Académique Documents
Professionnel Documents
Culture Documents
Held:
The decision dated 18 September 1991 has long become final and executory. The decision therein ordered the De la Ramas to pay Guerrero, among others, the legal interest of the amount of
P2,200,000.00 from 2 August 1989 until the deed of absolute sale is executed in favor of Guerrero. Specifically, the court therein rationalized that (1) the legal rate of interest for damages, and
even for loans where interest was not stipulated, is 6% per annum (Article 2209, Civil Code); that (2) the rate of 12% per annum was established by the Monetary Board when, under the power
vested in it by PD 116 to amend Act 2655 (more commonly known as the Anti Usury Law), it amended Section 1 by increasing the rate of legal interest for loans, renewals and forbearance
thereof, as well as for judgments, from 6% per annum to 12% per annum; and that (3) inasmuch as the Monetary Board may not repeal or amend the Civil Code, in the face of the apparent
conflict between Article 2209 and Act 2655 as amended, the ruling of the Monetary Board applies only to banks, financing companies, pawnshops and intermediaries performing quasibanking functions, all of which are under the control and supervision of the Central Bank and of the Monetary Board. Thus, the court held therein that (1) the interest rate on the P2,200,000.00
paid to the de la Ramas by Guerrero at the inception of the transactions should be only 6% per annum from 2 August 1989, and as of 2 January 1994 this amounts to the sum of P583,000.00
and P11,000.00 every month thereafter until the deed of absolute sale over the property subject matter of this case is executed; that (2) the amounts payable by the de la Ramas to Guerrero
therefore stands at a total of P1,383,000.00. Offsetting this amount from the balance of P8,800,000.00, Guerrero must still pay to the de la Ramas the sum of P7,417,000.00; and that (3) since
Guerrero has already deposited with the Clerk of Court of the court the sum of P5,808,100.00 as of 11 January 1994; he should add to this the sum of Pl,608,900.00. The De la Ramas can no
longer question a judgment which has already become final and executory. Hence, they are already barred from questioning it in a proceeding before the Supreme Court.
Note: this case enunciated how expropriation should be initiated. SC ruled as follows:
The first is concerned with the determination of the authority of the plaintiff to exercise the power of eminent domain and the propriety of its exercise in the context of the facts involved in
the suit. It ends with an order, if not dismissal of the action, "of condemnation declaring that the plaintiff has a lawful right to take the property sought to be condemned, for the public use or
purpose declared in the complaint, upon the payment of just compensation to be determined as of the date of the filing of the complaint"xxx.
The second phase of the eminent domain action is concerned with the determination by the court of "the just compensation for the property sought to be taken." This is done by the court with
the assistance of not more than three (3) commissionersxxx
It is only upon the completion of these two stages that expropriation is said to have been completed. Moreover, it is only upon payment of just compensation that title over the property passes
to the government. Therefore, until the action for expropriation has been completed and terminated, ownership over the property being expropriated remains with the registered owner.
Consequently, the latter can exercise all rights pertaining to an owner, including the right to dispose of his property, subject to the power of the State ultimately to acquire it through
expropriation.
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Aguilar, respondents
Nature of Case:
Petition for review under Rule 45 of the Rules of Court on the decision of the RTC dismissing amended complaint in SCA No. 1427 for expropriation of two (2) parcels of land in
Mandaluyong City.
Dispositive: The Supreme Court denied the petition and affirmed the RTC decision.
Facts
Antonio, Francisco, Thelma, Eusebio, and Rodolfo N. Aguilar, constructed residential houses several decades ago on a portion of the 3 lots located at 9 de Febrero
Street, Barangay Mauwag, City of Mandaluyong. The Aguilars had since leased out these houses to tenants until the present. On the vacant portion of the lots, other
families constructed residential structures which they likewise occupied. In 1983, the lots were classified by Resolution 125 of the Board of the Housing and Urban
Development Coordinating Council as an Area for Priority Development for urban land reform under Proclamation 1967 and 2284 of then President Marcos. As a result
of this classification, the tenants and occupants of the lots offered to purchase the land from the Aguilars, but the latter refused to sell.
On 7 November 1996, the Sangguniang Panlungsod of Mandaluyong, upon petition of the Kapit bisig, an association of tenants and occupants of the subject land, adopted
Resolution 516, Series of 1996 authorizing Mayor Benjamin Abalos of the City of Mandaluyong to initiate action for the expropriation of the subject lots and construction
of a medium-rise condominium for qualified occupants of the land. On 10 January 1996, Mayor Abalos allegedly sent a letter to the Aguilars offering to purchase the said
property at P3,000.00 per square meter. On 4 August 1997, the City filed with the Regional Trial Court (RTC), Branch 168, Pasig City a complaint for expropriation,
seeking to expropriate 3 adjoining parcels of land with an aggregate area of 1,847 square meters in the names of the Aguilars, and praying that the fixing of just
compensation at the fair market value of P3,000.00 per square meter. In their answer, the Aguilars, except Eusebio who died in 1995, denied having received a copy of
Mayor Abalos' offer to purchase their lots. The prosecution filed motion for suspension of the accused public officials, and finding that said accused were charged under a
valid information, the Second Division of the Sandiganbayan issued a resolution suspending the said public officials from their respective public positions, or from any
other public office that they may be holding.
They alleged that the expropriation of their land is arbitrary and capricious, and is not for a public purpose; that the subject lots are their only real property and are too small
for expropriation, while the City has several properties inventoried for socialized housing; and that the fair market value of P3,000.00 per square meter is arbitrary because
the zonal valuation set by the Bureau of Internal Revenue is P7,000.00 per square meter. As counterclaim, the Aguilars prayed for damages of P21 million. On 5
November 1997, the City filed an Amended Complaint and named as an additional defendant Virginia N. Aguilar and, at the same time, substituted Eusebio Aguilar with
his heirs. The City also excluded from expropriation TCT N59870 and thereby reduced the area sought to be expropriated from three (3) parcels of land to two (2) parcels
totaling 1,636 square meters. The Amended Complaint was admitted by the trial court on 18 December 1997. On 17 September 1998, the trial court issued an order
dismissing the Amended Complaint after declaring the Aguilars as "small property owners" whose land is exempt from expropriation under Republic Act 7279.
The court also found that the expropriation was not for a public purpose for the City's failure to present any evidence that the intended beneficiaries of the expropriation are
landless and homeless residents of Mandaluyong. The City moved for reconsideration. On 29 December 1998, the court denied the motion. The City filed a petition for
review with the Supreme Court.
ISSUE/S of the CASE:
(a) Whether the City has exhausted all means to acquire the land under the hands of private persons, but which is within the Areas for Priority Development (APD).
SUPREME COURT RULING
Presidential Decree (PD) 1517, the Urban Land Reform Act, was issued by then President Marcos in1978. The decree adopted as a State policy the liberation of human communities
from blight, congestion and hazard, and promotion of their development and modernization, the optimum use of land as a national resource for public welfare.
Pursuant to this law, Proclamation 1893 was issued in 1979 declaring the entire
Metro Manila as Urban Land Reform Zone for purposes of urban land reform. This was amended in 1980 by Proclamation 1967 and in 1983 by Proclamation 2284 which identified and
specified 245 sites in Metro Manila as Areas for Priority Development and Urban Land Reform Zones. The acquisition of lands for socialized housing is governed by several provisions in the
law. Pursuant to Section 9 of RA 7279, Lands for socialized housing are to be acquired in the following order: (1) government lands; (2) alienable lands of the public domain; (3) unregistered
or abandoned or idle lands; (4) lands within the declared Areas for Priority Development (APD), Zonal Improvement Program (ZIP) sites, Slum Improvement and Resettlement (SIR) sites
which have not yet been acquired; (5) BLISS sites which have not yet been acquired; and (6) privately- owned lands. Section 9, however, is not a single provision that can be read separate
from the other provisions of the law. It must be read together with Section 10 of RA 7279. Thus, lands for socialized housing under RA 7279 are to be acquired in several modes. Among these
modes are the following: (1) community mortgage; (2) land swapping, (3) land assembly or consolidation; (4) land banking; (5) donation to the government; (6) joint venture agreement; (7)
negotiated purchase; and (8) expropriation. The mode of expropriation is subject to two conditions: (a) it shall be resorted to only when the other modes of acquisition have been exhausted;
and (b) parcels of land owned by small property owners are exempt from such acquisition. The acquisition of the lands in the priority list must be made subject to the modes and conditions set
forth in the next provision. In other words, land that lies within the APD may be acquired only in the modes under, and subject to the conditions of, Section 10. Herein, the City claims that it
had faithfully observed the different modes of land acquisition for socialized housing under RA 7279 and adhered to the priorities in the acquisition for socialized housing under said law. It,
however, did not state with particularity whether it exhausted the other modes of acquisition in Section 9 of the law before it decided to expropriate the subject lots. The law states
"expropriation shall be resorted to when other modes of acquisition have been exhausted."
The City alleged only one mode of acquisition, i.e., by negotiated purchase. The City, through the City Mayor, tried to purchase the lots from the Aguilars but the latter refused to sell.
As to the other modes of acquisition, no mention has been made. Not even Resolution 516, Series of 1996 of the Sangguniang Panlungsod authorizing the Mayor of Mandaluyong to effect the
expropriation of the subject property states whether the city government tried to acquire the same by community mortgage, land swapping, land assembly or consolidation, land banking,
donation to the government, or joint venture agreement under Section 9 of the law.
