Title
Republic vs. Spouses Salvador
Case
G.R. No. 205428
Decision Date
Jun 7, 2017
The Republic expropriated land for a road project, paying just compensation. The Supreme Court ruled capital gains tax is the seller's liability, not consequential damages, reversing the RTC's award.
A

Case Digest (G.R. No. 167715)

Facts:

  • Ownership and Expropriation Proceedings
    • Respondents Spouses Senando F. Salvador and Josefima R. Salvador are registered owners of a 229-sqm parcel of land in Kaingin Street, Barangay Parada, Valenzuela City, covered by Transfer Certificate of Title No. V-77660.
    • On November 9, 2011, the Republic of the Philippines, represented by the Department of Public Works and Highways (DPWH), filed a verified complaint for the expropriation of 83 sqm of the parcel, including improvements, for the construction of the C-5 Northern Link Road Project Phase 2 (Segment 9).
  • Payment of Compensation and Possession
    • On February 10, 2012, DPWH issued two checks to respondents:
      • ₱161,850.00 representing 100% zonal value of the 83-sqm area.
      • ₱523,449.22 representing the value of the one-storey semi-concrete house.
    • The same day, the RTC issued a Writ of Possession in favor of the Republic; respondents acknowledged no objection to the expropriation, confirmed receipt of ₱685,349.22, and declared no further claims for just compensation.
  • RTC Decision, Reconsideration, and Petition
    • On August 23, 2012, the RTC granted expropriation, condemned the property, and awarded consequential damages equal to the capital gains tax and other transfer taxes.
    • The Republic filed a Motion for Partial Reconsideration on the capital gains tax issue; the RTC denied it on January 10, 2013 as belated and upheld the award of consequential damages.
    • The Republic then filed a Petition for Review on Certiorari under Rule 45, challenging both the August 23, 2012 Decision and January 10, 2013 Order.

Issues:

  • Whether the RTC correctly denied the Republic’s Motion for Partial Reconsideration as filed out of time.
  • Whether capital gains tax on the transfer of the expropriated property may be awarded as consequential damages.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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