Title
National Power Corp. vs. Suarez
Case
G.R. No. 175725
Decision Date
Oct 8, 2008
NPC expropriated land for a power project; SC ruled full compensation required for easement, not just a fee, due to significant impairment of land use.
A

Case Summary (G.R. No. 175725)

Factual Background

On August 23, 1996, NPC filed a complaint for expropriation with the Regional Trial Court (RTC) of Sorsogon to claim a parcel of land situated in Barangay Bibincahan, Sorsogon, which was owned by the respondents. NPC initially deposited P7,465.71 with the Philippine National Bank as the provisional value for the property, which was alleged to be 24,350 square meters in size. On September 23, 1996, NPC served a Notice to Take Possession to the respondents, and subsequently, the RTC issued a Writ of Possession after an ex parte motion was granted.

Discovery of Property Size and Damages

The respondents contested the expropriation, asserting that the property’s actual area was 34,950 square meters and alleging that NPC had already erected two transmission towers, substantially damaging their land by cutting down numerous trees and causing the loss of various crops. To determine just compensation, the trial court appointed commissioners who provided a report on September 11, 1997, confirming the property’s market value as well as the devaluation caused by NPC’s actions.

Just Compensation Assessment

The commissioners utilized various methodologies to establish just compensation, including Market Data Analysis, Income Productivity, and Zonal Valuation, arriving at a final compensation amount of P783,860.46. NPC, however, challenged this assessment, arguing that the payment should reflect only an easement fee based on an application of Section 3A(b) of RA 6395, which stipulates that easement compensation should be limited to 10% of the property’s market value.

Court Rulings

The trial court ruled in favor of the respondents, adopting the commissioners' findings and fixed the compensation amount accordingly. NPC appealed to the Court of Appeals, which upheld the trial court's decision. The pertinent legal question addressed was whether NPC, as the acquiring authority, was obligated to pay the full market value of the property despite only acquiring an aerial easement.

Applicability of Eminent Domain

The appellate court rejected NPC's argument favoring a lesser compensation, affirming that the acquisition of an easement of right of way constituted an exercise of eminent domain and necessitated just compensation reflective not only of the nominal right acquired but also of the encumbrances and limitations imposed on the owner’s property use. The court reasoned that such rights do not come without cost, especially when the

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