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EXPROPRIATION Rule 67 - Coggle Diagram

- - - - IF DEFENSES ARE OVERRULED or IF DEFENDANT DOES NOT APPEAR = PLAINTIFF MAY TAKE PROPERTY UPON PAYMENT OF JUST COMPENSATION
        Section 4. Order of expropriation. – If the objections to and the defenses against the right of the plaintiff to expropriate the property are overruled, or when no party appears to defend as required by this Rule, the court may issue an order of expropriation declaring that the plaintiff has a lawful right to take the property sought to be expropriated, for the public use or purpose described in the complaint, upon the payment of just compensation to be determined as of the date of the taking of the property or the filing of the complaint, whichever came first.
        
        COURT SHALL APPOINT, AT MAX, 3 COMPETENT AND DISINTERESTED PERSONS AS COMMISSIONERS TO DETERMINE JUST COMPENSATION
        Section 5. Ascertainment of compensation. – Upon the rendition of the order of expropriation, the court shall appoint not more than three (3) competent and disinterested persons as commissioners to ascertain and report to the court the just compensation for the property sought to be taken.
        
        COMMISSIONERS MUST TAKE OATH
        Section 6. Proceedings by commissioners. – Before entering upon the performance of their duties, the commissioners shall take and subscribe an oath that they will faithfully perform their duties as commissioners, which oath shall be filed in court with the other proceedings in the case.
        
        COURT MAY ORDER COMMISSIONERS TO:
        
        REPORT - When any part of real estate have been passed upon
        
        RENDER JUDGMENT - Upon such partial report
        
        DIRECT - Commissioners to proceed with their work as to subsequent portions of property sought to be expropriated
        
        DEAL - May deal, from time to time, with such property
        
        Section 7. Report by commissioners and judgment thereupon. – The court may order the commissioners to report when any particular portion of the real estate shall have been passed upon by them, and may render judgment upon such partial report, and direct the commissioners to proceed with their work as to subsequent portions of the property sought to be expropriated, and may from time to time so deal with such property.
        
        UPON EXPIRATION OF 10 DAYS OR BEFORE EXPIRATION IF ALL INTERESTED PARTIES HAVE FILED THEIR OBJECTIONS TO REPORT/STATEMENT, COURT MAY:
        
        ACCEPT REPORT AND RENDER JUDGMENT IN ACCORDANCE THEREWITH
        Section 8. Action upon commissioners’ report. –
        Upon the expiration of the period of ten (10) days referred to in the preceding section, or even before the expiration of such period but after all the interested parties have filed their objections to the report or their statement of agreement therewith, the court may, after hearing, accept the report and render judgment in accordance therewith;
        
        IF OWNERSHIP UNCERTAIN OR ADVERSE CLAIMS, COURT MAY ORDER COMPENSATION FOR PERSON ADJUDGED ENTITLED
        Section 9. Uncertain ownership; conflicting claims. – If the ownership of the property taken is uncertain, or there are conflicting claims to any part thereof, the court may order any sum or sums awarded as compensation for the property to be paid to the court for the benefit of the person adjudged in the same proceeding to be entitled thereto.
        
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        RECOMMIT REPORT TO COMMISSIONERS FOR FURTHER REPORT OF FACTS
        or, for cause shown, it may recommit the same to the commissioners for further report of facts;
        
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        COMMISSIONERS SHALL MAKE FULL AND ACCURATE REPORT OF THEIR PROCEEDINGS
        The commissioners shall make a full and accurate report to the court of all their proceedings, and such proceedings shall not be effectual until the court shall have accepted their report and rendered judgment in accordance with their recommendations.
        
        SUCH REPORT MUST BE FILED WITHIN 60 DAYS FROM DATE OF NOTIFICATION OF COMMISSIONERS OF THEIR APPOINTMENT
        Except as otherwise expressly ordered by the court, such report shall be filed within sixty (60) days from the date the commissioners were notified of their appointment, which time may be extended in the discretion of the court.
        
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        W/O REPORT = PROCEEDINGS NOT EFFECTUAL
        Not effectual until court accepts report and rendered judgment based on reccomendations.
        
