Republic vs. Gingoyon G.R. No. 166429 December 19, 2005

8/10/2019 Republic vs. Gingoyon G.R. No. 166429 December 19, 2005

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REPUBLIC OF THE PHILIPPINES, G.R. No. 166429

Represented ! E"e#$t%&e Se#ret'r!

Ed$'rdo R. Er(%t', t)e *EP+RTENT

OF TR+NSPORT+TION +N* Present-

COUNIC+TIONS *OTC/, 'nd t)e

+NIL+ INTERN+TION+L +IRPORT *+0I*E, R., C.J.,

+UTHORIT I++/, PUNO,

Petitioners, P+NG+NIB+N,

3UISUBING,

N+RESS+NTI+GO,

S+N*O0+LGUTIERRE5,

C+RPIO,

&ers$s

+USTRI++RTINE5,

CORON+,

C+RPIOOR+LES,

C+LLEO, SR.,

+5CUN+,HON. HENRIC F. GINGOON, TING+,

In )%s #'p'#%t! 's Pres%d%n7 CHICO

N+5+RIO, 'nd

$d7e o8 t)e Re7%on' Tr%' Co$rt, G+RCI+, JJ.

Br'n#) 11:, P's'! C%t! 'nd


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PHILIPPINE INTERN+TION+L +IR

TERIN+LS CO., INC.,

Respondents. Pro($7'ted-

*e#e(er 19, 2;;/ ?'s #on#e%&ed,

des%7ned 'nd #onstr$#ted to ser&e 's t)e #o$ntr!@s s)o? ?%ndo? to t)e ?ord. Re7rett'!, %t )'s

sp'?ned #ontro&ers%es. Re7rett'! too, desp%te t)e 'pp'rent #o(pet%on o8 t)e ter(%n' #o(pe" ?'!

'#A %t )'s not !et een oper'ted. T)%s )'s #'$sed %((e's$r'e e#ono(%# d'('7e to t)e #o$ntr!, not

to (ent%on %ts depor'e d%s#red%t %n t)e %ntern't%on' #o(($n%t!.

In t)e 8%rst #'se t)'t re'#)ed t)%s Co$rt, Agan v. PIATCO,[1]t)e #ontr'#ts ?)%#) t)e Go&ern(ent )'d

?%t) t)e #ontr'#tor ?ere &o%ded 8or e%n7 #ontr'r! to '? 'nd p$%# po%#!. T)e se#ond #'se no?

e8ore t)e Co$rt %n&o&es t)e ('tter o8 $st #o(pens't%on d$e t)e #ontr'#tor 8or t)e ter(%n' #o(pe" %t

$%t. e de#%de t)e #'se on t)e 's%s o8 8'%rness, t)e s'(e nor( t)'t per&'des ot) t)e Co$rt@s 2;;4

Reso$t%on %n t)e 8%rst #'se 'nd t)e 'test e"propr%'t%on '?.

T)e present #ontro&ers! )'s %ts roots ?%t) t)e pro($7't%on o8 t)e Co$rt@s de#%s%on %n Agan v.

PIATCO,[2]pro($7'ted %n 2;;> 2;;> *e#%s%on/. T)%s de#%s%on n$%8%ed t)e DCon#ess%on +7ree(ent

8or t)e B$%dOper'te'ndTr'ns8er +rr'n7e(ent o8 t)e N%no! +=$%no Intern't%on' +%rport P'ssen7er

Ter(%n' III entered %nto et?een t)e P)%%pp%ne Go&ern(ent Go&ern(ent/ 'nd t)e P)%%pp%ne

Intern't%on' +%r Ter(%n's Co., In#. PI+TCO/, 's ?e 's t)e '(end(ents 'nd s$ppe(ents t)ereto.

T)e '7ree(ent )'d '$t)or%ed PI+TCO to $%d ' ne? %ntern't%on' '%rport ter(%n' N+I+ >/, 's ?e
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's ' 8r'n#)%se to oper'te 'nd ('%nt'%n t)e s'%d ter(%n' d$r%n7 t)e #on#ess%on per%od o8 2< !e'rs. T)e

#ontr'#ts ?ere n$%8%ed, '(on7 ot)ers, t)'t P'%r#'r7o Consort%$(, prede#essor o8 PI+TCO, d%d not

possess t)e re=$%s%te 8%n'n#%' #'p'#%t! ?)en %t ?'s '?'rded t)e N+I+ > #ontr'#t 'nd t)'t t)e

'7ree(ent ?'s #ontr'r! to p$%# po%#!.[3]

+t t)e t%(e o8 t)e pro($7't%on o8 t)e 2;;> *e#%s%on, t)e N+I+ > 8'#%%t%es )'d 're'd! een $%t

! PI+TCO 'nd ?ere ne'r%n7 #o(pet%on.[4]Ho?e&er, t)eponencia?'s s%ent 's to t)e e7' st't$s o8

t)e N+I+ > 8'#%%t%es 8oo?%n7 t)e n$%8%#'t%on o8 t)e #ontr'#ts, 's ?e 's ?)'te&er r%7)ts o8 PI+TCO

8or re%($rse(ent 8or %ts e"penses %n t)e #onstr$#t%on o8 t)e 8'#%%t%es. St%, %n )%s Sep'r'te Op%n%on,

$st%#e P'n7'n%'n, o%ned ! $st%#e C'eo, de#'red 's 8oo?s-

Should government pay at all for reasonable expenses incurred in the construction of

the Terminal? Indeed it should other!ise it !ill be un"ustly enriching itself at the

expense of #iatco and in particular its funders contractors and investors $ both local

and foreign. +8ter ', t)ere %s no =$est%on t)'t t)e St'te needs 'nd ?% ('Ae $se o8

Ter(%n' III, %t e%n7 p'rt 'nd p'r#e o8 t)e #r%t%#' %n8r'str$#t$re 'nd tr'nsport't%onre'ted

pro7r'(s o8 7o&ern(ent.[5]

PI+TCO 'nd se&er' respondents%nter&enors 8%ed t)e%r respe#t%&e (ot%ons 8or t)e re#ons%der't%on

o8 t)e 2;;> *e#%s%on. T)ese (ot%ons ?ere den%ed ! t)e Co$rt %n %ts Resolution d'ted 21 'n$'r! 2;;4

2;;4 Reso$t%on/.[6]Ho?e&er, t)e Co$rt t)%s t%(e s=$'re! 'ddressed t)e %ss$e o8 t)e r%7)ts o8

PI+TCO to re8$nd, #o(pens't%on or re%($rse(ent 8or %ts e"penses %n t)e #onstr$#t%on o8 t)e N+I+ >

8'#%%t%es. T)e )od%n7 o8 t)e Co$rt on t)%s #r$#%' po%nt 8oo?s-

This Court ho!ever is not unmindful of the reality that the structures comprising

the N%I% I#T III facility are almost complete and that funds have been spent by

#I%TCO in their construction&'or the government to ta(e over the said facility it

has to compensate respondent #I%TCO as builder of the said structures& The

compensation must be "ust and in accordance !ith la! and e)uity for the

government can not un"ustly enrich itself at the expense of #I%TCO and its investors .
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[7]

+8ter t)e pro($7't%on o8 t)e r$%n7s %n Agan, t)e N+I+ > 8'#%%t%es )'&e re('%ned %n t)e

possess%on o8 PI+TCO, desp%te t)e '&o?ed %ntent o8 t)e Go&ern(ent to p$t t)e '%rport ter(%n' %nto

%((ed%'te oper't%on. T)e Go&ern(ent 'nd PI+TCO #ond$#ted se&er' ro$nds o8 ne7ot%'t%on re7'rd%n7

t)e N+I+ > 8'#%%t%es.[8]It 'so 'ppe'rs t)'t 'r%tr' pro#eed%n7s ?ere #o((en#ed e8ore t)e

Intern't%on' C)'(er o8 Co((er#e Intern't%on' Co$rt o8 +r%tr't%on 'nd t)e Intern't%on' Centre 8or

t)e Sette(ent o8 In&est(ent *%sp$tes,[9]'t)o$7) t)e Go&ern(ent )'s r'%sed $r%sd%#t%on' =$est%ons

e8ore t)ose t?o od%es.[10]

T)en, on 21 *e#e(er 2;;4, t)e Go&ern(ent[11]8%ed ' Complaint8or e"propr%'t%on ?%t) t)e

P's'! C%t! Re7%on' Tr%' Co$rt RTC/, to7et)er ?%t) 'n Application for Special Raffle seeA%n7 t)e

%((ed%'te )od%n7 o8 ' spe#%' r'88e. T)e Go&ern(ent so$7)t $pon t)e 8%%n7 o8 t)e #o(p'%nt t)e

%ss$'n#e o8 ' ?r%t o8 possess%on '$t)or%%n7 %t to t'Ae %((ed%'te possess%on 'nd #ontro o&er t)e N+I+

> 8'#%%t%es.
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T)e Go&ern(ent 'so de#'red t)'t %t )'d depos%ted t)e '(o$nt o8 P>,;;2,12 B%%on/

[13]%n C's) ?%t) t)e L'nd B'nA o8 t)e P)%%pp%nes, represent%n7 t)e N+I+ > ter(%n'@s 'ssessed

&'$e 8or t'"'t%on p$rposes.[14]

T)e #'se[15]?'s r'88ed to Br'n#) 11: o8 t)e P's'! C%t! RTC, pres%ded ! respondent $d7e Hon.

Henr%#A F. G%n7o!on Hon. G%n7o!on/. On t)e s'(e d'! t)'t t)e Complaint?'s 8%ed, t)e RTC %ss$ed

'n Order[16]d%re#t%n7 t)e %ss$'n#e o8 ' ?r%t o8 possess%on to t)e Go&ern(ent, '$t)or%%n7 %t to Dt'Ae

or enter $pon t)e possess%on o8 t)e N+I+ > 8'#%%t%es. C%t%n7 t)e #'se o8 City of Manila v. Serrano,

[17]t)e RTC noted t)'t %t )'d t)e (%n%ster%' d$t! to %ss$e t)e ?r%t o8 possess%on $pon t)e 8%%n7 o8 '

#o(p'%nt 8or e"propr%'t%on s$88%#%ent %n 8or( 'nd s$st'n#e, 'nd $pon depos%t ('de ! t)e7o&ern(ent o8 t)e '(o$nt e=$%&'ent to t)e 'ssessed &'$e o8 t)e propert! s$e#t to e"propr%'t%on. T)e

RTC 8o$nd t)ese re=$%s%tes present, p'rt%#$'r! not%n7 t)'t Dt)e #'se re#ord s)o?s t)'t t)e

Go&ern(ent )'s depos%ted t)e 'ssessed &'$e o8 t)e N+I+ > 8'#%%t%es %n t)e L'nd B'nA o8 t)e

P)%%pp%nes, 'n '$t)or%ed depos%t'r!, 's s)o?n ! t)e #ert%8%#'t%on 'tt'#)ed to t)e%r #o(p'%nt. +so

on t)e s'(e d'!, t)e RTC %ss$ed ' rit of Possession.+##ord%n7 to PI+TCO, t)e Go&ern(ent ?'s 'e

to t'Ae possess%on o&er t)e N+I+ > 8'#%%t%es %((ed%'te! '8ter t)e rit of Possession?'s %ss$ed.[18]

Ho?e&er, on 4 'n$'r! 2;;


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#o(pens't%on, t)e ('rAet &'$e o8 t)e propert! 's st'ted %n t)e t'" de#'r't%on or t)e #$rrent ree&'nt

on' &'$'t%on o8 t)e B$re'$ o8 Intern' Re&en$e BIR/, ?)%#)e&er %s )%7)er, 'nd t)e &'$e o8 t)e

%(pro&e(ents 'ndJor str$#t$res $s%n7 t)e rep'#e(ent #ost (et)od.

