Oct 6, 2021

Ayala Land, Inc. & Capitol Citifarms, Inc. v. Castillo et. Al, G.R. No. 178110, January 12, 2016, Rule 130. Sec. 27. Admission of a party.

 

Rule 130. Sec. 27. Admission of a party.

Ayala Land, Inc. & Capitol Citifarms, Inc. v.  Castillo et. Al, G.R. No. 178110, January 12, 2016

SERENO, C.J.

FACTS: Capitol Citifarms, Inc. (CCFI) undertook to obtain DAR approval for CARP exemption or conversion to non-agricultural use of a certain property. CCFI mortgaged the property to Manila Banking Corporation (MBC). MBC was awarded of the property in an auction sale. In a separate case, Bangko Sentral ng Pilipinas became a receiver, to sell the assets of MBC to Ayala Land, Inc. (ALI) BSP requested in behalf of MBC for exemption of the subject property from CARL coverage which the DAR denied and directed the distribution of the land to qualified farmer beneficiaries. Thereafter, DAR deferred the proceeding with the distribution of lands already covered by CARL and CFI was granted the opportunity to present proof that the lands are qualified for exemption or conversion. MBC requested for DAR clearance to sell its landholdings placed under CARL coverage, which includes the subject property. DFA issued the conversion order.

Castillo et. Al (the tenant-farmers of the subjected land) contended that the Conversion Order should be revoked because the sale between CCFI and ALI was illegal and CCFI committed misrepresentation in its application for conversion. That the DAR Order enjoins the conversion of lands directly under a notice of acquisition.

CA held that when DAR had issued a Notice of Acquisition, which served as a perpetual ban on the conversion of the subject lands.

ISSUE: Whether or not letter-request of CCFI for the lifting of the Notice of Acquisition constituted an admission against interest of the fact that the notice was issued

HELD: No. There was no admissible proof presented to support Castillo’s claim that a Notice of Acquisition had been issued. What was attached was a mere photocopy of the Notice of Coverage. The purported Notice of Acquisition was never offered in evidence before the DAR and never became part of the records.

Sec. 26. Admissions of a party. - The act, declaration or omission of a party as to a relevant fact may be given in evidence against him.


The above rule considers admissions against interest as admissible evidence, but does not dispense with the requirement that the admission be offered in evidence. In this case, precisely because Castillo did not raise the issue at all, ALI and CFFI did not have any opportunity to inspect or question the authenticity and due execution of the documents. It would be offensive to reverse the decisions of DAR and the Office of the President based on an alleged document - especially if that document has not been presented, authenticated, or offered in evidence — without giving the other party any opportunity to contradict the purported admission. CCFI and ALI, cannot be bound to whatever inference is being made only now on the purported CCFI letter requesting the lifting of the Notice of Acquisition.

Further, it must be noted that the letter does not identify the document itself, i.e., the Notice of Acquisition, as to date, as to signatory, as to amount tendered. It only asks that the Notice of Acquisition be lifted. It is probable, if this letter is genuine, that the alleged representative of CCFI was referring to the Notice of Coverage, which is an admitted fact, and is precisely the reason why the BSP had to ask for, and was granted, permission by this Court to sell the land.


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