        EVIDENCE MAY BE INTRODUCED BY EITHER PARTY TO THE COMMISSIONERS AUTHORIZED TO ADMINISTER OATHS ON HEARINGS
        COMMISSIONERS SHALL,
        AFTER DUE NOTICE + IF PARTIES DO NOT CONSENT TO CONTRARY:
        
        VIEW AND EXAMINE PROPERTY TO BE EXPROPRIATED AND ITS SURROUNDINGS
        
        MEASURE IT
        (a) After measurement, either party may argue the case
        
        Evidence may be introduced by either party before the commissioners who are authorized to administer oaths on hearings before them, and the commissioners shall, unless the parties consent to the contrary, after due notice to the parties to attend, view and examine the property sought to be expropriated and its surroundings, and may measure the same, after which either party may, by himself or counsel, argue the case.
        
        COMMISSIONERS SHALL ASSESS:
        
        ASSESS - CONSEQUENTIAL DAMAGES TO PROPERTY NOT TAKEN
        
        DEDUCT - FROM SUCH CONSEQUENTIAL DAMAGES THE CONSEQUENTIAL BENEFITS TO BE DERIVED BY OWNER
        The commissioners shall assess the consequential damages to the property not taken and deduct from such consequential damages the consequential benefits to be derived by the owner from the public use or purpose of the property taken, the operation of its franchise by the corporation or the carrying on of the business of the corporation or person taking the property.
        
        CONSEQUENTIAL BENEFITS CANNOT EXCEED CONSEQUENTIAL DAMAGES
        But in no case shall the consequential benefits assessed exceed the consequential damages assessed, or the owner be deprived of the actual value of his property so taken. (6a)
        
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        JC IS EQUIVALENT TO MARKET VALUE
        As a rule, just compensation, to which the owner of the property to be expropriated is entitled, is equivalent to the market value. 64 The rule is modified where only a part of a certain property is expropriated.
        (National Power Corp. v. Marasigan, G.R. No. 220367, [November 20, 2017])
        
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        CONSEQUENTIAL BENEFITS DEFINED:
        ACTUAL BENEFITS DERIVED BY OWNER RESULTING FROM IMPROVEMENTS BECAUSE OF EXPROPRIATION
        However, such consequential benefits refer to the actual benefits derived by the landowner which are the direct and proximate results of the improvements as a consequence of the expropriation and not to the general benefits which the landowner may receive in common with the community. 69
        
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        ORDER OF APPOINTMENT SHALL:
        
        DESIGNATE TIME AND PLACE OF FIRST SESSION OF HEARING
        (a) HELD BY COMMISSIONERS
        
        SPECIFY TIME FOR REPORT SUBMISSION
        
        The order of appointment shall designate the time and place of the first session of the hearing to be held by the commissioners and specify the time within which their report shall be submitted to the court.
        
        COPIES OF ORDER SHALL BE SERVE ON PARTIES
        Copies of the order shall be served on the parties.
        
        OBJECTIONS TO APPOINTMENT SHALL BE:
        
        FILED WITHIN 10 DAYS FROM SERVICE
        
        RESOLVED WITHIN 30 DAYS AFTER ALL COMMISSIONERS RECEIVE COPY OF OBJECTIONS
        Objections to the appointment of any of the commissioners shall be filed with the court within ten (10) days from service, and shall be resolved within thirty (30) days after all the commissioners shall have received copies of the objections. (5a)
        
        What happens if they're not served?
        
        MAY BE APPEALED: FINAL ORDER SUSTAINING RIGHT TO EXPROPRIATE MAY BE APPEALED
        A final order sustaining the right to expropriate the property may be appealed by any party aggrieved thereby.
        
        PLAINTIFF CANNOT DISMISS OR DISCONTINUE PROCEEDING
        After the rendition of such an order, the plaintiff shall not be permitted to dismiss or discontinue the proceeding except on such terms as the court deems just and equitable. (4a)
        
        EXCEPT IF JUST AND EQUITABLE
        
        HOWEVER, COURT SHALL STILL DETERMINE JUST COMPENSATION
        Such appeal, however, shall not prevent the court from determining the just compensation to be paid.
        
