Case Digest (G.R. No. 186069)
Facts:
In Spouses Jesus L. Cabahug and Coronacion M. Cabahug vs. National Power Corporation (G.R. No. 186069, January 30, 2013), petitioners owned two contiguous parcels in Barangay Capokpok, Tabango, Leyte, registered as TCT Nos. T-9813 and T-1599. Earlier, NPC initiated Special Civil Action No. 0019-PN expropriation proceedings but later opted to settle under Section 3-A of Republic Act No. 6395, agreeing to pay an easement fee equivalent to ten percent of market value. At NPC’s request, the Leyte Provincial Appraisal Committee set the per-square-meter value at ₱45.00. On November 9, 1996, petitioners executed two Right of Way Grants in NPC’s favor, accepting ₱112,225.50 and ₱21,375.00 for permanent easements over 24,939 m² and 4,750 m² respectively, but expressly reserving the right to seek additional compensation under this Court’s decision in NPC v. Gutierrez (G.R. No. 60077, January 18, 1991). On September 21, 1998, they filed Civil Case No. PN-0213 in the RTC of Palompon, Leyte,Case Digest (G.R. No. 186069)
Facts:
- Parties and Procedural History
- Petitioners: Spouses Jesus L. Cabahug and Coronacion M. Cabahug; Respondent: National Power Corporation (NPC).
- Lower Courts:
- RTC, Branch 17, Palompon, Leyte (Civil Case No. PN-0213) – Decision dated 14 March 2000.
- CA, Eighteenth Division (CA-G.R. CV No. 67331) – Decision dated 16 May 2007; Resolution dated 9 January 2009.
- Supreme Court: Rule 45 Petition for Review on Certiorari (G.R. No. 186069), argued January 2013.
- Subject Properties and Prior Expropriation Proceeding
- Two parcels in Barangay Capokpok, Tabango, Leyte, covered by TCT Nos. T-9813 and T-1599.
- NPC’s Leyte-Cebu Interconnection Project expropriation suit (Special Civil Action No. 0019-PN) dismissed upon settlement under Section 3-A, RA 6395 (easement fee = 10% of property value).
- Leyte Provincial Appraisal Committee, at NPC’s request, fixed property value at ₱45.00 per square meter.
- Right of Way Grant and Reservation Clause
- On 9 November 1996, Jesus Cabahug executed two Right of Way Grants over 24,939 sqm and 4,750 sqm, receiving ₱112,225.50 and ₱21,375.00, respectively.
- Paragraph 4 reserved the option to seek additional compensation for easement fee “based on the Supreme Court Decision in G.R. No. 60077 (NPC vs. Gutierrez).”
- Complaint for Just Compensation
- On 21 September 1998, Spouses Cabahug filed Civil Case No. PN-0213 seeking:
- Balance of just compensation (₱1,202,404.50 based on 29,689 sqm × ₱45.00) plus legal interest from 3 January 1997.
- Attorney’s fees (5% of the just compensation).
- Actual damages (₱20,000) and litigation expenses.
- NPC’s Answer: asserted full payment of easement fee under RA 6395 and that the reservation applied only to additional easement fee, not full compensation.
Issues:
- Whether the reservation clause in the Right of Way Grant permits Spouses Cabahug to pursue additional compensation beyond the Section 3-A easement fee.
- Whether the CA erred in disregarding the Supreme Court’s decision in NPC v. Gutierrez and in upholding Section 3-A of RA 6395 to bar the award of full just compensation.
- Whether the awards of attorney’s fees and litigation expenses by the RTC are justified absent explicit reasoning in its decision.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)