Article III Bill of Rights

(Romel G Torres)
Section 9. Prvate Property sha not be taken for pubc use wthout |ust
compensaton.
[Expropriation in General]
eirs of Al!erto S"g"itan #$ %it& of 'an(al"&ong) 'arch *+)
,---
Important .oints/ Snce the exercse of the power of emnent doman
ahects an ndvdua's rght to prvate property, a consttutonay-protected rght
necessary for the preservaton and enhancement of persona dgnty and
ntmatey connected wth the rghts to fe and berty the need for ts crcumspect
operaton cannot be overemphaszed. Thus, our own Consttuton provdes
that "prvate property sha not be taken for pubc use wthout |ust compensaton.
Furthermore, the due process and equa protecton causes

act as addtona
safeguards aganst the arbtrary exercse of ths governmenta power.
0A #$ eirs of Isi(ro G"i#elon(o) GR *1++*) 2"ne *9) ,--3
Important .oint: The court hed that a socazed housng s aways
for the pubc used and that the pubc purpose of the socazed housng
pro|ect s not n any way dmnshed by the amount of |ust compensaton
that the court has xed.
'actan #$ 4o5a(a) 6*3 S%RA 6*7 (Re#ersion)
Important .oint/ Wth respect to the eement of pubc use, the
exproprator shoud commt to use the property pursuant to the purpose
stated n the petton for expropraton ed, fang whch, t shoud e
another petton for the new purpose, and f not, t s then ncumbent
upon the exproprator to return the sad property to ts prvate owner, f
the atter desres to reacqure the same.
8(a 9e :"na #$ Rep"!lic) 6+, S%RA 37+ (Re#ersion)
Important .oints/ The takng of a prvate and n expropraton
proceedngs s aways condtoned on ts contnued devoton to ts pubc
purpose. As a necessary coroary, once the purpose s termnated or
peremptory abandoned, then the former owner, f he so desres, may
seek ts reverson, sub|ect of course to the return, at the very east, of the
|ust compensaton receved.
.o;er to <n(erta=e Expropriation %ase
Iron an( Steel A"thorit& #s$ %A) ,+9 S%RA 137
Important .oints/ No new egsatve act s necessary shoud the
Repubc decde, upon beng substtuted for ISA, n fact to contnue to
prosecute the expropraton proceedngs-the egsatve authorty, a ong
tme ago, enacted a contnung or standng deegaton of authorty to the
Presdent of the Phppnes to exercse, or cause the exercse of, the power
of emnent doman on behaf of the Government.
.hilippine .ress Instit"te #$ %:'E4E%) ,++ S%RA ,>,
Important .oints/ The takng of prvate property for pubc use s
authorzed by the Consttuton, but not wthout payment of "|ust
compensaton."-
Tele!ap #$ %:'E4E% ,79 S%RA 33>
Important .oints There s, of course, no queston that the takng of
the property n the case at bar s for pubc use, .e., to ensure that
artme s aocated equay among the canddates, however, there s
no |ustcaton for the takng wthout payment of |ust compensaton.
Estate of eirs #$ %it& of 'anila) +,, S%RA 11*
Important .oints The State has a paramount nterest n exercsng ts
power of emnent doman for the genera good consderng that the
rght of the State to exproprate prvate property as ong as t s for
pubc use aways takes precedence over the nterest of prvate
property owners. However we must not ose sght of the fact that the
ndvdua rghts ahected by the exercse of such rght are aso entted
to protecton, bearng n mnd that the exercse of ths superor rght
cannot overrde the guarantee of due process extended by the aw to
owners of the property to be exproprated. In ths regard, vgance
over compance wth the due process requrements s n order.
4agcao #$ 4a!ra) GR *11>+6) :cto!er *3) ,--+ ++- S%RA ,>9
Important .oints/ Prvate ands rank ast n the order of prorty for
purposes of socazed housng. In the same ven, expropraton
proceedngs may be resorted to ony after the other modes of
acquston are exhausted. Compance wth these condtons s
mandatory because these are the ony safeguards of oftentmes
hepess owners of prvate property aganst what may be a tyrannca
voaton of due process when ther property s forcby taken from
them aegedy for pubc use.
Rights of :;ner Before Expropriation
Greater Balanga #$ '"nicipalit& of Balanga) ,39 S%RA +36
Important .oints/ Unt expropraton proceedngs are nsttuted n
court, the andowner cannot be deprved of ts rght over the and. The
resouton merey mentoned the pan to acqure the ot for expanson
of the pubc market ad|acent thereto.
8elarma #$ %A) ,1, S%RA +-6
Important .oints/ Uness and unt the transfer s consummated, or
expropraton proceedngs nsttuted by the government, the owner
contnues to retan ownershp.-
Solan(a #$ %A) 3-1 S%RA 6+1
Important .oints/ Before a preemptve rght can be exercsed, the
dsputed and shoud be stuated n an area decared to be both an APD
and a ULRZ.
