REPUBLIC OF THE PH, represented by the NAPOCOR v.

HEIRS OF SATURNINO Q. BORBON and CA

GR No. 165354 12 January 2015
By Kylie Dado
FACTS:
NAPOCOR entered a property in Brgy. San Isidro, Batangas
In order to construct and maintain transmission lines for the 230
KV Mahabang ParangPinamucan Power Transmission Project
o The heirs owned the propery (14, 257 sq. m.)
NAPOCOR filed a COMPLAINT in the RTC-Batangas
Seeking - acquisition of an easement of right of way over a
portion of the property involving an area of only 6,326 square
meters, more or less
Allegation:
o It had negotiated w/ the respondents but they failed to
reach any agreement
o It was willing to deposit P9,790.00 representing the
assessed value of the portion sought to be expropriated
Prayer:
o Issuance of a writ of possession upon deposit to enable it
to:
1. Enter and take possession and control of the
affected portion of the property
2. Demolish all improvements existing
3. Commence construction of the transmission line
project
4. Appointment of 3 commissioners to determine just
compensation
Heirs ANSWER:
NAPOCOR had not negotiated with them before entering the
property (Entry w/o consent), destroying some fruit trees without
payment, and installing 5 woodpoles for its project
Area being expropriated only covered the portion directly
affected by the transmission lines
Remaining portion of the property was also affected because the
transmission line passed through the center of the land, thereby
dividing the land into 3 lots
Presence of the high tension transmission line had rendered the
entire property inutile for any future use and capabilities
NONETHELESS, they tendered no objection provided it would pay
just compensation not only for the portion sought to be
expropriated but for the entire property whose potential was
greatly diminished, if not totally lost, due to the project;
Their property is an industrial land

Sought:
o
Dismissal of the complaint
o Payment of P1K/sq. m. & attorneys fees
o To be allowed to nominate their representative to the
panel of commissioners to be appointed by the trial court

PRE-TRIAL was conducted and the parties stipulated on the location,

number of heirs, names of the person upon whom title to the property
was issued, and the ownership & possession of the property.
RTC directed the parties to submit names of their nominees to sit
in the panel of commissions within 10 days from the date of pretrial
RTC constituted the panel of 3 commissioners.
2 commissioners submitted a joint report, and found:
o property was classified industrial land located within the
Industrial 2 Zone
o although it is used to be an agricultural land, it was
reclassified to industrial for appraisal/taxation purposes
o Reclassification was made on the basis of a certification
issued by the Zoning Administrator
2 commissioners appraised the value @ P550/sq. m.
3rd commissioner filed a separate report
o Recommended the payment of easement fee of at least
10% of the assessed value indicated in the tax
declaration + damages + improvements affected + tower
occupancy
Parties submitted their OBJECTIONS:
HEIRS - NAPOCOR should compensate them for the entire
property at the rate of P550.00/ sq. m. because the the property
was already classified as industrial land at the time NAPOCOR
entered it
NAPOCOR insisted that the property was classified as
agricultural land at the time of its taking, and only seeking an
easement of right of way over a portion of the property, not the
entire area so, it should only pay 10% of the assessed value of
the portion
RTC DECISION:
Price to be paid value at the time of taking, which is the date of
entry to the property or the date of the filing of the complaint
o There is no evidence as to when NAPOCOR entered so the
reference point should be the date of filing May 5, 1995
Gave more weight to the Joint Report of the 2 commissioners
o NOTE: the 2 commissioners who submitted the Joint
Report are govt EE, while the one who has a separate
report is a private lawyer representing the plaintif

Ordered NAPOCOR to pay:

1. Just compen for the whole area (14K sq. m.) @ the rate of
P550/sqm
2. Legal rate of interest from May 5 until full payment
3. Costs of suit

