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RULE 67

EXPROPRIATION
The former title was Eminent Domain. However, just to make a
distinction, Eminent Domain is the right while Expropriation is the procedure
of enforcing that right.
Eminent domain or expropriation, is a phrase which refers to the power of
a sovereign state to take or to authorize the taking of any property within its
jurisdication

for

the

public

use

and

without

the

owners

consent.

Expropriation, technically, is a special civil action filed by the government as
an exercixe of the right to eminent domain against owner of private property
for public use and upon payment of just compensation. It is, therefore, a
manifestation of the ubiquitious character of eminent domain, an inherent
political right of the state of approriating the property of individual members
of the community to the great necessities of the whole community.
We have learned in Constitutional law that the power of eminent domain
is inherently possessed the the State. By delegation, it may also be possess
by local governments, other public entities, and public utilities. (Joaquin
Bernas, S.J., The 1987 Philippine Constitution A Reviewer-Primer [1987])
Being an inherent power, it is inherent in sovereignty and does not
depend for its existence a specific grant by the Constitution. 1 Nevertheless,
the Constitution has provisions on eminent domain:
Article XII, Section 18: The state may, in the interest of
national welfare or defense, establish and operate vital
indistries and, upon payment of just compensation, transfer to
public ownership utilities and other private enterprises to be
operated by the government.
Article XIII, Section 4: The state shall, by law, undertake an
agrarian reform program founded on the right of farmers and
regular farmworkers, who are landless, to own directly or
collectively the lands they till or, in the case of other
farmworkers, to receive a just share of the fruits thereof. To
this end, the state shall encourage and undertake the just
distribution of all agricultural lands, subject to such priorities
and
1

reasonable

retention

limits

as

the

Visayan Refining Co. V. Camus and Paredes, 40 Phil. 550 (1919)

Congress

may

the following are the limitations of the right of eminent domain: 1. the Government shall expropriate idle or abandoned agricultural lands as may be defined by law. LIMITATIONS TO THE RIGHT OF EMINENT DOMAIN The right to eminent domain. the power of eminent domain id delated to the Local Government Units (“LGU”) and other entites such as the Philippine Estates Authority. and subject to the payment of just compensation. Section 22: At the earliest possible time. for distribution to the beneficiaries of the agrarian reform program. The right must be exercised by the state or its authorized entities. Just compensation must be paid to the owner. The state shall further provide incentives for voluntary land sharing. to wit: Article III. Consequently. 2. the state shall respect the right of small landowners. developmental. Artivle XVIII. Section 1: No person shall be deprived of life. or equity considerations.prescribe. However. is not ablsolute. the Congress may delegate this power to other entities of the State. it has to enact an ordinance authorizing the local chief executive to conduct expropriation proceesing of private property for public use. In the LGU’s exercise of eminent domain. Aricle III: Section 9 Under the above provision and jurisprudence. The right of eminent domain is usually exercised through the legislative branch of government. like all other inherent rights of the state. taking into account ecological. liberty or property without due process of law. The 1987 Constitution has imposed limitations to the exercise of the power of eminent domain. nor shall any person be denied the equal protection of the laws. In determining retention limits. .

The ascertainment of the necessity must come first and not follow. This inherent right can only be exercised through a judicial action under Rule 67 of the Revised Rules on Civil Procedure. when the owner and te government fail to arrice to an agreement or where the offer is not accepted. Due process must be observed. (b) the entrance into private property Where a private property is needed for conversion to some public purpose. 40 Phil. there must first be an offer on the part of the government to the owner to buy the property. et al. subject to the payment of just compensation. just like any other contract of sale.Just compensation is defined as the sum equivalent to the market value of the property. The taking must be limited to properties necessary for a legitimate purpose An essential requisite of expropriation is that there must be a necessity of a public charity for the exercise of eminent domain. the right of eminent domain may be exercised. 2 3 Alabastro. This is provided under Section 1. broadly described to be the price fixed by the seller in open market in the usual and ordinary course of legal action and competition or the fair value of the property as between one who receives and one who desires to sell it fixed at the time of the actual taking by the government. the parties agree as to the terms and conditions of the sale. Also. Expropriation and Partition (2006) City of Manila v Chinese Community of Manila. the government will have to use its power of eminent domain to forcibly take the property. If the owner is willing to sell. the taking of the property. 349 (1919) . Due process requirement is served if the government complies with the requirements under Rule 67. Article III of the Constitution.2 3. 3 Republic of the Philippines vs Castellvi is instructive as it raciocinates that there is compensable taking of a private property when the following conditions concur: (a) the expropriator must enter a private property. Otherwise. 4.