Rep"!lic #$ Salem) 33+ S%RA 3,- (Title not cancelle( "ntil pai()
Important .oints/ It s ony upon payment of |ust compensaton that
tte over the property passes to the government.- It s ony upon
payment of |ust compensaton that tte over the property passes to the
government. Therefore, unt the acton for expropraton has been
competed and termnated, ownershp over the property beng
exproprated remans wth the regstered owner. Consequenty, the
atter can exercse a rghts pertanng to an owner, ncudng the rght to
dspose of hs property, sub|ect to the power of the State utmatey to
acqure t through expropraton.
*$ Elements of ?Ta=ing@
Rep"!lic #$ 8(a$ 9e %astel#i 17 S%RA 336
Important .oints Eements of Takng: A number of crcumstances
must be present n the "takng" of property for purposes of emnent
doman:
(1) the exproprator must enter a prvate property;
(2) the entrance nto prvate property must be for more than a
momentary perod;
(3) the entry nto the property shoud be under warrant or coor of
ega authorty;
(4) the property must be devoted to a pubc use or otherwse
nformay approprated or n|urousy ahected; and
(5) the utzaton of the property for pubc use must be n such a way
as to oust the owner and deprve hm of a beneca
en|oyment of the property.
Garcia #$ %A *-, S%RA 19>
Important .oints Where there s no takng of property for purposes of
nether emnent doman nor condemnaton proceedngs nsttuted, the
bass for determnaton of |ust compensaton s the tme when the tra
court made ts order of expropraton. Factors to be consdered n
estmatng market vaue of property for purposes of compensaton
shoud be xed s the tme when the tra court made ts order of
expropraton.
%it& of Go#ernment #$ 2"(ge Ericta *,, S%RA >19
Important .oints An ordnance of Ouezon Cty requrng memora
park operators to set asde at east sx percent (6%) of ther cemetery
for charty bura of deceased persons s not a vad exercse of poce
power, and one that consttute takng of property wthout |ust
compensaton.
<S #$ %a"s!& 3,7 <S ,16
Important .oints The Unted States Supreme Court has decared that
ghts over prvate and are not takng, uness they are so aw and so
frequent as to be a drect and mmedate nterference wth the
en|oyment and use of the and. Moreover, the Code Commsson has
decared that the reasonabe requrements of aera navgaton are to
be toerated by the andowner. Lmtaton of the Rght of Excuson of
Others A. Use of Reasonabe Force As to owner has the rght not ony to
en|oy the property but aso to excude others from the possesson
thereof.
.eople #$ AaBar(o *-+ .hil ++3 (1*, S%RA 36-)
Important .oints An ordnance whch permanently so restrcts the
use of property that t cannot be used for any reasonabe purpose
goes, t s pan, beyond reguaton and must be recognzed as a takng
of the property. The ony substanta dherence, n such case, between
restrcton and actua takng, s that the restrcton eaves the owner
sub|ect to the burden of payment of taxaton, whe outrght
conscaton woud reeve hm of that burden.
Rep"!lic #$ .49T ,6 S%RA 6,-
Important .oints The Repubc may, n the exercse of the soveregn
power of emnent doman, requre the teephone company to permt
nterconnecton of the government teephone system and that of the
PLDT, as the needs of the government servce may requre, sub|ect to
the payment of |ust compensaton to be determned by the court.
Normay, of course, the power of emnent doman resuts. In the takng
or appropraton of tte to, and possesson of, the exproprated
property; but no cogent reason appears why the sad power may not
be avaed of to mpose ony a burden upon the owner of condemned
property, wthout oss of tte and possesson. In the nterest of natona
wefare, transfer uttes to pubc ownershp upon payment of |ust
compensaton, there s no reason why the State may not requre a
pubc utty to render servces n the genera nterest, provded |ust
compensaton s pad therefor. Utmatey, the benecary of the
nterconnectng servce woud be the users of both teephone systems,
so that the condemnaton woud be for pubc use.
0.% #$ 2ocson ,-6 S%RA 1,-
Important .oints The Court rued that there are two (2) stages n
every acton of expropraton: "The rst s concerned wth the
determnaton of the authorty of the panth to exercse the power of
emnent doman and the proprety of ts exercse n the context of the
facts nvoved n the sut. The second phase of the emnent doman
acton s concerned wth the determnaton by the Court of the |ust
compensaton for the property sought to be taken.
.enn %entral Transportation #$ 0C %it& +37 <S *-+
Important .oints A zonng ordnance, athough a vad exercse of
poce power, whch mts a "whoesome" property to a use whch
cannot reasonaby be made of t consttutes the takng of such
property wthout |ust compensaton. Prvate property whch s nether
noxous nor ntended for noxous purposes may not, by zonng, be
destroyed wthout compensaton.
0.% #$ 'an"!a& +3> S%RA 6-
Important .oints The takng of property was purey an easement of a
rght of way, but we nevertheess rued that the fu market vaue
shoud be pad nstead of an easement fee. The vaue of |ust
compensaton sha "be determned as of the date of the takng of the
property or the ng of the compant, whchever came rst;
Exceptons. The functon for determnng |ust compensaton remans
|udca n character.
0.% #$ San .e(ro 1-3 S%RA 333
Important .oints Expropriation is not limited to the acquisition of real property
with a corresponding transfer of title or possessionthe right-of-way easement resulting in a
restriction or limitation on property right over the land traversed by transmission lines
also falls within the ambit of the term expropriation.
