... _
SECOND DIVISION
CARPIO,J., Chairperson,
BRION,
DEL CASTILLO,
-versus- MENDOZA, and
LEONEN,JJ.
Prom5511t~u)6 ~
~kcINIAASO~~~ondents. ---~-~-------------~~~----x
SOQUE AND d
s MARGARITO A
x-----------------------------------------------
DECISION
LEONEN,J.:
damages.
square-meter area any improvement that could rise by a few meters from the
ground. 12
12
13
14
Id.
RTC records, p. 2.
Republic Act No. 6395 is otherwise known as the Charter of the National Power Corporation. Rep.
I
Act No. 6395, as amended by Pres. Decree No. 938, sec. 3-A provides:
Sec. 3-A - In acquiring private property or private property rights through expropriation proceedings
where the land or portion thereof will be traversed by the transmission lines, only a right-of-way
easement thereon shall be acquired when the principal purpose for which such land is actually devoted
will not be impaired, and where the land itself or portion thereof will be needed for the projects or
works, such land or portion thereof as necessaryshall be acquired.
In determining the just compensation of the property or property sought to be acquired through
expropriation proceedings, the same shall -
(a) With respect to the acquired land or portion thereof, not exceed the market value declared by the
owner or administrator or anyone having legal interest in the property, or such market value as
determined by the assessor, whichever is lower.
(b) With respect to the acquired right-of-way easement over the land or portion thereof, not to exceed
ten percent (I 0%) of the market value declared by the owner or administrator or anyone having legal
interest in the property, or such market value as determined by the assessor whichever is lower.
In addition to the just compensation for easement ofright-of-way, the owner of the land or owner of the
improvement, as the case may be, shall be compensated for the improvements actually damaged by the
construction and maintenance of the transmission lines, in an amount not exceeding the market value
thereof as declared by the owner or administrator, or anyone having legal interest in the property, or
such market value as determined by the assessor whichever is lower; Provided, that in cases any
buildings, houses and similar structures are actually affected by the right-of-way for the transmission
lines, their transfer, if feasible, shall be effected at the expense of the Corporation; Provided, further,
that such market value prevailing at the time the Corporation gives notice to the landowner or
administrator or anyone having legal interest in the property, to the effect that his land or portion
thereof is needed for its projects or works shall be used as basis to determine the just compensation
therefor. (Emphasis supplied)
15
Rollo, p. I 06.
16
RTC records, pp. 1-5.
17
Id. at 29-34.
18
Id. at 35.
19
Id. at 36.
Decision 4 G.R. No. 172507
When Civil Case No. 73 7 was called for pre-trial on May 8, 2000, the
case was ordered dismissed by the trial court due to the non-appearance of
both parties and their counsel. 21 However, the case was reinstated after
Spouses Asoque's counsel explained to the trial court the reason why he
arrived late. The pre-trial of the case was reset to May 24, 2000. 22
On May 24, 2000, the trial court, noting the absence of the National
Power Corporation and its counsel, allowed Spouses Asoque to present their
evidence ex parte before a court-appointed Commissioner. It simultaneously
dismissed the National Power Corporation's counterclaim. 23
"On June 22, July 24[,] and August 28, 2000, Spouses Asoque
presented evidence ex parte before Atty. Ferdinand S. Arpon, Branch Clerk
of Court, who was appointed Commissioner by the trial court." 26 Spouses
Asoque then filed their Formal Offer of Documentary Exhibits 27 on
September 6, 2000, to which the National Power Corporation filed its
Comment/Objection28 on October 13, 2000, citing the inadmissibility of the
exhibits presented. 29
On July 20, 2001, the Commissioner submitted to the trial court his
Commissioner's Report dated July 19, 2001. 30 He recommended that the fair
market value of the land be placed at P800.00 per square meter and that the
schedule of prevailing market value of the trees, plants, and crops prepared
by the Office of the Provincial Agriculturist, Catbalogan, Samar be adopted
to compute the amount of compensation for the damaged improvements. 31
20
21
On August 21, 2001, the trial court received the National Power
Id. at 32.
I
Rollo, p. 34.
22
Id. at 111.
23
Id. at 111-112.
24
Id. at 112.
25 Id.
26 Id.
27
RTC records, pp. 108-113.
