Beruflich Dokumente
Kultur Dokumente
CORPORATION,
Petitioner,
- versus -
G. R. No. 189127
Present:
CARPIO, J., Chairperson,
BRION,
PEREZ,
SERENO, and
REYES, JJ.
4.
Whether the trial court properly awarded the amount of 4,920,750 as
just compensation, based on the Approved Schedule of Market Values for
Real Property in Tagum City for the Year 2000.
The Courts Ruling
We uphold the Decisions of the CA and the RTC.
I
NAPOCOR failed to prove that it had adequately compensated
respondents for the establishment of high tension transmission lines over
their property
NAPOCOR argues that the parcel of land involved in the instant Petition
had already been expropriated in National Power Corporation v. Pereyras .
[22]
In support of this argument, it alleges that one of the sources of the
spouses TCT No. T-109865 is TCT No. 39660; and that TCT No. 39660 is a
transfer from TCT No. T-15343, the subject land in National Power
Corporation v. Pereyras. [ 2 3 ] Thus, having paid just compensation to Tahanan
Realty Development Corporation, the successor-in-interest of defendants
Pereyras in the aforementioned case, petitioner submits that it should no
longer be made to pay just compensation in the present case.
We disagree.
While it is true that respondent spouses TCT No. T-109865 was indeed
indirectly sourced from TCT No. T-15343, the CA correctly ruled that
NAPOCOR failed to prove that the lands involved in National Power
Corporation v. Pereyras and in the instant Petition are identical. One cannot
infer that the subject lands in both cases are the same, based on the fact
that one of the source titles of TCT No. T-109865 happens to be TCT No. T38660, and that TCT No. T-38660 itself was derived from T-15343.
Furthermore, the evidence before us supports respondent spouses
contention that the lands involved in both cases are diff erent. National
Power Corporation v. Pereyras involved Lot 481-B, Psd-11012718, which was
a portion of Lot 481, Cad. 276 of Barrio Magugpo, Municipality of Tagum,
Davao. [ 2 4 ] On the other hand, the instant Petition involves Lot 15, Pcs-11000704, Amd., which is a portion of Lots 481-D, Psd-11-012718; 480-B, Psd51550; H-148559 and 463-A-2 (LRC), Psd-150796, in Barrio Magugpo,
Municipality of Tagum, Davao. Clearly, these lots refer to diff erent parcels
of land. [ 2 5 ]
concerned with the necessity to prevent NPC from unjustly profi ting from
its deliberate acts of denying due process of law to the owners. As a measure
of simple justice and ordinary fairness to them, therefore, reckoning just
compensation on the value at the time the owners commenced these inverse
condemnation proceedings is entirely warranted.
Associate Justice
NATIONAL POWER
Petitioner,
Present:
CORPORATION,
CARPIO, J.,
Chairperson,
LEONARDO-DE
- versus -
CASTRO, *
BRION,
PEREZ, and
SERENO, JJ.
Promulgated:
TERESA TUAZON,
x------------------------------------------------------------------------------------------x
D E C I S I O N BRION, J.:
This is a petition for review fi led under Rule 45 of the Rules of Court,
seeking the reversal of the decision [ 1 ] (dated March 15, 2010) of the Court of
Appeals (CA) [ 2 ] in CA-G.R. CV No. 82480, which set aside the order [ 3 ] of the
Regional Trial Court (RTC) of Tarangnan, Samar, Branch 40, and remanded
the case back to the RTC for determination of just compensation. The RTC
had dismissed the complaint of respondents Yunita Tuazon, Rosauro Tuazon
and Maria Teresa Tuazon against the National Power Corporation
(NAPOCOR) for payment of just compensation and damages.
ANTECEDENTS
The antecedent facts are not in dispute.
The respondents are co-owners of a 136,736-square-meter coconut land [ 4 ] in
Barangay Sta. Cruz, Tarangnan, Samar. The land has been declared for tax
purposes in the name of the respondents predecessor-in-interest, the late
Mr. Pascual Tuazon. Sometime in 1996, NAPOCOR [ 5 ] installed transmission
lines on a portion of the land for its 350 KV Leyte-Luzon HVDC Power TL
Project. In the process, several improvements on the land were destroyed.
