CASE DIGEST: Land Bank v. Ferrer

G.R. No. 172230 : February 2, 2011

LAND BANK OF THE PHILIPPINES, Petitioner, v. MAGIN FERRER, ANTONIO V. FERRER, and RAMON V. FERRER, represented by their Attorney-in-fact, ATTY. RAFAEL VILLAROSA, Respondents.


G.R. No. 179421 : February 2, 2011


and RAMON V. FERRER, Respondents.



the Ferrers alleged that they were the absolute owners pro-indiviso of a parcel of agricultural land with an area of 11.7297 hectares located in Bagong Bayan, San Jose, Nueva Ecija.

The Ferrers further alleged that they found out that an Emancipation Patent covering 3.5773 hectares of the subject agricultural land was secretly issued in the name of Alfredo Carbonel, one of its occupants, without payment of just compensation.

The LBP then fixed the just compensation at a very low price of P132,685.67 or approximately P12,050.00 per hectare in violation of the guidelines in R.A. No. 6657, otherwise known as “The Comprehensive Agrarian Reform Law.” They asserted that the just compensation of the subject agricultural land should at least be computed at P250,000.00 per hectare, or the total sum ofP2,930,000.00 for the entire 11.7297 hectares considering that it was irrigated and strategically located.

On the other hand, the LBP and the DAR were of the position that the subject agricultural property had been placed under the coverage of the Operation Land Transfer (OLT) Program and, therefore, the provisions of P.D. No. 27 (Emancipation Decree of Tenants) and/or Executive Order (E.O.) No. 228 (Declaring Full Land Ownership to Qualified Farmer-Beneficiaries covered by PD 27; Determining the Value of Remaining Unvalued Rice and Corn Lands subject of PD 27; and Providing for the Manner of Payment By the Farmer Beneficiary and Mode of Compensation to the Landowner) should apply.

Magin V. Ferrer, Antonio V. Ferrer and Ramon V. Ferrer (the Ferrers), represented by their attorney-in-fact, Rafael Villarosa, filed their Petition for Determination and Payment of Just Compensation against the Land Bank of the Philippines (LBP) before the RTC

The RTC and CA ruled that R.A. No. 6657, and not P.D. No. 27, should govern in the determination of just compensation in this case. They reasoned out that although the subject property was tenanted and devoted to rice production in 1972 when P.D. No. 27 was issued, the just compensation cannot be based on the value of the property in 1972 because there was then no taking of the subject land as there was no payment yet to the private respondents.

The CA further stated that R.A. No. 6657 was the law of primary jurisdiction while P.D. No. 27 and other agrarian laws not inconsistent with R.A. No. 6657 shall only apply suppletorily.

ISSUE: Whether or not the Court of Appeals erred in ruling that RA 6657, rather than P.D. No. 27/E.O. No. 228, is the law that should apply in the determination of just compensation for the subject agricultural land.


The petition lacks merit.

CIVIL LAW: Agrarian reform

The CA was, therefore, correct in ruling that the agrarian reform process in this particular case was still incomplete because the just compensation due to the Ferrers had yet to be settled. Since R.A. No. 6657 was already in effectivity before the completion of the process, the just compensation should be determined and the process concluded under this law.

Petition is DENIED.

The decision of CA is affirmed.