CA DECISION: Affirmed but modified the area to be covered 6,326 sqm

NAPOCOR appealed.
During the pendency of the appeal, NAPOCOR filed a Motion to Defer
Proceedings stating that the negotiations were going on with a view of
amicable settlement.
HOWEVER, a year after, NAPOCOR filed a Manifestation and
Motion to DISCONTINUE Expropriation Proceedings as:
o they failed to reach an agreement
o property is no longer necessary for public purpose
because of the intervening retirement of the transmission
lines installed on the heirs property
o public purpose ceased to exist
o prayed that the compensation be reduced by the
equivalent of the benefit they received from the land
during the time of its occupation
o Basis in dismissing the proceedings: Metropolitan Water
District vs. De Los Angeles, land sought to be
expropriated was no longer indispensably necessary in
the
maintenance
and
operation
of
petitioners
waterworks system
ISSUE: W/N THE EXPROPRIATTION PROCEEDINGS
DISCONTINUED/DISMISSED PENDING APPEAL

SHOULD

BE

SC: YES
Public use is the fundamental basis for the action for expropriation;
hence, NAPOCORs motion to discontinue the proceedings is warranted
and should be granted.
As discussed in the case of Metropolitan Water District vs. De Los
Reyes:
The fundamental basis then of all actions brought for the expropriation
of lands, under the power of eminent domain, is public use. That being
true, the very moment that it appears at any stage of the
proceedings that the expropriation is not for a public use, the
action must necessarily fail and should be dismissed, for the
reason that the action cannot be maintained at all except when
the expropriation is for some public use. That must be true
even during the pendency of the appeal or at any other stage of
the proceedings.

It is notable in that case that it was made subject to several

conditions in order to address the dispossession of the
defendants of their land, and the inconvenience, annoyance and
damages suffered by the defendants on account of the
proceedings. Accordingly, the Court remanded the case to the
trial court for the issuance of a writ of possession ordering
Metropolitan Water District to immediately return possession of
the land to the defendants, and for the determination of
damages in favor of the defendants, the claims for which must
be presented within 30 days from the return of the record to the
court of origin and notice thereof.

In this case, NAPOCOR seeks to discontinue the expropriation

proceedings on the ground that the transmission lines constructed on
the respondents property had already been retired.
Verily, the retirement of the transmission lines necessarily
stripped the expropriation proceedings of the element of public
use. To continue with the expropriation proceedings despite the definite
cessation of the public purpose of the project would result in the
rendition of an invalid judgment in favor of the expropriator due to the
absence of the essential element of public use.
No board resolution to discontinue the proceedings
Despite the lack of the board resolution, therefore, the Court now
considers the documents (such as the Memorandum &Certificate of
Inspection/Accomplishment) attached to NAPOCORs Manifestation and
Motion to Discontinue Expropriation Proceedings to be sufficient to
establish that the expropriation sought is no longer for some public
purpose.
NAPOCORs entry without the owners consent
NAPOCOR entered the property without the owners consent and
without paying just compensation to the respondents. Neither did it
deposit any amount as required by law prior to its entry.
It would be unfair for NAPOCOR not to be made liable to the
respondents for the disturbance of their property rights from the
time of entry until the time of restoration of the possession of
the property
Liability of NAPOCOR; Reckoning Point
There is sufficient showing that NAPOCOR entered into and took
possession of the property as early as in March 1993 without the benefit
of first filing a petition for eminent domain.
For all intents and purposes, therefore, March 1993 is the
reckoning point of NAPOCORs taking of the property, instead of
May 5, 1995, the time NAPOCOR filed the petition for
expropriation. (Basis: Ansaldo vs. Tantuico)
No just compensation, only damages

In view of the discontinuance of the proceedings and the eventual

return of the property to the respondents, there is no need to pay just
compensation to them because their property would not be taken by
NAPOCOR.
Instead of full market value, NAPOCOR should compensate the
respondents for the disturbance of their property rights from the
time of entry in March 1993 until the time of restoration of the
possession by paying to them actual or other compensatory
damages. (Basis: MactanCebu International Airport Authority v.
Lozada, Sr.)

Basis of damages
Basis would be the actual lost as a result and by reason of their
dispossession of the property and of its use, including the value of the
fruit trees, plants and crops destroyed by NAPOCORs construction of
the transmission lines
Conversion of the proceedings: Expropriation Proceedings Action for
Damages
Court remands the case to the court of origin for further proceedings,
with instruction to enable the parties to fully litigate the action for
damages.