MACATAMAN #156 (96 SCRA 831)

Extinguishment of Obligation: Payment or Performance (Art. 1250)

Commissioner of Public Highways vs. Burgos

Nature of Action: APPEAL from the decision of the Court of First Instance of Cebu City.
Material Facts:
Private respondent, Victoria Amigable, is the owner of parcel of land situated in Cebu
City. In 1924, the Government took the said land for road-right-of-way purpose. Twenty-five
(25) years later, the private respondent filed a complaint before the CFI in Cebu City to recover
her ownership and possession of the land. In its answer, the republic alleged that the land was
donated or sold by its owner to the province of Cebu and that the right of the owner was already
barred by estoppel and the statute of limitation.
The Republic proved that the value of the property at the time of taking thereof in 1924,
with certified copies issued by Bureau of Records and Management is to be P2.37 per square
meter. On the other hand, the private respondent presented newspaper clippings showing the
value of the peso to the dollar obtaining about the middle of 1972 (the time this case was filed),
which was 6.775 dollar, and following the provision of Art. 1250 of the NCC. Upon
consideration of the evidences presented by both parties, CFI rendered its decision in favor of
private respondent, Victoria Amigable.
Said decision of the CFI is the subject of this petition for review by certiorari filed by the
Solicitor General as counsel of the petitioner, alleging that Art. 1250 of the New Civil Code is
not applicable in determining the amount of compensation to be paid to respondent Victoria
Amigable for the property taken.
Issue: Whether the provision of Art. 1250 of the NCC is applicable in determining the amount of
compensation to be paid to private respondent.
Ruling: The judgment appealed from is hereby REVERSED as to the basis in the determination
of the price of the land taken as just compensation for its expropriation, which should be the
value of the land at the time of taking in 1924.
Ratio Decidendi:
Art.1250 of the NCC applies only to cases where the obligation to pay arises from law,
independent of contracts. The taking of private property by the Government in the exercise of
power of eminent domain does not give rise to a contractual obligation. We hold therefore, that
under the law, in the absence of any agreement to the contrary, a fact we decline to declare
categorically, the value of the peso at the time the property was taken possession of the
Government, must be considered for the purse determining just compensation.