G.R. No. 187144 September 17, 2014
CARMEN T. GAHOL, substituted by her heirs, RICARDO T. GAHOL, MARIA ESTER GAHOL PEREZ, JOSE MARI T. GAHOL, LUISITO T. GAHOL and ALCREJ CORPORATION, Petitioners, vs. ESPERANZA COBARRUBIAS, Respondent.

FACTS

Carmen T. Gahol (Carmen), petitioners’ predecessor-in-interest, was the registered owner of a titled residential lot in Baguio City. On May 2, 1997, she filed a Townsite Sales Application (TSA) with the DENR for an adjacent 101 sq. meter lot for additional and protection purposes. On October 2, 1997, respondent Esperanza Cobarrubias filed a Protest against Carmen’s TSA, claiming that her mother and heirs had been the actual occupants of the subject lot since 1970, had built improvements, planted trees, used it as an access road, and had a tax declaration for the improvements. Respondent also filed her own TSA over a 215 sq. meter lot that included the subject lot. The DENR-CAR denied the protest and gave due course to Carmen’s TSA, ruling the lot was part of the Baguio Townsite Reservation disposable by public auction and that respondent’s TSA did not meet the minimum area requirements under Administrative Order No. 504 Clearing Committee Resolutions. The DENR proper and the Office of the President affirmed. The Court of Appeals reversed, disqualifying Carmen from applying for the TSA, finding she was a titled lot owner (contrary to an undertaking in the TSA form), applied for an area below the minimum 200 sq. meters required, and made untruthful statements in her TSA regarding existing improvements. Petitioners sought review.

ISSUE

Whether the Court of Appeals erred in reversing the administrative agencies and declaring Carmen Gahol disqualified from applying for a Townsite Sales Application over the subject property.

RULING

The Supreme Court DENIED the petition and AFFIRMED the Court of Appeals. On the procedural issue, the Court found no grave abuse in the CA’s acceptance of the petition despite a mode-of-service question, as no substantial prejudice was shown. On the substantive issues, the Court upheld the CA’s finding of Carmen’s disqualification. The subject lot is within the Baguio Townsite Reservation, governed by Commonwealth Act No. 141, which does not grant preferential rights to actual occupants. However, Carmen’s TSA was correctly rejected by the CA because: (1) She was already a titled lot owner, which contradicted an undertaking in the TSA form; (2) The area she applied for (101 sq. meters) was below the minimum 200 sq. meters required under DENR Administrative Order No. 504 Clearing Committee Resolution Nos. 93-1 and 93-2 for lots within the reservation; and (3) She made an untruthful statement in her TSA by claiming the lot contained no improvements or indication of occupation, when respondent’s evidence showed existing structures. The administrative agencies erred in applying the area restrictions only against respondent and not against Carmen. The Court deferred to the CA’s factual findings, which were supported by the record.