NATIONAL POWER CORPORATION VS SOCORRO POSADA, et al. GR NO. 191945 March 11, 2015 Doctrine: Power of Eminent Domain FACTS:
NAPOCOR instituted expropriation proceedings over parcels of land in Brgy. Maginhawa, Bato, Catanduanes for a right-of-way easement, construction and maintenance of its Substation Substation Island Grid Project. NAPOCOR offered a price of P500.00 per square meter. However, respondents (property owners) objected and alleged that the value of properties was P2000.00 per square meter. On Dec. Dec. 16, 2002 RTC of Virac, Catanduanes confirmed the NAPOCOR’s right to expropriate and ordered the creation of a commission to determine the amount of just compensation to be paid to respondents. On Jan. 28, 2003 NAPOCOR filed a Notice to Take Possession on the basis of Rule 67 Rules of Court alleging its entitlement thereof in view of its deposit with Land Bank of the Philippines in the amount of P 3280.00 on the provisional p rovisional value of the properties. On July 10, 2003 the court co urt appointed commissioners recommended a fair market value of P1500.00 per square meter based on their research and proper considerations on the present market value of properties, location, and surrounding properties in the area. NAPOCOR opposed the recommendation of the commissioners arguing, inter alia, that: a) the opinions given by people who live in the area must not be given weight due to their lack of real estate expertise; b) The Provincial Appraisal Committee valued said lot at P500.00 per square meter; c) The approved zonal values of real properties in Catanduanes classified as Residential Regular (RR) is P105.00 per square meter. d) Only an easement of right-of-way shall be acquired over the properties of the defendants which remain classified as cocoland and as provided in RA 6395 (NPC Charter), shall not exceed 10% of the market value declared by the owner or administrator or anyone having legal interest in the property, or as determined by the assessor, whichever is lower. NAPOCOR amended its complaint stating that it need the properties to construct the Substation Island Grid Project instead of just an easement of right of way and made a deposit with Land Bank in the amount of P580, 769.93 alleging that this represented the value of 3,954 square meters sought to be expropriated. NAPOCOR then filed an Urgent Ex Parte Motion for the issuance of a Writ of Possession which was granted by the RTC. Upon the granted motion of time extension to remove the properties of the respondents, the trial court fixed the value of the structures and improvements on the land to P827, 000.00 and ordered
NAPOCOR to deposit the additional amount of P262, 639.17 which it failed to deposit to which the trial court resolves by CANCELING the Writ of Possession. The appeal made by NAPOCOR was denied by the CA. In a turn of events, NAPOCOR stated that it no longer needed the properties as it was set to acquire an alternative site and filed a Motion to Withdraw Appeal praying for withdrawal of its appeal for its Amended Complaint to be dismissed.
ISSUES:
Whether or not the trial court erred: 1. On relying on the commissioners on the valuation of improvements and/or structures; structures; and 2. In recalling the the Writ of Possession HELD:
SC held that the trial court committed two errors. 1. First, it should have based the value of the improvements on the p roperty on the determination made by NAPOCOR and not its commissioners as required by Section 7 and 10 of RA 8974: Section 7 Valuation of Improvements and/or Structures.--The Department of Public Works and Highways and othr implementing agencies concerned, in coordination with the local government units concerned in the acquisition of right-of-way, site or location for any national government infrastructure project, are herby mandated to adopt within sixty (60) days upon approval of this Act, the necessary implementing rules and regulations for the equitable valuation of the improvements and/or structures on the land to be expropriated. Section 10 Pursuant to Section 7 of the Act, the Implementing agency shall determine the valuation of the improvements and/or structures on the land land to be acquired using using the replacement cost method. xxx
According to the law, it is the implementing agency, not the commissioners, that determines the proffered value of improvements and structures. A Writ of Possession may be issued once there is confirmation by the trial court of the proffered value. 2. The second error of the trial court occurred when it issued a Writ of Possession on the basis of NAPOCOR’s deposit of the alleged al leged provisional value with Land Bank, not on its actual payment to respondents. Even if the deposit of P580, 769.93 was the correct provisional provisional value, it cannot be considered as compliance with Section 4 of RA 8974 which plainly requires direct payment to the property owner, not a mere deposit with the authorized government depositary. Without such direct payment, no writ of possession may be obtained, which, NAPOCOR failed to do. WHEREFORE, the Motion to Withdraw Appeal dated August 28, 2014 is GRANTED insofar as it withdraws the Petition for Review Review dated June 4, 2010. The Motion for Leave to File Comment (to Petitioner’s Motion to Withdraw Appeal) dated September 30, 2014 is NOTED. This case is REMANDED to the RTC of Virac, Catanduanes for appropriate action.
