Title
Eusebio vs. Luis
Case
G.R. No. 162474
Decision Date
Oct 13, 2009
City of Pasig took private land in 1980 without proper expropriation. Owners sought just compensation; SC ruled in their favor, ordering expropriation proceedings, damages, and attorney’s fees, emphasizing fair valuation and due process.
A

Case Digest (G.R. No. 162474)

Facts:

  • Parties and Subject Property
    • Respondents Jovito M. Luis, Lidinila Luis Santos, Angelita Cagalingan, Romeo M. Luis, and Virginia Luis-Bellesteros are registered owners of a 1,586-square-meter parcel covered by TCT Nos. 53591 and 53589 in Barangay Palatiw, Pasig City.
    • The City of Pasig took possession of the land in 1980 for conversion into A. Sandoval Avenue without judicial expropriation or payment of just compensation.
  • Administrative and Judicial Proceedings
    • Sanggunian Resolution No. 15 (Feb. 1, 1993) authorized payment to respondents; Appraisal Committee Resolution No. 93-13 (Oct. 19, 1993) valued the land at ₱150.00/sqm.
    • Respondents’ correspondence: Nov. 25, 1994 letter to the Mayor noting ₱2,000.00/sqm paid for nearby expropriation; June 26, 1995 letter requesting ₱2,000.00/sqm.
    • Counsel’s demand letter (Aug. 26, 1996) sought ₱5,000.00/sqm (₱7,930,000.00 total) or reconveyance plus back rentals of ₱500.00/sqm (₱793,000.00 total), with 12% interest, moral and exemplary damages, attorney’s fees, and costs.
    • Mayor’s response (Sept. 9, 1996): City cannot exceed the Appraisal Committee valuation.
    • Complaint for Reconveyance and/or Damages filed Oct. 8, 1996 before RTC Pasig City, Branch 155.
    • RTC Decision (Jan. 2, 2001): declared the taking illegal; ordered either return of property plus back rentals (₱793,000.00) with 6% interest, or, if not returnable, just compensation of ₱5,000.00/sqm (₱7,930,000.00) plus rentals of ₱500.00/sqm, both with 6% interest; awarded ₱200,000.00 attorney’s fees.
    • CA Decision (Nov. 28, 2003) and Resolution (Feb. 27, 2004) denied petitioners’ appeal and motion for reconsideration.
    • Petition for Review on Certiorari filed before the Supreme Court under Rule 45, assailing prescription, valuation, rentals, and attorney’s fees awards, and personal liability of city officials.

Issues:

  • Prescription
    • Whether respondents’ action for recovery of property or just compensation prescribes despite the 1980 taking without expropriation.
  • Recovery of Possession vs. Just Compensation
    • Whether respondents may recover possession or are limited to claiming just compensation.
  • Valuation and Rentals
    • Whether the trial court and CA erred in fixing just compensation at ₱5,000.00/sqm and back rentals at ₱500.00/sqm, contrary to Appraisal Committee’s ₱150.00/sqm valuation at time of taking.
    • Whether back rentals are proper when interest is available as indemnity.
  • Attorney’s Fees and Exemplary Damages
    • Whether the award of ₱200,000.00 attorney’s fees and moral/exemplary damages was justified despite no proven negligence or malice.
  • Personal Liability of City Officials
    • Whether Mayor Vicente P. Eusebio, Lorna A. Bernardo, and Victor Endriga are jointly liable in their personal capacity.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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