Chavez vs.

Public Land (Estates) Authority

G.R. 132250
July 9, 2003

FACTS:
The Commission on Public Highways (CHP) signed a contract with the Construction
and Development Corporation of the Philippines (CDCP) to reclaim foreshore and offshore
areas of Manila Bay. The contract included the building of a coastal road. In 1977 President
Marcos created the Public Estates Authority (PEA) to reclaim, develop improve, lease, and
sell all kinds of land. Marcos also transferred the reclamation of manila Bay to PEA, along
with all future projects. In 1988, Aquino granting/ transferring to PEA the Reclamation
project of Manila Bay and issued 3 Titles in the name of PEA.

PEA entered into a Joint Venture Agreement (JVA) with Amari to develop the 3 lands
and did so without public auction. Sen. Pres. Ernesto Maceda said in a Senate Hearing that
the said JVA was a scam so they conducted an investigation and concluded that.

1. PEA seeks to transfer the lands to Amari under the JVA which are public dominion
and cannot be alienated
2. The titles on the said lands are void
3. The JVA is illegal

Petitioner Francisco Chavez as a tax payer filed a petition for mandamus and a T.R.O.
saying the government will lose billions if PEA sells the land to Amari, and wants them to
disclose the terms of redemption of the JVA, invoking Art. 2 sec 28 and Art 3, sec 3 of the
constitution. The sale of the land to Amari was also unconstitutional according to Art. 12
sec 3 of the constitution.

ISSUE:

1. Whether the stipulations in the JVA for transfer of the and to Amari is
unconstitutional.

RULING:

The court used the Regalian Doctrine to resolve the issue.

Ownership of lands reclaimed from foreshore and submerged areas is rooted in the
Regalian Doctrine, which holds that the state owns all lands and waters of public dominion.
Regalian Doctrine is the foundation of the principle of land ownership, that “all lands that
were not acquired by the government by purchase or grant belong to the public dominion.

Without legislative authority, PEA can’t reclaim land of public domain and would be
subject to a constitutional ban on private corporations acquiring alienable land of public
domain. Both 1973 and 1987 constitution adopt the Regalian Doctrine. The 1987
constitution continues the state policy that private corporations may not acquire alienale
land of public domain but may also do so through lease.

Purpose of the consti ban on the acquisition of public lands to corporation is to

diffuse land ownership and to encourage owner-cultivatorship and to stop social unrest
regarding the said land. The ban is also to prevent 1 person from monopolizing the
agricultural lands by creating multiple corporations to own them.

The transfer of such reclaimed land to Amari is unconstitutional because private

corporations can’t acquire land of public domain. Regalian Doctrine holds that submerged
and foreshore areas can’t be alienated because they are public domain unless the
legislature says otherwise.