Case Digest (G.R. No. 240957)
Case Digest (G.R. No. 240957)
Facts:
Republic of the Philippines, represented by the Department of Public Works and Highways (DPWH) v. Alathea H. Sinense, Florentino Diana, Pacific Rehouse Corporation and Philippine Estates Corporation, G.R. No. 240957, February 14, 2022, Second Division, Inting, J., writing for the Court.The Republic (through DPWH) filed an amended complaint for expropriation on December 8, 2006 to acquire eleven parcels totaling 84,925 sq.m. (affected portions varying per lot) in Barangays Balabago and Buhang, Jaro, Iloilo City for the Iloilo Flood Control Project II (the Jaro Floodway). The Republic deposited P188,313,599.55 (BIR zonal valuation plus provisional value of improvements), and the Regional Trial Court (RTC), Branch 24, Iloilo City, issued a writ of possession on January 24, 2007.
The RTC appointed a Board of Commissioners (BOC) to determine just compensation. The BOC (composed of Engineer Jerry A. Rapista, CPA Jose Monis—later substituted by Atty. Aristeo Cruz— and Atty. Mateo Hachuela) conducted ocular inspection, hearings and expert interviews, and on August 29, 2007 (later revised April 19, 2011) recommended just compensation of P1,920,374,374.00, which included amounts for land, improvements and consequential damages. The Republic insisted the BIR zonal value of P1,800.00/sq.m. should control; respondents PRC and PEC claimed P2,598,661,687.00.
On November 13, 2012 the RTC adopted the BOC Report and rendered judgment directing payment of PHP 1,920,374,373.00 (noting a one-peso discrepancy in the fallo), finding the BOC’s valuation consistent with the properties’ highest and best uses and supported by expert testimony. On May 22, 2013 the RTC denied motions for reconsideration but deleted the payment of VAT. Both the Republic and PRC/PEC separately appealed to the Court of Appeals (CA).
On December 18, 2017 the CA in CA‑G.R. CEB CV No. 05070 affirmed the RTC’s valuation but modified the award of interest: it imposed legal interest at 12% per annum from the taking until June 30, 2013 and 6% per annum from July 1, 2013 until full payment (citing BSP Circular No. 799, Series of 2013). The CA denied motions for reconsideration on July 23, 2018.
The Republic filed a Petition for Review on Certiorari under Rule 45 raising one principal contention: that just compensation should be fixed at P1,800.00 per sq.m. and that the BOC’s report (and the RTC/CA adoption) was speculative and not supported by proper factors. The Supreme Court resolved the petition on February 14, 2022.
Issues:
- Did the Court of Appeals err in affirming the RTC’s adoption of the Board of Commissioners’ valuation and in fixing just compensation at P1,920,374,374.00 (broken down as P791,689,947.00 for land and P1,128,684,426.00 for improvements, opportunity losses, VAT and consequential damages), and in the award of interest?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)