Title
Supreme Court
Hacienda Luisita, Inc. vs. Presidential Agrarian Reform Council
Case
G.R. No. 171101
Decision Date
Apr 24, 2012
HLI contested PARC's revocation of its Stock Distribution Plan, arguing over the date of "taking" for just compensation and distribution of land sale proceeds. The Supreme Court ruled the "taking" occurred in 1989, revoked FWBs' option to remain stockholders, and ordered land distribution with just compensation based on 1989 values.

Case Digest (G.R. No. 171101)
Expanded Legal Reasoning Model

Facts:

  • Parties and Proceedings
    • Petitioners: Hacienda Luisita, Inc. (HLI); petitioners-in-intervention: Luisita Industrial Park Corporation and Rizal Commercial Banking Corporation.
    • Respondents: Presidential Agrarian Reform Council (PARC); Agrarian Reform Secretary Pangandaman; farmworker-beneficiary groups (AMBALA; Mallari, Suniga, Andaya, et al.).
    • Relief sought: HLI’s certiorari petition to nullify PARC resolutions revoking its Stock Distribution Plan (SDP).
  • Background and Prior Resolutions
    • 1980–88 litigation: Government sued Tadeco to distribute Hacienda Luisita lands; Court of Appeals dismissed the case in 1988, conditioning dismissal on PARC approval of an SDP.
    • November 21, 1989: PARC Resolution No. 89-12-2 approves HLI’s SDP; FWBs become minority shareholders.
    • July 5, 2011 Decision: Supreme Court denies HLI’s petition, affirms PARC Resolutions 2005-32-01 and 2006-34-01, but grants original FWBs an option to remain as HLI stockholders or opt for land distribution.
    • November 22, 2011 Resolution: On motions for reconsideration, Supreme Court rescinds the FWBs’ option to stay as stockholders, reaffirms SDP revocation, preserves homelot and other benefits, and orders distribution of remaining lands under CARP.
  • Motions for Reconsideration
    • HLI’s December 16, 2011 Motion: Challenges (a) date of taking for just compensation; (b) revocation of stock-option; (c) return of sale proceeds; (d) entitlement to interest.
    • Mallari, et al.’s December 9, 2011 Motion: Argue (a) no CARL requirement for FWBs majority control under stock option; (b) land distribution causes harm; (c) operative-fact doctrine; (d) return of SDOA benefits; (e) alternative date of taking.

Issues:

  • What is the appropriate date of taking for determining just compensation?
  • Was it proper to revoke the FWBs’ option to remain as HLI stockholders?
  • Should proceeds from the sale of the 500-hectare “converted” land and the 80.51-hectare SCTEX parcel be returned to FWBs?
  • Are homelots already distributed to FWBs subject to just compensation, and who should receive it?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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