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Doctrine:
Power of Eminent Domain
G.R. No. 142304
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Facts:
Clarita Vda. de Onorio is the owner of a lot in Barangay M. Roxas, Sto. Nino, South Cotabato with an area of 39,512 square meters (Lot 1210-A-Pad-11-000586, TCT T-22121 of the Registry
of Deeds, South Cotabato). On 6 October 1981, Santiago Eslaban, Jr., Project Manager of the NIA, approved the construction of the main irrigation canal of the NIA on the said lot, affecting a
24,660 square meter portion thereof. De Onorio's husband agreed to the construction of the NIA canal provided that they be paid by the government for the area taken after the processing of
documents by the Commission on Audit. Sometime in 1983, a Right-of-Way agreement was executed between De Onorio and the NIA. The NIA then paid De Onorio the amount of P4,180.00
as Right-of-Way damages. De Onorio subsequently executed an Affidavit of Waiver of Rights and Fees whereby she waived any compensation for damages to crops and improvements which
she suffered as a result of the construction of a right-of-way on her property. The same year, Eslaban offered De Onorio the sum of P35,000,00 by way of amicable settlement (financial
assistance) pursuant to Executive Order 1035, 18. De Onorio demanded payment for the taking of her property, but Eslaban/NIA refused to pay. Accordingly, De Onorio filed on 10
December 1990 a complaint against Eslaban before the Regional Trial Court (RTC), praying that Eslaban/NIA be ordered to pay the sum of P111,299.55 as compensation for the portion of her
property used in the construction of the canal constructed by the NIA, litigation expenses, and the costs. Eslaban admitted that NIA constructed an irrigation canal over the property of De
Onorio and that NIA paid a certain landowner whose property had been taken for irrigation purposes, but Eslaban interposed the defense that:
(1) the government had not consented to be sued; (2) the total area used by the NIA for it irrigation canal was only 2.27 hectares, not 24,600 square meters; and (3) that De Onorio was not
entitled to compensation for the taking of her property considering that she secured title over the property by virtue of a homestead patent under Commonwealth Act 141. On 18 October 1993,
the trial court rendered a decision, ordering the NIA to pay to De Onorio the sum of P107,517.60 as just compensation for the questioned area of
24,660 square meters of land owned by De Onorio and taken by the NIA which used it for its main canal plus costs. On 15 November 1993, the NIA appealed to the Court of Appeals which,
on 31 October 2000, affirmed the decision of the Regional Trial Court. NIA filed the petition for review.
Issue:
Whether the valuation of just compensation is determined at the time the property was taken or at the time the complaint for expropriation is filed.
Held:
Whenever public lands are alienated, granted or conveyed to applicants thereof, and the deed grant or instrument of conveyance [sales patent] registered with the Register of Deeds and the
corresponding certificate and owner's duplicate of title issued, such lands are deemed registered lands under the Torrens System and the certificate of title thus issued is as conclusive and
indefeasible as any other certificate of title issued to private lands in ordinary or cadastral registration proceedings. The only servitude which a private
property owner is required to recognize in favor of the government is the easement of a "public highway, way, private way established by law, or any government canal or lateral thereof where
the certificate of title does not state that the boundaries thereof have been pre-determined." This implies that the same should have been pre-existing at the time of the registration of the land in
order that the registered owner may be compelled to respect it. Conversely, where the easement is not pre-existing and is sought to be imposed only after the land has been registered under the
Land Registration Act, proper expropriation proceedings should be had, and just compensation paid to the registered owner thereof. Herein, the irrigation canal constructed by the NIA on the
contested property was built only on 6 October 1981, several years after the property had been registered on 13 May 1976. Accordingly, prior expropriation proceedings should have been filed
and just compensation
paid to the owner thereof before it could be taken for public use. With respect to the compensation which the owner of the condemned property is entitled to receive, it is likewise settled that it
is the market value which should be paid or "that sum of money which a person, desirous but not compelled to buy, and an owner, willing but not compelled to sell, would agree on as a price
to be given and received therefor." Further, just compensation means not only the correct amount to be paid to the owner of the land but also the payment of the land within a reasonable time
from its taking. Without prompt payment, compensation cannot be considered "just" for then the property owner is made to suffer the consequence of being immediately deprived of his land
while being made to wait for a decade or more before actually receiving the amount necessary to cope with his loss. Nevertheless, there are instances where the expropriating agency takes over
the property prior to the expropriation suit, in which case just compensation shall be determined as of the time of taking, not as of the time of filing of the action of eminent domain. The value
of the property, thus, must be determined either as of the date of the taking of the property or the filing of the complaint, "whichever came first.
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been exhausted. Compliance with these conditions is mandatory because these are the only safeguards of often times helpless owners of private property against violation of due process when
their property is forcible taken from them from public use. Herein, the city failed to prove strict compliance with the requirements with the requirements of Section 9&10 of RA 7279. The city
neither alleged in its complaint nor proved during the proceedings before the trial court that it complied with said requirements. Even in the CA , the city in its pleadings failed to show its
compliance with the law. The CA was likewise on this specific jurisdictional issue. This is a clear violation of the right to due process of the Reyeses.
1. Whether the State can be compelled and coerced by the Courts to exercise or continue with the exercise of its inherent power of eminent domain.
2. Whether Writs of Execution and Garnishment may be issued against the State in an expropriation wherein the exercise of the power of eminent domain will not serve public use or
purpose.
Ruling:
1. Yes. The state can be compelled and coerced by the court to continue exercise its inherent power of eminent domain since the NHA does not exercise its right to appeal in the
expropriation proceeding before the court has rendered the case final and executory. Respondent landowners had already been prejudiced by the expropriation case. Petitioner cannot
be permitted to institute condemnation proceedings against respondents only to abandon it later when it finds the amount of just compensation unacceptable.
2. Yes. Having a juridical personality separate and distinct from the government, the funds of such government-owned and controlled corporations and non-corporate agency as in this
case NHA, although considered public in character, are not exempt from garnishment. Hence, it is clear that the funds of petitioner NHA are not exempt from garnishment or
execution. Petitioners prayer for injunctive relief to restrain respondent from enforcing the Notice of Levy and Garnishment against its funds and properties must, therefore, be denied.
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SC Ruling:
WHEREFORE, in view of the foregoing, the instant petition for review is DENIED. The decision of the Court of Appeals in affirming the trial courts Order denying petitioners Motion to
Dismiss the expropriation proceedings is AFFIRMED. Petitioners prayer for injunctive relief against the levy and garnishment of its funds and personal properties is DENIED. The Temporary
Restraining Order dated is LIFTED.
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4. Yes, Wycocos claim for payment of interest is partly meritorious. The trust account opened as the mode of payment of just compensation should be converted to a deposit account. The
conversion should be retroactive in application in order to rectify the error committed by the DAR in opening a trust account and to grant the landowners the benefits concomitant to payment
in cash or LBP bonds. Otherwise, petitioners right to payment of just and valid compensation for the expropriation of his property would be violated. The interest earnings accruing on the
deposit account of landowners would suffice to compensate them pending payment of just compensation.
The award of actual damages for unrealized profits should be deleted because Wycoco failed to show proof of loss. Wycocos petition for mandamus in G.R. No. 146733 was dismissed. The
decision of the Regional Trial Court of Cabanatuan City, acting as Special Agrarian Court cannot be enforced because there is a need to remand the case to the trial court for determination of
just compensation. Likewise, the prayer for the inhibition of Judge Rodrigo S. Caspillo was denied for lack of basis.
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Trial Court
The Citys complaint for eminent domain was dismissed.The trial court held that expropriation was inappropriate because herein petitioners were in fact willing to sell the subject properties
under terms acceptable to the purchaser. Moreover, respondent City failed to show that its offer was rejected by petitioners. Respondent Citys motion for reconsideration was denied.
CA
The Orders appealed from are REVERSED and SET ASIDE. The case is remanded to the lower court to determine specifically the amount of just compensation.
SC
The petitions are GRANTED. In G.R. No. 132431, the decision of the Court of Appeals dated January 27, 1998 is hereby REVERSED and SET ASIDE. In G.R. No. 137146, the resolutions
of the Court of Appeals dated August 19, 1998 and December 16, 1998 are hereby REVERSED and SET ASIDE
Court Rationale:
The Filstream case is substantially similar in facts and issues to the present case. In Filstream V. CA, the court held that the Sections 9&10 of the Republic Act 7279 are limitations to the
exercise to the power of eminent domain, especially with respect to the order of priority in acquiring private lands and in resorting to expropriation proceedings as a means to acquire the same.
Private lands rank last in order of priority for purposes of socialize housing . In the same vein, expropriation proceedings are to be resorted to only after the other modes of acquisition have
been exhausted. Compliance with these conditions is mandatory because these are the only safeguards of often times helpless owners of private property against violation of due process when
their property is forcible taken from them from public use. Herein, the city failed to prove strict compliance with the requirements with the requirements of Section 9&10 of RA 7279. The city
neither alleged in its complaint nor proved during the proceedings before the trial court that it complied with said requirements. Even in the CA , the city in its pleadings failed to show its
compliance with the law. The CA was likewise on this specific jurisdictional issue. This is a clear violation of the right to due process of the Reyeses.
Nature of Case:
Petition for Review before the Supreme Court
BRIEF
This is a petition for review of the 30 March 1992 Decision and 14 August 1992 Resolution of the Court of Appeals in CAG. R. CV No. 16930. The Court of Appeals affirmed the Decision3
of the Regional Trial Court, Branch 17, Tabaco, Albay in Civil Case No. T552.
FACTS
Petitioner National Power Corporation ("NPC") is a public corporation created to generate geothermal, hydroelectric, nuclear and other power and to transmit electric power nationwide.NPC is
authorized by law to acquire property and exercise the right of eminent domain. Private respondent Antonino Pobre ("Pobre") is the owner of a 68,969 square-meter land ("Property") located
in Barangay Bano, Municipality of Tiwi, Albay. The Property is covered by TCT No. 4067 and Subdivision Plan 11-9709.
