Case Digest (G.R. No. 183573)
Facts:
Dizon Copper Silver Mines, Inc. v. Dr. Luis D. Dizon, G.R. No. 183573, July 18, 2012, Supreme Court Second Division, Perez, J., writing for the Court. Petitioner is Dizon Copper-Silver Mines, Inc. (petitioner or Dizon Mines); respondent is Dr. Luis D. Dizon (respondent).
The underlying dispute concerns 57 mining claims in San Marcelino, Zambales. Celestino M. Dizon filed declarations of location over those claims in 1935. In 1967 Celestino and other registered claim-owners assigned the 57 claims to petitioner. In 1975 petitioner entered an Operating Agreement with Benguet Corporation (then Benguet Consolidated, Inc.), appointing Benguet as operator and granting certain authorities. In 1978 six of the 57 claims became the subject of Mining Lease Contracts (MLCs) issued in the names of Celestino’s heirs; those MLCs ran until 31 January 2005.
In 1991 Benguet filed MPSA‑P‑III‑16 to convert the mining interests it operated into Mineral Production Sharing Agreements (MPSAs). After the 1995 enactment of Republic Act No. 7942 (the Philippine Mining Act), petitioner and Benguet terminated their Operating Agreement in 1997; Benguet later assigned MPSA‑P‑III‑16 to petitioner in 2004 and the DENR MGB recorded the assignment. Petitioner also filed another MPSA application (MPSA‑P‑III‑03‑05) on 31 January 2005 covering all 57 claims. On 28 February 2005 respondent filed MPSA‑P‑III‑05‑05 covering an overlapping area that included the six claims under MLCs.
The DENR MGB Regional Office III found overlaps and other problems. On 29 December 2005 DENR Secretary Defensor issued an order declaring petitioner’s MPSA‑P‑III‑16 and MPSA‑P‑III‑03‑05 void ab initio, and holding respondent’s MPSA application valid and existing. The DENR Acting Secretary denied petitioner’s motion for reconsideration on 14 February 2006 on the ground that respondent’s application had already been approved into MPSA No. 227‑2006‑III (issued 17 January 2006). Petitioner appealed to the Office of the President (OP).
On 4 December 2006 the OP reversed the DENR orders, set aside issuance of MPSA No. 227‑2006‑III, and remanded petitioner’s MPSA‑P‑III‑03‑05 for re‑evaluation. Respondent appealed to the Court of Appeals under Rule 43. The Court of Appeals, in CA‑G.R. SP No. 99947 (decision dated 9 May 2008, resolution 1 July 2008), reversed the OP and reinstated the DENR Secretary’s 29 December 2005 and 14 February 2006 orders, thereby declaring petitioner’s MPSA applications void ab initio and sustaining respondent’s MPSA. Petitioner filed this Petition for Review on Certiorari under Rule 45.
...(Subscriber-Only)Issues:
- Did the Court of Appeals err in reinstating the DENR Secretary’s orders declaring petitioner’s MPSA applications void ab initio and upholding respondent’s MPSA application?
- Whether Benguet Corporation had authority to file MPSA‑P‑III‑16 on behalf of petitioner and whether the inclusion of the six claims under existing MLCs in any MPSA application was valid?
- Whether the DENR Secretary committed grave abuse of discretion in approving respondent’s MPSA (MPSA No. 227‑2006‑III) without requiring compliance wi...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)