        FACTUAL ISSUES NOT APPEALABLE UNDER RULE 45
        To begin with, factual issues pertaining to the value of an expropriated property is beyond the scope of judicial review under a petition filed via Rule 45. 54 As such, factual findings of the trial and appellate courts will not be disturbed by this Court unless any of the recognized exceptions is present. 55 No such exception obtains in the instant case.||| (National Power Corp. v. Marasigan, G.R. No. 220367, [November 20, 2017])
        
        It may be appealed under Rule 45 but must be a pure question of law
        
        DENOMINATION OF "PETITION FOR CERTIORARI" IS NOT CONTROLLING; REPEATEDLY INVOKING RULE 45 IN INSTANT APPEAL
        Hence, under the aforementioned provision of the Rules of Court, petitioner PAFC had the right to appeal the assailed Order of Expropriation. The Court holds that the instant appeal, although mistakenly worded by petitioner PAFC as a "Petition for Certiorari," is for all intents and purposes a petition for review on certiorari under Rule 45. It must be noted that petitioner PAFC repeatedly invoked Rule 45 in filing the instant appeal, alleging that the instant appeal is "pursuant to Rule 45 of the Rules of Court raising a pure question of law to set aside or nullify the [assailed Order of Expropriation]."||| (PNOC Alternative Fuels Corp. v. National Grid Corporation of the Philippines, G.R. No. 224936, [September 4, 2019])
        
        The date of the taking of the property may come before the filing of the complaint
      - EFFECT: ENTITLED TO NOTICE OF ALL PROCEEDINGS
        Thereafter, he shall be entitled to notice of all proceedings affecting the same.
        
        OBJECTION TO FILING/ALLEGATION/TAKING
        If a defendant has any objection to the filing of or the allegations in the complaint, or any objection or defense to the taking of his property, he shall serve his answer within the time stated in the summons.
        
        ANSWER SHALL DESIGNATE/IDENTIFY PROPERTY CLAIMED TO HAVE INTEREST + STATE NATURE & EXTENT OF INTEREST CLAIMED + ADDUCE ALL OBJECTIONS & DEFENSES TO THE TAKING
        The answer shall specifically designate or identify the property in which he claims to have an interest, state the nature and extent of the interest claimed, and adduce all his objections and defenses to the taking of his property.
        
        NO COUNTERCLAIM, CROSS-CLAIM, OR THIRD PARTY COMPLAINT IS ALLOWED IN THE ANSWER OR ANY SUBSEQUENT PLEADING
        No counterclaim, cross-claim or third-party complaint shall be alleged or allowed in the answer or any subsequent pleading.
        
        DEFENDANT WAIVES ALL DEFENSES AND OBJECTIONS NOT ALLEGED
        A defendant waives all defenses and objections not so alleged but the court, in the interest of justice, may permit amendments to the answer to be made not later than ten (10) days from the filing thereof.
        
        BUT AT TRIAL, DEFENDANT MAY PRESENT EVIDENCE AS TO AMOUNT OF COMPENSATION TO BE PAID FOR HIS PROPERTY AND SHARE IN DISTRIBUTION
        However, at the trial of the issue of just compensation, whether or not a defendant has previously appeared or answered, he may present evidence as to the amount of the compensation to be paid for his property, and he may share in the distribution of the award. (n)
        
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        BUT HE CAN MAKE AMENDMENTS TO HIS ANSWER WITHIN 10 DAYS OF FILING
        
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    - - IF PERSONAL PROPERTY, VALUE PROVISIONALLY ASCERTAINED
        If personal property is involved, its value shall be provisionally ascertained and the amount to be deposited shall be promptly fixed by the court.
        
        RECOVER POSSESSION + REPORT + SERVICE OF COPIES OF REPORT
        After such deposit is made the court shall order the sheriff or other proper officer to forthwith place the plaintiff in possession of the property involved and promptly submit a report thereof to the court with service of copies to the parties. (2a)
    - - Accordingly, in expropriation proceedings, the requisites for authorizing immediate entry are as follows:
        
        FILING OF COMPLAINT SUFFICIENT IN FORM & SUBSTANCE - the filing of a complaint for expropriation sufficient in form and substance; and
        
        DEPOSIT OF AMOUNT EQUIVALENT TO 15% OF FMV OF PROPERTY BASED ON CURRENT TAX DEC - the deposit of the amount equivalent to 15 percent of the fair market value of the property to be expropriated based on its current tax declaration. 20
        
