Eminent Domain

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Power of Eminent Domain - Expropriation - Just Compensation

In an expropriation case, NPC insisted that if any amount should be paid to the landowners, it should only
be an easement fee of 10% the value of the property, not the full value, since it acquired only a simple right-
of-way easement for the passage of its overhead transmission lines. It pointed out that its charter
authorizes the acquisition only of a right-of-way easement for its transmission lines and the payment of an
easement fee. Is the contention correct?

No. The determination of just compensation is a judicial function. No statute, decree, or executive order can
mandate that its own determination shall prevail over the court’s findings.

In National Power Corporation v. Manubay Agro-Industrial Development Corporation, G.R. No. 150936, August
18, 2004, 437 SCRA 60, it was said that granting arguendo that what petitioner acquired over respondent’s
property was purely an easement of a right of way, still, the Court cannot sustain its view that it should pay
only an easement fee, and not the full value of the property. The acquisition of such an easement falls within
the purview of the power of eminent domain. (Republic v. PLDT, 136 Phil. 20 (1969)).

True, an easement of a right of way transmits no rights except the easement itself, and owner retains full
ownership of the property. The acquisition of such easement is, nevertheless, not gratis. Considering the
nature and the effect of the installation of power lines, the limitations on the use of the land for an indefinite
period would deprive owner of normal use of the property. For this reason, the latter is entitled to payment of
just compensation which must be neither more nor less than the monetary equivalent of the land. (NPC v. Dr.
Antero Bongbong, et al., G.R. No. 164079, April 3, 2007).

Just compensation is the fair value of the property as between one who receives, and one who desires to
sell, fixed at the time of the actual taking by the government. This rule holds true when the property is taken
before the filing of an expropriation suit, and even if it is the property owner who brings the action for
compensation. The nature and character of the land at the time of its taking is the principal criterion for
determining how much just compensation should be given to the landowner. In determining just
compensation, all the facts as to the condition of the property and its surroundings, its improvements and
capabilities, should be considered. (EPZA v. Dulay, G.R. No. 59603, April 29, 1987, 149 SCRA 305; NPC v. Dr.
Antero Bongbong, et al., G.R. No. 164079, April 3, 2007).

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