Title
Republic vs. Villao
Case
G.R. No. 216723
Decision Date
Mar 9, 2022
DPWH expropriated land for a tollway project; SC remanded case due to hearsay evidence and improper valuation of just compensation, requiring recalculation based on 2004 market value.

Case Summary (G.R. No. 216723)

Factual Background

On March 18, 2004, the DPWH initiated expropriation proceedings for a 550-square meter parcel of land located in Kawit, Cavite, owned by Pacita Villao, to facilitate the Manila-Cavite Tollways Expressway Project. After initially depositing amounts for the land and structures on it, the Regional Trial Court granted a writ of possession and allowed the inclusion of Carmienett Javier as a defendant due to her ownership of the improvements on the property. Subsequent to the proceedings, the RTC established a Board of Commissioners (BOC) to determine just compensation for the expropriated land.

Assessment of Just Compensation

On August 15, 2011, the BOC recommended a compensation rate of P9,000.00 per square meter, considering factors such as location, market data, and comparables from nearby properties. The recommendation was primarily influenced by a previous RTC decision in a similar case (Republic v. Tapawan), wherein properties of similar type and location were valued similarly.

RTC Decision

The RTC ruled in favor of the respondents on October 24, 2011, adopting the BOC's recommended valuation. The total compensation was pegged at P4,950,000.00, ordered an additional payment of P3,905,000.00, and directed legal interest to be calculated from the taking of the property.

CA Ruling and Petitioner’s Appeal

Upon appeal, the CA affirmed the RTC's decision, asserting that the BOC's findings were substantiated by adequate evidence, including site inspections and corroborative materials. The petitioner, however, contended that the BOC report relied heavily on hearsay and lacked solid evidentiary support. The petitioner argued that just compensation should reflect the market conditions at the time of the expropriation complaint's filing, not speculative values from comparable transactions.

Court's Ruling

The Supreme Court found merit in the petitioner’s arguments, particularly regarding the reliance on the BOC’s valuation. It emphasized that just compensation must be determined as of the date of the complaint filing. The amount of P9,000.00 per square meter was deemed inconsistent with legal standards. The Court noted that the commissioners did not adequately demonstrate that the valuation reflected market conditions as of March 18, 2004.

Legal Interest Determination

The Court mandated a remand to the RTC for proper reassessment of just compensation, emphasizing the signifi

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