GR L 9782; (April, 1957) (Digest)
G.R. No. L-9782; April 26, 1957
HILARION CORTEZ, plaintiff-appellant, vs. JUAN AVILA, defendant-appellee.
FACTS
Plaintiff Hilarion Cortez alleges continuous, public, and adverse occupation of a 16-hectare parcel of land in Pantabangan, Nueva Ecija since 1935. He applied for a homestead patent in November 1946, which was approved by the Director of Lands on June 25, 1947. After complying with all conditions and filing his final proof in May 1952, the issuance of a patent in his favor was recommended by land officials. However, the patent was not issued. Defendant Juan Avila, knowing of Cortez’s possession and application, filed a free patent application for the same lot. Through threat, intimidation, and force, Avila occupied the lot around June 1953. On October 15, 1954, Avila secured a free patent and Original Certificate of Title No. P-1318 by allegedly making false representations about his possession. Cortez filed a complaint seeking cancellation of Avila’s patent and title, restoration of possession, damages, and attorney’s fees. Avila moved to dismiss, alleging Cortez lacked legal capacity to sue because the land was part of the public domain. The lower court granted the motion and dismissed the complaint.
ISSUE
Whether the lower court correctly dismissed the complaint.
RULING
Yes, the order of dismissal is affirmed. While Cortez has the legal capacity to sue, his complaint fails to state a cause of action due to two fatal defects. First, an indispensable party, the State, is lacking. The complaint is predicated on Cortez being the equitable owner of what was originally public land, implying the State’s legal title and equitable interest. The issue cannot be determined without affecting the State’s interest, which it cannot defend as it is not a party. Second, Cortez failed to exhaust administrative remedies. He seeks, in effect, a review of the Director of Lands’ decision to issue a patent to Avila. However, he did not ask the Director of Lands to reconsider nor appeal to the Secretary of Agriculture and Natural Resources, as required by Commonwealth Act No. 141 . It is well-settled that all administrative remedies must be exhausted before resorting to courts, especially in public land disputes where administrative findings of fact are conclusive by statute. Having failed to exhaust his administrative remedy, Cortez cannot seek relief in court.