1

G.R. No. 86889. December 4, 1990 LUZ FARMS vs SECRETARY of DAR

LUZ FARMS, petitioner, vs. THE HONORABLE SECRETARY OF THE
DEPARTMENT OF AGRARIAN REFORM, respondent.
This is a petition for prohibition with prayer for restraining orer an!or
pre"iminary an permanent in#$nction against the %onorab"e &ecretary of the
Department of 'grarian Reform for acting witho$t #$risiction in enforcing the assai"e
pro(isions of R.'. No. 66)*, otherwise +nown as the ,omprehensi(e 'grarian Reform
-aw of 1988 an in prom$"gating the G$ie"ines an .roce$re /mp"ementing
.ro$ction an .rofit &haring $ner R.'. No. 66)*, insofar as the same app"y to herein
petitioner, an f$rther from performing an act in (io"ation of the constit$tiona" rights of
the petitioner.
's gathere from the recors, the fact$a" bac+gro$n of this case, is as fo""ows0
1n 2$ne 10, 1988, the .resient of the .hi"ippines appro(e R.'. No. 66)*, which
inc"$es the raising of "i(estoc+, po$"try an swine in its co(erage 3Ro""o, p. 804.
1n 2an$ary 5, 1989, the &ecretary of 'grarian Reform prom$"gate the G$ie"ines
an .roce$res /mp"ementing .ro$ction an .rofit &haring as emboie in &ections 16
an 65 of R.'. No. 66)* 3Ro""o, p. 804.
1n 2an$ary 9, 1989, the &ecretary of 'grarian Reform prom$"gate its R$"es an
Reg$"ations imp"ementing &ection 11 of R.'. No. 66)* 3,ommercia" 7arms4. 3Ro""o, p.
814.
-$8 7arms, petitioner in this case, is a corporation engage in the "i(estoc+ an
po$"try b$siness an together with others in the same b$siness a""ege"y stans to be
a(erse"y affecte by the enforcement of &ection 63b4, &ection 11, &ection 16, &ection
1634 an 1* an &ection 65 of R.'. No. 66)* otherwise +nown as ,omprehensi(e
'grarian Reform -aw an of the G$ie"ines an .roce$res /mp"ementing .ro$ction
an .rofit &haring $ner R.'. No. 66)* prom$"gate on 2an$ary 5, 1989 an the R$"es
an Reg$"ations /mp"ementing &ection 11 thereof as prom$"gate by the D'R on
2an$ary 9, 1989 3Ro""o, pp. 59664.
%ence, this petition praying that aforesai "aws, g$ie"ines an r$"es be ec"are
$nconstit$tiona". :eanwhi"e, it is a"so praye that a writ of pre"iminary in#$nction or
restraining orer be iss$e en#oining p$b"ic responents from enforcing the same,
insofar as they are mae to app"y to -$8 7arms an other "i(estoc+ an po$"try raisers.
This ,o$rt in its Reso"$tion ate 2$"y 4, 1969 reso"(e to eny, among others, -$8
7arms; prayer for the iss$ance of a pre"iminary in#$nction in its :anifestation ate :ay
56, an 61, 1989. 3Ro""o, p. 984.
-ater, howe(er, this ,o$rt in its Reso"$tion ate '$g$st 54, 1989 reso"(e to grant
sai :otion for Reconsieration regaring the in#$ncti(e re"ief, after the fi"ing an
appro(a" by this ,o$rt of an in#$nction bon in the amo$nt of .100,000.00. This ,o$rt
a"so ga(e $e co$rse to the petition an re<$ire the parties to fi"e their respecti(e
memorana 3Ro""o, p. 1194.
The petitioner fi"e its :emoran$m on &eptember 6, 1989 3Ro""o, pp. 16191684.
1n December 55, 1989, the &o"icitor Genera" aopte his ,omment to the petition
as his :emoran$m 3Ro""o, pp. 186918*4.
