Case Digest: NATIONAL POWER CORPORATION v . HON. SYLVA G. AGUIRRE PADERANGA, et al. 464 SCRA 481 (2005)

NATIONAL POWER CORPORATION v . HON. SYLVA G. AGUIRRE PADERANGA, et al. 464 SCRA 481 (2005)

National Power Corporation (NPC) filed a case for expropriation against Petrona O. Dilao, et al. before Regional Trial Court of Cebu, involving parcels of land located in Cebu. Expropriation was instituted to implement Leyte-Cebu Interconnection Project. A day after the complaint was filed, NPC filed an urgent ex parte motion for the issuance of writ of possession of the lands. The RTC issued an order granting NPC‘s motion. It appointed 3 Board of Commissioners to determine just compensation. The board recommended appraisal of parcel of land co-owned by Dilao, et al. at P516.66 per square meter. However, NPC filed an opposition assailing the correctness of the appraisal for failing to take into account Republic Act No. 6395 which provides that the just compensation for right-of-way easement shall be equivalent to ten percent (10%) of the market value of the property. NPC asserted that Digao, et al. could still use the traversed land for agricultural purposes, subject only to its easement. It added that the lots were of no use to its operations except for its transmission lines. The RTC rendered its decision ordering NPC to pay fair market value at P516.66 per square meter. NPC appealed but the same was denied due to failure to file and perfect its appeal within the prescribed period. A motion for execution of judgment was subsequently filed by Dilao, et al. which was granted by the lower court. On appeal, the CA affirmed the lower court‘s decision. Hence, this petition.

ISSUE:

Whether or not RTC abused its authority by misapplying the rules governing fair valuation

HELD:

In finding that the trial court did not abuse its authority in evaluating the evidence and the reports placed before it nor did it misapply the rules governing fair valuation, the Court of Appeals found the majority report‘s valuation of P500 per square meter to be fair. Said factual finding of the Court of Appeals, absent any showing that the valuation is exorbitant or otherwise unjustified, is binding on the parties as well as this Court. Indeed, expropriation is not limited to the acquisition of real property with a corresponding transfer of title or possession. The right-of-way easement resulting in a restriction or limitation on property rights over the land traversed by transmission lines, as in the present case, also falls within the ambit of the term ―expropriation. From the Commissioner‘s report it cannot be gainsaid that NPC‘s complaint merely involves a simple case of mere passage of transmission lines over Dilao et al.‘s property. Aside from the actual damage done to the property traversed by the transmission lines, the agricultural and economic activity normally undertaken on the entire property is unquestionably restricted and perpetually hampered as the environment is made dangerous to the occupant‘s life and limb. The determination of just compensation in expropriation proceedings being a judicial function, the Court finds the commissioners‘ recommendation of P516.66 per square meter, which was approved by the trial court, to be just and reasonable compensation for the expropriated property of Dilao and her siblings.