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BAGUIO Chavez vs. Amari

1) The case involves a joint venture agreement between the Philippine Estate Authority (PEA) and AMARI to develop reclaimed lands known as the "Freedom Islands" and additional submerged areas in Manila Bay. 2) The Supreme Court ruled that while PEA could lease the reclaimed Freedom Islands lands, it could not sell or transfer ownership of these public lands to a private corporation like AMARI. 3) The additional submerged areas also remained inalienable public domain until reclaimed, classified as alienable, and declared no longer needed for public use. Thus, the joint venture agreement's transfer of ownership of these lands to AMARI was unconstitutional.

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69 views2 pages

BAGUIO Chavez vs. Amari

1) The case involves a joint venture agreement between the Philippine Estate Authority (PEA) and AMARI to develop reclaimed lands known as the "Freedom Islands" and additional submerged areas in Manila Bay. 2) The Supreme Court ruled that while PEA could lease the reclaimed Freedom Islands lands, it could not sell or transfer ownership of these public lands to a private corporation like AMARI. 3) The additional submerged areas also remained inalienable public domain until reclaimed, classified as alienable, and declared no longer needed for public use. Thus, the joint venture agreement's transfer of ownership of these lands to AMARI was unconstitutional.

Uploaded by

Kim Arniño
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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BAGUIO, Sheila Marie M.

CHAVEZ vs. AMARI


G.R. No. 133250 July 9, 2002
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 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 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, 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. On December 29, 1981, then President Marcos issued a memorandum
directing PEA to amend its contract with CDCP, so that "All future works in MCCRRP shall be
funded and owned by PEA." Accordingly, PEA and CDCP executed a Memorandum of
Agreement. 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 Paraaque 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". On April 25, 1995, PEA entered into a Joint
Venture Agreement 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 28, 1995, the Board of Directors of PEA, in its Resolution No.
1245, confirmed the JVA. On June 8, 1995, then President Fidel V. Ramos, through then
Executive Secretary Ruben Torres, approved the JVA. On November 29, 1996, then Senate
President Ernesto Maceda delivered a privilege speech in the Senate and denounced the JVA as
the "grandmother of all scams." As a result, the Senate Committee on Government Corporations
and Public Enterprises, and the Committee on Accountability of Public Officers and
Investigations, conducted a joint investigation. The Senate Committees reported the results of
their investigation in Senate Committee. Among the conclusions of their report are: (1) the
reclaimed lands PEA seeks to transfer to AMARI under the JVA are lands of the public domain
which the government has not classified as alienable lands and therefore PEA cannot alienate
these lands; (2) the certificates of title covering the Freedom Islands are thus void, and (3) the
JVA itself is illegal.

ISSUE: Whether or not the amended joint venture agreement for the transfer to Amari of certain
lands reclaimed and still to be reclaimed violate the 1987 Constitution.

HELD: The 157.84 hectares of 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. The 592.15 hectares of 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. In their present
state, the 592.15 hectares of submerged areas are inalienable and outside the commerce of man.
Since the Amended JVA seeks to transfer to AMARI, a private corporation, ownership of 77.34
hectares of the Freedom Islands, such transfer is void for being contrary to Section 3, Article XII
of the 1987 Constitution which prohibits private corporations from acquiring any kind of
alienable land of the public domain. Since the Amended JVA also seeks to transfer to AMARI
ownership of 290.156 hectares of still submerged areas of Manila Bay, such transfer is void for
being contrary to Section 2, Article XII of the 1987 Constitution which prohibits the alienation of
natural resources other than agricultural lands of the public domain. PEA may reclaim these
submerged areas. Thereafter, the government can classify the reclaimed lands as alienable or
disposable, and further declare them no longer needed for public service. Still, the transfer of
such reclaimed alienable lands of the public domain to AMARI will be void in view of Section 3,
Article XII of the 1987 Constitution which prohibits private corporations from acquiring any
kind of alienable land of the public domain.

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