Instead of initiating expropriation proceedings, however, NAPOCOR entered
into a mere right-of-way agreement [ 6 ] with Mr. Tuazon for the total amount
of TWENT Y SIX THOUSAND NINE HUNDRED SEVENTY EIGHT and
21/100 PESOS (P 26,978.21). The amount represents payments for damaged
improvements (P 23,970.00), easement and tower occupancy fees ( P 1,808.21),
and additional damaged improvements ( P 1,200.00).
In 2002, the respondents fi led a complaint against NAPOCOR for just
compensation and damages, claiming that no expropriation proceedings
were made and that they only allowed NAPOCOR entry into the land after
being told that the fair market value would be paid. They also stated that
lots similarly located in Catbalogan, Samar, likewise utilized by NAPOCOR
for the similar projects, were paid just compensation in sums ranging
from P 2,000.00 to P 2,200.00 per square meter, pursuant to the
determination made by diff erent branches of the RTC in Samar.
statute, decree, or executive order can mandate that its own determination
shall prevail over the courts findings,[12] the CA added. The dispositive of the
assailed decision reads:
In sum, after establishing that NAPOCORs acquisition of the right-of-way
easement over the portion of the appellants land was a defi nite taking
under the power of eminent domain, NAPOCOR is liable to pay appellants
[referring to the respondents herein] just compensation and not only
easement fee.
IN LIGHT OF ALL THE FOREGOING, the Order dated February 3, 2004 of
the RTC, Br. 40, Tarangnan, Samar is hereby REVERSED and SET ASIDE.
The instant case is hereby REMANDED to the RTC, Br. 40 of
Tarangnan, Samar for the proper determination of just compensation. [ 1 3 ]
The Petition
The present petition reiterates that by installing transmission lines, NAPOCOR did not
expropriate the respondents land, but merely established a right-of-way easement
over it. The petition relies heavily on the lack of transfer of the lands title
or ownership. NAPOCOR maintains that since the respondents claim
involved an easement, its charter a special law should govern in accordance with
Article 635 of the Civil Code. [ 1 4 ] NAPOCOR insists that its agreement with the
respondents predecessor-in-interest and the easement fee that was paid pursuant
thereto were authorized by its charter and are, thus, valid and binding. Finally, the
petitioner alleges that establishing right-of-way easements over lands traversed
by its transmission lines was the only mode by which it could acquire the properties
needed in its power generation and distribution function. It claims that R.A.
8974,[15] specifically its implementing rules, supports this position.
THE COURT RULING
We fi nd the petition devoid of merit and AFFIRM the remand of the
case to the RTC for the determination of just compensation.
The petitioner pleads nothing new. It essentially posits that its liability is
limited to the payment of an easement fee for the land traversed by its
transmission lines. It relies heavily on Section 3-A(b) of R.A. 6395 to
support this position.
This position has been evaluated and found wanting by this Court in a plethora of
cases, including Manubay[ 1 6 ] which was correctly cited by the CA in the assailed
decision.
In Manubay, [ 1 7 ] NAPOCOR sought the reversal of a CA decision that
affi rmed the payment, as ordered by the RTC in Naga City, of the full
value of a property traversed by NAPOCORs transmission lines for its 350
KV Leyte-Luzon HVDC Power Transmission Project. Through then Associate
Justice Artemio V. Panganiban, the Court echoing the 1991 case of National
Power Corporation v. Misericordia Gutierrez, et al. [ 1 8 ] formulated the
doctrinal issue in Manubay, [ 1 9 ] as follows:
How much just compensation should be paid for an easement of a right of
way over a parcel of land that will be traversed by high-powered
transmission lines? Should such compensation be a simple easement fee or
the full value of the property? This is the question to be answered in this
case. [ 2 0 ]
In holding that just compensation should be equivalent to the full value of
the land traversed by the transmission lines, we said:
Granting arguendo that what petitioner acquired over respondents
property was purely an easement of a right of way, still, we cannot sustain
its view that it should pay only an easement fee, and not the full value of
the property. The acquisition of such an easement falls within the purview
of the power of eminent domain. This conclusion fi nds support in similar
cases in which the Supreme Court sustained the award of just compensation
for private property condemned for public use. Republic v. PLDT held thus:
x x x. Normally, of course, the power of eminent domain results in the
taking or appropriation of title to, and possession of, the expropriated
property; but no cogent reason appears why the said power may not be
availed of to impose only a burden upon the owner of condemned property,
without loss of title and possession. It is unquestionable that real property
may, through expropriation, be subjected to an easement of right of way.
