G.R. No. 92013. July 25, 1990

SALVADOR H. LAUREL, PETITIONER, VS. RAMON GARCIA, AS HEAD OF THE ASSET PRIVATIZATION TRUST, RAUL MANGLAPUS, AS SECRETARY OF FOREIGN AFFAIRS, AND CATALINO MACARAIG, AS EXECUTIVE …

Decisions / Signed Resolutions July 25, 1990 EN BANC GUTIERREZ, JR., J.:
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GUTIERREZ, JR., J.:


These are two petitions for prohibition seeking to enjoin
respondents, their representatives and agents from proceeding with the bidding
for the sale of the 3,179 square meters of land at 306 Roppongi,
5-Chome Minato-ku, Tokyo,
Japan scheduled on February 21, 1990.  We granted the prayer for a temporary
restraining order effective February
20, 1990.  One of the
petitioners (in G. R. No. 92047) likewise prays for a writ of mandamus
to compel the respondents to fully disclose to the public the basis of their
decision to push through with the sale of the Roppongi
property inspite of strong public opposition and to
explain the proceedings which effectively prevent the participation of Filipino
citizens and entities in the bidding process.

The oral arguments in G. R. No. 92013, Laurel v. Garcia,
et al. were heard by the Court on March 13, 1990. 
After G. R. No. 92047, Ojeda v. Secretary
Macaraig, et al. was filed, the respondents were required to file a comment by
the Court’s resolution dated February
22, 1990
.  The two petitions were consolidated on March
27, 1990
when the
memoranda of the parties in the
Laurel case were deliberated upon.

The Court could not act on these cases immediately because the
respondents filed a motion for an extension of thirty (30) days to file comment
in G. R. No. 92047, followed by a second motion for an extension of another
thirty (30) days which we granted on May 8, 1990, a third motion for extension
of time granted on May 24, 1990 and a fourth motion for extension of time which
we granted on June 5, 1990 but calling the attention of the respondents to the length of time the
petitions have been pending.  After the
comment was filed, the petitioner in G. R. No. 92047 asked for thirty (30) days
to file a reply.  We noted his motion and
resolved to decide the two (2) cases.

I

The subject property in
this case is one of the four (4) properties in
Japan acquired by the Philippine government under
the Reparations Agreement entered into with
Japan on May 9, 1956, the other lots being:

(1)  The Nampeidai Property at 11-24 Nampeidai?machi,
Shibuya-ku, Tokyo which has an area of approximately
2,489.96 square meters, and is at present the site of the Philippine Embassy
Chancery;

(2)  The Kobe Commercial
Property at 63 Naniwa-cho, Kobe, with an an area of around 764.72 square meters and categorized as a
commercial lot now being used as a warehouse and parking lot for the consulate
staff; and

(3)  The Kobe Residential
Property at 1-980-2 Obanoyama-cho, Shinohara, Nada-ku, Kobe, a
residential lot which is now vacant.

The properties and the capital goods and services procured from
the Japanese government for national development projects are part of the
indemnification to the Filipino people for their losses in life and property
and their suffering during World War II.

The Reparations Agreement provides that reparations valued at
$550 million would be payable in twenty (20) years in accordance with annual schedules of procurements to be fixed
by the Philippine and Japanese
governments (Article 2, Reparations
Agreement).  Rep. Act No. 1789, the
Reparations Law, prescribes the national policy on procurement and utilization
of reparations and development loans. 
The procurements are divided into those for use by the government
sector and those for private parties in projects as the
then National Economic Council shall determine. 
Those intended for the private sector shall be made available by sale to
Filipino citizens or to one hundred (100%) percent Filipino-owned entities in
national development projects.

The Roppongi
property was acquired from the
Japanese government under the Second Year
Schedule and listed under the heading “Government Sector”, through Reparations Contract No. 300 dated June 27,
1958
.  The Roppongi
property consists of the land and building “for the Chancery of the Philippine
Embassy” (Annex M-D to Memorandum for Petitioner, p. 503).  As intended, it became the site of the
Philippine Embassy until the latter was transferred to Nampeidai
on
July 22, 1976
when the Roppongi building needed major repairs.  Due to the failure of our government to
provide necessary funds, the Roppongi property has
remained undeveloped since that time.

A proposal was presented
to President Corazon C. Aquino by former Philippine
Ambassador to Japan, Carlos J. Valdez, to make the property the subject of a
lease
agreement with a Japanese firm – Kajima Corporation – which shall
construct two (2) buildings in Roppongi and one (1)
building in Nampeidai and renovate the present
Philippine Chancery in Nampeidai.  The consideration of the construction would
be the lease to the foreign corporation of one (1) of the buildings to be
constructed in Roppongi and the two (2) buildings in Nampeidai.  The other
building in Roppongi shall then be used as the
Philippine Embassy Chancery.  At the end
of the lease period, all the three leased buildings shall be occupied and used
by the Philippine government.  No change
of ownership or title shall occur.  (See
Annex “B” to Reply to Comment) The Philippine government retains the title all
throughout the lease period and thereafter. 
However, the government has not acted favorably on this proposal which
is pending approval and ratification between the parties.  Instead, on August 11, 1986, President Aquino created a committee to study the
disposition/utilization of Philippine government properties in Tokyo and Kobe,
Japan through Administrative Order No. 3, followed by Administrative Orders
Numbered 3-A, B, C and D.

On July 25, 1987,
the President issued Executive Order No. 296 entitling non-Filipino citizens or
entities to avail of reparations’ capital goods and services in the event of
sale, lease or disposition.  The four
properties in Japan
including the Roppongi were specifically mentioned in
the first “Whereas” clause.

Amidst opposition by various sectors, the Executive branch of the
government has been pushing, with great vigor, its decision to sell the
reparations properties starting with the Roppongi
lot.  The property has twice been set for
bidding at a minimum floor price of $225 million.  The first bidding was a failure since only
one bidder qualified.  The second one,
after postponements, has not yet materialized. 
The last scheduled bidding on February
21, 1990 was restrained by this Court.  Later, the rules on bidding were changed such
that the $225 million floor price became merely a suggested floor price.

The Court finds that each
of the herein petitions raises distinct issues. 
The petitioner in G. R. No. 92013 objects to the alienation of the Roppongi property to anyone while the petitioner in G. R.
No.
92047 adds as a principal objection the alleged unjustified bias of
the Philippine government in favor of
selling the property to non-Filipino citizens and
entities.  These petitions have been consolidated and
are resolved at the same time for the objective is the same — to stop the sale
of the Roppongi property.

The petitioner in G. R.
No. 92013 raises the following issues:

(1)  Can the Roppongi property and others of its kind be alienated by
the Philippine Government?; and

(2)  Does the Chief
Executive, her officers and agents, have the authority and jurisdiction, to
sell the Roppongi property?

Petitioner Dionisio Ojeda in G. R. No.
92047, apart from questioning the authority of the government to alienate the Roppongi property assails the constitutionality of
Executive Order No. 296 in making
the property available for sale to
non-Filipino citizens and entities.  He
also questions the bidding procedures of the Committee on the Utilization or
Disposition of Philippine Government Properties in Japan
for being discriminatory against Filipino citizens and Filipino-owned entities
by denying them the right to be informed about the bidding requirements.