0.% #$ Tianco 1*+ S%RA 6>+
Important .oints The consttutona mtaton of "|ust compensaton"
s consdered to be the sum equvaent to the market vaue of the
property, broady descrbed to be the prce xed by the seer n open
market n the usua and ordnary course of ega acton and competton
or the far vaue of the property as between one who receves, and who
desres to se t, xed at the tme of the actua takng by the
government.
4B. #$ Imperial 1*1 S%RA ++9
Important .oints That the takng of prvate ands under the agraran
reform program partakes of the nature of an expropraton proceedng.
In a number of cases, we have stated that |ust compensaton n
expropraton proceedngs represents the fu and far equvaent of the
property taken from ts owner by the exproprator. The measure s not
the takers gan, but the owners oss. To compensate s to render
somethng whch s equa n vaue to that taken or receved.
0%. #$ Bong!ong 1,- S%RA ,9-
Important .oints Consderng the nature and the ehect of the
nstaaton power nes, the mtatons on the use of the and for an
ndente perod woud deprve respondent of norma use of the
property. For ths reason, the atter s entted to payment of |ust
compensaton, whch must be nether more nor ess than the monetary
equvaent of the and.
0.% #$ I!rahim 1,6 S%RA *+9
Important .oints The power of emnent doman encompasses not
ony the takng or appropraton of tte to and possesson of the
exproprated property but kewse covers even the mposton of a
mere burden upon the owner of the condemned property. Where the
nature of the easement practcay deprves the owners of the
propertys norma beneca use, notwthstandng the fact that the
exproprator ony occupes the sub-terran porton, t s abe to pay not
merey an easement fee but rather the fu compensaton for and.
0.% #$ ."refoo(s 161 S%RA *>
Important .oints The executve department or the egsature may
make the nta determnatons of |ust compensaton but when a party
cams a voaton of the guarantee n the B of Rghts that prvate
property may not be taken for pubc use wthout |ust compensaton,
no statute, decree, or executve order can mandate that ts own
determnaton sha preva over the courts ndngs.
0.% #$ %apin 169 S%RA 6+7
Important .oints NAPOCORs prohbton regardng the use of respondents
and amounted to an expropraton of the portons of the atters propertes
and perpetuay deprved the respondents of ther propretary rghts thereon
and for whch they are entted to a reasonabe and |ust
compensaton. Havng estabshed that pettoners acquston of rght
-of- way easement over the portons of respondents ots was dentey a
takng under the power of emnent doman, pettoner then s abe
to pay respondents |ust compensaton and not merey an easement
fee.
.0:% #$ 'aglasang 1>- S%RA 16- (lease not !asis for ta=ing)
Important .oints There s a "takng" when the exproprator enters
prvate property not ony for a momentary perod but for a more
permanent duraton, for the purpose of devotng the property to a
pubc use n such a manner as to oust the owner and deprve hm of
a beneca en|oyment thereof.
0.% #$ %: 1>7 S%Ra ,+3
Important .oints The vaue of |ust compensaton sha "be
determned as of the date of the takng of the property or the ng
of the compant, whchever came rstD Exceptons.-
-Rue 67 ceary provdes that the vaue of |ust compensaton sha "be
determned as of the date of the takng of the property or the ng of the
compant, whchever came rst." Typcay, the tme of takng s
contemporaneous wth the tme the petton s ed. The genera rue s
what s provded for by Rue 67. There are exceptons-grave n|ustce to the
property owner, the takng dd not have coor of ega authorty, the takng of
the property was not ntay for expropraton and the owner w be gven
undue ncrement advantages because of the expropraton. However, none
of these exceptons are present n the nstant case
0.% #$ 8illamor E 19- S%RA **
Important .oints Easement of rght of way fas wthn the purvew of
the power of emnent doman. In nstang the 230 KV Tasay-
Compostea transmsson nes whch traverse respondents ands, a
permanent mtaton s mposed by pettoner aganst the use of the
ands for an ndente perod. Ths deprves respondent of the norma
use of the ands. In fact, not ony are the ahected areas of the ands
traversed by pettoners transmsson nes but a porton s used as the
ste of ts transmsson tower. Because of the danger to fe and mbs
that may be caused beneath the hgh-tenson ve wres, the andowner
w not be abe to use the ands for farmng or any agrcutura
purposes.
0.% #$ 'ar"hom 6-9 S%RA *97
Important .oints NPCs acquston of an easement of rght-of-way on
the ands of respondents amounted to expropraton of the portons of
the atters property for whch they are entted to a reasonabe and
|ust compensaton. The term |ust compensaton had been dened as
the fu and far equvaent of the property taken from ts owner by the
exproprator. The measure s not the takers gan, but the owners oss.
:SG #$ A&ala 6-- S%RA 6*> (free par=ing spaces in malls)
Important .oints Tte to and/or possesson of the parkng factes
reman/s wth respondents, the prohbton aganst ther coecton of
parkng fees from the pubc, for the use of sad factes, s aready
tantamount to a takng or conscaton of ther propertes. The State s
not ony requrng that respondents devote a porton of the atters
propertes for use as parkng spaces, but s aso mandatng that they
gve the pubc access to sad parkng spaces for free. Such s aready
an excessve ntruson nto the property rghts of respondents. Not ony
are they beng deprved of the rght to use a porton of ther propertes
as they wsh, they are further prohbted from protng from ts use or
even |ust recoverng therefrom the expenses for the mantenance and
operaton of the requred parkng factes.
