745 Phil. 666
VILLARAMA, JR., J.:
On 27 September 1988, plaintiff-in-intervention PABC filed a Motion for Intervention and a Complaint-in-intervention to recover possession (not title) of real properties registered in its name (PABC's Busuanga Properties), located in Busuanga, Palawan, and covered by Transfer Certificate of Title Nos. 6110 and 6111. PABC prayed that: (a) it be adjudged the true and lawful owner of the subject properties; and (b) defendant-in-intervention Republic be ordered to return possession of the subject parcels of land to plaintiff-in-intervention.
In its Complaint-in-intervention, PABC explained that:On 14 November 1988, the Court issued a Resolution granting PABC’s Motion to Intervene and admitting the Complaint-in-intervention. Defendant-in-intervention Republic filed a Motion for Reconsideration, which was denied by the Court in a Resolution dated 4 January 1989.
- Among the assets allegedly belonging to defendants-in-intervention Ferdinand E. Marcos and Imelda R. Marcos sought to be forfeited or reconveyed to plaintiff in the instant action is the real property known as the Yulo King Ranch located at Busuanga, Palawan, listed in Annex A of the complaint and the expanded complaint, as part of the properties of defendant-in-intervention Peter Sabido;
- The property (i.e. Yulo King Ranch) was, prior to sequestration, then controlled by defendant-in-intervention YKR Corporation wherein defendants-in-intervention Sabido and Yulo are the controlling stockholders on record;
- The Yulo King Ranch includes two (2) parcels of land and all the improvements therein which are owned by the plaintiff-in-intervention;
- Sometime in 1975, without the knowledge or consent of the plaintiff-in-intervention, the defendant-in-intervention YKR Corporation unlawfully entered into and occupied said two (2) parcels of land and all the improvements thereon which are owned by the plaintiff-in-intervention;
- On or about 2 April 1986, defendant-in-intervention Republic of the Philippines, through the PCGG, sequestered the Yulo King Ranch and gave the possession and control of all the assets in said ranch, including the two parcels of land owned by plaintiff-in-intervention, to the then Ministry of Agriculture; and
- Defendant-in-intervention Republic of the Philippines is obligated to x x x return possession of those (2 parcels of) lands to plaintiff-in-intervention which was a victim of the Marcos rule.
On 31 January 1989, PABC received Sabido’s Answer with Compulsory Counterclaim (to Complaint-in-intervention), wherein Sabido:On 26 April 2007, PABC served a Request for Admissions on all the defendants-in-intervention, requesting the admission of the following:
- Denied that he had acted in concert with defendants-in-intervention Ferdinand E. Marcos and Imelda R. Marcos in illegally acquiring the real property which is the subject of the Complaint-in-intervention, the truth being that at the time of the alleged unlawful act in 1975, defendant-in-intervention Sabido had no involvement directly or indirectly with co-defendants-in-intervention Marcoses and YKR Corporation, much less in the alleged unlawful acquisition of said property;
- Denied that the Yulo King Ranch forms part of his properties;
- Admitted that the Republic through the PCGG[,] sequestered the Yulo King Ranch.
