Facts:

• The case involves the petitioner, Land Bank of the Philippines (LBP), and respondents Alfredo Hababag, Sr., his wife Consolacion, and their children.
• The Supreme Court's decision was rendered on June 8, 2016.
• The dispute centers on just compensation for 69.3857 hectares of land expropriated for agrarian reform.
• The Regional Trial Court (RTC) initially set compensation at P1,237,850.00 using the Income Productivity Approach.
• The Court of Appeals (CA) recalculated the compensation to P2,398,487.24 based on the Department of Agrarian Reform's formula under Republic Act No. 6657.
• The CA ordered LBP to pay legal interest on the unpaid balance.
• LBP filed a motion for reconsideration, contesting the legal interest and seeking clarification on the date of taking for interest computation.

Issue:

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Ruling:

• The Supreme Court denied LBP's Motion for Reconsideration, affirming the imposition of legal interest.
• Legal interest accrues at twelve percent (12%) per annum from the date of taking until June 30, 2013, and at six percent (6%) per annum thereafter until full payment.
• LBP was ...(Unlock)

Ratio:

• The Court found LBP's objections to the interest imposition to be without merit, emphasizing the law's requirement for full payment of just compensation.
• The principal amount must reflect the actual value of the expropriated land, and any unpaid balance justifies accruing legal interest.
• Citing Apo Fruits Corporation vs. LBP, the Court reiterated that partial payments do not exempt LBP from paying interest on any outstanding balanc...continue reading