CLERK OF COURT: The Honorable the Chief Justice and the Assoc.

Justices of the Supreme Court of the

(GAVEL)

CJ: Prayers Please.

(Ecumenical Prayer of the Court)

CJ: You may now be seated. Clerk of Court please call the case.

CC: Your Honor scheduled for today’s oral argument is the case entitled HACIENDA LUISTA,
INCORPORATED, Petitioner, LUISITA INDUSTRIAL PARK CORPORATION and RIZAL COMMERCIAL
BANKING SECRETARY NASSER PANGANDAMAN OF THE DEPARTMENT OF AGRARIAN REFORM; ALYANSA
NG MGA MANGGAGAWANG BUIKING NG HACIENDA LUISITA, RENE GALANG. NOEL MALLARI , and JULIO
SUNIGA and his SUPERVISORY GROUP OF THE HACIENDA LUISITA, INC. and WINDSOR ANDAYA,
Respondents.

This is a Petition for Certiorari and Prohibition under Rule 65 with prayer for preliminary injunctive relief,
petitioner Hacienda Luisita, Inc. assails and seeks to set aside PARC resolution No. 2005-32-01 and
Resolution No. 2006-34-01 issued on December 22, 2005 and May 3, 2006, respectively, as well as the
implementing Notice of Coverage dated January 2, 2006.

CJ: Appearances please.

(Appearances of Lawyers of both Petitioner and Respondent)

CJ: In order to expedite the proceedings, I call the Clerk of Court to read the antecedents of this case.

CC: In order to expedite the proceedings, I call the Clerk of Court to read the anrecedents of this cas.

CC: In 1958, the Spanish owners of Compania General de Tabacos de Filipinas (Tabacalera_ sold
Hacienda Luisita and the Central Azucarena de Tarlac, the sugar mill of the hacienda, to the Tarlac
Development Corporation (Tadeco)., then owned and controlled by the Jose Cojuangco Sr. Group. The
Central Bank of the Philippines assisted Tadeco in obtaining a dollar loan from a US bank, Also, the GSIS
extended a PhP 5.911 million loan in favor of Tadeco to pay the perso price component of the sale, with
the condition that “the lots comprising the Hacienda Luisita be subdivided by the applicant-corporation
and sold at cost to the tenants, should there by any, and whenever conditions should exist warranting
such action under the provisions of the Land Tenure Act.” Tadeco allegedly however did not comply with
this condition.

On May 7, 1980, the martial law administration filed a suit before the Manila RTC against Tadeco, et al.,
for them to surrender Hacienda Luisita to the then Ministry of Agrarian Reform (MAR) so that the land
can be distributed to farmers at cost. Responding, Tadeco alleged that Hacienda Luisita does not have
tenants, besides which sugar lands – of which the hacienda consisted – are not covered by existing
agrarian reform legislations. The Manila RTC rendered judgment ordering Tadeco to surrender Hacienda
Luisita to the MAR (Ministry of Agrarian Reform). Therefrom, Tadeco appealed to the CA.

On March 17, 1988, during the administration of President Corzaon Cojuangco Aquino, the Office of the
Solicitor General moved to withdraw the government’s case against Tadeco, et al. The CA dismissed the
case, subject to the PARC’s approval of Tadeco’s proposed stock distribution plan (SDP) in favor of its
farmworkers.

On August 23, 1988, Tadeco organized a spin-off corporation, organized a spin-off corporation, herein
petitioner HLI, as vehicle to facilitate stock acquisition by the farmworkers. For this purpose, Tadeco
conveyed to HLI the agricultural land portion (4,915.75 hectares) and other farm-related properties of
Hacienda LUisita in exchange for HLI shares of stock.

On May 9, 1989, some 93% of the then farmworker-beneficiaries (FWBs) complement of Hacienda
lUisita signified in a referendum their acceptance of the proposed HLI’s Stock Dirstribution Option Plan
(SODP). On may 11, 1989, the SDOA was formally entered into by Tadeco, HLI, and the 5,848 qualified
FWBs. This attested to by then DAR Secretary Philip Juico. The SDOA embodied the basis and mechanics
of HLI’s SDP, which was eventually approved by the PARC after a follow-up referendum cinducted by the
DAR on October 14, 1989, in which 5,117 FWBs out of 5,315 who participated, opted to receive shares in
HLI.

On August 15, 1995, HLI applied for the conversion of 500 hectares of land of the hacienda from
agricultural to industrial use, pursuant to Sec. 65 of RA 6657. The DAR approved the application on
August 14, 1996, subject to payment of three percent (3%) of the gross selling price to the FWBs and to
HLI’s continued compliance with its undertakings under the SDP, among other conditions.
On December 13, 1996, HLI, in exchange for subscription of 12,000,000 shares of stocks of Centennary
Holdings, Inc. (Centennary), ceded 300 hectares of the converted area to the latter. Subsequently,
Centennary sold the entire 300 hectares for PhP 750 million to Luisite Industrial Park Corporation, which
used it in developing an industrial complex. From this area was carved out 2 parcels, for which 2
separate titles were issued in the name of LIPCO. Later, LOPCO transferred these 2 parcels to the Rizal
Commercial Banking Corporation (RCBC) in payment of LIPCO’s Php 431,695,732.10 loan obligations to
RCBC/ LIPCO’s titles were cancelled and new ones were issued to RCBC. Apart from the 500 hectares,
another 80.51 hectares were later detached from Hacienda Luisita and acquired by the government as
part of the Subic-Clark-Tarlac Expressway (SCTEX) complex. Thus, 4,335.75 hectares remained of the
original 4,915 hectares Tadeco ceded to HLI.

Such, was the state of things when two separate petitions reached the DAR in the latter part of 2003.
The first was filed by the Supervisory Group of HLI (Supervisory Group), praying for a renegotiation of
the SDOA, or in the alternative, its revocation. The second petition, praying for the revocation and the
distribution of the lands in the hacienda, was filed by Alyansa ng mga Manggagawang Bukid ng Hacienda
Luisita (AMBALA)/ The DAR then constituted a Special Task Force (STF) to attend to issues relating to the
SDP of HLI. After investigation and evaluation, the STF found that HLI has not complied with its
obligations under RA 6657 despite the implementing of the SDP. On December 22,2005, the PARC issued
the assailed Resolution no. 2005-32-01, recalling/revoking the SDO Plan of Tadeco/HLI. It further
resolved that the subject lands be forthwith placed under the compulsory coverage or mandated land
acquisition scheme of the CARP/

From the foregoing resolution, HLI sought reconsideration. Its motion notwithstanding, HLI also filed a
petition before the Supreme Court in light of what it considers as the DAR’s hasty placing of Hacienda
Luisita under CARP even before PARC could rule or even read the motion for reconsideration. PARC
would eventually deny HLI’s motion for reconsideration via Resolution No. 2006-34-01 dated May 3,
2006.

CJ: Thank you.