Case Digest: HEIRS OF ANTONIO BOBADILLA v. JAIME CASTILLO

HEIRS OF ANTONIO BOBADILLA v. JAIME CASTILLO

526 SCRA 107 (2007)

If the land is not embraced in Areas for Priority Development/Urban Land Reform Zones, no preemptive right under Presidential Decree No. 1517 can be invoked.

For over 20 years, Antonio Bobadilla, Maria Del Mundo and Ernesto, Danilo, Policarpio, have been leasing portions of a 348 square meter parcel of land located at Gen. Luna Street in Caloocan City on a verbal agreement from owner Virginia Rayo. After August 1991, Rayo offered to sell the land to Bobadilla. Rayo gave Bobadilla two months to decide whether to purchase the land. Having heard nothing from Bobadilla after two months, Rayo sold the parcel of land to Jaime Castillo.

Castillo required Bobadilla, Del Mundo and the Serranos to vacate the land after failing to heed his previous demands to pay a monthly rental of P10 per square meter. Bobadilla instituted a complaint at the Caloocan City Regional Trial Court (RTC) to annul the sale between Rayo and Castillo based on fraud and bad faith. Bobadilla asserted the right of first refusal of their predecessor-in-interest under Presidential Decree No. 1517, otherwise known as the Urban Land Reform Act. As the decree is not self-executing, Proclamation No. 1967 was issued identifying 244 specific sites in Metropolitan Manila as Areas for Priority Development (APD) and Urban Land Reform Zones.

ISSUE:

Whether or not P.D. 1517 and P.D. 1967 can be applied to Bobadilla‘s claim

HELD:

In Caloocan City where the land is situated, only 11 such areas/zones were identified, none of which was found to encompass the subject land. Such finding of fact, as affirmed by the appellate court, is final, conclusive and binding on this Court.

Only legitimate tenants then who have resided for ten years or more on specific parcels of land, and who have built their homes thereon, have the right not to be dispossessed therefrom and the right of first refusal to purchase them under reasonable terms and conditions to be determined by the appropriate government agency.