Title
Hilario vs. Intermediate Appellate Court
Case
G.R. No. 70736
Decision Date
Mar 16, 1987
Baltazar claimed tenancy on 1,740 sqm land in San Miguel, Bulacan, but the Supreme Court ruled it was residential, not agricultural, and no tenancy relationship existed with the Hilarios or Pengzon.

Case Summary (G.R. No. 70736)

Facts of the Case

On January 13, 1981, Salvador Baltazar filed a complaint in the Court of Agrarian Relations claiming to be a share tenant of a 2-hectare land owned by Socorro Vda. de Balagtas since January 1955. Following the death of Balagtas, Baltazar alleged continued possession and cultivation rights, stating he was threatened by the Hilarios, who had acquired part of the land after foreclosure by the Philippine National Bank (PNB). The Hilarios claimed to own the land by virtue of a deed of sale executed with PNB.

Proceedings in Lower Courts

The Court of Agrarian Relations initially ruled against Baltazar, determining that the land in question (4,000 square meters) was not an agricultural landholding. However, the Court of Appeals subsequently remanded the case for further proceedings based on insufficient evidence. Additional evidence was presented, and the CAR ultimately found that no tenancy relationship existed between Baltazar and the former owner, ordering Baltazar's ejectment.

Court of Appeals’ Ruling

In a reversal, the Intermediate Appellate Court declared Baltazar a leasehold tenant entitled to security of tenure, challenging the CAR's findings. The Hilarios contested this ruling, alleging that the Court of Appeals had overstepped by disregarding substantial evidence presented in the lower court and substituting its findings.

Supreme Court’s Analysis

The Supreme Court reaffirmed the CAR's findings, emphasizing that substantial evidence was lacking to support Baltazar's claim as a tenant. The Court noted that Baltazar's assertion of tenancy arose from a contractual agreement (kasunduan) with the previous landowner, but he had relinquished part of the land and did not possess a valid continuing contract with the new owner, Corazon Pengson, after her mother's death.

Legal Principles on Tenancy

The Court reiterated that tenancy is a legal relationship requiring consent from the landholder and necessitating an agricultural purpose for the land. The evidence indicated that the land in question was classified as residential and did not satisfy the criteria for establishing a tenancy relationship. Furthermore, Baltazar’s failure to pay rent or share of the produce to Pengson further undermined his claim.

Nature of the Property

The Supreme Court noted that the disputed property’s location in the poblacion of San Miguel suggested its residential nature, and it hig

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