SECOND DIVISION
G.R. No. 240957. February 14, 2022
REPUBLIC OF THE PHILIPPINES, REPRESENTED BY THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS (DPWH), Petitioner, v. ALATHEA H. SINENSE, FLORENTINO DIANA, PACIFIC REHOUSE CORPORATION AND PHILIPPINE ESTATES CORPORATION, Respondents.
D E C I S I O N
INTING, J.:
Before the Court is a Petition for Review on Certiorari1 under Rule 45 of the Rules of Court which seeks to reverse and set aside the Decision2 dated December 18, 2017 of the Court of Appeals (CA) in CA-G.R. CEB CV No. 05070. The CA affirmed with modification the Decision3 dated November 13, 2012 and the Order4 dated May 22, 2013 of Branch 24, Regional Trial Court (RTC), Iloilo City in Civil Case No. 06-29100 in that the CA imposed interest at the rate of 12% per annum on the amount of just compensation from the time of taking of the subject properties until June 30,5 2013 and thereafter, the legal interest at the rate of 6% per annum from July 1, 2013 until full payment. Also assailed is the CA Resolution6 dated July 23, 2018 denying the parties' respective motions for reconsideration.
The Republic initiated the complaint for expropriation because the affected areas (subject properties) would be traversed by the construction of the Iloilo Flood Control Project II (Project). Specifically, the Project covered the establishment of the Jaro Floodway that aimed to address the serious flooding in Iloilo City, create a more suitable urban community, and provide a safer and more pleasant living condition for the people concerned.11chanRoblesvirtualLawlibrary
REGISTERED OWNER LOT NO. TCT NO. TOTAL LAND AREA (sq.m.) AFFECTED AREA (in sq.m.)Pacific Rehouse Corp. 2376-B-4 T-121299 10,000 9,848Alathea H. Sinense 2376-B-3-A T-124388 4,400 2,715Pacific Rehouse Corp. 2376-B-5 T-121300 10,000 7,965Pacific Rehouse Corp. 2376-B-6 T-121301 9,999 5,574Pacific Rehouse Corp. Block 21 (Cons. of Lot 2378) T-141525 16,664 7,927Florentino Diana 2379-B T-18737 5,254 3,653Pacific Rehouse Corp. Block 19 (Excluded Area) Portion of the Cons. of Lot 2378) T-141526 10,375 9,283Philippine Estates Corp. Road Lot 1 Portion of the Cons. of Lot 2378 T-141505 5,407 2,853Pacific Rehouse Corp. Block 20 (Excluded Area) Portion of the Cons. of Lot 2378 T-141523 14,241 13,925Pacific Rehouse Corp. 2350 T-134216 25,245 19,786Pacific Rehouse Corp. 2208-A T-132335 8,282 1,39610
x x x In several interviews conducted, the commission found out that the commercial lots in a nearby subdivision, Metropolis, has a price pegged at Php5,600.00 per square meter. The lots along the Jaro-Leganes Highway cost Php8,000.00 per square meter. Further interviews conducted with several realty brokers/agents would reveal that the price of the lots at Smallville, along B. Aquino Ave[n]ue, Mandurriao, Iloilo City, is Php20,000.00 per square meter and its fishpond areas (undeveloped) has a selling price of Php8,000.00. With this information, the commission deems it best to reduce the [claim] of the defendants x x x and adopt the selling price of Metropolis in the amount of Php5,600.00. Considering that the selling price per square of the lots of Chateaux Geneva is Php4,500.00 as supported by the documents of sale between the defendants and their lot-buyers, the commission grants the same to defendants.27chanRoblesvirtualLawlibraryThird, the subject properties were very accessible and situated in between two major highways – the Jaro-Leganes Highway and the Coastal Road. Public transportation regularly plied in the area and was available on a 24-hour basis. The properties were also near religious, educational, and commercial centers; their physical and technical description proved that the highest and best uses of the properties were residential and commercial. The topography of the properties further showed that they were within an accessible distance from commercial, trading, educational, medical center, and other city services.28chanRoblesvirtualLawlibrary
The Republic objected to the amount of just compensation. It maintained that the BIR zonal value of P1,800.00 per square meter was the true and correct compensation for the subject properties.31chanRoblesvirtualLawlibrary
Area (sq.m) Value/sq.m AmountDinagyang Plaza & Commercial (Phase 6) 3,278 Php 5,600.00 Php 18,356,800.00Central Commercial Development (Phase 9-A) 7,597 Php 5,600.00 Php 42,453,976.00High-end Residential (Phase 10) 408 Php 5,600.00 Php 2,284,800.00Chateaux Geneva (affected) 12,321 Php 4,500.00 Php 55,444,500.00Chateaux Geneva (traversed) 7,566 Php 4,500.00 Php 34,047,000.00Total 31,170 Php 152,676,300.0030