NPC then became involved with Pobre's Property in three instances:
First was on 18 February 1972 when Pobre leased to NPC for one year eleven lots from the approved subdivision plan.
Second was sometime in 1977, the first time that NPC filed its expropriation case against Pobre to acquire an 8,311.60 square-meter portion of the Property. On 23 October 1979, the trial court
ordered the expropriation of the lots upon NPC's payment of P25 per square meter or a total amount of P207,790. NPC began drilling operations and construction of steam wells. While this
first expropriation case was pending, NPC dumped waste materials beyond the site agreed upon by NPC with Pobre. The dumping of waste materials altered the topography of some portions
of the Property. NPC did not act on Pobre's complaints and NPC continued with its dumping.
Third was on 1 September 1979, when NPC filed its second expropriation case against Pobre to acquire an additional 5,554 square meters of the Property. This is the subject of this petition.
NPC needed the lot for the construction and maintenance of Naglagbong Well Site F-20, pursuant to Proclamation No. 7396 and Republic Act No. 5092. NPC immediately deposited
P5,546.36 with the Philippine National Bank. The deposit represented 10% of the total market value of the lots covered by the second expropriation. On 6 September 1979, NPC entered the
5,554 square-meter lot upon the trial court's issuance of a writ of possession to NPC.
On 10 December 1984, Pobre filed a motion to dismiss the second complaint for expropriation. Pobre claimed that NPC damaged his Property. Pobre prayed for just compensation of all the
lots affected by NPC's actions and for the payment of damages.
Issue: Whether NPC had taken the entire property of Pobre and must pay just compensation for the whole property considered part of the expropriation instituted by NPC.
ACTIONS of the COURT
RTC: Yes. Issued its Decision in favor of Pobre. RTC issued its Order denying NPC's motion for reconsideration.
The trial court found the following badges of NPC's bad faith: (1) NPC allowed five years to pass before it moved for the dismissal of the second expropriation case; (2) NPC did not act on
Pobre's plea for NPC to eliminate or at least reduce the damage to the Property; and (3) NPC singled out Pobre's Property for piecemeal expropriation when NPC could have expropriated other
properties which were not affected in their entirety by NPC's operation.
The trial court found the just compensation to be P50 per square meter or a total of P3,448,450 for Pobre's 68,969 square-meter Property. NPC failed to contest this valuation. Since NPC was
in bad faith and it employed dilatory tactics to prolong this case, the trial court imposed legal interest on the P3,448,450 from 6 September 1979 until full payment. The trial court awarded
Pobre attorney's fees of P150,000.
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CA: Yes. The Court of Appeals affirmed the decision of the trial court. However, the appellate court deleted the award of attorney's fees because Pobre did not properly plead for it. The Court
of Appeals denied NPC's motion for reconsideration in a Resolution dated 14 August 1992.
SC: NPC must Pay Just Compensation for the Entire Property.
COURT RATIONALE ON THE ABOVE FACTS
Ordinarily, the dismissal of the expropriation case restores possession of the expropriated land to the landowner. However, when possession of the land cannot be turned over to the landowner
because it is neither convenient nor feasible anymore to do so, the only remedy available to the aggrieved landowner is to demand payment of just compensation.
In this case, we agree with the trial and appellate courts that it is no longer possible and practical to restore possession of the Property to Pobre. The Property is no longer habitable as a resortsubdivision. The Property is worthless to Pobre and is now useful only to NPC. Pobre has completely lost the Property as if NPC had physically taken over the entire 68,969 square-meter
Property.
In United States v. Causby, the U.S. Supreme Court ruled that when private property is rendered uninhabitable by an entity with the power to exercise eminent domain, the taking is deemed
complete. Such taking is thus compensable.
In this jurisdiction, the Court has ruled that if the government takes property without expropriation and devotes the property to public use, after many years the property owner may demand
payment of just compensation. This principle is in accord with the constitutional mandate that private property shall not be taken for public use without just compensation.
n this case, NPC appropriated Pobre's Property without resort to expropriation proceedings. NPC dismissed its own complaint for the second expropriation. At no point did NPC institute
expropriation proceedings for the lots outside the 5,554 square-meter portion subject of the second expropriation. The only issues that the trial court had to settle were the amount of just
compensation and damages that NPC had to pay Pobre.
This case ceased to be an action for expropriation when NPC dismissed its complaint for expropriation. Since this case has been reduced to a simple case of recovery of damages, the
provisions of the Rules of Court on the ascertainment of the just compensation to be paid were no longer applicable. A trial before commissioners, for instance, was dispensable.
We have held that the usual procedure in the determination of just compensation is waived when the government itself initially violates procedural requirements. NPC's taking of Pobre's
property without filing the appropriate expropriation proceedings and paying him just compensation is a transgression of procedural due process.
From the beginning, NPC should have initiated expropriation proceedings for Pobre's entire 68,969 square-meter Property. NPC did not. Instead, NPC embarked on a piecemeal expropriation
of the Property. Even as the second expropriation case was still pending, NPC was well aware of the damage that it had unleashed on the entire Property. NPC, however, remained impervious
to Pobre's repeated demands for NPC to abate the damage that it had wrought on his Property.
Just compensation is the fair and full equivalent of the loss.
SUPREME COURT RULING:
WHEREFORE, we DENY the petition for lack of merit. The appealed Decision of the Court of Appeals dated 30 March 1992 in CA-G.R. CV No. 16930 is AFFIRMED with
MODIFICATION. National Power Corporation is ordered to pay Antonino Pobre P3,448,450 as just compensation for the 68,969 square-meter Property at P50 per square meter. National
Power Corporation is directed to pay legal interest at 6% per annum on the amount adjudged from 6 September 1979 until fully paid. Upon National Power Corporation's payment of the full
amount, Antonino Pobre is ordered to execute a Deed of Conveyance of the Property in National Power Corporation's favor. National Power Corporation is further ordered to pay temperate
and exemplary damages of P50,000 and P100,000, respectively. No costs.
EMINENT DOMAIN
Republic of the Philippines v. Lim
REPUBLIC OF THE PHILIPPINES, defendant-appellant
vs.
VICENTE LIM, plaintiff-appellee
G.R. No. 161656
June 29, 2005
Ponente: Sandoval-Gutierrez
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Nature of Case:
This is a petition for review of the decision dated July 1, 2002 of the Regional Trial Court, Branch 23, Cebu City upholding the validity of the City of Cebus Ordinance No. 1843, as well as
the lower courts order dated August 26, 2002 denying petitioners motion for reconsideration.
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FACTS
In 1964, the Province of Cebu donated 210 lots to the City of Cebu. One of these lots was Lot 1029, situated in Capitol Hills, Cebu City, with an area of 4,048 square meters. In 1965,
petitioners purchased Lot 1029 on installment basis. But then, in late 1965, the 210 lots, including Lot 1029, reverted to the Province of Cebu. Consequently, the province tried to annul the sale
of Lot 1029 by the City of Cebu to the petitioners. This prompted the latter to sue the province for specific performance and damages in the then Court of First Instance.
In this appeal, petitioners argue that Ordinance No. 1843 is unconstitutional as it sanctions the expropriation of their property for the purpose of selling it to the squatters, an endeavor contrary
to the concept of "public use" contemplated in the Constitution. They allege that it will benefit only a handful of people. The ordinance, according to petitioners, was obviously passed for
politicking, the squatters undeniably being a big source of votes.
ISSUE/S of the CASE
Whether or not the intended expropriation by the City of Cebu of the land owned by petitioners contravenes the Constitution and applicable laws
ACTIONS of the COURT
RTC: Petition dismissed.
SC: Constrained to nullify the subject ordinance.
COURT RATIONALE ON THE ABOVE FACTS
Under Section 48 of RA 7160, otherwise known as the Local Government Code of 1991, local legislative power shall be exercised by the Sangguniang Panlungsod of the city. The legislative
acts of the Sangguniang Panlungsod in the exercise of its lawmaking authority are denominated ordinances.
Local government units have no inherent power of eminent domain and can exercise it only when expressly authorized by the legislature. By virtue of RA 7160, Congress conferred upon local
government units the power to expropriate. Ordinance No. 1843 was enacted pursuant to Section 19 of RA 7160:
SEC. 19. Eminent Domain. A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or
purpose, or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws xxx. (italics
supplied).
Ordinance No. 1843 which authorized the expropriation of petitioners lot was enacted by the SP of Cebu City to provide socialized housing for the homeless and low-income residents of the
City.
However, while we recognize that housing is one of the most serious social problems of the country, local government units do not possess unbridled authority to exercise their power of
eminent domain in seeking solutions to this problem.
There are two legal provisions which limit the exercise of this power: (1) no person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the
equal protection of the laws; and (2) private property shall not be taken for public use without just compensation. Thus, the exercise by local government units of the power of eminent domain
is not absolute. In fact, Section 19 of RA 7160 itself explicitly states that such exercise must comply with the provisions of the Constitution and pertinent laws.
For an ordinance to be valid, it must not only be within the corporate powers of the city or municipality to enact but must also be passed according to the procedure prescribed by law. It must
be in accordance with certain well-established basic principles of a substantive nature. These principles require that an ordinance (1) must not contravene the Constitution or any statute (2)
must not be unfair or oppressive (3) must not be partial or discriminatory (4) must not prohibit but may regulate trade (5) must be general and consistent with public policy, and (6) must not be
unreasonable.
Ordinance No. 1843 failed to comply with the foregoing substantive requirements.
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Respondent Apolonio Gopuco, Jr. was the owner of a lot located in the vicinity of the Lahug Airport in Cebu City.
National Airport Corporation (NAC) informed the owners of the various lots surrounding the Lahug Airport that the government was acquiring their lands for purposes of expansion.
Some owners agreed to sell their lands with the assurance that they would be able to repurchase the same when these would no longer be used by the airport. Respondent refused to do
so.
