RP (Napocor) V Heirs of Borbon 2015

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Republic of the Philippines vs.

Heirs of Saturnino Borbon


G.R. No. 165354, BERSAMIN, 12 Jan 2015

The right of eminent domain is not unlimited, and two mandatory requirements
should underlie the government's exercise of the power of eminent domain:
(1) it is for a particular public purpose; and
(2) that just compensation be paid to the property owner.
Furthermore, the public use has evolved to include utility, advantage, or
productivity for the benefit of the public, and the expropriating agency must
commit to use the property pursuant to the purpose stated in the petition for
expropriation.

Facts:
The National Power Corporation (NAPOCOR) entered a property in Batangas City
in order to construct and maintain transmission lines for a power transmission
project. The property was owned by the heirs of Saturnino Q. Borbon. NAPOCOR
filed a complaint for expropriation in the Regional Trial Court (RTC) seeking the
acquisition of an easement of right of way over a portion of the property. The
respondents objected to the entry of NAPOCOR and claimed that their property
was already classified as industrial land. The RTC constituted a panel of three
commissioners to determine the just compensation to be paid to the respondents.
The two commissioners submitted a joint report recommending the payment of
P550.00/square meter for the whole lot. The third commissioner submitted a
separate report recommending the payment of an easement fee plus damages. The
RTC adopted the joint report and ordered NAPOCOR to pay just compensation for
the whole area of the property. NAPOCOR appealed to the Court of Appeals (CA),
which affirmed the decision of the RTC.

Issue:
Whether or not the expropriation proceedings should be discontinued or dismissed
pending appeal.

Ruling:
Yes. The dismissal of the proceedings for expropriation at the instance of
NAPOCOR is proper, but the dismissal or discontinuance of the proceedings must
be upon such terms as the court deems just and equitable. The Court grants the
motion to discontinue the proceedings subject to the conditions that NAPOCOR
compensates the respondents for the disturbance of their property rights from the
time of entry until the time of restoration of possession by paying actual or other
compensatory damages. The case is remanded to the trial court for further
proceedings to determine the extent of the taking, the value of the compensation to
be paid, and other relevant matters.

Ratio:
The right of eminent domain is not unlimited and should be exercised for a
particular public purpose and with the payment of just compensation to the
property owner. Public use includes utility, advantage, or productivity for the
benefit of the public. The expropriation proceedings should be discontinued if the
public purpose for the expropriation no longer exists. The dismissal or
discontinuance of the proceedings must be upon such terms as the court deems just
and equitable. The expropriator is obliged to pay reasonable compensation to the
landowner for the period of possession even if the proceedings are discontinued.
The compensation should be based on what the landowner actually lost as a result
of the dispossession of the property and its use. The case is remanded to the trial
court for further proceedings to determine the compensation to be paid to the
respondents.

If the particular purpose or intent is not initiated or pursued, and is peremptorily


abandoned, the former owners may seek the reversion of the property, subject to
the return of the amount of just compensation received.

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