Republic v. Far East Enterprises
Republic v. Far East Enterprises
DOCTRINE: By reason of the special knowledge and expertise of administrative agencies over matters falling under their
jurisdiction, they are in a better position to pass judgment thereon; thus their findings of fact in that regard are generally
accorded great respect, if not finality, by the courts. If after going to the local government unit or government agencies that
made the classification of the lands and the implementing agency fails to obtain the redress they seek (proper
classification), despite evidence clearly showing erroneous classification, it is only then that it can go to the court to ask for
intervention.
FACTS:
1. The Republic of the Philippines, represented by the Secretary of the DPWH, filed a Complaint for Eminent
Domain before the RTC of Nasugbu, Batangas against Far East Enterprises, Inc., et al.
2. The complaint alleged that:
a. Defendants are the declared owners of parcels of land situated at Barangay Balaytigue, Nasugbu,
Batangas sought to be expropriated to enable the plaintiff to construct the Ternate-Nasugbu Tali
Batangas Road, a public purpose authorized by law to be undertaken by plaintiff.
b. Plaintiff has negotiated with defendants for the acquisition of portions of the properties for the public
purpose but failed to reach an agreement with them notwithstanding the negotiations.
3. In its Answer, respondent Far East alleged that DPWH offered ₱75.00 per square meter as the amount of
compensation stating that the actual use of the subject properties is agricultural, not residential. The
respondents, however, offered the said properties at ₱600.00 per square meter.
4. Petitioner filed its Compliance and Motion for Issuance of Order and Writ of Possession. It stated that DPWH
Region IV certified that the amount of ₱2,222,550.00 had been allotted and made available to cover payment of
properties sought to be expropriated. It informed the trial court that Far East and the Bernasconis disagreed with
the price offered by petitioner. In view thereof, petitioner was constrained to deposit with the trial court the total
amount of ₱2,222,550.00 in three Land Bank checks in the names of the defendants, for its proper disposition.
5. In their respective comments on petitioner’s compliance, both Far East and the Bernasconis claimed that
petitioner intentionally and wantonly disregarded and misled the trial court by stating that their properties were
classified as agricultural to justify the deposit it made. The documents it submitted stated, however, that the
properties sought to be expropriated were classified as residential with a zonal valuation of ₱600.00 per square
meter.
RTC: ordered petitioner to correct its zonal valuation with respect to Far East and the Bernasconis and to make the
corresponding deposit therefor. It found that the amounts deposited as regards Far East and the Bernasconis should be
based on ₱500.00 per square meter, because the subject lands were residential lands. As to Arsol (co-respondent), the
trial court found the deposit of petitioner at ₱75.00 per square meter was correct.
6. Petitioner filed its Motion for Reconsideration. It prayed that the trial court reconsider its Order and a new one be
issued declaring that the deposit made by it was sufficient compliance with Section 4 of Republic Act No. 8974
and Section 8 of its Implementing Rules and Regulations.
7. The trial court granted petitioner’s motion for reconsideration. The trial court found the deposit (at ₱75.00 per
square meter) made by petitioner sufficient and substantial compliance with Section 4 of Republic Act No. 8974
and Section 8 of its Implementing Rules and Regulations, and that Far East and the Bernasconis had already
received the checks as deposits for their properties under expropriation. It ordered the petitioner to take
possession of the affected properties and to start the implementation of the road project. It likewise ordered the
issuance of a writ of possession commanding the proper officer to place petitioner in possession of the affected
portions of said properties.
8. Far East and the Bernasconis filed their Joint Motion for Reconsideration. The Court finds merit in the joint motion
for reconsideration. The court held that the deposit of ₱75.00 per square meter made by plaintiff as regards
movants’ properties is insufficient because the zonal valuation of the same is fixed at ₱500.00 per square meter.
9. Thereafter, the trial court ordered petitioner to pay the amounts of ₱953,775.00 and ₱5,272,550.00 to the
Bernasconis and Far East, respectively, or to deposit said amounts in court for payment to respondents within ten
days from receipt, after which a writ of possession shall be issued.