+##ord%n7!, on t)e 's%s o8 Se#t%ons 4 'nd : o8 Rep. +#t No. 9:4 'nd Se#t%on 1; o8 t)e I(pe(ent%n7R$es, t)e RTC ('de Ae! =$'%8%#'t%ons to %ts e'r%er %ss$'n#es. !irst, %t d%re#ted t)e L'nd B'nA o8 t)e

P)%%pp%nes, B'#'r'n Br'n#) LBPB'#'r'n/, to %((ed%'te! ree'se t)e '(o$nt o8 USK62,>4>,1:


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pre%(%n'r! %n$n#t%on ?'s 7r'nted ! t)%s Co$rt %n 'Resolution d'ted 14 'n$'r! 2;; %%on

to PI+TCO #ons%der%n7 t)'t t)e 'ssessed &'$e 's 'e7ed %n t)e #o(p'%nt ?'s on! P> B%%on

%%%/ t)'t t)e RTC #o$d not )'&e pro)%%ted t)e Go&ern(ent 8ro( eno%n%n7 t)e per8or('n#e o8 '#ts o8

o?ners)%p

%&/ t)'t t)e 'ppo%nt(ent o8 t)e t)ree #o((%ss%oners ?'s erroneo$s 'nd

&/ t)'t Hon. G%n7o!on s)o$d e #o(peed to %n)%%t )%(se8 8ro( t)e e"propr%'t%on #'se.[22]

Be8ore ?e de&e %nto t)e (er%ts o8 t)e %ss$es r'%sed ! t)e Go&ern(ent, %t %s essent%' to #ons%der

t)e #r$#%' )od%n7 o8 t)e Co$rt %n %ts 2;;4 Reso$t%on %n Agan, ?)%#) ?e repe't eo?-

T)%s Co$rt, )o?e&er, %s not $n(%nd8$ o8 t)e re'%t! t)'t t)e str$#t$res #o(pr%s%n7 t)e N+I+IPT III 8'#%%t! 're '(ost #o(pete 'nd t)'t 8$nds )'&e een spent ! PI+TCO %n t)e%r

#onstr$#t%on. 'or the government to ta(e over the said facility it has to compensate

respondent #I%TCO as builder of the said structures& The compensation must be "ust

and in accordance !ith la! and e)uity for the government can not un"ustly enrich

itself at the expense of #I%TCO and its investors.[23]
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T)%s prono$n#e(ent #ont'%ns t)e 8$nd'(ent' pre(%ses ?)%#) per(e'te t)%s de#%s%on o8 t)e

Co$rt. Indeed, Agan, 8%n' 'nd e"e#$tor! 's %t %s, st'nds 's 7o&ern%n7 '? %n t)%s #'se, 'nd 'n!

d%spos%t%on o8 t)e present pet%t%on ($st #on8or( to t)e #ond%t%ons '%d do?n ! t)e Co$rt %n %ts 2;;4

Resolution.

T"e %&&' Resolution "ic" Is

(a) of T"is Case *enerally

Permits +propriation

The pronouncement in the *++, -esolution is especially significant to this case in t!o aspects

namely. /i0 that #I%TCO must receive payment of "ust compensation determined in accordance

!ith la! and e)uity1 and /ii0 that the government is barred from ta(ing over N%I% 2 until such

"ust compensation is paid. T)e p'rt%es #'nnot e 'o?ed to e&'de t)e d%re#t%&es '%d do?n ! t)%s

Co$rt t)ro$7) 'n! (ode o8 $d%#%' '#t%on, s$#) 's t)e #o(p'%nt 8or e(%nent do('%n.

It #'nnot e den%ed t)o$7) t)'t t)e Co$rt %n t)e 2;;4 Reso$t%on pres#r%ed ('nd'tor! 7$%de%nes

?)%#) t)e Go&ern(ent ($st oser&e e8ore %t #o$d '#=$%re t)e N+I+ > 8'#%%t%es. T)$s, t)e '#t%ons o8

respondent $d7e $nder re&%e?, 's ?e 's t)e 'r7$(ents o8 t)e p'rt%es ($st, to (er%t '88%r('t%on, p'ss

t)e t)res)od test o8 ?)et)er s$#) propos%t%ons 're %n '##ord ?%t) t)e 2;;4 Reso$t%on.

T)e Go&ern(ent does not #ontest t)e e88%#'#! o8 t)%s prono$n#e(ent %n t)e 2;;4Resolution,[24]t)$s

%ts 'pp%#'t%on
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to t)e #'se 't 'r %s not ' ('tter o8 #ontro&ers!. O8 #o$rse, =$est%ons s$#) 's ?)'t %s t)e st'nd'rd o8

D$st #o(pens't%on 'nd ?)%#) p'rt%#$'r '?s 'nd e=$%t'e pr%n#%pes 're 'pp%#'e, re('%n %n

d%sp$te 'nd s)' e reso&ed 8ort)?%t).

T)e Go&ern(ent )'s #)osen to resort to e"propr%'t%on, ' re(ed! '&'%'e $nder t)e '?, ?)%#) )'s

t)e 'dded ene8%t o8 'n %nte7r'ted pro#ess 8or t)e deter(%n't%on o8 $st #o(pens't%on 'nd t)e p'!(ent

t)ereo8 to PI+TCO. e 'ppre#%'te t)'t t)e #'se 't 'r %s ' )%7)! $n$s$' #'se, ?)ere! t)e

Go&ern(ent seeAs to e"propr%'te ' $%d%n7 #o(pe" #onstr$#ted on 'nd ?)%#) t)e St'te 're'd! o?ns.

[25]T)ere %s 'n %n)erent %o7%# %n t)e resort to e(%nent do('%n on propert! 're'd! o?ned ! t)e

St'te. +t 8%rst $s), s%n#e t)e St'te 're'd! o?ns t)e propert! on ?)%#) N+I+ > st'nds, t)e proper

re(ed! s)o$d e 'A%n to 'n '#t%on 8or ee#t(ent.

Ho?e&er, t)e re'son 8or t)e resort ! t)e Go&ern(ent to e"propr%'t%on pro#eed%n7s %s

$nderst'nd'e %n t)%s #'se. T)e 2;;4 Reso$t%on, %n re=$%r%n7 t)e p'!(ent o8 $st #o(pens't%on pr%or

to t)e t'Aeo&er ! t)e Go&ern(ent o8


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N+I+ >, e88e#t%&e! pre#$ded %t 8ro( '#=$%r%n7 possess%on or o?ners)%p o8 t)e N+I+ > t)ro$7) t)e

$n%'ter' e"er#%se o8 %ts r%7)ts 's t)e o?ner o8 t)e 7ro$nd on ?)%#) t)e 8'#%%t%es stood. T)$s, 's t)%n7s

stood '8ter t)e 2;;4 Reso$t%on, t)e r%7)t o8 t)e Go&ern(ent to t'Ae o&er t)e N+I+ > ter(%n' ?'s

pre#ond%t%oned ! '?8$ order on t)e p'!(ent o8 $st #o(pens't%on to PI+TCO 's $%der o8 t)e

str$#t$res.

T)e deter(%n't%on o8 $st #o(pens't%on #o$d &er! ?e e '7reed $pon ! t)e p'rt%es ?%t)o$t $d%#%'

%nter&ent%on, 'nd %t 'ppe'rs t)'t steps to?'rds t)'t d%re#t%on )'d een en7'7ed %n. St%, $t%('te!, t)e

Go&ern(ent resorted to %ts %n)erent po?er o8 e(%nent do('%n t)ro$7) e"propr%'t%on pro#eed%n7s. Is

e(%nent do('%n 'ppropr%'te %n t)e 8%rst p'#e, ?%t) d$e re7'rd not on! to t)e '? on e"propr%'t%on $t

'so to t)e Co$rt@s 2;;4 Reso$t%on %nAganM

T)e r%7)t o8 e(%nent do('%n e"tends to person' 'nd re' propert!, 'nd t)e N+I+ > str$#t$res, 'd)ered

's t)e! 're to t)e so%, 're #ons%dered 's re' propert!.[26]T)e p$%# p$rpose 8or t)e e"propr%'t%on %s

'so e!ond d%sp$te. It s)o$d 'so e noted t)'t Se#t%on 1 o8 R$e 6: on E"propr%'t%on/ re#o7n%es t)e

poss%%%t! t)'t t)e propert! so$7)t to e e"propr%'ted ('! e t%ted %n t)e n'(e o8 t)e


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%n t)%s #'se to t)e e"#$s%on o8 ' ot)er '?s. On t)e ot)er )'nd, PI+TCO #'%(s t)'t %t %s Rep. +#t No.

9:4 ?)%#) does 'pp!. E'r%er, ?e )'d 'd&erted to t)e 's%# d%88eren#es et?een t)e st't$te 'nd t)e

pro#ed$r' r$e. F$rt)er e'or't%on %s %n order.

R$e 6: o$t%nes t)e pro#ed$re $nder ?)%#) e(%nent do('%n ('! e e"er#%sed ! t)e

Go&ern(ent. et ! no (e'ns does %t ser&e 't present 's t)e so%t'r! 7$%de%ne t)ro$7) ?)%#) t)e St'te

('! e"propr%'te pr%&'te propert!. For e"'(pe, Se#t%on 19 o8 t)e Lo#' Go&ern(ent Code 7o&erns 's

to t)e e"er#%se ! o#' 7o&ern(ent $n%ts o8 t)e po?er o8 e(%nent do('%n t)ro$7) 'n en'%n7

ord%n'n#e. +nd t)en t)ere %s Rep. +#t No. 9:4, ?)%#) #o&ers e"propr%'t%on pro#eed%n7s %ntended 8or

n't%on' 7o&ern(ent %n8r'str$#t$re proe#ts.

Rep. +#t No. 9:4, ?)%#) pro&%des 8or ' pro#ed$re e(%nent! (ore 8'&or'e to t)e propert!

o?ner t)'n R$e 6:, %nes#'p'! 'pp%es %n %nst'n#es ?)en t)e n't%on' 7o&ern(ent e"propr%'tes

propert! D8or n't%on' 7o&ern(ent %n8r'str$#t$re proe#ts.[28]T)$s, %8 e"propr%'t%on %s en7'7ed %n !

t)e n't%on' 7o&ern(ent 8or p$rposes ot)er t)'n n't%on' %n8r'str$#t$re proe#ts, t)e 'ssessed &'$e

st'nd'rd 'nd t)e depos%t (ode pres#r%ed %n R$e 6: #ont%n$es to 'pp!.

Under ot) R$e 6: 'nd Rep. +#t No. 9:4, t)e Go&ern(ent #o((en#es e"propr%'t%on

pro#eed%n7s t)ro$7) t)e 8%%n7 o8 ' #o(p'%nt. Un%Ae %n t)e #'se o8 o#' 7o&ern(ents ?)%#)

ne#ess%t'te 'n '$t)or%%n7 ord%n'n#e e8ore e"propr%'t%on ('! e '##o(p%s)ed, t)ere %s no need $nder

R$e 6: or Rep. +#t No. 9:4 8or e7%s't%&e '$t)or%'t%on e8ore t)e Go&ern(ent ('! pro#eed ?%t) '

p'rt%#$'r e"er#%se o8 e(%nent do('%n. T)e (ost #r$#%' d%88eren#e et?een R$e 6: 'nd Rep. +#t No.

9:4 #on#erns t)e p'rt%#$'r essent%' step t)e Go&ern(ent )'s to $ndert'Ae to e ent%ted to ' ?r%t o8

possess%on.

