RP v. Borbon

G.R. No. 165354. January 12, 2015.
* REPUBLIC OF THE PHILIPPINES, represented by the NATIONAL

POWER CORPORATION, petitioner, vs. HEIRS OF SATURNINO Q. BORBON, and COURT OF APPEALS,
respondents.
FACTS: In February 1993, NAPOCOR entered a property located in Barangay San Isidro,
Batangas City in order to construct and maintain transmission lines for the 230 KV Mahabang Parang-
Pinamucan Power Transmission Project. Respondents heirs of Saturnino Q. Borbon owned the property,
with a total area of 14,257 square meters. On May 26, 1995, NAPOCOR filed a complaint for
expropriation in the Regional Trial Court in Batangas City seeking the acquisition of an easement of right
of way over a portion of the property involving an area of only 6,326 square meters, more or less,
alleging that it had negotiated with the respondents for the acquisition of the easement but they had
failed to reach any agreement; and that, nonetheless, it was willing to deposit the amount of P9,790.00
representing the assessed value of the portion sought to be expropriated. It prayed for the issuance of a
writ of possession upon deposit to enable it to enter and take possession and control of the affected
portion of the property; to demolish all improvements existing thereon; and to commence construction
of the transmission line project. It likewise prayed for the appointment of three commissioners to
determine the just compensation to be paid.
The respondents maintained that NAPOCOR had not negotiated with them before
entering the property and that the entry was done without their consent in the process, destroying
some fruit trees without payment, and installing five transmission line posts and five woodpoles for its
project;9 that the area being expropriated only covered the portion directly affected by the transmission
lines; that the remaining portion of the property was also affected because the transmission line passed
through the center of the land, thereby dividing the land into three lots; that the presence of the high
tension transmission line had rendered the entire property inutile for any future use and capabilities;10
that, nonetheless, they tendered no objection to NAPOCOR’s entry provided it would pay just
compensation not only for the portion sought to be expropriated but for the entire property whose
potential was greatly diminished, if not totally lost, due to the project; and that their property was
classified as industrial land. Thus, they sought the dismissal of the complaint, the payment of just
compensation of P1,000.00/square meter, and attorney’s fees; and to be allowed to nominate their
representative to the panel of commissioners to be appointed by the trial court.
The RTC constituted the panel of three commissioners. Two commissioners submitted a
joint report in which they found that the property was classified as industrial land located within the
Industrial 2 Zone. The two commissioners appraised the value at P550.00/square meter.19 However,
the third commissioner filed a separate report dated March 16, 1999,20 whereby he recommended the
payment of “an easement fee of at least ten percent (10%) of the assessed value indicated in the tax
declaration plus cost of damages in the course of the construction, improvements affected and tower
occupancy fee.” The parties then submitted their respective objections to the reports. The respondents
maintained that NAPOCOR should compensate them for the entire property at the rate of
P550.00/square meter because the property was already classified as industrial land at the time
NAPOCOR entered it. NAPOCOR objected to the joint report, insisting that the property was classified as
agricultural land at the time of its taking in March 1993; and clarifying that it was only seeking an
easement of right of way over a portion of the property, not the entire area thereof, so that it should
pay only 10% of the assessed value of the portion thus occupied. the RTC adopted the recommendation
contained in the joint report. Accordingly, the RTC ordered NAPOCOR to pay the respondents: (1) just
compensation for the whole area of 14,257 square meters at the rate of P550.00/square meter; (2) legal
rate of interest from May 5, 1995 until full payment; and (3) the costs of suit. NAPOCOR appealed. The
CA promulgated its decision, in which the decision of the RTC, AFFIRMED with the MODIFICATION that
plaintiff-appellant shall pay only for the occupied 6,326 square meters of the subject real property at the
rate of P550.00 per square meter and to pay legal interest therefrom until fully paid.
Hence, this appeal by NAPOCOR
ISSUE: Whether or not the expropriation proceedings should be discontinued or dismissed

pending appeal.
RULING: YES.
The dismissal of the proceedings for expropriation at the instance of NAPOCOR is

proper, but, conformably with Section 4,36 Rule 67 of the Rules of Court, the dismissal or
discontinuance of the proceedings must be upon such terms as the court deems just and equitable.
The right of eminent domain is “the ultimate right of the sovereign power to
appropriate, not only the public but the private property of all citizens within the territorial sovereignty,
to public purpose.” But the exercise of such right is not unlimited, for two mandatory requirements
should underlie the Government’s exercise of the power of eminent domain, namely: (1) that it is for a
particular public purpose; and (2) that just compensation be paid to the property owner. These
requirements partake the nature of implied conditions that should be complied with to enable the
condemnor to keep the property expropriated. Public use is the fundamental basis for the action for
expropriation; hence, NAPOCOR’s motion to discontinue the proceedings is warranted and should be
granted. Here, NAPOCOR seeks to discontinue the expropriation proceedings on the ground that the
transmission lines constructed on the respondents’ property had already been retired.

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G.R. No. 165354. January 12, 2015.

* REPUBLIC OF THE PHILIPPINES, represented by the NATIONAL

Hence, this appeal by NAPOCOR

ISSUE: Whether or not the expropriation proceedings should be discontinued or dismissed

The dismissal of the proceedings for expropriation at the instance of NAPOCOR is

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