Haystack: Santos v. Moreno (GR L-15829, 4 December 1967)

Santos v. Moreno
[G.R. No. L-15829. December 4, 1967.]
En Banc, Bengzon JP (J): 9 concur

Facts: The Zobel family of Spain formerly owned a vast track of marshland in Macabebe, Pampanga called Hacienda San Esteban, which was administered and managed by the Ayala y Cia. From 1860 to 1924 Ayala y Cia., devoted the hacienda to the planting and cultivation of nipa palms from which it gathered nipa sap or "tuba". It operated a distillery plant in barrio San Esteban to turn nipa tuba into potable alcohol which was in turn manufactured into liquor. Accessibility through the nipa palms deep into the hacienda posed as a problem; thus Ayala y Cia dug canals leading towards the hacienda's interior where most of them interlinked with each other. The canals facilitated the gathering of tuba and the guarding and patrolling of the hacienda by security guards called "arundines". By the gradual process of erosion these canals acquired the characteristics and dimensions of rivers.

In 1924 Ayala y Cia shifted from the business of alcohol production to bangus culture. It converted Hacienda San Esteban from a forest of nipa groves to a web of fishponds. Sometime in 1925 or 1926 Ayala y Cia., sold a portion of Hacienda San Esteban to Roman Santos who also transformed the swamp land into a fishpond. In so doing, he closed and built dikes across Sapang Malauling Maragul, Quiñorang Silab, Pepangebunan, Bulacus, Nigui and Nasi. The closing of the man-made canals in Hacienda San Esteban drew complaints from residents of the surrounding communities. Claiming that the closing of the canals caused floods during the rainy season, and that it deprived them of their means of transportation and fishing grounds, said residents demanded re-opening of those canals. Subsequently, Mayor Lazaro Yambao of Macabebe, accompanied by policemen and some residents went to Hacienda San Esteban and opened the closure dikes at Sapang Malauling Maragul, Nigui and Quiñorang Silab. Whereupon, Roman Santos filed Civil Case 4488 in the CFI Pampanga which preliminarily enjoined Mayor Yambao and others from demolishing the dikes across the canals. The municipal officials of Macabebe countered by filing a complaint (Civil Case 4527) in the same court. The CFI Pampanga rendered judgment in both cases against Roman Santos who immediately elevated the case to the Supreme Court.

In the meantime, the Secretary of Commerce and Communications conducted his own investigation, found and declared on 8 November 1930 that the streams closed by Roman Santos were natural, floatable and navigable and were utilized by the public for transportation since time immemorial. However, on 8 May 1931 the said official revoked his decision and declared the streams in question privately owned because they were artificially constructed. Subsequently, upon authority granted under Act 3982 the Secretary of Commerce and Communications entered into a contract with Roman Santos whereby the former recognized the private ownership of 6 streams and the latter turned over for public use 2 artificial canals and bound himself to maintain them in navigable state. The Provincial Board of Pampanga and the municipal councils of Macabebe and Masantol objected to the contract. However, the Secretary of Justice, in his opinion dated 6 March 1934, upheld its legality. Roman Santos withdrew his appeals in the Supreme Court.

On 25 February 1935 the municipality of Macabebe and the Zobel family executed an agreement whereby they recognized the nature of the streams mentioned in Panopio's report as public or private, depending on the findings in said report. This agreement was approved by the Secretary of Public Works and Communications on 27 February1935 and confirmed the next day by the municipal council of Macabebe under Resolution 36. On 12 June 1935 however, the Secretary of Justice issued an opinion holding that the contract executed by the Zobel family and the municipality of Macabebe has no validity. Still, despite the ruling of the Secretary of Justice, the streams in question remained closed.

In 1939 administrative investigations were again conducted by various agencies of the Executive branch of our government culminating in an order of President Manuel Quezon immediately before the national elections in 1941 requiring the opening of Sapang Macanduling Maragul, Macabacle, Balbaro and Cansusu. Said streams were again closed in 1942 allegedly upon order of President Quezon.