28
Id. at 150-151.
29
Rollo, pp. 112-114.
30
RTC records, pp. 156-164.
31
Rollo, pp. 114-115.
Decision 5 G.R. No. 172507
On June 25, 2002, the Regional Trial Court rendered the Decision34 in
favor of Spouses Asoque and ordered the National Power Corporation to pay
them the amounts of:
Section 3-A of Republic Act No. 6395, the Court of Appeals ruled that the
determination of just compensation is a judicial function and cannot be
diminished by Republic Act No. 6395, as amended. 40
Finally, the Court of Appeals found that Spouses Asoque have already
been properly compensated for the damaged improvements per disbursement
vouchers in the total amount of Pl 7,133.50, and Spouses Asoque failed to
present competent proof that they were entitled to an additional award of
actual damages. 41
[2] The appellate court erred in affirming the trial court's appointment of a
commissioner, and validating the proceedings he conducted[;]
[3] The appellate court erred in affirming the trial court's directive to
petitioner NPC to compensate respondents for the value of the land
notwithstanding that only an easement thereon was acquired[;] [and]
[4] Assuming that petitioner NPC is liable to pay just compensation for the
subject property and the improvements thereon, the trial court nonetheless
erred in the determination of the values thereof. 42
This Court outright denied the Petition for lack of a verified statement
of material date of filing of the Motion for Reconsideration of the assailed
judgment under Rule 45, Sections 4(b) and 5, in relation to Rule 56, Section
43
5(d). However, on petitioner's Motion for Reconsideration, 44 this Court
reinstated45 the Petition and required respondents to comment.
17, 2007. Pursuant to this Court's Resolution48 dated June 25, 2007,
petitioner and respondents filed their respective memoranda on December
14, 2007 49 and November 29, 2007. 50
The May 24, 2000 pre-trial setting was allegedly too close to May 8,
2000, the date of the Order that set it, as to afford petitioner a reasonable
opportunity to make arrangements for it. 55 The May 8, 2000 Order, which
was served by registered mail, was received by petitioner only on May 22,
2000, just two (2) days before the pre-trial on May 24, 2000. 56 By then, both
of petitioner's lawyers were out of town (one was in Manila and the other
was in San Isidro, Northern Samar) on official business. 57 Petitioner
contends that despite having been informed through the Urgent
Manifestation and Motion to Reset Pre-trial dated May 24, 2000 and the
Motion for Reconsideration dated June 8, 2000 of the reason for the failure
of petitioner's counsel to appear at the May 24, 2000 pre-trial, the trial court
refused to reconsider its default order; thus, the trial court deprived
petitioner of its right to due process. 58
48
49
50
Id. at 88-89.
Id. at 104-128.
Id. at 130-143.
J
51
Id. at 148.
52
Id. at 118.
53
Id. at 119.
54 Id.
55
Id. at 119.
56
Id. at 119-120.
57
Id. at 120.
58 Id.
59
Id. at 121-122.
60
Id. at 121.
61
Id. at 122.
Decision 8 G.R. No. 172507
Respondents aver that the trial court was justified in allowing them to
present evidence ex parte because ( 1) petitioner and its counsel failed to
appear at the pre-trial on May 24, 2000; and (2) petitioner's Urgent
Manifestation and Motion to postpone the pre-trial setting on May 24, 2000
was filed late. 66 They add that due process was satisfied in the court a quo
as petitioner was aff9rded the fair and reasonable opportunity to defend its
side and to move for the reconsideration of the trial court ruling. 67
62
63
Id.
I
Id. at 123-124.
64
Id. at 125-126.
65
Id. at 124-125.
66
Id. at 136-140.
67 Id.
68
Id. at 140-142.
Decision 9 G.R. No. 172507
Second, whether the appraisal of the property was valid and the court-
appointed Commissioner exceeded his authority when he conducted an
appraisal of the property and recommended a valuation for just
compensation;
Lastly, whether the trial court erred in its determination of the amount
of just compensation to be paid to respondents.
Petitioner and its counsel were absent during the first pre-trial setting
on May 8, 2000. Respondents' counsel attended, although he was late. Had
petitioner and its counsel appeared on the first setting, they would have been
reasonably notified then and there of the second pre-trial resetting on May
24, 2000 and would have had the opportunity to ask for a later date.
