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104. Republic v. Kabacan, Inc. et. al., G.R. No.

185124, January 25, 2012

FACTS:

The National Irrigation Administration (NIA) filed with the RTC a complaint for
expropriation of land. RTC adopted the findings of the committee despite the objections
of NIA to the inclusion of the value of the excavated soil in the computation of the value
of the land. The RTC ruled for expropriation. The Court of Appeals affirmed the trial
court’s decision with modification.

National Irrigation Authority (NIA), a government-owned-and-controlled corporation,


needed some parcels of land for the purpose of constructing the Malitubog-Marigadao
Irrigation Project. On 08 September 1994, it filed with the RTC of Kabacan, Cotabato a
Complaint for the expropriation of a portion of three parcels of land. NIA filed an
Amended Complaint and prayed that it be authorized to take immediate possession of
the properties after depositing with the Philippine National Bank the expropriation
money representing the provisional value thereof.

Respondents argued that NIA had no authority to expropriate portions of their land,
because it was not a sovereign political entity; that it was not necessary to expropriate
their properties; that NIAs valuation of their expropriated properties was inaccurate; and
that NIA never negotiated with the landowners before taking their properties for the
project, causing permanent and irreparable damages to their properties.

ISSUE:

Whether or not the CA erred in affirming the RTC's finding of just compensation of the
land and the improvements thereon based on the report of the commissioners.

RULING:

No. The commissioners properly determined the just compensation to be awarded to


the landowners whose properties were expropriated by petitioner. The records show
that the trial court dutifully followed the procedure under Rule 67 of the 1997 Rules of
Civil Procedure when it formed a committee that was tasked to determine the just
compensation for the expropriated properties. In the instant case, the committee
members based their recommendations on reliable data and considered various factors
that affected the value of the land and the improvements.

The Court also upheld the CA ruling, which deleted the inclusion of the value of the
excavated soil in the payment for just compensation. There is no legal basis to separate
the value of the excavated soil from that of the expropriated properties, contrary to what
the trial court did.
In the context of expropriation proceedings, the soil has no value separate from that of
the expropriated land. Just compensation ordinarily refers to the value of the land to
compensate for what the owner actually loses. Such value could only be that which
prevailed at the time of the taking.

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