II

In G. R. No. 92013, petitioner Laurel
asserts that the Roppongi property and the related
lots were acquired as part of the reparations from the Japanese government for
diplomatic and consular use by the Philippine government.  Vice-President Laurel states that the Roppongi property is classified as one of public dominion,
and not of private ownership under Article 420 of the Civil Code (See infra).

The petitioner submits that the Roppongi
property comes under “property intended for public service” in paragraph 2 of
the above provision.  He states that
being one of public dominion, no ownership by any one can attach to it, not
even by the State.  The Roppongi and related properties were acquired for “sites
for chancery, diplomatic, and consular quarters, buildings and other
improvements” (Second Year Reparations Schedule).  The petitioner states that they continue to
be intended for a necessary service. 
They are held by the State in anticipation of an opportune use.  (Citing 3 Manresa 65-66).  Hence, it
cannot be appropriated, is outside the commerce of man, or to put it in more
simple terms, it cannot be alienated nor be the subject matter of contracts
(Citing Municipality of Cavite v. Rojas, 30 Phil. 20 [1915]).  Noting the non-use of the Roppongi
property at the moment, the petitioner avers that the same remains
property of public dominion so long as the government has not used it for other
purposes nor adopted any measure constituting a removal of its original purpose
or use.

The respondents, for their part, refute the petitioner’s
contention by saying that the subject property is not governed by our Civil
Code but by the laws of Japan
where the property is located.  They rely
upon the rule of lex situs
which is used in determining the applicable law regarding the acquisition,
transfer and devolution of the title to a property.  They also invoke Opinion No. 21, Series of
1988, dated January 27, 1988
of the Secretary of Justice which used the lex
situs in explaining the inapplicability of
Philippine law regarding a property situated in Japan.

The respondents add that even assuming for the sake of argument
that the Civil Code is applicable, the Roppongi
property has ceased to become property of public dominion.  It has become patrimonial property because it
has not been used for public service or for diplomatic purposes for over
thirteen (13) years now (Citing Article 422, Civil Code) and because the intention
by the Executive Department and the Congress to convert it
to private use has been manifested by overt acts, such as,
among others:  (1) the transfer of the
Philippine Embassy to Nampeidai; (2) the issuance of
administrative orders for the possibility of alienating the four government
properties in Japan; (3) the issuance of Executive Order No. 296; (4) the
enactment by the Congress of Rep. Act No. 6657 [the Comprehensive Agrarian
Reform Law] on June 10, 1988 which contains a provision stating that funds may
be taken from the sale of Philippine properties in foreign countries; (5) the
holding of the public bidding of the Roppongi
property but which failed; (6) the deferment by the Senate in Resolution No. 55
of the bidding to a future date; thus an acknowledgment by the Senate of the
government’s intention to remove the Roppongi
property from the public service purpose; and (7) the resolution of this Court
dismissing the petition in Ojeda v. Bidding
Committee, et al., G. R. No. 87478 which sought to enjoin
the second bidding of the Roppongi property scheduled
on March 30, 1989.

III

In G. R. No.
92047, petitioner Ojeda once more asks this
Court to rule on the constitutionality of Executive Order No. 296.  He had earlier filed a petition in G. R. No.
87478 which the Court dismissed on August 1, 1989.  He now avers that the executive order
contravenes the constitutional mandate to conserve and develop the national
patrimony stated in the Preamble of the 1987 Constitution.  It also allegedly violates:

 (1)  The reservation of the ownership and
acquisition of alienable lands of the public domain to Filipino citizens.  (Sections 2 and 3, Article
XII, Constitution; Sections 22 and 23 of Commonwealth Act 141).

(2)  The preference for
Filipino citizens in the grant of rights, privileges and concessions covering
the national economy and patrimony (Section 10, Article VI, Constitution);

(3)  The protection given
to Filipino enterprises against unfair competition and trade practices;

(4)  The guarantee of the
right of the people to information on all matters of public concern (Section 7,
Article III, Constitution);

(5)  The prohibition
against the sale to non-Filipino citizens or entities not wholly owned by
Filipino citizens of capital goods received by the Philippines under the
Reparations Act (Sections 2 and 12 of Rep. Act No. 1789); and

(6)  The declaration of the
state policy of full public disclosure of all transactions involving public
interest (Section 28, Article II, Constitution).

Petitioner Ojeda warns that the use of
public funds in the execution of an unconstitutional executive order is a
misapplication of public funds.  He
states that since the details of the bidding for the Roppongi
property were never publicly
disclosed until February 15, 1990 (or a few days before the scheduled
bidding), the bidding guidelines are available only in Tokyo, and the
accomplishment of requirements and the selection of qualified bidders should be
done in Tokyo, interested Filipino citizens or entities owned by them did not
have the chance to comply with Purchase Offer Requirements on the Roppongi.  Worse, the
Roppongi shall be sold for a minimum price of $225
million from which price capital gains tax under Japanese law of about 50 to
70% of the floor price would still be deducted.

IV

The petitioners and
respondents in both cases do not dispute the fact that the Roppongi
site and the three related properties were acquired through reparations
agreements, that these were assigned to the government sector and that the Roppongi property itself
was specifically designated
under the Reparations Agreement to house the Philippine Embassy.

The nature of the Roppongi lot as property for public service is expressly
spelled out.  It is
dictated by
the terms of the Reparations Agreement and the corresponding contract of
procurement which bind both the Philippine government and the Japanese
government.

There can be no doubt
that it is of public dominion unless it is convincingly shown that the property
has become patrimonial.  This, the
respondents have failed to do.

As property of public
dominion, the Roppongi lot is outside the commerce of
man.  It cannot be alienated.  Its ownership is a special collective
ownership for general use and enjoyment, an application to the satisfaction of
collective needs, and resides in the social group.  The purpose is not to serve the State as a
juridical person, but the citizens; it is intended for the common and public
welfare and cannot be the object of appropriation.  (Taken from 3 Manresa,
66-69; cited in Tolentino, Commentaries on the Civil
Code of the Philippines, 1963 Edition, Vol. II, p. 26).

The applicable provisions
of the Civil Code are:

“ART. 419.    Property is
either of public dominion or of private ownership.

“ART. 420.    The following
things are property of public dominion:

“(1)    Those intended for
public use, such as roads, canals, rivers, torrents, ports and bridges
constructed by the State, banks, shores, roadsteads, and others of similar
character;

“(2)    Those
which belong to the State, without being for public use, and are intended for some public service or for the
development of the national wealth.

“ART. 421.    All other
property of the State, which is not of the character stated in the preceding
article, is patrimonial property.”

The Roppongi
property is correctly classified under paragraph 2 of Article 420 of the Civil
Code as property belonging to the State and intended for some public service.

Has the intention of the
government regarding the use of the property been changed because the lot has
been idle for some years?  Has it become
patrimonial?

