G.R. No. 177611 - Republic vs. Legaspi, Sr.

In December 1978, respondent Rosalina Libo-on executed a letter of intent to sell to the University of the Philippines in the Visayas (UPV) a 40,133-square meter property identified as Lot No. 1 of Psu-193912 Amd. in Miag-ao, Iloilo, under Original Certificate of Title (OCT) No. F-20020.
A Deed of Definite Sale was executed between Rosalina and UPV, with the consent of then-tenant Vicente Libo-on, for a consideration of P56,479.50. UPV took possession and began developing the property for educational use, including building road networks, infrastructure, and school facilities.
The UP Board of Regents reaffirmed the use and development of the property at their meeting dated 15 December 1995.

On 4 January 1980, Rosalina rescinded the sale, claiming she was no longer owner as she bartered/exchanged the property on 5 September 1978 to respondents Rodolfo L. Legaspi, Sr., Querobin Legaspi, Ofelia Legaspi-Muela, Purisima Legaspi Vda. De Mondejar, Vicente Legaspi, Rodolfo Legaspi II, and others.
UPV discovered that Lot No. 1 had been subdivided into ten lots, registered under Transfer Certificates of Title (TCT) in respondents’ names, the lots ranging from 1,250 to 16,286 sqm.

On 8 August 1991, UPV filed an eminent domain complaint against respondents before the Regional Trial Court (RTC) of Iloilo City, docketed as Civil Case No. 19921. They alleged the property was part of UPV’s approved campus and sought to expropriate it due to respondents’ refusal to negotiate.
The RTC allowed UPV to continue possession upon a deposit representing provisional valuation.
Respondents claimed UPV's expropriation right should be limited to three of the subdivided lots (TCT Nos. 8193, 8194, 8196 – total 8,516 sqm). The RTC issued an Order of Condemnation on 1 April 1992 for those lots.
UPV sought to continue condemnation over the remaining seven lots and filed an amended complaint adding mortgagees as defendants. The RTC issued pre-trial orders and scheduled issues for trial.

On 16 June 2000, the RTC fixed just compensation for the three lots at P51,096.00.
On 17 November 2003, the RTC issued an Order of Condemnation allowing UPV to expropriate the remaining seven lots, but excluded areas occupied by Villa Marina Beach Resort operated by respondent Rodolfo Legaspi, Sr.
Petitioner UPV and the Republic of the Philippines filed motions for reconsideration, claiming inclusion of the resort area was necessary for UPV’s intended use. Respondents filed motions opposing inclusion of several lots, citing existing businesses, residential use, and a public cemetery.
On 31 May 2004, the RTC partially reconsidered and denied expropriation of the seven remaining lots, citing the lack of adverse effect on UPV’s campus plans without these areas, and respecting existing private businesses, residences, and the public cemetery.

Aggrieved, petitioner filed a Rule 65 petition for certiorari before the Court of Appeals (CA) on 16 August 2004, challenging the RTC’s 31 May 2004 order.
The CA denied the petition on 26 April 2007, ruling that certiorari was improper as an appeal was the correct remedy, and the RTC’s actions were within its jurisdiction.
Petitioner then filed the instant petition for review on certiorari before the Supreme Court.

Whether the Court of Appeals erred in dismissing the Rule 65 petition for certiorari filed by the petitioner, UPV, and affirming the RTC’s 31 May 2004 order that denied the expropriation of the seven lots without stating clearly the facts and the law on which the order was based.

Whether the RTC gravely abused its discretion when it excluded the area occupied by Villa Marina Beach Resort from the expropriation and later denied UPV’s right to expropriate the seven lots altogether despite UPV’s asserted public purpose and payment of just compensation.