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Buklod vs. EMRASON, G.R. No. 131481 and GR No.

131624, dated 16 March 2011


(645 SCRA 401)
Facts: In 1965, EM Ramos and Sons, Inc (EMRASON) acquired a 372-hectare land in Brgy.
Langkaan, Municipality of Dasmarias, Cavite.
The Municipality of Dasmarias, Cavite passed Municipal Ordinance 1 entitled An Ordinance
Providing Subdivision Regulation and Providing Penalties for Violation Thereof sometime in
1971, in accordance with the Local Autonomy Act (R.A. 2264).
EMRASON applied for authorization to develop its 372-hectare land into a residential
subdivision named "Traveller's Life Homes" in 1972. The said municipalitys Council passed
Municipal Ordinance 29-A on May 1972 which approved EMRASONs application. However,
due to some unexpected problems, EMRASONs implementation of their subdivision project
was delayed.
Meanwhile, R.A. 6657 (The Comprehensive Agrarian Reform Law of 1988, CARL for brevity)
became effective on 15 June 1988.
On September 23, 1988, the Municipal Mayor of Dasmarias, Cavite told EMRASON the
approval for its 372 hectares property in Barrios Bukal and Langkaan, Dasmarias, Cavite to be
developed into a residential, industrial, commercial and golf course project. The conversion was
done in conformity with the approved Development Plan of Municipality of Dasmarias, Cavite.
Then the Aquino government planned conversion of the tenanted neighboring property of the
National Development Company (NDC) into an industrial estate managed through a joint
venture scheme of NDC and Marubeni Corporation. As part of the conversion, each tenantfarmer who opted to remain at the NDC property will receive three (3) hectares of land as
compensation. Department of Agrarian Reform (DAR) was tasked to acquire additional lands
from nearby areas since NDC propertys size turned out insufficient for both demands of the
proposed industrial project and for the governments made commitment to the tenant-farmers of
giving them a new land. Thus, EMRASONs land was earmarked for the said acquisition.
On August 29, 1990, Office of Agrarian Reform Secretary Benjamin Leong sent out the first of
four batches of acquisition notices of EMRASONs property covering 303.38545 hectares of
land at Barangay Langkaan, Dasmarias, Cavite. EMRASON protested to these notices.
The Department of Agrarian Reform Region IVs Legal Division through its Hearing Officer
Victor Baguilat, through its 28 August 1992 decision, declared all the notices of acquisitions null
and void because the properties subject of acquisition proceedings are exempted from CARP
coverage, pursuant to DOJ Opinion No. 44 (1990) of then Sec. Franklin Drilon. The said DOJ
Opinion stated that lands already converted to non-agricultural uses before effectivity of
Comprehensive Agrarian Reform Law are no longer covered by agrarian reform. DAR objected
to Baguilats decision as well as the opinion of Sec. Drilon since it maintains that it has to
provide the members of Buklod ng Maqbubukid Sa Lupaing Ramos (BUKLOD) three (3)
hectares of land as tenant-farmers of the NDC property.

The Court of Appeals via its 26 March 1997 decision ruled in favor of EMRASON and against
BUKLOD, stating that the land was already converted or classified as residential by the
Municipality of Dasmarias prior to Comprehensive Agrarian Reform Laws effectivity in 1988.
Issues:
1. Whether the Court of Appeals was right in ruling that the land owned by EMRASON, Inc
was not covered by agrarian reform since it was classified as non-agricultural/residential
lands by Municipal Ordinance 29-A?
Legal Provisions cited:
Municipal Ordinance 29-A made by the Municipality of Dasmarinas which says, Resolved, as
it is hereby resolved, to approve the application for subdivision containing an area of Three
Hundred Seventy-Two (372) Hectares situated in Barrios Bocal and Langkaan, named as
Traveller's Life Homes. Resolved that the Municipal Ordinance regarding subdivision
regulations existing in this municipality shall be strictly followed by the subdivision.
Section 3 of the Local Autonomy Act (R.A. No. 2264), which empowers a Municipal Council to
adopt zoning and subdivision ordinances or regulations for the municipality where it belongs.
Section 4 of R.A. 6657 or Comprehensive Agrarian Reform Law (CARL) of 1988 which says
that agrarian reform shall "cover, regardless of tenurial arrangement and commodity produced,
all public and private agricultural lands.
Held/Ruling: The Supreme Court ruled in favor of EMRASON, Inc. It stated that the lands
involved in the present case are not subject to agrarian reform since it was classified as
residential land by Municipal Ordinance 29-A of Municipality of Dasmarias prior to the
effectivity of the Comprehensive Agrarian Reform Law. It also reiterated the ruling in Natalia vs.
Department of Agrarian Reform that since a special law classified the land for residential,
commercial, or industrial use, that land or property cannot be anymore subject to agrarian
reform. The Court also used sec. 3 of RA 2264 or Local Autonomy Act to validate EMRASONs
application via Ordinance 29-A made by the Municipality of Dasmarias, Cavite.

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