G.R. No.172551, January 15, 2014 LAND BANK OF THE PHILIPPINE , Petitioner, v. !AT"O AGRI"#LT#RAL ENTERPRI E ,Respondent.

DE"I ION BRION, J.$ We resolve the Land Bank of the Philippines (LBP s) Rule 45 petition for review on certiorari1 hallen!in! the de ision" dated #anuar$ "%, "&&% and the resolution ' dated (a$ ', "&&% of the )ourt of *ppeals ()*) in )*+,.R. -P .o. /05'&. 1his )* de ision affir2ed the de ision 4 dated #ul$ '&, "&&4 of the Re!ional 1rial )ourt, Bran h '&, -an Pa3lo )it$, a tin! as a -pe ial *!rarian )ourt (R1)+-*)), in *!rarian )ase .o. -P+&%4(&"). 1he 4a tual *nte edents Respondent 5at o *!ri ultural 6nterprises (5at o) was the re!istered owner of a "0.50'&+he tare par el of a!ri ultural land (propert$) in Baran!a$ (a3ato, )ala23a, La!una, overed 3$ 1ransfer )ertifi ate of 1itle .o. 1+474%5.5 8n *pril '&, 1777,% the !overn2ent pla ed the propert$ under the overa!e of its )o2prehensive *!rarian Refor2 Pro!ra2 ()*RP). Pursuant to 69e utive 8rder (6.8.) .o. 4&5,0 the LBP valued the propert$ at P1,1"%,1'"./7. / 5at o did not find this valuation a epta3le and thus elevated the 2atter to the :epart2ent of *!rarian Refor2 (:*R) Provin ial *!rarian Refor2 *d;udi ator (P*R*:) of -an Pa3lo )it$, whi h then ondu ted su22ar$ ad2inistrative pro eedin!s for the deter2ination of ;ust o2pensation. 7 1he P*R*: o2puted the value of the propert$ at P1%,54',/&&.&&<1& it used the propert$s urrent 2arket value (as shown in the ta9 de laration 11 that 5at o su32itted) and applied the for2ula =(> 9 ".= 1he P*R*: noted that the LBP did not present an$ verified or authenti do u2ent to 3a k up its o2putation< hen e, it 3rushed aside the LBPs valuation. 1he LBP did not 2ove to re onsider the P*R*:s rulin!. ?nstead, it filed with the R1)+-*) a petition for the ;udi ial deter2ination of ;ust o2pensation. 1" 1he R1)+-*)s :e ision 1he R1)+-*) fi9ed the ;ust o2pensation for the propert$ at P"&&.&& per s@uare 2eter.1' 1he R1)+ -*) arrived at this valuation 3$ adoptin! the valuation set 3$ the R1) of )ala23a )it$, Bran h '5 (Bran h '5) in )ivil )ase .o. "'"%+7%+), 14 whi h, in turn, adopted the valuation that the R1) of )ala23a )it$, Bran h '% (Bran h '%) arrived at in )ivil )ase .o. ""57+75+) 15 ( olle tivel$, ivil ases). 1he R1)+-*) did not !ive wei!ht to the LBPs eviden e in ;ustif$in! its valuation, pointin! out that the LBP failed to prove that it o2plied with the pres ri3ed pro edure and likewise failed to onsider the valuation fa tors provided in -e tion 10 of the )o2prehensive *!rarian Refor2 Law of 17// ()*RL).1% 1he R1)+-*) su3se@uentl$ denied the LBPs 2otion for re onsideration. 10 1he LBP appealed to the )*.1/ 1he )*s Rulin! 1he )* dis2issed the LBPs appeal.17 -i!nifi antl$, it did not find the LBPs assi!ned errorsAthe R1)+ -*)s relian e on the valuation 2ade 3$ Bran hes '5 and '% in the ivil asesAto 3e persuasive. 4irst, a ordin! to the )*, the par els of land in the ivil ases were the ver$ sa2e properties in the

appealed a!rarian ase. -e ond, Bran h '%s valuation was 3ased on the report of the dul$ appointed o22issioners and was arrived at after proper land inspe tion. *s the deter2ination of ;ust o2pensation is essentiall$ a ;udi ial fun tion, the )* thus affir2ed the R1)+-*)s valuation whi h was founded on fa tual and le!al 3ases. 1he LBP filed the present petition after the )* denied its 2otion for re onsideration"& in the )*s (a$ ', "&&% resolution. "1 1he Petition 1he LBP ar!ues in the present petition that the )* erred when it affir2ed the R1)+-*)s rulin! that fi9ed the ;ust o2pensation for the propert$ 3ased on the valuation set 3$ Bran hes '5 and '%. "" 1he LBP pointed out that the propert$ in the present ase was e9propriated pursuant to its a!rarian refor2 pro!ra2< in ontrast, the land su3;e t of the ivil ases was e9propriated 3$ the .ational Power )orporation (.*P8)8R) for industrial purposes. 1he LBP added that in adoptin! the valuation fi9ed 3$ Bran hes '5 and '%, the R1)+-*) o2pletel$ disre!arded the fa tors enu2erated in -e tion 10 of R.*. .o. %%50 and the !uidelines and pro edure laid out in :*R *8 5+7/. 4inall$, the LBP 2aintains that it did not en roa h on the R1)+-*)s prero!ative when it fi9ed the valuation for the propert$ as it onl$ followed -e tion 10 of R.*. .o. %%50 and :*R *8 5+7/, and 2erel$ dis har!ed its 2andate under 6.8. .o. 4&5. 1he )ase for the Respondent 5at o ar!ues that the R1)+-*) orre tl$ fi9ed the ;ust o2pensation for its propert$ at P"&&.&& per s@uare 2eter."' ?t points to several reasons for its position. 4irst, the R1)+-*)s valuation was not onl$ 3ased on the valuation fi9ed 3$ Bran h '% (as adopted 3$ Bran h '5)< it was also 3ased on the propert$s 2arket value as stated in the urrent ta9 de laration that it presented in eviden e 3efore the R1)+-*). -e ond, the R1)+-*) onsidered the eviden e of 3oth parties< unfortunatel$ for the LBP, the R1)+-*) found its eviden e wantin! and in total disre!ard of the fa tors enu2erated in -e tion 10 of R.*. .o. %%50. *nd third, the R1)+-*) onsidered all of the fa tors enu2erated in -e tion 10 when it set the propert$s value at P"&&.&& per s@uare 2eter. Pro edurall$, 5at o lai2s that the present petitions issues and ar!u2ents are purel$ fa tual and the$ are not allowed in a petition for review on certiorari and the LBP did not point to an$ spe ifi error that the )* o22itted when it affir2ed the R1)+-*)s de ision. 1he ?ssue Based on the parties su32issions, onl$ a sin!le issue is 3efore us,i.e., the @uestion of whether the R1)+-*)s deter2ination of ;ust o2pensation for the propert$ was proper. 1he )ourts Rulin! Preli2inar$ onsiderationsB fa tual+issue+3ar rule< issues raised are not fa tual *s a !eneral rule, the )ourts ;urisdi tion in a Rule 45 petition is li2ited to the review of pure @uestions of law."4 * @uestion of law arises when the dou3t or differen e e9ists as to what the law is on a ertain state of fa ts. .e!ativel$ put, Rule 45 does not allow the review of @uestions of fa t. * @uestion of fa t e9ists when the dou3t or differen e arises as to the truth or falsit$ of the alle!ed fa ts. 1he test in deter2inin! whether a @uestion is one of law or of fa t is =whether the appellate ourt an deter2ine the issue raised without reviewin! or evaluatin! the eviden e, in whi h ase, it is a @uestion of law.="5 *n$ @uestion that invites ali3ration of the whole eviden e, as well as their relation to ea h other and to the whole, is a @uestion of fa t and thus pros ri3ed in a Rule 45 petition.

