MENDOZA vs.

GERMINO, GR 165676

FACTS:

THE petitioner fileda complaint with the (MTC) of Sta. Rosa, Nueva Ecija against respondent
Narciso Germino for forcible entry, claiming that they were the registered owners of a five-
hectare parcel of land in Soledad, Sta. Rosa, Nueva Ecija (subject property). On his answer,
respondent claimed, among others, that his brother, was the plaintiffs' agricultural lessee and he
merely helped the latter in the cultivation as a member of the immediate farm household. After
several postponements, the plaintiffs filed a motion to remand the case to the Department of
Agrarian Reform Adjudication Board (DARAB), in view of the tenancy issue raised by
respondent Narciso. The MTC issued an order remanding the case to the DARAB for further
proceedings. PARAD found that the respondents were mere usurpers of the subject property,
and ordered the respondents to vacate the subject property, and pay the plaintiffs 500 cavans of
palay as actual damages. On appeal to DARAB, respondent argued that the case should have
been dismissed because the MTC's referral to the DARAB was void with the enactment of
Republic Act (R.A.) No. 6657. DARAB affirmed the PARAD decision. CA, however, set aside
the DARAB decision and remanded the case to the MTC for further proceedings.

ISSUE:

Whether the MTC or the DARAB has jurisdiction over the case.

HELD:

The CA committed no reversible error in setting aside the DARAB decision. While we lament the
lapse of time this forcible entry case has been pending resolution, we are not in a position to
resolve the dispute between the parties since the evidence required in courts is different from
that of administrative agencies.

It is a basic rule that jurisdiction over the subject matter is determined by the allegations in the
complaint. It is determined exclusively by the Constitution and the law. It cannot be conferred by
the voluntary act or agreement of the parties, or acquired through or waived, enlarged or
diminished by their act or omission, nor conferred by the acquiescence of the court. Well to
emphasize, it is neither for the court nor the parties to violate or disregard the rule, this matter
being legislative in character. Under Batas Pambansa Blg. 129, as amended by R.A. No. 7691,
the MTC shall have exclusive original jurisdiction over cases of forcible entry and unlawful
detainer. Furthermore, allegation of tenancy does not divest the MTC of jurisdiction.

Under Section 50 of R.A. No. 6657, as well as Section 34 of Executive Order No. 129-A, the
DARAB has primary and exclusive jurisdiction, both original and appellate, to determine and
adjudicate all agrarian disputes involving the implementation of the Comprehensive Agrarian
Reform Program, and other agrarian laws and their implementing rules and regulations.

An agrarian dispute refers to any controversy relating to, among others, tenancy over lands
devoted to agriculture. For a case to involve an agrarian dispute, the following essential
requisites of an agricultural tenancy relationship must be present: (1) the parties are the
landowner and the tenant; (2) the subject is agricultural land; (3) there is consent; (4) the
purpose is agricultural production; (5) there is personal cultivation; and (6) there is sharing of
harvest or payment of rental.
STANFILCO EMPLOYEES AGRARIAN REFORM BENEFICIARIES MULTI-PURPOSE
COOPERATIVE vs. DOLE PHILIPPINES, INC., GR 154048

FACTS:

On January 29, 1998, petitioner as seller, and respondent as buyer, entered into a Banana
Production and Purchase Agreement (BPPA). The BPPA provided that SEARBEMCO shall sell
exclusively to DOLE, and the latter shall buy from the former, all Cavendish bananas of required
specifications to be planted on the land owned by SEARBEMCO.

On December 11, 2000, DOLE filed a complaint with the RTC against SEARBEMCO, the
spouses Elly and Myrna Abujos (spouses Abujos), and Oribanex Services, Inc. (Oribanex) for
specific performance and damages, with a prayer for the issuance of a writ of preliminary
injunction and of a temporary restraining order. DOLE alleged that SEARBEMCO sold and
delivered to Oribanex, through the spouses Abujos, the bananas rejected by DOLE, in violation
of paragraph 5(p), Article V of the BPPA which limited the sale of rejected bananas for
"domestic non-export consumption." DOLE further alleged that Oribanex is likewise an exporter
of bananas and is its direct competitor.

ISSUE:

Whether or not RTC has jurisdiction over the subject matter of the complaint of DOLE,
considering that the case involves an agrarian dispute within the exclusive jurisdiction of the
DARAB.

HELD:

DOLE’s complaint falls within the jurisdiction of the regular courts, not the DARAB.
SEARBEMCO mainly relies on Section 50 of RA No. 6657 and the characterization of the
controversy as an agrarian dispute or as an agrarian reform matter in contending that the
present controversy falls within the competence of the DARAB and not of the regular courts.

The BPPA, SEARBEMCO claims, is a joint venture and a production, processing and marketing
agreement, as defined under Section 5 (c) (i) and (ii) of DAR AO No. 2-99; hence, any dispute
arising from the BPPA is within the exclusive jurisdiction of the DARAB. SEARBEMCO also
asserts that the parties’ relationship in the present case is not only that of buyer and seller, but
also that of supplier of land covered by the CARP and of manpower on the part of
SEARBEMCO, and supplier of agricultural inputs, financing and technological expertise on the
part of DOLE. Therefore, SEARBEMCO concludes that the BPPA is not an ordinary contract,
but one that involves an agrarian element and, as such, is imbued with public interest.

Additionally, the inclusion of third parties in the complaint supports our declaration that the
present case does not fall under DARAB’s jurisdiction. DARAB’s quasi-judicial powers under
Section 50 of RA No. 6657 may be invoked only when there is prior certification from
the Barangay Agrarian Reform Committee (or BARC) that the dispute has been submitted to it
for mediation and conciliation, without any success of settlement. Since the present dispute
need not be referred to arbitration (including mediation or conciliation) because of the inclusion
of third parties, neither SEARBEMCO nor DOLE will be able to present the requisite BARC
certification that is necessary to invoke DARAB’s jurisdiction; hence, there will be no compliance
with Section 53 of RA No. 6657.