0.% #$ T"a5on 613 S%RA 7+
Important .oints The determnaton of |ust compensaton n
expropraton cases s a functon addressed to the dscreton of the
courts, and may not be usurped by any other branch or omca of the
government. Artce III of the 1987 Consttuton mandates that no prvate
property sha be taken for pubc use wthout payment of |ust compensaton.
,$ ."!lic <se
S"m"long #$ G"errero - 154 SCRA 461
Important .oints The public character of housing measures does not change
because units in housing proects cannot be occupied by all- !ousing is a basic
human need. "hortage in housing is a matter of state concern since it directly and
significantly affects public health# safety# the environment and in sum# the general welfare.
The public character of housing measures does not change because units in housing
proects cannot be occupied by all but only by those who satisfy prescribed
qualifications. $ beginning has to be made# for it is not possible to provide housing for
all who need it# all at once.
.hil$ %ol"m!ian Assn$ #$ on$ .anis ,,7 S%RA 667
Important .oints Pubc use now ncudes the broader noton of
ndrect pubc benet or advantage, ncudng n partcuar, urban and
reform and housng. Through the years, the pubc use requrement n
emnent doman has evoved nto a exbe concept, nuenced by
changng condtons.
'anosca #$ %A ,1, S%RA +*,
Important .oints The consttutona and statutory bass for takng
property by emnent doman. For condemnaton purposes, pubc use
s one whch confers some benet or advantage to the pubc; t s not
conned to actua use by pubc. It s measured n terms of rght of
pubc to use proposed factes for whch condemnaton s sought and,
as ong as pubc has rght of use, whether exercsed by one or many
members of pubc, a pubc advantage or pubc benet accrues
sumcent to consttute a pubc use.
.ro#ince of %amarines S"r #$ %A ,,, S%RA *>3
Important .oints Loca government unts can exproprate agrcutura
ands wthout pror authorty from the Department of Agraran Reform
as the determnaton of the pubc use of the property sub|ect for
expropraton s consdered an expresson of egsatve pocy. In ehect,
t woud then be the Department of Agraran Reform to scrutnze
whether the expropraton s for a pubc purpose or pubc use.
4agcao #$ 2"(ge 4a!ra ++- S%RA ,>9 (,--+)
Important .oints Prvate ands rank ast n the order of prorty for
purposes of socazed housng. In the same ven, expropraton
proceedngs may be resorted to ony after the other modes of
acquston are exhausted. Compance wth these condtons s
mandatory because these are the ony safeguards of oftentmes
hepess owners of prvate property aganst what may be a tyrannca
voaton of due process when ther property s forcby taken from
them aegedy for pubc use.
Re&es #$ 0A) GR *+>1**) 2an ,-) ,--3
Important .oints The takng to be vad must be for pubc
use. There was a tme when t was fet that a tera meanng shoud be
attached to such a requrement. Whatever pro|ect s undertaken must
be for the pubc to en|oy, as n the case of streets or parks. Otherwse,
expropraton s not aowabe. It s not anymore. As ong as the
purpose of the takng s pubc, then the power of emnent doman
comes nto pay. As |ust noted, the consttuton n at east two cases,
to remove any doubt, determnes what s pubc use. One s the
expropraton of ands to be subdvded nto sma ots for resae at cost
to ndvduas. The other s n the transfer, through the exercse of ths
power, of uttes and other prvate enterprse to the government. It s
accurate to state then that at present whatever may be benecay
empoyed for the genera wefare satses the requrement of pubc
use.
'asi=ip #$ .asig) +>9 S%RA 39*
Important .oints The rght to take prvate property for pubc
purposes necessary orgnates from "the necessty" and the takng
must be mted to such necessty. "necessty wthn the rue that the
partcuar property to be exproprated must be necessary, does not
mean an absoute but ony a reasonabe or practca necessty, such as
woud combne the greatest benet to the pubc wth the east
nconvenence and expense to the condemnng party and the property
owner consstent wth such benet.
9i(ipio #$ Earth Sa#ers #$ G"5on) +71 S%RA 176
Important .oints Pubc use as a requrement for the vad exercse of
the power of emnent doman s now synonymous wth pubc nterest,
pubc benet, pubc wefare and pubc convenencet ncudes the
broader noton of ndrect pubc benet or advantage-pubc use as
tradtonay understood as "actua use by the pubc" has aready been
abandoned-mnng ndustry pays a pvota roe n the economc
deveopment of the country and s a vta too n the governments
thrust of acceerated recovery.
'anapat #$ %A) 136 S%RA 3,
Important .oints The public use requisite for the exercise of the power of
eminent domain is a flexible and evolving concept influenced by changing conditions. %t
need only be added# at this uncture# that the public use requisite for the valid exercise of the
power of eminent domain is a flexible and evolving concept influenced by changing
conditions. $t present# it may not be amiss to state that whatever is beneficially
employed for the general welfare satisfies the requirement of public use.
