G.R. No. 43238 ; November 28, 1936
FORTUNATO ORTUA, plaintiff-appellee, vs. EULOGIO RODRIGUEZ, Secretary of Agriculture and Commerce and SIMEON RAMOS, Director of Lands, defendants-appellants.

FACTS

Fortunato Ortua filed a sales application to purchase a tract of public land in 1920, which was approved and given an entry number by the Bureau of Lands. He took possession and introduced improvements. In 1928, a protest was filed alleging Ortua was a Chinese citizen and thus disqualified from purchasing public land. The Director of Lands cancelled his application and ordered him to pay rentals. The Secretary of Agriculture affirmed the decision but reduced the rental amount to P400, which Ortua paid under protest. Ortua then filed a mandamus proceeding. The Supreme Court, in a prior decision, held that Ortua was a Philippine citizen and qualified to purchase the land. The present case concerns Ortua’s action to recover the P400 he paid under protest.

ISSUE

Whether Ortua is entitled to recover the sum of P400 he paid under protest following the cancellation of his sales application, which cancellation was later found to be erroneous.

RULING

Yes. The Supreme Court affirmed the lower court’s judgment ordering the return of the P400. The exaction was based on the erroneous ground that Ortua was disqualified as an alien, a ground subsequently overturned by the Court’s prior ruling establishing his Philippine citizenship. Since the money was paid under protest and the exaction was unlawful, Ortua is entitled to its recovery. The appellants’ theory that the sales application was never approved contradicted the agreed statement of facts, which stipulated its approval, and they could not withdraw from that stipulation without leave of court.

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