The fact that the Roppongi site has not been used for a long time for actual
Embassy service does not automatically convert it to patrimonial property.  Any such conversion happens only if the
property is withdrawn from public use (Cebu Oxygen
and Acetylene
Co. v. Bercilles, 66 SCRA 481 [1975]).  A property continues to be part of the public
domain, not available for private appropriation or ownership “until there is a
formal declaration on the part of the government to withdraw it from being such
(Ignacio v. Director of Lands, 108 Phil. 335 [1960]).

The respondents enumerate
various pronouncements by concerned public officials insinuating a change of
intention.  We emphasize, however, that
an abandonment of the intention to use the Roppongi
property for public service and to make it patrimonial property under Article
422 of the Civil Code must be definite.  Abandonment cannot be inferred from the
non-use alone specially if the non-use was attributable not to the government’s
own deliberate and indubitable will but to a lack of financial support to
repair and improve the property (See Heirs of Felino
Santiago v. Lazaro, 166 SCRA 368 [1988]).  Abandonment must be a certain and positive
act based on correct legal premises.

A mere transfer of the
Philippine Embassy to Nampeidai in 1976 is not
relinquishment of the Roppongi property’s original
purpose.  Even the failure by the
government to repair the building in Roppongi is not
abandonment since as earlier stated, there simply was a shortage of government
funds.  The recent Administrative Orders
authorizing a study of the status and conditions of government properties in
Japan were merely directives for investigation but
did not in any way signify a clear intention to dispose of the properties.

Executive Order No. 296,
though its title declares an “authority to sell”, does not have a provision in
its text expressly authorizing the sale of the four
properties procured
from Japan for
the government sector.  The executive
order does not declare that the properties lost their public character.  It merely intends to make the properties available to foreigners and not
to Filipinos alone in
case of a sale,
lease or other disposition.  It merely eliminates the restriction under
Rep. Act No. 1789 that reparations goods may be sold only to Filipino citizens
and one hundred (100%) percent Filipino-owned entities.  The text of Executive Order No. 296 provides:

“Section 1.  The provisions of Republic Act No. 1789, as
amended, and of other laws to the contrary notwithstanding, the abovementioned
properties can be made available for sale, lease or any other manner of
disposition to non-Filipino citizens or to entities owned by non-Filipino
citizens.”

Executive Order No. 296
is based on the wrong premise or assumption that the Roppongi
and the three other properties were earlier converted into alienable
real
properties.  As earlier stated, Rep. Act
No. 1789 differentiates the procurements for the government sector and the
private sector (Sections 2 and 12, Rep. Act No. 1789).  Only the private sector properties can be
sold to end-users who must be Filipinos or entities owned by Filipinos.  It is this nationality provision which was
amended by Executive Order No. 296.

Section 63 (c) of Rep. Act. No. 6657 (the CARP Law) which
provides as one of the sources of funds for its implementation, the proceeds of
the disposition of the properties of the Government in foreign countries, did
not withdraw the Roppongi property from being
classified as one of public dominion when it mentions Philippine properties
abroad.  Section 63 (c) refers to
properties which are alienable and not to those reserved for public use or
service.  Rep. Act No. 6657, therefore,
does not authorize the Executive Department to sell the Roppongi
property.  It merely enumerates possible
sources of future funding to augment (as and when needed) the Agrarian Reform
Fund created under Executive Order No. 299. 
Obviously any property outside of the commerce of man cannot be tapped
as a source of funds.

The respondents try to get
around the public dominion character of the Roppongi
property by insisting that Japanese law and not our Civil Code should apply.

It is exceedingly strange why our top government officials, of
all people, should be the ones to insist that in the sale of extremely valuable
government property, Japanese law and not Philippine law should prevail. 
The Japanese law — its coverage and effects, when enacted, and
exceptions to its provisions — is not presented to the Court.  It is simply asserted that the lex
loci rei sitae or
Japanese law should apply without stating what that law provides.  It is assumed on faith that Japanese law
would allow the sale.

We see no reason why a
conflict of law rule should
apply when no conflict of law situation
exists.  A conflict of law situation
arises only when:  (1) There is a dispute
over the title or ownership of an immovable, such that the
capacity to take and transfer immovables, the formalities of conveyance, the essential
validity and effect of the transfer, or the interpretation and
effect of
a conveyance, are to be determined (See Salonga, Private
International Law, 1981 ed., pp. 377-383); and (2) A foreign law
on land ownership and its conveyance is
asserted to conflict with a domestic law on the same matters.  Hence, the need to determine which law should
apply.

In the instant case, none
of the above elements exists.

The issues are not concerned with validity of ownership or title.  There is no question that the property
belongs to the
Philippines.  The
issue is the authority of the respondent officials to validly dispose of
property belonging to the State.  And the
validity of the procedures adopted to effect its
sale.  This is governed by Philippine
law.  The rule of
lex situs does not apply.

The assertion that the
opinion of the Secretary of Justice sheds light on the relevance of the lex
situs rule is misplaced.  The opinion does not tackle the alienability of the real properties
procured through reparations nor the existence in what body of the authority to
sell them.  In discussing
who are capable of acquiring the lots, the Secretary merely explains that
it is the foreign law which should determine
who can acquire the properties so that the constitutional limitation on acquisition of lands of the
public domain to Filipino citizens and entities wholly owned by Filipinos is
inapplicable.  We see no point in
belaboring
whether or not this opinion is correct. 
Why should we discuss who can acquire the Roppongi
lot when there is no showing that it can be sold?

The subsequent approval on October 4, 1988 by President Aquino
of the recommendation by the investigating committee to sell the Roppongi property was premature or, at the very least,
conditioned on a valid change in the public character of the Roppongi property. 
Moreover, the approval does not have the force and effect of law since
the President already lost her
legislative powers.  The Congress had
already convened for more than a year.

Assuming for the sake of argument, however, that the Roppongi property is no longer of public dominion, there is
another obstacle to its sale by the respondents.

There is no law authorizing
its conveyance.

Section 79 (f) of the
Revised Administrative Code of 1917 provides:

“Section 79 (f).  Conveyances and contracts
to which the Government is a party.  In cases in which the Government of the
Republic of the Philippines is a party to any deed or other instrument conveying
the title to real estate or to any other property the value of which in excess
of one hundred thousand pesos, the respective Department Secretary shall
prepare the necessary papers which, together with the proper recommendations, shall
be submitted to the Congress of the
Philippines for approval by the same.  Such deed, instrument, or contract shall be
executed and signed by the President of the Philippines
on behalf of the Government of the Philippines
unless the authority therefor be
expressly vested by law in another officer.” (Underlining supplied)

The requirement has been
retained in Section 48, Book I of the Administrative Code of 1987 (Executive
Order No. 292).

“SEC. 48.  Official Authorized
to Convey Real Property.  – Whenever real property of the Government is
authorized by law to be conveyed, the
deed of conveyance shall be executed in behalf of the government by the following:

“(1)  For
property belonging to and titled in the name of the Republic of the Philippines,
by the President, unless the authority therefor is
expressly vested by law in another officer.

“(2)  For
property belonging to the Republic of the Philippines
but titled in the name of any political subdivision or of any corporate agency
or instrumentality, by the executive head of the agency or instrumentality.”
(Underlining supplied)

It is not for the President to convey valuable real property of
the government on his or her own sole will. 
Any such conveyance must be
authorized and approved by a law enacted by the Congress.  It requires executive
and legislative
concurrence.