Civil Aeronautics Administration (CAA), formerly NAC filed a complaint with CFI of Cebu for for the expropriation of Lot No. 72 and its neighboring realties. The complaint was
granted by the CFI who ordered the ff:
. Declared the expropriation is justified and in lawful exercise of the right of //eminent domain.
2. Declaring a balance of P1,990 in favor of Apolonio Go Puco, Jr. with legal interest from November 16, 1947 until fully paid;
3. Ordering the landowners to deliver the TCTs and transfer the ownership to the petitioner.
No appeal was taken so the decision of the CFI becomes final and executory, hence, the title was transferred to the Republic of the Philippines.
Upon opening of the Mactan-Cebu International Airport Authority (MCIAA), the Lahug Airport was ordered closed by Pres. Cory.
Gopuco wrote to the Bureau of Air Transportation seeking the return of his lot and offering to return the money previously receive.
RA 6958 was enacted transferring the assets of the Lahug Airport to MCIAA.
Respondent filed an amended complaint for recovery of ownership of his lot against the Air Transportation Office considering that the original purpose for which the property was
expropriated had ceased or otherwise been abandoned. He also alleged that they were assured that the expropriated lots would be resold to them for the same price in the event that the
Lahug Airport would be abandoned.
ISSUE: WON the private property expropriated for a particular public use be returned to its former owner when that particular public use is abandoned?
ACTIONS OF THE COURT:
RTC: The complaint is DISMISSED and ordered the herein respondent to pay the MCIAA exemplary damages, litigation expenses and costs.
Court of Appeals: REVERSED the decision. The petitioners were ordered to reconvey Lot No. 72 to Gopuco upon payment of the reasonable price and deleted the award to the petitioners of
exemplary damages, litigation expenses and costs.
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Eminent domain is generally described as the highest and most exact idea of property remaining in the government that may be acquired for some public purpose through a method in the
nature of a forced purchase by the State. Also often referred to as expropriation, an inherent power of sovereignty and need not be clothed with any constitutional gear to exist;
When land has been acquired for public use in fee simple, unconditionally, either by the exercise of eminent domain or by purchase, the former owner retains no rights in the land, and the
public use may be abandoned or the land may be devoted to a different use, without any impairment of the estate or title acquired, or any reversion to the former owner. In the present case,
Gopuco failed to present any evidence at all concerning a right of repurchase in his favour, neither he is not a party to the compromise agreements, thus, he cannot legally invoke the same.
Valid and Definite Offer - Eminent Domain
JESUS IS LORD CHRISTIAN SCHOOL FOUNDATION, INC., vs MUNICIPALITY (now CITY) OF PASIG, METRO MANILA
JESUS IS LORD CHRISTIAN SCHOOL FOUNDATION, INC., petitioner,
vs.
MUNICIPALITY (now CITY) OF PASIG, METRO MANILA, respondent.
G.R. No. 152230
August 9, 2005
Ponente: CALLEJO, SR.
NATURE OF CASE
Petition for Review of CA decision and resolution
BRIEF
This is a petition for review of the Decision of the CA and its Resolution, denying the motion for reconsideration thereof. The assailed decision affirmed the order of the RTC of Pasig, Branch
160, declaring the respondent Municipality (now City) of Pasig as having the right to expropriate and take possession of the subject property.
FACTS
On April 1993, ordinance was approved by Sangguniang Bayan of Pasig authorizing the municipal mayor to initiate expropriation proceedings to acquire a portion of the property of Ching
Cuancos and appropriate its fund.
Municipality filed a complaint against Ching Cuancos for expropriation of the property under Section 19 of Republic Act (R.A.) No. 7160 (Local Government Code). Municipality alleged that
it notified Ching Cuancos, by letter, of its intention to purchase the portion of their property for public use as an access road but they refused to sell the portion.
Ching Cuangcos claimed that they had sold the property to JILCSFI since February 1993. It was purchased for the purpose of constructing a school building and a church as worship center.
ISSUES of the CASE
(1) whether the respondent complied with the requirement, under Section 19 of the Local Government Code, of a valid and definite offer to acquire the property prior to the filing of the
complaint; (2) whether its property which is already intended to be used for public purposes may still be expropriated by the respondent; and (3) whether the requisites for an easement for
right-of-way under Articles 649 to 657 of the New Civil Code may be dispensed with.
ACTIONS of the COURT
RTC: declared Municipality (now City) of Pasig has the right to expropriate and take possession of the subject property
CA: denied motion for reconsideration, affirmed RTC order
SC: granted Petition. The Decision and Resolution of the CA are REVERSED AND SET ASIDE. The RTC is ordered to dismiss the complaint of the respondent without prejudice to the
refiling thereof.
COURT RATIONALE
Eminent Domain: Nature and Scope
It is an indispensable attribute of sovereignty; a power grounded in the primary duty of government to serve the common need and advance the general welfare. Thus, the right of eminent
domain appertains to every independent government without the necessity for constitutional recognition. The provisions found in modern constitutions of civilized countries relating to the
taking of property for the public use do not by implication grant the power to the government, but limit the power which would, otherwise, be without limit. Thus, our own Constitution
provides that [p]rivate property shall not be taken for public use without just compensation. Furthermore, the due process and equal protection clauses act as additional safeguards against the
arbitrary exercise of this governmental power.
Strict Construction and Burden of Proof
The grant of the power of eminent domain to local government units is grounded on Section 19 of R.A. No. 7160 which reads:
SEC. 19. Eminent Domain. A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose, or
welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws; Provided, however, That the power of
eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted: Provided, further, That the local government
unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the
fair market value of the property based on the current tax declaration of the property to be expropriated: Provided, finally, That the amount to be paid for the expropriated property shall be
determined by the proper court based on the fair market value at the time of the taking of the property.
The following requisites for the valid exercise of the power of eminent domain by a local government unit must be complied with:
1. An ordinance is enacted by the local legislative council authorizing the local chief executive, in behalf of the local government unit, to exercise the power of eminent domain or pursue
expropriation proceedings over a particular private property.
2. The power of eminent domain is exercised for public use, purpose or welfare, or for the benefit of the poor and the landless.
3. There is payment of just compensation, as required under Section 9, Article III of the Constitution, and other pertinent laws.
4. A valid and definite offer has been previously made to the owner of the property sought to be expropriated, but said offer was not accepted.
Valid and Definite Offer
Article 35 of the Rules and Regulations Implementing the Local Government Code provides:
ARTICLE 35. Offer to Buy and Contract of Sale.
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(a) The offer to buy private property for public use or purpose shall be in writing. It shall specify the property sought to be acquired, the reasons for its acquisition, and the price offered.
(b) If the owner or owners accept the offer in its entirety, a contract of sale shall be executed and payment forthwith made.
(c) If the owner or owners are willing to sell their property but at a price higher than that offered to them, the local chief executive shall call them to a conference for the purpose of reaching an
agreement on the selling price. The chairman of the appropriation or finance committee of the sanggunian, or in his absence, any member of the sanggunian duly chosen as its
representative, shall participate in the conference. When an agreement is reached by the parties, a contract of sale shall be drawn and executed.
(d) The contract of sale shall be supported by the following documents:
(1) Resolution of the sanggunian authorizing the local chief executive to enter into a contract of sale. The resolution shall specify the terms and conditions to be embodied in the contract;
(2) Ordinance appropriating the amount specified in the contract; and
(3) Certification of the local treasurer as to availability of funds together with a statement that such fund shall not be disbursed or spent for any purpose other than to pay for the purchase
of the property involved.
It is incumbent upon the condemnor to exhaust all reasonable efforts to obtain the land it desires by agreement. Failure to prove compliance with the mandatory requirement will result in the
dismissal of the complaint. The purpose of the requirement of a valid and definite offer to be first made to the owner is to encourage settlements and voluntary acquisition of property needed
for public purposes in order to avoid the expense and delay of a court action.
In the present case, the only evidence adduced by the respondent to prove its compliance with Section 19 of the Local Government Code is the photocopy of the letter purportedly bearing the
signature of Engr. Jose Reyes, to only one of the co-owners, Lorenzo Ching Cuanco. It is merely an invitation for only one of the co-owners, Lorenzo Ching Cuanco, to a conference to discuss
the project and the price that may be mutually acceptable to both parties and not a valid and definite offer.
Public Necessity
The contention of the petitioner that its property can no longer be expropriated by the respondent because it is intended for the construction of a place for religious worship and a school
for its members is rejected. It has been explained as early as Sea v. Manila Railroad Co., that:
A historical research discloses the meaning of the term public use to be one of constant growth. As society advances, its demands upon the individual increases and each demand is a new use
to which the resources of the individual may be devoted for whatever is beneficially employed for the community is a public use.
The subject property is expropriated for the purpose of constructing a road. The respondent is not mandated to comply with the essential requisites for an easement of right-of-way under
the New Civil Code. Case law has it that in the absence of legislative restriction, the grantee of the power of eminent domain may determine the location and route of the land to be taken
unless such determination is capricious and wantonly injurious. Expropriation is justified so long as it is for the public good and there is genuine necessity of public character. Government may
not capriciously choose what private property should be taken.
However, as correctly pointed out by the petitioner, there is no showing in the record that an ocular inspection was conducted during the trial. If, at all, the trial court conducted an ocular
inspection of the subject property during the trial, the petitioner was not notified thereof. The petitioner was, therefore, deprived of its right to due process. An ocular inspection is part of the
trial as evidence is thereby received and the parties are entitled to be present at any stage of the trial. Consequently, any factual finding of the court based on the said inspection has no
probative weight. The findings of the trial court based on the conduct of the ocular inspection must be rejected.