T)e 8%rst p'r'7r'p) o8 Se#t%on 2 o8 R$e 6: pro&%des-


13/41

SEC. 2. Entr! o8 p'%nt%88 $pon depos%t%n7 &'$e ?%t) '$t)or%ed 7o&ern(ent depos%tor!.

Upon t)e 8%%n7 o8 t)e #o(p'%nt or 't 'n! t%(e t)ere'8ter 'nd '8ter d$e not%#e to t)e

de8end'nt, t)e p'%nt%88 s)' )'&e t)e r%7)t to t'Ae or enter $pon t)e possess%on o8 t)e re'

propert! %n&o&ed %8 he deposits !ith the authori3ed government depositary an amount

e)uivalent to the assessed value of the property for purposes of taxation to be held by

such ban( sub"ect to the orders of the court& Such deposit shall be in money unless in

lieu thereof the court authori3es the deposit of a certificate of deposit of a government

ban( of the -epublic of the #hilippinespayable on demand to the authori3ed

government depositary&

In #ontr'st, Se#t%on 4 o8 Rep. +#t No. 9:4 ree&'nt! st'tes-

SEC. 4. *uidelines for +propriation Proceedings. )ene&er %t %s ne#ess'r! to '#=$%re

re' propert! 8or t)e r%7)to8?'!, s%te or o#'t%on 8or 'n! n't%on' 7o&ern(ent %n8r'str$#t$re proe#t

t)ro$7) e"propr%'t%on, t)e 'ppropr%'te pro#eed%n7s e8ore t)e proper #o$rt $nder t)e 8oo?%n7

7$%de%nes-

'/ Upon t)e 8%%n7 o8 t)e #o(p'%nt, 'nd '8ter d$e not%#e to t)e de8end'nt, t)e

%(pe(ent%n7 '7en#! s)' %((ed%'te! p'! t)e o?ner o8 t)e propert! t)e '(o$nt

e=$%&'ent to t)e s$( o8 1/ one )$ndred per#ent 1;;/ o8 t)e &'$e o8 t)e propert!'sed on t)e #$rrent ree&'nt on' &'$'t%on o8 t)e B$re'$ o8 Intern' Re&en$e

BIR/ 'nd 2/ t)e &'$e o8 t)e %(pro&e(ents 'ndJor str$#t$res 's deter(%ned $nder

Se#t%on : )ereo8

. . .

#/ In #'se t)e #o(pet%on o8 ' 7o&ern(ent %n8r'str$#t$re proe#t %s o8 $t(ost $r7en#!

'nd %(port'n#e, 'nd t)ere %s no e"%st%n7 &'$'t%on o8 t)e 're' #on#erned, t)e

%(pe(ent%n7 '7en#! s)' %((ed%'te! p'! t)e o?ner o8 t)e propert! %ts pro88ered&'$e t'A%n7 %nto #ons%der't%on t)e st'nd'rds pres#r%ed %n Se#t%on < )ereo8.

Upon #o(pet%on ?%t) t)e 7$%de%nes 'o&e(ent%oned, t)e #o$rt s)' %((ed%'te! %ss$e to

t)e %(pe(ent%n7 '7en#! 'n order to t'Ae possess%on o8 t)e propert! 'nd st'rt t)e

%(pe(ent't%on o8 t)e proe#t.


14/41

Be8ore t)e #o$rt #'n %ss$e ' r%t o8 Possess%on, t)e %(pe(ent%n7 '7en#! s)' present to

t)e #o$rt ' #ert%8%#'te o8 '&'%'%%t! o8 8$nds 8ro( t)e proper o88%#%' #on#erned.

. . .

+s #'n e 7e'ned 8ro( t)e 'o&e=$oted te"ts, R$e 6: (ere! re=$%res t)e Go&ern(ent to

depos%t ?%t) 'n '$t)or%ed 7o&ern(ent depos%t'r! t)e 'ssessed &'$e o8 t)e propert! 8or e"propr%'t%on

8or %t to e ent%ted to ' ?r%t o8 possess%on. On t)e ot)er )'nd, Rep. +#t No. 9:4 re=$%res t)'t t)e

Go&ern(ent ('Ae ' d%re#t p'!(ent to t)e propert! o?ner e8ore t)e ?r%t ('! %ss$e. oreo&er, s$#)

p'!(ent %s 'sed on t)e on' &'$'t%on o8 t)e BIR %n t)e #'se o8 'nd, t)e &'$e o8 t)e %(pro&e(ents

or str$#t$res $nder t)e rep'#e(ent #ost (et)od,[29]or %8 no s$#) &'$'t%on %s '&'%'e 'nd %n #'ses

o8 $t(ost $r7en#!, t)e pro88ered &'$e o8 t)e propert! to e se%ed.

It %s =$%te 'pp'rent ?)! t)e Go&ern(ent ?o$d pre8er to 'pp! R$e 6: %n %e$ o8 Rep. +#t No. 9:4.

Under R$e 6:, %t ?o$d not e o%7ed to %((ed%'te! p'! 'n! '(o$nt to PI+TCO e8ore %t #'n ot'%n

t)e ?r%t o8 possess%on s%n#e ' %t need do %s depos%t t)e '(o$nt e=$%&'ent to t)e 'ssessed &'$e ?%t) 'n

'$t)or%ed 7o&ern(ent depos%t'r!. Hen#e, %t de&otes #ons%der'e e88ort to po%nt o$t t)'t Rep. +#t No.

9:4 does not 'pp! %n t)%s #'se, not?%t)st'nd%n7 t)e $nden%'e re'%t! t)'t N+I+ > %s ' n't%on'

7o&ern(ent proe#t. et, t)ese e88orts 8'%, espe#%'! #ons%der%n7 t)e #ontro%n7 e88e#t o8 t)e 2;;4

Reso$t%on %nAganon t)e 'd$d%#'t%on o8 t)%s #'se.

It %s t)e 8%nd%n7 o8 t)%s Co$rt t)'t t)e st'7%n7 o8 e"propr%'t%on pro#eed%n7s %n t)%s #'se ?%t) t)e

e"#$s%&e $se o8 R$e 6: ?o$d 'o? 8or t)e Go&ern(ent to t'Ae o&er t)e N+I+ > 8'#%%t%es %n '

8's)%on t)'t d%re#t! re$Aes o$r 2;;4 Reso$t%on %nAgan. T)%s Co$rt #'nnot s'n#t%on de&%'t%on 8ro(

%ts o?n 8%n' 'nd e"e#$tor! orders.

Se#t%on 2 o8 R$e 6: pro&%des t)'t t)e St'te Ds)' )'&e t)e r%7)t to t'Ae or enter $pon t)e possess%on o8

t)e re' propert! %n&o&ed %8 t)e p'%nt%88 depos%ts ?%t) t)e '$t)or%ed 7o&ern(ent depos%t'r! 'n

'(o$nt e=$%&'ent to t)e 'ssessed &'$e o8 t)e propert! 8or p$rposes o8 t'"'t%on to e )ed ! s$#)

'nA s$e#t to t)e orders o8 t)e #o$rt.[30]It %s t)$s 'pp'rent t)'t $nder t)e pro&%s%on, ' t)e


15/41

Go&ern(ent need do to ot'%n ' ?r%t o8 possess%on %s to depos%t t)e '(o$nt e=$%&'ent to t)e 'ssessed

&'$e ?%t) 'n '$t)or%ed 7o&ern(ent depos%t'r!.

o$d t)e depos%t $nder Se#t%on 2 o8 R$e 6: s't%s8! t)e re=$%re(ent '%d do?n %n t)e 2;;4 Reso$t%on

t)'t D8or t)e 7o&ern(ent to t'Ae o&er t)e s'%d 8'#%%t!, %t )'s to #o(pens'te respondent PI+TCO 's

$%der o8 t)e s'%d str$#t$resM E&%dent! not.

I8 Se#t%on 2 o8 R$e 6: ?ere to 'pp!, PI+TCO ?o$d e eno%ned 8ro( re#e%&%n7 ' s%n7e #ent'&o 's

$st #o(pens't%on e8ore t)e Go&ern(ent t'Aes o&er t)e N+I+ > 8'#%%t! ! &%rt$e o8 ' ?r%t o8

possess%on. S$#) 'n %n$n#t%on s=$'re! #ontr'd%#ts t)e etter 'nd %ntent o8 t)e 2;;4 Reso$t%on. Hen#e,

t)e pos%t%on o8 t)e Go&ern(ent s'n#t%ons %ts o?n d%sre7'rd or &%o't%on t)e pres#r%pt%on '%d do?n !

t)%s Co$rt t)'t t)ere ($st 8%rst e $st #o(pens't%on p'%d to PI+TCO e8ore t)e Go&ern(ent ('! t'Ae

o&er t)e N+I+ > 8'#%%t%es.

T)$s, 't t)e &er! e'st, R$e 6: #'nnot 'pp! %n t)%s #'se ?%t)o$t &%o't%n7 t)e 2;;4 Reso$t%on.

E&en 'ss$(%n7 t)'t Rep. +#t No. 9:4 does not 7o&ern %n t)%s #'se, %t does not ne#ess'r%! 8oo? t)'t

R$e 6: s)o$d t)en 'pp!. +8ter ', 'd)eren#e to t)e etter o8 Se#t%on 2, R$e 6: ?o$d %n t$rn &%o'te

t)e Co$rt@s re=$%re(ent %n t)e 2;;4 Reso$t%on t)'t t)ere ($st 8%rst e p'!(ent o8 $st #o(pens't%on to

PI+TCO e8ore t)e Go&ern(ent ('! t'Ae o&er t)e propert!.

It %s t)e p'%n %ntent o8 Rep. +#t No. 9:4 to s$persede t)e s!ste( o8 depos%t $nder R$e 6: ?%t)

t)e s#)e(e o8 D%((ed%'te p'!(ent %n #'ses %n&o&%n7 n't%on' 7o&ern(ent %n8r'str$#t$re proe#ts.

T)e 8oo?%n7 port%on o8 t)e Sen'te de%er't%ons, #%ted ! PI+TCO %n %ts e(or'nd$(, %s ?ort)

=$ot%n7 to #o7%t'te on t)e p$rpose e)%nd t)e p'%n (e'n%n7 o8 t)e '?-

THE CH+IR+N SEN. C+ET+NO/. D" " " 4ecause the Senate believes that you (no! !e

have to pay the lando!ners immediately not by treasury bills but by cash .

Since !e are depriving them you (no! upon payment 5no of possession !e might as !ell

pay them as much 5no hindi lang 6+ percent.


16/41

" " "

THE CH+IR+N REP. 0ERG+R+/. +##epted.

" " "

THE CH+IR+N SEN. C+ET+NO/. Oo. Be#'$se t)%s %s re'! %n 8'&or o8 t)e 'ndo?ners, e.

THE CH+IR+N REP. 0ERG+R+/. T)'t@s ?)! ?e need to re'! se#$re t)e '&'%'%%t! o8

8$nds.

