G.R. No. 240047 - AUTHORITY OF THE FREEPORT AREA OF BATAAN, VS. F.F. CRUZ & CO., INC..DECISION - Supreme Court E-Library

Ruling

ACCORDINGLY, AFAB respectfully asks the Honorable Court that after due proceedings, it issues an Order: Declaring OCT 234 and the corresponding TCTs T-144045, T-144046, T-144047, T-144225 and T-144226 as NULL and VOID and ordering FFCCI to reconvey and surrender possession over the subject property to AFAB. Ordering the Bataan Register of Deeds to cancel T-144045, T-144046, T-144047, T-144225 and T-144226. Other equitable reliefs are likewise asked for. [15] Instead of filing an Answer, FFCCI filed a Motion to Dismiss [16] the Amended Complaint based on the following grounds: I. The AMENDED COMPLAINT FAILS TO STATE A CAUSE OF ACTION IN THAT AFAB FAILS TO IDENTIFY ITS LEGAL RIGHT, WHICH WAS VIOLATED, AND THE CORRESPONDING OBLIGATION ON THE PART OF FFCCI, WHICH IT FAILED TO PERFORM. REPUBLIC ACT NO. 5490, WHICH SERVES AS THE BASIS OF AFAB'S CLAIMS OVER FFCCI'S PROPERTIES, IS BEREFT OF CLEAR DEMARCATIONS TO CLEARLY DELINEATE, IDENTIFY, AND DISTINGUISH WHAT AFAB CLAIMS IS ITS TERRITORY. THE AMENDED COMPLAINT STATES NEITHER AFAB'S LEGAL BASES FOR AN ACTION TO ANNUL FFCCI'S TITLES NOR ASK FOR REVERSION OF THE PROPERTIES COVERED BY THEM. II. THE COMPLAINT IS IN THE NATURE OF EXPROPRIATION, WHICH AFAB IS NOT EMPOWERED TO UNDERTAKE. III. FFCCI, A BUYER IN GOOD FAITH, IS ENTITLED TO THE PROTECTION OF THE LAW. ITS TORRENS TITLE IS INDEFEASIBLE. IV. BASED ON THE PRINCIPLE OF RES JUDICATA , FFCCI, A HOLDER OF A TORRENS TITLE, IS ENTITLED TO THE GENERALLY CONCLUSIVE EVIDENCE OF OWNERSHIP OF THE LAND REFERRED TO IN ITS TORRENS TITLES. V. THE FILING OF THE COMPLAINT AND AMENDED COMPLAINT IS BARRED BY PRESCRIPTION AND LACHES. VI. THE AMENDED COMPLAINT WAS FILED WITHOUT THE CORRESPONDING REQUISITE FILING FEES PAID IN FULL. [17] AFAB filed its Comment/Opposition [18] to the Motion to Dismiss alleging that its Amended Complaint sufficiently stated a cause of action. Contrary to FFCCI's claim, it adequately provided the demarcations of its territory through the copies of Proclamation Nos. 899 and 939 attached to the Amended Complaint. The Amended Complaint also cannot be considered as a complaint for expropriation because the Subject Properties involved are not private lands but lands of the public domain. It further argued that FFCCI cannot be considered a buyer in good faith with protection under the Torrens system. The Transfer Certificates of Title (TCTs) covering the Subject Properties were issued contrary to law and it is settled that ignorance of the law excuses no one. The protection granted to registered landowners cannot be applied if the lands involved belong to the public domain. Finally, it was claimed that prescription and laches cannot lie against the State. AFAB, as a government instrumentality, is likewise exempt from paying legal fees pursuant to Section 22, Rule 141 of the Rules of Court. FFCCI filed a Reply [19] to the Comment/Opposition insisting that the Amended Complaint failed to state a cause of action since the territorial boundaries of the