Defendant-in-intervention Republic filed its “Reply” on 9 May 2007 admitting the following:
1.2. Title to the properties [PABC's Busuanga properties] is registered in the name of plaintiff-in-intervention PABC; 1.3. The properties are legally and beneficially owned by plaintiff-in-intervention PABC; 1.4. The properties have never been registered in the names of any of the defendants-in-intervention; 1.5. Plaintiff-in-intervention PABC did not execute any deed or document transferring the ownership or possession of the properties to any of the defendants-in-intervention or to any other person; 1.6. Plaintiff-in-intervention PABC is, and has never ceased to be, the true, lawful and registered owner of the properties; 1.7. The properties are not assets of defendant-in-intervention YKR; x x x x 1.10. Sometime in 1975, without the knowledge or consent of plaintiff-in-intervention PABC, defendant-in-intervention YKR entered into and occupied the properties and used them for its cattle breeding and dispersal operations; 1.11. Defendant-in-intervention YKR possessed and had control of the properties during the time that the Marcos Government declared Martial Law; 1.12. Plaintiff-in-intervention PABC demanded that defendant-in-intervention YKR vacate the properties, but the demand was not heeded; 1.13. Plaintiff-in-intervention PABC could not take any judicial action without risk to itself and its stockholders, because they had been warned that defendants-in-intervention YKR and its owners were close to or associated with defendants-in-intervention Marcoses, and that such action would be futile; 1.14. Plaintiff-in-intervention PABC could not obtain judicial relief during the Martial Law regime without incurring the ire of the Marcoses and risking retaliation; x x x x 1.17. On or about 2 April 1986, defendant-in-intervention Republic, through the PCGG, sequestered YKR and gave the possession and control of all its assets to the then Ministry of Agriculture.In the same Reply, Republic denied that: a) the properties are legally and beneficially owned by PABC; b) the properties have never been registered in the names of any of the defendants-in-intervention; and c) PABC is, and has never ceased to be, the true, lawful and registered owner of the properties on account of the existence of Presidential Proclamation No. 1387, entitled “Reserving and Establishing As a Pasture Reserve a Certain Parcel of Land of the Public Domain Situated in the Island of Busuanga, Province of Palawan” and Presidential Decree No. 1297, entitled “Centralizing the Importation of Ruminants for Breeding and Slaughter And Beef”’, which placed the entire Busuanga Ranch as reserved grazing public land.
- Prior to the issuance of the Sequestration Order dated 2 April 1986, the properties were possessed by defendants-in-intervention YKR;
- YKR entered into and occupied the properties and used them for its cattle breeding and dispersal operations;
- YKR possessed and had control of the properties during the time that the Marcos Government declared Martial Law;
- On or about 2 April 1986, defendant-in-intervention Republic, through the PCGG, sequestered YKR’s assets and turned over the management and operation of the ranch x x x to the Bureau of Animal Industry;
- The properties are not assets of defendant-in-intervention YKR.
On 11 May 2007, defendants-in-intervention YKR Corporation and seven out of the ten Yulo Heirs filed their Answer to the Request for Admissions, wherein they answered that they cannot truthfully admit or deny the following matters:According to YKR Corporation and seven out of the ten Yulo Heirs, a truthful admission or denial of the above-stated matters could not be made because all the records of YKR Corporation have been taken by the PCGG when it was sequestered.
- Title to the properties is registered in the name of plaintiff-in-intervention PABC;
- The properties are legally and beneficially owned by plaintiff-in-intervention PABC;
- The properties have never been registered in the names of any of the defendants-in-intervention;
- Plaintiff-in-intervention PABC did not execute any deed or document transferring the ownership or possession of the properties to any of the defendants-in-intervention or to any other person;
- Plaintiff-in-intervention PABC is, and has never ceased to be, the true, lawful and registered owner of the properties;
- The properties are not assets of defendant-in-intervention YKR;
- Prior to the issuance of the Sequestration Order dated 2 April 1986, the properties were possessed by defendants-in-intervention YKR;
- Sometime in 1975, without the knowledge or consent of plaintiff-in-intervention PABC, defendant-in-intervention YKR entered into and occupied the properties and used them for its cattle breeding and dispersal operations;
- Defendants-in-intervention YKR possessed and had control of the properties during the time that the Marcos Government declared Martial Law.
On the other hand, [d]efendant-in-intervention Sabido did not answer PABC’s Request for Admissions despite due notice.
In their Motion for Summary Judgment pursuant to Section 1, Rule 35 of the Revised Rules of Court, plaintiff-in-intervention PABC contends that:
1. There is no genuine issue that defendant-in-intervention Sabido has any interest in the Busuanga Properties, as he has admitted or should be deemed to have admitted PABC’s title over the same. Having failed to file an answer to PABC’s Request for Admissions, Sabido is deemed to have admitted each of the matters of which an admission is requested, pursuant to Rule 26, Section 2, of the Rules of Court.
