THE DETERMINATION OF JUST COMPENSATION IS RECKONED AT THE TIME OF THE

FILING OF EXPROPRIATION COMPLAINT

City of Iloilo vs. Contreras-Besana
G.R. No. 168967; February 12, 2010
Del Castillo, J

FACTS:
In this petition for certiorari under Rule 65 before the Supreme Court, petitioner City of
Iloilo seeks to overturn the three orders issued by public respondent RTC ruling that the
determination of just compensation is reckoned not at the time the property was condemned but
at the time the order granting the writ of possession was issued.
On September 18, 1981, a complaint for eminent domain was filed by petitioner against
private respondent Elpidio T. Javellana (Javellana), seeking to expropriate two parcels of land
owned by Javellana to be used as a school site for Lapaz High School. On May 17, 1983, the
RTC issued an order granting petitioner's writ of possession and authorized the petitioner to
take immediate possession of the subject property after depositing to the account of Javellana
the amount of P40,000 for the value of the land. Sixteen years later, Javellana discovered that
no such deposit was ever made. After failing to arrive at an amicable settlement, Javellana filed
a complaint for recovery of possession.
The RTC issued the first assailed order and ruled that the value of the property is
determined not at the time it was condemned but at the time the complaint was filed in court.
Neither party sought reconsideration of this Order. Nonetheless, the RTC issued the second
and third assailed order and held that the value of the property should be reckoned not at the
time it was condemned but at the time the 1983 order was issued.
As the case reached the Supreme Court, petitioner claims that the computation for just
compensation should be made as of September 18, 1981, the date when the expropriation
complaint was filed. On the other hand, private respondent posits that the reckoning date should
be in 2004 because of the "clear injustice to the private respondent who all these years has
been deprived of the beneficial use of his properties."

ISSUE: Whether or not just compensation for the expropriation should be based on the subject
property's fair market value at the time of taking and not at the time filing of the complaint.

HELD:
No, just compensation for the expropriation is based on the subject property's fair market
value at the time of the filing of the complaint.
Jurisprudence constantly affirms that when the taking of the property sought to be
expropriated coincides with the commencement of the expropriation proceedings, or takes place
subsequent to the filing of the complaint for eminent domain, the just compensation should be
determined as of the date of the filing of the complaint.
In this case, there is no reason to depart from the general rule that the point of reference
for assessing the value of the subject property is the time of the filing of the complaint for
expropriation.
Therefore, the reckoning date for the determination of just compensation is based on
the subject property's fair market value at the time filing of the complaint and not at the time of
taking.