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October 6, 2008
MARINDUQUE MINING AND INDUSTRIAL CORPORATION and INDUSTRIAL ENTERPRISES, INC., petitioners,
vs.
COURT OF APPEALS and NATIONAL POWER CORPORATION, respondents.
DECISION
CARPIO, J.:
The Case
1
This petition for review seeks the reversal of the 27 February 2003 Decision and 17 November 2003 Resolution of the Court of Appeals in CA-G.R. SP No. 72402. In its 27 February 2003
4
5
Decision, the Court of Appeals set aside the 15 May 2002 and 24 June 2002 Orders of Judge Mamindiara P. Mangotara, Presiding Judge of the Regional Trial Court of Lanao del Norte,
Branch 1, Iligan City (trial court), and ordered the trial court to give due course to respondent National Power Corporation's (NAPOCOR) appeal. In its 17 November 2003 Resolution, the
Court of Appeals denied the motion for reconsideration of petitioners Marinduque Mining and Industrial Corporation and Industrial Enterprises, Inc. (petitioners).
The Facts
6
On 1 June 1999, NAPOCOR filed a complaint for expropriation against petitioners for the construction of the AGUS VI Kauswagan 69 KV Transmission Line Project. NAPOCOR sought to
expropriate 7,875 square meters of petitioners' property covered by Transfer Certificate of Title Nos. T-955 and T-956.
Petitioners filed their answer with counterclaim and alleged that the expropriation should cover not only 7,875 square meters but the entire parcel of land. Petitioners claimed that the
expropriation would render the remaining portion of their property valueless and unfit for whatever purpose.
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10
In its 5 December 2001 Decision, the trial court fixed the fair market value of the 7,875-square meter lot at P115 per square meter. The trial court also directed the commissioners to submit a
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report and determine the fair market value of the "dangling area," consisting of 58,484 square meters, affected by the installation of NAPOCOR's transmission lines.
11
NAPOCOR filed a motion for reconsideration. In its Order dated 4 February 2002, the trial court denied NAPOCOR's motion.
12
In its 19 March 2002 Supplemental Decision, the trial court declared that the "dangling area" consisted of 48,848.87 square meters and fixed its fair market value at P65 per square meter. The
trial court ruled that petitioners are entitled to consequential damages because NAPOCOR's expropriation impaired the value of the "dangling area" and deprived petitioners of the ordinary use
of their property.
13
NAPOCOR filed a motion for reconsideration. In its Order dated 24 June 2002, the trial court denied the motion for being moot and academic because on 2 April 2002, NAPOCOR filed a
14
Notice of Appeal of the 19 March 2002 Supplemental Decision.
On the other hand, petitioners moved for the execution of the trial court's 5 December 2001 Decision and 19 March 2002 Supplemental Decision. In its 26 April 2002 Order, the trial court
partially granted petitioners' motion and, on 2 May 2002, issued the writ of execution for the 5 December 2001 Decision.
On 29 April 2002, petitioners filed a "motion to strike out or declare as not filed the notice of appeal dated April 2, 2002; to declare the supplemental decision as final and executory; and to
15
issue the corresponding writ of execution thereon." Petitioners argued that NAPOCOR violated Section 11, Rule 13 of the Rules of Court because NAPOCOR filed and served the notice of
appeal by registered mail. According to petitioners, NAPOCOR had all the vehicles and manpower to personally serve and file the notice of appeal.
NAPOCOR opposed petitioners' motion and alleged that its legal office is "severely undermanned" with only one vehicle and one employee, acting as secretary, handling 300 active cases in
Mindanao. NAPOCOR also added that it was highly irregular for petitioners to question its mode of service and filing only at this stage of the proceedings because since the inception of the
case, NAPOCOR had resorted to registered mail instead of personal service.
In its 15 May 2002 Order, the trial court granted petitioners' motion and denied NAPOCOR's notice of appeal. The trial court gave more credence to petitioners' allegations and declared that
NAPOCOR's explanation was a "patent violation" of the Rules. The trial court considered the notice of appeal as not filed at all and, since the period of appeal had already expired, declared its
19 March 2002 Supplemental Decision final and executory.
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NAPOCOR filed a motion for reconsideration. In its 24 June 2002 Order, the trial court denied NAPOCOR's motion.
On 23 August 2002, NAPOCOR filed a special civil action for certiorari with a prayer for a temporary restraining order before the Court of Appeals. NAPOCOR argued that the trial court
acted without or in excess of jurisdiction and gravely abused its discretion when it denied NAPOCOR's notice of appeal of the 19 March 2002 Supplemental Decision on the sole ground that it
was not filed and served personally.
The Ruling of the Court of Appeals
In its 27 February 2003 Decision, the Court of Appeals ruled in NAPOCOR's favor and set aside the trial court's 15 May 2002 and 24 June 2002 Orders. The Court of Appeals also ordered the
trial court to give due course to NAPOCOR's appeal. The Court of Appeals declared that the trial court acted whimsically and capriciously when it denied the notice of appeal and declared the
19 March 2002 Supplemental Decision final and executory. The Court of Appeals noted that service by registered mail was previously resorted to by both parties and yet, this was the first time
petitioners questioned NAPOCOR's mode of service. The Court of Appeals added that the trial court should have given due course to NAPOCOR's appeal because of the large amount of
public funds involved considering the significant disparity between the area sought to be expropriated and the "dangling area." The Court of Appeals also said that the Rules should be liberally
construed to effect substantial justice.
Petitioners filed a motion for reconsideration. In its 17 November 2003 Resolution, the Court of Appeals denied petitioners' motion.
Hence, this petition.
The Issues
Petitioners raise the following issues:
1. Whether the Court of Appeals erred in ruling that the trial court's issuance of the 15 May 2002 and 24 June 2002 Orders was attended with grave abuse of discretion amounting to
lack of jurisdiction; and
2. Whether the Court of Appeals erred in ruling that the 19 March 2002 Supplemental Decision is not final and executory.
The Ruling of the Court
The petition has no merit.
On NAPOCOR's failure to comply with Section 11,
Rule 13 of the Rules of Court
Petitioners maintain that the trial court had the "wide latitude of discretion" to consider the notice of appeal as not filed at all because NAPOCOR failed to comply with the Rules.
On the other hand, NAPOCOR argues that the Rules allow resort to other modes of service and filing as long as the pleading was accompanied by a written explanation why service or filing
was not done personally. NAPOCOR maintains that it complied with the Rules because the notice of appeal contained an explanation why NAPOCOR resorted to service and filing by
17
registered mail - due to lack of manpower to effect personal service. NAPOCOR also insists that petitioners are estopped from questioning its mode of service and filing because since the
inception of the case, NAPOCOR had resorted to registered mail and yet, petitioners only raised this issue when the notice of appeal was filed.
Under Section 11, Rule 13 of the Rules, personal service of pleadings and other papers is the general rule while resort to the other modes of service and filing is the exception. When recourse
18
is made to the other modes, a written explanation why service or filing was not done personally becomes indispensable. If no explanation is offered to justify resorting to the other modes, the
discretionary power of the court to expunge the pleading comes into play.
19
20
21
In this case, NAPOCOR complied with the Rules. NAPOCOR's notice of appeal sufficiently explained why the notice of appeal was served and filed by registered mail - due to lack of
22
manpower to effect personal service. This explanation is acceptable for it satisfactorily shows why personal service was not practicable. Moreover, the Court of Appeals correctly considered
the importance of the issue involved in the case. Therefore, the Court of Appeals did not err when it ruled that the trial court acted with grave abuse of discretion in the issuance of the 15 May
2002 and 24 June 2002 Orders.
On NAPOCOR's failure to file a record on appeal
Petitioners maintain that NAPOCOR's appeal should be dismissed because NAPOCOR failed to file a record on appeal and consequently, it failed to comply with the material data rule.
23
NAPOCOR argues that in this case the filing of a record on appeal is "superfluous" because the trial court had nothing else to resolve as the 19 March 2002 Supplemental Decision finally
disposed of the case. Moreover, NAPOCOR states that petitioners only raised this issue in petitioners' comment before the Court of Appeals.
24
No record on appeal shall be required except in special proceedings and other cases of multiple or separate appeals where the law or the Rules of Court so require. The reason for multiple
25
appeals in the same case is to enable the rest of the case to proceed in the event that a separate and distinct issue is resolved by the trial court and held to be final. In such a case, the filing of a
record on appeal becomes indispensable since only a particular incident of the case is brought to the appellate court for resolution with the rest of the proceedings remaining within the
jurisdiction of the trial court.
26
Jurisprudence recognizes the existence of multiple appeals in a complaint for expropriation because there are two stages in every action for expropriation. The first stage is concerned with the
27
determination of the authority of the plaintiff to exercise the power of eminent domain and the propriety of its exercise in the context of the facts involved in the suit. The order of
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expropriation may be appealed by any party by filing a record on appeal. The second stage is concerned with the determination by the court of the just compensation for the property
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sought to be expropriated. A second and separate appeal may be taken from this order fixing the just compensation.
In this case, since the trial court fully and finally resolved all conceivable issues in the complaint for expropriation, there was no need for NAPOCOR to file a record on appeal. In its 5
December 2001 Decision, the trial court already determined NAPOCOR's authority to exercise the power of eminent domain and fixed the just compensation for the property sought to be
expropriated. NAPOCOR filed a motion for reconsideration. But after the trial court denied the motion, NAPOCOR did not appeal the decision anymore. Then, in its 19 March 2002
Supplemental Decision, the trial court fixed the just compensation for the "dangling area." NAPOCOR filed a motion for reconsideration and the trial court denied the motion. NAPOCOR then
filed a notice of appeal. At this stage, the trial court had no more issues to resolve and there was no reason why the original records of the case must remain with the trial court. Therefore, there
was no need for NAPOCOR to file a record on appeal because the original records could already be sent to the appellate court.