10. Petitioner filed a Petition for Certiorari with the Court of Appeals seeking the reversal of the trial court’s Resolution
requiring it to make the additional deposit of ₱425.00 per square meter.
11. While the case was pending before the Court of Appeals, petitioner filed its Motion for Reconsideration of the
Order of the trial court (refer to no. 9).
12. The trial court granted petitioner’s motion for reconsideration. It ordered that a writ of possession be issued and
that petitioner be placed in possession of the properties subject of the expropriation case . Far East and the
Bernasconis filed a Joint Motion for Reconsideration of said resolution, which the trial court denied.
13. Far East and the Bernasconis filed a Joint Petition for Certiorari before the Court of Appeals.
CA:
1. DENIED the petition for certiorari filed by Far East and the Bernasconis (see no. 13). Their Joint Motion for
Reconsideration was likewise denied.
2. CA also DISMISSED the petition filed by DPWH (see no. 10).
The CA held that based on Section 4 of R.A. No. 8974 and Section 8 of the IRR of R.A. No. 8974, petitioner
should have paid immediately (before taking possession) to private respondents the amount equivalent to the
sum of 100% of the value of the property based on the BIR zonal valuation of private respondents’ residential
lots in the amount of Php500.00 per square meter, and not Php75.00 per square meter which is the BIR
current zonal valuation for agricultural lots in said barangay.
ISSUE: W/N THE COURT IS THE PROPER VENUE IN WHICH TO RESOLVE ANY DISPUTE INVOLVING THE
CLASSIFICATION OF THE LANDS
Petitioner’s argument: Petitioner contends that the subject properties are agricultural. It further argues that in cases
where there is a dispute on the classification of the property, the trial court is under obligation to judicially determine the
classification of the property prior to requiring the payment of the amount based on the BIR zonal value.
HELD: NO.
By questioning the classification of the lands involved, petitioner is, in effect, questioning the propriety, wisdom and
legality of the act of the Municipal Council of Nasugbu, Batangas of reclassifying the subject lands as Residential. Per
certification of the Office of the Municipal Planning and Development Coordinator/Zoning Administrator of the Municipality
of Nasugbu, Batangas, the lands of Far East and the Bernasconis sought to be expropriated were classified as
Residential, pursuant to Municipal Zoning Ordinance No. 3 as approved by HLURB. This Court recognizes the power of a
local government to reclassify and convert lands through local ordinance, especially if said ordinance is approved by the
HLURB.
In the case before us, the lands in question had long been (almost 20 years) reclassified as residential before the instant
case was filed. All those years, no one questioned the ordinance reclassifying the lands. If petitioner would like to have
the reclassification of the lands involved changed to agricultural, the just and reasonable way of doing it is to go
to the municipal council -- not the courts – that enacted the ordinance and to ask that the lands be reclassified
again as agricultural. Technical matters such as zoning classifications and building certifications should be primarily
resolved first by the administrative agency whose expertise relates therein. The jurisprudential trend is for courts to refrain
from resolving a controversy involving matters that demand the special competence of administrative agencies, "even if
the question[s] involved [are] also judicial in character." In this manner, we give the respect due to these agencies (the
municipal council and the Human Settlement Regulatory Commission [now HLURB]), which unquestionably have primary
jurisdiction to rule on matters of classification of lands.
Well settled is the principle that by reason of the special knowledge and expertise of administrative agencies over
matters falling under their jurisdiction, they are in a better position to pass judgment thereon; thus their findings
of fact in that regard are generally accorded great respect, if not finality, by the courts . Accordingly, since
specialized government agencies tasked to determine the classification of parcels of land, such as the Bureau of Soils
and the HLURB, among other agencies, have already certified that the subject land is residential/commercial, the Court
must accord such conclusions great respect, if not finality, in the absence of evidence to the contrary.
If after going to the local government unit or government agencies that made the classification of the lands and the
implementing agency fails to obtain the redress they seek (proper classification), despite evidence clearly showing
erroneous classification, it is only then that it can go to the court to ask for intervention.
WHEREFORE, premises considered, the decision of the Court of Appeals dated 9 November 2006 in CA-G.R. SP No.
72425 is hereby AFFIRMED. No costs.
SO ORDERED.