-$8 7arms <$estions the fo""owing pro(isions of R.'. 66)*, insofar as they are
mae to app"y to it0
3a4 Section 3(b) which inc"$es the =raising of "i(estoc+ 3an po$"try4= in the
efinition of ='gric$"t$ra", 'gric$"t$ra" >nterprise or 'gric$"t$ra" 'cti(ity.=
3b4 Section 11 which efines =commercia" farms= as =pri(ate agric$"t$ra" "ans
e(ote to commercia", "i(estoc+, po$"try an swine raising . . .=
3c4 Section 13 which ca""s $pon petitioner to e?ec$te a pro$ction9sharing p"an.
34 Section 16(d) and 17 which (est on the Department of 'grarian Reform the
a$thority to s$mmari"y etermine the #$st compensation to be pai for "ans co(ere by
the ,omprehensi(e 'grarian Reform -aw.
3e4 Section 32 which spe""s o$t the pro$ction9sharing p"an mentione in &ection 16
@
=. . . 3A4hereby three percent 36B4 of the gross
sa"es from the pro$ction of s$ch "ans are istrib$te
within si?ty 3604 ays of the en of the fisca" year as
compensation to reg$"ar an other farmwor+ers in s$ch
"ans o(er an abo(e the compensation they c$rrent"y
recei(e0 .ro(ie, That these ini(i$a"s or entities rea"i8e
gross sa"es in e?cess of fi(e mi""ion pesos per ann$m
$n"ess the D'R, $pon proper app"ication, etermine a
"ower cei"ing.
2
/n the e(ent that the ini(i$a" or entity rea"i8es a
profit, an aitiona" ten 310B4 of the net profit after ta?
sha"" be istrib$te to sai reg$"ar an other farmwor+ers
within ninety 3904 ays of the en of the fisca" year . . .=
The main iss$e in this petition is the constit$tiona"ity of &ections 63b4, 11, 16 an
65 of R.'. No. 66)* 3the ,omprehensi(e 'grarian Reform -aw of 19884, insofar as the
sai "aw inc"$es the raising of "i(estoc+, po$"try an swine in its co(erage as we"" as
the /mp"ementing R$"es an G$ie"ines prom$"gate in accorance therewith.
The constit$tiona" pro(ision $ner consieration reas as fo""ows0
'RT/,-> C///
??? ??? ???
'GR'R/'N 'ND N'TDR'- R>&1DR,>& R>71R:
&ection 4. The &tate sha"", by "aw, $nerta+e an agrarian reform program fo$ne on
the right of farmers an reg$"ar farmwor+ers, who are "an"ess, to own irect"y or
co""ecti(e"y the "ans they ti"" or, in the case of other farmwor+ers, to recei(e a #$st share
of the fr$its thereof. To this en, the &tate sha"" enco$rage an $nerta+e the #$st
istrib$tion of a"" agric$"t$ra" "ans, s$b#ect to s$ch priorities an reasonab"e retention
"imits as the ,ongress may prescribe, ta+ing into acco$nt eco"ogica", e(e"opmenta", or
e<$ity consierations, an s$b#ect to the payment of #$st compensation. /n etermining
retention "imits, the &tate sha"" respect the rights of sma"" "anowners. The &tate sha""
f$rther pro(ie incenti(es for (o"$ntary "an9sharing.
