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Francisco Salazar, petitioner vs. Reynaldo De Leon, Allied Banking Corporation, petitioner vs.

LBP and the


respondent Sec. of the DENR, respondent
G.R. No. 127965 January 20, 2009 G.R. No. 175422, March 13, 2009

FACTS: FACTS

Respondent filed a complaint for the recovery of real Petitioner owned two abutting parcels of land that were
property and damages against petitioner. Respondent compulsory acquired by the DAR pursuant to RA 6675, as
alleged he is the registered owner of a parcel of land which amended. Respondent (LBP) subjected the land for
was tilled by herein petitioner by respondent’s mere valuation and said valuation was upheld by the Provincial
tolerance and petitioner refused to surrender possession Agrarian Reform Adjudicator. However, petitioner filed a
of the land despite demand. The case was brought to the petition for just compensation with the RTC claiming that
RTC which ruled in favor of the herein respondent and said valuation made by the LBP is in question and insisted
against the herein petitioner by applying Article 428, NCC. the Market Data Approach for the valuation of the two
Petitioner filed a Motion for New Trial and Lift Order of parcels of land in which case based on sales and listings of
Default but was denied for lack of merit. He filed an appeal comparable property registered within the vicinity. Said
with the CA essentially invoking the existence of a valuation was adopted by the RTC in its decision.
landlord-tenant relationship between respondent and him Respondent appealed the RTC decision and CA nullified
while at the same time initiated before the DARAB (DAR- the RTC decision and remanded the case to the RTC for
Adjudication Board) a Case #-1380-ISA’94. The DARAB with determining just compensation in strict compliance with
its finding that petitioner was a bona-fide tenant of the provisions of RA 6657, as amended, the DAR AO and
respondent who should be maintained in the peaceful the Rules of Court. Petitioner filed a MR but denied by CA.
possession and cultivation of the subject property which hence the instant case.
petitioner submitted to the CA but CA in turn rejected
petitioner’s arguments. Hence, a petition for Certiorari. ISSUE:

ISSUE: Whether the RTC acting as a special agrarian court will


adopt the Market Data Approach in the valuation of the
Whether or not there is an agrarian dispute between two parcels of land.
petitioner and respondent.
HELD:
HELD:
The court refused to accept the MDA as method of
The instant case undeniably involves a controversy valuation. The court instead adopted Section 17 of RA
involving an adverse relationship between a landlord and 6657, as amended and DAO No. 6. Hence petition is
his tenant. The reason for petitioner’s refusal to surrender denied and the case was remanded to the RTC.
possession of the subject property to the respondent is
that petitioner is allegedly his tenant, and has a right that
is protected under the agrarian reform laws, a claim which
respondent denies. There is, thus, a dispute as to the
nature of the relationship between respondent and
petitioner. The Court concluded that there is substantial
evidence to establish the existence of a tenancy
relationship between petitioner and respondent. The
receipts presented by petitioner covering rental payments
to respondent for the subject property constitute concrete
evidence of tenurial relations between them. Hence,
petition is granted.

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