Title
Supreme Court
Samahan ng Magsasaka at Mangingisda ng Sitio Naswe, Inc. vs. Tan
Case
G.R. No. 196028
Decision Date
Apr 18, 2016
Farmers' association challenges lifting of CARP coverage on sequestered land sold to private bidder; SC denies petition, citing lack of real party in interest.

Case Summary (G.R. No. 196028)

Factual Background

The petitioner alleges that its members, long-time residents engaged in farming and fishing, derived their livelihood from the land in question. The PCGG published an invitation to bid for the sale of a 34-hectare portion of a 129.4227-hectare land, a part of which was identified under the Comprehensive Agrarian Reform Program (CARP). Following the bidding process, Tomas Tan emerged as the highest bidder, and the sale of the property was approved by various entities, including the Office of the President. In July 2000, the Department of Agrarian Reform (DAR) lifted the Notice of Coverage regarding the property, leading to petitions by the petitioner filed later, which were ultimately denied based on the clarification that the property was government-owned and thus not subject to CARP.

Legal Proceedings and Decisions

The petitioner contended that the lifting of the Notice of Coverage was irregular but faced dismissal from the DAR. Their appeals to both the Office of the President and the Court of Appeals (CA) were denied, the latter ruling that the petitioner lacked the standing as it was not a real party in interest. It was underscored that real parties in interest must have a substantial and material interest in the subject matter of the dispute, which the petitioner failed to establish, lacking proof of its members as qualified beneficiaries.

Real Party-in-Interest Requirement

The Court highlighted the importance of the real party-in-interest principle, defining a real party as one who stands to gain or lose from the outcome of the legal proceedings. It emphasized that simply being members of an association does not automatically qualify individuals to challenge a decision related to land reform unless they can substantiate their claims of being recognized beneficiaries under CARP. The Court cited precedents wherein members who merely held potential claims or recommendations were not deemed real parties in interest, reinforcing the need for a legal basis for any claims to the land.

Administrative Authority and Finality of Orders

The decision to lift the Notice of Coverage was determined by the DAR Secretary, an act which was later affirmed by the Office of the President. The Court found that since the administrative decisions made by the DAR Secretary have attained finality and were not shown to be made with grave abuse of discretion, they cannot be reviewed or

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