2. There is no genuine issue that YKR Corporation and seven out of the ten Yulo Heirs have any interest in the Busuanga Properties, as they have not validly denied PABC’s title over the same. Defendants-in-intervention YKR Corporation and seven out of the ten Yulo Heirs neither admitted nor denied most of the facts stated in PABC’s Request for Admissions, including PABC’s ownership of the Busuanga Properties, on the ground that all records of YKR Corporation have been taken by the PCGG when it was sequestered. Furthermore, PABC contends that YKR Corporation and seven out of the ten Yulo Heirs’ Answer is obviously evasive and cannot be considered a specific denial considering that they do not expressly admit or deny PABC’s ownership of the Busuanga Properties – a matter which, even without the records, ought to be within their personal knowledge. PABC concludes that YKR Corporation and seven out of the ten Yulo Heirs’ response is in the nature of a negative pregnant which is equivalent to an admission, it being pregnant with admissions of the substantial facts alleged in the Request for Admission of PABC.
3. There is no genuine issue that the Republic has any interest in the Busuanga Properties, as it has not validly denied PABC’s title over the same. PABC contends that the provisions of Presidential Proclamation No. 1387 and Presidential Decree No. 1297 are not inconsistent with and do not affect PABC’s registered title to the Busuanga Properties; and as such, the Republic should be deemed to have failed to specifically deny the matters stated in PABC’s Request for Admissions, including PABC’s registered title to the Busuanga Properties. Moreover, Presidential Proclamation No. 1387 was issued only on 13 February 1975, or many decades after the Busuanga Properties were originally registered in the Register of Deeds of Palawan, as private properties on 1 July 1916 and 21 May 1919, respectively. Likewise, Presidential Decree No. 1297 does not contain anything that would support the PCGG’s claim of ownership over the Busuanga Properties. In fact, Presidential Decree No. 1297 provides that the approximately 40,000 hectares of grazing land located in Busuanga, Palawan, are placed under the management of King Ranch pursuant to a Technical Assistance Agreement. Thus, Presidential Decree No. 1297 also shows that YKR Corporation never had title to these properties.
4. There is no genuine issue that the Busuanga Properties are either ill-gotten wealth or sequestered assets. Since the Republic admits that the Busuanga Properties are neither ill-gotten nor sequestered, then the PCGG which was created and tasked to recover ill-gotten wealth of the Marcoses and their associates, had absolutely no authority to take possession of the Busuanga Properties on the basis of Presidential Proclamation No. 1387 and Presidential Decree No. 1297, considering that the laws defining the statutory authority of the PCGG, Executive Order Nos. 1, 2 and 14, state that the PCGG can only seize and recover ill-gotten wealth accumulated by former President Ferdinand E. Marcos, his immediate family, relatives and close associates. It is the Solicitor General and not the PCGG which is the government agency tasked to resolve issues of whether a real property is land of the public domain under Presidential Proclamation No. 1387 and Presidential Decree No. 1297 and whether PABC’s titles to the property are invalid.
On the other hand, defendants YKR Corporation and seven out of the ten Heirs of the Late Luis A. Yulo filed their “OPPOSITION TO MOTION FOR SUMMARY JUDGMENT” and argued that the motion for summary judgment filed by plaintiff-in-intervention PABC is not proper considering that herein defendants have not filed an answer to the complaint-in-intervention.
In its Reply, PABC claims that the contention raised by defendants is lacking in merit. It asserts that this Court, in a Resolution dated 28 November 1991, already ruled that the filing of answers to PABC’s Complaint-in-intervention is only permissive and not mandatory, citing Rule 12, Section 2(c), of the former Rules of Court, hence, the non-filing of such an answer cannot be a valid basis to oppose the Motion for Summary Judgment; secondly, YKR Corporation and seven out of the ten Yulo Heirs are estopped from claiming that they have the right to file an answer to PABC’s complaint-in-intervention and from relying on their choice to not file an answer as a basis for opposing the Motion for Summary Judgment. PABC further contends that YKR and seven out of the ten Yulo Heirs’ Answer to PABC’s Request for Admissions provides sufficient basis for the rendition of a summary judgment as they actually already responded to PABC’s allegations and causes of action therein.
