Lapanday Agricultural Vs. Maximo Estita; G.R. No. 162109 January 21, 2005

LAPANDAY AGRICULTURAL & DEVELOPMENT CORPORATION (L.S. VENTURES, INC., ALREADY MERGED WITH LAPANDAY AGRICULTURAL AND DEVELOPMENT CORP.), petitioner,

vs.

MAXIMO ESTITA, et al


TOPIC: Art. 6 - Waiver of rights.

Rights may be waived, unless the waiver is contrary to law, public order, public policy, morals, or good customs, or prejudicial to a third person with a right recognized by law.

RATIONALE:

Waivers of rights and/or interests over landholdings awarded by the government are invalid for being violative of the agrarian reform laws.


FACTS:

1. Agricultural land with an area of 716 hectares located at Malalag, Davao del Sur.  was leased by the Government to Orval Hughes for a period of twenty-five (25) years under Lease Application No. 815 (E-172). Period of lease: 28 July 1924 to 25 May 1952 (extended for 2 yrs)

2. Orval Hughes died and was survived by his five (5) heirs who each then filed their Sales Application with the Bureau of Lands. This sale was protested by Teodulo Tocao, et al.

3. 20 August 1957: Office of the President (OP) gave due course to the applications to cover only:

- 317 hectares at 63 hectares per heir as per OCT No. P-4712 but awarded

- 399 hectares to 133 protesters [led by TeoduloTocao] at three (3) hectares each.

4. Ministry of Natural Resources issued an Order implementing the said decision, however, the 133 petitioners listed in the said Order were not in possession of the land allotted to them. They formed Malalag Land Petitioners Association, Inc. (The Association) headed by one Cecilio R.
Mangubat Sr.

5. 12 November 1987: Supreme Court in Minister of Natural Resources vs. Heirs of Orval Hughes, 155 SCRA 566, sustained the OP decision and it became final and executory.

6. 12 December 1991: The association, through its president Mr. Mangubat, sent a letter
to the management of Lapanday Group of Companies, Inc. manifesting that they were no
longer interested in the government grant under    the Order of the Ministry of Natural
Resources and offered to transfer and waive whatever interest they have over the subject
land for a monetary consideration of P54,000.00.

7. Mangubat first relinquished his right and the individual respondents allegedly followed suit. He facilitated the relinquishment in the Office of the Commission on the Settlement of Land Problems

8. 17 January 1995: the individual respondents filed [against Lapanday and/or L.S. Ventures, Inc., the Heirs of Orval Hughes, the DENR/COSLAP and Cecilio Mangubat, Sr.] the following cases: forcible entry, reinstatement, nullification of affidavits of quitclaims, relinquishment, waiver and any
other documents on disposition of lands before the Provincial Agrarian Reform Adjudication Board (PARAD) of Digos, Davao, del Sur.  They alleged that since 1947, they had been the share tenants-tillers, openly and continuously, of the late Orval Hughes and his heirs and they remained as such on the 317 hectares land.

9. 11 February1991: They further alleged petitioner-corporation, Hughes' heirs and Cecilio Mangubat Sr., conspiring together, misled them to receive P54,000.00 each as rentals on their respective landholdings and deceived to sign receipts in English which turned out to be affidavits of quitclaims in favor of the petitioner.

10. 09 July 1997: The DAR Provincial Agrarian Reform Adjudicator of Digos, Davao del Sur, Mardonio L. Edica, rendered judgment in favor of the Malalag Ventures Plantation, Inc. and declared the entire 716-hectare property as covered by the Comprehensive Agrarian Reform Program or CARP.  

11. On 20 October 1997,  Provincial Agrarian Reform Adjudicator Mardonio L. Edicato issued a resolution to turn over the area involved for CARP coverage, and ordering the Hughes heirs to reinstate the members of the Davao del Sur Farmer's Association (DASUFRA) as leasehold tenants of the subject land. 

12.  January 17, 2001: Department of Agrarian Reform Adjudication Board (DARAB) affirmed the resolution with modification. Petitioners raised it to CA.

13. September 02, 2003: CA declared the DARAB decision valid. Hence, this petition for review on certiorari.

ISSUE: 

W/N respondents' interests over the subject land have already been waived when quitclaims to that effect were allegedly executed and signed by them.


RULING:

NO. It is not valid.

Waivers of rights and/or interests over landholdings awarded by the government are invalid for being violative of the agrarian reform laws as held in Torres Vs. Ventura and reiterated in Corpuz vs Sps. Grospe,: "As such [the farmer-beneficiaries] gained the rights to possess, cultivate and enjoy the landholding for himself.  Those rights over that particular property were granted by the government to him and no other.  To insure his continued possession and enjoyment of the property, he could not, under the law, make any valid form of transfer except to the government or by hereditary succession, to his successors."

In the present case, the lands were already awarded by the president on August 20, 1957 by virtue of OCT No. P-4712 that covers 317 hectares at 63 hectares per Orval Hughes' heir and awarding 399 hectares to 133 protesters at 3 hectares each. Even though it was assailed, the Supreme Court in Minister of Natural Resources vs. Heirs of Orval Hughes, 155 SCRA 566, sustained the OP decision and it became final and executory on 12 November 1987.

RULING: The instant petition is DENIED and the assailed decision and resolution of the Court of Appeals AFFIRMED in toto. Costs against petitioner.


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