'actan #$ T"(t"( 1>* S%RA *61 [,--7])
Important .oints The mode of acquisition for public purpose of a land whether by
expropriation or by contractis not material in determining whether the acquisition is
with or without condition.
%it& of 'anila #$ Tan Te) 617 S%RA 77(sociali5e( ho"sing)
Important .oints The term "pubc use" has acqured a more
comprehensve coverage to the tera mport of the term sgnfyng strct
use or empoyment by the pubc has been added the broader noton of
ndrect pubc benet or advantage.-Prefatory, the concept of
socialized housing, whereby housng unts are dstrbuted and/or sod
to quaed benecares on much easer terms, has aready been
ncuded n the expanded denton of "pubc use or purpose" n the
context of the States exercse of power of emnent doman.
3$ 2"st %ompensation
%it& of 'anila #$ Estra(a ,1 .hil ,-7
Important .oints "Compensaton" means an equvaent for the vaue
of the and (property) taken. Anythng beyond that s more and
anythng short of that s ess than compensaton. To compensate s to
render somethng whch s equa to that taken or receved. The word
"|ust" s used to ntensfy the meanng of the word "compensaton;" to
convey the dea that the equvaent to be rendered for the property
taken sha be rea, substanta, fu, ampe. "|ust compensaton,"
therefore, as used n secton 246 of the Code of Cv Procedure , means
a far and fu equvaent for the oss sustaned."
'anila Railroa( #$ .are(es 3* .hil$ **7
Important .oints "Accordng to the weght of authorty, f the
consttuton or statutes do not expressy requre t, actua payment or
tender before takng s unnecessary, and t w be sumcent f a certan
and adequate remedy s provder! by whch the owner can obtan
compensaton wthout any unreasonabe deay. Accordng to ths vew,
the usua consttutona provson that prvate property sha not be
taken for a pubc use wthout |ust compensaton does not requre that
compensaton sha be actuay pad n advance of the occupancy of the
and taken, and does not prohbt the egsature from authorzng a
takng n advance of payment."
Santos #$ 4an( Ban= GR *3>+3*) Sept$ >) ,---
Important .oints The compensaton contempated n the aw w
cause the andowners, bg and sma, not a tte nconvenence. As
aready remarked, ths cannot be avoded. Nevertheess, t s devouty
hoped that these countrymen of ours, conscous as we know they are
of the need for ther forbearance and even sacrce, w not begrudge
us ther ndspensabe share n the attanment of the dea of agraran
reform. Otherwse, our pursut of ths eusve goa w be ke the quest
for the Hoy Gra."
'"nicipalit& of 9aet #$ %A 93 S%RA 661
Important .oints Procedure n the determnaton of |ust
compensaton by commssoners.-Secton 5, Rue 67 of the Revsed
Rues of Court cas for the appontment of not more than three (3)
competent and dsnterested persons as commssoners to ascertan
and report to the court the |ust compensaton for the property sought
to be taken. The vaue and damages awarded must be a |ust
compensaton and no more and no ess. But n xng these amounts,
the commssoners are not to act ad btum. They are to dscharge the
trust reposed n them accordng to we-estabshed rues and form
ther |udgment upon correct ega prncpes. To deny ths s to pace
them where no one ese n ths country s pace, above the aw and
beyond accountabty.
0.% #$ %A *,9 S%RA 661
Important .oints The prce or vaue of the and and ts character at
the tme t was taken by the Government are the crtera for
determnng |ust compensaton. And most mportanty, on the ssue of
|ust compensaton, t s now setted doctrne, foowng the eadng case
of Afonso vs. Pasay, that to determne due compensaton for ands
approprated by the Government, the bass shoud be the prce or
vaue at the tme t was taken from the owner and approprated by the
Government.
E.FA #$ 9"la& *+9 S%RA 3-1
Important .oints |ust Compensaton means the equvaent for the
vaue of the property at the tme of ts takng. Anythng beyond that s
more and anythng short of that s ess, than |ust compensaton. It
means a far and fu equvaent for the oss sustaned, whch s the
measure of the ndemnty, not whatever gan woud accrue to the
expropratng entty.
'a(("m!a #$ GSIS *7, S%RA ,7*
Important .oints Land Bank bonds sha be accepted as payment of
pre-exstng obgatons to government nanca nsttutons at ther
face or par vaue, not at dscounted vaue.
Ber=en=otter #$ %A ,*6 S%RA 17+
Important .oints To determne |ust compensaton, the tra court
shoud rst ascertan the market vaue of the property, to whch shoud
be added the consequenta damages after deductng therefrom the
consequenta benets whch may arse from the expropraton. If the
consequenta benets exceed the consequenta damages, these tems
shoud be dsregarded atogether as the basc vaue of the property
shoud be pad n every case.
'eralco #$ .ine(a ,-6 S%RA *96
Important .oints In an expropraton case such as ths one where the
prncpa ssue s the determnaton of |ust compensaton, a tra before
the Commssoners s ndspensabe to aow the partes to present
evdence on the ssue of |ust compensaton. Respondent |udges act of
determnng and orderng the payment of |ust compensaton wthout
the assstance of a Board of Commssoners s a agrant voaton of
pettoners consttutona rght to due process and s a gross voaton
of the mandated rue estabshed by the Revsed Rues of Court.
