Spouses Jesus L. Cabahug and Coronacion M. Cabahug, Petitioners, vs.

National Power Corporation, Respondent

G.R. No. 186069; January 30, 2013

Facts: Spouses Cabahug, being owners of two parcels of land which were subjected to expropriation
proceedings by the National Power Corporation (NPC). NPC electrical cables would be installed in the
portions of the province and would traverse the land owned by the petitioners. Cabahug, in
consideration of the easement fees, granted NPC a continuous easement right of way. Two years
thereafter, Cabahug filed a complaint before RTC for payment of just compensation after having learned
that the compensation given by NPC was very low compared to the appraisal made by the province of
Leyte. RTC rendered decision in favor of Cabahug. However, at the Court of Appeals, it was ruled that
vested right has already accrued in favour of NPC, and to allow spouses Cabahug to pursue the case
would be a violation of the contract and an unjust enrichment in favour of Cabahug.

Issue: Whether or not NPC may still be held liable to pay for the full market value of the affected
property despite the fact transfer of title thereto was not required by the easement.

Ruling: Yes. The power of Eminent Domain may be exercised although title is not transferred to
the expropriator in easement of right of way. Just compensation which should be neither more nor less
than the money equivalent of the property is, moreover, due where the nature and effect of the easement
is to impose limitations against the use of the land for an indefinite period and deprive the landowner if
ordinary use.