1he LBP essentiall$ @uestions in the present petition the R1)+-*)s adoption of the valuation 2ade 3$ Bran h '% in fi9in! the ;ust o2pensation for the propert$. 1he LBP asks the @uestionB was the ;ust o2pensation fi9ed 3$ the R1)+-*) for the propert$, whi h was 3ased solel$ on Bran h '%s valuation, deter2ined in a ordan e with lawC We find the presented issue learl$ one of law. Resolution of this @uestion an 3e 2ade 3$ 2ere in@uir$ into the law and ;urispruden e on the 2atter, and does not re@uire a review of the parties eviden e. We, therefore, disa!ree with 5at o on this point as we find the present petition o2pliant with the Rule 45 re@uire2ent. 1he deter2ination of ;ust o2pensation is essentiall$ a ;udi ial fun tion that the #udi iar$ e9er ises within the para2eters of the law. 1he deter2ination of ;ust o2pensation is funda2entall$ a ;udi ial fun tion. "% -e tion 50 of R.*. .o. %%50"0 e9pli itl$ vests the R1)+-*) the ori!inal and e9 lusive power to deter2ine ;ust o2pensation for lands under )*RP overa!e. 1o !uide the R1)+-*) in the e9er ise of its fun tion, -e tion 10 of R.*. .o. %%50 enu2erates the fa tors re@uired to 3e taken into a ount to orre tl$ deter2ine ;ust o2pensation. 1he law (under -e tion 47 of R.*. .o. %%50"/ ) likewise e2powers the :*R to issue rules for its i2ple2entation. 1he :*R thus issued :*R *8 5+7/ in orporatin! the laws listed fa tors in deter2inin! ;ust o2pensation into a 3asi for2ula that ontains the details that take these fa tors into a ount. 1hat the R1)+-*) 2ust onsider the fa tors 2entioned 3$ the law (and onse@uentl$ the :*Rs i2ple2entin! for2ula) is not a novel on ept."7 ?n Land Bank of the Philippines v. -ps. Banal, '& we said that the R1)+-*) 2ust onsider the fa tors enu2erated under -e tion 10 of R.*. .o. %%50, as translated into a 3asi for2ula 3$ the :*R, in deter2inin! ;ust o2pensation. We stressed the R1)+ -*)s dut$ to appl$ the :*R for2ula in deter2inin! ;ust o2pensation in Land3ank of the Philippines v. )elada'1 and reiterated this sa2e rulin! in Land Bank of the Philippines v. Li2, '" Land Bank of the Philippines v. Lu iano,'' and Land Bank of the Philippines v. )olarina, '4 to na2e a few. ?n the re ent ase of Land Bank of the Philippines v. Done$ o23 4ar2s )orporation, '5 we a!ain affir2ed the need to appl$ -e tion 10 of R.*. .o. %%50 and :*R *8 5+7/ in ;ust o2pensation ases. 1here, we onsidered the )* and the R1) in !rave error when the$ opted to o2e up with their own 3asis for valuation and o2pletel$ disre!arded the :*R for2ula. 1he need to appl$ the para2eters re@uired 3$ the law annot 3e dou3ted< the :*Rs ad2inistrative issuan es, on the other hand, partake of the nature of statutes and have in their favor a presu2ption of le!alit$. '% Enless ad2inistrative orders are de lared invalid or unless the ases 3efore the2 involve situations these ad2inistrative issuan es do not over, the ourts 2ust appl$ the2. '0 ?n other words, in the e9er ise of the )ourts essentiall$ ;udi ial fun tion of deter2inin! ;ust o2pensation, the R1)+-*)s are not !ranted unli2ited dis retion and 2ust onsider and appl$ the R.*. .o. %%50+enu2erated fa tors and the :*R for2ula that refle t these fa tors. 1hese fa tors and for2ula provide the unifor2 fra2ework or stru ture for the o2putation of the ;ust o2pensation for a propert$ su3;e t to a!rarian refor2. 1his unifor2 s$ste2 will ensure that the$ do not ar3itraril$ fi9 an a2ount that is a3surd, 3aseless and even ontradi tor$ to the o3;e tives of our a!rarian refor2 laws as ;ust o2pensation. 1his s$ste2 will likewise ensure that the ;ust o2pensation fi9ed represents, at the ver$ least, a lose appro9i2ation of the full and real value of the propert$ taken that is fair and e@uita3le for 3oth the far2er+3enefi iaries and the landowner. When a tin! within the para2eters set 3$ the law itself, the R1)+-*)s, however, are not stri tl$ 3ound to appl$ the :*R for2ula to its 2inute detail, parti ularl$ when fa ed with situations that do not warrant the for2ulas stri t appli ation< the$ 2a$, in the e9er ise of their dis retion, rela9 the for2ulas appli ation to fit'/ the fa tual situations 3efore the2.'7 1he$ 2ust, however, learl$ e9plain the reason for an$ deviation fro2 the fa tors and for2ula that the law and the rules have provided. 4&