0.% #$ %A ,1+ S%RA 1>>
Important .oints The genera rue n determnng "|ust
compensaton" n emnent doman s the vaue of the property as of the
date of the ng of the compant, whch normay concdes wth the
takng. An excepton to the genera rue on determnaton of "|ust
compensaton" nds appcaton where the owner woud be gven
undue ncrementa advantages arsng from the use to whch the
government devotes the property exproprated; The agency
expropratng has the burden of provng ts cam that ts occupancy
and use-not ordnary naton and ncrease n and vaues-was the
drect cause of the ncrease n vauaton. There s no "takng" where
the entrance n 1978 was wthout ntent to exproprate or was not
made under warrant or coor of ega authorty. In ths case, the
pettoners entrance n 1978 was wthout ntent to exproprate or was
not made under warrant or coor of ega authorty, for t beeved the
property was pubc and covered by Procamaton No. 1354
4an( Ban= #$ %A ,+9 S%RA *+9D ('R) ,17 S%RA +-+
Important .oints There s no ambguty n Secton 16(e) of RA 6657
to warrant an expanded constructon of the term "depost." t s very
expct therefrom that the depost must be made ony n "cash" or n "LBP
bonds." Nowhere does t appear nor can t be nferred that the depost
can be made n any other form. If t were the ntenton to ncude a
"trust account" among the vad modes of depost that shoud have been
made express, or at east, quafyng words ought to have appeared from
whch t can be fary deduced that a "trust account" s
aowed
Rep"!lic #$ %A ,63 S%RA >17
Important .oints What agraran ad|udcators are empowered to do s
ony to determne n a premnary manner the reasonabe
compensaton to be pad to andowners, eavng to the courts the
utmate power to decde the queston.
0.% #$ enson GR *,9997) 9ecem!er ,9 *997
T Important .oints he parces of and sought to be exproprated are
undenaby de, undeveoped, raw agrcutura and, bereft of any
mprovement. Except for the Henson famy, a the other
respondents were admttedy farmer benecares under operaton and
transfer of the Department of Agraran Reform. However, the and has
been re-cassed as resdenta. The nature and character of the and
at the tme of ts takng s the prncpa crteron to determne |ust
compensaton to the andowner.
Sigre #$ %a) GR *-9167) A"g$ 7 ,--, 37> S%RA *1
Important .oints The determnaton of |ust compensaton under P.D.
No. 27, ke n Secton 16 (d) of R.A. 6657 or the CARP Law, s not na
or concusve-uness both the andowner and the tenant-farmer
accept the vauaton of the property by the Barro Commttee on Land
Producton and the DAR, the partes may brng the dspute to court n
order to determne the approprate amount of compensaton, a task
unmstakaby wthn the prerogatve of the court.
0A #$ eirs of Isi(ro) GR *1++**) 2"ne *9 ,--*) +-+ S%RA 379
Important .oints s arbtrary and caprcous for a government agency
to ntate expropraton proceedngs, seze a persons property, aow
the |udgment of the court to become na and executory and then
refuse to pay on the ground that there are no appropratons for the
property earer taken and protaby used. We condemn n the
strongest possbe terms the cavaer atttude of government omcas
who adopt such a despotc and rresponsbe stance.
'actan #$ <rgello 1,- S%RA 1*1
Important .oints Faure by an exproprator to reconvey to the owner
the property despte return of the purchase prce therefor, pursuant
to a Compromse Agreement, amounts to expropraton wthout |ust
compensaton. Contrary to pettoners DPWHs and ATOs undertakngs n
the |anuary 17, 1990 Compromse Agreement, they faed to reconvey
Lot No. 913-E-3 to respondent despte her return of the purchase prce
therefor. Such faure amounts to expropraton wthout |ust
compensaton.
San RoG"e #$ Rep"!lic 13, S%RA +93
Important .oints Tme and agan, we have decared that emnent
doman cases are to be strcty construed aganst the exproprator. The
payment of |ust compensaton for prvate property taken for pubc use
s an ndspensabe requste for the exercse of the States soveregn power
of doman. Faure to observe ths requrement renders the takng
nehectua, notwthstandng the avowed pubc purpose. To dsregard
ths mtaton on the exercse of governmenta power to exproprate s to
rde roughshod over prvate rghts.
+$ 2"(icial Re#ie;
9e Hnecht #$ Ba"tista *-- S%RA 66-
Important .oints Extenson of EDSA to Roxas Bouevard to pass thru
Fernando Ren-De Pan Sts. nstead of aong Cuneta Avenue, s
arbtrary should not receive judicial approval; Reasons; Grave abuse of
dscreton of |udge n aowng the government to take mmedate
possesson of the propertes to be exproprated aong ahected streets.
