certiorari were rendered moot because the decision was no longer subject to appeal.
What was the final ruling of the Supreme Court?	The Supreme Court denied LBP’s appeal and affirmed the decision of the Court of Appeals. The Court held that LBP had engaged in forum shopping and that the PARAD had not abused its discretion in issuing the writ of execution.

This case serves as a reminder to adhere to procedural rules and to respect the designated legal representatives of government entities. The Supreme Court’s decision reinforces the importance of avoiding forum shopping and ensuring that legal actions are pursued in a timely and appropriate manner. It also clarifies the role of the OGCC as the primary legal counsel for GOCCs, highlighting the need for these corporations to seek representation and guidance from the OGCC in legal matters.

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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: LAND BANK OF THE PHILIPPINES VS. RAYMUNDA MARTINEZ, G.R. NO. 169008, August 14, 2007