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Slc-Law: Obligations and Contracts
Slc-Law: Obligations and Contracts
G.R. No. 186069, January 30, 2013 Court’s 18 January 1991 Decision in G.R. No. 60077,
SPOUSES JESUS L. CABAHUG AND CORONACION M. entitled National Power Corporation v. Spouses
CABAHUG, PETITIONERS, Misericordia Gutierrez and Ricardo
vs.
NATIONAL POWER CORPORATION, RESPONDENT.
On 9 November 1996, Jesus Cabahug executed two 1. To pay [the Spouses Cabahug] the sum of ONE MILLION
documents denominated as Right of Way Grant in favor of THREE HUNDRED THIRTY SIX THOUSAND and FIVE PESOS
NPC. For and in consideration of the easement fees in the (P1,336,005.00) together with the legal rate of interest
sums of P112,225.50 and P21,375.00, Jesus Cabahug thereon per annum reckoned from January 3, 1997 less
granted NPC a continuous easement of right of way for the the amount previously paid by [NPC] to [the Spouses
latter’s transmissions lines and their appurtenances over Cabahug] for easement fee only;
24,939 and 4,750 square meters of the parcels of land
covered by TCT Nos. T-9813 and T-1599, respectively. By 2. To pay [the Spouses Cabahug] the sum equivalent to
said grant, Jesus Cabahug agreed not to construct any FIVE (5%) PERCENT of the amount mentioned in the next
building or structure whatsoever, nor plant in any area preceding paragraph for attorney’s fees; and
within the Right of Way that will adversely affect or
obstruct the transmission line of NPC, except agricultural 3. To pay [the Spouses Cabahug] the sum of TWENTY
crops, the growth of which will not exceed three meters THOUSAND (P20,000.00) PESOS for actual damages and
high. Under paragraph 4 of the grant, however, Jesus litigation expenses plus costs of the proceedings.
Cabahug reserved the option to seek additional
compensation for easement fee, based on the Supreme SO ORDERED.[11]
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OBLIGATIONS AND CONTRACTS SLC-LAW
way of additional easement fee and/or just compensation
Aggrieved by the foregoing decision, the NPC perfected is violative of said contract and tantamount to unjust
the appeal which was docketed as CA-G.R. CV No. 67331 enrichment at the expense of NPC. As correctly pointed
before the CA which, on 16 May 2007, rendered the herein out by the Spouses Cabahug, however, the CA’s ruling
assailed decision, reversing and setting aside the RTC’s totally disregards the fourth paragraph of the Grant
executed by Jesus Cabahug which expressly states as
follows:
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OBLIGATIONS AND CONTRACTS SLC-LAW
the Grant of Right of Way, the application of Gutierrez to already paid the sums of P112,225.50 and P21,375.00 as
this case is not improper as NPC represents it to be. Where easement fee, the sum of P133,600.50 should be deducted
the right of way easement, as in this case, similarly from P1,336,005.00 for a remaining balance of
involves transmission lines which not only endangers life P1,202,404.50. To this latter sum, the RTC also correctly
and limb but restricts as well the owner's use of the land imposed legal interest since the Spouses Cabahug, as
traversed thereby, the ruling in Gutierrez remains doctrinal landowners, are entitled to the payment of legal interest
and should be applied.[25] It has been ruled that the owner on
should be compensated for the monetary equivalent of
the land if, as here, the easement is intended to
perpetually or indefinitely deprive the owner of his
proprietary rights through the imposition of conditions the compensation for the subject lands from the time of
that affect the ordinary use, free enjoyment and disposal the taking of their possession up to the time that full
of the property or through restrictions and limitations that payment is made by petitioner. In accordance with
are inconsistent with the exercise of the attributes of jurisprudence, the legal interest allowed in payment of just
ownership, or when compensation for lands expropriated for public use is six
percent (6%) per annum.[32]
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