" " "

THE CH+IR+N SEN. C+ET+NO/. No no& It7s the same& It says here. iyong first

paragraph diba? Iyong 3onal 8 talagang magbabayad muna& In other !ords you (no!

there must be a payment (aagad& TSN, B%#'(er' Con8eren#e on t)e *%s'7ree%n7 Pro&%s%ons o8

Ho$se B% 1422 'nd Sen'te B% 211:, +$7$st 29, 2;;;, pp. 142;/

" " "

THE CH+IR+N SEN. C+ET+NO/. O(ay o(ay 5no& 9nang:una it is not deposit 5no& It7s

payment&;

REP. B+TERIN+. It7s payment ho payment. Id., p. 6>/[31]

It %Ae?%se e'rs not%n7 t)'t t)e 'ppropr%'te st'nd'rd o8 $st #o(pens't%on %s ' s$st'nt%&e ('tter. It %s

?e ?%t)%n t)e pro&%n#e o8 t)e e7%s't$re to 8%" t)e st'nd'rd, ?)%#) %t d%d t)ro$7) t)e en'#t(ent o8

Rep. +#t No. 9:4. Spe#%8%#'!, t)%s pres#r%es t)e ne? st'nd'rds %n deter(%n%n7 t)e '(o$nt o8 $st#o(pens't%on %n e"propr%'t%on #'ses re't%n7 to n't%on' 7o&ern(ent %n8r'str$#t$re proe#ts, 's ?e 's

t)e ('nner o8 p'!(ent t)ereo8. +t t)e s'(e t%(e, Se#t%on 14 o8 t)e I(pe(ent%n7 R$es re#o7n%es t)e

#ont%n$ed 'pp%#'%%t! o8 R$e 6: on pro#ed$r' 'spe#ts ?)en %t pro&%des D' ('tters re7'rd%n7

de8enses 'nd oe#t%ons to t)e #o(p'%nt, %ss$es on $n#ert'%n o?ners)%p 'nd #on8%#t%n7 #'%(s, e88e#ts

o8 'ppe' on t)e r%7)ts o8 t)e p'rt%es, 'nd s$#) ot)er %n#%dents '88e#t%n7 t)e #o(p'%nt s)' e reso&ed


17/41

$nder t)e pro&%s%ons on e"propr%'t%on o8 R$e 6: o8 t)e R$es o8 Co$rt.[32]

G%&en t)'t t)e 2;;4 Reso$t%on (%%t'tes '7'%nst t)e #ont%n$ed $se o8 t)e nor( $nder Se#t%on 2,

R$e 6:, %s %t t)en poss%e to 'pp! Rep. +#t No. 9:4M e 8%nd t)'t %t %s, 'nd (oreo&er, %ts 'pp%#'t%on%n t)%s #'se #o(pe(ents r't)er t)'n #ontr'&enes t)e pres#r%pt%ons '%d do?n %n t)e 2;;4 Reso$t%on.

Rep. Act 0o. 12' !its

to t"e Situation at 3ar

and Complements t"e

%&&' Agan Resolution

Rep. +#t No. 9:4 %s ent%ted D+n +#t To F'#%%t'te T)e +#=$%s%t%on O8 R%7)tO8'!, S%te OrLo#'t%on For N't%on' Go&ern(ent In8r'str$#t$re Proe#ts +nd For Ot)er P$rposes. O&%o$s!, t)e

'? %s %ntended to #o&er e"propr%'t%on pro#eed%n7s %ntended 8or n't%on' 7o&ern(ent %n8r'str$#t$re

proe#ts. Se#t%on 2 o8 Rep. +#t No. 9:4 e"p'%ns ?)'t 're #ons%dered 's Dn't%on' 7o&ern(ent

proe#ts.

Se#. 2.0ational *overnment Pro4ects. T)e ter( Dn't%on' 7o&ern(ent proe#ts s)'

re8er to ' n't%on' 7o&ern(ent %n8r'str$#t$re, en7%neer%n7 ?orAs 'nd ser&%#e #ontr'#ts,

%n#$d%n7 proe#ts $ndert'Aen ! 7o&ern(ento?ned 'nd #ontroed #orpor't%ons, '

proe#ts #o&ered ! Rep$%# +#t No. 69


18/41


19/41

dee(ed 's t)e Dr%7)to8?'!, Ds%te or Do#'t%on o8 ' n't%on' 7o&ern(ent %n8r'str$#t$re proe#t,

?%t)%n t)e #o&er'7e o8 Rep. +#t No. 9:4.

T)ere %s no do$t t)'t t)e N+I+ > %s not, $nder 'n! sens%e #onte(p't%on, ' Dr%7)to8?'!. et ?e

#'nnot '7ree ?%t) t)e Go&ern(ent@s %ns%sten#e t)'t ne%t)er #o$d N+I+ > e ' Ds%te or Do#'t%on. T)e

pet%t%on =$otes t)e de8%n%t%ons pro&%ded %n B'#A@s L'? *%#t%on'r! o8 Do#'t%on@ 's t)e spe#%8%# p'#e

or pos%t%on o8 ' person or t)%n7 'nd Qs%te@ 's pert'%n%n7 to ' p'#e or o#'t%on or ' p%e#e o8 propert! set

's%de 8or spe#%8%# $se.@[39]et e&en B'#A@s L'? *%#t%on'r! pro&%des t)'t Dt)e ter( s%te does not

o8 %tse8 ne#ess'r%! (e'n ' p'#e or tr'#t o8 'nd 8%"ed ! de8%n%te o$nd'r%es.[40]One ?o$d

'ss$(e t)'t t)e Go&ern(ent, to '#A $p %ts #ontent%on, ?o$d e 'e to po%nt to ' #e'r#$t r$e t)'t '

Ds%te or Do#'t%on e"#$s%&e! re8ers to so%, 7r'ss, pees 'nd ?eeds. T)ere %s none.

Indeed, ?e #'nnot '##ept t)e Go&ern(ent@s propos%t%on t)'t t)e on! propert%es t)'t ('! e

e"propr%'ted $nder Rep. +#t No. 9:4 're p'r#es o8 'nd. Rep. +#t No. 9:4 #onte(p'tes ?%t)%n %ts

#o&er'7e s$#) re' propert! #onst%t$t%n7 'nd, $%d%n7s, ro'ds 'nd #onstr$#t%ons o8 ' A%nds 'd)ered to

t)e so%. Se#t%on 1 o8 Rep. +#t No. 9:4, ?)%#) sets t)e de#'r't%on o8 t)e '?@s po%#!, re8ers to Dre'

propert! '#=$%red 8or n't%on' 7o&ern(ent %n8r'str$#t$re proe#ts 're pro(pt! p'%d $st

#o(pens't%on.[41]Se#t%on 4 %s =$%te e"p%#%t %n st't%n7 t)'t t)e s#ope o8 t)e '? re'tes to t)e

'#=$%s%t%on o8 Dre' propert!, ?)%#) $nder #%&% '? %n#$des $%d%n7s, ro'ds 'nd #onstr$#t%ons

'd)ered to t)e so%.

It %s (oreo&er 'pp'rent t)'t t)e '? 'nd %ts %(pe(ent%n7 r$es #o((on! pro&%de 8or ' r$e 8or t)e

&'$'t%on o8 %(pro&e(ents 'ndJor str$#t$res t)ere$pon sep'r'te 8ro( t)'t o8 t)e 'nd on ?)%#) s$#) 're

#onstr$#ted. Se#t%on 2 o8 Rep. +#t No. 9:4 %tse8 re#o7n%es t)'t t)e %(pro&e(ents or str$#t$res on

t)e 'nd ('! &er! ?e e t)e s$e#t o8 e"propr%'t%on pro#eed%n7s. Se#t%on 4'/, %n re't%on to Se#t%on

: o8 t)e '? pro&%des 8or t)e 7$%de%nes 8or t)e &'$'t%on o8 t)e %(pro&e(ents or str$#t$res to e

e"propr%'ted. Indeed, not)%n7 %n t)e '? ?o$d pro)%%t t)e 'pp%#'t%on o8 Se#t%on :, ?)%#) pro&%des 8or

t)e &'$'t%on (et)od o8 t)e %(pro&e(ents 'nd or str$#t$res %n t)e %nst'n#es ?)ere%n %t %s ne#ess'r! 8or

t)e Go&ern(ent to e"propr%'te on! t)e %(pro&e(ents or str$#t$res, 's %n t)%s #'se.
http://sc.judiciary.gov.ph/jurisprudence/2005/dec2005/166429.htm#_ftn39http://sc.judiciary.gov.ph/jurisprudence/2005/dec2005/166429.htm#_ftn40http://sc.judiciary.gov.ph/jurisprudence/2005/dec2005/166429.htm#_ftn41http://sc.judiciary.gov.ph/jurisprudence/2005/dec2005/166429.htm#_ftn39http://sc.judiciary.gov.ph/jurisprudence/2005/dec2005/166429.htm#_ftn40http://sc.judiciary.gov.ph/jurisprudence/2005/dec2005/166429.htm#_ftn41


20/41

T)e '? #'ss%8%es t)e N+I+ > 8'#%%t%es 's re' propert%es $st %Ae t)e so% to ?)%#) t)e! 're 'd)ered.

+n! s$#'ss%8%#'t%ons o8 re' propert! 'nd d%&er7ent tre't(ent 'sed t)ere$pon 8or p$rposes o8

e"propr%'t%on ($st e 'sed on s$st'nt%' d%st%n#t%ons, ot)er?%se t)e e=$' prote#t%on #'$se o8 t)e

Const%t$t%on %s &%o'ted. T)ere ('! e per)'ps ' (oe#$'r d%st%n#t%on et?een so% 'nd t)e %nor7'n%#

%(pro&e(ents 'd)ered t)ereto, !et t)ere 're no p$rpos%&e d%st%n#t%ons t)'t ?o$d $st%8! ' &'r%'nt

tre't(ent 8or p$rposes o8 e"propr%'t%on. Bot) t)e 'nd %tse8 'nd t)e %(pro&e(ents t)ere$pon 're

s$s#ept%e to pr%&'te o?ners)%p %ndependent o8 e'#) ot)er, #'p'e o8 pe#$n%'r! est%('t%on, 'nd %8

t'Aen 8ro( t)e o?ner, #ons%dered 's ' depr%&'t%on o8 propert!. T)e o?ner o8 %(pro&e(ents se%ed

t)ro$7) e"propr%'t%on s$88ers t)e s'(e de7ree o8 oss 's t)e o?ner o8 'nd se%ed t)ro$7) s%(%'r

(e'ns. E=$' prote#t%on de('nds t)'t ' persons or t)%n7s s%(%'r! s%t$'ted s)o$d e tre'ted '%Ae,

ot) 's to r%7)ts #on8erred 'nd respons%%%t%es %(posed. For p$rposes o8 e"propr%'t%on, p'r#es o8 'nd

're s%(%'r! s%t$'ted 's t)e $%d%n7s or %(pro&e(ents #onstr$#ted t)ereon, 'nd ' d%sp'r'te tre't(ent

et?een t)ose t?o #'sses o8 re' propert! %n8r%n7es t)e e=$' prote#t%on #'$se.

E&en 's t)e pro&%s%ons o8 Rep. +#t No. 9:4 #' 8or t)'t '?@s 'pp%#'t%on %n t)%s #'se, t)e t)res)od

test ($st st% e (et ?)et)er %ts %(pe(ent't%on ?o$d #on8or( to t)e d%#t'tes o8 t)e Co$rt %n t)e 2;;4

Reso$t%on. Un%Ae %n t)e #'se o8 R$e 6:, t)e 'pp%#'t%on o8 Rep. +#t No. 9:4 ?% not #ontr'&ene t)e

2;;4 Reso$t%on, ?)%#) re=$%res t)e p'!(ent o8 $st #o(pens't%on e8ore 'n! t'Aeo&er o8 t)e N+I+ >

8'#%%t%es ! t)e Go&ern(ent. T)e 2;;4 Reso$t%on does not p'rt%#$'r%e t)e e"tent s$#) p'!(ent ($st

e e88e#ted e8ore t)e t'Aeo&er, $t %t $n=$est%on'! re=$%res 't e'st so(e de7ree o8 p'!(ent to t)e

pr%&'te propert! o?ner e8ore ' ?r%t o8 possess%on ('! %ss$e. T)e $t%%'t%on o8 Rep. +#t No. 9:4

7$'r'ntees #o(p%'n#e ?%t) t)%s 're (%n%($( re=$%re(ent, 's %t 'ss$res t)e pr%&'te propert! o?ner

t)e p'!(ent o8, 't t)e &er! e'st, t)e pro88ered &'$e o8 t)e propert! to e se%ed. S$#) p'!(ent o8 t)e

pro88ered &'$e to t)e o?ner, 8oo?ed ! t)e %ss$'n#e o8 t)e ?r%t o8 possess%on %n 8'&or o8 t)e

Go&ern(ent, %s pre#%se! t)e s#)e('t%# $nder Rep. +#t No. 9:4, one ?)%#) 8'#%'! #o(p%es ?%t) t)e

pres#r%pt%on '%d do?n %n t)e 2;;4 Reso$t%on.

