G.R. No. L-43938 - Republic vs. Court of Appeals

Three consolidated petitions (G.R. Nos. L-43938, L-44081 & L-44092) contest the Court of Appeals’ reversal of a trial court decision in Land Registration Case No. 146.
On February 11, 1965, Jose Y. de la Rosa (and on behalf of his children) applied for Torrens registration of nine lots in Tuding, Itogon, Benguet Province, subdivided as Lots 1–9 under Plan PSU-225009.

Benguet Consolidated, Inc. (BCI) as to Lots 1–5, claiming the June Bug mineral claim located in 1909 and acquired in 1934.
Atok-Big Wedge Mining Company (Atok) as to portions of Lots 1–5 and all of Lots 6–9, holding the Emma and Fredia claims located in 1930–31 and acquired in 1931.
Republic of the Philippines (Bureau of Forestry Development) as to all nine lots, asserting inclusion in the Central Cordillera Forest Reserve and non-alienability under the 1935/1973 Constitutions.

De la Rosa’s predecessors-in-interest (Balbalio and Alberto) claimed acquisition by prescription: ancestral possession, cultivation and tax declarations/receipts (1956–1964 for Balbalio; 1961–1964 for Alberto).
BCI’s proofs: actual, continuous, exclusive possession of Lots 1–5 in concept of owner; construction of adits; geological mappings and samplings; annual assessments and tax payments.
Atok’s proofs: open, continuous, exclusive possession; boring of mine tunnels; annual assessment work; payment of taxes on the Emma and Fredia claims.

Trial Court (1969) denied registration: applicants failed to prove ownership and possession.
Court of Appeals (1976) reversed: recognized de la Rosa’s surface rights but reserved sub-surface mining rights of BCI and Atok.
Both mining companies and the Republic appealed to the Supreme Court, contesting the bifurcation of surface and sub-surface rights and asserting superior vested mining rights.

Whether mining claims perfected prior to November 15, 1935, under the Philippine Bill of 1902 and Commonwealth Act No. 137, validly removed the land from the public domain and vested exclusive rights in locators.
Whether existing constitutional and statutory reservations (forest reserve proclamations; 1935/1973 Constitutional restrictions on alienability) could impair or annul vested mining rights.

Whether the de la Rosa family could acquire ownership by acquisitive prescription over land already segregated as mineral land by valid mining claims.
Whether the evidence of open, continuous, adverse and exclusive possession in the concept of owner was sufficient to establish title.