Roman Santos acquired in 1940 from the Zobel family a larger portion of Hacienda San Esteban wherein are located 25 streams which were closed by Ayala y Cia. 18 years later or in 1950, Congress enacted RA 2056. Thereafter, on 15 August 1958, Senator de la Rosa requested in writing the Secretary of Public Works and Communications to proceed in pursuance of Republic Act No. 2056 against fishpond owners in the province of Pampanga who have closed rivers and appropriated them as fishponds without color of title. On the same day, Benigno Musni and other residents in the vicinity of Hacienda San Esteban petitioned the Secretary of Public Works and Communications to open the following streams: Balbaro, Batasan Matua, Bunga, Cansusu, Macabacle, Macanduling Maragul, Mariablus Malate, Matalabang Maisac, Nigui, Quiñorang Silab, Sapang Maragul and Sepung Bato. On 20 October 1958 Musni and his co-petitioners amended their petition to include other streams: Balbaro, Balili, Banawa, Batasan Matua, Bato, Bengco, Bunga, Butabuta, Camastiles, Cansusu, Cela, Don Timpo, Mabalanga, Mabutol, Macabacle, Macabacle qng. Iba, Macanduling Maragul, Malauli, Magasawa, Mariablus Malate, Masamaral, Matalabang Maisac, Mariablus, 3 Nigui, Pita, Quiñorang Silab, Sapang Maragul, Sepung Bato, Sinag and Tumbong. On March 2, 4, 10, 30 and 31, and 1 April 1959, the Secretary of Public Works and Communications rendered his decisions ordering the opening and restoration of the channel of all the streams except Sapang Malauling Maragul, Quiñorang Silab, Nigui, Pepangebonan, Nasi and Bulacus, within 30 days.

On 29 April 1959, after receipt of the Secretary's decision, Roman Santos filed a petition with the CFI Manila for injunction against the Secretary of Public Works and Communications and Julian C. Cargullo. As prayed for, preliminary injunction was granted on 8 May 1959. On April 29 and 12 June 1959, Roman Santos received the decision of the Secretary of Public Works and Communications dated March 10 and March 30, March 31, and 1 April 1959. Consequently, on June 24, 1959 he asked the court to cite in contempt Secretary Florencio Moreno, Undersecretary M. D. Bautista and Julian Cargullo for issuing and serving upon him the said decisions despite the existence of the preliminary injunction. The Cou rt however ruled that Secretary Moreno, Undersecretary Bautista and Cargullo acted in good faith, and hence were merely "admonished to desist from any and further action in this Court, with the stern warning, however, that a repetition of the acts complained of shall be dealt with severely." On 18 July 1959 the trial court declared all the streams under litigation private, and made the writ of preliminary injunction permanent. The Secretary of Public Works and Communications and Julian Cargullo appealed to the Supreme Couurt from the order of 17 July 1959 issued in connection with Roman Santos' motion for contempt and from the decision of the lower court on the merits of the case.

The Supreme Court affirmed the decision appealed from, except as to Sapang Cansusu which was declared public and thus as to which the judgment of the lower court was reversed. No costs.

1. Motion for reconsideration not required as a condition precedent to judicial relief in RA 2056; Congress intend decision of Secretary of Public Works and Communication to be final and executory subject to a timely review by the courts
RA 2056 does not require the filing of a motion for reconsideration as a condition precedent to judicial relief. From the context of the law, the intention of the legislators to forego a motion for reconsideration manifests itself clearly. RA 2056 underscores the urgency and summary nature of the proceedings authorized thereunder. Thus in Section 2 thereof the Secretary of Public Works and Communications under pain of criminal liability is duty bound to terminate the proceedings and render his decision within a period not exceeding 90 days from the filing of the complaint. Under the same section, the party respondent concerned is given not more than 30 days within which to comply with the decision of the Secretary of Public Works and Communications, otherwise the removal of the dams would be done by the Government at the expense of said party. Congress has precisely provided for a speedy and a most expeditious proceeding for the removal of illegal obstructions to rivers and on the basis of such a provision it would be preposterous to conclude that it had in mind to require a party to file a motion for reconsideration an additional proceeding which would certainly lengthen the time towards the final settlement of existing controversies. The logical conclusion is that Congress intended the decision of the Secretary of Public Works and Communications to be final and executory subject to a timely review by the courts without going through formal and time consuming preliminaries.

