Title
Secretary of the Department of Public Works and Highways vs. Spouses Tecson
Case
G.R. No. 179334
Decision Date
Apr 21, 2015
Tecsons’ property taken in 1940 for highway construction; compensation dispute ensues. Courts ruled P0.70/sq.m (1940 value) with 6% interest; Supreme Court upheld, adding exemplary damages.

Case Digest (G.R. No. 179334)
Expanded Legal Reasoning Model

Facts:

  • Taking of property
    • In 1940, the Department of Public Works and Highways (DPWH) took respondents-movants’ 7,268-sqm property in Malolos, Bulacan for construction of MacArthur Highway without expropriation proceedings or payment of compensation.
    • No expropriation case was filed and DPWH immediately entered into possession.
  • Demand and suit
    • By letter dated December 15, 1994, respondents demanded just compensation; DPWH offered ₱0.70 per sqm based on the Bulacan Provincial Appraisal Committee resolution.
    • Unsatisfied, respondents filed a complaint for recovery of possession with damages on March 17, 1995 (1995 Complaint).
  • Judicial proceedings
    • RTC, Branch 80, Malolos (2002): valued property at ₱1,500/sqm with 6% interest from filing.
    • CA, Second Division (2007): affirmed RTC award, 6% interest from March 17, 1995 until payment.
    • SC Third Division (July 1, 2013): granted government‐petition in part, reduced valuation to ₱0.70/sqm (1940 value), 6% interest from date of taking.

Issues:

  • Basis of valuation
    • Should just compensation be based on the property’s market value at the time of actual taking (1940) or at the time of filing of the complaint (1995)?
    • Can present‐day market value (e.g. ₱1,500/sqm) apply when taking occurred decades earlier?
  • Incidental reliefs
    • What is the correct interest rate and reckoning date for delay in payment?
    • Are respondents entitled to exemplary damages and attorney’s fees for DPWH’s illegal taking without expropriation proceedings?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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