Resolution No. 55 of the
Senate dated June 8, 1989, asking for the deferment of the sale of the Roppongi property does not withdraw the property from
public domain much less authorize its sale. 
It is a mere resolution; it is not a formal declaration abandoning the
public character of the Roppongi property.  In fact, the Senate Committee on Foreign
Relations is conducting hearings on Senate Resolution No. 734 which raises
serious policy considerations and calls for a fact-finding investigation of the
circumstances behind the decision to sell the Philippine government properties
in
Japan.

The resolution of this
Court in Ojeda v. Bidding Committee,
et al., supra, did not pass upon the
constitutionality
of Executive Order No. 296.  Contrary to
respondents’ assertion, we did not uphold the authority of the President to sell the Roppongi
property.  The Court stated that the
constitutionality
of the executive
order was not the real issue and that
resolving the constitutional
question was “neither necessary nor
finally determinative of the case.” The Court noted that “[W]hat petitioner
ultimately questions is the use of the proceeds of the disposition of the Roppongi property.” In emphasizing that “the decision of
the Executive to dispose of the Roppongi property to
finance the CARP x x x
cannot be questioned” in view of Section 63 (c) of Rep. Act No. 6657, the Court
did not acknowledge the fact that the property became alienable nor did it indicate
that the President was authorized to dispose of the Roppongi
property.  The resolution should be read
to mean that in case the Roppongi property is
re-classified to be patrimonial and alienable by authority of law, the proceeds
of a sale may be used for national economic development projects including the
CARP.

Moreover, the sale in
1989 did not materialize.  The petitions
before us question the proposed 1990 sale of the Roppongi
property.  We are resolving
the issues raised in these petitions, not the
issues raised in 1989.

Having declared a need
for a law or formal declaration to withdraw the Roppongi
property from public domain to make it alienable and a need for legislative
authority to allow the sale of the property, we see no compelling reason to
tackle the constitutional issues raised by petitioner Ojeda.

The Court does  not ordinarily  pass
upon constitutional questions unless these questions are
properly raised
in appropriate cases and their resolution is necessary for the determination of
the case (People v. Vera, 65 Phil. 56 [1937]). 
The Court will not pass upon a constitutional question although properly
presented by the record if the case can be disposed of on some other ground
such as the application of a statute or
general law (Siler v. Louisville and Nashville R. Co., 213 U. S. 175, [1909],
Railroad Commission v. Pullman Co., 312 U.
S. 496 [1941]).

The petitioner in G. R.
No. 92013 states why the Roppongi property should not
be sold:

The Roppongi property is not just like
any piece of property.  It was given to
the Filipino people in reparation for the lives and blood of Filipinos who died
and suffered during the Japanese military occupation, for the suffering of
widows and orphans who lost their loved ones and kindred, for the homes and other
properties lost by countless Filipinos during the war.  The Tokyo
properties are a monument to the bravery and sacrifice of the Filipino people
in the face of an invader; like the monuments of Rizal,
Quezon, and other Filipino heroes, we do not expect economic
or financial benefits from them.  But who
would think of selling these monuments? 
Filipino honor and national dignity dictate that we keep our properties
in Japan as
memorials to the countless Filipinos who died and suffered.  Even if we should become paupers we should
not think of selling them.  For it would
be as if we sold the lives and blood and tears of our countrymen.  (Rollo G. R. No.
92013, p. 147)

The petitioner in G. R.
No. 92047 also states:

“Roppongi is no ordinary property.  It is one ceded by the Japanese government in
atonement for its past belligerence, for the valiant sacrifice of life and limb
and for deaths, physical dislocation and economic devastation the whole
Filipino people endured in World War II.

“It is for what it stands for, and for what it could never bring
back to life, that its significance today remains undimmed, inspite
of the lapse of 45 years since the war ended, inspite
of the passage of 32 years since the property passed on to the Philippine
government.

“Roppongi is a reminder that cannot —
should not — be dissipated.  x x x.” (Rollo
– 92047, p. 9)

It is indeed true that
the Roppongi property is valuable not so much because
of the inflated prices
fetched by real property in Tokyo
but more so because of its symbolic value to all Filipinos – veterans and
civilians alike.  Whether or not the Roppongi
and related properties will eventually be sold is a policy determination where both the President and
Congress
must concur.  Considering the properties’ importance and value,
the laws on conversion and disposition of property of public dominion must be
faithfully followed.

WHEREFORE,
IN VIEW OF THE FOREGOING,

the petitions are GRANTED.  A writ of
prohibition is issued enjoining the respondents from proceeding with the sale
of the Roppongi property in
Tokyo, Japan.  The
February 20, 1990 Temporary Restraining Order is made PERMANENT.

SO ORDERED.

Melencio-Herrera, Paras,
Bidin, Griño-Aquino, and Regalado, JJ., concur.

Fernan (C.J.), Narvasa,
Gancayco, Cortes, and
Medialdea, JJ., join Justice Feliciano’s dissent.

Cruz, J., See concurrence.

Feliciano, J., See separate dissent.

Padilla, J., See concurring statement.

Sarmiento, J., See concurring opinion.


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CONCURRING OPINION

CRUZ, J.:

I concur completely with the excellent ponencia
of Mr. Justice Gutierrez and will add the following observations only for
emphasis.

It is clear that the respondents have failed to show the President’s
legal authority to sell the Roppongi property.  When asked to do so at the hearing on these
petitions, the Solicitor General was at best ambiguous, although I must add in
fairness that this was not his fault. 
The fact is that there is no such authority.  Legal expertise alone cannot conjure that
statutory permission out of thin air.

Exec. Order No. 296, which reads like so
much legislative double talk, does not contain such authority.  Neither does Rep. Act No. 6657, which simply
allows the proceeds of the sale of our properties abroad to be used for the
comprehensive agrarian reform program. 
Senate Res. No. 55 was a mere request for the deferment of the scheduled
sale of the Roppongi property, possibly to stop the
transaction altogether; and in any case it is not a law.  The sale of the said property may be
authorized only by Congress through a duly enacted statute, and there is no
such law.

Once again, we have affirmed the principle that ours is a government of laws and not of men,
where every public official, from the lowest to the
highest, can act only by virtue of a valid authorization.  I am happy to note that in the several cases
where this Court has ruled against her, the President of the Philippines
has submitted to this principle with becoming grace.


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Dissenting Opinion

Feliciano,
J.:

With regret, I find myself unable to share the conclusions
reached by Mr. Justice Hugo E. Gutierrez, Jr.

For purposes of this separate opinion, I assume that the piece of
land located in 306 Ropponggi, 5-Chome, Minato-ku, Tokyo, Japan
(hereinafter referred to as the “Ropponggi
property”) may be characterized as property of public dominion, within the
meaning of Article 420 (2) of the Civil Code:

“[Property] which belong[s] to the State, without being for
public use, and are intended for some public service —.”

