G.R. No. 175176 - National Power Corp. vs. Vda. de Capin

Petitioner NATIONAL POWER CORPORATION (NAPOCOR) is a government-owned and controlled corporation vested with the power of eminent domain under Republic Act No. 6395, as amended by Presidential Decree No. 938.
Respondents are Santa Loro Vda. De Capin and spouses Julito and Gloria Quimco (Spouses Quimco), owners of parcels of land in Dawis Sur, Carmen, Cebu, affected by petitioner’s 230 KV Leyte-Cebu Interconnection Project (Interconnection Project).
Respondent Santa Loro owned a 16,193 sqm lot under Tax Declaration No. 15-22196 (1994), and Spouses Quimco a 3,298 sqm lot under Tax Declaration No. 31376 (1996).

Petitioner obtained “Permission to Enter for Construction of Transmission Line Project” from respondents on 14 June 1994 and 11 December 1996, promising just compensation for intrusion.
Construction of transmission towers and lines was completed in 1996, with portions of respondents’ properties totaling 3,199 sqm taken.
Post-construction, petitioner imposed use restrictions on respondents’ lands, e.g., no planting/building over three meters high under the lines, prohibition of quarrying near towers by Spouses Quimco, causing loss of income.

Petitioner paid respondents small amounts: P8,015.90 to Santa Loro and P5,350.49 to Spouses Quimco for affected portions.
Respondents later learned other landowners received compensation at P448.30 to P450.00 per sqm for similar portions taken, either via court or compromise agreements.

Respondents filed a Complaint for rescission, recovery of possession, removal of towers, damages and other reliefs before the RTC, docketed as Civil Case No. DNA-547, claiming just compensation.
Petitioner contended that under its Charter, only an easement fee of 10% of market value plus damage to improvements is payable, rejecting claims for full compensation.
Parties agreed at pre-trial that petitioner took 3,199 sqm of land and that only the amount of just compensation was disputed; respondents filed a Motion for Summary Judgment.
Petitioner was granted extensions but failed to file Opposition or evidentiary support, though it claimed ongoing verification of area taken and inclination to join summary judgment if area confirmed.
RTC granted summary judgment on 16 April 2001 awarding P448.33 per sqm or P1,434,207.67 total damages with 14% interest from 1996; later reduced interest rate in an August 2001 Order.
Petitioner appealed to the Court of Appeals, which affirmed the RTC decision and denied motion for reconsideration in October 2006.
Petitioner filed a Petition for Review on Certiorari before the Supreme Court.

Whether the Court of Appeals erred in upholding the RTC’s resort to summary judgment to determine just compensation.
Whether the Court of Appeals erred in affirming that the total affected area was 3,199 sqm.
Whether the Court of Appeals erred in using the RTC’s Decision in Civil Case No. DNA-379 as sufficient basis for fixing just compensation at P448.33 per sqm.
Whether respondents are only entitled to easement fees (10% of market value) under petitioner’s Charter, not full just compensation.