Title
Sta. Ines Melale Forest Products Corporation vs. Macaraig, Jr.
Case
G.R. No. 80849
Decision Date
Dec 2, 1998
A boundary dispute arose between timber license holders Sta. Ines, Kalilid, and Agwood over encroachment claims. Surveys confirmed Sta. Ines' violation, leading to liability for cut timber and upheld writ of attachment.
A

Case Digest (G.R. No. 80849)

Facts:

Sta. Ines Melale Forest Products Corporation v. Hon. Catalino Macaraig, Jr., et al., G.R. No. 80849; Sta. Ines Melale Forest Products Corporation v. Hon. Vicente A. Hidalgo, et al., G.R. No. 81114, December 02, 1998, Supreme Court Second Division, Puno, J., writing for the Court.

Petitioner Sta. Ines Melale Forest Products Corporation (Sta. Ines) held Timber License Agreement (TLA) No. 51 (issued July 28, 1967; expired June 30, 1983) covering forest lands in Agusan del Sur. Adjacent private respondents Agusan Wood Industries, Inc. (Agwood; TLA No. 197, issued December 12, 1973) and Kalilid Wood Industries, Inc. (Kalilid; TLA No. 232, issued June 8, 1973) claimed Sta. Ines had encroached on parts of their licensed areas. Surveys relevant to the dispute were the De la Cruz survey (ca. 1970) fixing the Sta. Ines–Agwood boundary, the Bote survey (1973–1978) for Kalilid that left a roughly 300‑meter gap, and a jointly‑agreed resurvey (the Bayla survey) conducted after a June 5, 1979 Memorandum of Agreement among the three licensees.

Under the June 5, 1979 Memorandum of Agreement the parties agreed to re‑run boundary lines (starting at Corner 4) and to accept the Bayla survey as final; Sta. Ines also agreed to stop felling in the disputed area pending the resurvey but was allowed to haul already felled timber. TMA Quiliano L. Bayla submitted a Relocation Survey Report (July 31, 1979) running Sta. Ines’ northern boundary at exactly 16,000 meters from Corner 4 and thereby leaving the 300‑meter gap outside Sta. Ines’ area.

Administrative adjudication followed: the Director of Forest Development issued an Order (Feb. 21, 1980) finding Sta. Ines had encroached and directing turnover/payment for felled timber; the Minister of Natural Resources dismissed Sta. Ines’s appeal (Decision dated May 3, 1983), and the Office of the President, through Executive Secretary Catalino Macaraig, Jr., and later Acting Deputy Executive Secretary Samilo Barlongay, affirmed those rulings (Decision June 29, 1987; Resolution Nov. 20, 1987). Those administrative determinations quantified timber felled by Sta. Ines as 8,231.22 cu.m. (Kalilid’s claim) and 9,802.50 cu.m. (Agwood’s claim).

Separately, on December 7, 1987 Kalilid filed in the Regional Trial Court (RTC), Agusan del Norte, Civil Case No. 3226, a Complaint for Attachment with Damages (P8,000,000 estimated value) and obtained an ex parte Writ of Attachment (Dec. 8, 1987) from Judge Vicente A. Hidalgo; the sheriff levied on Sta. Ines’ logs (2,600 cu.m.), vehicles and launches. Sta. Ines posted a counterbond (JCL Bond No. 300 for P500,000) which the bonding company later repudiated as spurious. The RTC denied Sta. Ines’s urgent motion to dissolve the writ and ordered the sale of attached logs (Order Dec. 24, 1987). Sta. Ines filed a Motion to Quash/Discharge in the RTC and separate petitions with the Supreme Court: G.R. No. 80849 (petition for certiorari, prohibition and injunction challenging the administrative rulings) and G.R. No. 81114 (petition for certiorari seeking annulment of the writ of attachment and related RTC orders).

This Court issued temporary restraining orders: Jan. 6, 1988 (enjoining further action by Judge Hidalgo and sheriffs in the RTC case) and Jan. 25, 1988 (enjoining enforcement of the administrative decisions). The petitions were consolidated; the Court gave due course and ordered memoranda (Resolution Feb. 19, 1992). Subsequent procedural matters included a 1991 fire damaging some impounded logs and this Court’s authorization (Aug. 12, 1992) allowing Sta. Ines to auction the burned logs under sheriff supervision. The consolidated petitions were resolved by the Court’s decision promulgated December 2, 1998.

Issues:

  • Did the public respondents (Director of Forest Development, Minister of Natural Resources, and the Office of the President officials) commit grave abuse of discretion in finding Sta. Ines guilty of encroachment and ordering turnover/payment of timber?
  • Did the Regional Trial Court commit grave abuse of discretion in issuing the Writ of Preliminary Attachment, denying the motion to dissolve/quash the attachment, and ordering the sale of attached logs?
  • Did the Bayla resurvey and the administrative rulings effect an unconstitutional deprivation of Sta. Ines’s property without due process (i.e., did the survey improperly modify Sta. Ines’s TLA area)?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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