NATIONAL POWER CORPORATION v

HEIRS OF ANTONINA RABIE

G.R. NO. 210218, AUGUST 17, 2016

FACTS:

On December 1, 2009, NAPOCOR filed a complainr for the expropriation againts the
respondents for the acquisition of the 822-sqm lot located in Brgy. Lewin Lumban,Laguna. Said
land will be used as access road for the Caliraya Hydro Electric Power Plant of the Caliraya
Botocan Kalayaan Build Rehabilitate and Operate Transfer Project of NAPOCOR. To facilitate
the electrification function and to provide power generation and its associated power delivery
systems in areas that are not connected to the transmission system.

On July 5, 2010, NAPOCOR deposited with LBP the amount of P411,000.00 (P500.00x822sqm)
representing the BIR zonal valuation of the affected portion of the subject property.

Prior to this, on February 5, 2010, the respondents claimed that the current market value of the
subject property was at the range between P10,000.00 (inner portion) to P12,000.00 (near the
highway) per sqm. Further, they sought for payment for the NAPOCOR’s alleged unauthorized
entry and use of the property from 1940 to date.

ISSUE:

Whether or not the just compensation for the aubject property is P411,000?

DECISION:

No. The 822 sqm of the land owned by the defendants is hereby appropriated in favor of the
NAPOCOR upon payment of the fair market value of the property at P11,000 per sqm or a total
of P9,042,000.00. Defendant’s claim that said propert was occupied by plaintiff since 1949 is
unrebuttable, hence, reasonable rentals of P12,000.00 yearly is hereby awarded to defendants
from the year 1949 to the present at a 12% annual interest rate, until fully paid.

Q1: What is the valuation used in arriving at the fair market value of the property?

The trial court constituted the Board of Commissioners to assist in the determination of just
compensation for the affected portion of the property. The Board of Commisioners deemed that
the value per square meter of the affected portion is P11,000.00.
Q2: When just compensation was computed?

The property taken should be assessed as of the time of the taking. However, in the present
case, just compensation was computed at the time of the complaint for expropriation was filed.
Also, rentals amounting to P12,000 yearly from the year 1940 to present at a 12% annual
interest, until fully paid, is awarded to the respondents.

Q3: How just compensation was computed?

The trial court constituted the Board of Commissioners to assist in the determination of just
compensation for the affected portion of the property. The Board of Commisioners deemed that
the value per square meter of the affected portion is P11,000.00.

Q4: Which position was upheld by the court?

In the present case, the trial court favored the contention of the respondents in the computation
of just compensation. The decision was just to indemnify the respondents, if not fully at least
reasonable enough, for the loss they have sustained as a result of the expropriation.