Title
Republic vs. Heirs of Spouses Bautista
Case
G.R. No. 181218
Decision Date
Jan 28, 2013
DPWH expropriated land for a tollway project; heirs contested P100/sq.m offer. Courts upheld P1,960/sq.m as just compensation, citing market value and prior sale. SC affirmed, denying DPWH's appeal.

Case Summary (G.R. No. 147009)

Factual Antecedents

The Bautista spouses were the registered owners of a 1,893-square meter parcel of land covered by Transfer Certificate of Title No. 41750. In 2000, the DPWH acquired a 36-square meter portion of this property for the Southern Tagalog Arterial Road (STAR) project at a price of P1,300.00 per square meter. Subsequently, the DPWH sought to acquire an additional 1,155 square meters for the Balete-Lipa City Interchange Ramp B, offering P100.00 per square meter, which was rejected by the respondents. The DPWH then filed a Complaint for expropriation in 2004, asserting that the fair value of the property for expropriation purposes was P100.00 per square meter according to the Bureau of Internal Revenue (BIR).

Expropriation Proceedings

Upon onset of the expropriation proceedings, the Bautista spouses passed away, leading to their substitution by the respondents in the case. The respondents challenged the proposed valuation, asserting that previous sales of the same property indicated a higher market value. The trial court authorized the petitioner to take possession of the land after a deposit of P115,500.00 was made. A panel of commissioners was established to determine just compensation, issuing reports that ultimately influenced the trial court's valuation of the property.

Joint Commissioners' Reports

The court received two important reports: one from the Lipa City Assessor and the Registrar of Deeds and another from Mecate, a DPWH special agent. The former concluded that just compensation should range between P1,960.00 and P2,500.00 per square meter, considering the vicinity's market value and recent sales data. The latter's report suggested much lower values, focusing solely on tax declarations and the BIR zonal valuation, leading to criticism over its lack of contextual consideration.

Ruling of the Regional Trial Court

On August 18, 2005, the trial court fixed just compensation at P1,960.00 per square meter, amounting to P2,263,800.00, which included interest from the time DPWH took possession of the property. The trial court endorsed the Joint Commissioners' Report that reflected fair market value considerations, firmly dismissing the lower valuation proposed by Mecate.

Ruling of the Court of Appeals

The Court of Appeals (CA) affirmed the trial court’s decision, maintaining that the trial court properly evaluated fair market value based on multiple factors, including the previous higher sale price of a smaller property portion and appreciating land values due to urban development. The CA ruled that the Just Compensation was legally justified and noted that the respondents deemed the P1,960.00 valuation fair.

Petitioner’s Arguments

The petitioner contended that the CA erred in affirming the trial court’s valuation, arguing that the Joint Commissioners' Report overlooked critical statutory valuation factors outlined in Republic Act No. 8974. The petitioner maintained that the failure to consider these factors resulted in an inflated valuation. Furthermore, they claimed that the property’s supposed agricultural classification warranted a lower compensation range.

Respondents' Counterarguments

In their response, the respondents defended the trial court's valuation as reasonable and supported by evidence. They asserted that the assessment of value encompasses more than merely looking at tax declarations or BIR zonal valuations; the property’s condition and its evolving market context were appropriately considered.

The Court’s Ruling

The Supreme Court upheld the earlier rulings, clarifying that fact

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