2. Question of Constitutionality rightly aired before a competent court; not within competence of Secretary of Public Works and Communications
The petitioner assailed the constitutionality of RA 2056 and the jurisdiction of the Secretary of Public Works and Communications to order the demolition of dams across rivers or streams. Those questions are not within the competence of said Secretary to decide upon a motion for reconsideration. They are purely legal questions, not administrative in nature, and should properly be aired before a competent court as was rightly done by the petitioner.

3. Appeal of the decision of the Secretary to the President dispensed with as Secretary is alter-ego of the President
As to the failure of Roman Santos to appeal from the decision of the Secretary of Public Works and Communications to the President of the Philippines, suffice it to state that such appeal could be dispensed with because said Secretary is the alter ego of the President. The actions of the former are presumed to have the implied sanction of the latter.

4. Action correctly filed with the CFI Manila; Purpose is to review the decision of the Secretary, even if the resolution of controversy rests in the ownership of the streams; Section 1 of Rule 5, not section 3, is controlling
The mere fact that the resolution of the controversy would wholly rest on the ownership of the streams involved would not necessarily classify it as a real action. The purpose of the suit is to review the decisions of the Secretary of Public Works and Communications, to enjoin him from enforcing them and to prevent him from making and issuing similar decisions concerning the streams in Hacienda San Esteban. The acts of the Secretary of Public Works are Communications are the object of the litigation, hence, the suit ought to be filed in the CFI whose territorial jurisdiction encompasses the place where the Secretary is found or is holding office. For the rule is that outside its territorial limits, the court has no power to enforce its orders. Section 3 of Rule 5 of the Rules of Court does not apply to determine venue of this action, Section of the same rule applies. Section 1 provides that “civil actions in CFIs may be commenced and tried where the defendant or any of the defendants resides or may be found, or where the plaintiff or any of the plaintiffs resides, at the election of the plaintiff." Thus, in the present case, the petition for injunction was correctly filed in the CFI Manila as the Secretary of Public Works and Communications and Julian Cargullo are found and hold office in the City of Manila.

5. Review of Secretary’s decision by the court; inquiry limited to evidence presented during the administrative proceedings
Whether the action instituted in the CFI be for mandamus, injunction or certiorari is not very material. In reviewing the decision of the Secretary of Public Works and Communications, the CFI shall confine its inquiry to the evidence presented during the administrative proceedings. Evidence not presented therein shall not be admitted and considered by the trial court. As held previously by the Court, "the findings of the Secretary can not be enervated by new evidence not laid before him, for that would be tantamount to holding a new investigation, and to substitute for the discretion and judgment of the Secretary the discretion and judgment of the court, to whom the statute had not entrusted the case. It is immaterial that the action should be one for prohibition or injunction and not one for certiorari; in either event the case must be resolved upon the evidence submitted to the Secretary, since a judicial review of executive decisions does not import a trial de novo, but only an ascertainment of whether the executive findings are not in violation of the Constitution or of the laws, and are free from fraud or imposition, and whether they find reasonable support in the evidence.” Thus, it was an error for the lower court to conduct a trial de novo.

6. RA 2056 is not unconstitutional
The Court has held in Lovina v. Moreno that said law is constitutional. It cannot be held that the law is constitutional but applied unconstitutionally as the petitioner’s dikes were demolished through an administrative, not judicial, proceeding. Such conclusion amount in effect to declaring the law unconstitutional, stated inversely. Note that the law provides for an expeditious administrative process to determine whether or not a dam or dike should be declared a public nuisance and ordered demolished. And to say that such an administrative process, when put to operation, is unconstitutional is tantamount to saying that the law itself violates the Constitution.

