Title
VHJ Construction and Development Corp. vs. Court of Appeals
Case
G.R. No. 128534
Decision Date
Aug 13, 2004
Petitioner VHJ Construction disputed private respondents' claim as agricultural tenants; SC ruled they were mere farm workers, lacking landowner consent and harvest-sharing evidence.

Case Digest (G.R. No. 128534)
Expanded Legal Reasoning Model

Facts:

  • Parties and Procedural Background
    • VHJ Construction and Development Corporation, through its President Vicente D. Herce, Jr., is the petitioner.
    • The respondents are the Court of Appeals, the Department of Agrarian Reform Adjudication Board (DARAB), and private respondents Gelacio Batario and Martin Batario.
    • The case arose from a petition for review on certiorari under Rule 45 of the Rules of Court challenging prior decisions:
      • A Court of Appeals Resolution dated November 27, 1996 dismissing the petitioner’s review for failure to comply with a certification requirement.
      • A subsequent Resolution dated March 6, 1997 denying the petitioner’s motion for reconsideration.
  • Property and Lease Contract Details
    • The petitioner owned two adjacent parcels of sugarland:
      • Parcel covered by Transfer Certificate of Title (TCT) No. T-97535 – 30,123 square meters.
      • Parcel covered by TCT No. T-97536 – 17,424 square meters, located in Barangays Banay-Banay and Pulo, Cabuyao, Laguna.
    • On October 24, 1988, the petitioner entered into a one-year lease with Sinforoso Entredicho for an annual rental of P12,000, paid via an Allied Banking Corporation check.
    • The lease agreement explicitly stated that no tenancy relationship existed between the petitioner and Entredicho.
    • During the lease, Entredicho allowed Gelacio and Martin Batario (the private respondents) to work on the land, and he received his share of the harvest.
  • Extensions of the Lease and Dispute Over Possession
    • The original lease was extended on October 27, 1989, and again extended for another year thereafter.
    • After receiving rental payments, when the lease expired in 1991, the petitioner demanded that Entredicho vacate the premises.
    • Entredicho instructed the private respondents to cease work and vacate, but they instead initiated legal action.
  • Filing of the Suit by the Private Respondents
    • On October 3, 1991, the private respondents filed a complaint before DARAB in Sta. Cruz, Laguna (DARAB Case No. IV-LA-0137-91).
    • They sought a declaration that they were agricultural tenants and pleaded for a preliminary injunction.
    • Their complaint alleged that:
      • Entredicho had employed them as agricultural share tenants.
      • They were qualified beneficiaries under the Comprehensive Agrarian Reform Program (CARP).
      • They had been sharing the net produce and were entitled to tenurial security.
  • Petitioner’s Response and Counterclaim
    • The petitioner filed its answer with a counterclaim, asserting that:
      • Entredicho was merely a civil lessee, not an agricultural lessee.
      • The private respondents were simply farm laborers, not agricultural tenants.
    • An affidavit by Entredicho was submitted, where he admitted employing the private respondents without the petitioner’s knowledge.
  • Decisions rendered by the Agrarian Reform Adjudicatory Bodies
    • The Provincial Agrarian Reform Adjudicator (PARAD) issued a decision on May 16, 1994, dismissing the complaint for lack of merit:
      • Declaring that the private respondents were mere farm workers.
      • Stating that the subject land was not covered by the CARP Law.
    • The private respondents appealed to the DARAB Central Office, which, on June 28, 1996, reversed PARAD’s decision:
      • Declaring the respondents as de jure and bona fide leasehold tenants.
      • Relying on Section 6 of Republic Act No. 3844 (the Agricultural Land Reform Code) to establish that the act of allowing cultivation in exchange for a share in the harvest formed an agricultural leasehold relationship.
  • Reinstatement of Proceedings Before the Supreme Court
    • After the dismissal of its petition by the Court of Appeals, the petitioner filed the instant petition before the Supreme Court.
    • The petitioner contested that:
      • The CA improperly dismissed its petition for failing to comply with SC Circular No. 28-91.
      • The DARAB erred in declaring the private respondents as agricultural tenants.
    • A motion for reconsideration was filed, and on October 8, 1997, the Supreme Court granted the motion, reinstating the petition and requiring the private respondents to comment.

Issues:

  • The Central Question
    • Whether the private respondents are de jure agricultural tenants of the petitioner.
  • Ancillary Issues
    • Whether the requisite elements of an agricultural tenancy—especially the aspect of shared harvest between the landowner and the alleged tenant—are present.
    • Whether a tenancy relationship can be presumed merely on the basis of personal cultivation of the land by the respondents without express consent or a sharing agreement with the petitioner.
    • The proper application and limits of Section 6 of RA 3844 in conferring tenancy rights when the landowner’s consent is absent, as in the case of a civil lessee’s unauthorized arrangement.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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