G.R. No. 214981 - Alde vs. City of Zamboanga

Title: Alde vs. City of Zamboanga

Case: G.R. No. 214981

Decision Date: Nov 4, 2020

Petitioner Eulogio Alde sought to lease public lands in Zamboanga City. Opposition arose over jurisdiction, public use, and procedural compliance. SC upheld DENR’s authority, ruled administrative action sufficed, and found substantial compliance with posting/publication. Lease valid.

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Case Digest (G.R. No. 214981)
Legal Reasoning Model

Facts:

Lease Application and Subject Property

Petitioner Eulogio Alde filed Miscellaneous Lease Application (MLA) No. 097332-10 on February 9, 2001, covering two lots with a total area of 805 square meters.

The two lots are evidenced by Transfer Certificates of Title Nos. T-7301 and T-7300, both titled in the name of the Republic.

Originally, these lots were leased by the defunct Bureau of Buildings and Real Property Management to Clarita Chan for a term of twenty (20) years until July 17, 1994.

Transfer of Control and Appraisal Process

Following Executive Order No. 285, Series of 1987, the control and possession of the lots were transferred to the Department of Environment and Natural Resources (DENR).

On May 14, 2002, the Regional Executive Director (RED) of DENR-Region IX ordered an appraisal of the lots.

The Appraisal Committee on May 17, 2002 classified the lots as commercial properties under the Zoning Ordinance (Department Order No. 145-95) and appraised the land at ₱6,800.00 per square meter, with a total value of ₱6,475,000.00.

The committee also determined a minimum annual rental rate of ₱174,250.00, computed as three percent (3%) of the land value plus one percent (1%) of the proposed improvements in accordance with Section 37 of Commonwealth Act No. 141, known as the Public Land Act.

Administrative Orders and Award Process

On May 23, 2002, the RED-DENR Region IX approved the appraisal and granted authority to lease the land per the Public Land Act.

The Chief of the Land Management Division subsequently issued a Notice of Lease to initiate the bidding process.

The Notice of Lease was duly published in the Official Gazette (with a Certificate of Publication dated October 11, 2002) and posted at the barangay hall, as well as in the local newspaper (Zamboanga Star).

Eulogio Alde emerged as the lone bidder having submitted a bid of ₱174,250.00, and he paid the required ten percent (10%) of the bid price.

On July 2, 2003, the RED-DENR Region IX issued an Order of Award for the lease in favor of Alde.

Opposition and Subsequent Administrative Proceedings

The City Government of Zamboanga opposed the lease application on several grounds, alleging that the lots were needed for public use and that certain posting and publication requirements were not met.

The City government communicated its objections through letters dated August 18, 2003, September 10, 2003, and October 13, 2003, eventually filing a verified Opposition on November 12, 2003 (DENR Case No. 8361).

A Committee was formed, and on March 1, 2005, it recommended the dismissal of the opposition and advised that Alde’s MLA be given due course, noting the absence of any governmental intention to use the land for public purposes and affirming the proper conduct of the bidding, notice, and publication requirements.

On May 27, 2007, the DENR Secretary issued a Decision upholding the Committee’s findings and giving due course to the Order of Award.

The City government further filed a Motion for Reconsideration, which was denied on July 29, 2009, and later escalated the matter by appealing to the Office of the President (OP).

The OP, in its Decision on June 18, 2010 and subsequent Resolution dated March 1, 2011, affirmed the DENR Secretary’s ruling, holding that no separate or specific notice to the City was required and that the classification of the lots as commercial under Executive Order No. 285 was proper.

Petition for Review and Issue on Disposition of Public Lands

Dissatisfied with the OP’s affirmance, the City Government of Zamboanga filed a Petition for Review under Rule 43 with the Court of Appeals (CA) challenging both the issuance of the lease award and the applicable procedural requirements.

The CA, in its decision dated February 27, 2014, ruled in favor of the City, holding that the Order of Award was issued in excess or lack of jurisdiction because the proper statutory and publication procedures were not fully complied with—most notably, the requirement of a presidential proclamation declaring that the lands were not necessary for public service before their disposition under the Public Land Act.

Alde subsequently filed a motion for reconsideration of the CA’s ruling, which was denied in the Resolution dated September 26, 2014.

Issues Raised and Further Developments

The legal controversy centered on the appropriate interpretation of the Public Land Act, particularly sections 59, 61, and 63 regarding the disposal of government-owned lands.

Central to the dispute was whether the DENR’s administrative actions and the OP’s declaration sufficiently satisfied the statutory requirement that public lands must be declared not necessary for public use before they can be disposed of by sale or lease.

Issue:

Jurisdiction and Authority

Whether the DENR-Regional Office (RO-IX) and the Land Management Bureau, given that the lots were already titled in the name of the Republic, possessed the necessary jurisdiction and authority to entertain and give due course to Alde’s lease application.

Compliance with Statutory Provisions

Whether the procedures mandated by the Public Land Act for disposing of government-owned lands—specifically, the requirement that a land be declared not necessary for public service—were properly observed.

Whether the absence of a formal presidential proclamation (or the reliance on an alternative administrative declaration) invalidated the lease award over land classified under Section 59(d) of the Public Land Act.

Posting and Publication Requirements

Whether the publication and posting of the Notice of Lease, as evidenced by its appearance in the Official Gazette and in the Zamboanga Star for the requisite number of weeks, met the statutory requirements.

Whether any deviation from the prescribed publication period affected the validity of the lease award.

Effect of the Administrative Acts

Whether the administrative acts of the DENR and the subsequent action by the Office of the President, which declared the subject lands disposable, legally suffice to override the contention of the City Government regarding the need for a specific presidential proclamation.

Ruling:

(Subscriber-Only)

Ratio:

(Subscriber-Only)

Statutory Interpretation of the Public Land Act

The Court’s rationale focused on the interpretation of Sections 59, 61, and 63 of the Public Land Act, emphasizing that the legislative intent was to secure a declaration that public lands are not needed for public service before being disposed of.

The term “decided” in Section 63 was broadly construed to permit alternative forms of executive or administrative action, not limited to a formal presidential proclamation.

Positive Act of the Government

The decision reiterated that proving a public land to be alienable and disposable relies on demonstrating a positive governmental act—this may be effected through an executive order, administrative action, or other statutory instruments.

The Court upheld the administrative declaration by the OP (supported by the DENR Secretary’s recommendation) as sufficient, thereby aligning with previous doctrines articulated in earlier jurisprudence.

Presumption of Regularity

The Court underscored the legal principle that acts done by public officials are presumed regular unless convincingly rebutted by evidence.

This presumption was pivotal in assessing the compliance with posting and publication requirements, as well as the overall validity of the lease administrative process.

No Requirement for Exclusive Presidential Proclamation

Although a declaration of non-necessity for public service is required before the disposition of public lands, it need not be exclusively in the form of a presidential proclamation.

The Court viewed the alternative administrative mode employed in this case as a permissible exercise of the broadl

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