Wherefore, above premises considered, the court accepts the Commissioner[s]' Report and Judgment is hereby rendered in accordance therewith directing the plaintiff Republic of the Philippines to pay the amount of PHP 1,920,374,373.00 as just compensation to defendants Pacific Rehouse Corp. and Philippine Estate Corp[.]The RTC noted that: (1) the subject properties formed part of the Jaro Grand Estates, a 100-hectare township community with business facilities and amenities; (2) two high-end subdivisions, namely, Chateaux Geneva and Costa Villas, were already existing alongside several other improvements in the affected areas; and (3) the Project would cut the Jaro Grand Estates project into two parts. The RTC also pointed out that it adopted the recommendation of the BOC as it was anchored on the testimonies of experts in the realty business. The pertinent portions of the RTC decision state:
SO ORDERED.36chanRoblesvirtualLawlibrary
By its vicinity plan[,] the floodway route appears to be a simple task to execute. But to be noted, it cut through the Jaro-Leganes Highway, a road from the Municipality of Leganes towards Jaro District. It hit the main entrance of Chateau Geneva, a high-end residential subdivision being managed by the defendants going inward to an adjacent residential subdivision named Costa Villa, likewise manages by the defendants. The Report states that there were houses constructed thereon and defendants['] record show they have already many lot buyers.On May 22, 2013, the RTC denied38 the motions for reconsideration but, nevertheless, modified the Decision of November 13, 2012 by deleting therefrom the payment of value-added tax.
To the plain view of the plaintiff[,] the subdivision may appear cogonal and [with] bushes, yet it did take into consideration that the land[s] were already plotted into parcels of land for residential purposes, adding therein the street drainage and electrical plans of the subdivision. Defendants clai[m] that these two subdivision[s] are part of Jaro Grand Estates with an area of 100 hectares with a planned development into a township community, complete with business facilities and amenities.
x x x x
Chateau Geneva, Costa Villas and all its main amenities are among the 15 or more residential subdivisions existing along the Jaro-Leganes Highway[. It] was properly planned way back beginning 1996 x x x. This land area of the defendant[s] to be traversed by the floodway canal is merely a part of the intended Jaro Grand Estate. x x x
x x x x
The facts obtaining on this case is that there is an established residential subdivision, a part of the consolidated plan to create a township community, finally created with parcilliary plots, a drainage system, a well secured and fenced subdivision.
x x x x
The Commissioner's Report is founded on the bases of so many testimonies of experts on the field of realty business, hence the court finds no cogent reason to set aside the same and deems to render judgment in accordance therewith (Sec.8[,] Rule 67) but except those conditions and demands x x x that do not pertain to valuation within the purview of this expropriation case[.]37chanRoblesvirtualLawlibrary
Issue
Whether or not the Court of Appeals erred when it pegged the following amounts: (i) SEVEN HUNDRED NINETY-ONE MILLION SIX HUNDRED EIGHTY-NINE THOUSAND NINE HUNDRED FORTY-SEVEN PESOS (PhP791,689,947.00) as just compensation for the 99,866 square meters of land, and (ii) ONE BILLION ONE HUNDRED TWENTY-EIGHT MILLION SIX HUNDRED EIGHTY-FOUR THOUSAND FOUR HUNDRED TWENTY-SIX PESOS (PhP1,128,684,426.00) as just compensation for the purported improvements thereon, opportunity losses, value added tax (VAT) and other consequential damages, or a total amount of ONE BILLION NINE HUNDRED TWENTY MILLION THREE HUNDRED SEVENTY-FOUR THOUSAND THREE HUNDRED SEVENTY-THREE PESOS (PhP1,920,374,373.00), to be paid to the respondents.45chanRoblesvirtualLawlibrary
Section 5. Standards for the Assessment of the Value of the Land Subject of Expropriation Proceedings or Negotiated Sale. — In order to facilitate the determination of just compensation, the court may consider, among other well-established factors, the following relevant standards:That the BOC's recommended just compensation is in accord with the foregoing criteria is shown by the fact that it took into account the value of similar properties as well as the use, location and even the accessibility of the subject properties. On this, the Court quotes with approval the following observations of the CA:
chanroblesvirtuallawlibrary(a) The classification and use for which the property is suited;cralawlawlibrary
(b) The developmental costs for improving the land;cralawlawlibrary
(c) The value declared by the owners;cralawlawlibrary
(d) The current selling price of similar lands in the vicinity;cralawlawlibrary
(e) The reasonable disturbance compensation for the removal and/or demolition of certain improvement on the land and for the value of improvements thereon;cralawlawlibrary
(f) [The] size, shape or location, tax declaration and zonal valuation of the land;cralawlawlibrary
(g) The price of the land as manifested in the ocular findings, oral as well as documentary evidence presented; and
(h) Such facts and events as to enable the affected property owners to have sufficient funds to acquire similarly-situated lands of approximate areas as those required from them by the government, and thereby rehabilitate themselves as early as possible.
