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39 Gabrito v. Court of Appeals, G.R. No. 77976, 24 November1988

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GABRITO V. COURT OF APPEALS, G.R. NO. 77976, 24 NOVEMBER1988.

FACTS:

The spouses Roberto Tan and Benita Ching-Tan filed a complaint against defendants
Maximo Gabrito, et al., alleging that they are the possessors and legal owners of the
property situated in Olongapo City. The defendants are leasing portions of this parcel of
land, each paying the corresponding monthly rentals due thereon. On the leased portion,
the defendants constructed buildings and have allowed other persons to sublease the same
for commercial purposes. The spouses Tan wanted to construct a residential house on the
subject property; and so, the spouses Tan notified the defendants and gave defendants
three (3) months to vacate the premises and remove the structures and improvements
which defendants had constructed thereon.

Defendants requested for an extension of time within which to vacate, which was granted
by the spouses Tan. However, from that time on, defendants also stopped paying monthly
rentals due on the land they leased. Hence, the Tans filed an action for unlawful detainer
with damages against Gabrito, et al.

In answer to the complaint, Gabrito, et al. denied the material allegations of the complaint.
In a later development, they filed a supplemental memorandum submitting the decision of
the Bureau of Lands dated June 7, 1987. In view thereof, they maintain that they are the
lawful owners of the buildings and the legal possessors of subject land and that the records
of the court proceedings show the pendency of the administrative protest before the
Bureau of Lands between the same litigating parties.

Respondents countered that the decision of the Bureau of Lands granting preferential right
to the petitioners (Gabito et. al.) to apply for the subject parcel of land is still on
appeal before the Department of Natural Resources. Hence, said decision, which is not yet
final, cannot affect the outcome of this case because the authority given to the land
department over the disposition of public land does not exclude the courts from their
jurisdiction over possessory actions, the character of the land notwithstanding.

ISSUE:

Whether or not private respondents’ contention is correct.

RULING:

YES. The contention of private respondents is well taken.

This issue has long been laid to rest by this Court. As early as the case of Pitarque v.
Sorilla this Court ruled that:
The vesting of the Lands Department with authority to administer, dispose of,
and alienate public lands must not be understood as depriving the other
branches of the Government of the exercise of their respective functions of
powers thereon, such as the authority to stop disorders and quell breaches of
peace by the police and the authority on the part of the courts to take
jurisdiction over possessory actions arising therefrom not involving, directly or
indirectly, alienation and disposition.

On the other hand, the application of the principle of exhaustion of administrative remedies
as a condition precedent to the filing of a juridical action is confined to controversies
arising out of the disposition of public lands, alienation of public lands or to the
determination of the respective rights of rival claimants to public lands and not to
possessory actions involving public lands which are limited to the determination of who
has the actual, physical possession or occupation of the land in question.

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