7. RA 2056 applies to 2 types of bodies of water
RA 2056 applies to two types of bodies of water, namely, (1) public navigable rivers, streams, coastal waters, waters or waterways and (b) areas declared as communal fishing grounds.

8. Building of dams, dikes or other works on navigable public waters a public nuisance
Section 1 of RA 2056 law provides that “the construction or building of dams, dikes or any other works which encroaches into any public navigable river, stream, coastal waters and any other navigable public waters or waterways as well as the construction or building of dams, dikes or any other works in areas declared as communal fishing grounds, shall be ordered removed as public nuisances or as prohibited constructions as herein provided.”

9. Montano v. Insular Government (marchlands not susceptible to appropriation by occupation) not applicable
The doctrine in Montano vs. Insular Government, that a marshland which is inundated by the rise of tides belong to the State and is not susceptible to appropriation by occupation, has no application in the present ccase inasmuch as in said case the land subject matter of the litigation was not yet titled and precisely Isabelo Montano sought title thereon on the strength of 10 years' occupation pursuant to paragraph 6, section 5 of Act 926 of the Philippine Commission. Whereas, Hacienda San Esteban is titled land and private ownership thereof by Ayala y Cia, has been recognized by the King of Spain and later by the Philippine Government when the same was registered under Act 496.

10. Injunction proper if person constructs a dam across a public canal, which is situated within a public land
"No private person has a right to usurp possession of a watercourse, branch of a river, or lake of the public domain and use, unless it shall have been proved that he constructed the same within property of his exclusive ownership, and such usurpation constitutes a violation of the legal provisions which explicitly exclude such waterways from the exclusive use or possession of a private party." (Bautista v. Alarcon, 23 Phil 631) Inversely, and as indicated in said case, a private person may take possession of a watercourse if he constructed the same within his property.

11. Public and Private ownership under the Spanish Civil Code of 1889; Spanish Law of Waters of 1866
As to Public Ownership; Articles 339 of the Spanish Civil Code of 1889 provides that property of public ownership includes “that devoted to public use, such as roads, canals, rivers, torrents, ports and bridges constructed by the State, riverbanks, shores, roadsteads, and that of a similar character." Article 407 of the same Code provides that “(1) Rivers and their natural channels; (2) Continuous or intermittent waters from springs or brooks running in then natural channels and the channels themselves; (3) Waters rising continuously or intermittently on lands of public; (4) Lakes and ponds formed by nature on public lands, and their beds; (5) Rain waters running through ravines or sand beds, the channels of which are of public ownership; (6) Subterranean waters on public lands; (7) Waters found within the zone of operation of public works, even though constructed under contract; Waters which flow continuously or intermittently from lands belonging to private persons, to the State, to provinces, or to towns from the moment they leave such lands; and (9) The waste waters of fountains, sewers, and public institutions” are of public ownership. Further, Article 72 of the Spanish Law of Waters (8 August 1866) provides that “the water-beds on public land, of creeks through which spring waters run, are a part of the public domain. The natural water-beds or channels of rivers are also part of the public domain."

As to Private Ownership; Article 408 of the Spanish Civil Code of 1889 provides that “(1) Waters, either continuous or intermittent rising on private estates, while they run through them; (2) Lakes and ponds and their beds when formed by nature on such estates; (3) Subterranean waters found therein; (4) Rain waters falling thereon as long as they remain within their boundaries; and (5) The channels of flowing streams, continuous or intermittent formed by rain water, and those of brooks crossing estates which are not of public ownership” are of private ownership. Further, Article 71 of the Spanish Law of Waters (8 August 1866) provides that “the water-beds of all creeks belong to the owners of the estates or lands over which they flow."

