National Power Corporation v. Capin
REITERATIONFacts
The Antecedents: The National Power Corporation (NAPOCOR), a government-owned and controlled corporation vested with the power of eminent domain, undertook the 230 KV Leyte-Cebu Interconnection Project. This project involved the expropriation of several parcels of land in Cebu, including portions of lots owned by respondents Santa Loro Vda. De Capin and Spouses Julito and Gloria Quimco. NAPOCOR obtained "Permission to Enter" from the respondents, representing that it would pay just compensation. NAPOCOR constructed its power lines and transmission towers on portions of the respondents' properties, affecting a combined area of 3,199 square meters. Following construction, NAPOCOR imposed restrictions on the use of the affected lands, including a prohibition against building anything higher than three meters below the transmission lines, and prohibited Spouses Quimco from continuing their quarry business due to potential risks to the towers. NAPOCOR paid respondents nominal amounts (₱8,015.90 to Santa Loro Vda. De Capin and ₱5,350.49 to Spouses Quimco) for the affected portions. Respondents later discovered that other landowners in the area who resisted expropriation or entered compromise agreements were paid significantly more (₱448.30 to ₱450.00 per square meter). Procedural History: Respondents filed a Complaint for Rescission of Agreement, Recovery of Possession, Removal of Tower and Transmission Lines, Damages, and Other Reliefs against NAPOCOR. NAPOCOR countered that it was only obligated to pay an easement fee equivalent to 10% of the market value of the land, as per its charter. During pre-trial, the parties agreed that the sole issue was the determination of just compensation. Respondents filed a Motion for Summary Judgment, which NAPOCOR initially stated it would not oppose, pending verification of the affected area. Despite extensions, NAPOCOR failed to file an opposition. The Regional Trial Court (RTC) granted the Motion for Summary Judgment, awarding ₱448.33 per square meter, totaling ₱1,434,207.67, with interest. NAPOCOR's motion for reconsideration was denied, with modifications to the interest rates. NAPOCOR appealed to the Court of Appeals (CA), which affirmed the RTC's decision. The CA denied NAPOCOR's motion for reconsideration. The Petition: NAPOCOR filed a Petition for Review on Certiorari with the Supreme Court, raising issues regarding the propriety of summary judgment, the determination of the affected area, the basis for the valuation, and whether respondents were only entitled to easement fees.
Issue(s)
Whether the Court of Appeals committed reversible error in upholding the propriety of the trial court’s resort to summary judgment in determining the amount of just compensation. Whether the Court of Appeals committed reversible error in affirming the finding of the trial court that the total area of respondents’ lands affected by petitioner’s transmission line project is 3,199 square meters. Whether the Court of Appeals committed reversible error in ruling that the decision in Civil Case No. DNA-379 provides sufficient basis for fixing the fair market value of the affected properties at ₱448.33 per square meter. Whether the Court of Appeals committed reversible error in not ruling that under petitioner’s Charter, R.A. No. 6395, as amended, respondents are only entitled to simple easement fees.
Ruling
The Supreme Court denied the petition and affirmed the Decision and Resolution of the Court of Appeals. The Court ruled that NAPOCOR is liable to pay respondents just compensation for the portions of their lots taken for the transmission line project, at the rate of ₱448.33 per square meter, totaling ₱1,434,207.67, with modified interest rates. Dispositive Portion: "WHEREFORE, premises considered, the instant Petition is hereby DENIED. The Decision and Resolution of the Court of Appeals in CA-G.R. CV No. 73656, dated 21 April 2006 and 27 October 2006, respectively, are hereby AFFIRMED. No pronouncement as to costs."
Ratio Decidendi
On the propriety of summary judgment: The Court held that summary judgment was proper because, during the pre-trial conference, NAPOCOR admitted taking portions of the respondents' lands. The only remaining issue was the amount of just compensation. NAPOCOR's failure to file an opposition to the motion for summary judgment, despite ample opportunities and extensions, meant it could not later raise issues regarding the material facts, such as the exact area taken. The Court emphasized that summary judgment is a procedural technique to weed out sham claims and is appropriate when there is no genuine issue as to any material fact, except for the amount of damages. NAPOCOR's inaction constituted a waiver of its right to dispute the facts presented by the respondents. On the affected area of 3,199 square meters: The Court affirmed the finding that 3,199 square meters of the respondents' lands were affected. This was based on the respondents' Motion for Summary Judgment, which included a sketch plan. NAPOCOR's failure to file an opposition or present contrary evidence, despite being given opportunities and extensions to verify the area, meant that this factual issue was deemed settled. The Court noted that NAPOCOR's belated attempt to question the area after the RTC rendered judgment was a dilatory tactic and that the CA correctly relied on the evidence submitted by the respondents in the absence of any comment from NAPOCOR. On the basis for fixing fair market value at ₱448.33 per square meter: The Court found that the RTC's valuation was sufficiently based on a prior RTC Decision in Civil Case No. DNA-379, which awarded ₱448.33 per square meter for a similarly situated lot owned by the heirs of Tomas Gingco. Both properties were located in the same area, affected by the same Interconnection Project, and taken around the same time. The Court reasoned that since the properties and circumstances were essentially similar, the compensation awarded in the prior case served as a logical and reasonable basis for determining the just compensation in the present case. NAPOCOR's failure to controvert the evidence presented by the respondents further supported this conclusion. On entitlement to easement fees versus just compensation: The Court definitively ruled that NAPOCOR's acquisition of a right-of-way easement for its transmission lines constitutes a taking under the power of eminent domain, entitling the property owners to just compensation, not merely easement fees. The Court explained that such easements perpetually deprive owners of proprietary rights and impose limitations and dangers, effectively constituting an expropriation. The constitutional mandate under Article III, Section 9 of the Constitution, requiring just compensation for private property taken for public use, prevails over Section 3-A(b) of NAPOCOR's Charter, which limits compensation to easement fees. The Court reiterated that "just compensation is defined as the full and fair equivalent of the property taken from its owner by the expropriator. The measure is not the taker's gain, but the owner's loss."
Main Doctrine
The acquisition of a right-of-way easement by the National Power Corporation (NAPOCOR) for its transmission lines constitutes a taking under the power of eminent domain, entitling the property owner to just compensation, not merely easement fees. The constitutional mandate for just compensation prevails over provisions in NAPOCOR's charter that limit compensation to easement fees.