Chavez v.

Pea and Amari

Fact:
In 1973, the Comissioner on Public Hih!a"s entered into a contract to reclaim areas o#
$anila %a" !ith the Construction and &evelo'ment Cor'ortion o# the Phili''ines
(C&CP).
P*A (Public *states Authorit") !as created b" President $arcos under P.&. 1+,-, tas.ed
!ith develo'in and leasin reclaimed lands. /hese lands !ere trans#erred to the care
o# P*A under P.&. 1+,0 as 'art o# the $anila Cavite 1oad and 1eclamation Pro2ect
($C11P). C&CP and P*A entered into an areement that all #uture 'ro2ects under the
$C11P !ould be #unded and o!ned b" P*A.
%" 19,,, President A3uino issued 4'ecial Patent 5o. 3017 trans#errin lands to P*A. It
!as #ollo!ed b" the trans#er o# three /itles (73+9, 7311 and 7316) b" the 1eister o#
&eeds o# Parana3ue to P*A coverin the three reclaimed islands .no!n as the F1**&7$
I48A5&4.
4ubs3uentl", P*A entered into a 2oint venture areement (9:A) !ith A$A1I, a /hai;
Phili''ine cor'oration to develo' the Freedom Islands. Alon !ith another 60+ hectares,
P*A and A$A1I entered the 9:A !hich !ould later trans#er said lands to A$A1I. /his
caused a stir es'eciall" !hen 4en. $aceda assailed the areement, claimin that such
lands !ere 'art o# 'ublic domain (#amousl" .no!n as the <mother o# all scams=).
Peitioner Fran. 9. Chavez >led case as a ta?'a"er 'ra"in #or mandamus, a !rit o#
'reliminar" in2unction and a /17 aainst the sale o# reclaimed lands b" P*A to A$A1I
and #rom im'lementin the 9:A. Follo!in these events, under President *strada@s
admin, P*A and A$A1I entered into an Amended 9:A and $r. Chaves claim that the
contract is null and void.
Issue:
!An: the trans#er to A$A1I lands reclaimed or to be reclaimed as 'art o# the sti'ulations
in the (Amended) 9:A bet!een A$A1I and P*A violate 4ec. 3 Art. BII o# the 19,7
Constitution
!An: the court is the 'ro'er #orum #or raisin the issue o# !hether the amended 2oint
venture areement is rossl" disadvantaeous to the overnment.
Held:
7n the issue o# Amended 9:A as violatin the constitution:
1. /he 107.,- hectares o# reclaimed lands com'risin the Freedom Islands, no! covered
b" certi>cates o# title in the name o# P*A, are alienable lands o# the 'ublic domain. P*A
ma" lease these lands to 'rivate cor'orations but ma" not sell or trans#er o!nershi' o#
these lands to 'rivate cor'orations. P*A ma" onl" sell these lands to Phili''ine citizens,
sub2ect to the o!nershi' limitations in the 19,7 Constitution and e?istin la!s.
6. /he 096.10 hectares o# submered areas o# $anila %a" remain inalienable natural
resources o# the 'ublic domain until classi>ed as alienable or dis'osable lands o'en to
dis'osition and declared no loner needed #or 'ublic service. /he overnment can ma.e
such classi>cation and declaration onl" a#ter P*A has reclaimed these submered areas.
7nl" then can these lands 3uali#" as aricultural lands o# the 'ublic domain, !hich are
the onl" natural resources the overnment can alienate. In their 'resent state, the
096.10 hectares o# submered areas are inalienable and outside the commerce o# man.
3. 4ince the Amended 9:A see.s to trans#er to A$A1I, a 'rivate cor'oration, o!nershi'
o# 77.3- hectares11+ o# the Freedom Islands, such trans#er is void #or bein contrar" to
4ection 3, Article BII o# the 19,7 Constitution !hich 'rohibits 'rivate cor'orations #rom
ac3uirin an" .ind o# alienable land o# the 'ublic domain.
-. 4ince the Amended 9:A also see.s to trans#er to A$A1I o!nershi' o# 69+.10C
hectares111 o# still submered areas o# $anila %a", such trans#er is void #or bein
contrar" to 4ection 6, Article BII o# the 19,7 Constitution !hich 'rohibits the alienation
o# natural resources other than aricultural lands o# the 'ublic domain.
P*A ma" reclaim these submered areas. /herea#ter, the overnment can classi#" the
reclaimed lands as alienable or dis'osable, and #urther declare them no loner needed
#or 'ublic service. 4till, the trans#er o# such reclaimed alienable lands o# the 'ublic
domain to A$A1I !ill be void in vie! o# 4ection 3, Article BII o# the 19,7Constitution
!hich 'rohibits 'rivate cor'orations #rom ac3uirin an" .ind o# alienable land o# the
'ublic domain.