Title
Bilag vs. Ay-ay
Case
G.R. No. 189950
Decision Date
Apr 24, 2017
Dispute over 159,496 sqm Baguio land; RTC dismissed quieting of title case, citing lack of jurisdiction over public land. SC upheld dismissal, ruling jurisdiction lies with Director of Lands.

Case Summary (G.R. No. 189950)

Key Dates and Applicable Law

Applicable constitutional framework: 1987 Philippine Constitution (decision date post‑1990). Statutory and regulatory sources invoked in the decision: Presidential Decree No. 1271 (PD 1271), Commonwealth Act No. 141 (Public Land Act). Relevant jurisprudence cited in the decision is also applied.

Facts

Respondents alleged that Iloc Bilag, predecessor‑in‑interest to petitioners, sold separate portions of the subject lands to respondents and executed corresponding Deeds of Sale, which were registered with the Register of Deeds of Baguio City. Respondents claimed delivery and continuous possession since 1976, introduction of improvements thereon, and that Iloc Bilag had caused the lands to be removed from Ancestral Land Claims. Petitioners refused to recognize those sales, asserted adverse rights, and allegedly threatened respondents’ possession and improvements. Respondents filed a Complaint for Quieting of Title with Prayer for Preliminary Injunction (Civil Case No. 5881‑R).

Procedural Posture — Motion to Dismiss

Petitioners moved to dismiss on three grounds: (1) lack of jurisdiction, alleging the subject lands are untitled public domain within the Baguio Townsite Reservation and that the Land Management Bureau/Director of Lands has exclusive authority to determine ownership; (2) prescription, laches, and estoppel based on respondents’ alleged delay (more than 27 years) in asserting their claims; and (3) res judicata, citing an earlier suit filed by respondents (Civil Case No. 3934‑R before RTC Branch 5) that was dismissed for failure to show convincing proof of ownership and whose dismissal was affirmed on appeal and finally closed.

RTC Ruling

The Regional Trial Court, Branch 61, Baguio City, issued an Order dated October 10, 2005 dismissing Civil Case No. 5881‑R on three grounds: (a) lack of authority to adjudicate the matter; (b) the Deeds of Sale could not yet be treated as title given respondents’ failure to perfect title or assert ownership/possession for 27 years; and (c) the complaint was barred by res judicata given the final decision in Civil Case No. 3934‑R.

Court of Appeals Ruling

The Court of Appeals, by Decision dated March 19, 2009, set aside the RTC’s dismissal and remanded the case for trial. The CA held that Civil Case No. 3934‑R (an action for injunction) and Civil Case No. 5881‑R (an action to quiet title) were different in nature, and thus res judicata did not bar the latter suit despite involving the same properties. On laches/prescription, the CA noted respondents’ allegation of possession since 1976 and concluded the action to quiet title was imprescriptible. The CA denied petitioners’ motion for reconsideration by Resolution dated September 3, 2009.

Issue Presented to the Supreme Court

Whether the Court of Appeals correctly set aside the RTC Branch 61 dismissal of Civil Case No. 5881‑R and properly remanded the case for trial.

Supreme Court’s Primary Holding

The petition was granted. The Supreme Court found the CA’s decision meritorious to reverse because the CA omitted analysis of the threshold issue of subject‑matter jurisdiction. Jurisdiction is fundamental and, where absent, the only proper action is dismissal; judgments or proceedings rendered without jurisdiction are null and void.

Supreme Court’s Analysis on Jurisdiction and PD 1271

The Court examined the nature of the subject lands and the relevant statutory framework. The parcel in question forms part of the Baguio Townsite Reservation; portions were purportedly awarded to Iloc Bilag pursuant to reopening of Civil Reservation Case No. 1, GLRO Record No. 211. PD 1271 expressly declared null and void all orders and decisions issued by the Court of First Instance of Baguio and Benguet in connection with the reopening of that case insofar as they decreed lands within the Baguio Townsite Reservation in favor of private individuals. PD 1271 provides a limited validation mechanism only for certificates of title issued on or before July 31, 1973, subject to specific conditions. The records showed the subject lands were untitled and

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