1he situation where a deviation is 2ade in the e9er ise of ;udi ial dis retion should at all ti2es 3e distin!uished fro2 a situation where there is utter and 3latant disre!ard of the fa tors spelled out 3$ law and 3$ the i2ple2entin! rules. 4or in su h a ase, the R1)+-*)s a tion alread$ a2ounts to !rave a3use of dis retion for havin! 3een taken outside of the onte2plation of the law. 41 ,onFales v. -olid )e2ent )orporation 4" tea hes us that the use of the wron! onsiderations 3$ the rulin! tri3unal in de idin! the ase or a parti ular 2atter in issue a2ounts to !rave a3use of dis retion. ?n ,onFales, the )* reversed the .LR)s rulin! that ordered the pa$2ent of interest on the total 2onetar$ award. ?n reversin! this )* rulin! and reinstatin! the .LR)s award of interest, the )ourt pointed out that the )* relied solel$ on the do trine of i22uta3ilit$ of ;ud!2ents, a onsideration that was o2pletel$ erroneous parti ularl$ in li!ht of the other attendant and relevant fa tors, i.e., the law on the le!al interests that final orders and rulin!s on for3earan e of 2one$ should 3ear, whi h the )* utterl$ i!nored. * ordin!l$, the )ourt onsidered the )* in !rave a3use of dis retion as it used the wron! onsiderations and there3$ a ted outside the onte2plation of the law. 1his use of onsiderations that were o2pletel$ outside the onte2plation of the law is the pre ise situation we find in the present ase, as full$ e9plained 3elow. 1he rules allow the ourts to take ;udi ial noti e of ertain fa ts< the R1)+-*)s valuation is erroneous 1he takin! of ;udi ial noti e is a 2atter of e9pedien $ and onvenien e for it fulfills the purpose that the eviden e is intended to a hieve, and in this sense, it is e@uivalent to proof. 4' ,enerall$, ourts are not authoriFed to =take ;udi ial noti e of the ontents of the re ords of other ases even when said ases have 3een tried or are pendin! in the sa2e ourt or 3efore the sa2e ;ud!e.= 44 1he$ 2a$, however, take ;udi ial noti e of a de ision or the fa ts prevailin! in another ase sittin! in the sa2e ourt ifB (1) the parties present the2 in eviden e, a3sent an$ opposition fro2 the other part$< or (") the ourt, in its dis retion, resolves to do so. 45 ?n either ase, the ourts 2ust o3serve the lear 3oundar$ provided 3$ -e tion ', Rule 1"7 of the Rules of )ourt. We note that 5at o offered in eviden e opies of the de isions in the ivil ases, 4% whi h offer the LBP opposed.40 1hese were dul$ noted 3$ the ourt. 4/ 6ven assu2in!, however, that the *pril "1, "&&4 order47 of the R1)+-*) (that noted 5at os offer in eviden e and the LBPs opposition to it) onstitutes suffi ient o2plian e with the re@uire2ent of -e tion ', Rule 1"7 of the Rules of )ourt, still we find the R1)+-*)s valuationA3ased on Bran h '%s previous rulin!Ato 3e le!all$ erroneous. 1. 1he R1)+-*) full$ disre!arded -e tion 10 of R.*. .o. %%50 and :*R *8 5+7/ and thus a ted outside the onte2plation of the law. -e tion 10 of R.*. .o. %%50 readsB -e tion 10. :eter2ination of #ust )o2pensation.A?n deter2inin! ;ust o2pensation, the ost of a @uisition of the land, the urrent value of like properties, its nature, a tual use and in o2e, the sworn valuation 3$ the owner, the ta9 de larations, and the assess2ent 2ade 3$ !overn2ent assessors shall 3e onsidered. 1he so ial and e ono2i 3enefits ontri3uted 3$ the far2ers and the far2workers and 3$ the ,overn2ent to the propert$ as well as the non+pa$2ent of ta9es or loans se ured fro2 an$ !overn2ent finan in! institution on the said land shall 3e onsidered as additional fa tors to deter2ine its valuation. While :*R *8 5+7/5& pertinentl$ providesB *. 1here shall 3e one 3asi for2ula for the valuation of lands overed 3$ >8- or )*B L> G ().? 9 &.%) H ()- 9 &.') H ((> 9 &.1) WhereB