NATURE of the PROCEEDING In Ramos v. averment to that effect shall be made in the complaint. showing. so far as practicable. 1997. (2) the trial court may issue a writ of possession once the plaintiff deposits an amount equivalent to the assessed value of the property. is the responsive pleading to a complaint in eminent domain. or if the title is otherwise obscure or doubtful so that the plaintiff cannot with accuracy or certainty specify who are the real owners. (1) an answer. If the title to any property sought to be expropriated appears to be in the Republic of the Philippines. 1980). pursuant to Section 2 of said Rule. Philippine Tourism Authority (G.. — The right of eminent domain shall be exercised by the filing of a verified complaint which shall state with certainty the right and purpose of expropriation. The complaint. condemnation or expropriation proceedings is in the nature of one that is quasi-in-rem wherein the fact that the owner of the property is made a party is not essentially indispensable insofar was least as it conncerns is the immediate taking of possession of the property and the preliminary determination of its value.R.Section 1. without need of a hearing to determine the provisional sum to be deposited. describe the real or personal property sought to be expropriated. and (3) a final order of expropriation may not be issued prior to a full hearing and resolution of the objections and defenses of the property owner. the separate interest of each defendant. including the amount to be deposited. not a motion to dismiss.. June 9. Previous doctrines inconsistent with this Rule are deemed reversed or modified. Specifically. and join as defendants all persons owning or claiming to own. (1a) Expropriation proceedings are governed by revised Rule 67 of the 1997 Rules of Civil Procedure which took effect on July 1. Nos. 52449-50. the Supreme Court held: . STAGES OF THE PROCEEDING . although occupied by private individuals. any part thereof or interest therein. or occupying.

if not of dismissal of the action. if this be ordained. 206 SCRA 520 (1992). too. Obviously. too. would an order of condemnation be a final one. an expropriation proceeding has two stages: 1. and leave nothing more to be done by the Court regarding the issue. the commissioners would be final. Garcia. since it finally disposes of the action and leaves nothing more to be done by the Court on the Merits. for thereafter. one or another of the parties may believe the order to be erroneous in its appreciation of the evidence or findings of fact or otherwise. The determination of the just compensation by the court for the property sought to be taken. as reiterated in NAPOCOR v Jocson.As held in the case of Biñan vs. "of condemnation declaring that the plaintiff has a lawful right to take the property sought to be condemned. it can be inferred from Rule 67 of the Rules of Court that the special civil action of expropriation is characterized by two important stages of proceeding wherein the issue of propriety of the exercise of the right to eminent domain and the issue of just compensation are ruled upon. would be a final one. such a dissatisfied party may seek reversal of the order by taking an appeal therefrom. So. Obviously. This is done by the Court with the assistance of not more than three (3) commissioners. "no objection to the exercise of the right of condemnation (or the propriety thereof) shall be filed or heard. It would finally dispose of the second stage of the suit. 2. for the public use or purpose described in the complaint. and findings of. unlike an ordinary civil action. It ends with an order. too. as the Rules expressly state. in the proceedings before the Trial Court. OVERVIEW OF THE PROCEDURE: . Thus. of course. The order fixing the just compensation on the basis of the evidence before. upon the payment of just compensation to be determined as of the date of the filing of the complaint." An order of dismissal. The determination of plaintiff’s authority to exercise the power of eminent domain in the context of the facts of the case. 180 SCRA 576 (1989).

b. There must be a Verified Complaint 2.HOW TO INITIATE THE COMPLAINT 1. . describe the real or personal property sought to be expropriated. The verified complaint must allege the following: a. the right and purpose of expropriation.

