In a dispute over land use, the Supreme Court affirmed that a local government unit’s reclassification of land use through a zoning ordinance, if ratified by the Housing and Land Use Regulatory Board (HLURB) before the Comprehensive Agrarian Reform Program (CARP) took effect, exempts the land from CARP coverage. This ruling emphasizes the importance of adhering to established land classifications and respecting the authority of local governments in managing land use within their jurisdictions. Occupants claiming tenancy rights must prove they held those rights before the zoning ordinance’s enactment to contest the exemption.

From Fields to Factories: How a Zoning Decision Shaped Land Reform

The case of Renato Tañon and Pio Candelaria vs. Asia United Bank revolves around a two-hectare property in Barangay Makiling, Calamba, Laguna, owned by Asia United Bank (AUB). AUB sought to exempt the property from CARP coverage, presenting a certification from the HLURB stating the land was classified as an industrial zone. This certification referenced a Sangguniang Bayan Resolution from 1980, ratified by the HLURB in 1981, well before CARP’s enactment in 1988. Tañon and Candelaria, claiming to be tenants, protested the exemption, arguing that the land was agricultural and devoted to agricultural use.

The Department of Agrarian Reform (DAR) initially granted AUB’s application, a decision upheld by the Office of the President and eventually by the Court of Appeals. The central legal question was whether the HLURB’s certification and the zoning ordinance were sufficient to exempt the land from CARP, overriding the tenants’ claims. Petitioners argued that they were denied due process and that the land was agricultural and devoted exclusively to agricultural use as shown by the presence of fruit-bearing trees and cash crops on the property. They further claimed that the DAR secretary committed grave abuse of discretion when they disregarded the finding of the municipal agrarian reform officer regarding the presence of agricultural activity in the landholding.

The Supreme Court, in denying the petition, underscored the principle that local governments have the authority to reclassify land use through zoning ordinances. This authority, derived from police power, allows local legislatures to define land use within their jurisdictions. The court cited Heirs of Luna v. Afable, emphasizing that a land is considered non-agricultural and outside CARP’s scope if it has been classified as residential, commercial, or industrial in town plans approved by the HLURB before June 15, 1988.

Crucially, the Court noted that the reclassification of agricultural land for non-agricultural use before June 15, 1988, does not require DAR approval. The Department of Justice’s Opinion No. 44, s. 1990, reinforces this, stating that lands classified as commercial, industrial, or residential before this date no longer need conversion clearance from the DAR. This legal framework clarifies the timeline and the respective authorities involved in land reclassification.

The Court addressed the issue of whether the petitioners were denied due process. The Court elucidated that an application for exemption is non-adversarial and non-litigious, which means that the occupants of the landholding are not required to be notified of a pending application for exemption. The Court found that the respondent had complied with the public notice requirement, as the bank had erected and posted within the subject lots two billboards “notifying all concerned that an application for exemption from Comprehensive Agrarian Reform Program had been filed over the said lands.”

The Court then turned to the claim of tenancy rights. The Supreme Court emphasized that proving tenancy requires substantial evidence demonstrating a landlord-tenant relationship, agricultural land as the subject, consent between parties, agricultural production as the purpose, personal cultivation by the tenant, and a sharing of harvests. The Court found no evidence supporting these elements in this case.

“The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of tenurial arrangement and commodity produced, all public and private agricultural lands…” However, this coverage is not absolute. The Court weighed the reclassification against the tenants’ rights, if any existed prior to the said reclassification. In this regard, the court held that a zoning ordinance cannot affect agricultural lease in landholdings constituted on lands within the reclassified zone.

The practical implication of this ruling is significant. It reinforces the validity of land reclassifications made by local governments before CARP’s implementation. It clarifies the requirements for claiming exemption from CARP coverage and the burden of proof on those asserting tenancy rights. It also serves as a reminder for potential land occupants to check the official classification of lands. This case also serves as a guidepost for landowners and agrarian reform beneficiaries alike.

FAQs

What was the key issue in this case?	The key issue was whether the land in question was exempt from the Comprehensive Agrarian Reform Program (CARP) due to its reclassification as industrial land before CARP’s enactment. This hinged on the validity of the Housing and Land Use Regulatory Board’s (HLURB) certification and the local zoning ordinance.
What is the Comprehensive Agrarian Reform Program (CARP)?	CARP is a Philippine law that aims to redistribute private and public agricultural lands to landless farmers and farmworkers. It seeks to promote social justice and equitable land ownership in the country.
What role does the Housing and Land Use Regulatory Board (HLURB) play in land classification?	The HLURB approves local government zoning ordinances and land use plans. Its certifications regarding land classification are considered authoritative, especially when made before the enactment of CARP, and hold significant legal weight.
What is the significance of June 15, 1988, in relation to CARP?	June 15, 1988, is the date when the Comprehensive Agrarian Reform Law took effect. Land reclassifications made before this date are generally recognized as valid exemptions from CARP coverage, as stated in this case.
What must tenants prove to claim rights over land reclassified before CARP?	Tenants must provide substantial evidence that they had vested tenancy rights before the land was reclassified as non-agricultural. This includes proof of a landlord-tenant relationship, agricultural activity, and a sharing of harvests.
What is the effect of a zoning ordinance on agricultural land?	A valid zoning ordinance can reclassify agricultural land for non-agricultural uses like industrial, commercial, or residential. If approved by the HLURB before CARP, this reclassification can exempt the land from CARP coverage.
What does due process mean in the context of CARP exemption applications?	Due process in this context means providing a fair and reasonable opportunity for concerned parties to be heard and present their arguments. This includes proper notification and the chance to participate in administrative proceedings.
Is an application for exemption adversarial in nature?	No, an application for exemption is non-adversarial and non-litigious in nature. Hence, the occupants of the landholding are not required to be notified of a pending application for exemption.

In conclusion, the Supreme Court’s decision underscores the importance of adhering to land classifications established by local governments and ratified by the HLURB. While CARP aims to redistribute agricultural land, it respects prior land reclassifications and the existing rights of landowners. The ruling serves as a critical precedent for resolving land disputes involving agrarian reform and zoning ordinances.

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: Tañon vs. Asia United Bank, G.R. No. 226852, June 30, 2021