'anotoc #$ 0A *1- S%RA 79
Important .oints The market vaue stated by the cty assessor aone
cannot substtute for the court's |udgment n expropraton
proceedngs. It s voatve of the due process and the emnent doman
provsons of the Consttuton to deny to a property owner the
opportunty to prove that the vauaton made by a oca assessor s
wrong or pre|udced. The statements made n tax documents by the
assessor may serve as one of the factors to be consdered but they
cannot excude or preva over a court determnaton made after expert
commssoners have examned the property and a pertnent
crcumstances are taken nto account and after the partes have had
the opportunty to fuy pead ther cases before a competent and
unbased trbuna.
The SC now rues that such sngng out of propertes does not
forecose |udca scrutny as to whether such expropraton by
egsatve act transgresses the due process and equa protecton and
|ust compensaton guarantees of the Consttuton.
Rep"!lic #$ 9e Hnecht *7, S%RA *+*
Important .oints Expropraton of ands by the government may be
undertaken not ony by vountary negotaton wth the and owners, but
aso by takng approprate court acton or by egsaton. B.P. 340
superseded the na and executory decson of the Supreme Court n
De Knecht vs. Bautsta.
Section *-. No aw mparng the obgaton of contracts sha be passed.
ome B"il(ing an( 4oan Assn$ #$ Blais(ell ,9- <S 397
Important .oints In vew of the nature of the contracts ahected --
mortgages of unquestonabe vadty -- the reef woud not be |usted
by the emergency, but woud contravene the contract cause of the
Consttuton, f t were not approprate to the emergency and granted
ony upon reasonabe condtons. The protectve power of the state, the
poce power, may be exercsed n drecty preventng the mmedate
and tera enforcement of contractua obgatons by a temporary and
condtona restrant where vta pubc nterests woud otherwse suher.
Here, the condtons upon whch the perod of redempton s extended
do not appear unreasonabe. Therefore, the Mnnesota statute does not
voate the contracts cause.
A!ella #$ 04R% *1, S%RA 140
Important .oints To come under the consttutona prohbton the
aw must ehect a change n the rghts of the partes wth reference to
each other and not wth reference to non-partes; Contract n case at
bar cannot have the ehect of annung subsequent egsaton for the
protecton of the workers.
.hil$ 8et$ Ban= Emplo&ees #$ .hil$ 8et$ Ban= *79 S%RA *+
Important .oints Non-mparment of a contract; A contract between
the government and stockhoders of the bank do not foow that t cannot
be atered wthout voaton of the mparment cause; Contract maybe
atered f t nvoves pubc nterest. Even f t be conceded that the
charter of the Bank consttutes a contract between the Government and
the stockhoders of the Bank, t woud not foow that the reatonshp
cannot be ateredvoatng the mparment cause. Ths s a too
smpstc concuson that oses sght of the vunerabty of ths "precous
tte cause," as t s caed, to the nherent powers of the the pubc
nterest demands ther exercse.
.resle& #$ BelEAir 8illage Association ,-* S%RA *3
Important .oints It s not that we are sayng that restrctve
easements, especay the easements heren n queston, are nvad or
nehectve. As far as the Be-Ar subdvson tsef s concerned,
certany, they are vad and enforceabe. But they are ke a contracts,
sub|ect to the overrdng demands, needs, and nterests of the greater
number as the State may determne n the egtmate exercse of poce
power. Our |ursdcton guarantees sanctty of contract and s sad to be
the aw between the contractng partes.
Sis=a 9e#elopment #$ :Ice of the .resi(ent ,3* S%RA 6>+
Important .oints Imparment s anythng that dmnshes the emcacy
of the contract. Pettoner argues that the reatonshp between the
partes s governed soey by the Contract to Se because sad contract
was entered nto ong before the passage of the Maceda Law (Roo, p.
7). Wthout expressy statng so, pettoners ne of argument nvokes
the non-mparment cause of the Consttuton (Art. III, Sec. 10). The
purpose of sad cause s to safeguard the ntegrty of contracts aganst
unwarranted nterference by the State. As a rue, contract shoud not
be tampered wth by subsequent aws that woud change or modfy the
rghts and obgatons of the partes.
'iners Association #$ Aactoran ,+- S%RA *--
Important .oints The State, n the exercse of ts poce power n ths
regard, may not be precuded by the consttutona restrcton on non-
mparment of contract from aterng, modfyng and amendng the
mnng eases or agreements granted under Presdenta Decree No.
463, as amended, pursuant to Executve Order No. 211. Poce power,
beng co-extensve wth the necesstes of the case and the demands of
pubc nterest, extends to a the vta pubc needs. The passage of
Executve Order No. 279 whch superseded Executve Order No. 211
provded ega bass for the DENR Secretary to carry nto ehect the
mandate of Artce XII, Secton 2 of the 1987 Consttuton.
2"are5 #$ %A ,*+ S%RA +>1
Important .oints As ong as the contract ahects the pubc wefare
one way or another so as to requre the nterference of the State, then
must the poce power be asserted, and preva, over the mparment
cause.-
But thngs are dher0ent now. More and more, the nterests of the
pubc have become nvoved n what are supposed to be st prvate
agreements, whch have as a resut been removed from the protecton
of the mparment cause. These agreements have come wthn the
embrace of the poce power, that obtrusve protector of the pubc
nterest. It s a ubqutous poceman ndeed. As ong as the contract
ahects the pubc wefare one way or another so as to requre the
nterference of the State, then must the poce power be asserted, and
preva, over the mparment cause.
