Chavez v PEA

FACTS: From the time of Marcos until Estrada, portions of Manila Bay were being reclaimed. A law was passed creating
the Public Estate Authority which was granted with the power to transfer reclaimed lands. Now in this case, PEA entered
into a Joint Venture Agreement with AMARI, a private corporation. Under the Joint Venture Agreement between AMARI
and PEA, several hectares of reclaimed lands comprising the Freedom Islands and several portions of submerged areas of
Manila Bay were going to be transferred to AMARI. Petitioner Chavez filed case for mandamus, a writ of preliminary
injunction and a TRO against the sale of reclaimed lands by PEA to AMARI and from implementing the JVA. Following
these events, under President Estradas admin, PEA and AMARI entered into an Amended JVA and Mr. Chaves claim that
the contract is null and void.
ISSUE: Whether PEA could dispose of reclaimed lands
RULING: Yes. The Court ruled that in order for PEA to sell its reclaimed foreshore and submerged alienable lands of the
public domain, there must be a legislative authority empowering PEA to sell these lands. Without such authority, could not
sell but only lease its reclaimed lands. Nevertheless, any legislative authority would be subject to the constitutional ban on
private corporations from acquiring alienable lands and should only benefit private individuals.