Title
Land Bank of the Philippines vs. Spouses Orilla
Case
G.R. No. 157206
Decision Date
Jun 27, 2008
Spouses Orilla contested DAR's land valuation under RA 6657; SAC granted execution pending appeal due to their advanced age and prolonged deprivation, upheld by SC for prompt just compensation.

Case Summary (G.R. No. 157206)

Factual Background

The Department of Agrarian Reform (DAR) issued a Notice of Land Valuation and Acquisition to the respondents in November 1996, offering compensation of P371,154.99, which the respondents rejected. Following a summary hearing by the Provincial DAR Adjudication Board (DARAB), the initial valuation was upheld. The respondents then sought judicial relief from the Regional Trial Court (RTC) designated as a Special Agrarian Court (SAC), resulting in a determination of just compensation at P7.00 per square meter, totaling P1,479,023.00, which included legal interests and attorney's fees.

Petition for Execution Pending Appeal

Upon receiving the SAC's decision, the petitioner filed a notice of appeal, while the respondents filed a motion for execution pending appeal, arguing that they were entitled to the compensation due to their deprivation of property. The SAC granted the motion, ordering the Land Bank to deposit the determined amount for the respondents' benefit, which the Land Bank appealed, leading to the Court of Appeals' dismissal of the petition and affirmation of the SAC's order.

Legal Grounds of Petitioner's Appeal

The Petitioner asserts that the Court of Appeals erroneously upheld the SAC's grant of execution pending appeal. It contends that the principle of "prompt payment" of just compensation should have been satisfied through the provisional compensation outlined in Section 16(e) of RA 6657, rather than by allowing an execution pending appeal. Furthermore, it argues that the reasons cited by the SAC do not meet the required standards for granting such execution, particularly given the lack of a hearing.

Discretionary Execution Overview

The legal framework for execution pending appeal is provided by Section 2(a) of Rule 39 of the Rules of Court, which allows it under specific conditions and requires a showing of good reasons justifying such execution. The court emphasized that these reasons should be compelling enough to warrant urgent action that outweighs potential harm to the losing party.

Court's Rationale for Granting Execution

The Supreme Court highlighted the expropriation process under RA 6657 as transformative, aimed at redistributing land to benefit farmers. The court affirmed the SAC's action which allowed for execution pending appeal, citing the extraordinary circumstances faced by the landowners, including their age and the prolonged deprivation of their property, which aligned with the principle of "just compensation" that encompasses timely payment.

Valuation and Compensation Analysis

The SAC’s determination of just compensation at P7.00 per square meter stemmed from extensive evidence regarding the property's characteristics, location, and econo

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