Title
Republic vs. Heirs of Ferdez
Case
G.R. No. 175493
Decision Date
Mar 25, 2015
Heirs contested expropriation of their land for a highway, citing insufficient payment and non-compliance with RA 8974. SC upheld CA, voiding writ of possession due to incorrect zonal valuation.

Case Summary (B.M. No. 139)

Initiation of Expropriation Proceedings

On June 5, 2001, the Republic filed a Verified Complaint for Expropriation against the Heirs of Fernandez and another property owner. The Republic sought to acquire the properties for the construction of a four-lane highway, asserting that negotiations for purchase were unsuccessful and indicating that adjacent properties were already acquired. The petition included a request for a Writ of Possession upon the deposit of the property's value, provisionally set at a maximum of P50.00 per square meter.

Respondents' Opposition

The Heirs of Fernandez acknowledged the utility of the highway project but contested the necessity of expropriating their property, arguing that the Republic had not complied with statutory requirements outlined in Republic Act No. 8974. They disputed the proposed compensation, asserting that the actual fair market value was P1,200.00 per square meter.

Court Proceedings and Findings

During pre-trial, no stipulation of facts was established. The trial court allowed the Republic to take possession of the property on February 21, 2002, based on a check representing a deposit of P167,475.00. The Heirs filed subsequent motions disputing the order due to alleged lack of proper notification and called for the nullification of the February Order.

Court of Appeals Decision

The Court of Appeals ultimately reversed the trial court's decision on August 25, 2006, ruling that the Republic failed to meet the requirements of Republic Act No. 8974 before taking possession. The appellate court acknowledged the justification for the highway project but emphasized due process principles, affirming the necessity of complying with procedural statutory guidelines.

Evaluation of Compensation Valuation

The appellate court further analyzed the evidence presented regarding the zonal valuation. The Republic's evidence indicated a valuation of P15.00 per square meter for pastureland, whereas the Heirs contended the valuation should be P50.00 per square meter as agricultural land. The appellate court sided with the Heirs, asserting the necessity for the Republic to pay 100% of the correct zonal value prior to obtaining a Writ of Possession.

Legal Framework and Requirements for Expropriation

According to Section 4 of Republic Act No. 8974, before expropriation, an implementing agency must pay the property owner an amount corresponding to 100% of the property’s zonal valuation and present a certificate of availability of funds before a Writ of Possession is issued. The Act mandates immediate payment as part of safeguarding property owner rights during the expropriation process.

Conclusion on Legal Compliance

The Supreme Court affirmed the Court of Appeals' decision, reiterat

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