L> G Land >alue ).? G )apitaliFed .et ?n o2e )- G )o2para3le -ales (> G (arket >alue per 1a9 :e laration 1he a3ove for2ula shall 3e used if all three fa tors are present, relevant, and appli a3le. *1. When the )- fa tor is not present and ).? and (> are appli a3le, the for2ula shall 3eB L> G ().? 9 &.7) H ((> 9 &.1) *". When the ).? fa tor is not present, and )- and (> are appli a3le, the for2ula shall 3eB L> G ()- 9 &.7) H ((> 9 &.1) *'. When 3oth the )- and ).? are not present and onl$ (> is appli a3le, the for2ula shall 3eB L> G (> 9 " ?n no ase shall the value of idle land usin! the for2ula (> 9 " e9 eed the lowest value of land within the sa2e estate under onsideration or within the sa2e 3aran!a$ or 2uni ipalit$ (in that order) approved 3$ LBP within one (1) $ear fro2 re eipt of lai2folder. *fter onsiderin! these fa tors and for2ula, we are onvin ed that the R1)+-*) o2pletel$ disre!arded the2 and si2pl$ relied on Bran h '%s valuation. 4or one, the R1)+-*) did not point to an$ spe ifi eviden e or ite the values and a2ounts it used in arrivin! at the P"&&.&& per s@uare 2eter valuation. ?t did not even onsider the propert$s 2arket value 3ased on the urrent ta9 de laration that 5at o insists the R1)+-*) onsidered in addition to Bran h '%s valuation. *ssu2in! that the R1)+-*) onsidered the propert$s 2arket value (whi h, a!ain, we find that it did not), this alone will not suffi e as 3asis, unless ;ustified under ?te2 ??.*.' of :*R *8 5+7/ (as provided a3ove). 1hen too, it did not indi ate the for2ula that it used in arrivin! at its valuation or whi h led it to 3elieve that Bran h '%s valuation was appli a3le to this ase. Lastl$, the R1)+-*) did not ondu t an independent assess2ent and o2putation usin! the onsiderations re@uired 3$ the law and the rules. 1o 3e e9a t, the R1)+-*) 2erel$ relied on Bran h '%s valuation as it found the LBPs eviden e on the 2atter of ;ust o2pensation inade@uate. While indeed we a!ree that the eviden e presented 3$ the LBP was inade@uate and did not also onsider the le!all$ pres ri3ed fa tors and for2ula, the R1)+-*) still le!all$ erred in solel$ rel$in! on 5at os eviden e 51 whi h we find e@uall$ irrelevant and off+ tan!ent to the fa tors enu2erated in -e tion 10 of R.*. .o. %%50. ". 1he valuation fi9ed 3$ Bran hes '5 and '% was inappli a3le to the propert$ )ivil )ase .o. "'"%+7%+),5" de ided 3$ Bran h '5, and )ivil )ase .o. ""57+75+),5' de ided 3$ Bran h '%, were 3oth e2inent do2ain ases initiated 3$ the .*P8)8R under the power !ranted to it 3$ )o22onwealth * t ().*.) .o. 1"&, 54 as a2ended 3$ R.*. .o. %'75,55 i.e., to a @uire propert$ or ease2ent of ri!ht of wa$. Ender these laws, the .*P8)8R was tasked to arr$ out the state poli $ of providin! ele tri it$ throu!hout the Philippines, spe ifi all$, =to undertake the develop2ent of h$droele tri !eneration of power and the produ tion of ele tri it$ fro2 nu lear, !eother2al and other sour es, as well as the trans2ission of ele tri power on a nationwide 3asis.=5%

?n its de ision in )ivil )ase .o. ""57+75+), Bran h '% a ordin!l$ re o!niFed the .*P8)8Rs authorit$ to enter the propert$ of the defendant ,P :evelop2ent )orporation and to a @uire the =ease2ent of ri!ht of wa$= in the e9er ise of its powers. 1hus, in disposin! of the ase, Bran h '% adopted the re o22endation of the appointed o22issioners and ordered the .*P8)8R to pa$ ease2ent fee of P"&.&& per s@uare 2eter. -i2ilarl$ re o!niFin! this authorit$ of .*P8)8R, Bran h '5 in )ivil )ase .o. "'"%+7%+) likewise ordered .*P8)8R to pa$ ease2ent fee of P"&.&& per s@uare 2eter. 6videntl$, the ivil ases were not 2ade under the provisions of the )*RL nor for a!rarian refor2 purposes, as enun iated under R.*. .o. %%50. 50 ?n e9er isin! the power vested in it 3$ the provisions of ).*. .o. 1"& (as a2ended), the .*P8)8R did not seek to a @uire and distri3ute lands to far2ers and re!ular far2workers< the .*P8)8R sou!ht ease2ent of ri!ht of wa$ to trans2it ele tri power as it was tasked to. We need not delve into the fa tors that Bran hes '5 and '% onsidered in the ivil ases. B$ si2pl$ lookin! at the e9propriatin! 3od$ (.*P8)8R) and the law !overnin! the e9propriations 2ade, we are onvin ed that the valuation fi9ed 3$ Bran h '% is inappli a3le to the present ase. * o2parison of the re@uired para2eters and !uidelines used alone de2onstrates the disparit$. *lso, we point out that the R1)+-*) adopted Bran h '%s valuation without an$ @ualifi ation or ondition. 5et, in disposin! of the present ase, the ;ust o2pensation that it fi9ed for the propert$ lar!el$ differed fro2 the for2er. .ote that Bran h '% fi9ed a valuation of P"&.&& per s@uare 2eter<5/while the R1)+-*), in the present ase, valued the propert$ at P"&&.&& per s@uare 2eter.57-tran!el$, the R1)+-*) did not offer an$ e9planation nor point to an$ eviden e, fa t or parti ular that ;ustified the o3vious dis repan $ 3etween these a2ounts. Lastl$, in as ertainin! ;ust o2pensation, the fair 2arket value of the e9propriated propert$ is deter2ined as of the ti2e of takin!. %& 1he =ti2e of takin!= refers to that ti2e when the -tate deprived the landowner of the use and 3enefit of his propert$, as when the -tate a @uires title to the propert$%1 or as of the filin! of the o2plaint, per -e tion 4, Rule %0 of the Rules of )ourt. %" 1he de ision in )ivil )ase .o. ""57+75+), whi h pe!!ed the valuation at P"&.&& per s@uare 2eter, was 2ade in 1770. 1he re ord did not dis lose when title to the land su3;e t of that ase was transferred to the -tate. We an safel$ assu2e, however, that the =takin!= was 2ade in 1770 (the date Bran h '% issued its de ision) or at the ti2e of the filin! of the o2plaint, whi h lo!i all$ was prior to 1770. 1he R1)+-*), in the present ase, rendered its de ision in "&&4< the LBP filed the petition for ;udi ial deter2ination of ;ust o2pensation in "&&". 83viousl$, the =takin!= of the propert$ ould not have 3een 2ade an$ earlier than "&&"< otherwise, the parties would have pointed these out. Between 1770 in )ivil )ase .o. ""57+75+) and the earliest takin! in "&&" in this ase is a differen e of 5 $earsAa si!nifi ant !ap in the 2atter of valuation sin e the lands involved are not in the hinterlands, 3ut in the rapidl$ industrialiFin! )ala23a, La!una. Ender these ir u2stan esAi.e., the insuffi ien $ of the eviden e presented 3$ 3oth the LBP and 5at o on the issue of ;ust o2pensation + the 2ore ;udi ious approa h that the R1)+-*) ould have taken was to e9er ise the authorit$ !ranted to it 3$ -e tion 5/ of R.*. .o. %%50, rather than si2pl$ adopt Bran h '%s valuation. Ender -e tion 5/%' of R.*. .o. %%50, the R1)+-*) 2a$ appoint one or 2ore )o22issioners to as ertain and report to it the fa ts ne essar$ for the deter2ination of the ;ust o2pensation for the propert$. Enfortunatel$, the R1)+-*) did not avail of this opportunit$, with disastrous results for the parties in li!ht of the ti2e !ap 3etween now and the ti2e the R1)+-*) de ision was 2ade in "&&4. We annot help 3ut hi!hli!ht the attendant dela$ as the R1)+-*) o3viousl$ erred in a 2anner that we annot now re2ed$ at our level. 1he R1)+-*) erred and effe tivel$ a3used its dis retion 3$ fi9in! the ;ust o2pensation for the propert$ 3ased solel$ on the valuation fi9ed 3$ Bran hes '5 and '%A

