G.R. No. 94542 . March 1, 1993.
SPOUSES FRANCISCO JIMENEZ and MARY H. JIMENEZ, petitioners, vs. HON. CATALINO MACARAIG, in his capacity as Executive Secretary, HON. FULGENCIO S. FACTORAN, JR., in his capacity as Secretary of the Department of Environment and Natural Resources and EUFROCINA GUIRNALDA, respondents.

FACTS

On June 23, 1954, petitioner Francisco Jimenez filed a Townsite Sales Application (TSA) over Lot No. 30 in Lourdes Subdivision, Baguio City. The Bureau of Lands awarded the land to him via an Order Award dated April 1, 1957, which was later modified on October 16, 1963, increasing the area from 750 to 1,000 square meters. The Award contained a condition that the applicant shall commence construction of appropriate improvements within six months and complete them within eighteen months from the date of award, with non-compliance resulting in rescission of the sale. Sometime in 1972, private respondent Eufrocina Guirnalda occupied the land, cleared it, introduced leveling and riprapping, and built a residential shack. In 1984, petitioners’ relatives informed Guirnalda of the Award and demanded that she vacate. On December 17, 1984, Guirnalda filed a letter-protest with the Bureau of Lands. An investigation report dated July 23, 1985, recommended cancellation of Jimenez’s TSA for non-compliance with construction requirements for about 28 years and suggested the land be opened for disposition to Guirnalda. On September 22, 1986, the Bureau of Lands issued an Order canceling Jimenez’s TSA for failure to comply with the construction condition, noting Guirnalda’s actual possession and improvements since 1972. Jimenez filed a Motion for Reconsideration, which was granted by an Order dated November 24, 1986, setting aside the cancellation and ordering a new investigation. Guirnalda appealed to the Secretary of the DENR, who, on March 2, 1987, set aside the November 24, 1986 Order and reinstated the cancellation. Jimenez filed a Motion for Reconsideration, alleging denial of due process. The Secretary, on January 26, 1988, ordered a formal investigation/hearing to afford both parties opportunity to present evidence. After a hearing on May 4, 1988, the Secretary, on October 12, 1988, issued an Order denying Jimenez’s Motion for Reconsideration, ruling that his failure to build constituted valid ground for rescission. Jimenez filed a second Motion for Reconsideration on September 14, 1989, which was denied by the Secretary on October 6, 1989, for being filed ten months late, rendering the October 12, 1988 Order final.

ISSUE

Whether the Secretary of the DENR acted with grave abuse of discretion in affirming the cancellation of petitioner Francisco Jimenez’s Townsite Sales Application for failure to comply with the construction condition stipulated in the Award.

RULING

No, the Secretary of the DENR did not act with grave abuse of discretion. The Supreme Court held that the findings of administrative agencies, when supported by substantial evidence, are accorded respect and even finality. The investigation established that Jimenez failed to construct any improvements on the land from 1957 until the protest in 1984, a clear violation of the Award’s condition. The Court found that the Secretary’s orders were based on sufficient evidence and that Jimenez was afforded due process through the formal investigation ordered on January 26, 1988, where he was given the opportunity to present his side. The Court also noted that the second Motion for Reconsideration was filed out of time, making the October 12, 1988 Order final and executory. The petition was dismissed for lack of merit.