1.​ Chavez vs. NHA
G.R. No. 164527
Aug. 15, 2007
Topic: Patrimonial Property
FACTS
Then-President Cory Aquino issued MO 161 approving the implementation of the
Comprehensive and Integrated Metropolitan Manila Waste Management Plan. During this
time, Smokey Mountain in Tondo, Manila, was home to many Filipinos living in subhuman
conditions. Under MO 161, the NHA conducted feasibility studies to transform the dumpsite
into a low-cost housing project, leading to the creation of the Smokey Mountain Development
and Reclamation Project (SMDRP).
NHA and R-II Builders, Inc. (RBI) entered into a JVA to develop the Smokey Mountain
dumpsite and reclamation area into a low-cost medium-rise housing complex and
industrial/commercial site, with RBI financing the project. The project will cover 79 hectares of
reclaimed land. As part of the agreement, NHA will transfer a portion of the reclaimed land
to RBI. The reclamation of the area was made, and subsequently, Special Patents were
issued conveying the reclaimed land to NHA.
Former Solicitor General Chavez filed this Petition for Prohibition and Mandamus seeking to
declare null and void the JVA and the SMDRP, and all other agreements in relation thereto, for
being unconstitutional and invalid.
ISSUE
WON RBI cannot acquire reclaimed lands without a declaration that the lands are no longer
needed for public use.
RULING
YES. Presidential Proclamations Nos. 392 (placed the lands under the administration and
disposition of the NHA) and 4653 (increased the reclamation area from 40 hectares to 79 hectares),
along with the special patents, classified the reclaimed lands as alienable and disposable,
making them open to disposition or concession, as they would be used for units for Smokey
Mountain beneficiaries.
Furthermore, when the titles to such reclaimed lands were transferred to the NHA, said
alienable and disposable lands of the public domain were no longer intended for public use or
service and shall become part of the patrimonial properties of the State under Article
422 of the Civil Code.
Since the reclaimed land will be conveyed to the contractor pursuant to the BOT Law, it
implies that the land is no longer intended for public use or public service, and therefore, is
considered patrimonial property of the State.