[The Board of Commissioners] conducted several hearings, heard the testimonies of the parties' respective witnesses, examined supporting documents, and conducted an ocular inspection on the subject properties. The Board of Commissioners took note of the fact that the properties are presently used for residential purposes and are intended to be used for commercial and industrial purposes following defendants-appellants' plans to turn the place into a township community, which would include residential subdivisions, retail and commercial areas, a cyberpark and central business district, hotel developments, sports and recreational facilities and amenities. Also, they took into account the value of similar properties within the vicinity, which properties were also used for residential and commercial purposes. They found out that the area where the subject properties is located is teeming with residential and commercial developments. Likewise, the Board of Commissioners considered the size and location of the proposed floodway project of the government and its adverse effects on defendants-appellants' properties and its improvements.52chanRoblesvirtualLawlibraryIt cannot, thus, be denied that the adoption by the RTC and the CA of the BOC's recommendation was not arbitrary but is supported by evidence and upon consideration of relevant factors for the determination of just compensation. It also bears stressing that the BOC exerted serious efforts in ascertaining the just compensation because it did not only conduct ocular inspection, it interviewed numerous experts in the realty business and took extra efforts as it even issued a revised Report to fully and comprehensively justify the just compensation for the subject properties.
Endnotes:
1 Rollo, pp. 12-69.
2 Id. at 75-92; penned by Associate Justice Louis P. Acosta with Associate Justices Marilyn B. Lagura-Yap and Edward B. Contreras, concurring.
3 Id. at 574-625; penned by Judge Danilo P. Galvez.
4 Id. at 666-670.
5 Id. at 94.
6 Id. at 93-95.
7 Id. at 952.
8 As culled from the Comment of Pacific Rehouse Corporation and Philippine Estates Corporation, id.
9 Id. at 98-99 and 464.
10 As culled from the original complaint for expropriation dated November 7, 2006, id. at 98-99.
11 Id. at 15 and 98.
12 Id. at 105-107.
13 Id. at 105.
14 Id. at 109 and 156-158.
15 Id. at 362.
16 Id. at 121.
17 Id. at 120-163.
18 There has been a discrepancy on the amount of just compensation provided in the Commissioners' Report (P1,920,374,374.00) and the fallo of the Decision dated November 13, 2012 of Branch 24, Regional Trial Court (RTC), Iloilo City (P1,920,374,373.00).
19 Id. at 155.
20 Id. at 164-171.
21 Id. at 577.
22 Id. at 363.
23 Id. at 361-400.
24 Id. at 370.
25 Entitled, "An Act to Facilitate the Acquisition of Right-of-Way, Site or Location for National Government Infrastructure Projects and for other Purposes," approved on November 7, 2000.
26 Rollo, p. 371.
27 Id. at 383.
28 Id. at 373.
29 Id. at 384 and 387-388.
30 Id. at 387.
31 Id. at 77.
32 Id. at 574.
33 Id. at 77.
34 Id. at 575.
35 Id. at 574-625.
36 Id. at 625.
37 Id. at 621-625.
38 See Order dated May 22, 2013 of Branch 24, RTC, Iloilo City, id. at 666-670.
39 Id. at 75-92.
40 Id. at 82-83.
41 Id. at 83 and 86.
42 Id. at 88.
43 Id. at 91.
44 Id. at 93-95.
45 Id. at 31.
46 Id. at 31-32 and 40-41.
47 Republic v. Heirs of Sps. Pedro Bautista and Valentina Malabanan, 702 Phil. 284, 298 (2013).
48 See Republic v. Estate of Posadas III, G.R. No. 214310, February 24, 2020.
49 Id., citing National Transmission Corporation v. Oroville Development Corporation, 815 Phil. 91, 105 (2017).
50 Republic v. Spouses Silvestre, G.R. No. 237324, February 6, 2019.
51 Id.
52 Rollo, p. 82.
53 Republic v. Spouses Silvestre, supra note 50, citing Evergreen Manufacturing Corporation v. Republic, 817 Phil. 1048 (2017).
54 Republic v. Heirs of Francisco, G.R. No. 244115, February 3, 2021.
55 Id., citing Republic v. Judge Mupas, 769 Phil. 21, 197 (2015).
56 Id.cralawredlibrary