Nonetheless, petitioner's counsel should have tried to inquire from the court
the next schedule of the pre-trial.
is mandatory as expressly stated under Rule 18, Section 4 of the 1997 Rules
of Civil Procedure. 70 Petitioner alleges that it filed a motion for
postponement of the first pre-trial setting. This notwithstanding, it was still
its duty to appear at the pre-trial first set on May 8, 2000. A motion for
postponement should never be presumed to be granted. 71
70
RULES OF COURT, Rule 18, sec. 4 provides:
SECTION 4. Appearance of Parties. - It shall be the duty of the parties and their counsel to appear at
the pre-trial. The non-appearance of a party may be excused only if a valid cause is shown therefor or
I
if a representative shall appear in his behalf fully authorized in writing to enter into an amicable
settlement, to submit to alternative modes of dispute resolution, and to enter into stipulations or
admissions of facts and of documents.
71
In re Presbitero, Sr. v. Court of Appeals, 291 Phil. 387, 395-396 (1993) [Per J. Davide, Jr., Third
Division]. See also Heirs ofGayares v. Pacific Asia Overseas Shipping Corp., 691 Phil. 46, 55 (2012)
[Per J. Del Castillo, First Division] citing Ramos v. Dajoyag, Jr., 428 Phil. 267, 278 (2002) [Per J.
Mendoza, Second Division].
72
In Linis v. Rovira, 61 Phil. 137, 139 (1935) [Per J. Imperial, En Banc], the trial court denied the motion
for postponement of a hearing on the ground that it was presented out of time and the reason alleged
therein was insufficient. This Court affirmed the trial court, thus: "The postponement of the hearing of
a case, which had been previously set and of which the parties and their attorneys had already been
notified, is not an absolute right of the litigants nor of their attorneys. The granting of a motion for
postponement depends entirely upon the discretion of the courts, in the exercise of which all the
attending circumstances and the rights of all the parties appearing therein should be taken into account.
If the postponement would manifestly prejudice some of the parties, or, ifthe motion for postponement
had been presented too late to prevent them from notifying their witnesses not to appear, thus causing
them considerable trouble and expense, as probably would have happened in the present case, it is the
duty of the courts to deny it."
In Macabingkil v. People's Homesite and Housing Corp., 164 Phil. 328, 341 (1976) [Per J. Antonio,
Second Division]: "The&e provisions of the Rules of Court prescribing the time within which certain
acts must he done, or certain proceedings taken, are considered absolutely indispensable to the
prevention of needless delays and to the orderly and speedy discharge of judicial businesses. The time
can be extended only ifa motion for extension is filed within the time or period provided therefor."
73
Be/star Transportation, Inc. v. Board of Transportation, 260 Phil. 219, 223 (1990) [Per J. Gancayco,
First Division].
Decision 11 G.R. No. 172507
due process. "Parties are presumed to have known the governing rules and
the consequences for the violation of such rules." 74 Moreover, the essence
of due process is an opportunity to be heard. Petitioner was given that
opportunity. Yet, it failed to appear at the two (2) pre-trial settings. A pre-
trial cannot be taken for granted for it serves a vital objective: the
simplification and expedition of the trial, if not its dispensation. Non-
appearance of a party may only be excused for a valid cause. We see none
in this case.
Similarly, petitioner in this case was not deprived of its day in court.
Petitioner was able to file a Motion for Reconsideration, participate in
further proceedings, and was allowed to submit its objections to respondents'
evidence and to the Commissioner's recommendation before the trial court
rendered judgment. It must, therefore, bear the consequences of its lapses. J
74
Paredes v. Verano, 535 Phil. 274, 285 (2006) [Per J. Tinga, Third Division].
75
481 Phil. 366 (2004) [Per J. Panganiban, Third Division].
76
Id. at 386.
