Case Digest (G.R. No. 19761)
Facts:
This case involves the Republic of the Philippines, represented by the Regional Executive Director, Region X, Department of Public Works and Highways (DPWH) as petitioner, versus Benjohn Fetalvero as respondent. The controversy arose from the taking of a portion of Fetalvero’s land in Iligan City, Lanao del Norte by DPWH in 1999 for a flood control project. The subject property was a 2,787-square meter parcel covered by Transfer Certificate of Title (TCT) No. T-25,233. The government took 569 square meters, and Fetalvero demanded payment for the entire area at P15,000 per square meter, claiming the remaining land became useless. The government relied on Presidential Administrative Order No. 50, series of 1999, which set the just compensation at P2,500 per square meter plus 10%.
Negotiations failed, and on February 13, 2008, the Republic filed a complaint for expropriation before the Regional Trial Court (RTC) for the determination and payment of just compensation and judgment o
Case Digest (G.R. No. 19761)
Facts:
- Parties and Background
- The petitioner is the Republic of the Philippines, represented by the Regional Executive Director, Region X, Department of Public Works and Highways (DPWH). The respondent is Benjohn Fetalvero.
- Fetalvero owned a 2,787-square meter parcel of land in Iligan City, covered by Transfer Certificate of Title No. T-25,233.
- In 1999, DPWH Region X took 569 square meters of Fetalvero’s land for a flood control project. Fetalvero demanded just compensation for the entire area at P15,000 per square meter, contending the remainder was rendered useless. Under Presidential Administrative Order No. 50, series of 1999, the just compensation was P2,500 per square meter plus 10%. Negotiations failed to agree on amount.
- Legal Proceedings
- The Republic, via the Office of the Solicitor General (OSG), filed a complaint for expropriation before the Regional Trial Court (RTC), Branch 3, Iligan City (Civil Case No. 7118), seeking determination of just compensation and condemnation of the land portion.
- The OSG deputized Atty. Earnest Anthony L. Lorea, DPWH Region X Legal Staff Chief, to assist in the case. It retained supervision and control, reserving that only notices of orders, decisions, and resolutions served on the OSG will bind the government.
- The RTC referred the case to the Philippine Mediation Center on June 27, 2008.
- Compromise Agreement and Approval
- On September 1, 2008, the parties entered into a Compromise Agreement:
- Area involved: 1,428 square meters.
- Price: P9,500 per square meter, totalling P13,566,000, payable not later than September 2009 with 12% interest thereafter until fully paid.
- Expenses for documentation and transfer charged to plaintiff.
- Fetalvero moved for approval of the Compromise Agreement; on October 17, 2008, the RTC approved it. The Republic received a copy on November 6, 2008.
- Post-Approval Developments
- On May 13, 2009, the DPWH Manila requested OSG’s advice on the Agreement’s legality.
- On June 4, 2009, OSG responded the government was not bound by the Agreement as it was not submitted for OSG review as required by the deputation letter and Notice of Appearance, and the Agreement failed to show computation of compensation.
- On July 20, 2009, Fetalvero filed a Motion for Issuance of a Writ of Garnishment to enforce the RTC’s approval order, alleging Atty. Lorea ignored writs of execution served.
- The Republic opposed, asserting the Agreement’s invalidity and that government funds may not be garnished or levied.
- Trial Court and Court of Appeals Decisions
- On September 22, 2009, the RTC granted Fetalvero’s Motion for Writ of Garnishment, ruling that:
- OSG had been served the October 17, 2008 Order approving the Agreement but failed to question its validity, thus precluded by laches.
- Judgment on compromise is immediately executory and binding.
- Government funds appropriated under SAA-SR 2009-05-001538 for payment of road-rights-of-way are subject to garnishment.
- The Republic moved for reconsideration, which was denied on April 23, 2010.
- The Republic filed a petition for certiorari before the Court of Appeals (CA), which denied the petition on July 29, 2011, affirming the RTC Orders and holding:
- OSG’s failure to challenge the Order promptly binds the government.
- Public funds allocated by law for payment of judgment can be garnished.
- Petition to the Supreme Court
- The Republic filed a Petition for Review on Certiorari before the Supreme Court, arguing:
- The Compromise Agreement is void without OSG’s prior approval as required.
- The just compensation is grossly excessive and unsupported by computation.
- Government funds should not be subject to writs of execution or garnishment without first filing claim with the Commission on Audit (COA) as required by law.
- Fetalvero argued the Agreement attained finality on RTC approval, OSG had actual knowledge but did not appeal, and that the writ of garnishment was properly issued. Partial payment was already made under SARO No. BMB-A-10-0018567.
Issues:
- Whether the Compromise Agreement is void for not being submitted to the Office of the Solicitor General for review and approval as required by the deputation letter and Notice of Appearance.
- Whether the Compromise Agreement is void because the amount of just compensation is allegedly grossly disadvantageous to the government and the computation is not indicated.
- Whether government funds may be subject to writ of execution or writ of garnishment to satisfy money judgments against the government.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)