1998 5 De Knecht vs Court of Appeals. May 20.5 JURISDICTION Pampanga Sugar Development Company. he is given the right to intervene and lay claim to the compensation. 1998. refers. May 29. They include all other persons owning. The trial court may order the correction of the pleading or act on the unverified pleading. and join as defendants all persons owning or claiming to own. 108015. so far as practicable. e. Its absence does not divest the trial court of jurisdiction. including a mortgagee. lack of verification is merely a formal defect that is neither jurisdictional nor fatal. No. the owner of the fee is not necessarily the only person who is entitled to compensation. to all those who have lawful interest in the property to be condemned. f. occupying or claiming to own the property. Torres.c. 4 . Every person having an estate or interest at law or in equity in the land taken is entitled to share in the award. d. 743.R. 4 PARTIES TO THE CASE The defendants in an expropriation case are not limited to the owners of the property condemned. any part thereof or interest therein. although occupied by private individuals. the term "owner" when employed in statutes relating to eminent domain to designate the persons who are to be made parties to the proceeding. showing. If a person claiming an interest in the land sought to be condemned is not made a party. When a parcel of land is taken by eminent domain. VERIFIED COMPLAINT Verification refers to a declaration unver oath or upon penalty of perjury that a statement or pleading is true. or occupying. so far as practicable. National Labor Relations Commission. v. the separate interest of each defendant. Inc. 299. a lessee and a vendee in possession under an executory contract. Generally. as is the rule in respect of those entitled to compensation. averment to that effect shall be made in the complaint. G. Must implead all persons owning or claiming to own. If the title to any property sought to be expropriated appears to be in the Republic of the Philippines. 1997. In the American jurisdiction. or if the title is otherwise obscure or doubtful so that the plaintiff cannot with accuracy or certainty specify who are the real owners. Joson v. 290 SCRA 279.Verification is intended to assure that the allegations therein have been prepared in good faith or are true and correct. May 20. 3. or occupying. the separate interest of each defendant. any part thereof or interest therein. 272 SCRA 737. if the attending circumstances are such that strict compliance with the rule may be dispensed with in order to serve the ends of justice. showing. not mere speculations.

the Supreme Court said that a preliminary deposit protects the defendant "from any danger of loss resulting from the temporary occupation of the land by the Government. It is a well known fact that cemeteries may be public or private. Where a cemetery is open to public. If personal property is involved." To return this deposit to plaintiff now would. it is a public use and no part of the ground can be taken for other public uses under a general authority. 6 7 Barangay San Roque v Heirs of Pastor. its value shall be provisionally ascertained and the amount to be deposited shall be promptly fixed by the court. and as an indemnity against damages in the eventuality that the proceedings should fail of consummation. or church. if finally expropriated. And this immunity extends to the unimproved and unoccupied parts which are held in good faith for future use. the plaintiff shall have the right to take or enter upon the possession of the real property involved if he deposits with the authorized government depositary an amount equivalent to the assessed value of the property for purposes of taxation to be held by such bank subject to the orders of the court. Entry of plaintiff upon depositing value with authorized government depositary. or a small portion of the community or neighborhood. the plaintiff shall have the right to take or enter upon the possession of the real property involved if he deposits with the authorized government depositary an amount equivalent to the assessed value of the property for purposes of taxation to be held by such bank subject to the orders of the court. while the latter is used only by a family. 2000 City of Manila v Chinese Community of Manila. regardless of the value of the subject property. 7 Section 2. June 20. After such deposit is made the court shall order the sheriff or other proper officer to forthwith place the plaintiff in possession of the property involved and promptly submit a report thereof to the court with service of copies to the parties. unless in lieu thereof the court authorizes the deposit of a certificate of deposit of a government bank of the Republic of the Philippines payable on demand to the authorized government depositary.6 May a property already devoted to public use be subject to expropriation? No. be depriving defendants of this legal safeguard for the payment of their damages in case they are finally held to have the right to collect said damages in these same proceedings. — Upon the filing of the complaint or at any time thereafter and after due notice to the defendant. The former is a cemetery used by the general community. or neighborhood. (2a) PRELIMINARY DEPOSIT “Upon the filing of the complaint or at any time thereafter and after due notice to the defendant. for it is obvious that this preliminary deposit serve the double purpose of a prepayment upon the value of the property.An action for expropriation is incapable of pecuniary estimation and falls within the jurisdiction of the Regional Trial Court. 349 (1919) . 40 Phil.” In Visayan Refining vs Camus. Such deposit shall be in money. therefore. 138896. GR No.