Decision 12 G.R. No. 172507
II
RULE32
Trial by Commissioner
RULE32
Trial by Commissioner
Besides, the proceedings before the Regional Trial Court were not for
expropriation-for which petitioner itself claims that there is no need-but
were for recovery of just compensation and damages initiated by
respondents. Hence, Rule 67, Section 5 on the ascertainment of the just
compensation to be paid was no longer applicable. A trial before
commissioners, for instance, was dispensable. 78
NIA contends that it was deprived of due process when the trial
court determined the compensation due to respondent without the
assistance of commissioners. NIA refers to the procedure found in Section
77
78
5, Rule 67 of the 1964 Rules of Court applicable at the time[.]
Rollo, p. 37.
National Power Corporation v. Sta. Lora vda. De Capin, et al., 590 Phil. 665, 680 (2008) [Per J.
I
Chico-Nazario, Third Division]; National Power Corporation v. Bongbong, 549 Phil. 93, 109 (2007)
[Per J. Callejo, Sr., Third Division]; and National Power Corporation v. Court of Appeals and
Antonino Pobre, 479 Phil. 850, 867 (2004) [Per J. Carpio, First Division].
79
494 Phil. 494 (2005) [Per J. Carpio, First Division].
Decision 14 G.R. No. 172507
III
of eminent domain.
(3) There is color of legal authority in the entry into the property;
( 5) The use of property for public use removed from the owner all
beneficial enjoyment of the property. 83
render the remaining property unusable and uninhabitable. This Court held
that there was a taking of the remaining area of Andaya's property:
We agree with both the R TC and the CA that there was a full
taking on the part of NPC, notwithstanding that the owners were not
completely and actually dispossessed. It is settled that the taking of
private property for public use, to be compensable, need not be an actual
physical taking or appropriation. Indeed, the expropriator's action may be
short of acquisition of title, physical possession, or occupancy but may
still amount to a taking. Compensable taking includes destruction,
restriction, diminution, or interruption of the rights of ownership or of the
common and necessary use and enjoyment of the property in a lawful
manner, lessening or destroying its value. It is neither necessary that the
owner be wholly deprived of the use of his property, nor material whether
the property is removed from the possession of the owner, or in any
respect changes hands. 88 (Citations omitted)
IMPROVEMENTS AFFECTED
Panganiban, Third Division]; Camarines Norte Electric Cooperative, Inc. v. Court of Appeals, 398
J
Phil. 886 (2000) [Per J. Pardo, First Division].
90
271Phil.1 (1991) [PerJ. Bidin, Third Division].
91
Id. at 6-7.
92
502 Phil. 722 (2005) [Per J. Carpio Morales, Third Division].
Decision 18 G.R. No. 172507
Hence, due to the nature of the easement, which will deprive the
normal use of the land for an indefinite period and expose the property
owners' lives and limbs to danger, just compensation must be based on the
full market value of the affected property. 96
Section 3(a) of Republic Act No. 6395, as amended, states that only
10% of the market value of the property is due the owner of the property
subject to a right-of-way easement. However, this rule is not binding on the
Court. Well-settled is the rule that the determination of just compensation
for property taken in expropriation is a judicial prerogative. 97 Such
discretion cannot be curtailed by legislation.
Therefore, the Regional Trial Court was correct when it adjudged the
National Power Corporation liable to pay the value of the 4,352-square-
meter portion of respondents' land that was used for its transmission line
project.
IV
96
f
National Power Corporation v. Spouses Saludares, 686 Phil. 967, 976-978 (2012) [Per J. Sereno,
Second Division]; National Power Corporation v. Tuazon, 668 Phil. 301, 314 (2011) [Per J. Brion,
Second Division]; National Power Corporation v. Co, 598 Phil. 58, 73 (2009) [Per J. Tinga, Second
Division]; National Power Corporation v. Bagui, 590 Phil. 429, 434 (2008) [Per J. Tinga, Second
Division], citing National Power Corporation v. Manubay Agro-Industrial Development Corp., 480
Phil. 470, 480 (2004) [Per J. Panganiban, Third Division] and National Power Corporation v.
Bongbong, 549 Phil. 93, 111 (2007) [Per J. Callejo, Sr., Third Division]; Natonal Power Corporation v.
Tiangco, 543 Phil. 637, 648 (2007) [Per J. Garcia, First Division].
97
National Power Corporation v. Spouses Rodolfo Zabala and Lilia Baylon, 702 Phil. 491, 499-500
(2013) [Per J. Del Castillo, Second Division] citing Land Bank of the Philippines v. Celada, 515 Phil.
