REPUBLIC V.

LIM
G.R. NO. 161656
JUNE 29, 2005

FACTS
The Republic filed a complaint of expropriation against the property of the Denzons, specifically, Lot 932
and 939 of the Banilad Friar Land Estate, Lahug, Cebu City. They wanted to use the property to establish a
military reservation for the Philippine Army, the property was used for such a purpose. However, the
owner of the property had not received the amount of PHP 4, 062.10 as just compensation. The Denzon’s
successors-in-interest, namely, Valdehueza and Panerio filed a case for recovery of possession.

 CFI ruled in favor of Valdehueza and Panerio.

1. That, they remain owners of the land;
2. That, they should execute a deed of sale to the Republic;
3. That, the current market value is PHP 16, 248.40 with 6% interest per annum from April 5,
1948;
4. That, the said PHP 9, 500 deposit was allegedly disbursed, however, the payees could not
be ascertained; and,
5. That, they are not entitled to recover possession of the lots but may only demand the
payment of their fair market value.

6. The owners then mortgaged Lot 932 to Vicente Lim but failed to pay Lim resulting in the
foreclosure of Lot 932 and a new title was issued to Lim.
 RTC and CA ruled in favor of Vicente Lim as absolute and exclusive owner of Lot 932.

ISSUE: Whether or not the Republic has retained ownership of Lot 932 despite its failure to pay just
compensation to Denzon’s successors-in-interest.

RULING:
“In expropriation cases, an essential element of due process is that there must be just compensation
whenever private property is taken for public use.”
“There is a recognized rule that title to the property expropriated shall pass from the owner to the
expropriator only upon full payment of the just compensation.” For 50 years, Republic acquire ownership
over Lot 932 without payment of just compensation to the owner of the land. “Clearly, without full
payment of just compensation, there can be no transfer of title from the landowner to the expropriator.”

“SC ruled that expropriation of lands consists of two stages. First is concerned with the determination of
the authority of the plaintiff to exercise the power of eminent domain and the propriety of its exercise.
The second is concerned with the determination by the court of "the just compensation for the property
sought to be taken." It is only upon the completion of these two stages that expropriation is said to have
been completed. In Republic v. Salem Investment Corporation, we ruled that, "the process is not
completed until payment of just compensation." Thus, here, the failure of the Republic to pay respondent
and his predecessors-in-interest for a period of 57 years rendered the expropriation process incomplete.”
AFFIRMED the CA Decision in toto. Thus, Vicente Lim is the absolute and exclusive owner of Lot 932.