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    Republic vs. Vda. de Castellvi

    GR L-20620, 15 August 1974En Banc, Zaldivar (J): 7 concur, 4 took no part

    FACTS:1 July1947 - Petitioner Republic of the Philippines

    (Philippine Air Force) occupied the land situated in

    Floridablanca, Pampanga of Carmen M. vda. de

    Castellvi, the judicial administratrix of the estate of

    the late Alfonso de Castellvi since by virtue of a

    contract of lease.

    30 June 1956 - Before the expiration of the contract

    of lease, the Republic sought to renew the same but

    Castellvi refused, intending to subdivide the lots for

    sale to the general public; filed civil case for

    ejectment of AFP.

    26 June 1959In view of the difficulty for the army

    to vacate the premises due to permanent installations

    and other facilities, AFP filed expropriationproceedings and was placed in possession of the

    lands on 10 August 1959.

    In its complaint, the Republic alleged, among other

    things, that the fair market value of the above-

    mentioned lands, according to the Committee on

    Appraisal for the Province of Pampanga, was not

    more than P2,000 per hectare (P.20/sqm), or a total

    market value of P259,669.10 when AFP first had the

    taking of the said property by virtue of the special

    lease agreement. Respondents allege that their lands

    are residential with a fair market value of not less

    than P15/sqm.

    The trial court rendered its decision, finding that the

    unanimous recommendation of the commissioners of

    P10.00 per square meter for the 3 lots subject of the

    action is fair and just compensation

    ISSUE:1. WON the taking of the properties under

    expropriation commenced with the filing of the

    action

    2. WON the P10/sqm is fair and just compensation.HELD:1. The "taking" of Catellvi's property for purposes

    of eminent domain cannot be considered to have

    taken place in 1947 when the Republic

    commenced to occupy the property as lessee.

    Elements B & E were not present when Republic

    entered the properties in 1947.

    Elements/Requisites of taking of property for

    purposes of eminent domain:

    A. Expropriator must enter a private property.B. Entrance into private property must be for more

    than a momentary period.

    C. Entry into the property should be under warrantor color of legal authority.

    D. Property must be devoted to a public use orotherwise informally appropriated or injuriously

    affected.

    E. Utilization of the property for public use must bein such a way as to oust the owner and deprive

    him of all beneficial enjoyment of the property.

    2. Under Section 4 of Rule 67 of the Rules ofCourt, the just compensation is to be

    determined as of the date of the filing of the

    complaint.

    This Court has ruled that when the taking of the

    property sought to be expropriated coincides with the

    commencement of the expropriation proceedings, or

    takes place subsequent to the filing of the complaintfor eminent domain, the just compensation should be

    determined as of the date of the filing of the

    complaint. Herein, it is undisputed that the Republic

    was placed in possession of the Castellvi property, by

    authority of the court, on 10 August 1959.

    The taking of the Castellvi property for the

    purposes of determining the just compensation to be

    paid should not be paid based on 1947 fair market

    value amount.

    Basic guidelines in determining the value of the

    land to be expropriated: Same considerations are to be regarded as in a

    sale of property between private parties.

    Estimated by reference to the use for which theproperty is suitable, having regard to the existing

    business or wants of the community, or such as

    may be reasonably expected in the immediate

    future.

    In expropriation proceedings, therefore, the owner of

    the land has the right to its value for the use for

    which it would bring the most in the market.

    We have arrived at the conclusion that the price ofP10/sqm is quite high. The price of P5/sqm would be

    a fair valuation and would constitute a just

    compensation. We considered the resolution of the

    Provincial Committee on Appraisal of the province of

    Pampanga informing, that in the year 1959 the lands

    could be sold for from P2.50- P4/sqm, and the Court

    arrived at a happy medium between the price as

    recommended by the commissioners and approved by

    the court, and the price advocated by the Republic.