CA orders DAR, Landbank: Pay Hacienda Luisita P28.4 billion

MANILA, Philippines — The Court of Appeals (CA) has ordered the Department of Agrarian Reform (DAR) and Land Bank of the Philippines to pay the owners of Hacienda Luisita P28.4 billion as just compensation for the 4,500 hectares of land in Tarlac distributed to farmers under the Comprehensive Agrarian Reform Program (CARP).
In a 35-page ruling promulgated on April 25 but released only yesterday, the CA’s Special 12th Division granted the petition for review filed by the Cojuangco family-owned estate that challenged the P304-million just compensation, on top of P167.4 million in interests, fixed by the Landbank and adopted by DAR.
The petition covered parcels of sugarcane plantation in Tarlac City, La Paz and Concepcion that were ordered transferred to DAR under CARP.
Under CARP, the government promised to redistribute private and public agricultural lands to the tillers.
By ruling in favor of HLI, the appellate court said the Tarlac City Regional Trial Court – acting as a Special Agrarian Court – erred in affirming in a 2023 ruling the just compensation figure set by Landbank and DAR, as it denied the claim of HLI for additional compensation and interests.
It said it incorrectly computed the compensation for HLI, as the amount to be paid in exchange for the property taken should be “real, substantial, full, ample, just and fair, with due consideration to the factors enumerated under Section 17 of the Comprehensive Agrarian Reform Law.”
“Bearing in mind that ultimately, just compensation is about a fair and full equivalent for the loss sustained by the landowner, reliable and actual data should have been considered, with consideration to the pertinent DAR regulations applicable in the instant case,” the CA said.
The appellate court also noted that while DAR and Landbank relied on sugar production industry data from the Sugar Regulatory Commission, HLI contended that the valuations should be based on actual production values.
The estate, it noted, made the necessary submissions of documents to the Landbank such as Audited Financial Statements and Accounting Records.
“In this regard, an examination of the circumstances of the case at bench showed that the RTC-SAC erred when it did not take into account the actual production value in the determination on how much is the correct just compensation due to petitioner HLI and when it simply affirmed the LBP and DAR’s use of industry standard values in determining the land valuation of the CARP acquired properties,” the court explained.
It said the P28.4 billion for just compensation was arrived at using a prescribed formula that provides for a “more equitable and fair computation of just compensation as it factors in various considerations affecting the value, not only of the property at the time of taking, but also of the amount which could have accrued to the aggrieved landowner’s benefit.”
The court said that aside from the requirement of just compensation for expropriated property, the payment must also be made without delay. — Bella Cariaso
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