Milestone Farms, Inc. vs. Office of the President

SECOND DIVISION [G.R. No. 182332. February 23, 2011.] MILESTONE FARMS, INC. vs. OFFICE OF THE PRESIDENT

Theme: Jurisdiction of DAR Secretary, Exemptions from Coverage of PD !!"# 

 $A  $ACTS: Petiti Petitioe oerr !i"e#t !i"e#toe oe Far$#, Far$#, I%. I%. &'etit &'etitio ioer( er( )a# )a# i%or' i%or'ora orate* te* )it+ )it+ t+e Se%ur Se%urit itie# ie# a* E%+a E%+a-e -e Co$$i##io o auary 8, 1/0. $o- it# 'ertiet #e%o*ary 'ur'o#e# are &1( to e-a-e i t+e rai#i- o %att"e,  'i-#, a* ot+er "i4e#to%56 to a%7uire "a*# by 'ur%+a#e or "ea#e, )+i%+ $ay be ee*e* or t+i# 'ur'o#e6 a* to #e"" a* ot+er)i#e *i#'o#e o #ai* %att"e, 'i-#, a* ot+er "i4e#to%5 a* t+eir 'ro*u%e )+e a*4i#ab"e a* beei%ia" to t+e %or'oratio6 &2( to bree*, rai#e, a* #e"" 'ou"try6 to 'ur%+a#e or a%7uire a* #e"", or ot+er)i#e *i#'o#e o t+e #u''"ie#, #to%5#, e7ui'$et, a%%e##orie#, a''urtea%e#, 'ro*u%t#, a* by'ro*u%t# o #ai* bu#ie##6 a* &3( to i$'ort %att"e,  'i-#, a* ot+er "i4e#to%5, "i4e#to%5, a* ai$a" ai$a" oo* e%e##ary or or t+e rai#i- o #ai* #ai* %att"e, 'i-#, 'i-#, a* ot+er "i4e#to%5 "i4e#to%5 a# $ay be aut+ori9e* by "a). O ue 10, 1/88, a e) a-raria reor$ "a), Re'ub"i% %t &R..( No. :;, ot+er)i#e 5o) a# t+e Co$'re+e#i4e -raria Reor$ 22+e%tare 'ro'erty, 'ro'erty, "o%ate* i Piu-ay, Aara#, Aara#, Ri9a", ro$ t+e %o4era-e o t+e CR22+e%tar e%taree 'ro'erty 'ro'erty ro$ t+e %o4era-e %o4era-e o CRP CRP. *o'ti*o'ti- t+e 22+e%tare 'ro'erty ro$ CRP. I t+e $eati$e, R.. No. :; )a# a$e*e* by  RA )o #//+, )+i%+ #//+, )+i%+ )a# a''ro4e* o February 20, 1//:. Pri4ate a-ri%u"tura" "a*# *e4ote* to "i4e#to%5, 'ou"try, 'ou"try, a* #)ie rai#i- )ere e%"u*e* ro$ t+e %o4era-e o  t+e CR>8 +ea*# o %att"e a* $ore t+a :,000 +ea*# o #)ie.

The DAR Secretary0s Ru1ing  O auary auary 21, 1//;, t+e DR Se%retary Se%retary Ere#to Ere#to D. Gari"ao &Se%retary &Se%retary Gari"ao( Gari"ao( i##ue* i##ue* a Or*er  Or*er  ee$'ti- ro$ CRP o"y 2>0./;; +e%tare# o t+e 31.0>22 +e%tare# 're4iou#"y ee$'te* by Dire%tor Da"u-*u-, a* *e%"ari*e%"ari- #"2!3! hectares of the property to %e covered %y CARP Se%retary Gari"ao o'ie* t+at, or 'ri4ate

