G.R. No.

165354 RP represented by NAPOCOR v Heirs of Borbon and CA

FACTS:
In February 1993, NAPOCOR entered the property owned by the respondents
heirs of Saturnino Borbon located in Barangay San Isidro Batangas City, having a
total area of 14,257 square meters. Said entrance was done to construct and
maintain transmission lines of the 230 KV Mahabang Parang-Pinamucan Power
Transmission Project. NAPOCOR filed a complaint for expropriation with the RTC of
Batangas only on May 26, 1995, seeking the acquisition of an easement of right of
way over a portion of the property involving an area of 6,326 square meters.
NAPOCOR alleged that negotiations with the respondents were done and that no
agreement was reached, further, that it is willing to deposit P9,790.00, which
represents the assessed value of the portion sought to be appropriated. NAPOCOR
prayed for a writ of possession so that it may enter and take control, to demolish
improvements and to construct transmission lines.
Respondents filed a motion to dismiss countering that NAPOCOR had not
negotiated with them before entering the property and that they entered without
consent. Such entrance destroyed fruits without payment, and that other portions of
the land were also affected since the transmission lines passed through the center
the land thereby dividing the land into three lots. Further that the presence of high
tension transmission lines rendered the entire property inutile for future use.
Respondents do not object as long as just compensation is paid, not only to the
portion directly affected but also to the entire property as its value greatly
diminished. Further, they raised the land is classified not agricultural but as
industrial.
2 commissioners submitted a report indicating that said property was
classified back in 1994 as Industrial land located within industrial 2 zoning. They
valued the land at P550.00 per square meter. While the third commissioners report
recommended a 10% easement fee of the assessed value on the tax declaration
plus cost of damages.
Respondents objected by saying that NAPOCOR should compensate them at
P550.00 per square meter and for the entire property. NAPOCOR on the other hand
submitted its objection saying that at the time of the taking, the land was still
classified as agricultural and that it should only compensate for the portion sought.
RTC ruled ordering NAPOCOR to compensate respondents for the entire
property and applied recommendation of the two commissioners valuing the land at
P550.00/square meter. CA upon appeal of NAPOCOR affirmed RTC ruling but
modified the coverage of the payment to only 6,326 square meter. NAPOCOR
appealed to SC.

Pending appeal, on January 3, 2014 NAPOCOR filed a manifestation and

motion to discontinue appropriation proceedings because property sought to be
expropriated is no longer necessary for public use. That the public purpose for
which the property would be used thereby ceased to exist.
ISSUE:
Whether or not expropriation proceeding should continue.

HELD:
Supreme Court ruled that the dismissal of the expropriation procedure is
proper, but, must be upon such terms as the court deems just and equitable.
The exercise of the power of eminent domain is not unlimited, it has two
mandatory requirements which are; (1) that it is for a particular public purpose; and
(2) that just compensation is paid. The court said that the element of public use
must be maintained throughout the proceeding for absence of which, the
expropriator must return the property to the owner, if the latter so desires it, citing
the case of Mactan-Cebu International Airport Authority v Lozada Sr.
The court points out that NAPOCOR entered the property without consent and
without payment of just compensation. Neither was there any deposit as required
by law. NAPOCOR also destroyed some fruit trees and plants without payment,
divided the property into 3 lots as its transmission lines passed through the center
of the property, thereby rendering the land inutile for future use, it would be unfair if
NAPOCOR will not be liable.
There will be no payment of just compensation as there was no taking.
Instead, NAPOCOR should compensate respondents for the disturbance of their
property rights at the time of the entry in 1993, by paying them actual or other
compensatory damages.