Title
Supreme Court
Mactan-Cebu International Airport Authority vs. Lozada, Sr.
Case
G.R. No. 176625
Decision Date
Feb 25, 2010
Lot No. 88, expropriated for Lahug Airport expansion, reverted to original owners after airport abandonment due to conditional expropriation and constructive trust. Respondents must return compensation but retain property appreciation.

Case Digest (G.R. No. 176625)
Expanded Legal Reasoning Model

Facts:

  • Expropriation and Ownership
    • Lot No. 88-SWO-25042 (1,017 sqm) in Lahug, Cebu City originally owned by Anastacio Deiparine; occupied by U.S. Army since 1947 and turned over to Civil Aeronautics Administration (CAA).
    • Republic (through CAA) filed Civil Case No. R-1881 before the CFI of Cebu for airport expansion; judgment on December 29, 1961 condemned the lot at ₱3.00/sqm (₱3,018 total) plus legal interest; Transfer Certificate of Title No. 9045 issued to Bernardo L. Lozada, Sr.
  • Compromise Agreement and Airport Abandonment
    • During appeal, Air Transportation Office (ATO) (formerly CAA) proposed that affected owners withdraw appeals in exchange for a commitment to resell at the expropriation price if Lahug Airport were abandoned; Lozada relied on this and did not pursue his appeal; title transferred to the Republic (TCT No. 25057).
    • Lahug Airport expansion never materialized; President Aquino’s November 29, 1989 memorandum directed transfer of general aviation to Mactan Airport before year-end; RA 6958 (1990) created MCIAA and vested it with both airports; Lahug Airport closed and the site converted into Bagong Buhay Rehabilitation Complex and Ayala I.T. Park.
  • Recovery Proceedings
    • On June 4, 1996 respondents filed Civil Case No. CEB-18823 for recovery of Lot No. 88, alleging (a) prior ownership, (b) expropriation and oral compromise to repurchase if airport abandoned, (c) abandonment of public purpose, and (d) right to reconveyance; petitioners denied any binding agreement and asserted fee-simple title.
    • Parties stipulated key facts (lot identity, expropriation, public purpose, transfer to MCIAA, airport closure directive); RTC Branch 57, Cebu City rendered decision on October 22, 1999 ordering reconveyance upon repayment; CA denied petitioners’ appeal in its February 28, 2006 Decision and denied reconsideration on February 7, 2007; this petition for review followed.

Issues:

  • Did respondents prove a binding oral compromise agreement obliging the Government to resell Lot No. 88 upon abandonment of the Lahug Airport?
  • Whether the condemnation decree granted fee-simple title to the Republic, thereby extinguishing respondents’ reversion rights despite non-use?
  • Whether respondents’ enforcement of the oral assurances is barred by the Statute of Frauds?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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