CA orders DAR to pay Hacienda Luisita P28.488B in land compensation

The Court of Appeals Special 12th Division ordered the Department of Agrarian Reform (DAR) to pay Hacienda Luisita P28.488 billion in compensation for 4,500 hectares of land covered by agrarian reform in Tarlac province.

In a decision promulgated on April 25, 2025, the court granted Hacienda Luisita's petition for review against DAR and LBP, removing LANDBANK as a party respondent and clarifying that the payment is chargeable against the Agrarian Reform Fund (ARF) administered by DAR.

The appellate court found that the Tarlac City Regional Trial Court erred in dismissing Hacienda Luisita's petition for judicial determination of just compensation, citing the need to consider reliable data and actual production values.

Hacienda Luisita argued that its valuation should be based on actual production values rather than industry data used by DAR, which led to a significantly lower valuation of P304.033 million plus interest.

The court emphasized that just compensation was not correctly assessed, noting the importance of considering factors such as the nature and character of the land at the time of taking and actual production data.

LANDBANK clarified its role in the case, stating it is custodian of the ARF and awaits resolution on DAR's Motion for Reconsideration filed in May 2025.

DAR may elevate the case to the Supreme Court if the motion is not sustained.