G.R. No. 165494 March 20, 2009
ANGELITA, REYNALDO, NARCISO, CECILIA, FEDERIO and LEONIDA all surnamed LEVARDO and NORMA PONTANOS VDA. DE LEVARDO, for herself and as proposed Guardian Ad Litem of her minor daughter ELENAP. LEVARDO, Petitioners, vs. TOMAS B. YATCO and GONZALO PUYAT and SONS, INC., represented By JOSE G. PUYAT, JR., President, as Principal defendants and DR. RUBEN B. YATCO, as necessary defendant. Respondents. (and a consolidated case: HERNANDO LEVARDO, Petitioner, vs. LEONCIO YATCO and GONZALO PUYAT and SONS, INC., represented by JOSE G. PUYAT, JR., and GAUDENCIO BAUTISTA, Respondents.)

FACTS

Two consolidated cases involve parcels of land in Biñan, Laguna. In DARAB Case No. 3361, Asuncion Belizario donated a 4.3488-hectare land to respondent Tomas Yatco. The land was tenanted by Aguido Levardo. In April 1986, Aguido and his children (petitioners) executed a notarized “Pinanumpaang Salaysay” waiving all tenancy rights and returning the land to the owner, stating their desire to change livelihood, and acknowledging receipt of a disturbance compensation of ₱2,000,000. Aguido died in October 1986. Tomas sold the land to respondent Gonzalo Puyat and Sons, Inc. in April 1990. In May 1991, petitioners filed a complaint to annul the Deed of Donation, Deed of Sale, and the waiver, claiming the land was covered by Operation Land Transfer under P.D. No. 27 and that they were deemed owners, citing an alleged Certificate of Land Transfer (CLT) that was never issued.
In DARAB Case No. 3362, respondent Leoncio Yatco owned a 4.2406-hectare land tenanted by Francisco Levardo and his son Hernando Levardo. In January 1990, Hernando, with his father Francisco signing, executed a similar notarized “Pinanumpaang Salaysay” waiving tenancy rights and acknowledging receipt of ₱2,417,142 as disturbance compensation. Leoncio later sold the land to Puyat Corporation. In July 1991, Hernando and Francisco filed a similar complaint for annulment, also claiming OLT coverage and an alleged CLT.
The Provincial Agrarian Reform Adjudicator initially declared the waivers and deeds null and void and ordered the issuance of Emancipation Patents. Upon reconsideration, the PARO reversed itself, declared the waivers valid, upheld the deeds, and declared the lands outside OLT coverage and untenanted. The DARAB initially reversed the PARO but later granted respondents’ motion for reconsideration, affirming the PARO’s order. The Court of Appeals denied the petitioners’ appeal.

ISSUE

The primary issue is whether the subject lands are covered by Presidential Decree No. 27, which would deem the tenant-farmers as owners, thereby nullifying the waivers of tenancy rights and the subsequent conveyances.

RULING

The Supreme Court denied the petition and affirmed the Court of Appeals decision. The Court ruled that the lands in dispute are not covered by P.D. No. 27. The petitioners failed to prove that the lands were irrigated rice lands or that Certificates of Land Transfer were issued to them. The alleged masterlist entries were insufficient to establish coverage. The waivers of tenancy rights executed by Aguido Levardo (with his children as signatories) and by Hernando Levardo (with his father as signatory) were valid, notarized public documents, and the petitioners received substantial disturbance compensation. The protective mantle of social justice does not disregard landowners’ rights. Consequently, the conveyances to respondent Puyat Corporation were valid. The other issues raised by petitioners were deemed unnecessary to discuss.