Case Summary (G.R. No. 190795)
Appointment and Reports of Commissioners
To determine “just and reasonable” compensation, the trial court appointed three commissioners who conducted inspections and hearings. Their recommendations varied widely:
– NPC’s commissioner proposed an easement fee of ₱1.00 per sq m.
– Respondents’ commissioner recommended ₱10.00 per sq m (₱7,600 total).
– Court’s commissioner suggested ₱5.00 per sq m.
Trial Court Ruling and Reconsideration
The court initially adopted respondents’ valuation, awarding ₱10.00 per sq m plus ₱800 attorney’s fees. On NPC’s motion for reconsideration, the court reclassified the land as partly commercial and partly agricultural, reduced the award to ₱5.00 per sq m (₱3,800 total), and set aside attorney’s fees.
Court of Appeals’ Determination
NPC appealed, arguing that only a simple easement fee—limited to nominal payment—was due, since full ownership remained with respondents. The Court of Appeals affirmed the trial court, holding that the perpetual restrictions on land use, safety hazards beneath high‐tension lines, and respondents’ ongoing tax burden constituted a taking under eminent domain requiring full compensation.
Issue on Review
Whether NPC’s acquisition of a right‐of‐way easement for transmission lines constitutes an exercise of the power of eminent domain that entitles landowners to just (full market) compensation, or merely a simple easement fee.
Supreme Court Analysis
Power of Eminent Domain and Easements
– Under Commonwealth Act No. 120 and the 1987 Constitution, NPC may invoke eminent domain to impose a permanent burden (easement) without transferring title.
– The imposition of restrictions (e.g., height limitations, safety risks, permanent tax liability) effectively deprives owners of ordinary use, satisfying the definition of a “taking.”Just Compensation Standard
– Just compensation equals the full and complete monetary equivalent of the loss sustained (Art. III, Sec. 9).
– Market value at the time of taking is the primary criterion.Application to the Present Case
– Respondents presented evidence of higher market value (₱50.00 per sq m) given the parcel’s proximity to major highways.
– The trial court’s award of ₱5.00 per sq m was s
Case Syllabus (G.R. No. 190795)
Facts
- National Power Corporation (NPC), a government‐owned and controlled corporation, is vested with the power of eminent domain under Commonwealth Act No. 120 to construct, operate, and maintain electric transmission lines throughout the Philippines.
- NPC’s 230 KV Mexico–Limay transmission lines must traverse lands owned by Matias Cruz, the Heirs of Natalia Paule, and spouses Misericordia Gutierrez and Ricardo Malit (tax declarations Nos. 907, 4281, and 7582).
- NPC attempted to negotiate right-of-way easements with the landowners but, failing agreement, filed eminent domain proceedings on January 20, 1965.
- Upon filing, NPC deposited ₱973.00 with the Provincial Treasurer of Pampanga as provisional compensation for the Malit–Gutierrez property and thereby took possession to proceed with construction.
- By order of September 30, 1965, the Malit spouses were authorized to withdraw the provisional deposit of ₱973.00.
Trial Court Proceedings and Decision
- To determine just compensation, the trial court appointed three commissioners—one representing NPC, one representing the defendants, and one from the court—to receive evidence, conduct an ocular inspection, and appraise the property.
- During commissioners’ hearings, the case against the Heirs of Natalia Paule was settled by a Right of Way Grant (Exhibit C). The case against Matias Cruz was previously resolved, leaving only the Malit–Gutierrez claim for decision.
- Commissioners’ individual appraisals:
- NPC’s representative recommended an easement fee of ₱1.00 per sqm for the 760 sqm affected area (Annex M).
- Defendants’ representative recommended ₱10.00 per sqm, totaling ₱7,600.00 (Annex K).
- The court’s representative recommended ₱5.00 per sqm (Annex L).
- On December 4, 1972, the trial court ruled in favor of the defendants, awarding ₱10.00 per sqm (₱7,600.00) plus ₱800.00 as