15) Chavez Vs Pea-Amari

15.) Chavez vs PEA-AMARI|G.R. No. 133250|July 9, 2002 investigation in Senate Committee Report No.
560, among the

conclusions of their report are: (1) the reclaimed lands PEA seeks to
PETITIONER: Francisco Chavez transfer to AMARI under the JVA are lands of the public domain which
RESPONDENT: Public Estates Authority and AMARI Coastal Bay the government has not classified as alienable lands and therefore PEA
Development Corporation cannot alienate these lands; (2) the certificates of title covering the
Freedom Islands are thus void, and (3) the JVA itself is illegal.
FACTS:
The government signed a contract with the Construction and Then President Fidel V. Ramos issued Presidential Administrative Order
Development Corporation of the Philippines (CDCP) to reclaim certain No. 365 creating a Legal Task Force to conduct a study on the legality
foreshore and offshore areas of Manila Bay. of the JVA in view of Senate Committee Report No. 560. The members
of the Legal Task Force were the Secretary of Justice, the Chief
Pres. Marcos issued PD 1084 creating PEA tasking it to reclaim land, Presidential Legal Counsel, and the Government Corporate Counsel.
including foreshore and submerged areas, and to develop, improve, The Legal Task Force upheld the legality of the JVA
acquire, x x x lease and sell any and all kinds of lands. On the same day,
Pres. Marcos also issued PD 1085 transferring to PEA the lands Then President Fidel V. Ramos issued Presidential Administrative Order
reclaimed in the foreshore and offshore of the Manila Bay under the No. 365 creating a Legal Task Force to conduct a study on the legality
Manila-Cavite Coastal Road and Reclamation Project (MCCRRP). CDCP of the JVA in view of Senate Committee Report No. 560. The members
and PEA entered into an agreement that all future projects under the of the Legal Task Force were the Secretary of Justice, the Chief
MCRRP would be funded and owned by PEA. Presidential Legal Counsel, and the Government Corporate Counsel.
The Legal Task Force upheld the legality of the JVA
Pres. Aquino issued Speacial Patent No. 3517, granting and transferring
to PEA the reclaimed lands under MCCRRP with a total area of ISSUE:
1,915,894 square meters. The Register of Deeds issued TCT 7309, W/N the reclaimed lands are deemed as Alienable and Disposable
7311, and 7312, in the name of PEA, covering the three reclaimed lands of the Public domain.
islands known as the Freedom Islands with a total land area of 157.841
hectares. HELD: YES, but there should be a proclamation first before it can be
alienated.
PEA entered into a Joint Venture Agreement (JVA) with AMARI, a The ownership of lands reclaimed from foreshore and submerged
private corporation, to develop the Freedom Islands. The JVA required areas is rooted in the Regalian doctrine, which holds that the State
an additional 250 hectares to be transferred to AMARI. owns all lands and waters of the public domain.
Senate President Maceda denounced the JVA as the grandmother of The 1987 Constitution recognizes the Regalian doctrine. It declares
all scams. As a result, the Senate Committee on Government that all natural resources are owned by the State and except for
Corporations and Public Enterprises, and the Committee on alienable agricultural lands of the public domain, natural resources
Accountability of Public Officers and Investigations, conducted a joint cannot be alienated.
investigation. The Senate Committees reported the results of their
Under the Public Land Act (CA 141, as amended), reclaimed lands are contrary to Section 3, Article XII of the 1987 Constitution which
classified as alienable and disposable lands of the public domain prohibits private corporations from acquiring any kind of alienable land
Section 3 of the Constitution: Alienable lands of the public domain shall of the public domain. Since the Amended JVA also seeks to transfer to
be limited to agricultural lands. Private corporations or associations AMARI ownership of 290.156 hectares of still submerged areas of
may not hold such alienable lands of the public domain except by lease. Manila Bay, such transfer is void for being contrary to Section 2, Article
XII of the 1987 Constitution which prohibits the alienation of natural
Only 157.84 hectares were reclaimed of the 750 lands comprising the resources other than agricultural lands of the public domain.
Freedom Islands. The 157.84 hectares is now covered by certificates of
title in the name of PEA and deemed as alienable lands of the public PEA may reclaim these submerged areas. Thereafter, the government
domain. PEA may lease these lands to private corporations but may not can classify the reclaimed lands as alienable or disposable, and further
sell or transfer ownership of these lands to private corporations. PEA declare them no longer needed for public service. Still, the transfer of
may only sell these lands to Philippine citizens, subject to the such reclaimed alienable lands of the public domain to AMARI will be
ownership limitations in the 1987 Constitution and existing laws. void in view of Section 3, Article XII of the 1987Constitution which
prohibits private corporations from acquiring any kind of alienable land
In contrast, 592.15 hectares left are still submerged areas forming part of the public domain.
of Manila Bay and the remain inalienable natural resources of the
public domain until classified as alienable or disposable lands open to
disposition and declared no longer needed for public service. The
government can make such classification and declaration only after
PEA has reclaimed these submerged areas. Only then can these lands
qualify as agricultural lands of the public domain, which are the only
natural resources the government can alienate.
[DOCTRINE] As such, foreshore and submerged areas shall not be

alienable unless they are classified as agricultural lands of the public
domain. The mere reclamation of these areas by the PEA doesn’t
convert these inalienable natural resources of the State into alienable
and disposable lands of the public domain. There must be a law or a
presidential proclamation officially classifying these reclaimed lands as
alienable and disposable if the law has reserved them for some public
or quasi-public use.
In their present state, the 592.15 hectares of submerged areas are

inalienable and outside the commerce of man. Since the Amended JVA
seeks to transfer to AMARI, a private corporation, ownership of 77.34
hectares of the Freedom Islands, such transfer is void for being

15) Chavez Vs Pea-Amari

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15.) Chavez vs PEA-AMARI|G.R. No. 133250|July 9, 2002 investigation in Senate Committee Report No.

560, among the

[DOCTRINE] As such, foreshore and submerged areas shall not be

In their present state, the 592.15 hectares of submerged areas are

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