National Grid Corporation Of The Philippines v. Gaite

GAERLAN, J.:

Before the Court is a Petition for Review on Certiorari1 dated August 22, 2017 filed by National Grid Corporation of the Philippines (NGCP), assailing the Resolutions dated October 27, 20162 and May 11, 20173 issued by the Court of Appeals (CA) in CA-G.R.CV No. 04264-MIN. Factual Antecedents As culled from the records, the facts are as follows: On April 15, 2010, NGCP filed a Complaint4 for Eminent Domain against Getulia A. Gaite and the Heirs of Trinidad Gaite (collectively, respondents) before the Regional Trial Court (RTC), of Iligan City, Branch 3. In the complaint, NGCP alleged, among others, that in order to construct and maintain the Abaga-Kirahon 230 kV Transmission Line Project, it must acquire, upon payment of just compensation, respondents' property (subject property), more specifically described as follows: On August 24, 2010, NGCP filed an Urgent Ex-Parte Motion for Issuance of Writ of Possession (with Manifestation of Compliance),6 attaching thereto a Certification7 issued by the Landbank of the Philippines, stating that NGCP has paid the total amount of P186,063.42, which is equivalent to 100% of the zonal value of the Bureau of Internal Revenue (BIR), in compliance with Section 2, Rule 67 of the Rules of Court.

Accordingly, NGCP alleged that it is now entitled to possession of the subject property as a matter of right. Thereafter, on July 8, 2011, the RTC issued a Writ of Possession8 placing NGCP in actual possession of the subject property.9 Sometime in September 2012, the RTC issued an order for the appointment of commissioners who shall recommend the fair market value of the subject property for determining just compensation. Accordingly, the Board of Commissioners - composed of: (1) Engr.

Gil R. Balondo, the City Development Planning Officer of Iligan City; (2) Ma. Rodora Elena A. Gimena, the City Assessor of Iligan City; and (3) Atty. Raymundo C. Capistrano (Atty. Capistrano), a Licensed Real Estate Broker residing in Iligan City - submitted and signed a Joint Commissioner's Report,10 recommending a P60.00 per square meter (sqm.) fair market value of the subject property.11 Based on the joint commissioner's report, the following factors were used to determine the P60.00 per sqm. fair market value recommended by the Board of Commissioners: 1.

Committee on Appraisal Resolution No. 6 series of 2005 Hrs. of Rustico Quidlat Sademas involving a 12.2275 hectares agricultural lot located at Bonbonon, appraised and valued at P 47.23 per square meter (site for Material Recovery Facility); 2. Deed of Absolute Sale between Timbangondi Masinger and City Government of Iligan dated February 25, 2009 with an area of 670 square meters located at Bonbonon, Iligan City @ P 47.30 per square meter (access road to Material Recovery Facility); 3.

Deed of Absolute sale between Ramon Morente and City Government of Iligan dated February 25, 2009 involving Two Thousand Sixteen square @ P 47.30 per square meter located at Bonbonon, Iligan City (access road to MRF); 4. 2005 BIR Zonal valuation of agricultural land at Bonbonon @ P 70,000.00 per hectare; 5. Deed of Absolute Sale of a portion of a parcel of residential land executed between Remedilla Pilones and Bernalda Romo involving 300 square meters @ P 133.33 per square meter dated August 31, 2010;12 Notably, on March 17, 2014, one of the commissioners, Atty. Capistrano, submitted a separate commissioner's report,13 recommending the amount of P300.00 per sqm.

as the fair market value of the subject property, to wit:

WHEREFORE , the undersigned Commissioner hereby recommend that the just compensation for the subject properties shall be as follows: 1. Lot No. 3366-A, d. 292 - Getulia Gaite: 6,246.26 sq.m. @ Php300.00 per square meters P1,873,878.00 2. Lot No. 5261-A, Cad. 292 - Trinidad Gaite 1,726.766 square meters @ Php300.00 per sq. meters P518,032.80 Total P2,391,910.80 The recommended price of Php300.00 per square meter includes the market value of the improvements on the subject lots.14 In his separate commissioner's report, Atty. Capistrano justified his recommended price for just compensation by stating, among others, that pursuant to City Ordinance No. 3097, Resolution No. 900, and Resolution No. 00-1423, the land where the subject property is situated has been reclassified from open zone to "agri-industrial."15 However, in the same commissioner's report, Atty. Capistrano also mentioned that according to the chairman of the City Development Office of Iligan City, the ordinance authorizing there classification of the said land has not been approved by the Housing and Land Use Regulatory Board, and thus, such ordinance has not yet been implemented.16 Moreover, in his commissioner's report, Atty. Capistrano stated that in 2009, the Department of Public Works and Highways (DPWH) acquired a parcel of land near the subject property from a certain Macapaar Panandigan, for P250.00 per sqm.17 On August 5, 2014, the RTC rendered its Decision,18 adopting fully the recommendation of Atty. Capistrano in his separate commissioner's report, thus: WHEREFORE , judgment is hereby rendered, ordering that: 1. Plaintiff is now the owner of the portions of parcels of land owned by defendants described in the Commissioners' report which were traversed by plaintiffs transmission lines, free from all liens and encumbrances; 2. Plaintiff to pay defendants the following: Lot No. 3366-A, d.292 - Getulia Gaite: 6,246.26 sq.m. @ Php300.00 per sq.m. P1,873,878.00 - Lot No. 5261-A, Cad. 292 - Trinidad Gaite: 1,726.766 sq.m. @ Php300.00 per sq.m. P518,032.80 - Total