Quillian v. Court of Appeals

G.R. No. 55457 · 1989-01-20 · J. PARAS, J.: · Primary: Labor; Secondary: Civil
REITERATION

Facts

The Antecedents: Respondent Silverio Alit owned Lot No. 888-A, Bago Cadastre, which he leased to respondent Constancio Geolingo. The lease contract stipulated that Geolingo should not hire or place tenants on the premises and must return the land free from any tenant upon termination of the lease. Petitioner Filomeno Quillian, along with Bienvenido Clapis, signed a document declaring they would work as paid laborers, not tenants, on the land during Geolingo's lease. After Geolingo's lease expired, Alit leased the property to respondent Primo Esleyer under a contract of sale on installments with lease, which also stipulated the land was free from tenants and that Esleyer would not introduce any. Procedural History: Petitioner Filomeno Quillian filed a complaint against respondents Silverio Alit, Constancio Geolingo, and Primo Esleyer, seeking reinstatement as a tenant on approximately one-third of a hectare of the landholding, alleging forcible ejection on July 10, 1978. The respondents denied Quillian's claim, asserting he was merely a laborer. The trial court ruled in favor of Quillian, ordering Alit and Esleyer to reinstate him. The respondents appealed to the Court of Appeals, which reversed the trial court's decision, remanding the case to the lower court for referral to the Minister of Agrarian Reform pursuant to Presidential Decree No. 316, and for subsequent decision. The Petition: Petitioner Filomeno Quillian seeks review by certiorari of the Court of Appeals' decision. He assigns three errors: (1) the Court of Appeals erred in holding that the claims fall under Section 2 of Presidential Decree No. 316; (2) the Court of Appeals erred in holding that a certification from a District Officer of the Ministry of Agrarian Reform is the required certification under Presidential Decree No. 316; and (3) the Court of Appeals erred in disturbing the trial court's decision despite sufficient supporting evidence. Quillian argues that Presidential Decree No. 316 applies only to ejectment cases filed by landowners, not to a tenant's suit for reinstatement, and that his case was initiated by him, thus not falling under the decree's scope.

Issue(s)

Whether the claims in CAR Case No. 5561 fall under Section 2 of Presidential Decree No. 316. Whether the certification issued by a District Officer of the Ministry of Agrarian Reform is the certification contemplated by Presidential Decree No. 316. Whether the Court of Appeals erred in disturbing the decision of the trial court.

Ruling

The appealed decision of the Court of Appeals is SET ASIDE, and a new one is RENDERED dismissing the complaint filed in the trial court by Quillian. No costs.

Ratio Decidendi

On the issue of whether the claims fall under Section 2 of Presidential Decree No. 316: The Court held that Presidential Decree No. 316, specifically Section 2, mandates referral to the Ministry of Agrarian Reform (MAR) only for "ejectment case or any other case designed to harass or remove a tenant." The present case was filed by petitioner Quillian himself, seeking reinstatement as a tenant, not an ejectment or harassment case initiated by the landowner. Therefore, the mandatory referral requirement under P.D. 316 was not applicable. The core issue was the validity of the document (Exh. "1") which declared Quillian as a paid laborer, not a tenant. The Court agreed with the petitioner that the case was not within the scope of P.D. 316 because it was filed by a tenant-farmer for reinstatement, not by a landowner for ejectment or harassment. The purpose of the referral under P.D. 316 is to allow the MAR to determine if a case is intended to harass tenants, which is not the situation here as the petitioner initiated the action. On the issue of the certification by the District Officer: While the Court found that the case did not require referral under P.D. 316, it parenthetically noted that even if a referral were required, there was a referral to the district officer of the MAR, who is duly authorized to represent the Minister. However, this point became moot given the primary finding that the case did not fall under the purview of Section 2 of P.D. 316. On the issue of disturbing the trial court's decision: The Supreme Court, having the facts before it, proceeded to decide the case on the merits. The Court found that the contract between petitioner Quillian and lessee Geolingo clearly stipulated that Quillian would work as a mere hired laborer and not as a tenant. This stipulation was consistent with the prior agreement between Geolingo and the owner Alit, which prohibited Geolingo from placing any tenant on the land. The Court affirmed that parties to a contract are bound by their commitments in good faith, provided they do not contravene law, morals, or public policy. The stipulation in the contract was deemed valid and binding on the petitioner.

Main Doctrine

Referral to the Ministry of Agrarian Reform under Section 2 of Presidential Decree No. 316 is mandatory only for ejectment cases or cases designed to harass a tenant, not for a case filed by a party seeking reinstatement as a tenant.

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