Moreover, petitioners did not raise this issue in their "motion to strike out or declare as not filed the notice of appeal dated April 2, 2002; to declare the supplemental decision as final and
executory; and to issue the corresponding writ of execution thereon" before the trial court. It is settled that an issue not raised during the trial could not be raised for the first
time on appeal as to do so would be offensive to the basic rules of fair play, justice, and due process.
31
WHEREFORE, we DENY the petition. We AFFIRM the 27 February 2003 Decision and 17 November 2003 Resolution of the Court of Appeals in CA-G.R. SP No. 72402.
SO ORDERED.
Fil-Homes filed a complaint for unlawful detainer against petitioners. Respondent alleged that since 1980, they have made demands for petitioners to vacate, but they
went unheeded. Petitioners countered that there is no possession by tolerance for they have been in adverse, continuous and uninterrupted possession of the lots for
more than 30 years; and that respondents predecessor-in-interest, Pilipinas Development Corporation, had no title to the lots. During the pendency of the case, the city
of Paranaque filed a case of expropriation. A writ of possession was granted to the city.
The respondent won in the unlawful detainer case, but the RTC reversed the ruling upon appeal reasoning that there was no "tolerance" on the part of Respondents. On
appeal of the Respondents to the CA, it upheld the decision of the MeTC. Thus, the current petition.
ISSUE/S of the CASE:
(a) Whether the petitioner can claim any rights over the lots on the basis of the issuance of a writ of possession in the expropriation proceedings by the City.
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Judgment is rendered in favor of the plaintiff and against the defendants Leticia and Ervin Abad et. als. Ordering the latter and all persons claiming rights under them
to VACATE andSURRENDER possession of the premises.
RTC
As a general rule, ejectment proceedings, due to its summary nature, are not suspended or their resolution held in abeyance despite the pendency of a civil action regarding ownership.
In the present case, the mere issuance of a writ of possession in the expropriation proceedings did not transfer ownership of the lots in favor of the City. Such issuance was only the first stage
in expropriation.
Expropriation of lands consists of two stages:
The first is concerned with the determination of the authority of the plaintiff to exercise the power of eminent domain and the propriety of its exercise in the context of the facts
involved in the suit. It ends with an order, if not of dismissal of the action, "of condemnation declaring that the plaintiff has a lawful right to take the property sought to be condemned, for the
public use or purpose described in the complaint, upon the payment of just compensation to be determined as of the date of the filing of the complaint.
The second phase of the eminent domain action is concerned with the determination by the court of "the just compensation for the property sought to be taken." This is done by the
court with the assistance of not more than three (3) commissioners.
It is only upon the completion of these two stages that expropriation is said to have been completed. The process is not complete until payment of just compensation. Accordingly, the
issuance of the writ of possession in this case does not write finis to the expropriation proceedings. To effectuate the transfer of ownership, it is necessary for the NPC to pay the property
owners the final just compensation.
There is even no evidence that judicial deposit had been made in favor of respondents prior to the City's possession of the lots respecting petitioners claim that they have been named
beneficiaries of the lots, the city ordinance authorizing the initiation of expropriation proceedings does not state so.
Petitioners cannot thus claim any right over the lots on the basis of the ordinance. Even if the lots are eventually transferred to the City, it is non sequitur for petitioners to claim that
they are automatically entitled to be beneficiaries thereof. For certain requirements must be met and complied with before they can be considered to be beneficiaries.
Doctrine:
Power of Eminent Domain
G.R. No. 156684
April 6, 2011
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The power of eminent domain is lodged in the legislative branch of government, which may delegate the exercise thereof to LGUs, other public entities and public utilities. An LGU may
therefore exercise the power to expropriate private property only when authorized by Congress and subject to the latters control and restraints, imposed "through the law conferring the power
or in other legislations." In this case, Section 19 of RA 7160, which delegates to LGUs the power of eminent domain, also lays down the parameters for its exercise. It provides as follows:
"Section 19. Eminent Domain. A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose,
or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws: Provided, however, That the power
of eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted: Provided, further, That the local government
unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the
fair market value of the property based on the current tax declaration of the property to be expropriated: Provided, finally, That, the amount to be paid for the expropriated property shall be
determined by the proper court, based on the fair market value at the time of the taking of the property." (Emphasis supplied)
Thus, the following essential requisites must concur before an LGU can exercise the power of eminent domain:
1. An ordinance is enacted by the local legislative council authorizing the local chief executive, in behalf of the LGU, to exercise the power of eminent domain or pursue expropriation
proceedings over a particular private property.
2. The power of eminent domain is exercised for public use, purpose or welfare, or for the benefit of the poor and the landless.
3. There is payment of just compensation, as required under Section 9 Article III of the Constitution and other pertinent laws.
4. A valid and definite offer has been previously made to the owner of the property sought to be expropriated, but said offer was not accepted.
In the case at bar, the local chief executive sought to exercise the power of eminent domain pursuant to a resolution of the municipal council. Thus, there was no compliance with the first
requisite that the mayor be authorized through an ordinance. Petitioner cites Camarines Sur vs. Court of Appeals to show that a resolution may suffice to support the exercise of eminent
domain by an LGU. This case, however, is not in point because the applicable law at that time was BP 337, the previous Local Government Code, which had provided that a mere resolution
would enable an LGU to exercise eminent domain. In contrast, RA 7160, the present Local Government Code which was already in force when the Complaint for expropriation was filed,
explicitly required an ordinance for this purpose.
We are not convinced by petitioners insistence that the terms "resolution" and "ordinance" are synonymous. A municipal ordinance is different from a resolution. An ordinance is a law, but a
resolution is merely a declaration of the sentiment or opinion of a lawmaking body on a specific matter. An ordinance possesses a general and permanent character, but a resolution is
temporary in nature. Additionally, the two are enacted differently -- a third reading is necessary for an ordinance, but not for a resolution, unless decided otherwise by a majority of all the
Sanggunian members.
If Congress intended to allow LGUs to exercise eminent domain through a mere resolution, it would have simply adopted the language of the previous Local Government Code. But Congress
did not. In a clear divergence from the previous Local Government Code, Section 19 of RA 7160 categorically requires that the local chief executive act pursuant to an ordinance. Indeed, "
[l]egislative intent is determined principally from the language of a statute. Where the language of a statute is clear and unambiguous, the law is applied according to its express terms, and
interpretation would be resorted to only where a literal interpretation would be either impossible or absurd or would lead to an injustice." In the instant case, there is no reason to depart from
this rule, since the law requiring an ordinance is not at all impossible, absurd, or unjust.
Moreover, the power of eminent domain necessarily involves a derogation of a fundamental or private right of the people. Accordingly, the manifest change in the legislative language from
"resolution" under BP 337 to "ordinance" under RA 7160 demands a strict construction. "No species of property is held by individuals with greater tenacity, and is guarded by the
Constitution and laws more sedulously, than the right to the freehold of inhabitants. When the legislature interferes with that right and, for greater public purposes, appropriates the land of an
individual without his consent, the plain meaning of the law should not be enlarged by doubtful interpretation."
Verily, there can be no prohibition against a procedure whereby the immediate possession of the land under expropriation proceedings may be taken, provided always that due provision is
20
made to secure the prompt adjudication and payment of just compensation to the owner. This bar against prohibition comes from the nature of the power of eminent domain as necessitating
21
the taking of private land intended for public use, and the interest of the affected landowner is thus made subordinate to the power of the State. Once the State decides to exercise its power of
eminent domain, the power of judicial review becomes limited in scope, and the courts will be left to determine the appropriate amount of just compensation to be paid to the affected
landowners. Only when the landowners are not given their just compensation for the taking of their property or when there has been no agreement on the amount of just compensation may the
remedy of prohibition become available.
Here, however, the remedy of prohibition was not called for, considering that only a resolution expressing the desire of the Sangguniang Panglungsod to expropriate the petitioners property
was issued. As of then, it was premature for the petitioners to mount any judicial challenge, for the power of eminent domain could be exercised by the City only through the filing of a verified
complaint in the proper court. Before the City as the expropriating authority filed such verified complaint, no expropriation proceeding could be said to exist. Until then, the petitioners as the
owners could not also be deprived of their property under the power of eminent domain.
Stages in Action for Expropriation
Proper Remedy (Certiorari vs Ordinary Appeal)
REPUBLIC vs. LEGASPI
REPUBLIC OF THE PHILIPPINES (UNIVERSITY OF THE PHILIPPINES), petitioner,
vs.
RODOLFO L. LEGASPI, SR., QUEROBIN L. LEGASPI, OFELIA LEGASPI-MUELA, PURISIMA LEGASPI VDA. DE MONDEJAR, VICENTE LEGASPI, RODOLGO LEGASPI II, and
SPOUSES ROSALINA LIBO-ON and DOMINADOR LIBO-ON, respondents
G.R. No. 177611
April 18, 2012
Ponente: PEREZ, J.
Nature of Case:
Petition for Review Under Rule 45
BRIEF:
This is an appeal assailing the decision and resolution of the Court of Appeals denying for lack of merit the Rule 65 petition for certiorari filed by the petitioner, thru the University of the
Philippines Visayas (UPV), for the nullification of the orders issued by the RTC.
FACTS:
In December 1978, Rosalina Libo-on sold her property to the UPV which the latter immediately took possession in line with its educational development plan and stated building therein road
networks, infrastructure, and school facilities. However, Rosalina informed UPV that she is rescinding the sale of the property because she is no longer the owner of said property having
conveyed the same thru barter to the other respondents herein on September 1978. Said property was already subdivided and separately registered under the name of Legaspi, et al.
