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EMINENT DOMAIN(Section 9)

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A. Constitutional Provisions Article III, Section 9

Section 9. Private property shall not be taken for

public use without just compensation. Article XII, Section 18 (public utilities)

Section 18. The State may, in the interest ofnational welfare or defense, establish and

operate vital industries and, upon payment of just compensation, transfer to public ownershiputilities and other private enterprises to beoperated by the Government.


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Article XIII, section 4 (land reform) Section 4. The State shall, by law, undertake an

agrarian reform program founded on the right offarmers and regular farmworkers who are landless, toown directly or collectively the lands they till or, in thecase of other farmworkers, to receive a just share ofthe fruits thereof. To this end, the State shall

encourage and undertake the just distribution of allagricultural lands, subject to such priorities andreasonable retention limits as the Congress mayprescribe, taking into account ecological,developmental, or equity considerations, and subject

to the payment of just compensation. In determiningretention limits, the State shall respect the right ofsmall landowners. The State shall further provideincentives for voluntary land-sharing.

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Article XVIII, Section 22 (idle or abandoned agriculturalland)

Section 22. At the earliest possible time, the

Government shall expropriate idle or abandonedagricultural lands as may be defined by law, fordistribution to the beneficiaries of the agrarianreform program.

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Definition

The right of eminent domain is usuallyunderstood to be the ultimate right of thesovereign power to appropriate, not only thepublic but the private property of all citizenswithin the territorial sovereignty, to publicpurpose

A power inherent in sovereignty Need not be granted by any fundamental law

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B. Elements taking

Republic v. Vda de Castellvi Taking for the purpose of determining just compensation

for public use with just compensation


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C. Elements of Taking

a. Expropriator must enter upon the private

property e.g. By virtue of the lease agreement the Republic,

through AFP, took possession of the property of Castellvib. The entrance must be permanent

more than a momentary period

Momentary: Lasting but a moment; lasting a very short time

E.g. The Republic, through AFP, constructed someinstallations of a permanent nature does not alter the factthat it was transitory

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c. The entry must be under warrant or color of legal authority- e.g. when the Republic entered the Castellvi property as lessee

d. The property must be devoted to public use or otherwiseinformally appropriated or injuriously affected

- e.g. Property was used by the air force of the AFP

e. The utilization of the property must be in such a

way as to oust the owner and deprive him of all

beneficial enjoyment of the property

- e.g. Entry of Republic into the property and its utilization forpublic use did not oust castellvi and deprive her of all beneficialenjoyment

(Castelvi - 1974)


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Total taking? (Gutierrez, Causby - 1991) Writ of possession ministerial upon a) filing of complaint

sufficient in form and substance; and b) deposit 15% of FMVper current tax declaration. Proof of public purpose notnecessary (Francia- 2004)

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D. Public Use

1. Definition

use that is of utility, advantage, or productivity for thebenefit of the public generally

equivalent to public welfare in police power If expropriator ceases to use the land for a public

purpose (e.g., sell the land to a private user), propertyreverts to the owner in fee simple (Heirs of Moreno 2005)


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2. Examples

Socialized Housing (Sumulong - 1987) Irrigation Systems (Coscolluela - 1988)

Tourism (Ardona - 1983)

Birthplace of Felix Manalo (Manosca 1996)


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E . Just Compensation

1. Definition

a sum equivalent to its market value

market value defined as the fair value of property as betweenone who desires but not compelled to purchase and one whodesires but not compelled to sell

payment must be made within a reasonable period of time fromtaking (Makati - 1990)

for as long as the area to be retained is compact and contiguousand does not exceed the retention limit, land owners choice ofarea to be retained must prevail ( Danan - 2005)


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2. Entitlement

Those who have lawful interest in the property to becondemned, including a mortgagee, a lessee and a vendee inpossession under an executory contract

3. Characteristics

Value of property is fixed at the time of filing or taking?Whichever comes first (Esteban 2001)

Compensation determined at time of institution ofproceedings (Sarabia 2005)


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Trial by commissioners is a substantive right which a judge may notdispense with (Meralco)

Trial by commissioners not mandatory in agrarian reform cases (Lee 2008

Court may substitute value if: a) commissioners applied illegal principlesto evidence submitted; b) they disregarded a clear preponderance ofevidence; and c) where amount is grossly inadequate or excessive (NPC -2007)

Entry may be made by expropriator prior to actual payment

- deposit amount equivalent to the assessed valuefor taxation purposes (PD No. 42)

- notice to the owner- no hearing required (Jocson - 1992)


