Title
Supreme Court
Sta. Ines Melale Forest Products Corporation vs. Macaraig, Jr.
Case
G.R. No. 80849
Decision Date
Dec 2, 1998
A boundary dispute arose between timber license holders Sta. Ines, Kalilid, and Agwood over encroachment claims. Surveys confirmed Sta. Ines' violation, leading to liability for cut timber and upheld writ of attachment.

Case Summary (G.R. No. 160545)

Background of Timber License Agreements

On July 28, 1967, the Department of Agriculture and Natural Resources issued Timber License Agreement (TLA) No. 51 to Sta. Ines, which was valid until June 30, 1983. Multiple surveys defining the boundary lines between Sta. Ines, Agwood (formerly D.O. Plaza Enterprises, Inc.), and Kalilid were conducted. Notably, the De la Cruz survey established boundary lines in 1970, while the Bote survey in 1978 added complexity by creating discrepancies in boundary distances.

Complaints and Administrative Decisions

In March 1978 and February 1979, complaints were filed by Kalilid and Agwood against Sta. Ines, alleging encroachment on their respective licensed areas. A Memorandum of Agreement was executed on June 5, 1979, among the parties to establish their boundary lines through a resurvey, which was to be conducted by Timber Management Assistant Quiliano Bayla. The Bayla survey ultimately established a new boundary line that extended Sta. Ines’ northern boundary to exactly 16,000 meters.

Findings of Forest Development

On February 21, 1980, the Director of Forest Development ruled against Sta. Ines, affirming the findings of the Bayla survey and declaring that Sta. Ines had encroached upon the timber license areas of Kalilid and Agwood. The ruling included directives for Sta. Ines to pay for logs cut from these disputed areas.

Appeals to Higher Authorities

Sta. Ines filed appeals with the Ministry of Natural Resources, which were ultimately denied. The Ministry concluded that Sta. Ines was bound by the Memorandum of Agreement and the findings of the Bayla survey. Sta. Ines continued to assert that its operations were justified under its original boundary definitions per its TLA.

Office of the President's Decision

On June 29, 1987, the Office of the President upheld the Minister's decision, emphasizing that Sta. Ines acted in bad faith by continuing logging operations in the disputed area despite being aware of existing conflicts and prior orders to stop operations. The Office declared it unacceptable for Sta. Ines to benefit from its encroachment.

Motion for Reconsideration and Writ of Attachment

In November 1987, Sta. Ines filed a motion for reconsideration, which was denied. Concurrently, Kalilid filed a complaint for attachment in court, asserting damages due to embarrassment and fraud by Sta. Ines in felled logs presumed within its licensed area. The court granted Kalilid a writ of attachment, allowing for the levying of Sta. Ines’ assets, including logs and vehicles.

Controversy Over the Writ of Attachment

Sta. Ines contested the writ of attachment, arguing procedural defects, including a claim that the presiding judge acted while on leave. However, the court found the issuance of the writ to be consistent with the legal standards for securing claims for damages.

Final Judgement

The Supreme Court dismissed both petitions

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