Title
Santa Rosa Mining Co., Inc. vs. Leido, Jr.
Case
G.R. No. L-49109
Decision Date
Dec 1, 1987
A mining corporation challenged Presidential Decree No. 1214, claiming unconstitutionality, but the Court upheld the decree, affirming state control over unpatented mining claims.

Case Digest (G.R. No. 171348)

Facts:

  • Parties Involved
    • Petitioner: Santa Rosa Mining Company, Inc.
      • A mining corporation duly organized under Philippine laws.
      • Holder of fifty (50) mining claims located in Jose Panganiban, Camarines Norte.
      • Claims acquired under the provisions of the Act of the U.S. Congress dated 1 July 1902 (the "Philippine Bill of 1902").
    • Respondents:
      • Hon. Minister of Natural Resources, Jose J. Leido, Jr.
      • Director of Mines, Juanito C. Fernandez.
  • Background and Chronology of Events
    • Presidential Decree No. 1214 (issued on 14 October 1977) required holders of subsisting and valid patentable mining claims located under the provisions of the Philippine Bill of 1902 to file a mining lease application within one (1) year from the approval of the Decree.
    • Petitioner filed its mining lease application on 13 October 1978 "under protest" with a reservation indicating that it was not waiving its rights over its mining claims until the validity of the Decree had been determined by the Court.
    • On 10 October 1978, three days before filing the mining lease application, petitioner initiated the present special civil action for certiorari and prohibition.
    • The petition sought:
      • A declaration of the unconstitutionality of Presidential Decree No. 1214.
      • An injunction against respondent public officials from enforcing the Decree.
    • Prior Proceedings and Interim Relief:
      • The Court initially issued a temporary restraining order on 19 October 1978, obliging respondents to comment on the petition, with the TRO set to continue until further order by the Court.
  • Legal Claims and Contentions
    • Petitioner’s assertions:
      • Claims to a vested right over its mining claims, asserting that they were already regarded as its private and exclusive property based on past decisions.
      • Cites rulings from the Court of First Instance of Camarines Norte in land registration proceedings (including a September 1951 case involving Gervacio Liwanag) and LRC Case No. 240 (filed in 1960 and decided in 1974).
      • Argues that the Decree amounts to a deprivation of property without due process of law.
    • Respondents’ contentions:
      • Petitioner lacked standing because it had not exhausted all available administrative remedies.
      • Highlight the pending appeal with the Office of the President concerning the ruling of the DNR Secretary issued on 2 April 1977 in DNR Case No. 4140.
      • Assert that forty-four (44) of the petitioner's fifty (50) mining claims were found void for lacking valid "tie points" and that all mining claims were declared abandoned and cancelled due to non-compliance under the Philippine Bill of 1902 and Executive Order No. 141.
    • Prior Jurisprudence and Legal Principles Invoked:
      • Petitioner referred to decisions in McDaniel v. Apacible and Gold Creek Mining Corp. v. Rodriguez to support the claim that mining claim location confers a property right.
      • Respondents pointed to the principle of exhaustion of administrative remedies, notably emphasizing the decision in Ham v. Bachrach Motor Co. Inc.
  • Administrative and Substantive Issues Underlying the Case
    • The status of petitioner’s mining claims:
      • Whether they were valid, subsisting, and patentable.
      • Whether they had become abandoned or cancelled due to non-compliance with legal requirements.
    • The procedural propriety of filing a petition for certiorari and prohibition without fully exhausting administrative remedies.
    • The legitimacy and constitutionality of Presidential Decree No. 1214 as an exercise of state power over natural resources and the public domain.

Issues:

  • Standing and Procedural Issues
    • Whether petitioner had the necessary standing to file the special civil action without first exhausting all available administrative remedies.
    • Whether the existence of a pending appeal with the Office of the President precludes the Court from addressing the petition at that time.
  • Substantive Validity of the Mining Claims
    • Whether petitioner’s mining claims, though located under the Philippine Bill of 1902 and previously recognized in certain land registration proceedings, can be deemed vested property or merely possessory rights.
    • Whether, even if presumed valid at the time of location, the claims could be forfeited or deemed abandoned for failure to comply with legal requirements.
  • Constitutionality of Presidential Decree No. 1214
    • Whether the Decree, by mandating the filing of mining lease applications and effectively waiving the right to a patent, constitutes a deprivation of property without due process.
    • Whether the Decree is consistent with the sovereign power of the State over natural resources and the public domain as provided under the relevant constitutional provisions.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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