Napocor Vs Ileto

G.R. No.
169957
July 11, 2012
NATIONAL POWER CORPORATION, Petitioner,

vs.
SPS. FLORIMON V. ILETO et. al.
BRION, J.:
FACTS:
The National Power Corporation (NPC) filed a complaint seeking to expropriate certain
parcels of land in Bulacan, in connection with its Northwestern Luzon Transmission Line
project. Specifically, the NPC sought to expropriate the land of respondents and the estate
of Sofia Mangahas.
To determine the issue of just compensation, the RTC constituted a team of commissioners,
composed of the following: Atty. Luis Manuel Bugayong, representing the NPC; Barangay
Captain Manuel Villacorta, representing the defendants; and Branch Clerk of Court Ariston
Tayag, acting as the Chairperson.
The Heirs of Sofia Mangahas and the NPC filed with the RTC a jointly executed
compromise agreement where they agreed that NPC would acquire 13,855 square meters
of the 95,445 square meter property owned by the Heirs of Sofia Mangahas. In turn, the
NPC would pay the Heirs of Sofia Mangahas the total amount of P3,463,750.00 as just
compensation for the property, with an assessed value of P250.00 per square meter. The
RTC found the compromise agreement to be proper, and rendered a partial decision
approving it.
As for the other owners, since Commissioner Bugayong, representing the NPC, could not
agree with the other commissioners on the manner of valuation, he chose to submit a
separate report.
In turn, Commissioner Tayag and Commissioner Villacorta submitted their report,
recommending that the just compensation for all the affected lands be pegged at P250.00
per square meter. The report took into account another commissioners report in a different
expropriation case filed by the NPC that was pending before Branch 10 of the same
court, which fixed the just compensation per square meter of agricultural lands at P265.00,
residential land at P1,540.00, and commercial land at P2,300.00. In the end, however, the
commissioners were greatly persuaded by the value fixed in the compromise
agreement between NPC and the Heirs of Sofia Mangahas.
The commissioners report was set for hearing where the Sps. Florimon V. Ileto and
Rowena Nolasco, the Sps. Valero and the Brillos manifested their consent to the
recommended price of P250.00 per square meter. Consequently, the RTC approved the
report submitted by Commissioner Tayag and Commissioner Villacorta, and rendered a
decision.
The NPC opposed to the valuation of the RTC based from the recommendations of the
commissioners.
ISSUES: Whether or Not the Commissioners and the RTCs way of determining the
value of just compensation is proper in this case.
HELD: NO
We cannot affirm the RTCs decision in fixing just compensation of all the subject properties
at P250.00 per square meter, for lack of legal or factual basis.
In eminent domain or expropriation proceedings, the just compensation to which the owner
of a condemned property is entitled is generally the market value. Market value is "that sum
of money which a person desirous but not compelled to buy, and an owner willing but not
compelled to sell, would agree on as a price to be given and received therefor." [The market
value] is not limited to the assessed value of the property or to the schedule of market
values determined by the provincial or city appraisal committee. However, these values may
serve as factors to be considered in the judicial valuation of the property.
To determine the just compensation to be paid to the landowner, the nature and character of
the land at the time of its taking is the principal criterion.
In the present case, the RTC made a determination that all the properties subject of the
NPCs expropriation complaint, regardless of their location or classification, should be
valued at P250.00 per square meter. In arriving at this valuation, the RTC explained, thus:
In order to determine the issue of just compensation, the Court constituted a team of three
commissioners chaired by Atty. Aristan Tayag with Atty. Luis Manuel Bugayong as
representative of the plaintiff and Barangay Captain Manuel Villacorta as representative of
the landowners.
Eventually, the team of commissioners submitted its report adopting the recommendation of
just compensation in a similar case for eminent domain of the Regional Trial Court of
Bulacan wherein it set the just compensation for agricultural land at P265.00 per square
meter, residential land at P1,540.00 per square meter, and commercial land at P2,300.00
per square meter. However, considering that a partial decision was already rendered
wherein the lands affected were valued at P250.00 per square meter, the team
recommended the latter amount for the remaining properties subject of expropriation.
It is apparent from this RTC explanation that Commissioner Tayag and Commissioner
Villacorta based their recommendation for just compensation of all the properties in
question solely on the value fixed in the compromise agreement between the NPC and the
Heirs of Sofia Mangahas. But in accepting this recommendation, the RTC failed to take
into consideration the fact that the property subject of the compromise agreement is
located in Tigbe, Norzagaray, Bulacan, while the other properties subject of the
RTCs decision are located in other municipalities in Bulacan.
Even worse, the commissioners recommended valuation is not supported by any

corroborative evidence, such as sworn declarations of realtors in the area concerned and
tax declarations or zonal valuation from the Bureau of Internal Revenue. It does not even
appear from the records that the commissioners conducted any ocular inspections to
determine the location, nature, character, condition, and other specific features of the
expropriated lands that should have been taken into account before making their
recommendation.
Although the determination of just compensation lies within the trial courts discretion, it
should not be done arbitrarily or capriciously. The decision of the trial court must be based
on all established rules, correct legal principles, and competent evidence. The courts are
proscribed from basing their judgments on speculations and surmises.

Napocor Vs Ileto

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G.R. No.

July 11, 2012

NATIONAL POWER CORPORATION, Petitioner,

Even worse, the commissioners recommended valuation is not supported by any

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