Title
Land Bank of the Philippines vs. Heirs of Listana
Case
G.R. No. 182758
Decision Date
May 30, 2011
Landowner Listana sold land to DAR; DARAB set compensation, LBP contested. Contempt, injunction, and bond disputes ensued; Supreme Court upheld bond retention pending final just compensation ruling.
A

Case Digest (G.R. No. 129133)

Facts:

  • Background of the Case
    • Land Bank of the Philippines (LBP) filed a petition for review on certiorari challenging the Court of Appeals’ decisions concerning its pending agrarian expropriation case.
    • The petition challenges prior orders—including the 30 January 2008 Decision and 6 May 2008 Resolution—that upheld the decisions rendered by lower courts.
  • The Subject Property and Transaction
    • Severino Listana owned a 246.0561-hectare parcel in Inlagadian, Casiguran, Sorsogon, titled under Transfer Certificate of Title No. T-20193.
    • Listana voluntarily sold the property to the government through the Department of Agrarian Reform (DAR) under Republic Act No. 6657 (the Comprehensive Agrarian Reform Law of 1988).
  • Initiation of the Just Compensation Proceedings
    • The Department of Agrarian Reform Adjudication Board (DARAB) in Sorsogon initiated summary proceedings to determine the amount of just compensation for the property.
    • On 14 October 1998, DARAB set the compensation at P10,956,963.25 and ordered LBP to pay this amount to Listana.
  • Execution Attempt and Contempt Proceedings
    • The Provincial Agrarian Reform Adjudicator (PARAD) issued a writ of execution on 18 June 1999 ordering Land Bank Manager Alex A. Lorayes to pay the determined compensation, but Lorayes refused to comply.
    • Subsequently, Listana filed a motion for contempt against Lorayes on 2 September 1999 with the PARAD, which later led to further administrative actions.
  • Judicial Proceedings Initiated by LBP
    • On 6 September 1999, LBP filed a petition for judicial determination of the amount of just compensation before the Regional Trial Court (RTC), Branch 52 in Sorsogon City, contesting the DARAB’s valuation.
    • Concurrently, the PARAD granted Listana’s motion for contempt and in its orders (20 August 2000 and 25 October 2000) clarified matters relating to contempt and dismissed LBP’s petition.
  • Orders of Preliminary Injunction and Posting of Bond
    • On 29 January 2001, the RTC granted a writ of preliminary injunction enjoining the PARAD from executing the warrant of arrest against Lorayes pending final resolution of the just compensation case.
    • LBP complied by posting a cash bond amounting to P5,644,773.02 as a condition for the injunction, designed to secure any damages Listana might incur.
  • Subsequent Appeals and Reinstatement of Injunction Orders
    • Listana challenged the RTC’s preliminary injunction by filing a motion for reconsideration; however, this was denied in a 2 April 2001 order.
    • The Court of Appeals later set aside these RTC orders in its 11 December 2001 Decision, only for the Supreme Court in Land Bank of the Philippines v. Listana, Sr. to reinstate the RTC’s injunction order, thereby declaring void all proceedings based on the improper contempt motion.
  • Motion to Withdraw the Cash Bond and Court’s Rulings
    • On 26 May 2004, LBP filed a motion to withdraw the posted cash bond, relying on the later Supreme Court Decision (G.R. No. 152611, dated August 5, 2003) which had declared the arrest orders illegal.
    • In its 4 August 2005 Order and 18 October 2005 Order, the RTC denied LBP’s motion to withdraw the bond, holding that the underlying reason for the bond—securing Listana’s potential damages—remained valid pending final resolution of the expropriation proceedings.
    • The Court of Appeals, in its 30 January 2008 Decision and subsequent 6 May 2008 Resolution, affirmed the RTC’s orders, thereby leaving the bond in place.

Issues:

  • Principal Issue Raised
    • Whether LBP is entitled to withdraw the P5,644,773.02 cash bond that was posted as a condition for the issuance of a writ of preliminary injunction pending the final determination of the just compensation for the expropriated property.
  • Sub-issues
    • Whether the cash bond had become moot or academic in light of subsequent Supreme Court decisions declaring some related orders null and void.
    • Whether the bond is necessary to secure any potential damages Listana might incur if the final determination of just compensation were to favor him.
    • The extent of jurisdiction of administrative agencies (e.g., DARAB and PARAD) versus the Special Agrarian Courts over issues related to just compensation and the execution of related orders.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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