G.R. No. 154614 - City of Iloilo vs. Legaspi

On March 7, 2001, the Sangguniang Panlungsod of Iloilo City enacted Regulation Ordinance No. 2001-037, authorizing the City Mayor to institute expropriation proceedings on Lot No. 935, registered under Manuela Yusay, located in Barangay Sto. Niño Norte, Arevalo, Iloilo City.
The ordinance was approved by then City Mayor Mansueto A. Malabor.
On March 14, 2001, Mayor Malabor formally offered to purchase the land (85,320 square meters, TCT No. T-67506) from the heirs of Manuela Yusay at P250 per square meter for use as an on-site relocation for the poor and landless residents under the housing development program.

The heirs, through Mrs. Sylvia Yusay del Rosario, made a counter-proposal that was rejected by the City Council as per SP Resolution No. 01-445.
The City Government thus terminated further proceedings on the negotiated purchase.

The City of Iloilo, represented by Mayor Jerry P. TreAas, filed an Amended Complaint for Eminent Domain against the heirs of Manuela Yusay represented by Sylvia Yusay del Rosario and Enrique Yusay, Jr., involving the same Lot No. 935.
The private respondents filed an Answer raising special and affirmative defenses; petitioner filed a Reply.
The private respondents moved for a Preliminary Hearing on their defenses, which was granted by RTC Branch 22, Iloilo City.
Subsequently, the motion was withdrawn by private respondents’ counsel; the case was set for pre-trial, with no objection from petitioner.

On April 11, 2002, petitioner filed a Motion for Issuance of Writ of Possession after depositing P2,809,696.50 (15% of the fair market value per tax declaration) with the court, invoking Section 19, RA 7160.
On April 15, 2002, the RTC denied immediate issuance of the writ, ordering the motion to be resolved only after petitioner rests its case. The order allowed opposition filing and reply within ten days.
Private respondents filed Opposition; petitioner filed a Reply.
On May 9, 2002, petitioner filed a Motion for Reconsideration to nullify or modify the April 15 order, citing Robern Development Corp. v. Judge Quitain, arguing that no hearing is necessary before writ issuance.
Private respondents opposed, asserting the amended complaint was deficient in form and substance, thus a hearing is required; they also cited an agreement that the writ issuance would be after trial evidence.

On June 5, 2002, the RTC denied the motion for reconsideration and held the resolution of the motion for writ of possession in abeyance.
Petitioner City of Iloilo filed a Petition for Certiorari and Prohibition before the Supreme Court, seeking nullification/modification of the June 5 order and issuance of writ of possession.

Whether the RTC committed grave abuse of discretion amounting to lack or excess of jurisdiction in:

Denying the Motion for Reconsideration dated May 9, 2002, and holding the resolution of the Motion for Issuance of Writ of Possession only after petitioner rests its case; and
Effectively ruling that the amended complaint for expropriation was insufficient in form and substance, thus petitioner was not entitled to immediate issuance of a writ of possession.

Whether a hearing is a prerequisite before the issuance of a writ of possession in an eminent domain proceeding by a local government unit.

Whether petitioner waived its right or is estopped to demand immediate issuance of a writ of possession.