Highlights of the Hacienda Luisita decision
The court’s decision lifts the temporary restraining order holding the distribution of Hacienda Luisita land to beneficiaries.
In the decision, the high court:
AFFIRMED the Presidential Agrarian Reform Council (PARC) Resolutions No. 2005-32-01 dated Dec. 22, 2005, and No. 2006-34-01 dated May 3, 2006, which placed the lands subject of Hacienda Luisita Inc.’s stock distribution plan under compulsory coverage of the mandated land acquisition scheme of the Comprehensive Agrarian Reform Program, provided that all salaries, benefits, percentage of the gross sales of the production of the agricultural lands, the 3-percent share in the proceeds of the sale of the converted lands and the Subic-Clark-Tarlac Expressway lot and the homelots already received by the more than 10,000 farmworker-beneficiaries (FWBs) are “respected with no obligation to refund or return them.” The 6,296 original FWBs will also forfeit and relinquish their rights over the HLI shares of stock issued to them in favor of HLI, while the 4,206 non-qualified FWBs shall remain as stockholders of HLI.
Distribution of land to 6,296 farmer-worker beneficiaries
ORDERED the Department of Agrarian Reform to segregate from the 4,915.75-hectare HLI agricultural land, which is the subject of PARC’s SDP-approving Resolution No. 89-12-2, the 500-ha lot subject of the Aug. 14, l996, Conversion Order and the 80.51-ha lot sold to the government as part of the SCTEx complex.
After the segregation process, the remaining area (4,335.24 ha) shall be turned over to DAR for immediate land distribution to the original 6,296 FWBs or their successors-in-interest which will be identified by the DAR. Meanwhile, the 4,206 non-qualified FWBs are not entitled to any share in the land to be distributed by DAR.
P1.33-B compensation to farmer-worker beneficiaries
DIRECTED HLI to pay the original 6,296 FWBs:
– The consideration of P500 million received by HLI from Luisita Realty Inc. for the sale of 200 ha out of the 500 ha covered by the August 14, 1996, Conversion Order;
– The consideration of P750 million received by its owned subsidiary, Centennary Holdings Inc., for the sale of the remaining 300 ha of the aforementioned 500-ha lot to Luisita Industrial Park Corporation;
– The price of P80.512 million paid by the government through the Bases Conversion Development Authority for the sale of the 80.51-ha lot used for the construction of the SCTEx road network.
From the resulting total amount of P1.33 billion shall be deducted the following:
– The 3 percent of the proceeds of said transfers that were paid to the FWBs;
– The taxes and expenses relating to the transfer of titles to the transferees;
– Expenditures incurred by HLI and Centennary Holdings, Inc. for “legitimate corporate purposes.”
The court also ordered DAR to hire “a reputable accounting firm” approved by the parties to audit the books of HLI and Centennary Holdings Inc. to determine if the P1.33-billion proceeds of the sale of the three aforementioned lots were actually used or spent for legitimate corporate purposes. Any unspent or unused balance and any disallowed expenditures as determined by the audit shall be distributed to the 6,296 original FWBs.
RULED that HLI is entitled to just compensation for the agricultural land that will be transferred to DAR, and ordered DAR and Land Bank of the Philippines to determine the compensation due to HLI.
