Title
Supreme Court
Land Bank of the Philippines vs. Dalauta
Case
G.R. No. 190004
Decision Date
Aug 8, 2017
Landowner disputes DAR's low valuation of 25.2160 hectares under CARP; SAC's jurisdiction upheld, but valuation remanded for recomputation using proper formula.

Case Digest (G.R. No. 190004)
Expanded Legal Reasoning Model

Facts:

  • Subject Property and Coverage
    • Respondent Eugenio Dalauta owned a 25.2160-hectare agricultural parcel in Florida, Butuan City (TCT No. T-1624).
    • DAR issued a CARP Notice of Coverage dated January 17, 1994 (received February 7, 1994) subjecting the land to compulsory acquisition.
  • Administrative Offers and Proceedings
    • Land Bank of the Philippines (LBP) offered ₱192,782.59 as just compensation; Dalauta rejected it.
    • The Provincial Agrarian Reform Adjudicator (PARAD) conducted summary proceedings and, in a December 4, 1995 Resolution, affirmed LBP’s valuation.
  • RTC/SAC Proceedings
    • Dalauta filed a petition with the Regional Trial Court sitting as Special Agrarian Court (SAC) on February 28, 2000, claiming LBP’s valuation violated DAR A.O. No. 6, s. 1992.
    • The SAC appointed commissioners who inspected the land and recommended ₱100,000 per hectare.
    • Evidence adduced:
      • Dalauta claimed a 1993 net income of ₱350,000 from falcata tree sales.
      • LBP’s appraisers testified the land was largely idle and valued it using the MV×2 formula.
  • SAC Decision (May 30, 2006)
    • Applied formula LV = (CNI ÷ .12 × 0.9) + (MV × 0.1); computed ₱2,639,557.00 for land plus ₱100,000 for a farmhouse.
    • Awarded ₱150,000 attorney’s fees, ₱50,000 litigation expenses, and commissioners’ fees.
  • CA Decision (September 18, 2009)
    • Held SAC jurisdiction proper; upheld the DAR A.O. No. 6 formula for land valuation.
    • Deleted the farmhouse award, attorney’s fees, and litigation expenses.
    • Reduced commissioners’ fees to ₱3,000 each; otherwise affirmed.
  • Rule 45 Petition to the Supreme Court
    • LBP challenged SAC jurisdiction in view of the PARAD decision’s finality and the 15-day DARAB rule.
    • LBP also contested the computation of just compensation.

Issues:

  • Jurisdiction
    • Did the SAC have original and exclusive jurisdiction despite the PARAD decision’s finality and the 15-day DARAB reglementary period?
  • Prescription
    • Is there a prescriptive period for filing a petition for judicial determination of just compensation, and if so, what is it?
  • Just Compensation
    • Did the SAC (and the CA) correctly compute just compensation under RA 6657, DAR A.O. No. 6, and other relevant guidelines?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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