National Grid Corporation v. Bautista

G.R. No. 232120 · 2020-09-30 · J. INTING, J.: · Primary: Civil; Secondary: Taxation, Remedial
REITERATION

Facts

The Antecedents: The National Grid Corporation of the Philippines (NGCP) filed a complaint for expropriation against Clara C. Bautista for a 1,314-square meter property needed for the Kirahon-Maramag 230 KV Transmission Line Project. NGCP initially offered P53,819.36 based on BIR zonal valuation and improvements. Respondent Bautista opposed, asserting the BIR valuation was less than the fair market value and that the property, though agricultural, was used residentially and adjacent to industrial lots. Procedural History: The Regional Trial Court (RTC) issued a Writ of Possession. Commissioners were appointed. Two commissioners reported the fair market value at P3,000.00 per sq. m., noting the property's industrial or built-up use. One commissioner recommended P25.00 per sq. m., citing its agricultural classification and zoning. The RTC ruled that the P25.00 valuation was too low and the P3,000.00 too high, taking judicial notice of other expropriation cases with similar properties valued between P220.00 and P600.00 per sq. m. The RTC ordered NGCP to pay P600.00 per sq. m. as just compensation, totaling P788,400.00, plus interest and commissioners' fees. NGCP appealed to the Court of Appeals (CA). The Petition: The CA dismissed NGCP's appeal for failure to file an Appellant's Brief within the reglementary period. NGCP's motion for reconsideration was denied, with the CA finding their explanation for non-filing insufficient, citing proof of receipt of the Notice to File Brief by NGCP's counsel. NGCP filed a Petition for Review on Certiorari with the Supreme Court, questioning the CA's dismissal and arguing the RTC overvalued the property.

Issue(s)

Whether the Court of Appeals erred in dismissing the appeal for failure to file an Appellant's Brief. Whether the Court of Appeals should have exercised liberality in allowing the appeal due to overriding public interest. Whether the Regional Trial Court erred in valuing the expropriated property as industrial land despite its agricultural zoning.

Ruling

The petition is denied. The Resolutions of the Court of Appeals dismissing the appeal are affirmed. The denial of the appeal due to the non-filing of an Appellant's Brief is declared final.

Ratio Decidendi

On the dismissal of the appeal for failure to file an Appellant's Brief: The Court affirmed the CA's dismissal, reiterating that Section 7, Rule 44 of the Rules of Court mandates the filing of an Appellant's Brief. While Section 1(e), Rule 50 of the Rules of Court grants the CA discretion to dismiss an appeal for such failure, this discretion must be soundly exercised. The Court emphasized that liberality in procedural rules is not an end in itself but must be pleaded with factual basis and allowed for equitable ends, with no indication of negligence or design to circumvent the rules. Petitioner's explanation for non-filing was found to be not compelling and without evidentiary support, thus failing to overcome the presumption of regularity and convince the Court to reverse the CA's exercise of discretion. The Court noted that the notice to file brief was duly received by petitioner's counsel of record. On the invocation of public interest and exercise of liberality: The Court found petitioner's harping on "public interest" as a reason for liberality to be anathema to the purpose of procedural rules, which is to provide a just, speedy, and inexpensive disposition of actions. Liberality is an extreme exception, justifiable only when equity exists and warranted by the circumstances. Petitioner's explanation was deemed less than worthy of credence and without evidentiary support, constraining the Court to adhere strictly to procedural rules. The Court cited Viva Shipping Lines, Inc. v. Keppel Phils. Marine, Inc., et al., stating that liberality must be pleaded with factual basis and allowed for equitable ends, with no indication of negligence or design. On the valuation of the expropriated property: The Court upheld the RTC's finding of just compensation at P600.00 per sq. m. It clarified that BIR zonal valuation is only one index of fair market value and cannot be the sole basis. The Court also affirmed the RTC's discretion to determine the classification of lands for expropriation purposes. Despite the property's agricultural classification in tax declarations and zoning ordinances, the RTC's determination that it was "built-up" based on actual ocular inspection and present development trends, supported by two commissioners, was found more persuasive. The RTC's consideration of other expropriation cases involving similarly situated properties was also deemed proper, as it was not the sole factor and the properties were in the same location. The RTC's computation was found to be more in accord with the principle that just compensation should be measured by the owner's loss, not the taker's gain.

Main Doctrine

The Court of Appeals has the discretion to dismiss an appeal for failure to file an Appellant's Brief, and this discretion must be exercised soundly, considering compelling reasons and the interest of substantial justice. Inexplicable failure to file the brief, without compelling justification, warrants dismissal.

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