??? ??? ???=
-$8 7arms contene that it oes not see+ the n$""ification of R.'. 66)* in its
entirety. /n fact, it ac+now"eges the correctness of the ecision of this ,o$rt in the case
of the 'ssociation of &ma"" -anowners in the .hi"ippines, /nc. (s. &ecretary of
'grarian Reform 3G.R. *8*45, 14 2$"y 19894 affirming the constit$tiona"ity of the
,omprehensi(e 'grarian Reform -aw. /t, howe(er, arg$e that ,ongress in enacting the
sai "aw has transcene the manate of the ,onstit$tion, in inc"$ing "an e(ote to
the raising of "i(estoc+, po$"try an swine in its co(erage 3Ro""o, p. 1614. -i(estoc+ or
po$"try raising is not simi"ar to crop or tree farming. -an is not the primary reso$rce in
this $nerta+ing an represents no more than fi(e percent 3)B4 of the tota" in(estment of
commercia" "i(estoc+ an po$"try raisers. /nee, there are many owners of resientia"
"ans a"" o(er the co$ntry who $se a(ai"ab"e space in their resience for commercia"
"i(estoc+ an raising p$rposes, $ner =contract9growing arrangements,= whereby
processing corporations an other commercia" "i(estoc+ an po$"try raisers 3Ro""o, p.
104. -ans s$pport the b$i"ings an other amenities attenant to the raising of anima"s
an birs. The $se of "an is incienta" to b$t not the principa" factor or consieration in
pro$cti(ity in this in$stry. /nc"$ing bac+yar raisers, abo$t 80B of those in
commercia" "i(estoc+ an po$"try pro$ction occ$py fi(e hectares or "ess. The
remaining 50B are most"y corporate farms 3Ro""o, p. 114.
1n the other han, the p$b"ic responent arg$e that "i(estoc+ an po$"try raising
is embrace in the term =agric$"t$re= an the inc"$sion of s$ch enterprise $ner &ection
63b4 of R.'. 66)* is proper. %e cite that Aebster;s /nternationa" Dictionary, &econ
>ition 319)44, efines the fo""owing wors0
='gric$"t$re @ the art or science of c$"ti(ating the gro$n an raising an har(esting
crops, often, inc"$ing a"so, feeing, breeing an management of "i(estoc+, ti""age,
h$sbanry, farming.
/t inc"$es farming, hortic$"t$re, forestry, airying, s$garma+ing . . .
-i(estoc+ @ omestic anima"s $se or raise on a farm, especia""y for profit.
7arm @ a p"ot or tract of "an e(ote to the raising of omestic or other anima"s.=
3Ro""o, pp. 859864.
The petition is impresse with merit.
The <$estion raise is one of constit$tiona" constr$ction. The primary tas+ in
constit$tiona" constr$ction is to ascertain an thereafter ass$re the rea"i8ation of the
p$rpose of the framers in the aoption of the ,onstit$tion 32.:. T$a8on E ,o. (s. -an
Ten$re 'ministration, 61 &,R' 416 F19*0G4.
'scertainment of the meaning of the pro(ision of ,onstit$tion begins with the
"ang$age of the oc$ment itse"f. The wors $se in the ,onstit$tion are to be gi(en their
orinary meaning e?cept where technica" terms are emp"oye in which case the
significance th$s attache to them pre(ai"s 32.:. T$a8on E ,o. (s. -an Ten$re
'ministration, 61 &,R' 416 F19*0G4.
/t is genera""y he" that, in constr$ing constit$tiona" pro(isions which are
ambig$o$s or of o$btf$" meaning, the co$rts may consier the ebates in the
constit$tiona" con(ention as throwing "ight on the intent of the framers of the
,onstit$tion. /t is tr$e that the intent of the con(ention is not contro""ing by itse"f, b$t as
its proceeing was pre"iminary to the aoption by the peop"e of the ,onstit$tion the
$nerstaning of the con(ention as to what was meant by the terms of the constit$tiona"
3
pro(ision which was the s$b#ect of the e"iberation, goes a "ong way towar e?p"aining
the $nerstaning of the peop"e when they ratifie it 3'<$ino, 2r. (. >nri"e, )9 &,R'
186 F19*4G4.
The transcripts of the e"iberations of the ,onstit$tiona" ,ommission of 1986 on
the meaning of the wor =agric$"t$ra",= c"ear"y show that it was ne(er the intention of
the framers of the ,onstit$tion to inc"$e "i(estoc+ an po$"try in$stry in the co(erage
of the constit$tiona""y9manate agrarian reform program of the Go(ernment.
