Sec. 5. Ascertainment of compensation.

Upon the rendition of the order of expropriation, the court shall appoint not more than three (3)
competent and disinterested persons as commissioners to ascertain and report to the court the just
compensation for the property sought to be taken. The order of appointment shall designate the
time and place of the first session of the hearing to be held by the commissioners and specify the
time within which their report shall be submitted to the court.

Copies of the order shall be served on the parties. Objections to the appointment of any of the
commissioners shall be filed with the court within ten (10) days from service, and shall be resolved
within thirty (30) days after all the commissioners shall have received copies of the objections.

What is just compensation?

Just compensation is the full and fair equivalent of the property to be expropriated. The measure here
is not the taker’s gain but the owner’s loss. It must be just and fair not only to the owner but also to the
taker. It must not be overvalued/undervalued.

Formula: JC= FMV + CD – CB

If CB is more than CD, then
JC= FMV
JC – Just compensation
FMV – Full and fair market value
CD – Consequential damages
CB – Consequential benefits
NOTE: Sentimental value is not included

What is Consequential Benefit

It refers to actual benefits derived by the owner on the remaining portion of his land which are the
direct and proximate results of the improvements consequent to the expropriation, and not the
general benefits which he receives in common with community (Regalado, 2010).

Why is it the basis of the valuation if fair market value?

In the case of Republic vs. Vda. de Castellvi, SC said that the owner of the land has the right to its value
for the use for which he brings to the market. The owner may thus show every advantage that his
property possesses, present and prospective, in order that the price it could be sold for in the market
maybe satisfactorily determined. It is incumbent upon the owner to show the fair market value of the
property.

What are the factors to consider?

1) the cost of the acquisition
2) the current value of like properties
3) actual and potential uses
 4) In the particular case of lands, their size, shape, location, and the tax declarations thereon
(National Power Corporation v. De la Cruz, G.R. No. 156093, February 2, 2007).

When it comes to the appointment of the commissioners, this is a MANDATORY stage of the
proceedings. It is in fact considered as a substantive right.

If there is lack of opportunity to present evidence before the commissioner, that will tantamount to
denial of due process, even if the parties were able to file motion for reconsideration.

The trial by commissioner is separate from an independent ocular inspection conducted by the
commissioners.

While it is true that the findings of commissioners may be disregarded and the trial court may
substitute its own estimate of the value, the latter may only do so for valid reasons, that is, where the
commissioners have applied illegal principles to the evidence submitted to them, where they have
disregarded a clear preponderance of evidence, or where the amount allowed is either grossly
inadequate or excessive (National Power Corporation v. De la Cruz, G.R. No. 156093, February 2,
2007)