For its part, plaintiff Republic filed a Comment/Opposition wherein it argues that the Busuanga Breeding and Experimental Station (BBES) in Busuanga, Palawan, is not a sequestered asset because it belongs to the government pursuant to Presidential Proclamation No. 1387 and Presidential Decree No. 1297 which placed the same as reserved grazing public land. It also added that the term Busuanga Properties, as used by PABC, is misleading. Said term tends to encompass all the properties located in the BBES such as the land and all the improvements thereon, including all the assets and properties of YKR Corporation which were sequestered by the PCGG, when, in fact, PABC’s claim is confined only to two (2) parcels of land situated within the BBES in Busuanga, Palawan, and does not include the assets and properties of YKR Corporation. Plaintiff Republic also noted that its interest in the subject land finds basis not from a Sequestration Order but from Presidential Proclamation No. 1387 and Presidential Decree No. 1297 which classified the BBES as a reserved grazing public land, and pointed out that these laws came before the subject lands were registered in the name of PABC on 12 May 1975, hence, whatever rights PABC may have acquired thereon must be subjected to the rights of the government, as conferred by the above-mentioned laws. It further emphasized that PABC’s claim that the Republic’s denials relating to PABC’s ownership of the subject lands are in the nature of a negative pregnant, is erroneous, considering that the Republic has denied all of the PABC’s allegations relating to its ownership of the said parcels of land by invoking the provisions of Presidential Proclamation No. 1387, Presidential Decree No. 1297 and Presidential Decree No. 1593.
Secondly, Republic contends that the Sandiganbayan is not the proper court to decide PABC’s claim of ownership over the subject land considering that under Republic Act No. 7975, the Sandiganbayan does not have the power and jurisdiction to determine ownership of land not falling within the civil cases filed pursuant to and in connection with Executive Order Nos. 1, 2, 14 and 14-a.
In its Reply to Republic’s Comment/Opposition, PABC reiterated its arguments and insisted that it is clear that the PCGG did not have authority to seize control and possession of the Busuanga Properties pursuant to Presidential Proclamation No. 1387 and Presidential Decree No. 1297, and further stressed that the Republic has never denied that it was PCGG and not another government agency which actually seized possession of the Busuanga Properties and that the Republic, through the PCGG, took possession of the same by reason of the inapplicable Sequestration Order dated 2 April 1986 and not because of Presidential Proclamation No. 1387 and Presidential Decree No. 1297. PABC claims that it does not need to file any action to prove its ownership of the Busuanga Properties, because it is clear and undisputed that PABC is the registered owner by virtue of its Transfer Certificate of Title Nos. 6110 and 6111 dated 12 May 1975, which are presumed to be valid and binding on the whole world.[7]
When the pleadings on file show that there are no genuine issues of fact to be tried, the Rules of Court allows a party to obtain immediate relief by way of summary judgment. Rule 35 of the Rules of Court which gives authority to trial courts to grant relief by summary judgment is intended to expedite or promptly dispose of cases where the facts appear undisputed and certain from the pleadings, admissions and affidavits. That is, when the facts are not in dispute, the court is allowed to decide the case summarily by applying the law to the material facts. In other words, in a motion for summary judgment, the crucial question is: are the issues raised in the pleadings genuine, sham or fictitious, as shown by affidavits, depositions or admissions accompanying the motion?[8]
- Whether or not the Court has jurisdiction to resolve PABC’s claim over the subject lands; and
- Whether or not the government has a superior right than that of PABC’s over the subject properties by virtue of Presidential Proclamation No. 1387 and Presidential Decree No. 1297.[14]
Upon the recommendation of the Secretary of Natural Resources, and pursuant to the authority vested in me by law, I, FERDINAND E. MARCOS, President of the Philippines, do hereby withdraw from sale, settlement or any other form of disposition, exploration or exploitation, and reserve as a pasture reserve, subject to private rights, if any there be, a certain parcel of land of the public domain situated in the island of Busuanga, Province of Palawan, x x x.[19]
x x x Nonetheless, while it is true that PABC’s Certificates of Title to the properties were registered in its name only on 12 May 1975, PABC’s predecessors-in-interest have already acquired private rights over the subject lands upon issuance of Original Certificates of Title in the name of said predecessors-in-interest as early as 1 July 1916 and 21 May 1919, or more than 50 years before the issuance of Presidential Proclamation No. 1387, as reflected in PABC’s Transfer Certificate[s] of Title Nos. 6110 and 6111. Evidently, as early as 1916 and 1919, the subject lands were already under the private ownership of PABC’s predecessors-in-interest, and no longer part of the lands of the public domain.
