Title
Chavez vs. Public Estates Authority
Case
G.R. No. 133250
Decision Date
Jul 9, 2002
The Philippine Supreme Court ruled the Amended JVA between PEA and AMARI unconstitutional, declaring reclaimed lands as public domain, prohibiting their transfer to private entities under the 1987 Constitution.

Case Digest (G.R. No. 133250)
Expanded Legal Reasoning Model

Facts:

  • Pre-PEA Events (1973–1988)
    • November 20, 1973 – The Republic, through the Commissioner of Public Highways, contracted CDCP to reclaim foreshore/offshore portions of Manila Bay and build Phases I–II of the Manila–Cavite Coastal Road in exchange for 50% of reclaimed land.
    • February 4, 1977 – President Marcos issued PD 1084 creating the Public Estates Authority (PEA) to “reclaim land, including foreshore and submerged areas,” and “lease and sell any and all kinds of lands.” On the same date, PD 1085 transferred to PEA lands reclaimed under the Manila–Cavite project.
    • December 29, 1981 – PEA and CDCP executed a Memorandum of Agreement funding all future works by PEA and requiring CDCP to cede development rights in approximately 3.48 million m² of reclaimed land.
    • January 19, 1988 – President Aquino issued Special Patent No. 3517 granting PEA title to 1,915,894 m² of reclaimed land (the “Freedom Islands”). On April 9, 1988, Transfer Certificates of Title Nos. 7309, 7311 and 7312 were issued to PEA covering 1,578,441 m² of those islands.
  • Joint Venture and Controversies (1995–1999)
    • April 25, 1995 – PEA and Amari Coastal Bay Development Corporation (AMARI) entered an unbid Joint Venture Agreement (JVA) to develop the Freedom Islands and reclaim an additional 250 ha, confirmed by PEA Board Resolution No. 1245 and approved by President Ramos on June 8, 1995.
    • November 29, 1996 – Senate President Maceda denounced the JVA; Senate Committees reported (Sept 16, 1997) that the lands were public domain (not alienable), titles void, and the JVA illegal.
    • December 5, 1997 – President Ramos created a Legal Task Force, which upheld JVA legality in conflict with the Senate report.
    • April 1998 – Press reported PEA–AMARI renegotiations ordered by President Ramos; a prior prohibition petition (G.R. No. 132994) was dismissed.
    • April 27, 1998 – Solicitor General Chavez, as taxpayer, filed this petition for mandamus to compel PEA to disclose renegotiation terms and to enjoin new agreements. PEA and AMARI filed comments (Oct 19, 1998; June 25, 1998).
    • March 30, 1999 – PEA and AMARI signed an Amended JVA; President Estrada approved it on May 28, 1999. Chavez amended his prayer to declare the renegotiated contract void on constitutional and statutory grounds.

Issues:

  • Whether the principal reliefs are moot and academic due to subsequent events.
  • Whether the petition should be dismissed for ignoring the judicial hierarchy.
  • Whether the petition warrants dismissal for non-exhaustion of administrative remedies.
  • Whether the petitioner has locus standi as a taxpayer to bring this suit.
  • Whether the constitutional right to information extends to on-going negotiations prior to contract signing.
  • Whether the Amended JVA’s stipulations transferring reclaimed and to-be-reclaimed lands to AMARI violate the 1987 Constitution’s Sections 2 and 3, Article XII.
  • Whether this Court is the proper forum to challenge a grossly disadvantageous contract.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

Analyze Cases Smarter, Faster
Jur is a legal research platform serving the Philippines with case digests and jurisprudence resources.