Case Digest : National Power Corporation vs. Benjamin Ong Co

G.R. No. 166973

National Power Corporation vs. Benjamin Ong Co

February 10, 2009

Facts:

Petitioner expropriated respondent’s property for its Lahar Project, a project for public use

Petitioner established its claim on RA 6395, allowing it to exercise the right to eminent domain.

Complaint was filed at the RTC on June 27, 2001. On 25 March 2002, petitioner obtained a writ of possession and on 15 April 2002 it took possession of the property.

RTC ordered the compensation of the full market value of the land valued at P1,179,000.00, with interest at 6% per annum beginning 15 April 2002, the date of actual taking, until full payment. RA 8974 sets forth the payment of land’s full market value as distinguished to RA 6395 which entitles the land owner to only 10% of market value.

Petitioner argues that compensation should only be an easement fee and not the total value and that computation of compensation should be determined as of the date of the filing of the complaint (Rule 67).

Issues:

Whether or not compensation will be governed by provisions on RA 6395 or RA 8974? Who will determine?

Whether or not value of the property should be reckoned as of the filing of the complaint or actual taking of the land?

Held:

Court held that with regard to compensation, provisions on RA 8974 should govern. Rules and Regulations of R.A. No. 8974 explicitly include power generation, transmission and distribution projects among the national government projects covered by the law. R.A. No. 8974 should govern the expropriation of respondent's property since the Lahar Project is a national government project.

The Court also held that the function for determining just compensation remains judicial in character. It held that the courts have the power to determine cases relative to the violations on the guarantees provided by the Bill of Rights.

As to the amount to be given to respondent as compensation, the court agreed with petitioner that compensation should be computed as of the filing of complaint (2001) win compliance with Rule 67.

Categories: case digest, compensation, Constitutional Law, G.R. No. 166973, National Power Corporation vs. Benjamin Ong Co, NPC vs. Ong Co, POLITICAL LAW