Title
Land Bank of the Philippines vs. Pamintuan Development Company
Case
G.R. No. 167886
Decision Date
Oct 25, 2005
Dispute over just compensation for 274.9-hectare land; SC ruled LANDBANK's appeal valid, reversing lower courts' denial due to attorneys' presumed authority.

Case Summary (G.R. No. 167886)

Background Facts

On April 27, 2004, the Department of Agrarian Reform Adjudication Board (DARAB) issued a decision determining the just compensation for the land at P58,237,301.68. LANDBANK sought reconsideration, which was denied, and the denial was received on June 11, 2004. Attys. Engilberto F. Montarde and Felix F. Mesa filed a Notice of Entry of Appearance and a Notice of Appeal on June 15, 2004, but their authority to act on behalf of LANDBANK was challenged by the respondent. The respondent contended that the new counsels did not have the requisite authorization.

Legal Proceedings and Issues Raised

DARAB ruled that Montarde and Mesa lacked the authority to represent LANDBANK since no valid substitution of counsel had occurred, leading to the assertion that the decision from April 27, 2004, had become final and executory. LANDBANK's subsequent motion for reconsideration, supported by two memoranda attesting to the lawyers' authority, was also denied. An appeal to the Court of Appeals was dismissed, affirming DARAB's ruling.

Court’s Assessment of Representation Authority

The Supreme Court highlighted that an attorney is presumed to possess proper authority to represent their client unless proven otherwise. Section 21, Rule 138 of the Rules of Court dictates that no written power of attorney is needed for representation in court. The mere act of filing a notice of entry of appearance establishes the presumption of authority. In the presence of a Special Power of Attorney (SPA), which had been provided by LANDBANK, authority was sufficiently established for Montarde and Mesa to act on behalf of the petitioner.

Ratification and Authority to Appeal

The Court stated that any unauthorized act by an attorney can be ratified by the client, thereby validating earlier actions retroactively. The lack of formal substitution of counsels was immaterial, as LANDBANK had not intended to replace its original counsel but to add collaborating counsel, thereby maintaining their connection to the case. The Court also differentiated this

...continue reading

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.