It might not be amiss, however, to note
that the appro­priateness of trying to bring within the confines of the simple
three-fold classification found in Article 420 of the Civil Code
(“property for public use”, property “intended for some public
service” and property intended “for the development of the national
wealth”) all property owned by the Republic of the Philippines
whether found within the territorial boundaries of the Republic or located
within the territory of another sovereign State, is not
self-evident.  The first item of the
classification — property intended for public use — can scarcely be
properly applied to property belonging to the Republic but found within the
territory of another State.  The third
item of the classification — property intended for the development of the
national wealth — is illustrated, in Article 339 of the Spanish Civil Code of
1889, by mines or mineral properties. 
Again, mineral lands owned by a sovereign State are rarely, if ever,
found within the territorial base of another sovereign State.  The task of examining in detail the
applicability of the classification set out in Article 420 of our Civil Code to
property that the Philippines happens to own outside its own boundaries must,
however, be left to academicians.

For present purposes, too, I agree that there is no question of
conflict of laws that is, at the
present time
, before this Court. 
The issues before us
relate essentially to authority to sell the Ropponggi
property so far as Philippine law is concerned.

The majority opinion raises two (2) issues:  (a) whether or not the Ropponggi
property has been converted into patrimonial property or property of the
private domain of the State; and (b) assuming an affirmative answer to (a),
whether or not there is legal authority to dispose of the Ropponggi
property.

I

Addressing the first issue of conversion of property of public
dominion intended for some public service, into property of the private domain
of the Republic, it should be noted that the Civil Code does not address the
question of who has authority to effect such conversion.  Neither does the Civil Code set out or refer
to any procedure for such conversion.

Our case law, however, contains some fairly explicit
pronouncements on this point, as Justice Sarmiento
has pointed out in his concurring opinion. 
In Ignacio v. Director of Lands (108 Phils.
335 [1960]), petitioner Ignacio argued that if the land in question formed part
of the public domain, the trial court should have declared the same no longer
necessary for public use or public purposes and which would, therefore, have
become disposable and available for private ownership.  Mr. Justice Montemayor,
speaking for the Court, said:

“Article 4 of the Law of Waters of 1866 provides that when a
portion of the shore is no longer washed by the waters of the sea and is not
necessary for purposes of public utility, or for the establishment of special
industries, or for coast-guard service, the government shall declare it to be
the property of the owners of the estates adjacent thereto and as an increment thereof.  We believe that only the executive and
possibly the legislative departments have the authority and the power to make
the declaration
that any land so gained by the sea, is not necessary for
purposes of public utility, or for the establishment of special industries, or
for coast-guard service.  If no such
declaration has been made by said departments, the lot in question forms part
of the public domain
.” (Natividad
v. Director of Lands, supra.)

The reason for this pronouncement,
according to this Tribunal in the case of Vicente Joven
y Monteverde v. Director of Lands, 93 Phil., 134
(cited in Velayo’s Digest, Vol. 1, p. 52).

‘x x x is
undoubtedly that the courts are neither primarily called upon, nor indeed in a
position to determine whether any public land are to be used for the purposes
specified in Article 4 of the Law of Waters.’

Consequently, until a formal declaration
on the part of the Government, through the executive department or the
Legislature, to the effect that the land in question is no longer needed

for coast-guard service, for public use or for special industries, they
continue to be part of the public domain, not available for private
appropriation or ownership
.” (108 Phil. at 338-339; underscoring
supplied)

Thus, under Ignacio, either the Executive
Department
or the Legislative Department may convert property of the
State of public dominion into patrimonial property of the State.  No particular formula or procedure of
conversion is specified either in statute law or in case law.  Article 422 of the Civil Code simply states
that:  “Property of public dominion,
when no longer intended for public use or for public service, shall
form part
of the patrimonial property of the State”.  I respectfully submit, therefore, that the
only requirement which is legitimately imposable is that the intent to convert
must be reasonably clear from a consideration of the act or acts of the
Executive Department or of the Legislative Department which are said to have
effected such conversion.

The same legal situation exists in respect of conversion of
property of public dominion belonging to municipal corporations, i.e., local governmental
units, into patrimonial property of such entities.  In Cebu
Oxygen Acetylene v. Bercilles
(66 SCRA 481
[1975]), the City Council of Cebu by resolution
declared a certain portion of an existing street as an abandoned road,
“the same not being included in the city development plan”.  Subsequently, by another resolution, the City
Council of Cebu authorized the acting City Mayor to
sell the land through public bidding.  Although
there was no formal and explicit declaration of conversion of property for
public use into patrimonial property
, the Supreme Court said:

“x x
x                         x
x x                             x x x

(2)  Since that portion of
the city street
subject of petitioner’s application for registration of
title was withdrawn from public use, it follows that such withdrawn portion
becomes patrimonial property which can be the object of an ordinary contract
.

Article 422 of the Civil Code expressly provides that ‘Property of
public dominion, when no longer intended for public use of for public service,
shall form part of the patrimonial property of the State.’

Besides, the Revised Charter of the City of Cebu
heretofore quoted, in very clear and unequivocal terms, states that ‘Property
thus withdrawn from public servitude may be used or conveyed for any purpose
for which other real property belonging to the City may be lawfully used or
conveyed.’

Accordingly, the withdrawal of the property in question from public use and its
subsequent sale to the petitioner is valid
. 
Hence, the petitioner has a registrable title
over the lot in question.” (66 SCRA at 484; underscoring supplied)

Thus, again as pointed out by Sarmiento, J. in his separate opinion, in the case
of property owned by municipal corporations simple non-use or the actual
dedication of public property to some use other than “public use” or
some “public service”, was sufficient legally to convert such
property into patrimonial property (Municipality of Oas
v.
Roa, 7 Phil. 20 [1906]; Municipality of
Hinunganan v. Director of Lands
, 24 Phil. 124 [1913]; Province of Zamboanga del Norte v. City of Zamboanga,
22 SCRA 1334 (1968).

I would also add that
such was the case not only in respect of property of municipal corporations but
also in respect of property of the State itself. 
Manresa in commenting on Article 341 of the 1889 Spanish
Civil Code which has been carried over verbatim into our Civil Code by
Article 422 thereof, wrote:

“La dificultad mayor en todo esto estriba,
naturalmente, en fijar el momento en que los bienes de dominio
publico dejan de serlo.  Si la Administracion o la autoridad competente legislativa realizan un acto en virtud
del cual
cesa el destino o uso publico de los bienes de que
se trata, naturalmente la dificultad queda desde el primer momento resuelta.  Hay un punto de partida
cierto para iniciar las relaciones
juridicas a que pudiera haber lugar.  Pero puede ocurrir que
no haya tal declaracion expresa, legislativa or administrativa, y,
sin embargo, cesar de hecho
el destino publico de los bienes;
ahora bien, en este caso, y para los efectos
juridicos que resultan de entrar la cosa en el comercio de los hombres, ¿se entendera que se ha verificado la
conversion de los bienes de
dominio publico en bienes patrimoniales
?

