Title
Rebadulla vs. Republic
Case
G.R. No. 222159
Decision Date
Jan 31, 2018
Rebadullas’ land taken by DPWH for SWIM Project without formal expropriation; dispute over just compensation, interest, and damages; SC remanded for proper valuation, upheld partial taking, denied damages.

Case Summary (G.R. No. 134015)

Background and Timeline

On March 17, 1997, DPWH took the Rebadullas' land without instituting expropriation proceedings. The Rebadullas rejected an initial offer of P2.50 per square meter based on valuation by the Provincial Appraisal Committee (PAC) and sought a reappraisal with a proposed valuation of P200.00 per square meter in 1998. After multiple unsuccessful attempts to negotiate a new price and following the denial of their requests for reappraisal, the Rebadullas filed a complaint for mandamus and damages in the Regional Trial Court (RTC) in 2002.

Petition and Legal Clauses

The RTC ultimately ruled on December 23, 2013, finding just compensation due at P7.00 per square meter based on the Bureau of Internal Revenue’s zonal valuation, along with legal interest and attorney’s fees. Both parties contested the RTC's ruling, leading to subsequent appeals to the Court of Appeals (CA), which modified aspects of the RTC's decision, notably increasing the interest rate to 12% per annum and deleting the award of attorney’s fees.

Legal Arguments and Court Rulings

The Rebadullas laid out several issues in their appeal. They contended that the CA erred in relying solely on BIR's zonal valuation, disregarding other valid appraisals, and failing to hold DPWH's project manager, Engr. Tomas Buen, personally liable for damages. The Government also countered that the nature of the mandamus proceeding precluded the determination of just compensation.

Just Compensation Standard

The Court acknowledged that just compensation is constitutionally mandated under Section 9, Article III of the 1987 Constitution. The standard for just compensation is the fair market value of the property at the time it is taken, aimed at placing the landowner in the same position they would have been absent the taking. Due consideration must be given to various factors influencing property value, including its character, improvements, and surrounding conditions.

Determining Just Compensation

The Court agreed with the trial court's findings that neither party presented sufficient evidence to substantiate their respective valuations conclusively. Furthermore, the Court clarified that while zonal valuation could inform just compensation, it should not be the sole determinant. The best practice would involve considering all relevant factors, such as actual sale prices of comparable properties, market conditions, and property use.

Area Taken by Government

The litigation focused on the area taken for public use, with the RTC and CA confirming that 154,521.49 square meters were affected. The Rebadullas claimed a larger area was taken, but the absence of concrete evidence from the Government at trial to definitively refute the lower courts’ findings inhibited their argument.

Interest on Compensation

The interest rate established by the CA, reflecting general monetary policies, was deemed applicable in this case. The Court articulated a differentiation between the interest applicable during different periods, with a 12% rate for the time from property taking in 1997 until mid-2013 and a 6% rate from that point until final payment.

Damages and Attorney's Fees

The Court upheld the CA's decision to de

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