a-ri%u"tura" "a*# to be e%"u*e* ro$ CRP, t+ey $u#t a"rea*y be *e4ote* to "i4e#to%5, 'ou"try, a* #)ie rai#ia# o ue 1:, 1/88, )+e t+e CR< too5 ee%t. =e ou* t+at t+e Certii%ate# o O)er#+i' o a* *e%"are* t+e etire 31.0>22+e%tare 'ro'erty ee$'t ro$ t+e %o4era-e o CRP. =o)e4er, o #e'arate $otio# or re%o#i*eratio o t+e aore#ai* *e%i#io "e* by ar$er-rou'# Sa$a+a- a5Pa)i# - , t+e appe11ate court had to ac4no51edge that the property su%6ect of the controversy 5ou1d no5 %e 1imited to the remaining +!7## hectares. I t+e #a$e to5e, t+e E#'ia# -rou' 'raye* t+at t+i# re$aii- area  be %o4ere* by t+e CRP. O O%tober >, 200, t+e C a$e*e* it# ear"ier De%i#io. It +e"* t+at it# 'ri" 2/, 200: De%i#io )a# t+eoreti%a""y ot ia" be%au#e DR .O. No. / re7uire* t+e !RO to $a5e a %otiui- re4ie) a* 4erii%atio o  t+e #ubHe%t 'ro'erty. +i"e t+e C )a# %o-i9at o our ru"i- i De+atment o) A(aian Re)om vs. S%tton wheein we 'elae' DAR A.O. No. 6 as %nonstit%tional, it #ti"" re#o"4e* to "it t+e ee$'tio o t+e #ubHe%t  'ro'erty ro$ t+e CRP, ot o t+e ba#i# o DR .O. No. /, but o t+e #tre-t+ o e4i*e%e #u%+ a# t+e !RO Re'ort a* Certii%atio, a* t+e atuaya i##ue* by t+e Puo- Aara-ay, "re*o Ruba o Piu-ay, Aara#, Ri9a", #+o)i- t+at the s%!7et +o+et- was no lon(e o+eate' as a livesto& )am.  !oreo4er, t+e C +e"* t+at t+e

"ea#e a-ree$et#, )+i%+ 'etitioer #ub$itte* to 'ro4e t+at it )a# %o$'e""e* to "ea#e a ra%+ a# te$'orary #+e"ter or  it# %att"e, o"y reior%e* t+e DRB# i*i- t+at thee was in'ee' no existin( livesto& )am on the s%!7et +o+et-. 'erturbe*, 'etitioer i"e* a !otio or Re%o#i*eratio. Fia""y, +etitione4s motion )o eonsi'eation was 'enie' !- the CA i it# Re#o"utio *ate* !ar%+ 2;, 2008. @+e C *i#%ar*e* 'etitioerB# re"ia%e o Sutto. It ratio%iate* t+at t+e !RO Re'ort# a* t+e DRB# !aie#tatio %ou"* ot be *i#re-ar*e* #i$'"y be%au#e DR .O. No. / )a# *e%"are* u%o#titutioa". @+e Sutto ru"i- )a# 're$i#e* o t+e a%t t+at t+e Sutto 'ro'erty %otiue* to o'erate a# a "i4e#to%5 ar$. @+e C a"#o rea#oe* t+at, i Sutto, t+i# Court *i* ot re$o4e ro$ t+e DR t+e 'o)er to i$'"e$et t+e CRP, 'ur#uat to t+e "atterB# aut+ority to o4er#ee t+e i$'"e$etatio o a-raria reor$ "a)#.

 8SS9ES: 1.

+et+er t+e 're#et %a#e $aie#t t+at o SuttoJ# ru"i- )+ere "a*# *e4ote* to "i4e#to%5 ar$i- a# o  ue 1:, 1/88 are %"a##iie* a# i*u#tria" "a*#, +e%e, out#i*e t+e a$bit o t+e CRPK 2. +et+er t+e DR Se%retary +a* o $ore "e-a" ba#i# to %o*u%t a %otiui- re4ie) a* 4erii%atio  'ro%ee*i-# o4er "i4e#to%5 ar$# #i%e DR .O. No. / )a# *e%"are* u%o#titutioa"K

 E&D: 2.

No, as +ointe' o%t !- the CA, the instant ase 'oes not est on )ats +aallel to those o) S%tton !ea%se, in S%tton, the s%!7et +o+et- emaine' a livesto& )am. 8e even hi(hli(hte' theein the )at that 9thee has !een no han(e o) !%siness inteest in the ase o) es+on'ents.: In the +esent ase, +etitione has onvete' the 523.$"##1hetae +o+et- )om a(i%lt%al to esi'ential an' (ol)  o%ses %se.

e i* t+at 'etitioerB# ar-u$et# ai" to 'er#ua*e. It# i4o%atio o Sutto i# ua4ai"i-. I Sutto, )e +e"* I t+e %a#e at bar, )e i* t+at t+e i$'u-e* .O. i# i4a"i* a# it %otra4ee# t+e Co#titutio. @+e .O. #ou-+t to re-u"ate "i4e#to%5 ar$# by i%"u*i- t+e$ i t+e %o4era-e o  a-raria reor$ a* 're#%ribi- a $ai$u$ retetio "i$it or t+eir o)er#+i'. =o)e4er, t+e *e"iberatio# o t+e 1/8; Co#titutioa" Co$$i##io #+o) %"ear itet to e%"u*e, iter a"ia, a"" "a*# e%"u#i4e"y *e4ote* to "i4e#to%5, #)ie a* 'ou"tryrai#i-. The Court c1arified in the  &u' $arms case that 1ivestoc4, s5ine and pou1try;raising are industria1 activities and do not   fa11 5ithin the definition of