G.R. No. L-11486; January 30, 1959
JESUS ALVAREZ, petitioner-appellant, vs. THE DIRECTOR OF LANDS, THE SECRETARY OF AGRICULTURE AND NATURAL RESOURCES AND AVELINO P. GARCIA, respondents-appellees.

FACTS

In 1931, Isarog Lodge No. 33 of Free and Accepted Masons, a subordinate lodge of the Grand Lodge of Free and Accepted Masons of the Philippines, Inc., applied to lease a parcel of public land in Naga City. Pending approval, the Lodge constructed a building on the land in 1933, which was destroyed during World War II. In June 1945, respondent Avelino P. Garcia built a house on the same land without the Lodge’s consent. The Lodge, through its member Paulo Elizan, protested Garcia’s occupation and sought to reconstitute its lease application. Garcia opposed the application, arguing that the Lodge, as an unincorporated association, lacked juridical personality to lease public land. The Director of Lands initially overruled Garcia’s opposition on December 8, 1945, ordering him to remove his building. However, on appeal, the Secretary of Agriculture and Natural Resources, relying on an opinion from the Secretary of Justice dated August 14, 1946, reversed the Director’s decision on August 28, 1946, denying the Lodge’s application on the ground that it had no juridical personality. The Lodge’s motion for reconsideration was denied on January 23, 1948. Petitioner Jesus Alvarez, suing on his own behalf and on behalf of all members of Isarog Lodge No. 33, filed a petition in the Court of First Instance of Camarines Sur to set aside the Secretary’s decisions, declare the Lodge’s lease application valid, and order Garcia to vacate the land, remove improvements, pay damages, and deliver possession. Respondents moved to dismiss the amended complaint, primarily on the ground of lack of legal capacity to sue. The trial court dismissed the petition, and the Court of Appeals certified the case to the Supreme Court as it involved only questions of law.

ISSUE

Whether the petitioner, Jesus Alvarez, has the legal capacity to sue in his own behalf and on behalf of all members of Isarog Lodge No. 33 for the lease of public land, given that the Lodge is an unincorporated association without distinct juridical personality.

RULING

The Supreme Court affirmed the trial court’s order of dismissal. The Court held that every action must be prosecuted in the name of the real party in interest, defined as the party who would be benefited or injured by the judgment or entitled to the avails of the suit. The real party in interest in this case was the Grand Lodge of Free and Accepted Masons of the Philippines, Inc., a duly registered corporation, of which Isarog Lodge No. 33 is merely a branch or subordinate lodge without separate juridical personality. Under Section 33 of Commonwealth Act No. 141 (Public Land Act), corporations or associations applying to lease public lands must be organized under Philippine laws, and Section 90(a) requires them to attach certified copies of their articles of incorporation. Since Isarog Lodge No. 33 is an unincorporated association lacking its own juridical personality, it cannot itself lease public lands. Consequently, a member of the Lodge, such as petitioner Alvarez, cannot maintain a class suit on behalf of himself and other members; the proper party to sue is the Grand Lodge. The petition was therefore dismissed for lack of legal capacity to sue, without costs.