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NPC vs.

VILLAMOR
G.R. No. 160080
June 19, 2009
Article III, Section 9
FACTS:
National Power Corporation (NPC) is a government-owned and controlled
corporation created and existing by virtue of RA 6395 as amended by PD 938. Its main
objective is to develop hydro-electric generation power and the production of power from any
other source. Its charter grants to NPC the power to exercise the right of eminent domain.
Due to its Leyte-Cebu Interconnection Project, NPCs 230 KV Talisay-Compostela
transmission lines and towers have to pass parcels of land in the City of Danao and
Municipality of Carmen, both situated in the province of Cebu. Carlos Villamor owned two
of the said lands in Cantipay, Carmen, Cebu. On these lands stand fruit-bearing trees (mango,
coconut, avocado, soursop or guyabano, jackfruit, tamarind, breadfruit, sugar apple or atis,
Spanish plum or siniguelas, and banana), and non-fruit bearing trees (mahogany and
gemilina).
On July 22, 1996, NPC filed with the Danao City RTC a complaint for eminent
domain of Villamors lands. The lands were identified as Lot 3, 6191 Cad. 1046-D with a
total area of 5,590.76 square meters and Lot 4, 6191 Cad. 1046-D with a total are of 3, 134.53
square meters. NPC deposited Php23, 115.70 with the PNB Fuenta Osmena branch,
representing the assessed value on the tax declaration of the lands. The RTC ordered the
issuance of the corresponding writ of possession in favor of the NPC. Several parties
intervened, namely Teodolo Villamor, Teofilo Villamor, and Nunila Abellar who are the
siblings of respondent and the other heirs of the late spouses Jose and Dolores Villamor. They
claimed that NPC violated their legal rights in negotiating with only the respondent who is
just one of seven heirs. Respondent Carlos Villamor, on the other hand, assailed the
reasonableness and adequacy of the just compensation of the property.
The trial court created a board of three commissioners to determine the just
compensation for the lands and improvements. They recommended the amount of Php 433
per square meter as fair market value of respondents lands based on (1) the inspection report
made by representatives of the court, (2) list of documentary exhibits, (3) opinion values of
the different agencies submitted to the Provincial Appraisal Committee, (4) certification from
the different government agencies, and (5) the owners proposal. Villamor filed his Comment
to the Commissioners Report asking that (1) Php450 just compensation be awarded to him
similar to the landowner adjacent to his land and that (2) a small portion of Lot 4 consisting
of an area of 15.23 square meters which had been separated from the remaining unaffected
portion of the total area and would not be used by Villamor for any productive purposes, be
included as part of the total area that should be compensated by NPC. The trial court rendered
a decision in favor of Villamor.
NPC filed an appeal with the CA who dismissed the petition and affirmed the decision
of the trial court. The CA also denied NPCs Motion for Reconsideration.
Thus, this case is a petition for review assailing the August 19, 2002 Decision and
August 20, 2003 Resolution of the Court of Appeals.
ISSUE:
1. Whether or not the fair market value awarded by the trial court may be reduced taking
into consideration that NPC is allegedly acquiring only an easement of right of way
and that the lands affected are classified as agricultural
Prepared by: Aira Marie M. Andal

HELD:
1. NO, the petition lacks merit.
NPCs claim that Section 3A of RA 6395 justifies its actions as NPC is only acquiring
an easement of right of way since the landowner retains ownership of the property and can
devote the land to farming and other agricultural purposes is false. Easement of right of way
falls within the purview of the power of eminent domain. In installing the 230 KV TalisayCompostela transmission lines which traverse respondents lands, a permanent limitation is
imposed by petitioner against the use of the lands for an indefinite period. This deprives
respondent of the normal use of the land. In fact, not only are the affected areas of the lands
traversed by petitioners transmission lines but a portion is used as the site of its transmission
tower. Because of the danger to life and limbs that may be caused beneath the high-tension
live wires, the landowner will not be able to use the lands for farming or any agricultural
purposes.
Respondent Villamor is entitled to just compensation or the just and complete
equivalent of the loss which the owner of the thing expropriated has to suffer by reason of the
expropriation. Furthermore, in fixing the compensation as Php450, the courts considered not
only the Commissioners Report and the opinion values of different agencies submitted to the
trial court but also the several deeds of absolute sale and compromise agreements entered into
by NPC with landowners adjacent to respondents lands. Since the determination of just
compensation in expropriation proceedings is essentially a judicial function, the Court finds
the amount of Php450 per square meter to be just and reasonable compensation for the
expropriated lands of respondent.
The petition is wherefore denied.

Prepared by: Aira Marie M. Andal

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