Title
Land Bank of the Philippines vs. Pamintuan Development Company
Case
G.R. No. 167886
Decision Date
Oct 25, 2005
Dispute over just compensation for 274.9-hectare land; SC ruled LANDBANK's appeal valid, reversing lower courts' denial due to attorneys' presumed authority.

Case Digest (G.R. No. 167886)
Expanded Legal Reasoning Model

Facts:

  • Background of the Case
    • The case involves Land Bank of the Philippines (LANDBANK) challenging the denial of its notice of appeal in an agrarian reform dispute.
    • The dispute centers on DARAB Case No. 1204-0545-2003 for the “Preliminary Determination of Just Compensation” on respondent Pamintuan Development Company’s 274.9037-hectare lot in San Vicente, Makilala, Cotabato.
    • DARAB rendered a decision on April 27, 2004, fixing the just compensation at ₱58,237,301.68 and subsequently denied a motion for reconsideration by LANDBANK.
  • Filing of Notices and Representation
    • LANDBANK was initially represented by Piczon, Beramo & Associates at trial.
    • On June 4, 2004, Attys. Engilberto F. Montarde and Felix F. Mesa filed a Notice of Entry of Appearance on behalf of LANDBANK.
    • Within the prescribed period, on June 15, 2004, these counsels also filed a Notice of Appeal via registered mail, accompanied by a Certification signed by Loreto B. Corotan, Head of LANDBANK’s Agrarian Operations Center.
    • Respondent argued that the new counsels lacked proper authorization, questioning whether LANDBANK had effected a valid substitution of its former counsel.
  • The DARAB and Court Proceedings
    • On August 2, 2004, DARAB issued an order holding that Attys. Montarde and Mesa were without authority to represent LANDBANK since there was no valid substitution of the prior counsel.
    • The order declared that the April 27, 2004 decision had become final and executory based on the allegedly invalid notice of appeal.
    • LANDBANK filed a motion for reconsideration supported by two memoranda confirming the authority of Atty. Montarde to file the appeal.
    • The DARAB denied the motion for reconsideration, and the Court of Appeals later dismissed LANDBANK’s petition, sustaining DARAB’s finding regarding the counsel’s authority.
  • Intervention by the Supreme Court
    • LANDBANK filed the petition for certiorari, challenging both the decision of DARAB and the Court of Appeals.
    • A temporary restraining order was issued on June 6, 2005, enjoining the execution of DARAB’s April 27, 2004 decision.
    • The central factual dispute surrounding the authority of the new counsel to represent LANDBANK remained unresolved at lower levels.

Issues:

  • Whether the appearance of Attys. Montarde and Mesa via their Notice of Entry and subsequent Notice of Appeal was legally sufficient to bind LANDBANK.
    • Does the filing of a Notice of Entry of Appearance create a presumption that the counsel is properly authorized?
    • Is a Special Power of Attorney (SPA) and accompanying memoranda adequate to establish the authority for filing the notice of appeal?
  • Whether the failure to file a formal substitution of counsel invalidates the actions taken by the new counsel on behalf of LANDBANK.
    • Can the mere appearance of additional counsel be interpreted as a collaboration rather than a substitution?
    • Should the absence of a formal notice of substitution affect the validity of the appeals process?
  • Whether the rigid application of procedural rules regarding substitution and appearance frustrates the just, speedy, and inexpensive determination of the dispute.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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