onsiderations that we find were o2pletel$ irrelevant and 2ispla ed. 1his is an error that now re@uires fresh deter2ination of ;ust o2pensation a!ain at the R1)+-*) level. *s a final note and larifi ator$ re2inder, we a!ree that the LBP is pri2aril$ har!ed with deter2inin! land valuation and o2pensation for all private lands a @uired for a!rarian refor2 purposes. %4 But this deter2ination is onl$ preli2inar$. 1he landowner 2a$ still take the 2atter of ;ust o2pensation to the ourt for final ad;udi ation.%5 1hus, we larif$ and reiterateB the ori!inal and e9 lusive ;urisdi tion over all petitions for the deter2ination of ;ust o2pensation under R.*. .o. %%50 rests with the R1)+ -*).%% But, in its deter2ination the R1)+-*) 2ust take into onsideration the fa tors laid down 3$ law and the pertinent :*R re!ulations. Re2and of the ase )onsiderin! that 3oth parties failed to addu e satisfa tor$ eviden e of the propert$ s value at the ti2e of takin!, we dee2 it pre2ature to 2ake a final deter2ination of the 2atter in ontrovers$. We are not a trier of fa ts and we annot re eive new eviden e fro2 the parties to aid the2 in the pro2pt resolution of this ase. We are thus o2pelled to re2and the ase to the R1)+-*) for the re eption of eviden e and the deter2ination of ;ust o2pensation, with a autionar$ re2inder for the proper o3servan e of the fa tors under -e tion 10 of R.*. .o. %%50 and the appli a3le :*R re!ulations. ?n its deter2ination, the R1)+-*) 2a$ e9er ise the authorit$ !ranted to it 3$ -e tion 5/ of R.*. .o. %%50. WD6R648R6, in view of these onsiderations, we here3$ ,R*.1 the petition. * ordin!l$, we R6>6R-6 and -61 *-?:6 the de ision dated #anuar$ "%, "&&% and the resolution dated (a$ ', "&&% of the )ourt of *ppeals in )*+,.R. -P .o. /05'&, and R6(*.: *!rarian )ase .o. -P+&%4(&") to the Re!ional 1rial )ourt of -an Pa3lo )it$, Bran h '&, for its deter2ination of ;ust o2pensation under the ter2s of -e tion 10 of Repu3li * t .o. %%50 and :epart2ent of *!rarian Refor2 *d2inistrative 8rder .o. 5, series of 177/, as a2ended. .o osts. O ORDERED. ART#RO D. BRION Associate Justice %E "ON"#R$ ANTONIO T. "ARPIO Associate Justice Chairperson &ARIANO ". DEL "A TILLO Associate Justice JO E PORT#GAL PERE' Associate Justice

E TELA &. PERLA (BERNABE Associate Justice ATTE TATION

? attest that the on lusions in the a3ove :e ision had 3een rea hed in onsultation 3efore the ase was assi!ned to the writer of the opinion of the )ourts :ivision. ANTONIO T. "ARPIO Associate Justice Chairperson, Second Division

"ERTIFI"ATION Pursuant to -e tion 1', *rti le >??? of the )onstitution, and the :ivision )hairperson s *ttestation, ? ertif$ that the on lusions in the a3ove :e ision had 3een rea hed in onsultation 3efore the ase was assi!ned to the writer of the opinion of the )ourts :ivision. &ARIA LO#RDE P. A. Chief Justice ERENO

Endnotes$

:ated #une "&, "&&% and filed on #une "", "&&%< rollo, pp. "'+%1.

Penned 3$ *sso iate #usti e #ose L. -a3io, #r., and on urred in 3$ *sso iate #usti es #ose ). (endoFa and *rturo ,. 1a$a!< id. at %"+01.
" '

?d. at 0'+04. Penned 3$ #ud!e ,re!orio 1. >illanueva< id. at 4//+5&&. ?d. at "44.

1hrou!h a -e ond .oti e of )overa!e dated *pril '&, 1777< id. at "4'. 5at o denies re eivin! this -e ond .oti e of )overa!e< id. at %'.
%

*pproved on #une 14, 177&, entitled =>6-1?., ?. 1D6 L*.: B*.I 84 1D6 PD?L?PP?.6- 1D6 PR?(*R5 R6-P8.-?B?L?15 18 :616R(?.6 1D6 L*.: >*LE*1?8. *.: )8(P6.-*1?8. 48R *LL L*.:- )8>6R6: E.:6R R6PEBL?) *)1 .8. %%50, I.8W. *- 1D6 )8(PR6D6.-?>6 *,R*R?*. R648R( L*W 84 17//.= ?ts -e tion 1 providesB -e tion 1. 1he Land Bank of the Philippines shall 3e pri2aril$ responsi3le for the deter2ination of the land valuation and o2pensation for all private lands suita3le for a!ri ulture under either the >oluntar$ 8ffer to -ell (>8-) or )o2pulsor$ * @uisition ()*) arran!e2ent as !overned 3$ Repu3li * t .o. %%50. 1he :epart2ent of *!rarian Refor2 shall 2ake use of the deter2ination of the land valuation and o2pensation 3$ the Land Bank of the Philippines, in the perfor2an e of its fun tions.
0

)lai2s >aluation and Pro essin! 4or2 approved on -epte23er 4, "&&&< rollo, pp. "04+"0/. 1he LBP lai2ed that it used the !uidelines and pro edure set out under :*R *d2inistrative 8rder .o. %, -eries of 177" (:*R *8 %+7"), .o. 11, -eries of 1774 and .o. 5, -eries of 177/.
/ 7

:*R*B )ase .o. >+&4&'+&&&%+&1.

