In Spouses Drilon Ybiosa v. Drilon, the Supreme Court addressed a dispute over land ownership, clarifying that Regional Trial Courts (RTCs) lack jurisdiction to resolve cases primarily involving the cancellation of Certificates of Land Ownership Award (CLOAs) and titles issued under agrarian reform programs. The Court emphasized that such matters fall under the exclusive original jurisdiction of the Department of Agrarian Reform (DAR) Secretary. This means that individuals contesting land titles issued under agrarian reform must pursue their claims through the DAR, not through regular courts. This ruling ensures that specialized administrative bodies handle agrarian disputes, promoting expertise and consistency in agrarian reform implementation.

Land Dispute or Agrarian Issue: Who Decides Ownership When a Title is Challenged?

The case began with Inocencio Drilon filing a complaint in the RTC seeking to annul a deed of sale between Gabriel Drilon and Spouses Fredeswinda and Alfredo Ybiosa. Inocencio claimed ownership based on receipts from Gabriel, alleging the deed of sale to the Ybiosas was fraudulent. The RTC initially declared the deed of sale void due to fraud but also ruled Inocencio’s purchase void for lack of spousal consent. The Court of Appeals (CA) partially granted Inocencio’s appeal, declaring his sale valid and directing him to pay the balance. However, the Supreme Court reversed the CA’s decision, focusing on the RTC’s lack of jurisdiction over matters concerning CLOAs.

At the heart of the matter lies the question of jurisdiction. The Supreme Court underscored that the subject property was originally unregistered land, presumed to belong to the State. It emphasized the principle that one cannot sell what they do not own, rendering any sale by Gabriel invalid unless proven otherwise. This is further substantiated by the fact that the Spouses Ybiosa were able to obtain a CLOA over the subject property, and subsequently, an original certificate of title in their favor. Jurisdiction is defined as the authority of a court or tribunal to hear and decide a case. Without proper jurisdiction, any decision made is null and void. The Court cited the 1994 DARAB Rules of Procedure, which were in force at the time the case was filed:

RULE II – Jurisdiction Of The Adjudication Board

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 the following:

x 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;

Building on this principle, the Court referenced Heirs of Santiago Nisperos v. Nisperos-Ducusin, clarifying that the nature of the dispute is critical in determining jurisdiction. Even if a case involves the cancellation of a CLOA, the Department of Agrarian Reform Adjudication Board (DARAB) only has jurisdiction if there is an **agrarian dispute** between the parties. An agrarian dispute involves tenurial arrangements over agricultural lands, as defined in Section 3(d) of R.A. No. 6657. If the dispute does not arise from a tenancy relationship, the case falls under the jurisdiction of the DAR Secretary, not the DARAB. The DARAB is an attached agency to the DAR, created to assume the adjudicatory functions of the DAR.

The Court then reiterated that in cases where there is no agrarian dispute, the DAR Secretary has the authority to resolve disputes concerning the issuance, correction, and cancellation of CLOAs. As stated in Heirs of Julian dela Cruz v. Heirs of Alberto Cruz:

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 of the DARAB.

This clarifies that the DAR’s administrative functions are distinct from the DARAB’s adjudicatory role. In essence, the case highlights a crucial distinction between disputes that require judicial intervention and those that are best resolved through administrative channels. The Supreme Court emphasized that since Civil Case No. 11985 primarily sought the cancellation of the CLOA and certificate of title issued to the Spouses Ybiosa, it fell under the jurisdiction of the DAR Secretary. Therefore, the RTC lacked the authority to hear the case, rendering its proceedings null and void. It is fundamental in legal procedure that a court must have jurisdiction over the subject matter for its judgment to be valid.

The consequences of this jurisdictional error are significant. The Supreme Court’s decision to annul the proceedings in the RTC and CA means that the issue of land ownership remains unresolved and must be addressed in the proper forum: the DAR. This also ensures that specialized knowledge and expertise in agrarian reform are applied to the dispute, leading to a more informed and equitable resolution. The procedural rules ensure that cases are heard by the bodies best equipped to handle them. The distinction between judicial and administrative functions is essential for efficient governance and the proper administration of justice.

The Supreme Court’s decision underscores the importance of adhering to jurisdictional rules and procedures. Parties involved in land disputes must carefully assess the nature of their claims and file their cases in the appropriate forum. Failure to do so can result in delays, wasted resources, and ultimately, the nullification of court proceedings. The ruling serves as a reminder of the need for legal precision and thorough understanding of jurisdictional requirements in agrarian reform cases.

FAQs

What was the key issue in this case?	The key issue was whether the Regional Trial Court (RTC) had jurisdiction over a case involving the cancellation of a Certificate of Land Ownership Award (CLOA) and title issued under an agrarian reform program. The Supreme Court ruled that such cases fall under the jurisdiction of the Department of Agrarian Reform (DAR) Secretary.
Who has jurisdiction over CLOA cancellation cases?	The DAR Secretary has exclusive original jurisdiction over cases involving the cancellation of registered emancipation patents, certificates of land ownership award, and other titles issued under any agrarian reform program. This jurisdiction is provided under Republic Act No. 9700, also known as the CARPER Law.
What is an agrarian dispute?	An agrarian dispute is a controversy relating to tenurial arrangements over agricultural lands, including disputes concerning farmworkers’ associations or representation, compensation for lands acquired under agrarian reform, and terms of transfer of ownership from landowners to farmworkers or tenants. The existence of an agrarian dispute is crucial in determining the jurisdiction of the DARAB.
What is the role of the DARAB?	The Department of Agrarian Reform Adjudication Board (DARAB) has primary and exclusive jurisdiction over agrarian disputes involving the implementation of the Comprehensive Agrarian Reform Program (CARP). However, if the case does not involve an agrarian dispute, the DAR Secretary has jurisdiction.
What happens if a case is filed in the wrong court?	If a case is filed in the wrong court, such as an agrarian case filed in the RTC, the court lacks jurisdiction, and any proceedings or decisions made are null and void. The case must be dismissed and refiled in the proper forum, which in this case, would be with the DAR Secretary.
What should the RTC do if an agrarian case is filed with it?	If a case covered by Section 2 of DAR Administrative Order No. 6, Series of 2000, is filed before the DARAB, the concerned DARAB official shall refer the case to the proper DAR office for appropriate action within five (5) days after said case is determined to be within the jurisdiction of the Secretary
Why is it important to determine jurisdiction correctly?	Correctly determining jurisdiction ensures that cases are heard by the appropriate body with the expertise and authority to resolve the issues. Filing a case in the wrong forum can lead to delays, wasted resources, and the nullification of court proceedings, as seen in this case.
What is the significance of a CLOA?	A Certificate of Land Ownership Award (CLOA) is a title issued to agrarian reform beneficiaries, granting them ownership of the land they till. The CLOA is registered with the Land Registration Authority and serves as proof of ownership, subject to certain conditions and restrictions under agrarian reform laws.

In conclusion, the Supreme Court’s ruling in Spouses Drilon Ybiosa v. Drilon underscores the importance of adhering to jurisdictional rules in agrarian reform cases. The DAR Secretary has exclusive original jurisdiction over cases involving the cancellation of CLOAs and other titles issued under agrarian reform programs, ensuring that these disputes are resolved by the appropriate administrative body with specialized expertise.

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: Spouses Fredeswinda Drilon Ybiosa and Alfredo Ybiosa, petitioners, vs. Inocencio Drilon, respondent, G.R. No. 212866, April 23, 2018