Case Digest (G.R. No. 218732)
Facts:
Republic of the Philippines, represented by the Secretary of the Department of Public Works and Highways (DPWH), petitioner, vs. Jose Gamir-Consuelo Diaz Heirs Association, Inc., respondent, G.R. No. 218732, November 12, 2018, the Supreme Court Third Division, Reyes, Jr., J., writing for the Court.Jose Gamir-Consuelo Diaz Heirs Association, Inc. (respondent) was the registered owner of a 1,836-square-meter parcel under TCT No. T-7550. The DPWH had occupied the property since about 1957. After negotiations, on August 9, 2005 respondent and the Republic (through DPWH) executed a Deed of Absolute Sale whereby respondent sold the parcel for P275,099.24; the title was later registered in the Republic’s name as TCT No. T-390639 and respondent acknowledged receipt of the purchase price.
On November 15, 2006 respondent sued in the Regional Trial Court (RTC), claiming that the DPWH had taken the property in 1957 and demanding legal interest computed from that taking because just compensation was not paid promptly. The RTC, Branch 15, Davao City, dismissed the complaint in a March 4, 2010 Decision. Respondent appealed to the Court of Appeals (CA).
The CA, in a December 12, 2013 Decision, reversed the RTC and awarded interest at 12% per annum from 1957 until full payment, reasoning that legal interest is a statutory/judicial incident of delayed just compensation and cannot be waived by a deed executed after a taking. The CA denied reconsideration in a June 9, 2015 Resolution. The Republic filed a petition for review on certiorari under Rule 45 seeking reversal of the ...(Subscriber-Only)
Issues:
- Whether respondent is entitled to receive payment of legal interest notwithstanding the absence of any stipulation for interest in the Deed of Absolute Sale with peti...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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