requires immediate payment to the landowner of 100% of the value of the property based on the current relevant zonal valuation of the Bureau of Internal Revenue. Thus. 8 DETERMINATION OF ASSESSED VALUE The assessed value is that indicated in the tax declaration. the trial court recalled the Writ of Possession because the National Power Corporation failed to deposit the additional amount.A preliminary deposit. not in recalling the Writ of Possession. This should be distinguished from the requirement under Republic Act 8974. First. unlike Rule 67. As stated in Republic vs Gingoyon. Section 2 of the Rules of Civil Procedure. According to the Implementing Rules and Regulations of Republic Act No. which determines the zonal value. 8974. therefore serves the double purpose of: 1. Republic Act No. transmission and distribution" are national infrastructure projects covered by the law. the trial court committed two errors. but in granting the Writ of Possession in the first place. 8 Visayan Refining Co. payment upon the value of the property. We find that the trial court erred. contrary to the requirements of Section 7 of Republic Act No. The trial court allowed the National Power Corporation to take possession of the properties because of its deposit with Land Bank of the Philippines of the alleged provisional value. and not on the determination made by the National Power Corporation. Section 4 of Republic Act No. However. The law also requires the immediate payment of the value of the improvements and/or structures on the land before the trial court can issue the Writ of Possession. projects related to "power generation. The purpose for the taking of private property was for the construction of the National Power Corporation’s Substation Island Grid Project. Rule 67 only requires the government to deposit the assessed value of the property for it to enter and take possession. 8974. In contrast. not the court. SITE OR LOCATION FOR NATIONAL GOVERNMENT INFRASTRUCTURE PROJECTS AND FOR OTHER PURPOSES. This effectively removes the discretion of the court in determining the provisional value of the real property. it based the value of the improvements on the property on the determination made by the commissioners. It is the Bureau of Internal Revenue. if finally expropriated. Indemnity against damage in the event the proceedings fail to consummate. 40 Phil 550 (1919) . and 2. otherwise known as AN ACT TO FACILITATE THE ACQUISITION OF RIGHT-OF-WAY. 8974 "provides for a procedure eminently more favorable to the property owner than Rule 67" since it requires the immediate payment of the zonal value and the value of the improvements on the land to the property owner before the trial court can allow the government to take possession. 8974 before it can take possession of respondents’ property. The National Power Corporation must first comply with the guidelines stated in Republic Act No. v Camus and Paredes. 8974.