The ,ommittee aopte the efinition of =agric$"t$ra" "an= as efine $ner
&ection 166 of R.'. 6844, as "a$ e(ote to any growth, inc"$ing b$t not "imite to
crop "ans, sa"tbes, fishpons, i"e an abanone "an 3Recor, ,1N,1:, '$g$st *,
1986, Ho". ///, p. 114.
The intention of the ,ommittee is to "imit the app"ication of the wor =agric$"t$re.=
,ommissioner 2amir propose to insert the wor ='R'I->= to isting$ish this +in of
agric$"t$ra" "an from s$ch "ans as commercia" an in$stria" "ans an resientia"
properties beca$se a"" of them fa"" $ner the genera" c"assification of the wor
=agric$"t$ra"=. This proposa", howe(er, was not consiere beca$se the ,ommittee
contemp"ate that agric$"t$ra" "ans are "imite to arab"e an s$itab"e agric$"t$ra" "ans
an therefore, o not inc"$e commercia", in$stria" an resientia" "ans 3Recor,
,1N,1:, '$g$st *, 1986, Ho". ///, p. 604.
/n the interpe""ation, then ,ommissioner Rega"ao 3now a &$preme ,o$rt 2$stice4,
pose se(era" <$estions, among others, <$ote as fo""ows0
??? ??? ???
=-ine 19 refers to gen$ine reform program fo$ne on the primary right of farmers an
farmwor+ers. / woner if it means that "easeho" tenancy is thereby proscribe $ner
this pro(ision beca$se it spea+s of the primary right of farmers an farmwor+ers to own
irect"y or co""ecti(e"y the "ans they ti"". 's a"so mentione by ,ommissioner Taeo,
farmwor+ers inc"$e those who wor+ in piggeries an po$"try pro#ects.
/ was wonering whether / am wrong in my appreciation that if someboy p$ts $p a
piggery or a po$"try pro#ect an for that p$rpose hires farmwor+ers therein, these
farmwor+ers wi"" a$tomatica""y ha(e the right to own e(ent$a""y, irect"y or $"timate"y
or co""ecti(e"y, the "an on which the piggeries an po$"try pro#ects were constr$cte.
3Recor, ,1N,1:, '$g$st 5, 1986, p. 6184.
??? ??? ???
The <$estions were answere an e?p"aine in the statement of then ,ommissioner
Taeo, <$ote as fo""ows0
??? ??? ???
=&a panga"awang +atan$ngan ng Ginoo ay meyo hini +ami nag+a$nawaan.
/pinaaa"am +o +ay ,ommissioner Rega"ao na hini namin ini"agay ang agric$"t$ra"
wor+er sa +aahi"anang +asama rito ang piggery, po$"try at "i(estoc+ wor+ers. 'ng
ini"agay namin ito ay farm wor+er +aya hini +asama ang piggery, po$"try at "i(estoc+
wor+ers 3Recor, ,1N,1:, '$g$st 5, 1986, Ho". //, p. 6514.
/t is e(ient from the foregoing isc$ssion that &ection // of R.'. 66)* which
inc"$es =pri(ate agric$"t$ra" "ans e(ote to commercia" "i(estoc+, po$"try an swine
raising= in the efinition of =commercia" farms= is in(a"i, to the e?tent that the
aforecite agro9in$stria" acti(ities are mae to be co(ere by the agrarian reform
program of the &tate. There is simp"y no reason to inc"$e "i(estoc+ an po$"try "ans in
the co(erage of agrarian reform. 3Ro""o, p. 514.