Consequently, given that the very law cited by plaintiff Republic provides that its provisions and operation are subject to private rights, hence, the government must necessarily yield to the private rights of PABC’s predecessors-in-interest over the parcels of land as vested by their titles to the property which they acquired decades before the reservation of said land as pasture reserve. Among these rights which said predecessors-in-interest may exercise is the disposition and transfer of said land in favor of PABC. And by virtue of said transfer of title over the subject land, PABC has acquired all vested rights which its predecessors-in-interest exercised over said property, which rights are recognized and respected by Presidential Proclamation No. 1387. Hence, the withdrawal from sale, settlement or any other form of disposition, exploration or exploitation, and the subsequent reservation as a pasture reserve of the described parcel of land situated in the island of Busuanga, Palawan, as ordered by Presidential Proclamation No. 1387, cannot be made to apply to the titled property belonging to PABC as the same no longer forms part of the lands of the public domain.[22]
WHEREFORE, premises considered, the instant Motion for Summary Judgment is hereby GRANTED. Philippine Agri-Business Center Corporation is hereby declared the lawful owner of the real properties located in Busuanga, Palawan, covered by Transfer Certificate of Title Nos. 6110 and 6111. Plaintiff Republic of the Philippines is hereby ordered to return possession of said properties to Philippine Agri-Business Center Corporation.
SO ORDERED.[23]
[I.] THE SANDIGANBAYAN DISREGARDED THE LAW AND APPLICABLE JURISPRUDENCE IN RENDERING SUMMARY JUDGMENT AGAINST PETITIONERS.
[II.] THE SANDIGANBAYAN HAS NO JURISDICTION OVER THE COMPLAINT-IN-INTERVENTION.[26]
WITH ALL DUE RESPECT, THE SANDIGANBAYAN ERRED IN LAW WHEN IT GRANTED RESPONDENT’S MOTION FOR SUMMARY JUDGMENT EVEN IF THE SAME IS NOT SUPPORTED BY DEPOSITION, AFFIDAVIT OR ADMISSION ON THE RECORDS.[27]
SECTION 1. Summary judgment for claimant. – A party seeking to recover upon a claim, counterclaim, or cross-claim or to obtain a declaratory relief may, at any time after the pleading in answer thereto has been served, move with supporting affidavits, depositions or admissions for a summary judgment in his favor upon all or any part thereof.
SEC. 2. Summary judgment for defending party. – A party against whom a claim, counterclaim, or cross-claim is asserted or a declaratory relief is sought may, at any time, move with supporting affidavits, depositions or admissions for a summary judgment in his favor as to all or any part thereof.
SEC. 3. Motion and proceedings thereon. — The motion shall be served at least ten (10) days before the time specified for the hearing. The adverse party may serve opposing affidavits, depositions, or admissions at least three (3) days before the hearing. After the hearing, the judgment sought shall be rendered forthwith if the pleadings, supporting affidavits, depositions, and admissions on file, show that, except as to the amount of damages, there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.
Relief by summary judgment is intended to expedite or promptly dispose of cases where the facts appear undisputed and certain from the pleadings, depositions, admissions and affidavits. But if there be a doubt as to such facts and there be an issue or issues of fact joined by the parties, neither one of them can pray for a summary judgment. Where the facts pleaded by the parties are disputed or contested, proceedings for a summary judgment cannot take the place of a trial.[30]
An examination of the Rules will readily show that a summary judgment is by no means a hasty one. It assumes a scrutiny of facts in a summary hearing after the filing of a motion for summary judgment by one party supported by affidavits, depositions, admissions, or other documents, with notice upon the adverse party who may file an opposition to the motion supported also by affidavits, depositions, or other documents (Section 3, Rule 34). In spite of its expediting character, relief by summary judgment can only be allowed after compliance with the minimum requirement of vigilance by the court in a summary hearing considering that this remedy is in derogation of a party’s right to a plenary trial of his case. At any rate, a party who moves for summary judgment has the burden of demonstrating clearly the absence of any genuine issue of fact, or that the issue posed in the complaint is so patently unsubstantial as not to constitute a genuine issue for trial, and any doubt as to the existence of such an issue is resolved against the movant.[31]
- there must be no genuine issue as to any material fact, except for the amount of damages; and
- the party presenting the motion for summary judgment must be entitled to a judgment as a matter of law.
