CLINICAL LEGAL EDUCATION PROGRAM

RAPHAEL DESCARTES M. ROLDAN

JD 2-A

Case Title: RAMON M. ALFONSO, petitioner, vs. LAND BANK OF THE PHILIPPINES
and DEPARTMENT OF AGRARIAN REFORM, respondents.

Case No.: G.R. No. 181912 & 183347

Date: November 29, 2016

Ponente: Jardeleza, J.

Doctrine: xxx

Facts: Cynthia Palomar was the registered owner of two (2) parcels of land. One is located
in San Juan, Sorsogon City, with an area of 1.6530 hectares covered by Transfer
Certificate of Title (TCT) No. T-21136, 6 and the other in Bibincahan, Sorsogon
City, with an area of 26.2284 hectares covered by TCT No. T-23180. on April 16,
2001. Upon the effectivity of RA 6657, the DAR sought to acquire Palomar's San
Juan and Bibincahan properties at a valuation of P36,066.27 and P792,869.06, 8
respectively, Palomar, however, rejected the valuations. Palomar sold her rights
over the two properties to petitioner Ramon M. Alfonso. On May 13, 2005, the SAC
rendered its Decision. Finding the valuations of both the LBP and the Provincial
Adjudicator to be "unrealistically low," the SAC adopted Commissioner Chua's
valuation as set out in the Cuervo Report.

Issue: Whether courts obliged to apply the DAR formula in cases where they are asked to
determine just compensation for property covered by RA 6657?

Ruling: The Court partially grants the petition.

The Court thus for now gives full constitutional presumptive weight and credit to
Section 17 of RA 6657, DAR AO No. 5 (1998) and the resulting DAR basic
formulas. Out of regard for the DAR's expertise as the concerned implementing
agency, courts should henceforth consider the factors stated in Section 17 of RA
6657, as amended, as translated into the applicable DAR formulas in their
determination of just compensation for the properties covered by the said law. If, in
the exercise of their judicial discretion, courts find that a strict application of said
formulas is not warranted under the specific circumstances of the case before them,
they may deviate or depart therefrom, provided that this departure or deviation is
supported by a reasoned explanation grounded on the evidence on record. Courts of
law possess the power to make a final determination of just compensation.