A.IB #$ %A ,1, S%RA ,19
Important .oints The powers granted to the conservator of a bank,
enormous and extensve as they are, cannot extend to the post-facto
repudaton of perfected transactons, otherwse they woud nfrnge
aganst the non-mparment cause of the Consttuton.
%''A #$ .:EA ,+3 S%RA 666
Important .oints The freedom to contract s not absoute. Very, the
freedom to contract s not absoute; a contracts and a rghts are
sub|ect to the poce power of the State and not ony may reguatons
whch ahect them be estabshed by the State, but a such reguatons
must be sub|ect to change from tme to tme, as the genera we-beng
of the communty may requre, or as the crcumstances may change,
or as experence may demonstrate the necessty. And under the Cv
Code, contracts of abor are expcty sub|ect to the poce power of the
State because they are not ordnary contracts but are mpressed wth
pubc nterest.
.0B #$ :$.$ ,1, S%RA 1
Important .oints Despte the mparment cause, a contract vad at
the tme of ts executon may be egay moded or even competey
nvadated by a subsequent aw. If the aw s a proper exercse of the
poce power, t w preva over the contract. Into each contract are
read the provsons of exstng aw and, aways, a reservaton of the
poce power as ong as the agreement deas wth a matter ahectng
the pubc wefare. Such a contract, t has been hed, suhers a
congenta nrmty, and ths s ts susceptbty to change by the
egsature as a postuate of the ega order.
E"genio #$ 9rilon ,1, S%RA *-6
Important .oints P.D. 957 s to be gven retroactve ehect so as to
cover even those contracts executed pror to ts enactment n 1976. In
hs Petton before ths Court, pettoner avers that the Executve
Secretary erred n appyng P.D. 957 and n concudng that the no
deveopment of the E & S Deta Vage |usted prvate respondents
non-payment of hs amortzatons. Pettoner avers that nasmuch as
the and purchase agreements were entered nto n 1972, pror to the
ehectvty of P.D. 957 n 1976, sad aw cannot govern the transacton.
We hod otherwse, and herewth rue that respondent Executve
Secretary dd not abuse hs dscreton, and that P.D. 957 s to be gven
retroactve ehect so as to cover even those contracts executed pror to
ts enactment n 1976.
'eralco #$ .ro#ince of 4ag"na 3-6 S%RA >1-
Important .oints Contractua tax exemptons, n the rea sense of the
term and where the non-mparment cause of the Consttuton can
rghty be nvoked, are those agreed to by the taxng authorty n
contracts, such as those contaned n government bonds or
debentures, awfuy entered nto by them under enabng aws n whch
the government, actng n ts prvate capacty, sheds ts coak of
authorty and waves ts governmenta mmunty, whch contractua tax
exemptons, however, are not to be confused wth tax exemptons
granted under franchses.
4im #$ .acG"ing ,+- S%RA 6+9
Important .oints Under the "substantve due process" doctrne, a
aw may be voded when t does not reate to a egtmate end and
when t unreasonaby nfrnges on contractua and property rghts. The
grant of franchse to P|AC exposed PD No. 771 as exercse of arbtrary
power to dvest ADC of ts property rghts.
:rtigas #$ Aeati Ban= 9+ S%RA 133
Important .oints The poce power s superor to contractua
stpuatons between partes on the use of ands sod by subdvsons
even f sad condtons are annotated on the Torrens Tte. The
muncpa ordnance n queston was not exacted pursuant to the poce
power of the muncpaty of Mandauyong. Its ehect to the case at bar
s to repace the peace of a resdenta area wth the turmo of
commerce and pouton of ndustry settng back ehorts of the Metro
Mana Governor to mprove the quaty of fe.
% J ' Tim!er #$ Alcala ,>3 S%RA +-,
Important .oints Tmber censes, permts and cense agreements
are the prncpa nstruments by whch the State reguates the
utzaton and dsposton of forest resources to the end that pubc
wefare s promoted-they are not deemed contracts wthn the
purvew of the due process of aw cause.
Rep"!lic #$ Agana ,69 S%RA *
Important .oints Preferences granted to preferred stockhoders do
not gve them a en upon the property of the corporaton nor make
them credtors of the corporaton, the rght of the former beng aways
subordnate to the atter; Sharehoders, both common and preferred,
are consdered rsk takers who nvest capta n the busness and who
can ook ony to what s eft after corporate debts and abtes are
fuy pad.
.ro("cers #$ 04R% GR **7-69) 0o#em!er *6) *997
Important .oints When the conctng nterests of abor and capta
are weghed on the scaes of soca |ustce, the domnant nuence of the
atter must be counterbaanced by the sympathy and compasson the
aw must accord the underprveged worker. It bears repeatng that apart
from the non-mparment cause, what s aso we-setted, to the pont of
beng trte, s the prncpe that when the conctng nterests of abor and
capta are weghed on the scaes of soca |ustce, the domnant
nuence of the atter must be counterbaanced by the sympathy and
compasson the aw must accord the underprveged worker.