El citado tratadista
Ricci opina, respecto del antiguo
Codigo italiano, por la afirmativa,
y por nuestra parte creemos que
tal debe ser la solucion.  El destino de las cosas no depende tanto de una declaracion
expresa
como del
uso publico de las mismas, y cuando
el uso publico cese con respecto de determinados bienes, cesa tambien su
situacion en el dominio publico
.  Si una fortaleza en ruina
se abandona y no se repara,
si un trozo de
la via publica se abandona tambien por constituir
otro nuevo en mejores condiciones …. ambos bienes cesan de estar adscritos al uso comun o a la defensa nacional, y ambos bienes pasan el patrimonio del Estado, y su regimen juridico es el del presente Codigo, y las leyes especiales
mas o memos administrativas.”
(3 Manresa,
Comentarios al Codigo Civil
Español, p. 128 (7a ed.; 1952) (Underscoring
supplied)

The majority opinion says
that none of the executive acts pointed to by the Government purported,
expressly or definitely, to convert the Ropponggi
property into p
atrimonial property of the Republic.  Assuming that to be the case, it is
respectfully submitted that the cumulative effect of the executive acts
here involved was to convert property originally intended for and devoted to
public service into patrimonial property of the State, that is, property
susceptible of disposition to and appropriation by private persons.  These executive acts, in their totality
if not each individual act, make crystal clear the intent of the Executive
Department to effect such conversion. 
These executive acts include:

(a)  Administrative Order No.
3 dated 11 August 1985,
which created a Committee to study the disposition/utilization of the
Government’s property in Japan.  The Committee was composed of officials of
the Executive Department:  the Executive
Secretary; the Philippine Ambassador to Japan;
and representatives of the Department of Foreign Affairs and the Asset
Privatization Trust.  On 19 September 1988, the Committee
recommended to the President the sale of one of the lots (the lot specifically
in Ropponggi) through public bidding.  On 4
October 1988, the President approved the recommendation of the
Committee.

On 14 December 1988,
the Philippine Govern­ment by diplomatic note informed the Japanese Ministry of
Foreign Affairs of the Republic’s intention to dispose of the
property in Ropponggi.  The Japanese Government through its Ministry
of Foreign Affairs replied that it interposed no objection to such disposition
by the Republic.  Subsequently, the
President and the Committee informed the leaders of the House of Represent­atives
and of the Senate of the Philippines
of the proposed disposition of the Ropponggi
property.

(b)  Executive Order No. 296,
which was issued by the President on 25
July 1987.  Assuming that the
majority opinion is right in saying that Executive Order No. 296 is
insufficient to authorize the sale of the Ropponggi
property, it is here submitted with respect that Executive Order No. 296 is
more than sufficient to indicate an intention to convert the property
previously devoted to public service into patrimonial property that is
capable of being sold or otherwise disposed of.

(c)  Non-use of the Ropponggi lot for fourteen (14) years for diplomatic or for
any other public purposes.  Assuming (but
only arguendo) that non-use does not, by itself, automatically convert the property into
patrimonial property, I respectfully urge that prolonged non-use, conjoined
with the other factors here listed
, was legally effective to convert the
lot in Ropponggi into patrimonial property of the State.  Actually, as already pointed out, case law
involving property of municipal corporations is to the effect that simple
non-use or the actual dedication of public property to some use other than
public use or public service, was sufficient to convert such property into
patrimonial property of the local governmental entity concerned.  Also as pointed out above, Manresa reached the same
conclusion in respect of conversion of property of the public domain of the
State into property of the private domain of the State.

The majority opinion states that “abandonment cannot be
inferred from the non-use alone especially if the non-use was attributable not
to the Government’s own deliberate and indubitable will but to lack of financial support to repair and improve the
property” (Majority Opinion, p. 13). 
With respect, it may be stressed that there is no abandonment
involved here, certainly no abandonment of property or of property rights.  What is involved is the change of the
class­ification
of the property from property of the public domain into
property of the private domain of the State. 
Moreover, if for fourteen (14) years, the Government did not see fit to
appropriate whatever funds were necessary to maintain the property in Ropponggi in a condition suitable for diplomatic
representation purposes, such circumstance may, with equal logic, be construed
as a manifestation of the crystalizing intent to
change the character of the property.

(d) On 30 March 1989,
a public bidding was in fact held by the Executive Department for the sale of
the lot in Ropponggi. 
The circumstance that this bidding was not successful certainly does not
argue against an intent to convert the property
involved into property that is disposable by bidding.

The above set of events and circumstances
makes no sense at all if it does not, as a whole, show at least
the intent on the part of the Executive Department (with the knowledge of the
Legislative Department) to convert the property involved into patrimonial
property that is susceptible of being sold.

II

Having reached an affirmative answer in respect of the first
issue, it is necessary to address the second issue of whether or not there
exists legal authority for the sale or disposition of
the Ropponggi property.

The majority opinion refers to Section 79(f) of the Revised
Administrative Code of 1917 which reads as follows:

“SEC. 79 (f).  Conveyances and contracts to which the
Government is a party
. — In cases in which the Government of the Republic
of the Philippines is a party to any deed or other instrument conveying the
title to real estate
or to any other property the value of which is in excess of one hundred thousand
pesos
, the respective Department Secretary shall prepare the necessary
papers which, together with the proper recommendations, shall be submitted
to the Congress of the Philippines for approval by the same
.  Such deed, instrument, or contract shall be
executed and signed by the President of the Philippines
on behalf of the Government of the Philippines
unless the authority therefor be
expressly vested by law in another officer.” (Underscoring supplied)

The majority opinion then goes on to
state that:  “[T]he requirement has been retained in Section 4, Book I of
the Administrative Code of 1987 (Executive Order No. 292)” which reads:

“SEC. 48.  Official Authorized to Convey Real
Property
. — Whenever real property of the Government is authorized by
law to be conveyed
, the deed of conveyance shall be executed in behalf of
the government by the following:

(1)  For property belonging
to and titled in the name of the Republic of the Philippines,
by the President, unless the authority therefor is
expressly vested by law in another officer.

(2)  For
property belonging to the Republic of the Philippines
but titled in the name of any political subdivision or of any corporate agency
or instrumentality, by the executive head of the agency or
instrumentality.” (Underscoring supplied)

Two points need to be made in this connection.  Firstly, the requirement of obtaining
specific approval
of Congress when the price of the real property
being disposed of is in excess of One Hundred Thousand Pesos (P100,000.00) under the Revised Administrative Code of 1917,
has been deleted from Section 48 of the 1987 Administrative Code.  What Section 48 of the present Administrative
Code refers to is authorization by law for the conveyance.  Section 48 does not purport to be itself a
source of legal authority for conveyance of real property of the
Government.  For Section 48 merely
specifies the official authorized to execute and sign on behalf of the
Government the deed of conveyance in case of such a conveyance.

Secondly, examination of our statute books shows that
authorization by law for disposition of real property of the private domain of
the Government, has been granted by Congress both in the form of (a) a general,
standing authorization for disposition of patrimonial property of the
Government; and (b) specific legislation authorizing the disposition of
particular pieces of the Government’s patrimonial property.

