G.R. No. 206484 - Department of Transportation and Communications vs. Spouses Abecina

Vicente and Maria Cleofe Abecina are registered owners of five parcels in Sitio Paltik, Barrio Sta. Rosa, Jose Panganiban, Camarines Norte (TCT Nos. T-25094 to T-25098).
The Department of Transportation and Communications (DOTC) is the government agency mandated to promote, develop, and regulate the nation’s telecommunications network.

In February 1993, the DOTC awarded Digitel Telecommunications Philippines, Inc. a contract under the Regional Telecommunications Development Project (RTDP) and National Telephone Program, Phase I, Tranche 1, formalized by Facilities Management Agreements and converted into Financial Lease Agreements in 1995.
The municipality of Jose Panganiban donated a 1,200 sqm parcel to the DOTC for the RTDP, but portions of the Abecinas’ titled land were erroneously included. Pursuant to the lease, Digitel constructed a telephone exchange that encroached on the Abecinas’ properties.

Mid-1990s: The Abecinas discovered the encroachment, demanded vacatur and P1,200,000 in damages; DOTC and Digitel refused.
September 3, 2003: The Abecinas filed an accion publiciana (Civil Case No. 7355) against DOTC and Digitel for recovery of possession and damages. DOTC answered, claiming immunity and ownership.
Pre-trial: DOTC admitted the Abecinas’ title but maintained immunity from suit.
March 12 & 22, 2007: The Abecinas and Digitel executed a compromise agreement and lease, approved by the RTC.
May 20, 2009 (RTC): Held that state immunity could not bar relief; ordered DOTC to vacate, forfeited improvements (builder in bad faith), and awarded P1,200,000 actual damages, P200,000 moral, P200,000 exemplary, plus attorney’s fees and costs.
CA-G.R. CV No. 93795: DOTC appealed, contending lack of jurisdiction (immunity), mootness by compromise, and erroneous damages.
March 20, 2013 (CA): Affirmed the RTC’s decision except deleted exemplary damages; denied immunity (FLA as proprietary contract); upheld actual and moral damages.
April 16, 2013: DOTC filed petition for review on certiorari to the Supreme Court.

Does the DOTC enjoy immunity from suit that deprives courts of jurisdiction over an accion publiciana by private landowners?
Can the DOTC’s Financial Lease Agreement and related proprietary contracts with Digitel constitute a waiver of state immunity?

Did the DOTC’s entry and construction on the Abecinas’ land without expropriation proceedings amount to an exercise of eminent domain requiring just compensation?
Should the case be remanded for expropriation proceedings instead of ordering reconveyance?

Did the compromise and lease between the Abecinas and Digitel extinguish the action against the DOTC?

Were the reconveyance order, forfeiture of improvements, and awards of actual, moral, and exemplary damages proper?