Title
Asociacion De Agricultores De Talisay-Silay, Inc. vs. Talisay-Silay Milling Co., Inc.
Case
G.R. No. L-19937
Decision Date
Feb 19, 1979
The court ruled in favor of the planters, mandating the milling company to implement increased sharing participation as per the sugar act from the specified crop year.
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Case Digest (G.R. No. L-19937)

Facts:

  • The case involves two consolidated appeals: G.R. No. L-19937 and G.R. No. L-21304.
  • Plaintiffs-appellees include the Asociacion de Agricultores de Talisay-Silay, Inc. and several sugarcane planters: Trino Montinola, Fernando Cuenca, Eduardo Ledesma, Emilio Jison, Nilo Lizares, and Nicolas Jalandoni.
  • Defendants-appellants are Talisay-Silay Milling Co., Inc. and Luzon Surety Co., Inc., with the Philippine National Bank and the Sugar Quota Administrator also named as defendants-appellees.
  • The case originated from a class suit filed on September 23, 1954, in the Court of First Instance of Manila.
  • The suit aimed to enforce Republic Act No. 809, enacted on June 22, 1952, regarding the sharing of sugar production between planters and millers.
  • Plaintiffs claimed the law mandated a specific sharing ratio of sugar produced from their sugarcane, particularly in the Talisay-Silay milling district, where many planters lacked written milling contracts.
  • The trial court ruled in favor of the plaintiffs, declaring the law applicable and ordering the milling company to account for and pay the increased share of sugar production to the planters and their laborers.
  • Defendants appealed, arguing the unconstitutionality of Republic Act 809 and the validity of existing contracts.
  • The second case, G.R. No. L-21304, was initiated by the Republic of the Philippines to compel the appointment of an administrator for the milling company, which had been taken over by the government under the same law.
  • The trial court upheld the constitutionality of the law and its applicability to the milling district.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court ruled that Republic Act No. 809 is constitutional and applicable to the Talisay-Silay milling district.
  • The planters were entitled to the increased share of sugar production as mandated by the law.
  • The trial court's findings regarding the number of planters with written milling contracts were found to be erroneous; the correct num...(Unlock)

Ratio:

  • The Supreme Court upheld the constitutionality of Republic Act No. 809, emphasizing its purpose to promote social justice and protect laborers' rights in the sugar industry.
  • The Court reasoned that the law was a legitimate exercise of police power, aimed at ensuring fair compensation for planters and laborers.
  • The Court found errors in the trial cou...continue reading

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