NTC vs Oroville Dev't Corp.

G.R. No. 223366, August 1, 2017

FACTS: NTC filed a petition for review for certiorari seeking to reverse the decision of the RTC and the
CA in the casw of exproriation which was filed by the respondent in connection with the properties of
Oroville which to be used by TransCo for the construction of thier transmission line.

Whereof, the RTC fixed the just compensation at the rate of 1,520/ sq meter with legal interest
of 12℅ per annum, from April 20, 2007, the date of filing the complaint and not during the time of the
taking. Further, the CA denied the reconsideration of TransCo.

In this petition, TransCo argues that the just compensation for the expropriated property shall
be determined based on its FMV at the time of the taking; Oriville should not be allowed to benefit
from its failure to question and that should not be made to pay a 12℅ interest per annum in the nature
of damages for delay as it complied with the RTC's directive to make provisional delosit for subject
property.

On the otherhand, Oroville alleged that the argument of TransCo about the basis for just
cmpensation would sow immeasurable injustice and would not be enough to reimburse Oroville for the
realty taxes it paid from 1983 to present and further state that while they paid their annual taxes the
Transco gad been earning billions from transmission charges.

ISSUES: Whether or not the computation of just compensation for the expropriated property shiuld be
based on its value at time of the taking of property

Whether or not the imposition of a legal interest of 12℅ is unjustified

RULING: The petition is meritorious. The court reversed and set aside the Sept. 18, 2015 and CA's
resolution. The valuation of the subject property shall be 78.65 per sq. meter, with interest at 12℅ per
annum from the Jan. 1983 until Jan. 21, 2011. Petitioner, TansCo is also ordered to pay Orville
examplary damages in the amount of 1,000,000 and attorney's fees of 200,000.