Title
Sanggacala vs. National Power Corp.
Case
G.R. No. 209538
Decision Date
Jul 7, 2021
Farmers sued NPC for flood damage caused by mismanagement of Lake Lanao’s water levels; Supreme Court ruled NPC negligent, awarding actual damages.

Case Digest (G.R. No. 209538)
Expanded Legal Reasoning Model

Facts:

  • Parties and Background
    • National Power Corporation (NPC) is a government-owned and controlled corporation established under Commonwealth Act No. 120, tasked with hydroelectric development and power transmission nationwide.
    • In 1978, NPC built the Agus Regulation Dam on the Agus River at Saduc, Marawi City, to regulate Lake Lanao’s outflow and feed its hydroelectric power plants (Agus I, II, IV, VI, VII, VIII).
  • Regulatory Context
    • Memorandum Order No. 398 (1973) reserved areas below 702 m elevation around Lake Lanao, mandating NPC to place benchmarks warning against cultivation below that level.
    • Letter of Instruction No. 1310 later set the lake’s minimum elevation at 697 m and maximum at 702 m, allegedly enabling NPC to expropriate lands within the five-meter band.
  • Petitioners’ Complaints and Trial Court Proceedings
    • Petitioners (farmers and fishpond owners of Ranao-NPC Affected Organization) sued NPC for damages to their lakeshore properties in 1979, 1984, 1986, 1989, 1993, 1994, 1995, and 1996, alleging NPC’s refusal to open dam floodgates caused repeated flooding.
    • NPC denied liability, contending petitioners’ improvements were illegally below 702 m and that any flooding was damnum absque injuria.
    • The Regional Trial Court (RT Court) in a December 12, 2005 Joint Judgment found NPC negligent, awarded actual damages, moral damages, exemplary damages, attorneys’ fees, just compensation, rental, and 6% interest.
  • Court of Appeals and Supreme Court Proceedings
    • The Court of Appeals (March 26, 2013) reversed the RT Court, ruling petitioners failed to establish causation or admissible evidence.
    • The Supreme Court granted petitioners’ Rule 45 petition, invited memoranda from parties and amici, and resolved issues on res judicata, environmental tort, negligence, damnum absque injuria, and entitlement to damages.

Issues:

  • Does conclusiveness of judgment (res judicata) bar petitioners’ claims based on prior NPC v. Court of Appeals decision?
  • Did NPC commit an environmental tort by negligence in operating the Agus Regulation Dam?
  • Did petitioners prove their damages by preponderant evidence?
  • Does the doctrine of damnum absque injuria apply to petitioners’ flooding claims?
  • Are petitioners entitled to the damages awarded by the RT Court (actual, moral, exemplary, just compensation, rental, attorneys’ fees, interest)?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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