:e ision dated :e e23er "/, "&&1, penned 3$ Provin ial *d;udi ator >ir!ilio (. -orita< rollo, pp. 4/%+4/0.
1& 11

?d. at "&/. 8n 4e3ruar$ %, "&&"< id. at 101+10'.

1"

1'

-upra note 4. 8rder dated *u!ust "7, "&&1, penned 3$ #ud!e Ro2eo ). de Leon< rollo, pp. "71+"7". #ud!2ent dated #ul$ "', 1770, penned 3$ #ud!e .or3erto 5. ,eraldeF< id. at "7'+"75. Repu3li * t (R.*.) .o. %%50 whi h took effe t on #une 15, 17//. Rollo, pp. 151+15%< 8rder dated 8 to3er "%, "&&4, pp. 147+15& 4iled under Rule 4" of the Rules of )ourt< id. at 7/+1'5. -upra note ". Rollo, pp. '0'+'/". -upra note '. -upra note 1. Rollo, pp. 4&&+41&. -e tion 1, Rule 45 of the Rules of )ourt providesB

14

15

1%

10

1/

17

"&

"1

""

"'

"4

-e tion 1. 4ilin! of petition with -upre2e )ourt.A* part$ desirin! to appeal 3$ certiorari fro2 a ;ud!2ent or final order or resolution of the )ourt of *ppeals, the -andi!an3a$an, the Re!ional 1rial )ourt or other ourts whenever authoriFed 3$ law, 2a$ file with the -upre2e )ourt a verified petition for review on certiorari. 1he petition shall raise onl$ @uestions of law whi h 2ust 3e distin tl$ set forth. Jitali s suppliedK 1on!onan Doldin!s and :evelop2ent )orporation v. 6s aLo, #r., ,.R. .o. 17&774, -epte23er 0, "&11, %50 -)R* '&%, '14, itin! Repu3li of the Philippines v. (ala3anan, ,.R. .o. 1%7&%0, 8 to3er %, "&1&, %'" -)R* ''/< and )ando v. -ps. 8laFo, 540 Phil. %'&, %'% ("&&0).
"5

Land3ank of the Philippines v. )elada, 515 Phil 4%0, 400 ("&&%)< Land Bank of the Philippines v. 6s andor, ,.R. .o. 101%/5, 8 to3er 11, "&1&, %'" -)R* 5&4, 51"< and Deirs of LorenFo and )ar2en >idad v. Land Bank of the Philippines, ,.R. .o. 1%%4%1, *pril '&, "&1&, %17 -)R* %&7, %"5+%"7.
"% "0

1he pertinent portion of -e tion 50 of R.*. .o. %%50 readsB

-e tion 50. -pe ial #urisdi tion.A1he -pe ial *!rarian )ourts shall have ori!inal and e9 lusive ;urisdi tion over all petitions for the deter2ination of ;ust o2pensation to landowners, and the prose ution of all ri2inal offenses under this * t. 1he Rules of )ourt shall appl$ to all pro eedin!s 3efore the -pe ial *!rarian )ourts, unless 2odified 3$ this * t. Je2phasis ours, itali s suppliedK
"/

-e tion 47 of R.*. .o. %%50 readsB

-e tion 47. Rules and Re!ulations.A1he P*R) and the :*R shall have the power to issue rules and re!ulations, whether su3stantive or pro edural, to arr$ out the o3;e ts and purposes of this * t. -aid rules shall take effe t ten (1&) da$s after pu3li ation in two (") national newspapers of !eneral ir ulation. Jitali s suppliedK
"7

-ee Land3ank of the Philippines v. )elada, supra note "%, at 407.

'&

40/ Phil 0&1, 0&7+01& ("&&4). -upra note "%, at 407< itali s ours. ,.R. .o. 101741, *u!ust ", "&&0, 5"7 -)R* 1"7, 1'4+1'%. ,.R. .o. 1%54"/, .ove23er "5, "&&7, %&5 -)R* 4"%, 4'4+4'%. ,.R. .o. 10%41&, -epte23er 1, "&1&, %"7 -)R* %14, %"4+%'". ,.R. .o. 1%77&', 4e3ruar$ "7, "&1", %%0 -)R* "55, "%/+"01. Land3ank of the Philippines v. )elada, supra note "%, at 407. ?3id.

'1

'"

''

'4

'5

'%

'0

-ee Land Bank of the Philippines v. Deirs of (a9i2o Pu$at, ,.R. .o. 105&55, #une "0, "&1", %05 -)R* "'', "5&< and Land Bank of the Philippines v. Bienvenido )astro, ,.R. .o. 1/71"5, *u!ust "/, "&1'.
'/

1his view is shared 3$ and enun iated in Land Bank of the Philippines v. Bienvenido )astro, supra, itin! Land Bank of the Philippines v. )hi o, ,.R. .o. 1%/45', (ar h 1', "&&7, 5/1 -)R* ""%, "4'< *po 4ruits )orporation v. )ourt of *ppeals, ,.R. .o. 1%4175, :e e23er 17, "&&0, 541 -)R* 110, 1'1+1'".
'7

-ee Land Bank of the Philippines v. Bienvenido )astro, supra note '/, wherein the )ourt found the R1)+-*) in reversi3le error 3e ause of, a2on! other thin!s, the =une9plained disre!ard for the !uide ad2inistrative for2ula, ne!le tin! su h fa tors as apitaliFed net in o2e, o2para3le sales, and 2arket value per ta9 de laration.=
4&

*ldovino, #r. v. )o22ission on 6le tions, ,.R. .o. 1/4/'%, :e e23er "', "&&7, %&7 -)R* "'4< ,onFales v. -olid )e2ent )orporation, ,.R. .o. 17/4"', 8 to3er "', "&1", %/4 -)R* '44< and Pe son v. )o22ission on 6le tions, ,.R. .o. 1/"/%5, :e e23er "4, "&&/, 505 -)R* %'4.
41

-ee also Land Bank of the Philippines v. 6s andor, supra note "%, at 515, itin! Land Bank of the Philippines v. Barrido, ,.R. .o. 1/'%//, *u!ust 1/, "&1&, %"/ -)R* 454. Repu3li v. -andi!an3a$an (4ourth :ivision), ,.R. .o. 15"'05, :e e23er 1', "&11, %%" -)R* 15".
4"

-upra. Lee v. Land Bank of the Philippines, ,.R. .o. 10&4"", (ar h 0, "&&/, 54/ -)R* 5", 5/. Land Bank of the Philippines v. -ps. Banal, supra note '&, at 01'.