x x x The rule authorizing an answer to the effect that the defendant has no knowledge or information sufficient to form a belief as to the truth of an averment and giving such answer the effect of a denial, does not apply where the fact as to which want of knowledge is asserted, is so plainly and necessarily within the defendant’s knowledge that his averment of ignorance must be palpably true.[36] (Emphasis supplied.)
In the case at bar, none of the parties to whom a Request for Admissions was served by PABC have specifically denied PABC’s ownership over the subject properties. x x x On the other hand, YKR Corporation and seven out of the ten Yulo Heirs made no categorical admission or denial of the matters set forth in the Request for Admissions allegedly because all the records of YKR have been taken by the PCGG when it was sequestered. Although this form of response to a Request for Admissions is allowed by the Rules, the reason given by YKR Corporation and seven out of the ten Yulo Heirs that a truthful admission or denial of the matters set forth in the Request for Admissions cannot be made because all the records of YKR have been taken by the PCGG when it was sequestered is unconvincing because the matters requested for admission ought to be within the personal knowledge of YKR Corporation and seven out of the ten Yulo Heirs.[38]
If indeed YKR or the Yulo heirs have any right or interest in the properties covered by Transfer Certificates of Title Nos. 6110 and 6111 of the Register of Deeds of Palawan, then they ought to have made allegations of any knowledge or information as to the nature of such right or interest, or at the very least denied PABC’s ownership or right to possession over the subject properties, in their Answer to Request for Admissions of PABC dated May 11, 2007. x x x[39]
Even plaintiff Republic did not specifically deny PABC’s title to the properties, but instead claims a superior right to the subject properties by virtue of Presidential Proclamation No. 1387 and Presidential Decree No. 1297. Plaintiff Republic argues that whatever rights PABC may have acquired on the property must yield to or at least be subjected to the rights of the government, as conferred by Presidential Proclamation No. 1387 and Presidential Decree No. 1297 which came before the subject lands were registered in the name of PABC on 12 May 1975. x x x[44]
REPLY [TO REQUEST FOR ADMISSION NO. 1.1.] – Plaintiff cannot truthfully affirm or deny the Request No. 1.1 because the land subject matter thereof forms part and parcel of the land specially declared by Presidential Proclamation No. 1387 (Reserving and Establishing As A Pasture Reserve A Certain Parcel Of Land Of The Public Domain Situated In The Island Of Busuanga, Province Of Palawan) and Presidential Decree No. 1297 (Centralizing The Importation Of Ruminants For Breeding And Slaughter And Beef) as reserved land intended for grazing purposes.[45]
x x x Nonetheless, while it is true that PABC’s Certificates of Title to the properties were registered in its name only on 12 May 1975, PABC’s predecessors-in-interest have already acquired private rights over the subject lands upon issuance of the Original Certificates of Title in the name of said predecessors-in-interest as early as 1 July 1916 and 21 May 1919, or more than 50 years before the issuance of Presidential Proclamation No. 1387, as reflected in PABC’s Transfer Certificate[s] of Title Nos. 6110 and 6111. Evidently, as early as 1916 and 1919, the subject lands were already under the private ownership of PABC’s predecessors-in-interest, and no longer part of the lands of the public domain.[47]
The Sandiganbayan ruled 22 years ago that unless allowed to intervene, PABC “may not have any other logical or practical remedy for the protection of its rights in view of the extraordinary scope and nature of the instant sequestration proceedings.” Petitioners never questioned said ruling – until now, 22 long years after. Clearly, petitioners are estopped from assailing the said ruling by the Sandiganbayan, which has long been final.[55]