Ce'r! t)en, ?e see no error on t)e p'rt o8 t)e RTC ?)en %t r$ed t)'t Rep. +#t No. 9:4 7o&erns t)e

%nst'nt e"propr%'t%on pro#eed%n7s.


21/41

T"e Proper Amount to $e Paid

under Rep. Act 0o. 12'

T)en, t)ere %s t)e ('tter o8 t)e proper '(o$nt ?)%#) s)o$d e p'%d to PI+TCO ! t)e Go&ern(ent

e8ore t)e ?r%t o8 possess%on ('! %ss$e, #onson'nt to Rep. +#t No. 9:4.

+t t)%s $n#t$re, ?e ($st 'ddress t)e oser&'t%on ('de ! t)e O88%#e o8 t)e So%#%tor Gener' %n e)'8

o8 t)e Go&ern(ent t)'t t)ere #o$d e no DBIR on' &'$'t%ons on t)e N+I+ > 8'#%%t!, 's pro&%ded %n

Rep. +#t No. 9:4, s%n#e on' &'$'t%ons 're on! 8or p'r#es o8 'nd, not 8or '%rport ter(%n's. T)e

Co$rt '7rees ?%t) t)%s po%nt, !et does not see %t 's 'n %(ped%(ent 8or t)e 'pp%#'t%on o8 Rep. +#t No.9:4.

It ($st e #'r%8%ed t)'t PI+TCO #'nnot e re%($rsed or $st! #o(pens'ted 8or t)e &'$e o8 t)e p'r#e

o8 'nd on ?)%#) N+I+ > st'nds. PI+TCO %s not t)e o?ner o8 t)e 'nd on ?)%#) t)e N+I+ > 8'#%%t! %s

#onstr$#ted, 'nd %t s)o$d not e ent%ted to $st #o(pens't%on t)'t %s %n#$s%&e o8 t)e &'$e o8 t)e 'nd

%tse8. It ?o$d e )%7)! d%s%n7en$o$s to #o(pens'te PI+TCO 8or t)e &'$e o8 'nd %t does not o?n. Its

ent%te(ent to $st #o(pens't%on s)o$d e %(%ted to t)e &'$e o8 t)e %(pro&e(ents 'ndJor str$#t$res

t)e(se&es. T)$s, t)e deter(%n't%on o8 $st #o(pens't%on #'nnot %n#$de t)e BIR on' &'$'t%on $nder

Se#t%on 4 o8 Rep. +#t No. 9:4.

Under Rep. +#t No. 9:4, t)e Go&ern(ent %s re=$%red to D%((ed%'te! p'! t)e o?ner o8 t)e propert!t)e '(o$nt e=$%&'ent to t)e s$( o8 1/ one )$ndred per#ent 1;;/ o8 t)e &'$e o8 t)e propert! 'sed

on t)e #$rrent ree&'nt on' &'$'t%on o8 t)e BIR 'nd 2/ t)e &'$e o8 t)e %(pro&e(ents 'ndJor

str$#t$res 's deter(%ned $nder Se#t%on :. +s st'ted 'o&e, t)e BIR on' &'$'t%on #'nnot 'pp! %n t)%s

#'se, t)$s t)e '(o$nt s$e#t to %((ed%'te p'!(ent s)o$d e %(%ted to Dt)e &'$e o8 t)e

%(pro&e(ents 'ndJor str$#t$res 's deter(%ned $nder Se#t%on :, ?%t) Se#t%on : re8err%n7 to t)e


22/41

D%(pe(ent%n7 r$es 'nd re7$'t%ons 8or t)e e=$%t'e &'$'t%on o8 t)e %(pro&e(ents 'ndJor str$#t$res

on t)e 'nd. Under t)e present %(pe(ent%n7 r$es %n p'#e, t)e &'$'t%on o8 t)e

%(pro&e(entsJstr$#t$res 're to e 'sed $s%n7 Dt)e rep'#e(ent #ost (et)od.[42] Ho?e&er, t)e

rep'#e(ent #ost %s on! one o8 t)e 8'#tors to e #ons%dered %n deter(%n%n7 t)e $st #o(pens't%on.

In 'dd%t%on to Rep. +#t No. 9:4, t)e 2;;4Resolution%n Agan 'so ('nd'ted t)'t t)e p'!(ent o8 $st

#o(pens't%on s)o$d e %n '##ord'n#e ?%t) e=$%t! 's ?e. T)$s, %n 's#ert'%n%n7 t)e $t%('te '(o$nt

o8 $st #o(pens't%on, t)e d$t! o8 t)e tr%' #o$rt %s to ens$re t)'t s$#) '(o$nt #on8or(s not on! to t)e

'?, s$#) 's Rep. +#t No. 9:4, $t to pr%n#%pes o8 e=$%t! 's ?e.

+d(%tted!, t)ere %s no ?'!, 't e'st 8or t)e present, to %((ed%'te! 's#ert'%n t)e &'$e o8 t)e

%(pro&e(ents 'nd str$#t$res s%n#e s$#) &'$'t%on %s ' ('tter 8or 8'#t$' deter(%n't%on.[43]et Rep.

+#t No. 9:4 per(%ts 'n e"ped%ted (e'ns ! ?)%#) t)e Go&ern(ent #'n %((ed%'te! t'Ae possess%on

o8 t)e propert! ?%t)o$t )'&%n7 to '?'%t pre#%se deter(%n't%on o8 t)e &'$'t%on. Se#t%on 4#/ o8 Rep. +#t

No. 9:4 st'tes t)'t D%n #'se t)e #o(pet%on o8 ' 7o&ern(ent %n8r'str$#t$re proe#t %s o8 $t(ost $r7en#!

'nd %(port'n#e, and there is no existing valuation of the area concerned, t)e %(pe(ent%n7 '7en#!

s)' %((ed%'te! p'! t)e o?ner o8 t)e propert! %ts proferred value, t'A%n7 %nto #ons%der't%on t)e

st'nd'rds pres#r%ed %n Se#t%on < o8 t)e '?.[44]T)e Dpro88ered &'$e ('! str%Ae 's ' )%7)!

s$e#t%&e st'nd'rd 'sed soe! on t)e %nt$%t%on o8 t)e 7o&ern(ent, $t Rep. +#t No. 9:4 does

pro&%de ree&'nt st'nd'rds ! ?)%#) Dpro88ered &'$e s)o$d e 'sed,[45]'s ?e 's t)e #ert'%nt!


23/41

o8 $d%#%' deter(%n't%on o8 t)e propr%et! o8 t)e pro88ered &'$e.[46]

In 8%%n7 t)e #o(p'%nt 8or e"propr%'t%on, t)e Go&ern(ent 'e7ed to )'&e depos%ted t)e '(o$nt o8 P>

B%%on e'r('rAed 8or e"propr%'t%on, represent%n7 t)e 'ssessed &'$e o8 t)e propert!. T)e ('A%n7 o8 t)e

depos%t, %n#$d%n7 t)e deter(%n't%on o8 t)e '(o$nt o8 t)e depos%t, ?'s $ndert'Aen $nder t)e erroneo$s

not%on t)'t R$e 6:, 'nd not Rep. +#t No. 9:4, %s t)e 'pp%#'e '?. St%, 's re7'rds t)e '(o$nt, t)e

Co$rt sees no %(ped%(ent to re#o7n%e t)%s s$( o8 P> B%%on 's t)e pro88ered &'$e $nder Se#t%on 4/

o8 Rep. +#t No. 9:4. +8ter ', %n t)e %n%t%' deter(%n't%on o8 t)e pro88ered &'$e, t)e Go&ern(ent %s

not str%#t! re=$%red to 'd)ere to 'n! predeter(%ned st'nd'rds, 't)o$7) %ts pro88ered &'$e ('! 'ter e

s$e#ted to $d%#%' re&%e? $s%n7 t)e st'nd'rds en$(er'ted $nder Se#t%on < o8 Rep. +#t No. 9:4.

Ho? s)o$d ?e 'ppre#%'te t)e =$est%oned order o8 Hon. G%n7o!on, ?)%#) pe77ed t)e '(o$nt to e

%((ed%'te! p'%d to PI+TCO 't 'ro$nd K62.> %%onM T)e Order d'ted 4 'n$'r! 2;; ?'s Dnot ess t)'n USK>, t)e '(o$nt depos%ted ! t)e Go&ern(ent #onst%t$ted on! 1 o8 t)%s &'$e. +t t)%s po%nt,

no %nd%n7 %(port s)o$d e 7%&en to t)%s oser&'t%on t)'t t)e '#t$' #ost o8 $%d%n7 N+I+ > ?'s Dnot

ess t)'n USK>


24/41

de#'r't%ons o8 t)e p'rt%es. +t t)e s'(e t%(e, t)e e"pressed %nA'7e et?een t)e BIR on' &'$'t%on

'nd t)e '(o$nt o8 $st #o(pens't%on %n t)%s #'se, %s re&e'tor! o8 erroneo$s t)o$7)t on t)e p'rt o8 t)e

RTC.

e )'&e 're'd! po%nted o$t t)e %rree&'n#e o8 t)e BIR on' &'$'t%on 's 'n 'ppropr%'te 's%s 8or

&'$'t%on %n t)%s #'se, PI+TCO not e%n7 t)e o?ner o8 t)e 'nd on ?)%#) t)e N+I+ > 8'#%%t%es st'nd.

T)e s$e#t order %s 8'?ed %nso8'r 's %t 8'%s to =$'%8! t)'t s$#) st'nd'rd %s %n'ppropr%'te.

It does 'ppe'r t)'t t)e '(o$nt o8 USK62.> %%on ?'s 'sed on t)e #ert%8%#'t%on %ss$ed ! t)e LBP

B'#'r'n t)'t t)e Rep$%# o8 t)e P)%%pp%nes ('%nt'%ned ' tot' ''n#e %n t)'t r'n#) '(o$nt%n7 to

s$#) '(o$nt. et t)e '#t$' represent't%on o8 t)e K62.> %%on %s not #e'r. T)e L'nd B'nA

Cert%8%#'t%on e"press%n7 s$#) '(o$nt does st'te t)'t %t ?'s %ss$ed $pon re=$est o8 t)e 'n%'

Intern't%on' +%rport +$t)or%t! Dp$rported! 's 7$'r'nt! depos%t 8or t)e e"propr%'t%on #o(p'%nt.[48]

T)e Go&ern(ent #'%(s %n %ts e(or'nd$( t)'t t)e ent%re '(o$nt ?'s ('de '&'%'e 's ' 7$'r'nt!

8$nd 8or t)e 8%n' 'nd e"e#$tor! $d7(ent o8 t)e tr%' #o$rt, 'nd not (ere! 8or t)e %ss$'n#e o8 t)e ?r%t

o8 possess%on.[49]One #o$d re'd%! #on#$de t)'t t)e ent%re '(o$nt o8 USK62.> %%on ?'s

%ntended ! t)e Go&ern(ent to 'ns?er 8or ?)'te&er 7$'r'nt%es ('! e re=$%red 8or t)e p$rpose o8 t)e

e"propr%'t%on #o(p'%nt.