UPV thereafter filed a complaint for eminent domain against Legaspi et al. after efforts to negotiate with respondents failed. The RTC issued an order of condemnation on 3 out of the 10
parcels of land in upholding the right to expropriate of UPV. An order fixing the just compensation was subsequently issued by the RTC on the 3 expropriated properties. The condemnation
proceedings continued for the other 7 parcels of land.
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On November 2003, the RTC issued a condemnation order the last 7 properties EXCLUDING the area occupied by Villa Marina Beach (VMB). UPV filed a motion for reconsideration on the
ground that the exclusion of VMB area from the condemned lots if bereft of legal basis and contrary to the evidence presented in the case. Om the other hand, the respondents also filed their
MR alleging that the 7 lots ordered for expropriation are occupied by VMB. The RTC then issued the order denying the MR of petitioner herein and granted the manifestation of the
respondents thereby denying expropriation of the 7 properties.
UPV filed a petition for certiorari and mandamus under Rule 65 before the CA on the ground of grave abuse of discretion. However, the CA dismissed the petition on the ground that under the
1997 Rules of Civil Procedures, the proper remedy from the assailed orders was an ordinary appeal which, once lost, cannot be substituted by a Rule 65 petition for certiorari and mandamus.
ISSUE:
Whether an ordinary appeal, under Rule 67, can be substituted by a Rule 65 petition and mandamus.
Just Compensation
NPC vs. YCLA Sugar Dev't Corp
NATIONAL POWER CORPORATION, petitioner
vs.
YCLA SUGAR DEVELOPMENT CORPORATION, respondent
GR No. 193936
December 11, 2013
Ponente: Reyes, J.
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Before this Court is a petition for review on certiorari under Rule 45 seeking to annul and set aside the the CA decision affirming the RTC's decision in fixing the amount of just compensation
at P1,000.00 per sq m of the respondent's properties subject for expropriation.
Facts:
NPC is a government owned and controlled corporation created for the purpose of undertaking the development of hydroelectric power throughout the Philippines. It is thus authorized to
exercise the power of eminent domain to carry out the said purpose. Respondent YCLA Sugar Devt Corp is the registered owner of three parcels of land situated in Puerto Galera, Oriental
Mindoro. In order to complete its 69 KV Calapan-Mamburao Island Grid Project in Puerto Galera, NPC had to construct transmission lines that would traverse several private properties,
including the said parcels of land owned by YCLA. Accordingly, NPC filed a Complaint for expropriation with the RTC against YCLA and several other individuals. The NPC sought the
expropriation of a portion of the parcels of land owned by the said defendants for the acquisition of an easement of right-of-way over areas that would be affected by the construction of
transmission lines. The portion of YCLAs properties that would be affected by the construction of NPCs transmission lines has an aggregate area of 5,846 square meters. YCLA filed its
Answer alleging that the Complaint should be dismissed outright due to NPCs failure to allege the public use for the intended expropriation of its properties.
The parties moved for the constitution of a Board of Commissioners to be appointed by the RTC to determine the reasonable amount of just compensation to be paid by the NPC. Meanwhile,
the RTC, acting on NPCs urgent ex- parte motion, issued a writ of possession placing NPC in possession of the properties sought to be expropriated. Board of Commissioners fixed the
amount of just compensation of the subject properties at P500.00 per sq m. YCLA objected to the amount claiming that the amount of just compensation should be fixed at P900.00 per sq m
considering the improvements in their properties. Amount for just compensation was redetermined after YCLA, upon the court's order submitted supporting documents on its position on the
proper valuation of the subject properties. Its motion, asking the RTC to direct the Board of Commissioners to conduct an ocular inspection over the subject properties and, thereafter,
amend/revise the Board of Commissioners Report was granted. The Board of Commissioners submitted its second Report fixing the just compensation of the at P1,000.00 per sq m. The RTC
rendered a Decision which adopted the report and recommendation of the Board of Commissioners.
NPC appealed to CA contending that the amount of just compensation is too excessive considering that the subject properties were barren and undeveloped agricultural lands at the time it
instituted the action for expropriation. But the CA affirmed the RTC's decision.
Thus, thus petition.
Actions of the Court
RTC: Denied
CA: Denied
SC: Partially granted
Issue:
Whether the RTC and the CA had sufficient basis in arriving at the questioned amount of just compensation of the subject properties.
Ruling:
No.
In expropriation proceedings, just compensation is defined as the full and fair equivalent of the property. The measure is not the takers gain, but the owners loss. The word "just" is used to
intensify the meaning of the word "compensation" and to convey thereby the idea that the equivalent to be rendered for the property to be taken shall be real, substantial, full and ample. The
constitutional limitation of "just compensation" is considered to be a sum equivalent to the market value of the property, broadly defined as 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.
It is settled that the amount of just compensation is to be ascertained as of the time of the taking, which usually coincides with the commencement of the expropriation proceedings. Where the
institution of the action precedes entry into the property, the amount of just compensation is to be ascertained as of the time of the filing of the complaint.
In this case, both the RTC and the CA relied heavily on the Board of Commissioners Report which was arrived at after conducting an ocular inspection of the subject properties. However, the
recommendation as to the amount of just compensation was based on the prevailing market value of the subject properties in 2003. What escaped the attention of the lower courts is that the
prevailing market value of the subject properties in 2003 cannot be used to determine the amount of just compensation considering that the Complaint for expropriation was filed by NPC on
December 2, 1997.
Further, the Court notes that the Board of Commisioners merely alleged that its members arrived at the amount ofP1,000.00 per sq m as just compensation for the subject properties based on
actual sales, presumably of surrounding parcels of land, and on the opinion of "reliable persons" that were interviewed. However, the Report is not supported by any corroborative documents
such as sworn declarations of the "reliable persons" that were supposedly interviewed.
The trial court, in expropriation cases, may accept or reject, whether in whole or in part, the report submitted by the Board of Commissioners, which is merely advisory and recommendatory in
character. Considering that the legal basis for the determination of just compensation for the subject properties is insufficient, the respective Decisions of the RTC and the CA should be set
aside. It is unsupported by any documentary evidence and its recommendation as regards the amount of just compensation.
SC Ruling:
WHEREFORE, in consideration of the foregoing disquisitions, the instant petition is PARTIALLY GRANTED. The Decision of the Court of Appeals and the Decision of the RTC of Calapan
City, Oriental Mindoro are hereby SET ASIDE. This case is remanded to the trial court for the proper determination of just compensation, in conformity with this Decisi
G.R. NO. 172551 : JANUARY 15, 2014
LAND BANK OF THE PHILIPPINES, Petitioner, v. YATCO AGRICULTURAL ENTERPRISES, Respondent.
BRION, J.:
FACTS:
Respondent Yatco Agricultural Enterprises (Yatco) was the registered of owner of a 27-hectare parcel of agricultural land (property) in Calamba, Laguna. On April 30, 1999, the government
placed the property under the coverage if its Comprehensive Agrarian Reform Program (CARP).
Land Bank of the Philippines (LBP) valued the property at P1,126,132.89. Yatco did not find the valuation acceptable and thus elevated the matter to the Department of Agrarian Reform
(DAR) Provincial Agrarian Reform Adjudicator (PARAD), which then conducted summary administrative proceedings for the determination of just compensation.
The PARAD valued the property at P16,543,800.00, using the property current market value. LBP did not move to reconsider the PARAD ruling. Instead it filed with the RTC-SAC a petition
for the judicial determination of just compensation.
RTC-SAC fixed the just compensation for the property at P200 per square meter based on the RTC branch 35 and 36. RTC-SAC did not give weight to the LBP evidence in justifying its
valuation, pointing out that the LBP failed to prove that it complied with the prescribed procedure and failed to consider the valuation in the Comprehensive Agrarian Reform Law (CARL).
The CA dismissed LBP appeal.
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ISSUE: Whether or not the RTC-SAC determination of just compensation for the property was proper?
HELD: The RTC-SAC determination of just compensation for the property was not proper.
Civil law : determination of just compensation under the DAR
The determination of just compensation is fundamentally a judicial function. Section 57 of R.A. No. 6657 explicitly vests the RTC-SAC the original and exclusive power to determine just
compensation for lands under CARP coverage. To guide the RTC-SAC in the exercise of its function, Section 17 of R.A. No. 6657 enumerates the factors required to be taken into account to
correctly determine just compensation.The law (under Section 49 of R.A. No. 6657) likewise empowers the DAR to issue rules for its implementation.The DAR thus issued DAR AO 598incorporating the law listed factors in determining just compensation into a basic formula that contains the details that take these factors into account.
That the RTC-SAC must consider the factors mentioned by the law (and consequently the DAR implementing formula) is not a novel concept. In Land Bank of the Philippines v. Sps. Banal,
we said that the RTC-SAC must consider the factors enumerated under Section 17 of R.A. No. 6657, as translated into a basic formula by the DAR, in determining just compensation.
In the recent case of Land Bank of the Philippines v. Honeycomb Farms Corporation, we again affirmed the need to apply Section 17 of R.A. No. 6657 and DAR AO5-98 in just compensation
cases.There, we considered the CA and the RTC in grave error when they opted to come up with their own basis for valuation and completely disregarded the DAR formula. The need to apply
the parameters required by the law cannot be doubted; the DAR administrative issuances, on the other hand, partake of the nature of statutes and have in their favor a presumption of legality.
Unless administrative orders are declared invalid or unless the cases before them involve situations these administrative issuances do not cover, the courts must apply them.
The RTC-SAC adopted Branch 36 valuation without any qualification or condition. Yet, in disposing of the present case, the just compensation that it fixed for the property largely differed
from the former.Note that Branch 36 fixed a valuation of P20.00 per square meter; while the RTC-SAC, in the present case, valued the property at P200.00 per square meter. Strangely, the
RTC-SAC did not offer any explanation nor point to any evidence, fact or particular that justified the obvious discrepancy between these amounts.
