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REPUBLIC v. KER

FACTS:

This case involves a petition for review filed by the Republic of the Philippines, represented by the Department of Public Works and Highways, against Ker and Company Limited. The petitioner sought to expropriate portions of two parcels of land owned by the respondent for the widening of the road component of J.P. Laurel-Buhangin Interchange in Davao City. The trial court ordered the petitioner to pay the respondent the sum of Six Thousand Pesos (P6,000.00) per square meter as just compensation for one of the lots. The petitioner appealed the decision, claiming that the valuation of the lot was excessive and unreasonable. The Court of Appeals affirmed the trial court's decision, ruling that the assessed value of the property stated in the tax declaration cannot prevail over the valuation determined by the expert commissioners. The petitioner also argued that there were no substantial distinctions between the two lots to warrant different valuations. The appellate court, however, did not find this argument plausible. The Supreme Court found merit in the petitioner's contention and modified the decision, ordering the petitioner to pay the respondent Five Thousand Four Hundred Twenty-Three Pesos and Forty-Eight Centavos (P5,423.48) per square meter as just compensation.

ISSUES:

  1. Whether the valuation of the lot in Site I is excessive and unreasonable.

  2. Whether the value of the lot in Site I should be reduced.

  3. Whether there are substantial distinctions between the lot in Site I and the lot in Site II warranting different valuations.

RULING:

  1. The valuation of the lot in Site I is not excessive and unreasonable. The tax declaration indicating a lower assessed or market value does not make the commissioners' valuation excessive. The commissioners considered various factors in determining just compensation and arrived at a reasonable estimate.

  2. The value of the lot in Site I should not be reduced. Just compensation for expropriation is determined as of the date of taking or filing of the complaint, not at the time of the judgment. The contention that the highest valuation in the vicinity was pegged at P4,000.00 per square meter is disregarded.

  3. There are no substantial distinctions between the lot in Site I and the lot in Site II warranting different valuations. The lots are adjacent to each other and have similar access problems. Therefore, the valuation of P5,423.48 per square meter for Site II should also apply to Site I.

PRINCIPLES:

  • The value of expropriated property is determined based on various factors, including location, most profitable likely use, size, shape, and accessibility.

  • The assessments in tax documents can be considered, but they cannot exclude or prevail over a court determination after expert commissioners have examined the property.

  • Just compensation for expropriation is determined as of the date of taking or filing of the complaint, not at the time of the judgment.