St%, s$#) %ntent%on t)e Go&ern(ent ('! )'&e )'d 's to t)e ent%re USK62.> %%on %s on! %n8erent%'!

est'%s)ed. In 's#ert'%n%n7 t)e pro88ered &'$e 'dd$#ed ! t)e Go&ern(ent, t)e '(o$nt o8 P> B%%on

's t)e '(o$nt depos%ted #)'r'#ter%ed %n t)e #o(p'%nt 's Dto e )ed ! L'nd B'nA s$e#t to t)e

RTC@s orders,[50]s)o$d e dee(ed 's #ontro%n7. T)ere %s no #e'r e&%den#e t)'t t)e Go&ern(ent

%ntended to o88er USK62.> %%on 's t)e %n%t%' p'!(ent o8 $st #o(pens't%on, t)e ?ord%n7 o8 t)e L'nd

B'nA Cert%8%#'t%on not?%t)st'nd%n7, 'nd #reden#e s)o$d e 7%&en to t)e #ons%stent pos%t%on o8 t)e

Go&ern(ent on t)'t 'spe#t.

In 'n! e&ent, 8or t)e RTC to e 'e to $st%8! t)e p'!(ent o8 USK62.> %%on to PI+TCO 'nd not P>

B%%on Pesos, )e ?o$d )'&e to est'%s) t)'t t)e )%7)er '(o$nt represents t)e &'$'t%on o8 t)e


25/41

str$#t$resJ%(pro&e(ents, 'nd not t)e BIR on' &'$'t%on on t)e 'nd ?)ere%n N+I+ > %s $%t. T)e

Orderd'ted < 'n$'r! 2;;< 8'%s to est'%s) s$#) %nte7r' 8'#t, 'nd %n t)e 'sen#e o8 #ontr'&en%n7

proo8, t)e pro88ered &'$e o8 P> B%%on, 's presented ! t)e Go&ern(ent, s)o$d pre&'%.

Str%A%n7!, t)e Go&ern(ent s$(%ts t)'t 'ss$(%n7 t)'t Rep. +#t No. 9:4 %s 'pp%#'e, t)e depos%ted

'(o$nt o8 P> B%%on s)o$d e #ons%dered 's t)e pro88ered &'$e, s%n#e t)e '(o$nt ?'s 'sed on

#o(p'r't%&e &'$es ('de ! t)e C%t! +ssessor.[51]+##ord%n7!, %t s)o$d e dee(ed 's )'&%n7

8'%t)8$! #o(p%ed ?%t) t)e re=$%re(ents o8 t)e st't$te.[52])%e t)e Co$rt '7rees t)'t P> B%%on

s)o$d e #ons%dered 's t)e #orre#t pro88ered &'$e, st% ?e #'nnot dee( t)e Go&ern(ent 's )'&%n7

8'%t)8$! #o(p%ed ?%t) Rep. +#t No. 9:4. For t)e '? p'%n! re=$%res d%re#t p'!(ent to t)e propert!

o?ner, 'nd not ' (ere depos%t ?%t) t)e '$t)or%ed 7o&ern(ent depos%t'r!. %t)o$t s$#) d%re#tp'!(ent, no ?r%t o8 possess%on ('! e ot'%ned.

rit of Possession May 0ot

3e Implemented #ntil Actual

Receipt $y PIATCO of Proferred

/alue

T)e Co$rt t)$s 8%nds 'not)er error on t)e p'rt o8 t)e RTC. T)e RTC '$t)or%ed t)e %ss$'n#e o8 t)e ?r%t

o8 possess%on to t)e Go&ern(ent not?%t)st'nd%n7 t)e 8'#t t)'t no p'!(ent o8 'n! '(o$nt )'d !et een

('de to PI+TCO, desp%te t)e #e'r #o(('nd o8 Rep. +#t No. 9:4 t)'t t)ere ($st 8%rst e p'!(ent

e8ore t)e ?r%t o8 possess%on #'n %ss$e. )%e t)e RTC d%d d%re#t t)e LBPB'#'r'n to %((ed%'te!

ree'se t)e '(o$nt o8 USK62 %%on to PI+TCO, %t s)o$d )'&e %Ae?%se s$spended t)e ?r%t o8

possess%on, n'!, ?%t)dr'?n %t 'to7et)er, $nt% t)e Go&ern(ent s)' )'&e '#t$'! p'%d PI+TCO. T)%s

%s t)e %ne&%t'e #onse=$en#e o8 t)e #e'r #o(('nd o8 Rep. +#t No. 9:4 t)'t re=$%res %((ed%'te

p'!(ent o8 t)e %n%t%'! deter(%ned '(o$nt o8 $st #o(pens't%on s)o$d e e88e#ted. Ot)er?%se, t)e

o&erpo?er%n7 %ntent%on o8 Rep. +#t No. 9:4 o8 ens$r%n7 p'!(ent 8%rst e8ore tr'ns8er o8 repossess%on

?o$d e e&%s#er'ted.


26/41

Rep. +#t No. 9:4 represents ' s%7n%8%#'nt #)'n7e 8ro( pre&%o$s e"propr%'t%on '?s s$#) 's R$e 6:, or

e&en Se#t%on 19 o8 t)e Lo#' Go&ern(ent Code. R$e 6: 'nd t)e Lo#' Go&ern(ent Code (ere!

pro&%ded t)'t t)e Go&ern(ent depos%t t)e %n%t%' '(o$nts[53]'nte#edent to '#=$%r%n7 possess%on o8

t)e propert! ?%t), respe#t%&e!, 'n '$t)or%ed

Go&ern(ent depos%t'r![54]or t)e proper #o$rt.[55]In ot) #'ses, t)e pr%&'te o?ner does not re#e%&e

#o(pens't%on pr%or to t)e depr%&'t%on o8 propert!. On t)e ot)er )'nd, Rep. +#t No. 9:4 ('nd'tes

%((ed%'te p'!(ent o8 t)e %n%t%' $st #o(pens't%on pr%or to t)e %ss$'n#e o8 t)e ?r%t o8 possess%on %n

8'&or o8 t)e Go&ern(ent.

Rep. +#t No. 9:4 %s p'%n! #e'r %n %(pos%n7 t)e re=$%re(ent o8 %((ed%'te prep'!(ent, 'nd no

'(o$nt o8 st't$tor! de#onstr$#t%on #'n e&'de s$#) re=$%s%te. It ens)r%nes ' ne? 'ppro'#) to?'rds

e(%nent do('%n t)'t re#on#%es t)e %n)erent $ne'se 'ttend%n7 e"propr%'t%on pro#eed%n7s ?%t) ' pos%t%on

o8 8$nd'(ent' e=$%t!. )%e e"propr%'t%on pro#eed%n7s )'&e '?'!s de('nded $st #o(pens't%on %n

e"#)'n7e 8or pr%&'te propert!, t)e pre&%o$s depos%t re=$%re(ent %(peded %((ed%'te #o(pens't%on to

t)e pr%&'te o?ner, espe#%'! %n #'ses ?)ere%n t)e deter(%n't%on

o8 t)e 8%n' '(o$nt o8 #o(pens't%on ?o$d pro&e )%7)! d%sp$ted. Under t)e ne? (od'%t! pres#r%ed

! Rep. +#t No. 9:4, t)e pr%&'te o?ner sees %((ed%'te (onet'r! re#o(pense ?%t) t)e s'(e de7ree o8

speed 's t)e t'A%n7 o8 )%sJ)er propert!.

)%e e(%nent do('%n %es 's one o8 t)e %n)erent po?ers o8 t)e St'te, t)ere %s no re=$%re(ent t)'t %t

$ndert'Ae ' proon7ed pro#ed$re, or t)'t t)e p'!(ent o8 t)e pr%&'te o?ner e protr'#ted 's 8'r 's

pr'#t%#'e. In 8'#t, t)e e"ped%ted pro#ed$re o8 p'!(ent, 's )%7)%7)ted $nder Rep. +#t No. 9:4, %s

%n)erent! (ore 8'%r, espe#%'! to t)e '!person ?)o ?o$d e )'rdpressed to 8$! #o(pre)end t)e

so#%' &'$e o8 e"propr%'t%on %n t)e 8%rst p'#e. I((ed%'te p'!(ent p'#'tes to so(e de7ree ?)'te&er

%?% t)'t 'r%ses 8ro( e"propr%'t%on, 's ?e 's s't%s8%es t)e de('nd o8 's%# 8'%rness.

T)e Co$rt )'s t)e d$t! to %(pe(ent Rep. +#t No. 9:4 'nd to d%re#t #o(p%'n#e ?%t) t)e

re=$%re(ent o8 %((ed%'te p'!(ent %n t)%s #'se. +##ord%n7!, t)e r%t o8 Possess%on d'ted 21


27/41

*e#e(er 2;;4 s)o$d e )ed %n 'e!'n#e, pend%n7 proo8 o8 '#t$' p'!(ent ! t)e Go&ern(ent to

PI+TCO o8 t)e pro88ered &'$e o8 t)e N+I+ > 8'#%%t%es, ?)%#) tot's P>,;;2,12 re('%n%n7 (ot)'ed. For


28/41


29/41

+t t)e s'(e t%(e, Tagle#on8or(s to t)e o&%o$s, t)'t t)ere %s no tr'ns8er o8 o?ners)%p 's o8 !et !

&%rt$e o8 t)e ?r%t o8 possess%on. Tagle('! #on#ede t)'t t)e Go&ern(ent %s ent%ted to e"er#%se (ore

t)'n $st t)e r%7)t o8 possess%on ! &%rt$e o8 t)e ?r%t o8 possess%on, !et %t #'nnot e #onstr$ed to 7r'nt

t)e Go&ern(ent t)e ent%re p'nop! o8 r%7)ts t)'t 're '&'%'e to t)e o?ner. Cert'%n!, ne%t)er Taglenor

'n! ot)er #'se or '?, ends s$pport to t)e Go&ern(ent@s propos%t%on t)'t %t '#=$%res ene8%#%' or

e=$%t'e o?ners)%p o8 t)e e"propr%'ted propert! (ere! t)ro$7) t)e ?r%t o8 possess%on.

