G.R. No. L-21506 August 14, 1965
FELICISIMA MANUBAY, petitioner-appellant, vs. PEDRO DE GUZMAN, ET AL., respondents-appellees.

FACTS

On February 28, 1961, respondent Pedro de Guzman filed a petition with the Court of Agrarian Relations to convert his tenancy relationship with petitioner Felicisima Manubay from a crop-sharing system to a leasehold system. After pleadings and a hearing, the Court granted the petition and authorized the change. Manubay’s motion for reconsideration was denied, prompting her to appeal to the Supreme Court. The appeal was submitted for decision on January 21, 1964. Subsequently, on July 28, 1965, appellant’s counsel manifested that the litigants had entered into an amicable settlement on May 3, 1965. A copy of the agreement, titled “Malayang Pag-aayos,” was furnished to the Court along with a motion to resolve the case according to its terms.

ISSUE

Whether the amicable settlement (“Malayang Pag-aayos”) entered into by the parties should be approved by the Court.

RULING

The Supreme Court approved the amicable settlement. Finding nothing in the agreement contrary to existing law or sound public policy, the Court rendered judgment in accordance with its terms. The terms of the agreement, as summarized by the Court, were: (1) The landholder, Manubay, cancels and condones the tenant De Guzman’s debt of 15 cavans and 17.5 kilos of palay; (2) The 43 cavans and 34 kilos of palay deposited with the P.L. Villaroman Bonded Warehouse shall be released to the landholder; (3) The tenant, De Guzman, shall return the land in controversy to the landholder, Manubay, who shall be free to hire her own tenant; (4) In consideration, Manubay shall pay De Guzman P600.00; and (5) The land shall be delivered to Manubay upon De Guzman’s receipt of the P600.00.