Title
Forfom Development Corp. vs. Philippine National Railways
Case
G.R. No. 227432
Decision Date
Jun 30, 2020
PNR's expropriation of Forfom's lots for a railway project was contested due to delays, alleged abandonment, and unauthorized leasing. SC directed trial court to resolve public purpose, just compensation, and Forfom's right to recover rentals.

Case Summary (G.R. No. 227432)

Case Background and Procedural History

This case originates from G.R. No. 124795, where the Supreme Court initially ruled on December 10, 2008, directing PNR to file an expropriation case for certain lots owned by Forfom, emphasizing the need for just compensation. Following the finality of this decision, PNR filed an expropriation complaint against Forfom, leading to Civil Case No. SPL-1542-10 in the Regional Trial Court of San Pedro, Laguna. Throughout subsequent proceedings, Forfom consistently challenged PNR’s actions, arguing grounds such as abandonment of the railway project and improper leasing of the subject properties to third parties.

Expropriation Proceedings and Issues Raised by Forfom

As the expropriation case progressed, Forfom filed multiple motions, including prayers for dismissal and requests for document production. The trial court set preliminary conferences and pre-trial sessions but dismissed Forfom's motions largely due to procedural shortcomings and the determination that prior issues had been adjudicated. The core question arising was the nature of just compensation, the timeline for the property’s valuation, and whether PNR's leasing activities constituted ultra vires acts.

Developments in the Court of Appeals

Forfom appealed multiple orders of the trial court to the Court of Appeals, which dismissed parts of the appeal on procedural grounds while also noting that certain issues regarding the lawfulness of expropriation had been settled in prior rulings. The Court of Appeals established deadlines for the parties to present evidence and complete the expropriation process but ultimately found other claims by Forfom, particularly those connected to contempt and damages, outside its reach, as these matters were directed to be resolved by the trial court.

Supreme Court's Review and Findings

Upon review, the Supreme Court upheld the Court of Appeals’ dismissal of certain claims based on procedural grounds but recognized the need for the trial court to determine essential questions such as the public purpose underpinning the expropriation, PNR's authority to lease the properties, and whether Forfom was entitled to rental collections. The Court emphasized the importance of these determinations, clarifying that expropriation, to be constitutional, must serve a valid public interest.

Ruling and Directives to the Trial Court

The Supreme Court concluded that the trial court must promptly conduct hearings to resolve the remaining significant issues about public purpose and the legality of

...continue reading

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.