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Under RA 8974, the government must pay the preferred value (not justa deposit under Rule 67) before it can enter (Judge Gingoyon 2005)

If there is delay in payment by government, 12% interest may beimposed (Wycoco 2004)

Compensation may be in government bonds (Maddumba, Ramirez ) If only a part of property taken, compensation is equal to market value

plus consequential damages less consequential benefits (NPC 2003) Tax credit given to commercial establishments for a discount enjoyed

by senior citizens pursuant to RA 7432 is a form of just compensation(BIR 2006)

If government fails to pay within five years from finality of judgement,the owners shall have the right to recover possession (Lim 2005)


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4. Judicial Review

1. Aspects subject to judicial review adequacy of compensation necessity of taking (De Knecht1 - 1980) public use

2. Res judicata and expropriation cases

may apply to specific issues decided in a previous case(Municipality of Paraaque 1998) the State may comply with issues raised and then exercise power

of eminent domain ( De Knecht2 - 1990)


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3. Contracts and expropriation cases Expropriation not a proper substitute for

enforcement of a valid contract (Noble - 1938) State cannot enter into contract not to

exercise power of eminent domain

4. LGUs and expropriation

a. Requisites ordinance authorizes local executive to exercise power power exercised for public use, purpose or

welfare, or for the benefit of the poor and landless payment of just compensation offer has been previously made to owner but was not accepted

( LGC, Section 19) (Jesus is Lord School 2005)


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b. LGU cannot expropriate property on thestrength of a resolution (Heirs of Suguitan - 2000)

c. Limit on LGUs with respect to: 1) the order ofpriority in acquiring land for socialized housing

and 2) resort to expropriation proceedings as ameans of acquisition last resort ( Estateof JBL Reyes 2004 )

d. Expropriation proceedings may be resorted to only toonly when other modes of acquisition have

been exhausted (Lageco 2004)


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Bardillon v. Barangau Masili Issue of Jurisdiction over Expropriation

An expropriation suit is within the jurisdiction of the RTCregardless of the value of the land, because the subject of theaction is the governments exercise of eminent domain amatter that is incapable of pecuniary estimation

Issue of Legality of Entry into Premises Requisites for authorizing immediate entry

Complaint for expropriation sufficient in form and substance Deposit of the amount equivalent to 15 % of the fair market value of

the property based on its current tax declaration

Issue of Necessity RTC has the power to inquire into the legality of the exercise of

the right of eminent domain and whether there is a genuinenecessity for it

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Estate of JBL v. City of Manila

Expropriation proceedings are to be resorted onlyafter the other modes of acquisition have beenexhausted

The right of the State to expropriate privateproperty as long as it is for public use takesprecedence over the interest of private propertyowners

Vigilance over compliance with the due processrequirements is in order

Complaint for expropriation was dismissed

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NON-IMPAIRMENT OF

CONTRACTS(Section 10)

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NON-IMPAIRMENT OF CONTRACTS(Section 10)

A. Definition

To fall within the prohibition, the change must not onlyimpair the obligation of the existing contract, but theimpairment must be substantial. Moreover, the law musteffect a change in the rights of the parties with referenceto each other, and not with the respect to non-parties.(Philippine Cooperatives 2003)

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B. Characteristics

Non-impairment clause protects private and public

contractsFranchises (City of San Pablo - 1999) and licenses (C&MTimber - 1997) are subject to modification by policepower

C. Specific CasesEstablishing or increasing an obligation to a third partydoes not change the relation of the parties (La Insular -1919)

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Mere change in procedural remedies but which leavesan efficacious remedy for enforcement does not impair

the obligation of contracts (Rutter - 1953)

But stricter rules on redemption applied retroactivelyviolates the non-impairment clause (Co-1982)

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NON-IMPAIRMENT OF CONTRACTS

(Section 10)D. Non-Impairment Clause vs.

Police Power Police power always wins except (New Agrix - 1990)

E. Recent Cases:C ontractual stipulations annotated on the title must yield to anordinance (Ortigas 2000)

Comelec can require candidates to pull out commercial

endorsements notwithstanding contractual provisions (Chavez

2004)Timber licenses, permits and license agreements may be validlyamended, modified, replaced or rescinded by the Chief Executivewhen national interest so requires. They are not contracts within thepurview of the due process clause (Alvarez)

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FREE ACCESS TO COURTS(Section 11)

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Includes quasi-judicial bodies

Includes adequate legal assistance

It suffices that plaintiff is indigent

Motion to litigate as pauper litigant may be entertained by

appellate court (Martinez

2000)


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Documents

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