Indeed, t)%s Co$rt )'s een &%7%'nt %n de8ense o8 t)e r%7)ts o8 t)e propert! o?ner ?)o )'s een

&'%d! depr%&ed o8 possess%on, !et ret'%ns e7' t%te o&er t)e e"propr%'ted propert! pend%n7 p'!(ent o8

$st #o(pens't%on. e re%ter'ted t)e &'r%o$s do#tr%nes o8 s$#) %(port %n o$r re#ent )od%n7 %nRepu$lic

v. (im5[60]

T)e re#o7n%ed r$e %s t)'t t%te to t)e propert! e"propr%'ted s)' p'ss 8ro( t)e o?ner to t)e

e"propr%'tor on! upon full payment of the "ust compensation . $r%spr$den#e on t)%s setted pr%n#%pe

%s #ons%stent ot) )ere 'nd %n ot)er de(o#r't%# $r%sd%#t%ons. InAssociation of Small (ando)ners in t"e

P"ilippines, Inc. et al., vs. Secretary of Agrarian Reform[61], t)$s-

DTitle to property !hich is the sub"ect of condemnation proceedings does not vest the condemnor

until the "udgment fixing "ust compensation is entered and paid $t t)e #onde(nor@s t%te re'tes

'#A to t)e d'te on ?)%#) t)e pet%t%on $nder t)e E(%nent *o('%n +#t, or t)e #o((%ss%oner@s report

$nder t)e Lo#' I(pro&e(ent +#t, %s 8%ed.

x x x %lthough the right to appropriate and use land ta(en for a canal is complete at the time of

entry title to the property ta(en remains in the o!ner until payment is actually made&E(p)'s%s

s$pp%ed./

In6ennedy v. Indianapolis, t)e US S$pre(e Co$rt #%ted se&er' #'ses )od%n7 t)'t t%te to propert!does not p'ss to t)e #onde(nor $nt% $st #o(pens't%on )'d '#t$'! een ('de. In 8'#t, t)e de#%s%ons

'ppe'r to e $n%8or( to t)%s e88e#t. +s e'r! 's 1>, %nRu$ottom v. Mc(ure, %t ?'s )ed t)'t Qactual

payment to the o!ner of the condemned property !as a condition precedent to the investment of

the title to the property in the State7 albeit 5not to the appropriation of it to public use&7 InReford

v. 6nig"t, t)e Co$rt o8 +ppe's o8 Ne? orA s'%d t)'t t)e #onstr$#t%on $pon t)e st't$tes ?'s t)'t t)e 8ee

d%d not &est %n t)e St'te $nt% t)e p'!(ent o8 t)e #o(pens't%on 't)o$7) t)e '$t)or%t! to enter $pon 'nd

'ppropr%'te t)e 'nd ?'s #o(pete pr%or to t)e p'!(ent. enned! 8$rt)er s'%d t)'t Qboth on principle


30/41

and authority the rule is & & & that the right to enter on and use the property is complete as soon as

the property is actually appropriated under the authority of la! for a public use but that the title

does not pass from the o!ner !ithout his consent until "ust compensation has been made to

him&;

O$r o?n S$pre(e Co$rt )'s )ed %n /isayan Refining Co. v. Camus and Paredes, t)'t-

QIf the la!s !hich !e have exhibited or cited in the preceding discussion are attentively examined

it !ill be apparent that the method of expropriation adopted in this "urisdiction is such as to

afford absolute reassurance that no piece of land can be finally and irrevocably ta(en from an

un!illing o!ner until compensation is paid&&&&7;E(p)'s%s s$pp%ed./

Ce'r!, ?%t)o$t 8$ p'!(ent o8 $st #o(pens't%on, t)ere #'n e no tr'ns8er o8 t%te 8ro( t)e 'ndo?ner

to t)e e"propr%'tor. Ot)er?%se st'ted, t)e Rep$%#@s '#=$%s%t%on o8 o?ners)%p %s #ond%t%oned $pon t)e

8$ p'!(ent o8 $st #o(pens't%on ?%t)%n ' re'son'e t%(e.

S%7n%8%#'nt!, %nMunicipality of 3i7an v. *arcia[62] t)%s Co$rt r$ed t)'t t)e e"propr%'t%on o8 'nds

#ons%sts o8 t?o st'7es, to ?%t-

D" " " T)e first%s #on#erned ?%t) t)e deter(%n't%on o8 t)e '$t)or%t! o8 t)e p'%nt%88 to e"er#%se t)e

po?er o8 e(%nent do('%n 'nd t)e propr%et! o8 %ts e"er#%se %n t)e #onte"t o8 t)e 8'#ts %n&o&ed %n t)e

s$%t. It ends ?%t) 'n order, %8 not o8 d%s(%ss' o8 t)e '#t%on, Do8 #onde(n't%on de#'r%n7 t)'t t)e

p'%nt%88 )'s ' '?8$ r%7)t to t'Ae t)e propert! so$7)t to e #onde(ned, 8or t)e p$%# $se or p$rpose

des#r%ed %n t)e #o(p'%nt, $pon t)e p'!(ent o8 $st #o(pens't%on to e deter(%ned 's o8 t)e d'te o8

t)e 8%%n7 o8 t)e #o(p'%nt " " ".

T)e secondp)'se o8 t)e e(%nent do('%n '#t%on %s #on#erned ?%t) t)e deter(%n't%on ! t)e #o$rt o8

Dt)e $st #o(pens't%on 8or t)e propert! so$7)t to e t'Aen. T)%s %s done ! t)e #o$rt ?%t) t)e

'ss%st'n#e o8 not (ore t)'n t)ree >/ #o((%ss%oners. " " ".

It %s on! $pon t)e #o(pet%on o8 t)ese t?o st'7es t)'t e"propr%'t%on %s s'%d to )'&e een #o(peted. In

Repu$lic v. Salem Investment Corporation[63] , ?e r$ed t)'t, Dt)e pro#ess %s not #o(peted $nt%

p'!(ent o8 $st #o(pens't%on. T)$s, )ere, t)e 8'%$re o8 t)e Rep$%# to p'! respondent 'nd )%s

prede#essors%n%nterest 8or ' per%od o8


31/41

possessor pend%n7 t)e 8%n' p'!(ent o8 $st #o(pens't%on, ?%t)o$t d%(%n%s)%n7 t)e poten#! o8 s$#)

r%7)ts. Indeed, t)e p$%# po%#!, ens)r%ned 8ore(ost %n t)e Const%t$t%on, ('nd'tes t)'t t)e Go&ern(ent

($st p'! 8or t)e pr%&'te propert! %t e"propr%'tes. Conse=$ent!, t)e proper $d%#%' 'tt%t$de %s to

7$'r'ntee #o(p%'n#e ?%t) t)%s pr%(ord%' r%7)t to $st #o(pens't%on.

!inal 8etermination of Just

Compensation it"in -& 8ays

T)e %ss$'n#e o8 t)e ?r%t o8 possess%on does not ?r%te finis to t)e e"propr%'t%on pro#eed%n7s. +s

e'r%er po%nted o$t, e"propr%'t%on %s not #o(peted $nt% p'!(ent to t)e propert! o?ner o8 $st#o(pens't%on. T)e pro88ered &'$e st'nds 's (ere! ' pro&%s%on' deter(%n't%on o8 t)e '(o$nt o8 $st

#o(pens't%on, t)e p'!(ent o8 ?)%#) %s s$88%#%ent to tr'ns8er possess%on o8 t)e propert! to t)e

Go&ern(ent. Ho?e&er, to e88e#t$'te t)e tr'ns8er o8 o?ners)%p, %t %s ne#ess'r! 8or t)e Go&ern(ent to

p'! t)e propert! o?ner t)e 8%n' $st #o(pens't%on.

In(im, t)e Co$rt ?ent 's 8'r 's to #o$nten'n#e, 7%&en t)e e"#ept%on' #%r#$(st'n#es o8 t)'t #'se,

t)e re&ers%on o8 t)e &'%d! e"propr%'ted propert! to pr%&'te o?ners)%p d$e to t)e 8'%$re o8 t)e

Go&ern(ent to p'! $st #o(pens't%on %n t)'t #'se.[64]It ?'s noted %n t)'t #'se t)'t t)e Go&ern(ent

de%er'te! re8$sed to p'! $st #o(pens't%on. T)e Co$rt ?ent on to r$e t)'t D%n #'ses ?)ere t)e

7o&ern(ent 8'%ed to p'! $st #o(pens't%on ?%t)%n 8%&e


32/41

In t)e e&ent t)'t t)e o?ner o8 t)e propert! #ontests t)e %(pe(ent%n7 '7en#!@s pro88ered

&'$e, t)e #o$rt s)' deter(%ne t)e $st #o(pens't%on to e p'%d t)e o?ner ?%t)%n s%"t! 6;/

d'!s 8ro( t)e d'te o8 8%%n7 o8 t)e e"propr%'t%on #'se. )en t)e de#%s%on o8 t)e #o$rt

e#o(es 8%n' 'nd e"e#$tor!, t)e %(pe(ent%n7 '7en#! s)' p'! t)e o?ner t)e d%88eren#e

et?een t)e '(o$nt 're'd! p'%d 'nd t)e $st #o(pens't%on 's deter(%ned ! t)e #o$rt.

e )od t)'t t)%s pro&%s%on s)o$d 'pp! %n t)%s #'se. T)e s%"t! 6;/d'! per%od pres#r%ed %n Rep. +#t

No. 9:4 7%&es teet) to t)e '?@s '&o?ed po%#! Dto ens$re t)'t o?ners o8 re' propert! '#=$%red 8or

n't%on' 7o&ern(ent %n8r'str$#t$re proe#ts 're promptly paid$st #o(pens't%on.[66]In t)%s #'se,

t)ere 're'd! )'s een %rre&ers%e de'! %n t)e pro(pt p'!(ent o8 PI+TCO o8 $st #o(pens't%on, 'nd%t %s no on7er poss%e 8or t)e RTC to deter(%ne t)e $st #o(pens't%on d$e PI+TCO ?%t)%n s%"t! 6;/

d'!s 8ro( t)e 8%%n7 o8 t)e #o(p'%nt 'st 21 *e#e(er 2;;4, 's #onte(p'ted ! t)e '?. St%, %t %s

8e's%e to e88e#t$'te t)e sp%r%t o8 t)e '? ! re=$%r%n7 t)e tr%' #o$rt to ('Ae s$#) deter(%n't%on ?%t)%n

s%"t! 6;/ d'!s 8ro( finality of this decision, %n '##ord'n#e ?%t) t)e 7$%de%nes '%d do?n %n Rep. +#t

No. 9:4 'nd %ts I(pe(ent%n7 R$es.

O8 #o$rse, on#e t)e '(o$nt o8 $st #o(pens't%on )'s een 8%n'! deter(%ned, t)e Go&ern(ent %s

o%7ed to p'! PI+TCO t)e s'%d '(o$nt. +s s)o?n %n (im 'nd ot)er %Ae(%nded #'ses, t)e

Go&ern(ent@s re8$s' to ('Ae s$#) p'!(ent %s %nd$%t'! '#t%on'e %n #o$rt.

Appointment of Commissioners

T)e ne"t 'r7$(ent 8or #ons%der't%on %s t)e #'%( o8 t)e Go&ern(ent t)'t t)e RTC erred %n


33/41


34/41

)'t R$e 6: does 'o? t)o$7) %s 8or t)e p'rt%es to protest t)e 'ppo%nt(ent o8 'n! o8 t)ese

#o((%ss%oners, 's pro&%ded $nder Se#t%on < o8 t)e R$e. T)ese oe#t%ons t)o$7) ($st e ('de 8%ed

?%t)%n ten 1;/ d'!s 8ro( ser&%#e o8 t)e order o8 'ppo%nt(ent o8 t)e #o((%ss%oners.[71]In t)%s #'se,

t)e proper re#o$rse o8 t)e Go&ern(ent to #)'en7e t)e #)o%#e o8 t)e #o((%ss%oners %s to 8%e 'n

oe#t%on ?%t) t)e tr%' #o$rt, #on8or('! ?%t) Se#t%on


35/41

n't$re o8 t)e $d7e@s r$%n7s to?'rds t)e (o&'nt 8or %n)%%t%on, espe#%'! %8 t)ese r$%n7s 're %n '##ord

?%t) '?. Ne%t)er #o$d %n)%%t%on e $st%8%ed (ere! on t)e erroneo$s n't$re o8 t)e r$%n7s o8 t)e

$d7e. e e(p)'s%ed %n e$$ v. People-[74]

To pro&e %'s 'nd pre$d%#e on t)e p'rt o8 respondent $d7e, petitioners harp on the

alleged adverse and erroneous rulings of respondent "udge on their various motions&

4y themselves ho!ever they do not sufficiently prove bias and pre"udice to dis)ualify

respondent "udge& To be dis)ualifying the bias and pre"udice must be sho!n to have

stemmed from an extra"udicial source and result in an opinion on the merits on some

basis other than !hat the "udge learned from his participation in the case . Op%n%ons

8or(ed %n t)e #o$rse o8 $d%#%' pro#eed%n7s, 't)o$7) erroneo$s, 's on7 's t)e! 're 'sed

on t)e e&%den#e presented 'nd #ond$#t oser&ed ! t)e $d7e, do not pro&e person' %'s or

pre$d%#e on t)e p'rt o8 t)e $d7e. %s a general rule repeated rulings against a litigantno matter ho! erroneous and vigorously and consistently expressed are not a basis for

dis)ualification of a "udge on grounds of bias and pre"udice& Extrinsic evidence is

re)uired to establish bias bad faith malice or corrupt purpose in addition to the

palpable error !hich may be inferred from the decision or order itself& %lthough the

decision may seem so erroneous as to raise doubts concerning a "udge


36/41

2;;< Order, ?)%#) '##ord%n7 to t)e Go&ern(ent est'%s)es Hon. G%n7o!on@s %'s, ?'s pro($7'ted

pre#%se! to #orre#t t)e pre&%o$s error ! 'pp!%n7 t)e #orre#t pro&%s%ons o8 '?. It ?o$d not spe'A

?e o8 t)e Co$rt %8 %t s'n#t%ons ' $d7e 8or ?'nt%n7 or e&en 'tte(pt%n7 to #orre#t ' pre&%o$s erroneo$s

order ?)%#) pre#%se! %s t)e r%7)t (o&e to t'Ae.