Standing legislative authority for the disposition of land of the
private domain of the Philippines is provided by Act No. 3038, entitled
“An Act Authorizing the Secretary of Agriculture and Natural Resources to
Sell or Lease Land of the Private Domain of the Government of the Philippine
Islands
(now Republic of the Philippines)”, enacted on 9 March
1922.  The full text of this statute is
as follows:

“Be it enacted by the Senate and House of Representatives of
the Philippines
in Legislature assembled and by the authority of the same:

SECTION 1. 
The Secretary of Agriculture and Natural Resources (now Secretary of the
Environment and Natural Resources) is hereby authorized to sell or lease
land of the private domain of the Government of the Philippine Islands, or any
part thereof
, to such persons, corporations or associations as are, under
the provisions of Act Numbered Twenty-eight hundred and seventy-four, (now
Commonwealth Act No. 141, as amended)
known as the Public Land Act, entitled to apply for the purchase or lease of
agricultural public land.

SECTION 2. 
The sale of the land referred to in the preceding section shall,
if such land is agricultural, be made in the manner and subject to the
limitations prescribed in chapters five and six, respectively, of said Public
Land Act, and if it be classified differently, in conformity with the
provisions of chapter nine of said Act
: 
Provided, however, That the land necessary for the public service shall
be exempt from the provisions of this Act.

SECTION 3. 
This Act shall take effect on its approval.

Approved, March 9, 1922.”
(Underscoring supplied)

Lest it be assumed that Act No. 3038
refers only to agricul­tural lands of the private domain of the State, it must
be noted that Chapter 9 of the old Public Land Act (Act No. 2874) is now
Chapter 9 of the present Public Land Act (Commonwealth Act No. 141, as amended)
and that both statutes refer to: 
“any tract of land of the public domain which being neither timber
nor mineral land, is intended to be used for residential purposes or for
commercial or industrial purposes other than agricultural”
(Underscoring supplied).  In other words,
the statute covers the sale or lease of residential, commercial or industrial
land of the private domain of the State.

Implementing regulations have been issued for the carrying out of
the provisions of Act No. 3038.  On 21
December 1954, the then Secretary of Agriculture and Natural Resources
promulgated Lands Administrative Orders Nos. 7-6 and 7-7 which were entitled,
respectively:  “Supplementary
Regulations Governing the Sale of the Lands of the Private Domain of the Republic of the Philippines”; and
“Supplementary Regulations Governing the Lease of Lands of Private Domain of the Republic of the
Philippines” (text in 51 O.G. 28-29 [1955]).

It is perhaps well to add that Act No. 3038, although now
sixty-eight (68) years old, is still in effect and has not been repealed.[1]

Specific legislative authorization for disposition of particular
patrimonial properties of the State is illustrated by certain earlier
statutes.  The first of these was Act No.
1120, enacted on 26 April 1904,
which provided for the disposition of the friar lands, purchased by the
Government from the Roman Catholic Church, to bona fide settlers and occupants thereof or to other persons.  In Jacinto
v. Director of Lands
(49
Phil. 853 [1926]), these friar lands were held to be private and patrimonial
properties of the State.  Act No. 2360,
enacted on 28 February 1914,
authorized the sale of the San Lazaro Estate located in the City of Manila,
which had also been purchased by the Government from the Roman Catholic
Church.  In January 1916, Act No. 2555
amended Act No. 2360 by including therein all lands and buildings owned by the
Hospital and the Foundation of San Lazaro theretofor leased by private persons, and which were also
acquired by the Philippine Government.

After the enactment in 1922 of Act No. 3038, there appears, to my
knowledge, to be only one statute authorizing the President to dispose of a
specific piece of property.  This statute
is Republic Act No. 905, enacted on 20
June 1953, which authorized the President to sell an identified
parcel of land of the private domain of the National Government to the National
Press Club of the Philippines,
and to other recognized national associations of professionals with academic
standing, for the nominal price of P1.00.  It appears relevant to note that
Republic Act No. 905 was not an outright disposition in perpetuity of the
property involved; it provided for reversion of the property to the National
Government in case the National Press Club stopped using it for its
headquarters.  What Republic Act No. 905
authorized was really a donation, and not a sale.

The basic submission here made is that Act No. 3038 provides
standing legislative authorization for disposition of the Ropponggi
property which, in my view, has been converted into patrimonial property of the
Republic.[2]

To some, the submission that Act No. 3038 applies not only to
lands of the private domain of the State located in the Philippines but also
to patrimonial property found outside the Philippines
, may appear strange
or unusual.  I respectfully submit that
such position is not any more unusual or strange than the assumption that
Article 420 of the Civil Code applies not only to property of the Republic
located within Philippine territory but also to property found outside the
boundaries of the Republic.

It remains to note that under the well-settled doctrine that
heads of Executive Departments are alter egos of the President (Villena v. Secretary of the Interior, 67
Phil. 451 [1939]), and in view of the constitutional power of control exercised
by the President over department heads (Article VII, Section 17, 1987
Constitution), the President herself may carry out the function or duty that is
specifically lodged in the Secretary of the Department of Environment and
Natural Resources (Araneta v. Gatmaitan, 101 Phil. 328 [1957]).  At the very least, the President retains the
power to approve or disapprove the exercise of that function or duty when done
by the Secretary of Environment and Natural Resources.

It is hardly necessary to add that the foregoing analyses and
submissions relate only to the austere question of existence of legal power or
authority.  They have nothing to do with
much-debated questions of wisdom or propriety or relative desirability either
of the proposed disposition itself or of the proposed utilization of the
anticipated proceeds of the property involved. 
These latter types of considerations lie within the sphere of
responsibility of the political departments of government — the Executive and
the Legislative authorities.

For all the foregoing, I vote to dismiss the Petitions for
Prohibition in both G.R. Nos. 92013 and 92047.


[1]
We are orally advised by the Office of the Director of Lands that Act No. 3038
is very much in effect and that the Bureau of Lands continues to date to act
under it.  See also, in this connection,
Sections 2 and 4 of Republic Act No. 477, enacted 9 June 1950 and as last amended by B.P. Blg. 233.  This
statute governs the disposition of lands of the public domain and of the
private domain of the State, including lands previously vested in the United
States Alien Property Custodian and transferred to the Republic of the Philippines.

[2]
Since Act No. 3038 established certain qualifications for applicants for
purchase or lease of land of private domain of the government, it is relevant
to note that Executive Order No. 296, promulgated at a time when the President
was still exercising legislative authority, provides as follows:

“Sec. 1.  The provisions of Republic Act No.
1789, as amended, and of other laws, to the contrary notwith­standing,
the above mentioned properties can be made available for sale, lease or any
other manner of disposition to non-Filipino citizens.” (Underscoring
supplied)


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CONCURRING STATEMENT

PADILLA, J.:

I concur in the decision penned by Mr. Justice Gutierrez, Jr., I only wish to make a few observations which could help in
further clarifying the issues.

Under our tri-partite system of government ordained by the
Constitution, it is Congress that lays down or deter­mines
policies.  The President executes such
policies.  The policies determined by
Congress are embodied in legislative enactments that have to be approved by the
President to become law.  The President,
of course, recommends to Congress the approval of policies but, in the final
analysis, it is Congress that is the policy-determining branch of government.