True, an easement of a right of way transmits no rights except the
easement itself, and respondent retains full ownership of the property. The
acquisition of such easement is, nevertheless, not gratis. As correctly
observed by the CA, considering the nature and the eff ect of the installation
power lines, the limitations on the use of the land for an indefi nite period
would deprive respondent of normal use of the property. For this reason, the
latter is entitled to payment of a just compensation, which must be neither
more nor less than the monetary equivalent of the land.
Just compensation is defi ned as the full and fair equivalent of the property
taken from its owner by the expropriator. 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.
In eminent domain or expropriation proceedings, the just compensation to
which the owner of a condemned property is entitled is generally the market
value. Market value is 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 therefore. [ 2 1 ] (Emphasis ours;
citations omitted.)
We fi nd it signifi cant that NAPOCOR does not assail the applicability
of Manubay [ 2 2 ] in the present case. Instead, NAPOCOR criticizes the
application of Gutierrez [ 2 3 ] which the CA had cited as authority for the
doctrine that eminent domain may also be availed of to impose only a
burden upon the owner of condemned property, without loss of title and
possession. [ 2 4 ] NAPOCOR assails Gutierrez [ 2 5 ] as irrelevant on the ground
that the expropriation proceedings were instituted in January 1965, when
the NAPOCOR Charter had not been amended with the insertion of Section
3-A(b) in 1976. [ 2 6 ] To NAPOCOR, Section 3-A(b) provides for a fi xed formula
in the computation of just compensation in cases of acquisition of easements
of right-of-way. Heavily relying on Section 3-A(b), therefore, NAPOCOR
argues:
Absent any pronouncement regarding the eff ect of Section 3-A (b) of R.A.
6395, as amended, on the computation of just compensation to be paid to
landowners aff ected by the erection of transmission lines, NPC v. Gutierrez,
supra, should not be deemed controlling in the case at bar. [ 2 7 ]
We do not fi nd NAPOCORs position persuasive.
The application of Gutierrez [ 2 8 ] to the present case is well taken. The facts
and issue of both cases are comparable. [ 2 9 ] The right-of-way easement in the
case similarly involved transmission lines traversing privately owned land.
It likewise held that the transmission lines not only endangered life and limb, but
restricted as well the owners use of the land traversed. Our pronouncement
in Gutierrez [ 3 0 ] that the exercise of the power of eminent domain necessarily
includes the imposition of right-of-way easements upon condemned property without
loss of title or possession [ 3 1 ] therefore remains doctrinal and should be
applied. [ 3 2 ]
NAPOCORs protest against the relevancy of Gutierrez, heavily relying as it
does on the supposed conclusiveness of Section 3-A(b) of R.A. 6395 on just
compensation due for properties traversed by transmission lines, has no
merit. We have held in numerous cases that Section 3-A(b) is not conclusive
upon the courts. [ 3 3 ] In National Power Corporation v. Maria Bagui, et al.,
[34]
we categorically held:
Moreover, Section 3A-(b) of R.A. No. 6395, as amended, is not binding on the
Court. It has been repeatedly emphasized that the determination of just
compensation in eminent domain cases is a judicial function and that any
valuation for just compensation laid down in the statutes may serve only as
a guiding principle or one of the factors in determining just compensation
but it may not substitute the court's own judgment as to what amount
should be awarded and how to arrive at such amount. (Citations omitted.)
