Case Digest (G.R. No. 177511)
Facts:
Land Bank of the Philippines v. Fortune Savings and Loan Association, Inc., G.R. No. 177511, June 29, 2010, Supreme Court Second Division, Abad, J., writing for the Court.Petitioner is the Land Bank of the Philippines; respondent is Fortune Savings and Loan Association, Inc., represented in these proceedings by the Philippine Deposit Insurance Corporation as its liquidator. The dispute concerns just compensation for a 4,230-square meter agricultural parcel in San Gregorio, Malvar, Batangas (TCT 33051) formerly owned by Fortune Savings.
Fortune Savings acquired the parcel by foreclosure and purchase at public auction for P80,000 after foreclosing on a borrower's P71,500 mortgage. Fortune Savings offered to sell the lot to the Department of Agrarian Reform (DAR) for inclusion in the Comprehensive Agrarian Reform Program (CARP). Land Bank, as financial intermediary under Executive Order No. 405, fixed the property's value at P6,796.00. Rejecting that figure, Fortune Savings initiated a summary administrative proceeding with the DAR Adjudication Board (DARAB) for determination of just compensation.
On March 3, 1999 DARAB fixed just compensation at P93,060.00. Land Bank received a copy on March 17, 1999 and, under Rule XIII, Section 11 of the DARAB Rules, had 15 days to file a judicial action in the appropriate Regional Trial Court (RTC). Land Bank filed Agrarian Case No. 99-0214 in the RTC of Lipa City on April 5, 1999 (the fifteenth day, April 1, 1999, fell on Maundy Thursday). The RTC dismissed that case without prejudice on December 14, 1999 for Land Bank’s failure to effect service of summons.
Fortune Savings later ceased operations and was placed under the Philippine Deposit Insurance Corporation. On April 7, 2000 Land Bank filed a new petition for determination of just compensation in Agrarian Case No. 2000-0155. Fortune Savings failed to file a responsive pleading and was declared in default; Land Bank presented its evidence ex parte and the RTC rendered judgment on May 30, 2002, adopting Land Bank’s valuation of P6,796.00 based on the valuation formula in Section 17 of the Comprehensive Agrarian Reform Law (CARL).
Fortune Savings (through PDIC) appealed to the Court of Appeals (CA-G.R. CV 76816), which on August 29, 2006 reinstated the March 3, 1999 DARAB decision and its P93,060.00 valuation, re...(Pro-only)
Issues:
- Did the Court of Appeals err in holding that the DARAB determination became final and executory because Land Bank filed Agrarian Case No. 99-0214 beyond the 15-day period under Rule XIII, Section 11 of the DARAB Rules?
- Did the Court of Appeals err in adopting the DARAB valuation of P93,060.00 instead of Land B...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)