In ascertaining just compensation, the fair market value of the expropriated property is determined as of the time of taking. The ime of takingrefers to that time when the State deprived the
landowner of the use and benefit of his property, as when the State acquires title to the property or as of the filing of the complaint, per Section 4, Rule 67 of the Rules of Court.
As a final note and clarificatory reminder, we agree that the LBP is primarily charged with determining land valuation and compensation for all private lands acquired for agrarian reform
purposes. But this determination is only preliminary.The landowner may still take the matter of just compensation to the court for final adjudication.
National Power Corporation vs. Judge Angas, GRs 60225-26, 8 May 1992
Facts:
National Power Corporation filed a complaint of eminent domain for 2 lands in the regional trial court.I t was condemned and the just compensation was fixed at 6%. One
of the respondents (sittie batara)then filed an ex-parte motion for execution praying that petitioner be directed to pay her the unpaid balance of P14,300.00 for the lands
expropriated from her, including legal interest which she computed at6% per annum. The said motion was granted by the lower court. Thereafter, the lower court directed the
petitioner to deposit with its Clerk of Court the sums of money as adjudged in the joint decision dated June15, 1979. Petitioner complied with said order and deposited the sums of
money with interest computed at 6% per annum. On February 10, 1981, one of the private respondents(Pangonatan Cosna Tagol), filed with the trial court an ex-parte motion in Civil
Case No. 2248 praying, for the first time, that the legal interest on the just compensation awarded to her by the court be computed at 12% per annum as allegedly
"authorized under and by virtue of Circular No. 416 of the Central Bank issued pursuant to Presidential Decree No. 116and in a decision of the Supreme Court that legal interest
allowed in the judgment of the courts, in the absence of express contract, shall be computed at12% per annum." The other respondent (Batara) then followed and asked the court for
the same. Petitioner moved for a reconsideration arguing that the decision is already final and executory and cannot be modified. The court said that it merely amplifies its decision
and set the legal interest into 12% and denied the reconsideration. Central Bank Circular No. 416 reads: By virtue of the authority granted to it under Section 1of Act No. 2655, as
amended, otherwise known as the "Usury Law," the Monetary Board, in its Resolution No. 1622 dated July 29, 1974, has prescribed that the rate of interest for the loan or
forbearance of any money, goods or credits and the rate allowed in judgments, in the absence of express contract as to such rate of interest, shall be twelve per cent(12%)
per annum.
Issue:
Whether or not, in the computation of the legal rate of interest on just compensation for expropriated lands, the law applicable is Article 2209 of the Civil Code which prescribes a 6%
legal interest rate or Central Bank Circular No. 416 which fixed the legal interest rate at 12% per annum?
Held:
It is clear from the foregoing provision that the Central Bank circular applies only to loan or forbearance of money, goods or credits. The term "judgments" as used in Section 1 of
the Usury Law, as well as in Central Bank Circular No.416, should be interpreted to mean only judgments involving loan or forbearance of money, goods or credits, following
the principle of ejusdem generis. Under this doctrine, where general terms follow the designation of particular things or classes of persons or subjects, the general term will be
construed to comprehend those things or persons of the same class or of the same nature as those specifically enumerated. Obviously, therefore, Art. 2209 of the Civil
Code, and not Central Bank Circular No. 416, is the law applicable to the case at bar. Said law reads: Art. 2209. If the obligation consists in the payment of a sum of money, and the
debtor incurs a delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the interest agreed upon, and in the absence of stipulation, the
legal interest, which is six percent per annum. The Central Bank circular applies only to loan or forbearance of money, goods or credits and to judgments involving such
loan or forbearance of money, goods or credits. This is evident not only from said circular but also from Presidential Decree No.116, which amended Act No. 2655, otherwise
known as the Usury Law. On the other hand, Art. 2209 of the Civil Code applies to transactions requiring the payment of indemnities as damages, in connection with any delay
in the performance of the obligation arising therefrom other than those covering loan or forbearance of money, goods or credits.
As for private respondents' argument that Central Bank Circular No. 416 impliedly repealed or modified Art. 2209 of the Civil Code, suffice it to state that repeals or even
amendments by implication are not favored if two laws can be fairly reconciled. The Courts are slow to hold that one statute has repealed another by implication, and they will not
make such an adjudication if they can refrain from doing so, or if they can arrive at another result by any construction which is just and reasonable. Besides, the courts will not
enlarge the meaning of one act in order to decide that it repeals another by implication, nor will they adopt an interpretation leading to an adjudication of repeal by implication unless
it is inevitable and a clear and explicit reason therefor can be adduced. They contemplate different situations.
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Nature of Case:
Petition for Review before the Supreme Court
BRIEF
The case is an appeal via certiorari under Rule 45 of the Revised Rules of Court from the decision of the Court of Appeals, which affirmed with modification the decision of the Regional Trial
Court, San Fernando, Pampanga, in a special civil action for eminent domain, ordering the National Power Corporation (NPC) to pay respondents landowners/claimants just compensation for
the taking of their five (5) parcels of land, with an area of 63,220 square meters at P400.00, per square meter, with legal interest from September 11, 1990, plus costs of the proceedings.
FACTS
On 21 March 1990, the National Power Corporation (NAPOCOR) originally instituted with the Regional Trial Court (RTC), Third Judicial District, Branch 46, San Fernando, Pampanga a
complaint for eminent domain, later amended on 11 October 1990, for the taking for public use of 5 parcels of land, owned or claimed by Lourdes Henson (married to Eugenio Galvez),
Josefina Henson (married to Petronio Katigbak, Jesusa Henson, Corazon Henson (married to Jose Ricafort), Alfredo Tanchiatco, Bienvenido David, Maria Bondoc Capili (married to Romeo
Capili), and Miguel Manoloto, with a total aggregate area of 58,311 squaremeters, for the expansion of the NAPOCOR Mexico Sub-Station. On 28 March 1990, NAPOCOR filed an urgent
motion to fix the provisional value of the subject parcels of land. On 20 April 1990, Henson, et. al. filed a motion to dismiss. They did not challenge NAPOCOR's right to condemn their
property, but declared that the fair market value of their property was from P180.00 to P250.00 per square meter. On 10 July 1990, the trial court denied Henson, et. al.'s motion to dismiss, but
the court did not declare that NAPOCOR had a lawful right to take the property sought to be expropriated. However, the court fixed the provisional value of the land at P100.00 per square
meter, for a total area of 63,220 square meters of Henson, et. al.'s property, to be deposited with the Provisional Treasurer of Pampanga. NAPOCOR deposited the amount on 29 August 1990.
On 5 September 1990, the trial court issued a writ of possession in favor of NAPOCOR, and, on 11 September 1990, the court's deputy sheriff placed NAPOCOR in possession of the subject
land. On 22 November 1990, and 20 December 1990, the trial court granted the motions of Henson, et. al. to withdraw the deposit made by NAPOCOR of the provisional value of their
property amounting to P5,831,100.00, with a
balance of P690,900.00, remaining with the Provisional Treasurer of Pampanga. On 5 April 1991, the trial court issued an order appointing 3 commissioners to aid the in the reception of
evidence to determine just compensation for the taking of subject property. After receiving the evidence and conducting an ocular inspection, the commissioners submitted to the court their
individual reports. However, the trial court did not conduct a hearing on any of the reports. On 19 May 1993, the trial court rendered judgment fixing the amount of just compensation to be
paid by the NAPOCOR for the taking of the entire area of 63,220 squares meters at P400.00 per square meter, with legal interest thereon computed from 11 September 1990, when NAPOCOR
was placed in possession of the land, plus attorney's fees of P20,000.00, and costs of the proceedings. In due
time, NAPOCOR appealed to the Court of Appeals. On 23 July 1997, the Court of Appeals rendered decision affirming that of the Regional Trial Court, except that the award of P20,000.00 as
attorney's fees was deleted. NAPOCOR filed a petition for review before the Supreme Court.
Issue: Whether the determination of the court of the just compensation or the provisional value to be awarded to the owners of the property would be valid without hearing on the report of the
Commissioners.
ACTIONS of the COURT
RTC: Yes. The amount fixed by the court was valid even without the hearing of the reports of the Commissioners. The trial court fixed the value of the land at P400.00 per square meter,
which was the selling price of lots in the adjacent fully developed subdivision, the Santo Domingo Village Subdivision.
CA: Affirmed the judgment of the RTC.
SC: Modified the decision of the RTC and CA. The Court fixes the amount of P375.00, per square meter, as the just compensation to be paid to respondents for the taking of their property.
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landowners were admittedly farmer beneficiaries under operation land transfer of the Department of Agrarian Reform. However, the land has been reclassified as residential. The nature and
character of the land at the time of its taking is the principal criterion to determine just compensation to the landowner. Unfortunately, the trial court, after creating a board of commissioners to
help it determine the market value of the land did not conduct a hearing on the report of the commissioners. The trial court fixed the fair market value of subject land in an amount equal to the
value of lots in the adjacent fully developed subdivision. This finds no support in the evidence. The valuation was even higher than the recommendation of anyone of the commissioners
(Commissioner Mariano C. Tiglao fixed the fair market value at P350.00 per square meter, while Commissioner Arnold P. Atienza fixed it at P375.00 per square meter, and Commissioner
Victorino Oracio fixed it at P170.00 per square meter). Commissioner Atienza's recommendation appears to be the closest valuation to the market value of lots in the adjoining fully developed
subdivision. Considering that the subject parcels of land are undeveloped raw land, the price of P375.00 per square meter would appear to the Court as the just compensation for the taking of
such raw land.
SUPREME COURT RULING:
WHEREFORE, the decision of the Court of Appeals and that of the trial court subject of the appeal are hereby MODIFIED. No costs in all instances.
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