467, 477 (2006) [Per J. Ynares-Santiago, First Division].
98
233 Phil. 313 (1987) [Per J. Gutierrez, Jr., En Banc].
99
Id. at 326.
100
Land Bank of the Philippines v. Spouses Casto, 700 Phil. 290, 300 (2012) [Per J. Peralta, Third
Decision 20 G.R. No. 172507
courts will not be disturbed by this Court unless they are grounded entirely
on speculations, surmises, or conjectures, among others, 101 which do not
obtain in this case.
Just compensation has been defined as the "fair and full equivalent of
the loss." 102 In National Power Corporation v. YCLA Sugar Development
. 103
Corporatzon:
The value and character of the land at the time it was taken by
government are the criteria for determining just compensation. 105 "All the
facts as to the condition of the property and its surroundings, as well as its
improvements and capabilities, must thus be considered." 106
Some factors that have been previously considered by the courts were
acquisition cost, current value of like properties, its actual or potential uses,
its size, shape, and location, and the tax declarations on the property. 107 In
this regard, the standards enumerated in statutes such as Section 5 108 of
101
Division].
In Westmont Investment Corp. v. Francia, Jr., 678 Phil. 180, 191 (2011) [Per J. Mendoza, Third
Division], jurisprudence recognize other exceptions, namely: "(2) when the inference made is
!
manifestly mistaken, absurd, or impossible; (3) when there is a grave abuse of discretion; (4) when the
judgment is based on misappreciation of facts; (5) when the findings of fact are conflicting; (6) when
in making its findings, the same are contrary to the admissions of both appellant and appellee; (7)
when the findings are contrary to those of the trial court; (8) when the findings are conclusions without
citation of specific evidence on which they are based; (9) when the facts set forth in the petition as well
as in the petitioner's main and reply briefs are not disputed by the respondent; and (I 0) when the
findings of fact are premised on the supposed absence of evidence and contradicted by the evidence on
record."
102
National Power Corporation v. Court of Appeals and Antonino Pobre, 479 Phil. 850 (2004) [Per J.
Carpio, First Division].
103
723 Phil. 616 (2013) [Per J. Reyes, First Division].
104
Id. at 623. See Republic v. Rural Bank of Kabacan, Inc., 680 Phil. 247, 256-257 (2012) [Per J. Sereno,
Second Division].
105
National Power Corporation v. Spouses Chiong, 452 Phil 649, 664 (2003) [Per J. Quisumbing, Second
Division].
106
National Power Corporation v. Suarez, 589 Phil. 219, 225 (2008) [Per J. Carpio Morales, Second
Division]; National Power Corporation v. Manubay Agro-Industrial Development Corporation, 480
Phil. 470, 480 (2004) [Per J. Panganiban, Third Division].
107
Republic v. Court ofAppeals, 612 Phil. 965, 977 (2009) [Per J. Carpio, First Division]; Republic v. Ker
& Company Ltd., 433 Phil. 70, 77 (2002) [Per J. Austria-Martinez, First Division].
108
SECTION 5. Standards for the Assessment of the Value of the Land Subject of Expropriation
Proceedings or Negotiated Sale. - In order to facilitate the determination of just compensation, the
court may consider, among other well-established factors, the following relevant standards:
(a) The classification and use for which the property is suited;
Decision 21 G.R. No. 172507
Republic Act No. 8974 109 are merely recommendatory, and courts are not
bound to consider all of them. 110
SO ORDERED.
\
Associate Justice
WE CONCUR:
Associate Justice
Chairperson
CilruDD ~~j
ARTUROD. MARIANO C. DEL CASTILLO
Associate Justice Associate Justice
116
RTC records, p. 210.
117
National Power Corporation v. Spouses Chiong, 452 Phil. 649, 664 (2003) [Per J. Quisumbing,
Second Division].
Decision 23 G.R. No. 172507
ATTESTATION
I attest that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion of the
Court's Division.
ANTONIO T. CA
Associate Justice
Chairperson, Second Division
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution and the Division
Chairperson's Attestation, I certify that the conclusions in the above Decision
had been reached in consultation before the case was assigned to the writer
of the opinion of the Court's Division.