9 PRIOR HEARING NOT NECESSARY There is no requirement for prior hearing before immediate possession can be granted the Republic of the Philippines. 657 (2005) San Diego vs Vandello. or the proffered value by the implementing agency.The second error of the trial court occurred when it issued a Writ of Possession on the basis of the National Power Corporation’s deposit of the alleged provisional value with Land Bank of the Philippines. it cannot be considered as compliance with Section 4 of Republic Act No. Without such direct payment. 10 9 Republic v. instances when immediate payment cannot be made even if the implementing agency is willing to do so. the necessity of the taking.769. Judge Gingoyon. 8974. not on its actual payment to respondents. Even if the deposit of P580. of course. the implementing agency may deposit the proffered value with the trial court having jurisdiction over the expropriation proceedings. In these instances. There are. and not a mere deposit with the authorized government depositary. the public character of its use. 514 Phil.93 was the correct provisional value. In Gingoyon: [T]he law plainly requires direct payment to the property owner. All that is required is the notice to the owner of the property sought to be condemned and deposit with the authorized depositary of the amount equivalent to the assessed value of the property. 80 SCRA 305 (1977) 10 . no writ of possession may be obtained. The owner of the property is not precluded from contesting the power of the implementing agency to exercise eminent domain.

Upon compliance with the guidelines abovementioned. (b) In provinces. When the decision of the court becomes final and executory. implementation. the implementing agency shall present to the court a certificate of availability of funds from the proper official concerned. negotiated sale.all projects covered by Republic Act No. and after due notice to the defendant. the implementing agency shall immediately pay the owner of the property its proffered value taking into consideration the standards prescribed in Section 5 hereof. Before the court can issue a Writ of Possession. 2000 AN ACT TO FACILITATE THE ACQUISITION OF RIGHT-OF-WAY. the court shall immediately issue to the implementing agency an order to take possession of the property and start the implementation of the project. the State shall ensure that owners of real property acquired for national government infrastructure projects are promptly paid just compensation. Standards for the Assessment of the Value of the Land Subject of Expropriation Proceedings or .Article III. improvement. and other related and necessary activities. operation. expropriation or any other mode of acquisition as provided by law. Towards this end.Whenever it is necessary to acquire real property for the right-of-way or location for any national government infrastructure project through expropriation. Guidelines for Expropriation Proceedings. 6957. repair.The government may acquire real property needed as rightof-way. Section 3. municipalities and other areas where there is no zonal valuation. . regardless of the source of funding. the BIR is hereby mandated within the period of sixty (60) days from the date of the expropriation case. construction. the court shall determine the just compensation to be paid the owner within sixty (60) days from the date of filing of the expropriation case. SITE OR LOCATION FOR NATIONAL GOVERNMENT INFRASTRUCTURE PROJECTS AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines Congress assembled: Section 1. completion. Declaration of Policy. Section 2. maintenance. including projects undertaken by government-owned and controlled corporations. Section 5. the appropriate implementing agency shall initiate the expropriation proceedings before the proper court under the following guidelines: (a) Upon the filing of the complaint. Modes of Accounting Real Property. Section 4. 7718. and rehabilitation. as amended by Republic Act No. the implementing agency shall pay the owner the difference between the amount already paid and the just compensation as determined by the court. . the implementing agency shall immediately pay the owner of the property the amount equivalent to the sum of (1) one hundred percent (100%) of the value of the property based on the current relevant zonal valuation of the Bureau of Internal Revenue (BIR). 8974 November 7. Section 9 of the Constitution states that private property shall not be taken for public use without just compensation. site or location for any national government infrastructure project through donation. . and (2) the value of the improvements and/or structures as determined under Section 7 hereof. engineering works and service contracts. National Government Projects. and (c) In case the completion of a government infrastructure project is of utmost urgency and importance.The term "national government projects" shall refer to all national government infrastructure. cities. . otherwise known as the Build-Operate-and-Transfer Law. to come up with a zonal valuation for said area. such as site acquisition. supply and/or installation of equipment and materials. and there is no existing valuation of the area concerned. In the event that the owner of the property contests the implementing agency’s proffered value.REPUBLIC ACT NO.

