In a complex legal battle, the Philippine Supreme Court clarified the application of agrarian reform laws in areas designated for tourism. The Court addressed whether a Presidential Proclamation declaring certain municipalities as tourist zones automatically exempts agricultural lands within those zones from comprehensive agrarian reform program (CARP) coverage. The decision underscores the importance of specific government action in reclassifying land use and balances the state’s interest in agrarian reform with the promotion of tourism and the rights of landowners and landless farmers.
When Tourist Ambitions Clash with Farmers’ Rights: A Philippine Hacienda Story
The case of Roxas & Company, Inc. v. DAMBA-NFSW revolves around Roxas & Company’s application to convert its three haciendas in Nasugbu, Batangas, from agricultural to non-agricultural use, based on Presidential Proclamation (PP) 1520 which declared Nasugbu a tourism zone in 1975. This proclamation sparked a protracted legal dispute, raising critical questions about land use classification and the rights of agrarian reform beneficiaries. The central legal question is whether PP 1520 automatically reclassified all lands in the affected municipalities to non-agricultural use, thereby exempting them from CARP coverage, or whether further action was required to effect such a change.
The Supreme Court ultimately ruled that PP 1520 did not automatically convert agricultural lands in Nasugbu to non-agricultural lands. The Court emphasized the need for specific identification and segregation of geographic areas for tourism development by the Philippine Tourism Authority (PTA). To bolster its ruling, the Court referenced the “whereas clauses” of PP 1520, noting that they identified only “certain areas” as having potential tourism value and mandated “necessary studies” and the segregation of “specific geographic areas” to achieve its purpose. This implies that a blanket reclassification was not intended.
The decision cites DAR v. Franco, where the Court stated that the DAR Regional Office VII, “in coordination with the Philippine Tourism Authority, has to determine precisely which areas are for tourism development and excluded from the Operation Land Transfer and the Comprehensive Agrarian Reform Program.” In the same vein, Roxas & Co. relied on Natalia Realty v. DAR and NHA v. Allarde to assert that its lands were already effectively reclassified. This argument was rejected because unlike the cases cited, which involved specific townsite reservations for housing, there was no survey and technical delineation of tourism areas for Roxas & Co. It also bears emphasis that a mere reclassification of an agricultural land does not automatically allow a landowner to change its use since there is still that process of conversion before one is permitted to use it for other purposes.
Moreover, the Court considered subsequent issuances, including Executive Order No. 647 (2007) proclaiming areas in the Nasugbu Tourism Development Plan as Special Tourism Zones and the Tourism Act of 2009, which explicitly declares that lands identified as part of a tourism zone shall qualify for exemption from CARP coverage. The DAR’s Memorandum Circular No. 7, Series of 2004, offered clarificatory guidelines to the effect that proclamations recognizing the potential tourism value of certain areas do not automatically reclassify the entirety of the land area. Therefore, Roxas & Co. can only look to the provisions of the Tourism Act, and not to PP 1520, for possible exemption.
The Court also addressed the validity of Certificates of Land Ownership Award (CLOAs) issued by the DAR. It found that the grant of CARP exemption in DAR Administrative Case No. A-9999-008-98 over nine parcels of land identified as Lot Nos. 20, 13, 37, 19-B, 45, 47, 49, 48-1 and 48-2 which are portions of TCT No. 985 covering 45.9771 hectares in Hacienda Palico, subject of G.R. No. 167505 was in order, while DAR Administrative Case No. A-9999-142-97 could not be granted in view of discrepancies in the location and identity of the subject parcels of land. It follows that the CLOAs issued to the farmer-beneficiaries in DAR Administrative Case No. A-9999-008-98 must be cancelled.
The Court reiterated that the power to determine whether properties are non-agricultural and exempt from CARP lies with the DAR, not with the courts. It also stressed that disturbance compensation must be given to tenants of parcels of land found suited for non-agricultural uses. Roxas & Co. is mandated to first satisfy the disturbance compensation of affected farmer-beneficiaries in the areas covered by the nine parcels of lands in DAR AO No. A-9999-008-98 before the CLOAs covering them can be cancelled and is enjoined to strictly follow the instructions of R.A. No. 3844.
FAQs
| What was the central issue in this case? | The main issue was whether Presidential Proclamation 1520 automatically reclassified agricultural lands in Nasugbu, Batangas, to non-agricultural lands, exempting them from CARP coverage. |
| Did the Supreme Court rule in favor of Roxas & Co.’s application for conversion? | The Supreme Court ruled that PP 1520 did not automatically reclassify all lands and affirmed the need for Roxas & Co. to comply with agrarian reform requirements for certain parcels. However, other parcels that the local zoning declared residential were excluded from CARP. |
| What is the role of the Philippine Tourism Authority (PTA) in this case? | The PTA is tasked with identifying and delineating specific geographic areas within the tourism zone for concentrated development efforts. This identification is crucial for determining which lands are effectively reclassified. |
| What is disturbance compensation, and who is entitled to it? | Disturbance compensation is a payment made to tenants or agricultural lessees who are dispossessed of their land due to its reclassification for non-agricultural purposes. According to existing laws, the landowners are mandated to pay the disturbance fee before claiming the property. |
| What is the significance of DAR Administrative Order No. 6, Series of 1994? | This administrative order provides guidelines for issuing exemption clearances based on DOJ Opinion No. 44, stating that lands classified as commercial, industrial, or residential before CARP’s effectivity no longer need conversion clearance. |
| How did the Nasugbu Municipal Zoning Ordinance No. 4 factor into the Supreme Court’s decision? | The Court acknowledged a local government’s power to classify land prior to CARP. It was found however, that there were discrepancies on whether the parcels of land involved are actually within the said zoning ordinance and inconsistencies were noted in certifications submitted by Roxas & Co. in support of its application. |
| What is the impact of the Tourism Act of 2009 on this case? | The Tourism Act of 2009 explicitly declares that lands identified as part of a tourism zone qualify for exemption from CARP, impacting how future exemptions may be processed. |
| Was Roxas & Co. accused of forum shopping, and what did the Court say about that? | DAMBA-NFSW accused Roxas & Co. of forum shopping, but the Court ultimately disagreed, citing substantial differences in the cases. Roxas & Co. was found not guilty of forum shopping, especially due to the fact that there were clear-cut rules with which to take administrative actions. |
| What happened to CLOA No. 6654 in this case? | In this case, the Court affirmed the partial and complete cancellation of CLOA No. 6654. Lots 21 No. 24, No. 26, No. 31, No. 32 and No. 34 or those covered by DAR Administrative Case No. A-9999-142-97) remain however; and CLOAs for Lot Nos. 20, 13, 37, 19-B, 45, 47, 49, 48-1 and 48-2 which are portions of TCT No. 985 covering 45.9771 hectares in Hacienda Palico, are nullified. |
The Supreme Court’s decision in Roxas & Company, Inc. v. DAMBA-NFSW offers valuable insights into the intersection of agrarian reform and tourism development in the Philippines. It highlights the importance of specific legal and administrative actions in classifying land use and clarifies the rights and obligations of landowners and agrarian reform beneficiaries in areas with tourism potential. This will significantly affect cases involving land classification and will be useful for both public and private entities alike in coming up with decisions.
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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: Roxas & Company, Inc. v. DAMBA-NFSW, G.R. No. 149548, December 04, 2009