Title
Republic vs. Lara
Case
G.R. No. L-5080
Decision Date
Nov 29, 1954
The Philippines expropriated land for Fernando Air Base; disputes arose over land classification, valuation date, compensation for Japanese-built improvements, and interest calculations. The Supreme Court ruled on just compensation, damages, and interest, rejecting claims for rentals and sentimental losses.

Case Summary (G.R. No. 168672)

Background and Procedural History

Post-liberation, the U.S. Army took control of the airfield and eventually transferred it to the Philippine government on July 4, 1946. The Philippine Army's efforts to purchase the land were largely unsuccessful, leading to a complaint for expropriation filed on July 9, 1949, after negotiations stalled with many landowners dissatisfied with the proposed compensation. The initial estimated value of the land was set at P117,097.52, which the government deposited with the appropriate authorities. The case was adjudicated in the Court of First Instance of Batangas, where a committee was appointed to assess the compensation due to the expropriated landowners.

Findings of the Court below

The appointed Commissioners classified the parcels as either residential or agricultural, proposing valuations based on their assessments. The Court accepted most of the Commissioners’ findings regarding compensation but disputed aspects related to improvements made by Japanese forces on the land and certain damages claimed by the defendants. Both parties subsequently appealed the lower court's decision regarding the compensation awards.

Issues Presented by Appellant and Appellee

The plaintiff-appellant contended that: (1) none of the parcels were residential at the time of expropriation; (2) the property value should reflect the date of possession (1946) rather than the filing date (1949); (3) unverified consequential damages were awarded without considering benefits to the defendants; and (4) interest should only be calculated on excess amounts owed beyond the provisional deposit. Conversely, the defendants-appellants argued for higher valuations than those set by the lower court, additional compensation for improvements, and questioned classifications regarding property usage.

Evaluation of Property Classification and Compensation

The Court found the plaintiff-appellant's position on residential property classification unmeritorious, citing historical evidence indicating residential use prior to Japanese occupation. The argument that valuation should occur at the time of actual possession rather than the filing is significant in ensuring fair compensation, as outlined in judicial precedent.

Valuation Evidence

The Court analyzed the credibility of sales transactions as evidence of property values. The plaintiff's pre-war transactions were dismissed as irrelevant due to inflation post-war. In contrast, sales presented by the defendants from 1945 to 1950 were deemed relevant and provided a basis for the valuation assigned to residential and agricultural land.

Conclusion on Just Compensation and Improvements

The Court upheld the lower court's valuation recommendations based on credible evidence and modified certain classifications of the properties in question. The decisions on excluding compensatory value for improvements made by the Japanese forces were affirmed, as the Philippines inherited t

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