Republic v Pagadian City Timber Timber | Sept 16, 2008 | G.R. !. 1"#$08 | ac%ura, &. '!ctrine License License agreemen agreements ts is a privileg privilege e granted granted by the State State to a person person,, and are are not contra contracts cts within the purview of the due process and non-impairment of contracts clauses enshrined in the Constitution Filipinos Filipinos have the the right right to a balanced balanced and and healthful healthful ecology, ecology, with with the the correlati correlative ve duty duty to refrain from impairing the environment The essence essence of due process process is simply simply an opport opportunity unity to be heard, to explain explain one’s side, side, or to see a reconsideration of the ruling complained of! Summary The "epublic of the #hilippines and #agadian City Timber Co!, $nc! executed $ndustrial Forest %anagement &greement &greement '$F%&( )o! "-*-++, a uthoriing #CT to utilie, develop, and manage .,***! hectares of land in /amboanga del Sur according to the Comprehensive 0evelopment and %anagement #lan 'C0%#( approved by the 01)"! Some years passed, and in response to several complaints filed by members of the Subanen tribe, the 01)" decided to conduct an evaluation and assessment of the area! The assessment revealed that #CT failed to comply with the C0%# and thus it was recommended that the $F%& should be cancelled! This was done by the 01)", and affirmed by the 2ffice of the #resident, but the C& ruled that the $F%& was a contract that could not be unilaterally cancelled! 3owever, the the Court held that license agreements are not contracts, and #CT was not denied due process! ()CTS 2ct! ., .**4 #etitioner and respondent execute $F%& &ug! .5, .**64 C0%# C0%# is approved approved by 01)" 2ct! 7, .**74 01)" "egion $8 creates team to evaluate and assess $F%& in in response to several complaints filed by members of the Subanen tribe regarding #CT’s failure to implement the C0%#, C0%#, disrespecting the $#’s rights, and constant threat and harassment by armed men! 2ct! 99, .**74 01)" sends letter giving notice of the evaluation to be conducted 2ct! 9:, .**74 01)" 1valuation Team go to $F%& site and conduct assessment, revealing the ff4 - only *7 out of 9,++7 seedling hills survived - some areas planted on belong to the Certificates of Stewardship Contracts Contracts 'CSC( - only . loo-out tower, . bunhouse, . stocroom, . dilapidated billboard poster, . multi-purpose shed, 9 concrete monuments - facilities generally below par - only 97; of the target goal area planted 2ct! 9*, .**74 01)" 1valuation Team Team holds exit conference, explaining findings, and asing Santiago 'the 2perations %anager of #CT( if he had any =) the C& erred in ruling ruling that that the $F%& $F%& is a contract contract and and not a mere privilege privilege granted granted by the State
9! >=) the C& erred in ordaining that #CT can invoe prior resort to arbitration or the option to mend its violations under $F%& R)T*.! ?1S! $F%& is a license agreement under #0 5+6, which defines a license as @a privilege granted by the State to a personA and such is evident in the $F%& itself! Burisprudence also supports such a view 'the various cases mentioned in Alvarez v PICOP Resources, Inc.(! ut even assuming the $F%& could be a contract, the alleged property rights are not absolute! %oreover, all Filipino citiens have the right to a balanced and healthful ecology, which has the correlative duty to refrain from impairing the environment! The 01)" is the instrumentality of the State mandated to actualie the policy, and private rights must yield when they conflict with public policy and common interest! 9! ?1S! Sec! :6 of the $F%& uses the word @mayA which is interpreted to mean that petitioner has the discretion whether or not to give notice and allow the option to remedy the breach! #CT is not entitled to arbitration 'under Sec! :D of $F%&( as the cancellation was based on Sec! 9D of 0&2 )o! *5-+ 'failure to implement C0%# and agreements w= communities and relevant sectors(! "espondents were given the opportunity to contest the findings when the filed the appeal and %" before the 2ffice of the #resident! & party cannot feign denial of due process where he had been afforded the opportunity to present his side! /' The Court of &ppeals 0ecision and "esolution are "1E1"S10 and S1T &S$01 and the 01)" 2rder as well as the "esolutions of the 2ffice of the #resident are "1$)ST&T10 and &FF$"%10