4'

44

Lee v. Land Bank of the Philippines, supra note 4', at 5/, itin! 1CBoli *!roC?ndustrial :evelop2ent, ?n . v. -olipapsi, 44" Phil. 477, 51' ("&&")< and Land Bank of the Philippines v. -ps. Banal, supra note '&, at 01'.
45 4%

5at os 4or2al 8ffer of 6viden e dated (ar h "4, "&&4< rollo, pp. "/'+"/%.

LBPs 8ppositionM)o22ents to the 4or2al 8ffer of 6viden e of Respondent 5at o *!ri ultural 6nterprises, ?n . dated *pril 1", "&&4 to 5at os 4or2al 8ffer of 6viden e< id. at "70+"77.
40

4/

?d. at '&&. ?d. at '&&.

47

1he followin! portions of ?te2 ??. of :*R *8 5+7/ provides the for2ula for o2putin! the fa tors =)apitaliFed .et ?n o2e ().?),= =)o2para3le -ales ()-)= and =(arket >alue per 1a9 :e laration ((>),= na2el$B
5&

=B. )apitaliFed .et ?n o2e ().?)A1his shall refer to the differen e 3etween the !ross sales (*,P 9 -P) and total ost of operations ()8) apitaliFed at 1"N. 69pressed in e@uation for2B (*,P 9 -P) + )8 .1"

).? G

WhereB ).?G (*,P9-P) + )8 .1" *,PG *vera!e ,ross Produ tion orrespondin! to the latest availa3le 1" 2onths !ross produ tion i22ediatel$ pre edin! the date of 4? (field investi!ation) -PG -ellin! Pri e (the avera!e of the latest availa3le 1" 2onths sellin! pri es prior to the date of re eipt of the )4 ( lai2folder) 3$ LBP for pro essin!, su h pri es to 3e se ured fro2 the :epart2ent of *!ri ulture (:*) and other appropriate re!ulator$ 3odies or, in their a3sen e, fro2 the Bureau of *!ri ultural -tatisti s. ?f possi3le, -P data shall 3e !athered for the 3aran!a$ or 2uni ipalit$ where the propert$ is lo ated. ?n the a3sen e thereof, -P 2a$ 3e se ured within the provin e or re!ion. )8 G )ost of 8perations Whenever the ost of operations ould not 3e o3tained or verified, an assu2ed net in o2e rate (.?R) of "&N shall 3e used. Landholdin!s planted to o onut whi h are produ tive at the ti2e of 4? shall ontinue to use the assu2ed .?R of 0& N. :*R and LBP shall ontinue to ondu t ;oint industr$ studies to esta3lish the appli a3le .?R for ea h rop overed under )*RP. &.1" G )apitaliFation rate 999 ). )- shall refer to an$ one or the avera!e of all the appli a3le su3+fa tors, na2el$, -1, *) and (>(B WhereB -1 G -ales 1ransa tions as defined under ?te2 )." *) G * @uisition )ost as defined under ?te2 ).' (>( G (arket >alue Based on (ort!a!e as defined under ?te2 ).4 999 :. ?n the o2putation of (arket >alue per 1a9 :e laration ((>), the 2ost re ent 1a9 :e laration (1:) and - hedule of Enit (arket >alue (-(>) issued prior to re eipt of lai2folder 3$ LBP shall 3e

onsidered. 1he Enit (arket >alue (E(>) shall 3e !rossed up fro2 the date of its effe tivit$ up to the date of re eipt of lai2folder 3$ LBP fro2 :*R for pro essin!, in a ordan e with ite2 ??.*.*.%. 5at os eviden e onsisted ofB (1) the -e retar$s )ertifi ate authoriFin! (r. *l3ert 5at o ,ar ia to represent 5at o in the ase 3efore the R1)+-*)< (") LBPs )ertifi ation showin! the LBPs deposit of the su2 of P74%,117."" and in a!rarian refor2 3onds as o2pensation for the su3;e t propert$< (') op$ of the :*R*B :e e23er "/, "&&1 de ision in :*R*B )ase .o. >+&4&'+&&&%+&1< (4) 1a9 :e laration for the su3;e t propert$ for the $ear "&&&< (5) op$ of the order dated *u!ust "7, "&&1 in )ivil )ase .o. "'"%+7%+)< and (%) op$ of the ;ud!2ent and order dated #ul$ "', 1770 and -epte23er "4, 1770, respe tivel$, in )ivil )ase .o. ""57+75+)< rollo, pp. "/'+"7%.
51 5"

-upra note 14. -upra note 15.

5'

)8((8.W6*L1D *)1 .8. 1"&A*. *)1 )R6*1?., 1D6 =.*1?8.*L P8W6R )8RP8R*1?8.,= PR6-)R?B?., ?1- P8W6R- *.: *)1?>?1?6-, *PPR8PR?*1?., 1D6 .6)6--*R5 4E.:- 1D6R648R, *.: R6-6R>?., 1D6 E.*PPR8PR?*16: PEBL?) W*16R- 48R ?1- E-6. *pproved on .ove23er ', 17'%.
54

*. *)1 R6>?-?., 1D6 )D*R16R 84 1D6 .*1?8.*L P8W6R )8RP8R*1?8.. (*pproved on -epte23er 1&, 1701) 1he pertinent provision readsB
55