        (Bardillon v. Barangay Masili of Calamba, Laguna, G.R. No. 146886, [April 30, 2003], 450 PHIL 521-531)
        
        REQUIREMENTS FOR LGU TO EXERCISE EMINENT DOMAIN
        
        MUST ACT THROUGH CHIEF EXECUTIVE
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        MUST BE PURSUANT TO ORDINANCE
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        ED MUST BE FOR PUBLIC USE/PURPOSE/WELFARE
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        FOR BENEFIT OF POOR AND LANDLESS
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        UPON PAYMENT OF JUST COMPENSATION PURSUANT TO CONSTI + PERTINENT LAWS
        SECTION 19. Eminent Domain. — A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws:
        (Sec. 19 of LGC)
        
        UNACCEPTED VALID AND DEFINITE OFFER
        Provided, however, That the power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted:
        
        LGU MAY IMMEDIATELY TAKE POSSESSION OF PROPERTY UPON
        
        FILING OF EXPROPRIATION PROCEEDINGS -
        
        MAKING A DEPOSIT WITH PROPER COURT OF AT LEAST 15% OF FMV OF PROPERTY BASED ON CURRENT TAX DEC
        Provided, further, That the local government unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair market value of the property based on the current tax declaration of the property to be expropriated:
        
        PROPER COURT DETERMINES FMV AT TIME OF TAKING OF PROPERTY
        Provided, finally, That, the amount to be paid for the expropriated property shall be determined by the proper court, based on the fair market value at the time of the taking of the property.||| (Local Government Code of 1991, Republic Act No. 7160, [October 10, 1991])
        
        UNACCEPTED VALID AND DEFINITE OFFER IS REQUIRED BEFORE ED IS EXERCISED
- - - - IF AREA HAS NO ZONAL VALUATION, BIR HAS 60 DAYS FROM EXPROPRIATION CASE TO COME UP WITH ZONAL VALUATION
        (b) In provinces, cities, municipalities and other areas where there is no zonal valuation, the BIR is hereby mandated within the period of sixty (60) days from the date of the expropriation case, to come up with a zonal valuation for said area; and
        
        IF COMPLETION OF NGIP IS OF UTMOST URGENCY AND IMPORTANCE, AGENCY SHALL IMMEDIATELY PAY OWNER OF PROPERTY ITS PROFFERED VALUE TAKING INTO ACCOUNT STANDARDS IN SEC. 5
        (c) In case the completion of a government infrastructure project is of utmost urgency and importance, and there is no existing valuation of the area concerned, the implementing agency shall immediately pay the owner of the property its proffered value taking into consideration the standards prescribed in Section 5 hereof.
        
        UPON COMPLIANCE WITH GUIDELINES, COURT SHALL ISSUE IMPLEMENTING AGENCY AN ORDER TO TAKE POSSESSION OF PROPERTY AND START IMPLEMENTATION OF PROJECT
        Upon compliance with the guidelines abovementioned, the court shall immediately issue to the implementing agency an order to take possession of the property and start the implementation of the project.
        
        CERTIFICATE OF AVAILABILITY OF FUNDS FROM PROPER OFFICIAL IS REQUIRED FROM IA BEFORE COURT CAN ISSUE WRIT OF POSSESSION
        Before the court can issue a Writ of Possession, the implementing agency shall present to the court a certificate of availability of funds from the proper official concerned.
        
        IF OWNER CONTESTS IA'S PROFFERED VALUE, COURT DETERMINES JUST COMPENSATION TO BE PAID THE OWNER IN
        60 DAYS
        In the event that the owner of the property contests the implementing agency’s proffered value, the court shall determine the just compensation to be paid the owner within sixty (60) days from the date of filing of the expropriation case.
        