the implementing agency shall take into account the ecological and environmental impact of the project. the court may consider. oral as well as documentary evidence presented. shall establish and develop squatter relocation sites. among other well-established factors. (d) The current selling price of similar lands in the vicinity. Section 7. shape or location.Negotiated Sale. Guidelines for Negotiated Sale.The Department of Public Works and Highways and other implementing agencies concerned.The government through the National Housing Authority. the necessary implementing rules and regulations for the equitable valuation of the improvements and/or structures on the land to be expropriated. in coordination with the local government units and implementing agencies concerned. Section 6. (g) The price of the land as manifested in the ocular findings. site or location for any national government infrastructure project. Squatter Relocation. the concerned local government units shall provide and administer the relocation sites. otherwise known as the Urban Development and Housing Act of 1992. The implementing agency shall take into account and observe diligently the procedure provided for in Sections 28 and 29 of Republic Act No. (f) This size.In order to facilitate the determination of just compensation. 7160.In cases involving the acquisition of right-of-way. Before any national government project could be undertaken. and (h) Such facts and events as to enable the affected property owners to have sufficient funds to acquire similarly-situated lands of approximate areas as those required from them by the government. In case the expropriated land is occupied by squatters. in coordination with the local government units concerned in the acquisition of right-of-way. land use ordinances and all pertinent provisions of Republic Act No. Valuation of Improvements and/or Structures. in anticipation of squatters that have to be removed from the right-of-way or site of future infrastructure projects. . as amended. otherwise known as the Local Government Code of 1991. (c) The value declared by the owners. . Section 8. . site or location for any national government infrastructure project. including the provision of adequate utilities and services. . Funds for the relocation sites shall come from appropriations for the purpose under the General Appropriations Act. site or location for any national government infrastructure project. tax declaration and zonal valuation of the land. and thereby rehabilitate themselves as early as possible. . (e) The reasonable disturbance compensation for the removal and/or demolition of certain improvement on the land and for the value of improvements thereon. the standards prescribed under Section 5 hereof shall be used to determine the fair market value of the property. are hereby mandated to adopt within sixty (60) days upon approval of this Act. the agency shall consider environmental laws. (b) The developmental costs for improving the land. subject to review and approval by the head of the agency or department concerned.Should the implementing agency and the owner of the property agree on a negotiated sale for the acquisition of right-of-way. Ecological and Environmental Concerns. the court shall issue the necessary " Writ of Demolition" for the purpose of dismantling any and all structures found within the subject property. . Whenever applicable. Section 9. 7279. as well as from appropriate infrastructure projects funds of the implementing agency concerned. the following relevant standards: (a) The classification and use for which the property is suited.

Section 15.lawphil.Violation of any provisions of this Act shall subject the government official or employee concerned to appropriate administrative.)JOSEPH EJERCITO ESTRADA President of the Philippines The Lawphil Project . decrees.net/statutes/repacts/ra2000/javascript:history. Repealing Clause. 2000 (Sgd. Section 11.A committee composed of theSecretary of the Department of Public Works and Highways as chairperson. Sanctions. . . Section 13. civil and/or criminal sanctions.The government shall provide adequate appropriations that will allow the concerned implementing agencies to acquire the required right-of-way.Section 10. orders.If any provision of this Act is declared unconstitutional or invalid. and the secretaries of the Department of Transportation and Communications. Site or Location for Any National Government Infrastructure Project in Advance of Project Implementation. Rules and Regulations.All laws. cities and municipalities as members shall prepare the necessary rules and regulations for the proper implementation of this Act within sixty (60) days from its approval. . . rules and regulations or parts thereof inconsistent with this Act are hereby repealed or amended accordingly. Section 12.html" \l "top" . site or location for any national government infrastructure project. Separability Clause. other parts or provisions hereof not affected shall continue to be in full force and effect. Effectivity Clause.This Act shall take effect fifteen (15) days following its publication in at least two (2) newspapers of general circulation.back(1)" HYPERLINK "http://www. Section 14. Appropriations for Acquisitions of Right-of -Way. . and the Department of Justice.Arellano Law Foundation HYPERLINK "http://www.lawphil. including suspension and/or dismissal from the government service and forfeiture of benefits.net/statutes/repacts/ra2000/ra_8974_2000. . and the presidents of the leagues of provinces. the Department of Energy. Approved: November 7.