999 -e . '. Powers and ,eneral 4un tions of the )orporation.A1he powers, fun tions, ri!hts and a tivities of the )orporation shall 3e the followin!B 999 (h) 1o a @uire, pro2ote, hold, transfer, sell, lease, rent, 2ort!a!e, en u23er and otherwise dispose of propert$ in ident to, or ne essar$, onvenient or proper to arr$ out the purposes for whi h the )orporation was reatedB Provided, 1hat in ase a ri!ht of wa$ is ne essar$ for its trans2ission lines, ease2ent of ri!ht of wa$ shall onl$ 3e sou!htB Provided, however, 1hat in ase the propert$ itself shall 3e a @uired 3$ pur hase, the ost thereof shall 3e the fair 2arket value at the ti2e of the takin! of su h propert$< 999 (;) 1o e9er ise the ri!ht of e2inent do2ain for the purpose of this * t in the 2anner provided 3$ law for institutin! onde2nation pro eedin!s 3$ the national, provin ial and 2uni ipal !overn2ents. Je2phases ours, itali s suppliedK
5%

-ee -e tions 1 and " of R.*. .o. %'75< partl$, the$ readB

-e tion 1. :e laration of Poli $.A)on!ress here3$ de lares that (1) the o2prehensive develop2ent, utiliFation and onservation of Philippine water resour es for all 3enefi ial uses, in ludin! power !eneration, and (") the total ele trifi ation of the Philippines throu!h the develop2ent of power fro2 all sour es to 2eet the needs of industrial develop2ent and dispersal and the needs of rural ele trifi ation are pri2ar$ o3;e tives of the nation whi h shall 3e pursued oordinatel$ and supported 3$ all instru2entalities and a!en ies of the !overn2ent, in ludin! its finan ial institutions. -e tion ". 1he .ational Power )orporation< ?ts )orporate Life< =)orporation= and =Board= :efined.A1o arr$ out the a3ove+stated poli $, spe ifi all$ to undertake the develop2ent of h$droele tri !eneration of power and the produ tion of ele tri it$ fro2 nu lear, !eother2al and other sour es, as

well as the trans2ission of ele tri power on a nationwide 3asis, the pu3li orporation reated under )o22onwealth * t .u23ered 8ne hundred twent$ and knowJnK as the =.ational Power )orporation= shall ontinue to e9ist for fift$ $ears fro2 and after the e9piration of its present orporate e9isten e. Je2phases oursK
50

-e tion " of R.*. .o. %%50 reads in partB

-e tion ". :e laration of Prin iples and Poli ies.A?t is the poli $ of the -tate to pursue a )o2prehensive *!rarian Refor2 Pro!ra2 ()*RP). 1he welfare of the landless far2ers and far2workers will re eive the hi!hest onsideration to pro2ote so ial ;usti e and to 2ove the nation toward sound rural develop2ent and industrialiFation, and the esta3lish2ent of owner ultivatorship of e ono2i +siFe far2s as the 3asis of Philippine a!ri ulture. 1o this end, a 2ore e@uita3le distri3ution and ownership of land, with due re!ard to the ri!hts of landowners to ;ust o2pensation and to the e olo!i al needs of the nation, shall 3e undertaken to provide far2ers and far2workers with the opportunit$ to enhan e their di!nit$ and i2prove the @ualit$ of their lives throu!h !reater produ tivit$ of a!ri ultural lands. 1he a!rarian refor2 pro!ra2 is founded on the ri!ht of far2ers and re!ular far2workers, who are landless, to own dire tl$ or olle tivel$ the lands the$ till or, in the ase of other far2 workers, to re eive a ;ust share of the fruits thereof. 1o this end, the -tate shall en oura!e and undertake the ;ust distri3ution of all a!ri ultural lands, su3;e t to the priorities and retention li2its set forth in this * t, havin! taken into a ount e olo!i al, develop2ental, and e@uit$ onsiderations, and su3;e t to the pa$2ent of ;ust o2pensation. 1he -tate shall respe t the ri!ht of s2all landowners, and shall provide in entives for voluntar$ land+ sharin!. Je2phases oursK
5/

Rollo, p. "75. ?d. at 147+15&.

57

Land Bank of the Philippines v. Livio o, ,.R. .o. 10&%/5, -epte23er "", "&1&, %'1 -)R* /%, 11"+ 11'.
%&

?3id., itin! *nsaldo v. 1antui o, #r., ,.R. .o. 5&140, *u!ust ', 177&, 1// -)R* '&&, in 6use3io v. Luis, ,.R. .o. 1%"404, 8 to3er 1', "&&7, %&' -)R* 50%, 5/%+5/0.
%1 %"

-e tion 4, Rule %0 of the Rules of )ourt readsB

-e tion 4. 8rder of e9propriation.A?f the o3;e tions to and the defenses a!ainst the ri!ht of the plaintiff to e9propriate the propert$ are overruled, or when no part$ appears to defend as re@uired 3$ this Rule, the ourt 2a$ issue an order of e9propriation de larin! that the plaintiff has a lawful ri!ht to take the propert$ sou!ht to 3e e9propriated, for the pu3li use or purpose des ri3ed in the o2plaint, upon the pa$2ent of ;ust o2pensation to 3e deter2ined as of the date of the takin! of the propert$ or the filin! of the o2plaint, whi hever a2e first. Je2phasis oursK
%'

-e tion 5/ of R.*. .o. %%50 readsB

-e tion 5/. *ppoint2ent of )o22issioners.C1he -pe ial *!rarian )ourts, upon their own initiative or at the instan e of an$ of the parties, 2a$ appoint one or 2ore o22issioners to e9a2ine, investi!ate and as ertain fa ts relevant to the dispute, in ludin! the valuation of properties, and to file a written report thereof with the ourt.
%4

Land Bank of the Philippines v. -ps. Banal, supra note '&, at 0&/.

-ee Land Bank of the Philippines v. Livio o, supra note %&, at 11&< and Land Bank of the Philippines v. -ps. Banal, supra note '&, at 0&7. -ee also -e tion 50 of R.*. .o. %%50.
%5

Deirs of LorenFo and )ar2en >idad v. Land Bank of he Philippines supra note "%, at %"5+%"/, itin! and Bank of he Philippines v. Belista ,.R. .o. 1%4%'1, #une "%, "&&7, 57 -)R* 1'0, 14'+140< Land Bank of the Philippines v. 6s andor supra note "%, at 51"< and Land Bank of the Philippines v. (ontalvan ,.R. .o. 17&''%, #une "0, "&1", %05 -)R* '/&, '/7+'7&.
%%