G.R. No.

164195 February 6, 2007

Apo Fruits Corporation and Hijo Plantation vs CA
Chico-Nazario, J.

Facts:
Apo Fruits Corporation and Hijo Plantation, Incorporated were owners of 5 parcels of land in
Davao. These companies voluntarily offered to sell their lands to the government pursuant to RA 6657.
The parties were not able to come into agreement as to the price of the lands in question. Thus, the
petitioners brought the matter to before the DARAB to determine just compensation. Pending the
determination of the just compensation, the DAR registered said lands in the name of the Republic of
the Philippines and distributed the same to farmers under CARP. Three years passed but DARAB failed to
render decision on the valuation of land and determination of just compensation. Hence, petitioners
filed a complaint for the determination of just compensation before the Regional Trial Court of Davao,
which rendered decision in favor of AFC and HPI. RTC ruled that the purchase price of the land should be
higher than what was initially offered by DAR, considering the permanent improvements on AFC’s and
HPI’s lands. Department of Agrarian Reform appealed the RTC decision to the Court of Appeals, which
reversed RTC’s decision.

Issue:
WON the trial court erred in the determination as to the amount of just compensation due to
AFC and HPI.

Held:
The SC has held that the trial court correctly determined the amount of just compensation due
to AFC and HPI. When the trial court arrived at the valuation of a landowner’s property taking into
account its nature as irrigated land, location along the highway, market value, assessor’s value and the
volume and value of its produce, such valuation is considered in accordance with Republic Act No. 6657.
The trial court did not merely rely solely on the appraisal report submitted by the Commissioners but
also conducted hearings for the purpose of receiving the parties’ evidence.