        IF DECISION BECOMES FINAL AND EXECUTORY, IA PAYS OWNER DIFFERENCE BETWEEN AMOUNT PAID AND JUST COMPENSATION DETERMINED BY COURT
        When the decision of the court becomes final and executory, the implementing agency shall pay the owner the difference between the amount already paid and the just compensation as determined by the court.
      - VALUE OF IMPROVEMENTS/STRUCTURES IN ACCORDANCE WITH IRR?
        Section 7. Valuation of Improvements and/or Structures. - The Department of Public Works and Highways and other implementing agencies concerned, in coordination with the local government units concerned in the acquisition of right-of-way, site or location for any national government infrastructure project, are hereby mandated to adopt within sixty (60) days upon approval of this Act, the necessary implementing rules and regulations for the equitable valuation of the improvements and/or structures on the land to be expropriated.
- - - - STATE IS ONLY OBLIGED TO MAKE GOOD THE LOSS SUSTAINED BY LANDOWNER CONSIDERING CIRCUMSTANCE AVAILING AT TIME WHEN PROPERTY WAS TAKEN
        In Oroville, the Court explains that the State is only obliged to make good the loss sustained by the landowner and considering the circumstances availing at the time the property was taken.
        
        EXCEPTION: SPECIAL CIRCUMSTANCES MAY PERMIT VALUATION OF JE TO BE AT TIME WHEN LANDOWNERS INITIATED INVERSE CONDEMNATION PROCEEDINGS DESPITE THAT "TAKING" OCCURED FIRST
        Deviation from this general rule was permitted in the cases of National Power Corporation v. Heirs of Macabangkit Sangkay 46 and National Power Corporation v. Spouses Saludares 47 due to special circumstances 48 therein obtaining which necessitated a valuation of just compensation at the time the landowners initiated inverse condemnation proceedings notwithstanding that taking of the properties occurred first. (National Power Corp. v. Marasigan, G.R. No. 220367, [November 20, 2017])
- - - - RIGHT OF EMINENT DOMAIN PERTAINS PRIMARILY TO LEGISLATURE
        It has been held that, as an inherent sovereign prerogative, the power to expropriate pertains primarily to the legislature. The power of eminent domain is lodged in the legislative branch of government. 38
        (PNOC Alternative Fuels Corp. v. National Grid Corporation of the Philippines
        
        EMINENT DOMAIN MAY BE DELEGATED
        However, the power to expropriate is not exclusive to Congress. The latter may delegate the exercise of the power to government agencies, public officials and quasi-public entities. 39 According to eminent constitutionalist and one of the framers of the 1987 Constitution, Fr. Joaquin G. Bernas, S.J., "[t]he authority of the legislature to delegate the right of eminent domain to private entities operating public utilities has never been questioned." 40
        (PNOC Alternative Fuels Corp. v. National Grid Corporation of the Philippines
        
        HOWEVER DELEGATED POWER TO EXPROPRIATE IS LIMITED TO ENABLING LAW
        In the hands of government agencies, local governments, public utilities, and other persons and entities, the right to expropriate is not inherent and is only a delegated power. In fact, even as to municipal corporations, it has been held that they can exercise the right of eminent domain only if some law exists conferring the power upon them. 41
        Hence, with the right of eminent domain not being an inherent power for private corporations, whose right to expropriate is granted by mere legislative fiat, the delegate's exercise of the right of eminent domain is restrictively limited to the confines of the delegating law. The scope of this delegated legislative power is necessarily narrower than that of the delegating authority and may only be exercised in strict compliance with the terms of the delegating law. 42
        ||| (PNOC Alternative Fuels Corp. v. National Grid Corporation of the Philippines, G.R. No. 224936, [September 4, 2019])
- - - - ACTUAL VALUE OF PROPERTY AT TIME IT IS TAKEN
        . . . "[T]he value of the property should be fixed as of the date when it was taken and not the date of the filing of the proceedings." For where property is taken ahead of the filing of the condemnation proceedings, the value thereof may be enhanced by the public purpose for which it is taken; the entry by the plaintiff upon the property may have depreciated its value thereby; or, there may have been a natural increase in the value of the property from the time it is taken to the time the complaint is filed, due to general economic conditions. The owner of private property should be compensated only for what he actually loses; it is not intended that his compensation shall extend beyond his loss or injury. And what he loses is only the actual value of his property at the time it is taken . . . . ||| (Secretary of the Department of Public Works and Highways v. Spouses Tecson, G.R. No. 179334, [July 1, 2013], 713 PHIL 55-92)