%ence, there is merit in -$8 7arms; arg$ment that the re<$irement in &ections 16
an 65 of R.'. 66)* irecting =corporate farms= which inc"$e "i(estoc+ an po$"try
raisers to e?ec$te an imp"ement =pro$ction9sharing p"ans= 3pening fina"
reistrib$tion of their "anho"ings4 whereby they are ca""e $pon to istrib$te from
three percent 36B4 of their gross sa"es an ten percent 310B4 of their net profits to their
wor+ers as aitiona" compensation is $nreasonab"e for being confiscatory, an
therefore (io"ati(e of $e process 3Ro""o, p. 514.
/t has been estab"ishe that this ,o$rt wi"" ass$me #$risiction o(er a constit$tiona"
<$estion on"y if it is shown that the essentia" re<$isites of a #$icia" in<$iry into s$ch a
<$estion are first satisfie. Th$s, there m$st be an act$a" case or contro(ersy in(o"(ing a
conf"ict of "ega" rights s$sceptib"e of #$icia" etermination, the constit$tiona" <$estion
m$st ha(e been opport$ne"y raise by the proper party, an the reso"$tion of the
<$estion is $na(oiab"y necessary to the ecision of the case itse"f 3'ssociation of &ma""
-anowners of the .hi"ippines, /nc. (. &ecretary of 'grarian Reform, G.R. *8*45J
'c$na (. 'rroyo, G.R. *9610J .abico (. 2$ico, G.R. *9*44J :anaay (. 2$ico, G.R.
*9***, 14 2$"y 1989, 1*) &,R' 6464.
%owe(er, espite the inhibitions pressing $pon the ,o$rt when confronte with
constit$tiona" iss$es, it wi"" not hesitate to ec"are a "aw or act in(a"i when it is
con(ince that this m$st be one. /n arri(ing at this conc"$sion, its on"y criterion wi"" be
the ,onstit$tion an Go as its conscience gi(es it in the "ight to probe its meaning an
isco(er its p$rpose. .ersona" moti(es an po"itica" consierations are irre"e(ancies that
cannot inf"$ence its ecisions. I"anishment is as ineffect$a" as intimiation, for a"" the
4
awesome power of the ,ongress an >?ec$ti(e, the ,o$rt wi"" not hesitate =to ma+e the
hammer fa"" hea(i"y,= where the acts of these epartments, or of any officia", betray the
peop"e;s wi"" as e?presse in the ,onstit$tion 3'ssociation of &ma"" -anowners of the
.hi"ippines, /nc. (. &ecretary of 'grarian Reform, G.R. *8*45J 'c$na (. 'rroyo, G.R.
*9610J .abico (. 2$ico, G.R. *9*44J :anaay (. 2$ico, G.R. *9***, 14 2$"y 19894.
Th$s, where the "egis"at$re or the e?ec$ti(e acts beyon the scope of its constit$tiona"
powers, it becomes the $ty of the #$iciary to ec"are what the other branches of the
go(ernment ha ass$me to o, as (oi. This is the essence of #$icia" power conferre
by the ,onstit$tion =3/4n one &$preme ,o$rt an in s$ch "ower co$rts as may be
estab"ishe by "aw= 3'rt. H///, &ection 1 of the 196) ,onstit$tionJ 'rtic"e C, &ection /
of the 19*6 ,onstit$tion an which was aopte as part of the 7reeom ,onstit$tion,
an 'rtic"e H///, &ection 1 of the 198* ,onstit$tion4 an which power this ,o$rt has
e?ercise in many instances 3Demetria (. '"ba, 148 &,R' 508 F198*G4.
.R>:/&>& ,1N&/D>R>D, the instant petition is hereby GR'NT>D. &ections
63b4, 11, 16 an 65 of R.'. No. 66)* insofar as the inc"$sion of the raising of "i(estoc+,
po$"try an swine in its co(erage as we"" as the /mp"ementing R$"es an G$ie"ines
prom$"gate in accorance therewith, are hereby D>,-'R>D n$"" an (oi for being
$nconstit$tiona" an the writ of pre"iminary in#$nction iss$e is hereby :'D>
permanent.