~EXPROPRIATION PART 2~

SLIDE 11

ORDER OF EXPROPRIATION

Declaration that that plaintiff has a lawful right to take the property for the
public use or public purpose described in the complaint upon the payment of just
compensation

When issued:
(a) In the event the objections of the defendant are overruled; or
(b) When no party appears to object to or defend against the expropriation
(Sec.4, Rule 67)

Note: Upon rendition of Order, plaintiff shall not be permitted to dismiss or

discontinue proceedings, except upon such terms the court deems just and equitable

SLIDE 12

Remedy of defendant: Appeal

- Record on appeal is required because multiple appeals are permitted
- If decision is reversed on appeal:
o Restoration of possession
o Determination of damages sustained to be recovered
- If affirmed, cost to be paid by owner who appealed

Matters Not Affected by Appeal

- Determination of just compensation
- Right if of plaintiff to enter property

SLIDE 13

ASCERTAINMENT OF JUST COMPENSATION

Just Compensation – Full and fair equivalent of property taken (LBP v. Obias)
(a) Correct amount paid
(b) Reasonable time of payment

When to ascertain JC (Market Value) (Republic v. PNB)

(a) If taken before institution of proceedings – Value as of TIME OF TAKING
(b) If taking coincides/subsequent to institution - VALUE as of DATE OF
FILING
SLIDE 14

1. Appointment of 3 competent and disinterested persons as commissioners

2. Order shall designate:
(a) time and place of the first session of the hearing and
(b) time within which to submit their report
3. Copies of order
4. Objections to appointment:
(a) Filed - 10 days from service
(b) Resolved – 30 days after commissioners received copies of
objections

SLIDE 15

APPOINTMENT OF COMMISSIONERS

Mandatory
Absence of trial or hearing with aid of commissioners constitutes violation of
right to due process (NPC v. de la Cruz)

Qualifications: COMPETENT and DISINTERESTED

Duties:
1. View and examine the property and its surroundings, and may measure the
same, after which the parties may argue the case
2. Assess the consequential damages/benefits to the property not taken (In no
case shall consequential benefits assessed exceed the consequential damages
assessed, or the owner be deprived of the actual value of his property)

SLIDE 16

COMMISSIONER’S REPORT

Court may
1. Order commissioners to report when any particular portion of the real estate
shall have been passed upon by them
2. Render judgment upon such partial report
3. Direct commissioners to proceed with their work as to subsequent portions
of the property sought, and may from time to time so deal with such property
Commissioners shall make full and accurate report of all their proceedings, and such
shall not be effectual until the court accepted it and rendered judgment in
accordance with their recommendations .

Filed within 60 days from date commissioners were notified of appointment.

Served to all interested parties with 10 days to file objections.

SLIDE 17

COURT ACTION

Expiration of 7 days or all interested parties have filed their objections

Court may:
1. Accept report and render judgment in accordance therewith
2. For cause, recommit the same to the commissioners for further report of
facts
3. Set aside report and appoint new commissioners
4. Accept report in part and reject in part

SLIDE 18

Guidelines for Proper Determination of JC (Sps. Mercado v. LBP):

1. Appropriate date of valuation
2. Interest may be awarded as may be warranted by circumstances
3. JC arrived at pursuant to RA 6657 (Sec. 17) and DAR AO No. 5

SLIDE 19

RIGHTS OF PLAINTIFF UPON JUDGEMENT AND PAYMENT

Upon payment of compensation fixed by judgment with legal interest therefrom, or

after tender of the amount

1. Enter the property and to appropriate it for public use or purpose

2. Retain it should he have take immediate possession thereof

SLIDE 20

Rule if payment is refused

(If defendant and counsel absent themselves from court or decline to receive
amount tendered)
Amount tendered shall be deposited in court and such deposit shall have the same
effect as actual payment to defendant

Effect of non-payment of JC

Does not entitle private landowner to recover possession. However, if government

fails to pay within 5 years from finality of judgment in the expropriation
proceedings, the owner shall have right to recover possession (Yujuico v. Atienza)

SLIDE 21

EFFECT OF ENTRY OF JUDGEMENT

Contents of the judgment

State definitely
a. By adequate description, particular property or interest expropriated
b. Nature of the public use or purpose

When title to property vests

a. Personal property – upon payment of JC
b. Real property, upon
1. payment of JC, and
2. registration of property by recording of the judgment in the registry of
deeds where the property is situated

SLIDE 22

CASE #2: ZABALLERO v. NHA

Gov’t Office – NHA

Property – Sugarlands of the Zaballeros (Dasmariñas, Cavite)
Purpose – Expansion of the Dasmariñas Resettlement Project

 3 Complaints were filed for the expropriation of subject lots. Court issued
writ of possession.
 Zaballeros filed separate motions for partial and/or provisional payment in 2
cases (Granted at P7.75/sq.m.)
 In the 3rd case Zaballero moved for delivery of the PNB deposits of NHA.
(Granted)
 Final determination of JC in each of the cases was at P7.75/sq.m.
 NHA: Applying PD No. 76, JC should only be P1.00/sq.m
SLIDE 23

DOCTRINES FROM THE CASE

Preliminary deposit serves the double purpose of a prepayment upon the value of
the property, if finally expropriated; and as an indemnity against damage in the
eventuality that the proceedings should fail of consummation

In the case at bar, the defendants have conceded to plaintiff's authority to

expropriate and the plaintiff had already taken possession of the property, equity
dictates that provisional compensation be ordered in favor of the owners.

SLIDE 24

The determination of "just compensation" in eminent domain cases is a judicial

function

Since courts must first construe acts of government conformably with the
Constitution, the proper, nay, inexorable, meaning to be given the cited Presidential
Decrees should be that the rules therein enumerated are intended merely to provide
guidelines for the courts as they go about their functions of determining just
compensation.

"disturbance compensation" - consequential losses to the owners of the property for

the removal and/or demolition of certain improvements and the value of sugar cane
crops and fruit trees existing on the expropriated land at the time of the taking

SLIDE 25

CASE #3: NHA v. HEIRS OF GUIVELONDO

Gov’t Office – NHA

Property – Various lots in Mabolo, Cebu
Purpose – Socialized housing project

 Dec. 10, 1999 – Court declared that NHA has lawful right to expropriate the
properties (No Appeal)
 August 7,2000 – Court rendered partial judgment adopting recommendation
of Commissioners on the amount of JC (MR denied)
 October 11,2000 – Entry of Judgment, subsequently, Motion for Execution
was granted
  July 16, 2001 – NHA filed a Motion to Dismiss the complaint for eminent
domain (denied)
 May 27, 2002 – Sheriff served on LBP Notice of Garnishment against deposits
of NHA

SLIDE 26

DOCTRINE FROM THE CASE

2 Phases of Expropriation proceedings:

1. Determination of authority – Order of execution
2. Determination of just compensation – Fixing of amount

Without an appeal, the Order becomes final and executory, can no longer be
disturbed no matter how erroneous it may be.

NHA cannot be permitted to institute condemnation proceedings against

respondents only to abandon it later when it finds the amount of just compensation
unacceptable.

SLIDE 27

GR: Funds and properties of the government cannot be the object of garnishment
proceedings even if the consent to be sued had been previously granted and the
state liability adjudged.

Exception: Public corporation or a government-owned or controlled corporation

which is clothed with a personality of its own, separate and distinct from that of the
government, then its funds are not exempt from garnishment.

Case: Funds of NHA are not exempt from garnishment or execution.