The determination of just compensation in expropriation cases is a function
addressed to the discretion of the courts, and may not be usurped by any
other branch or offi cial of the government. [ 3 5 ] This judicial function has
constitutional raison dtre; Article III of the 1987 Constitution mandates
that no private property shall be taken for public use without payment of
just compensation. In National Power Corporation v. Santa Loro Vda. de
Capin, et al., [ 3 6 ] we noted with approval the disquisition of the CA in this
matter:
The [herein petitioner] vehemently insists that its Charter [Section 3A (b)
of R.A. 6395] obliges it to pay only a maximum of 10% of the market value
declared by the owner or administrator or anyone having legal interest in
the property, or such market value as determined by the assessor, whichever
is lower. To uphold such a contention would not only interfere with a
judicial function but would also render as useless the protection guaranteed
by our Constitution in Section 9, Article III of our Constitution that no
private property shall be taken for public use without payment of just
compensation.
The same principle further resolves NAPOCORs contention that R.A. 8974,
specifi cally its implementing rules, supports NAPOCORs claim that it is
liable to the respondents for an easement fee, not for the full market value
of their land. We amply addressed this same contention
in Purefoods [ 3 7 ] where we held that:
While Section 3(a) of R.A. No. 6395, as amended, and the implementing rule
of R.A. No. 8974 indeed state that only 10% of the market value of the
property is due to the owner of the property subject to an easement of rightof-way, said rule is not binding on the Court. Well-settled is the rule that
the determination of just compensation in eminent domain cases is a
judicial function. In Export Processing Zone Authority v. Dulay , the Court
held that any valuation for just compensation laid down in the statutes may
serve only as guiding principle or one of the factors in determining just
compensation but it may not substitute the court's own judgment as to what
amount should be awarded and how to arrive at such amount. The executive
department or the legislature may make the initial determinations but
when a party claims a violation of the guarantee in the Bill of Rights that
private property may not be taken for public use without just compensation,
no statute, decree, or executive order can mandate that its own
determination shall prevail over the court's fi ndings. Much less can the
THIRD DIVISION
[G.R. No. 155065. July 28, 2005]
(Underscoring supplied)
The complaint covers (a) 7,281 square meters of the 25,758 square meters of
land co-owned by herein respondents Petrona O. Dilao (Dilao) and the
above-listed defendant Nos. 2-10 who are her siblings, and (b) 7,879 square
meters of the 17,019 square meters of land owned by Estefania Enriquez
(Enriquez). [ 8 ]
A day after the complaint was fi led or on March 20, 1996, NPC fi led an
urgent ex parte motion for the issuance of writ of possession of the lands.
Dilao fi led her Answer with Counterclaim on April 19, 1996 . [ 9 ] Enriquez did
not. [ 1 0 ]
On May 9, 1996, Branch 25 of the RTC Danao, issued an Order [ 1 1 ] granting
NPCs motion for the issuance of writ of possession. It then appointed a
Board of Commissioners to determine just compensation. [ 1 2 ]
The commissioners submitted on April 15, 1999 their report [ 1 3 ] to the trial
court containing, among other things, their recommended appraisal of
the parcel of land co-owned by defendants Dilao and her siblings at P 516.66
per square meter.
To the Commissioners Report, the NPC fi led its
Comment/Opposition [ 1 4 ] assailing the correctness of the appraisal for failing
to take into account Republic Act (R.A.) No. 6395 ( AN ACTREVISING
THE CHARTER OF THE NATIONAL POWER CORPORATION), as amended,
specifi cally Section 3A [ 1 5 ] thereof which provides that the just compensation
for right-of-way easement (for which that portion of the Dilao property is
being expropriated) shall be equivalent to ten percent (10%) of the market
value of the property. The traversed land, NPC asserted, could still be used
for agricultural purposes by the defendants, subject only to its easement. It
added that the lots were of no use to its operations except for its
transmission lines. [ 1 6 ]
By Decision of November 10, 1999, the trial court rendered a decision on the
complaint, adopting the commissioners recommended appraisal of the land
co-owned by Dilao and her siblings . The dispositive portion of the decision
reads:
WHEREFORE, judgment is hereby rendered condemning the property of
Petrona Dilao et al. which has been aff ected by 7,281 square meters in favor
of plaintiff ; declaring in favor of defendants for plaintiff to pay the fair
market value of said area aff ected at P 516.66 per square or a total
of P 3,761,801.40 plus P 250,000.00 for the value of the improvements
aff ected by herein expropriation.
