Title
Evergreen Manufacturing Corp. vs. Republic
Case
G.R. No. 218628
Decision Date
Sep 6, 2017
Evergreen Manufacturing contested expropriation of land by Republic-DPWH for road construction, disputing valuation and necessity. Supreme Court fixed just compensation at P33,050/sq.m., awarding interest from 2006, balancing property value at time of taking and avoiding remand delays.

Case Digest (G.R. No. 163175)
Expanded Legal Reasoning Model

Facts:

  • Parties and Subject Property
    • Evergreen Manufacturing Corporation (Evergreen) is the registered owner of a 1,428.68 sqm parcel in Barangay Santolan, Pasig City (TCT No. PT-114857).
    • The Republic of the Philippines, represented by the Department of Public Works and Highways (Republic-DPWH), sought to expropriate 173.08 sqm (Subject Premises) for the Marikina Bridge and Access Road project.
  • Expropriation Proceedings
    • Republic-DPWH offered negotiated purchase at the BIR zonal valuation of ₱6,000/sqm; Evergreen declined, prompting the filing of the expropriation complaint on 22 March 2004.
    • Evergreen opposed, alleging lack of necessity, impairment of leasehold contracts, and sought either dismissal or, alternatively, reliefs including re-survey, new titles, and incidental expenses.
  • Deposit and Possession
    • On 19 August 2004, Republic-DPWH deposited ₱1,038,480 (100% of zonal valuation) and moved for a writ of possession; the RTC issued it on 6 December 2004.
    • Entry disputes were resolved by agreement on 21 April 2006; Evergreen withdrew the deposit by leave of court on 15 November 2006.
  • Determination of Just Compensation
    • Parties agreed at pre-trial to limit issues to the amount of just compensation; on 15 October 2007, three commissioners were appointed.
    • Separate appraisal reports recommended: ₱15,000/sqm (City Assessor), ₱37,500/sqm (Atty. Wy), and ₱30,000/sqm (Atty. Migrino).
  • RTC and CA Rulings
    • RTC Decision (30 June 2011): fixed compensation at ₱25,000/sqm totaling ₱3,288,520 (net of deposit); denied other claims; motions for reconsideration denied on 3 November 2011.
    • CA Decision (26 June 2014): increased compensation to ₱35,000/sqm totaling ₱6,057,800 minus deposit; denied interest and consequential damages; recon denied on 25 May 2015.
  • Supreme Court Petitions
    • Evergreen’s petition (G.R. No. 218628, filed 3 August 2015) challenged denial of interest on compensation.
    • Republic-DPWH’s petition (G.R. No. 218631, filed 29 July 2015) contested the basis and quantum of just compensation.

Issues:

  • Evergreen’s Issue
    • Whether Evergreen is entitled to legal interest on the balance of just compensation from filing of complaint until payment in full.
  • Republic-DPWH’s Issues
    • Whether the CA erred in fixing just compensation at ₱35,000/sqm on these grounds:
      • The commissioners’ reports are hearsay and lack documentary support.
      • Valuation must reflect the property’s value as of the date of taking or filing of complaint.
      • Prior BOC valuation in LRTA case is not binding precedent for all expropriations.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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