CHAVES V. PUBLIC ESTATES AUTHORITY, G.R. NO. 133250, JULY 9, 2002
CHAVES V. PUBLIC ESTATES AUTHORITY,
G.R. NO. 133250, JULY 9, 2002
TOPIC/DOCTRINE
Lands
reclaimed from foreshore and submerged areas also form part of the public
domain and are also inalienable, unless converted pursuant to law into
alienable or disposable lands of the public domain.
To
insure such equitable distribution, the 1973 and 1987 Constitutions have barred
private corporations from acquiring any kind of alienable land of the public
domain.
FACTS
On
November 20, 1973, the government, through the Commissioner of Public Highways,
signed a contract with the Construction and Development Corporation of the
Philippines ("CDCP" for brevity) to reclaim certain foreshore and
offshore areas of Manila Bay. The contract also included the construction of
Phases I and II of the Manila-Cavite Coastal Road. CDCP obligated itself to
carry out all the works in consideration of fifty percent of the total
reclaimed land.
On
February 4, 1977, then President Ferdinand E. Marcos issued Presidential Decree
No. 1084 creating PEA. PD No. 1084 tasked PEA "to reclaim land,
including foreshore and submerged areas," and "to develop, improve,
acquire, x x x lease and sell any and all kinds of lands." On
the same date, then President Marcos issued Presidential Decree No. 1085
transferring to PEA the "lands reclaimed in the foreshore and offshore of
the Manila Bay" under the Manila-Cavite Coastal Road and Reclamation
Project (MCCRRP).
On
January 19, 1988, then President Corazon C. Aquino issued Special Patent No.
3517, granting and transferring to PEA "the parcels of land so reclaimed
under the Manila-Cavite Coastal Road and Reclamation Project (MCCRRP)
containing a total area of one million nine hundred fifteen thousand eight hundred
ninety four (1,915,894) square meters." Subsequently, on April 9, 1988,
the Register of Deeds of the Municipality of ParaƱaque issued Transfer
Certificates of Title Nos. 7309, 7311, and 7312, in the name of PEA, covering
the three reclaimed islands known as the "Freedom Islands" located at
the southern portion of the Manila-Cavite Coastal Road, ParaƱaque City. The
Freedom Islands have a total land area of One Million Five Hundred Seventy
Eight Thousand Four Hundred and Forty One (1,578,441) square meters or 157.841
hectares.
On
April 25, 1995, PEA entered into a Joint Venture Agreement ("JVA" for
brevity) with AMARI, a private corporation, to develop the Freedom Islands. The
JVA also required the reclamation of an additional 250 hectares of submerged
areas surrounding these islands to complete the configuration in the Master
Development Plan of the Southern Reclamation Project-MCCRRP. PEA and AMARI
entered into the JVA through negotiation without public bidding.
On
April 27, 1998, petitioner Frank I. Chavez ("Petitioner" for brevity)
as a taxpayer, filed the instant Petition for Mandamus with Prayer for the Issuance of a Writ
of Preliminary Injunction and Temporary Restraining Order. Petitioner contends the government stands to lose billions
of pesos in the sale by PEA of the reclaimed lands to AMARI. Petitioner assails
the sale to AMARI of lands of the public domain as a blatant violation of
Section 3, Article XII of the 1987 Constitution prohibiting the sale of
alienable lands of the public domain to private corporations. Finally,
petitioner asserts that he seeks to enjoin the loss of billions of pesos in
properties of the State that are of public dominion.
ISSUE
Whether
the stipulations in the amended joint venture agreement for the transfer to AMARI
of certain lands, reclaimed and still to be reclaimed, violate the 1987
constitution.
RULING
The court held that foreshore and submerged areas form part of the
public domain and are inalienable. Lands reclaimed from foreshore and submerged
areas also form part of the public domain and are also inalienable, unless
converted pursuant to law into alienable or disposable lands of the public
domain. Historically, lands reclaimed by the government are sui generis, not available for sale to private parties unlike
other alienable public lands. Reclaimed lands retain their inherent potential
as areas for public use or public service. Alienable lands of the public
domain, increasingly becoming scarce natural resources, are to be distributed
equitably among our ever-growing population. To insure such equitable
distribution, the 1973 and 1987 Constitutions have barred private corporations
from acquiring any kind of alienable land of the public domain.
Here, the court ruled that the reclaimed
lands comprising the Freedom Islands, now covered by certificates of title in
the name of PEA, are alienable lands of the public domain.
PEA may lease these lands to private corporations but may not sell or transfer
ownership of these lands to private corporations. PEA may only sell these lands
to Philippine citizens, subject to the ownership limitations in the 1987
Constitution and existing laws, and that the submerged areas of Manila Bay
remain inalienable natural resources of the public domain until classified as
alienable or disposable lands open to disposition and declared no longer needed
for public service. The government can make such classification and declaration
only after PEA has reclaimed these submerged areas. Only then can these lands
qualify as agricultural lands of the public domain, which are the only natural
resources the government can alienate.