SO ORDERED. [ 1 7 ] (Emphasis and underscoring supplied).
Copy of the decision was received by NPC on November 18, 1999. [ 1 8 ]
NPC fi led a Notice of Appeal [ 1 9 ] but the trial court, by Order of January 17,
2000, denied the same for NPCs failure to fi le and perfect it within the
reglementary period, it having failed to fi le a record on appeal. [ 2 0 ] To the
Rule 41, Section 2 of the 1997 Rules of Civil Procedure, as amended, clearly
provides:
SEC. 2. Modes of Appeals.
(a) Ordinary appeal. The appeal to the Court of Appeals in cases decided by
the Regional Trial Court in the exercise of its original jurisdiction shall be
taken by fi ling a notice of appeal with the court which rendered the
judgment or fi nal order appealed from and serving a copy thereof upon the
adverse party. No record on appeal shall be required except in special
proceedings and other cases of multiple or separate appeals where the law
or these Rules so require. In such cases , the record on appeal shall be fi led
and served in like manner.
x x x (Emphasis and underscoring supplied).
While admittedly a complaint for expropriation is not a special proceeding,
the above-quoted rule requires the fi ling of a record on appeal in other cases
of multiple or separate appeal.
Jurisprudential law, no doubt, recognizes the existence of multiple appeals
in a complaint for expropriation. [ 3 1 ] The case of Municipality of Bian v.
Garcia [ 3 2 ] vividly expounds on the matter, viz:
1. There are two (2) stages in every action of expropriation. The fi rst 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 fi ling of the complaint."
An order of dismissal, if this be ordained, would be a fi nal one, of course,
since it fi nally disposes of the action and leaves nothing more to be done by
the Court on the merits. So, too, would an order of condemnation be a fi nal
one, for thereafter, as the Rules expressly state, in the proceedings before
the Trial Court, "no objection to the exercise of the right of condemnation
(or the propriety thereof) shall be fi led or heard.
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. The order fi xing the just compensation
on the basis of the evidence before, and fi ndings of, the commissioners
would be fi nal, too. It would fi nally dispose of the second stage of the suit,
and leave nothing more to be done by the Court regarding the issue.
Obviously, one or another of the parties may believe the order to be
erroneous in its appreciation of the evidence or fi ndings of fact or otherwise.
Obviously, too, such a dissatisfi ed party may seek reversal of the order by
taking an appeal therefrom . (Underscoring supplied).
Thus, in Municipality of Bian, this Court held that in actions for eminent
domain, since no less than two appeals are allowed by law, the period for
appeal from an order of condemnation is thirty days counted from notice
thereof and not the ordinary period of fi fteen days prescribed for actions in
general. [ 3 3 ] As such, the complaint falls under the classifi cation of other
cases of multiple or separate appeal where the law or these rules so require
in above-quoted Section 2(a) of Rule 41 of the Rules of Civil Procedure in
which a record on appeal is required to be fi led and served.