Ne%t)er 're ?e #on&%n#ed t)'t t)e motu proprio%ss$'n#e o8 t)e 4 'n$'r! 2;;< Order, ?%t)o$t t)e

ene8%t o8 not%#e or )e'r%n7, s$88%#%ent! e&%n#es %'s on t)e p'rt o8 Hon. G%n7o!on. T)e motu proprio

'(end(ent ! ' #o$rt o8 'n erroneo$s order pre&%o$s! %ss$ed ('! e s'n#t%oned depend%n7 on t)e

#%r#$(st'n#es, %n %ne ?%t) t)e on7re#o7n%ed pr%n#%pe t)'t e&er! #o$rt )'s %n)erent po?er to do '

t)%n7s re'son'! ne#ess'r! 8or t)e 'd(%n%str't%on o8 $st%#e ?%t)%n t)e s#ope o8 %ts $r%sd%#t%on.[76]

Se#t%on < o8 t)e R$es o8 Co$rt 8$rt)er re#o7n%es t)e %n)erent po?er o8 #o$rts Dto '(end

'nd #ontro %ts pro#ess 'nd orders so 's to ('Ae t)e( #on8or('e to '? 'nd $st%#e,[77]' po?er

?)%#) Hon. G%n7o!on noted %n )%s 1; 'n$'r! 2;;< Omni$us Order.[78]T)%s %n)erent po?er %n#$des

t)e r%7)t o8 t)e #o$rt to re&erse %tse8, espe#%'! ?)en %n %ts )onest op%n%on %t )'s #o((%tted 'n error or

(%st'Ae %n $d7(ent, 'nd t)'t to 'd)ere to %ts de#%s%on ?% #'$se %n$st%#e to ' p'rt! %t%7'nt.[79]

Cert'%n!, t)e 4 'n$'r! 2;;< Order ?'s des%7ned to ('Ae t)e RTC@s pre&%o$s order #on8or('e

to '? 'nd $st%#e, p'rt%#$'r! to 'pp! t)e #orre#t '? o8 t)e #'se. O8 #o$rse, 's e'r%er est'%s)ed, t)%s

e88ort pro&ed %n#o(pete, 's t)e 4 'n$'r! 2;;< Orderd%d not #orre#t! 'pp! Rep. +#t No. 9:4 %n

se&er' respe#ts. St%, 't e'st, t)e 4 'n$'r! 2;;< Order#orre#t! re8or(ed t)e (ost 's%# pre(%se o8

t)e #'se t)'t Rep. +#t No. 9:4 7o&erns t)e e"propr%'t%on pro#eed%n7s.

Nonet)eess, t)e Go&ern(ent e%ttes Hon. G%n7o!on@s %n&o#'t%on o8 Se#t%on < 's

Dp'tent! ?%t)o$t (er%t. Cert'%n! (er%t #'n e seen ! t)e 8'#t t)'t t)e 4 'n$'r! 2;;< Order

reor%ented t)e e"propr%'t%on pro#eed%n7s to?'rds t)e #orre#t 7o&ern%n7 '?. St%, t)e Go&ern(ent

#'%(s t)'t t)e $n%'ter' '#t o8 t)e RTC d%d not #on8or( to '? or $st%#e, 's %t ?'s not '88orded t)e

r%7)t to e )e'rd.


37/41

T)e Co$rt ?o$d e (ore #)'r%t'! d%sposed to?'rds t)%s 'r7$(ent %8 not 8or t)e 8'#t t)'t t)e e'r%er

order ?%t) t)e 4 'n$'r! 2;;< Orderso$7)t to #orre#t ?'s %tse8 %ss$ed ?%t)o$t t)e ene8%t o8 'n!

)e'r%n7. In 8'#t, not)%n7 e%t)er %n R$e 6: or Rep. +#t No. 9:< re=$%res t)e #ond$#t o8 ' )e'r%n7 pr%or

to t)e %ss$'n#e o8 t)e ?r%t o8 possess%on, ?)%#) ! des%7n %s '&'%'e %((ed%'te! $pon t)e 8%%n7 o8

t)e #o(p'%nt pro&%ded t)'t t)e re=$%s%tes 'tt'#)%n7 t)ereto 're present. Indeed, t)%s e"ped%ted pro#ess

8or t)e otent%on o8 ' ?r%t o8 possess%on %n e"propr%'t%on #'ses #o(es 't t)e e"pense o8 t)e r%7)ts o8 t)e

propert! o?ner to e )e'rd or to e depr%&ed o8 possess%on. Cons%der%n7 t)ese pred%#'tes, %t ?o$d e

)%7)! '?r! to de('nd t)'t 'n order (od%8!%n7 t)e e'r%er %ss$'n#e o8 ' ?r%t o8 possess%on %n 'n

e"propr%'t%on #'se e 'rred $nt% t)e st'7%n7 o8 ' )e'r%n7, ?)en t)e %ss$'n#e o8 t)e ?r%t o8 possess%on

%tse8 %s not s$e#t to )e'r%n7. Per)'ps t)e #ond$#t o8 ' )e'r%n7 $nder t)ese #%r#$(st'n#es ?o$d e

pr$dent. Ho?e&er, )e'r%n7 %s not ('nd'tor!, 'nd t)e 8'%$re to #ond$#t one does not est'%s) t)e

('n%8est %'s re=$%red 8or t)e %n)%%t%on o8 t)e $d7e.

T)e Go&ern(ent %Ae?%se 8'$ts Hon. G%n7o!on 8or $s%n7 t)e '(o$nt o8 USK> B%%on,

s)o$d e ree'sed to PI+TCO.

T)e Co$rt )'s not een re(%ss %n po%nt%n7 o$t t)e ($t%pe errors #o((%tted ! t)e RTC %n %ts 'ss'%ed

orders, to t)e pre$d%#e o8 ot) p'rt%es. T)%s 'tt%t$de o8 error to?'rds ' does not ipso factone7'te t)e

#)'r7e o8 %'s. St%, 7re't #'re s)o$d e )'d %n re=$%r%n7 t)e %n)%%t%on o8 $d7es s%(p! e#'$se t)e

('7%str'te d%d err. In#o(peten#e ('! e ' 7ro$nd 8or 'd(%n%str't%&e s'n#t%on, $t not 8or %n)%%t%on,

?)%#) re=$%res '#A o8 oe#t%&%t! or %(p'rt%'%t! to s%t on ' #'se.


38/41


39/41

pre$d%#e ($st e s)o?n to )'&e ste((ed 8ro( 'n e"tr'$d%#%' so$r#e 'nd res$t %n 'n

op%n%on on t)e (er%ts on so(e 's%s ot)er t)'n ?)'t t)e $d7e e'rned 8ro( )%s p'rt%#%p't%on

%n t)e #'se.[82]

T)e (ere &e)e(en#e o8 t)e Go&ern(ent@s #'%( o8 %'s does not tr'ns'te to #e'r 'nd #on&%n#%n7

e&%den#e o8 %(p'%r%n7 %'s. T)ere %s no s$88%#%ent 7ro$nd to d%re#t t)e %n)%%t%on o8 Hon. G%n7o!on

8ro( )e'r%n7 t)e e"propr%'t%on #'se.

In #on#$s%on, t)e Co$rt s$(('r%es %ts r$%n7s 's 8oo?s-

1/ T)e 2;;4 Resolution %n Agansets t)e 'se re=$%re(ent t)'t )'s to e oser&ed e8ore t)e

Go&ern(ent ('! t'Ae o&er t)e N+I+ >, t)'t t)ere ($st e p'!(ent to PI+TCO o8 $st #o(pens't%on %n

'##ord'n#e ?%t) '? 'nd e=$%t!. +n! r$%n7 %n t)e present e"propr%'t%on #'se ($st e #on8or('e to

t)e d%#t'tes o8 t)e Co$rt 's prono$n#ed %n t)eAgan#'ses.

2/ Rep. +#t No. 9:4 'pp%es %n t)%s #'se, p'rt%#$'r! %nso8'r 's %t re=$%res t)e %((ed%'te

p'!(ent ! t)e Go&ern(ent o8 't e'st t)e pro88ered &'$e o8 t)e N+I+ > 8'#%%t%es to PI+TCO 'nd

pro&%des #ert'%n &'$'t%on st'nd'rds or (et)ods 8or t)e deter(%n't%on o8 $st #o(pens't%on.

>/ +pp!%n7 Rep. +#t No. 9:4, t)e %(pe(ent't%on o8 r%t o8 Possess%on %n 8'&or o8 t)e

Go&ern(ent o&er N+I+ > %s )ed %n 'e!'n#e $nt% PI+TCO %s d%re#t! p'%d t)e '(o$nt o8 P> B%%on,

represent%n7 t)e pro88ered &'$e o8 N+I+ > $nder Se#t%on 4#/ o8 t)e '?.

4/ +pp!%n7 Rep. +#t No. 9:4, t)e Go&ern(ent %s '$t)or%ed to st'rt t)e %(pe(ent't%on o8 t)eN+I+ > +%rport ter(%n' proe#t ! per8or(%n7 t)e '#ts t)'t 're essent%' to t)e oper't%on o8 t)e N+I+

> 's 'n %ntern't%on' '%rport ter(%n' $pon t)e e88e#t%&%t! o8 t)e r%t o8 Possess%on, s$e#t to t)e

#ond%t%ons 'o&est'ted. +s pres#r%ed ! t)e Co$rt, s$#) '$t)or%t! en#o(p'sses Dt)e rep'%r,

re#ond%t%on%n7 'nd %(pro&e(ent o8 t)e #o(pe", ('%nten'n#e o8 t)e e"%st%n7 8'#%%t%es 'nd e=$%p(ent,

%nst''t%on o8 ne? 8'#%%t%es 'nd e=$%p(ent, pro&%s%on o8 ser&%#es 'nd 8'#%%t%es pert'%n%n7 to t)e


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8'#%%t't%on o8 '%r tr'88%# 'nd tr'nsport, 'nd ot)er ser&%#es t)'t 're %nte7r' to ' (odernd'! %ntern't%on'

'%rport.[83]


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Documents

Republic vs. Gingoyon G.R. No. 166429 December 19, 2005