Title
Mateo vs. Department of Agrarian Reform
Case
G.R. No. 186339
Decision Date
Feb 15, 2017
Landowners challenged DAR's expropriation valuation under CARP; SC ruled complaint not premature, remanded for proper just compensation determination, and awarded legal interest for delayed payment.

Case Digest (G.R. No. 186339)
Expanded Legal Reasoning Model

Facts:

  • Parties and Property
    • Petitioners: Vivencio, Eugenio, Joji and Myrna Mateo—registered owners of 1,323,112 sqm (112.3112 ha) of coconut and riceland in Fabrica, Bacon District, City of Sorsogon, covered by TCT No. T-22822.
    • Respondents: Department of Agrarian Reform (DAR), Land Bank of the Philippines (LBP, financial intermediary under CARP), and farmer-beneficiaries under RA 6657 (CARP).
  • Expropriation and Preliminary Valuation
    • June 1994: DAR entered the subject property for CARP coverage; LBP offered ₱52,000/ha as just compensation. Petitioners rejected this valuation.
    • DAR Adjudication Board (DARAB) conducted summary proceedings (dates not specified), adopting LBP’s valuation: ₱6,112,598.86 for 72.2268 ha and ₱2,949,313.14 for 36.3196 ha. Petitioners again rejected.
  • Judicial Proceedings Before the SAC
    • April 30, 1997: Petition for determination of just compensation filed as Civil Case No. 97-6331 before the RTC of Sorsogon City, Branch 52, sitting as Special Agrarian Court (SAC).
    • Respondents’ Answers: LBP and DAR argued the complaint was premature for non-exhaustion of administrative remedies. Pre-trial ensued and closed.
  • Evidence Adduced at Trial
    • Petitioners:
      • Testimonies of Dr. Eleseo Mateo (father), Engr. Florencio Dino (commissioner), Manuel Docot (farmer) and Danilo Federio (caretaker).
      • TCT No. T-22822; Memorandum of Valuation (MoV); Claim Folder Profile and Valuation Summary; deeds of sale of nearby parcels (₱300,000–₱400,000/ha); newspaper clipping of land sale at ₱350,000/ha; Engr. Dino’s appraisal; deed of sale to NHA at ₱245,000/ha.
    • DAR: Testimonies of Romeo Brotamante (agriculturist), Ireneo Defeo (gov’t employee), Cresenciano Lagajeno (farmer); Field Investigation Report (March 29, 1996); ledger cards (Dec 1994–Jun 1997); passbooks showing ₱601,789.97 withdrawns.
    • LBP: Testimony of Monita Balde; Claims Valuation and Processing Form.
  • SAC Decision (July 4, 2002)
    • Appointment of Commissioners: Engr. Dino for petitioners and Jesus Empleo for LBP.
    • Adopted Engr. Dino’s report (land FMV P4,764,323; trees/improvements P1,251,980; total P6,016,303) but deemed too low given location within city limits and comparables commanding ≥P350,000/ha.
    • Adjusted land FMV to P500,000/ha; computed additional values for produce (1994–2002) and improvements; recapitulated:
      • Coconut land (108 ha) FMV: ₱54,000,000
      • Net copra produce: ₱13,057,397
      • Improvements & trees: ₱1,251,930
      • Riceland (3.7649 ha) FMV & produce: ₱3,436,085
      • Less prior lease rentals: ₱601,789.00
      • Grand total just compensation: ₱71,143,623.00
    • Decretal: Ordered LBP to pay petitioners ₱71,143,623 less prior payments, without pronouncement as to costs.
  • Court of Appeals Proceedings
    • August 4, 2008 Decision: CA granted LBP and DAR appeals, holding SAC lacked jurisdiction due to non-exhaustion of DARAB’s primary jurisdiction; complaint dismissed without prejudice.
    • January 28, 2009 Resolution: Motion for reconsideration by petitioners denied.

Issues:

  • Jurisdiction and Exhaustion of Administrative Remedies
    • Did the SAC have jurisdiction to determine just compensation absent prior summary administrative proceedings by DARAB?
    • Was the petitioners’ complaint premature for failure to exhaust administrative remedies?
  • Compliance with Section 17 of RA 6657 and DAR Administrative Orders
    • Did the SAC disregard the factors prescribed by Section 17 of RA 6657 in computing just compensation?
    • Did the CA err in holding that the SAC failed to apply Section 17 and relevant DAR valuation formulas?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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