The judiciary interprets the laws and, in appropriate cases,
determines whether the laws enacted by Congress and approved by the President,
and presidential acts implemen­ting such laws, are in accordance with the
Constitution.

The Roppongi property was acquired by
the Philippine government pursuant to the reparations agreement between the
Philippine and Japanese governments. 
Under such agreement, this property was acquired by the Philippine
government for a specific purpose, namely, to serve as the site of the Philippine Embassy in Tokyo, Japan. 
Consequently, Roppongi is a property of public
dominion and intended for public service, squarely falling within that class of
property under Art. 420 of the Civil Code, which provides:

“Art. 420.  The
following things are property of public dominion:

(1)  x
x x

 (2)  “Those which belong to the State,
without being for public use, and are intended for some public service or for
the development of the national wealth. (339a)”

Public dominion property
intended for public service cannot be alienated unless the property is first
transformed into private property of the state otherwise known as patrimonial
property of the state.
[1] The transformation of public dominion
property to state patrimonial property involves, to my mind, a
policy decision.  It is a policy decision because the treatment
of the property varies according to its classification.  Consequently, it is Congress which can decide
and declare the conversion of Roppongi from a public
dominion property to
a state
patrimonial property.  Congress has made
no such decision or declaration.

Moreover, the sale of
public property (once converted from public dominion to state patrimonial
property) must be approved by Congress, for this again is a matter of policy
(i.e. to keep or dispose of the property). 
Sec. 48, Book 1 of the Administrative Code of 1987 provides:

“SEC. 48.  Official Authorized to Convey
Real Property.  – Whenever
real property of the Government is authorized by law to
be conveyed, the deed of conveyance shall be executed in behalf
of the government by the following:

‘(1) For property belonging to and titled
in the name of the Republic of the Philippines,
by the President, unless the authority therefor
is expressly vested by law in another
officer.

‘(2) For property belonging to the Republic of
the
Philippines but titled in the name of any political subdivi­sion or of any
corporate agency or instrumentality, by the executive head of the agency or
instrumentality.'”
(Underlinings
supplied)

But
the record is bare of any congressional decision or approval to sell Roppongi.  The record
is likewise bare of any congressional authority extended to the President to
sell Roppongi thru public bidding or otherwise.

It is, therefore, clear
that the President cannot sell or order the sale of Roppongi
thru public bidding or other­wise without a prior congressional approval,
first, conver­ting Roppongi from a public dominion
property to a state patrimonial property, and, second, authorizing the
President to sell the same.

ACCORDINGLY, my
vote is to GRANT the petition and to make PERMANENT the temporary restraining
order earlier issued by this Court.


[1]
Art. 422 of the Civil Code provides:

“Property of public
dominion, when no longer intended for public use or public service, shall form
part of the patrimonial property of the State. 
(341a)


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CONCURRING OPINION

SARMIENTO, J.:

The central question, as I see it, is whether or not the
so-called “Roppongi property” has lost its
nature as property of public dominion, and hence, has become patrimonial
property of the State.  I understand that
the parties are agreed that it was property intended for “public
service” within the contemplation of paragraph (2), of Article 430, of the
Civil Code, and accordingly, land of State
dominion, and beyond human commerce.  The
lone issue is in the light or supervening developments, that is, — non-user
thereof by the National Government (for diplomatic purposes) for the last
thirteen years; the issuance of Executive Order No. 296 making it available for
sale to any interested buyer; the promulgation of Republic Act No. 6657, the Comprehensive Agrarian Reform Law,
making available for the program’s financing, State assets sold; the approval
by the President of the recommendation of the investigating committee formed to
study the property’s utilization; and the issuance of Resolution No. 55 of the
Philippine Senate requesting for the deferment of its disposition — it, “Roppongi“, is
still property of the public dominion, and if it is not, how it lost that
character.

When land of the public dominion ceases to be one, or when the
change takes place, is a question our courts have debated early.  In a 1906 decision,[1]
it was held that property of the public dominion, a public plaza in this instance, becomes patrimonial upon use thereof for
purposes other than a plaza.  In a later
case,[2]
this ruling was reiterated.  Likewise, it
has been held that land, originally private property, has become of public
dominion upon its donation to the town and its conversion and use as a public
plaza.[3]
It is notable that under these three cases, the character of the property, and
any change occurring therein, depends on the actual use to which it is
dedicated.[4]

Much later, however, the Court held that “until a formal
declaration on the part of the Government, through the executive department or
the Legislative, to the effect that the land … is no longer needed for
[public] service, for public use or
special industries, [it] continue[s] to be part of the public [dominion], not
available for private expropriation or ownership.”
[5] So also, it was ruled that a political
subdivision (the City of
Cebu in this case) alone may declare (under its charter) a city road abandoned and thereafter, to
dispose of it.
[6]

In holding that there is
“a need for a law or formal declaration to withdraw the Roppongi property from public domain to make it alienable
and
a land for legislative
authority to allow the sale of the property,”
[7] the majority lays stress to the fact
that:  (1) An affirmative act–executive
or legislative–is necessary to reclassify property of the public dominion, and
(2) a legislative decree is required to make it alienable.  It also clears the uncertainties brought
about by earlier interpretations that the nature of property–whether public or
patrimonial–is predicated on the manner it is actually used, or not used, and
in the same breath, repudiates the Government’s position that the continuous
non-use of “Roponggi“, among other
arguments, for “diplomatic purposes”, has turned it into State
patrimonial property.

I feel that this view
corresponds to existing pronouncements of this Court, among other things,
that: 
(1) Property is presumed to
be State property in the absence of any showing to the contrary;[8]
(2) With respect to forest lands, the same continue to be lands of the public
dominion unless and until reclassified by the Executive Branch of the
Government;[9]
and (3) All natural resources, under the Constitution, and subject to
exceptional cases, belong to the State.[10]

I am elated that the
Court has banished previous uncertainties.


[1]
Municipality of Oas v. Roa, 7
Phil. 20 (1906).

[2]
Municipality of Hinunangan v. Director of
Lands, 24 Phil. 124 (1913).
  The property involved here was a fortress.

[3]
Harty v. Municipality of Victoria, 13 Phil. 152 (1909).

[4]
See also II TOLENTINO, CIVIL CODE OF
THE PHILIPPINES 39
(1972 ed.), citing 3 Manresa 111.  See also Province
of Zamboanga del Norte
v. City of Zamboanga,
No. L-24440, March 28, 1968, 22 SCRA 1334.

[5]
Ignacio v.
Director of Lands, 108 Phil. 335, 339 (1960).

[6]
Cebu Oxygen & Acetylene
Co., Inc. vs. Bercilles, No.
L-40474, August 29, 1975, 66 SCRA 481.

[7]
G.R. Nos. 92013 & 92047, 21.

[8]
Salas v. Jarencio, No. L-29788, August 30,
1972
, 46 SCRA 734; Rabuco v. Villegas, No. L-24916, February 28, 1974, 55 SCRA 658.

[9]
See Lianga
Bay Logging Co., Inc. v. Lopez Enage, No. L-30637,
July 16, 1987, 152 SCRA 80.

[10]
CONST., art. XII, sec. 2.