Respecting NPCs claim that the trial court did not acquire jurisdiction over
the other defendant, Enriquez, there being no evidence that summons was
served on her and, therefore, no appeal with respect to the case against her
arose, the trial courts Order [ 3 4 ] of May 9, 1996 belies said claim:
x x x
In the letter-appeal by defendant Estefania V. Enriquez addressed to the
Court, defendant did manifest no opposition to the right of plaintiff to the
use of her land but only wich (sic) that payment be based on the actual
market value of the property sought to be expropriated . In comment to said
letter-appeal, plaintiff stressed that the amount deposited was purely to
secure a writ of possession as provided under PD 42. It agreed with
defendant that the fair market value or actual market value shall be the
basis for the just compensation of the property.
x x x (Emphasis and underscoring supplied)
That the defendant Enriquez did not fi le an answer to the complaint did not
foreclose the possibility of an appeal arising therefrom. For Section 3 of
Rule 67 provides:
Sec. 3. Defenses and objections. If a defendant has no objection or defense to
the action or the taking of his property, he may fi le and serve a notice of
appearance and a manifestation to that eff ect, specifi cally designating or
identifying the property in which he claims to be interested, within the time
stated in the summons. Thereafter, he shall be entitled to notice of all
proceedings aff ecting the same.
If a defendant has any objection to the fi ling of or the allegations in the
complaint, or any objection or defense to the taking of his property, he shall
serve his answer within the time stated in the summons. The answer shall
specifi cally designate or identify the property in which he claims to have an
interest, state the nature and extent of the interest claimed, and adduce all
his objections and defenses to the taking of his property. No counterclaim,
cross-claim or third-party complaint shall be alleged or allowed in the
answer or any subsequent pleading.
A defendant waives all defenses and objections not so alleged but the court,
in the interest of justice, may permit amendments to the answer to be made
not later than ten (10) days from the fi ling thereof. However, at the trial of
the issue of just compensation, whether or not a defendant has previously
In fi nding that the trial court did not abuse its authority in evaluating the
evidence and the reports placed before it nor did it misapply the rules
governing fair valuation, the Court of Appeals found the majority reports
valuation of P500 per square meter to be fair. Said factual fi nding of the
Court of Appeals, absent any showing that the valuation is exorbitant or
otherwise unjustifi ed, is binding on the parties as well as this Court.
(Emphasis and underscoring supplied).
Indeed, expropriation is not limited to the acquisition of real property with
a corresponding transfer of title or possession. The right-of-way easement
resulting in a restriction or limitation on property rights over the land
traversed by transmission lines, as in the present case, also falls within the
ambit of the term expropriation. As explained in National Power
Corporation v. Gutierrez, [ 3 7 ] viz:
The trial courts observation shared by the appellate court show that x x x
While it is true that plaintiff [is] only after a right-of-way easement, it
nevertheless perpetually deprives defendants of their proprietary rights as
manifested by the imposition by the plaintiff upon defendants that below
said transmission lines no plant higher than three (3) meters is allowed.
Furthermore, because of the high-tension current conveyed through said
transmission lines, danger to life and limbs that may be caused beneath
said wires cannot altogether be discounted, and to cap it all, plaintiff only
pays the fee to defendants once, while the latter shall continually pay the
taxes due on said aff ected portion of their property.
The foregoing facts considered, the acquisition of the right-of-way easement
falls within the purview of the power of eminent domain . Such conclusion
fi nds support in similar cases of easement of right-of-way where the
Supreme Court sustained the award of just compensation for private
property condemned for public use (See National Power Corporation vs.
Court of Appeals, 129 SCRA 665, 1984; Garcia vs. Court of Appeals, 102
SCRA 597, 1981). The Supreme Court, in Republic of the Philippines vs.
PLDT, thus held that:
Normally, of course, the power of eminent domain results in the taking or
appropriation of title to, and possession of, the expropriated property; but
no cogent reason appears why said power may not be availed of to impose
only a burden upon the owner of condemned property, without loss of title
and possession . It is unquestionable that real property may, through
expropriation, be subjected to an easement of right-of-way.
In the case at bar, the easement of right-of-way is defi nitely a taking under
the power of eminent domain. Considering the nature and eff ect of the
installation of the 230 KV Mexico-Limay transmission lines,the limitation
imposed by NPC against the use of the land for an indefi nite period deprives
private respondents of its ordinary use. (Emphasis and underscoring
supplied).