Further, "the water, bed, banks, and floodgates of a ditch or aqueduct are deemed to be an integral part of the estate or building for which the waters are intended. The owners of estates through or along the boundaries of which the aqueduct passes can assert no ownership over it, nor any right to make use of its beds or banks, unless they base their claim on title deed which specify the right or the ownership claimed."

12. Character of canals based on the estate over which they flow; Canals of private ownership
Pursuant to Article 71 of the Spanish Law of Waters of 3 August 1866, and Article 408(5) of the Spanish Civil Code, channels of creeks and brooks belong to the owners of estates over which they flow. The channels, therefore, of the streams in question which may be classified as creeks, belong to the owners of Hacienda San Esteban. Further, the said streams, considered as canals, of which they originally were, are of private ownership in contemplation of Article 339(1) of the Spanish Civil Code. Canals constructed by private persons within private lands and devoted exclusively for private use must be of private ownership. The streams, except for Sapang Cansusu, being artificial and devoted exclusively for the use of the hacienda owner and his personnel, are of private ownership and hence, the dams across them should not be ordered demolished as public nuisances.

13. Mercado v. Municipal President of Macabebe not the same as present case
In Mercado v. Municipal President of Macabebe, the Batasan-Limasan creek was originally dug by the estate owner who, subsequently allowed said creek to be used by the public for navigation and fishing purposes for a period of 22 years. The creek could have been of private ownership had not its builder lost it by prescription. Applying the principle therein enunciated to the present case, the conclusion would be inevitably in favor of private ownership, considering that the owners of Hacienda San Esteban held them for their exclusive use and prohibited the public from using them.

14. Mercado case cannot be applied in the present case due to differences in factual premises
In his opinion of 12 June 1935, the Secretary of Justice answered in the negative the query of the Secretary of Public Works and Communications whether the latter can declare of private ownership those streams which "were dug up artificially", because it was assumed that the streams were used "by the public as fishing ground and in transporting their commerce in bancas or in small crafts without the objection of the parties who dug" them (applying Mercado v. Municipality of Macabebe). However, the facts, as then found by the Bureau of Public Work, do not support the factual premise that the streams in question were used by the public "without the objection of the parties who dug" them. The Court cannot therefore take as controlling in determining the merits of this case the factual premises and the legal conclusion contained in said opinion.

15. Case different from cases involving dammed natural navigational streams
The present case should be differentiated from those cases where the Court held illegal the closing and/or appropriation of rivers or streams by owners of estates through which they flow for purposes of converting them into fishponds or other works. In those cases, the watercourses which were dammed were natural navigable streams and used habitually by the public for a long time as a means of navigation. Consequently, they belong to the public domain either as rivers pursuant to Article 407(1) of the Spanish Civil Code of 1889 or as property devoted to public use under Article 339 of the same Code. Whereas, the streams involved in the present case were artificially made and denoted to the exclusive use of the hacienda owner.

16. Sapang Cansusu is a natural stream, a public stream, which belongs to the public domain
Sapang Cansusu, being a natural stream and a continuation of the Cansusu River, admittedly a public stream, belongs to the public domain. Its closure therefore by the predecessors of Roman Santos was illegal.

17. Case involving petition for the opening of Sapang Malauling, and other streams, closed; Parties thereto excluded in present case
The petition for the opening of Sapang Malauling Maragul, Quiñorang Silab, Nigui, Pepangebunan, Nasi and Bulacus was dismissed by the Secretary of Public Works and Communications and the case considered closed. The said administrative decision has not been questioned in this appeal by either party. Hence, they are deemed excluded herein.

18. Lower court made no finding of contempt to be review by the Supreme Court
With respect to the issue of contempt of court on the part of the Secretary of Public Works and Communications and Julian Cargullo for the alleged issuance of administrative decisions ordering demolition of dikes involved in this case after the writ of injunction was granted and served, suffice it to state that the lower court made no finding of contempt of court. Necessarily, there is no conviction for contempt reviewable by this Court and any discussion on the matter would be academic.

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