Title
Land Bank of the Philippines vs. Santos
Case
G.R. No. 213863
Decision Date
Jan 27, 2016
Edgardo Santos contested DAR's land valuation under CARP; SC ruled LBP must release initial payment, allowed RTC to determine just compensation, and imposed 12% interest on unpaid amounts.

Case Summary (G.R. No. 213863)

Background of the Case

Edgardo L. Santos owned three parcels of agricultural land, which were subjected to agrarian reform under Presidential Decree No. 27 in 1984. The Department of Agrarian Reform (DAR) assessed the just compensation for these lands, establishing values of P164,532.50 for Land 1, P39,841.93 for Land 2, and P66,214.03 for Land 3. The LBP later allowed Santos to collect the initial valuation for Land 3 but withheld that for Lands 1 and 2 pending the submission of necessary documentation.

Initial Proceedings

Santos challenged the LBP's valuation, filing several petitions for the determination of just compensation before the Office of the Provincial Adjudicator, which subsequently set significantly higher evaluations for the lands involved. Dissatisfied, the LBP contested these determinations in the Regional Trial Court (RTC), arguing the computations were erroneous.

RTC Decisions and Orders

The RTC initially dismissed LBP's complaints, citing lack of jurisdiction and that the LBP had no legal standing. The case then evolved through several appeals, culminating in a series of RTC orders that directed the LBP to release the initial valuations and issue payments conditioned on the submission of certain documents by Santos. The LBP's motions for reconsideration were denied, leading to its petition for certiorari with the Court of Appeals (CA).

Court of Appeals Ruling

The CA upheld the RTC's decisions, affirming the orders for the release of initial valuations for Lands 1 and 2, reasoning that the requested documentation was not a strict precondition for the release. The CA ruled that Santos had sufficiently established ownership of the lands through tax declarations and did not bear responsibility for delays related to obtaining the necessary titles.

Issues Before the Supreme Court

The key issues presented before the Supreme Court included whether the RTC had acted with grave abuse of discretion in allowing the release of initial valuations without full compliance with administrative guidelines, whether res judicata precluded further proceedings for just compensation, and the appropriateness of the twelve percent interest awarded on unpaid just compensation.

Supreme Court's Analysis and Ruling

The Supreme Court reiterated that the expropriation of land occurs upon the payment of just compensation and emphasized that the agrarian reform process must be ensured under RA 6657. It held that the RTC did not act with grave abuse of discretion; hence, it permitted the release of valuations without strict adherence to documentary requisites, thereby expediting the payment process for

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