4 Brion Separate Concurring and Dissenting Opinion (HLI v. PARC, 5 July 2011).docx - SEPARATE CONCURRING AND DISSENTING OPINION BRION J On the public

4 Brion Separate Concurring and Dissenting Opinion (HLI v. PARC, 5 July 2011).docx

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SEPARATE CONCURRING AND DISSENTING OPINION BRION, J.: On December 22, 2005, the public respondent Presidential Agrarian Reform Council (PARC) issued Resolution No. 2005-32-01. This Resolution revoked the Stock Distribution Plan (SDP) that Tarlac Development Corporation (Tadeco) executed with its spin-off corporation Hacienda Luisita, Inc. (HLI) and its qualified farmworkers-beneficiaries (FWBs), and placed the Hacienda Luisita under the compulsory coverage of the Comprehensive Agrarian Reform Program (CARP). This Resolution set in motion a series of events that led to the present controversy. The Court is mainly called upon to decide the legality of the HLI’s SDP. An underlying issue is whether the PARC has the power and authority to revoke the SDP that it previously approved; if so, whether there is legal basis to revoke it and place the Hacienda Luisita under compulsory coverage of the CARP. The Court has to resolve, too, whether the petitioners-intervenors Luisita Industrial Park Corporation (LIPCO) and Rizal Commercial Banking Corporation (RCBC) legally acquired the converted parcels of land (acquired lands) from HLI. FACTUAL ANTECEDENTS Acquisition of Hacienda Luisita To put this case in its proper context, I begin with a review of HLI’s history and the significant events that ultimately led to the present case. The Hacienda Luisita is a 6,443 hectare parcel of land originally owned by the Compania General de Tabacos de Filipinas (Tabacalera). In 1957, the Spanish owners of Tabacalera decided to sell this land and its sugar mill, Central Azucarera de Tarlac. Jose Cojuangco, Sr. took interest and requested assistance from the Philippine government in raising the necessary funds through: (a) the Central Bank, to obtain a dollar loan from the Manufacturer’s Trust Company (MTC) in New York for the purchase of the sugar mill; and (b) the Government Service Insurance System (GSIS), to obtain a peso loan for the purchase of the Hacienda. The Central Bank used a portion of the country’s dollar reserves as security for Cojuangco’s loan with the MTC on the condition that Cojuangco would acquire Hacienda Luisita for distribution to farmers within 10 years from its acquisition. The GSIS also approved Jose Cojuangco, Sr.’s loan for ₱5.9 million under Resolution No. 3203 (November 25, 1957) which stated in part:
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12. That the lots comprising the Hacienda Luisita shall be subdivided by the applicant-corporation among the tenants who shall pay the cost thereof under reasonable terms and conditions; At the urging of Jose Cojuangco, Sr., GSIS issued Resolution No. 356 (February 5, 1958), amending Resolution No. 3203 in the following manner: That the lots comprising the Hacienda Luisita shall be subdivided by the applicant-corporation and sold at cost to the tenants, should there be any, and whenever conditions should exist warranting such action under the provisions of the Land Tenure Act; Thus, on April 8, 1958, Jose Cojuangco, Sr., through Tadeco, acquired Hacienda Luisita and Central Azucarera de Tarlac.
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