REVIEWER
eminent domain, for purposes of great
Rule 67 - Expropriation
NATURE
Eminent Domain is the right and
authority of the State, as sovereign, to
take private property for public use
upon observance of due process and
payment of just compensation.
A power inseparable from sovereignty
since it is essential to the existence of
the state and inherent in government.
It is in the nature of a compulsory sale
to the State.
REQUISITES FOR THE VALID
EXERCISE OF THE RIGHT
(a) The property must be private
(b) There must be due process of law
(c) Payment of just compensation
(d) Taking must be for public use
(e) There must be genuine necessity
to take the property [Manapat v. CA,
G.R. No.
110478 (2007)]
Concept of Public Use
Public use means public usefulness,
utility, or advantage, or what is
productive of the general benefit, so
that any appropriation of private
property by the State under its right of
advantage to the community, is a taking
for public use. [Reyes v. National
Housing Authority, G.R. No.147511
(2003)]
MEANING OF JUST
COMPENSATION
It is the fair and full equivalent value of
the loss. An essential component of the
exercise of the power of eminent
domain because of the Constitutional
precept that private property shall not
be taken without just compensation
(Sec. 9, Art. III, Philippine Constitution)
PURPOSE OF JUST COMPENSATION
It is not to reward the owner of the
property taken, but to compensate him
for the loss thereof.
WHEN IS THERE TAKING?
There is taking when the expropriator
enters private property not only for a
momentary period but for a more
permanent duration for the purpose of
devoting the property to a public use in
such a manner as to oust the owner and
deprive him of all the beneficial
enjoyment thereof. [RP v. Sarabia, G.R.
No. 157847 (2005)]
REQUISITES OF” TAKING” IN
EMINENT DOMAIN CASES
1. The expropriator must enter a private
property;
2. The entrance must be for more than
a momentary period;
3. The entry into the property should be
under warrant or color of legal
authority;
4. The property must be devoted for
public use of otherwise informally
appropriated injuriously affected; and
5. The utilization of the property for
public use must be in such a way as to
oust and deprive him, of all beneficial
enjoyment of the property.
REQUISITES THAT MUST CONCUR
BEFORE A LOCAL GOVERNMENT
UNIT CAN EXERCISE THE POWER
OF EMINENT DOMAIN:
a) An ordinance is enacted by a local
legislative
council to exercise the power of eminent
domain, or pursue expropriation
proceedings over a particular private
property through its chief executive;
(b) The power of eminent domain is
exercised for public use, purpose or
welfare, or for the benefit of the poor
and the landless;
(c) The power may be exercised
through its chief executive acting
pursuant to the enacted ordinance;
(d) There is payment of just
compensation, as required under the
Constitution, and other pertinent laws;
and
(e) A valid and definite offer has been
previously made to the owner of the
property sought to be expropriated, but
said offer was not accepted.
STAGES IN THE EXPROPRIATION
PROCESS
(First Stage) Propriety of
Expropriation:
Determination of the authority of the
plaintiff to exercise the power of
eminent domain and the propriety of its
exercise in the context of
the facts involved.
This ends with either:
(1) An order of dismissal, or
(2) An order of expropriation
(Second Stage) Just Compensation:
Determination of the just compensation
Through court-appointed
commissioners. [NPC vs Joson, 206
SCRA 520, 536]
NOTE: Multiple appeals are allowed in
expropriation. Aggrieved party may
appeal in each stage separately.
MATTERS TO ALLEGE IN
COMPLAINT FOR EXPROPRIATION
Contents of the Complaint The The Regional Trial Court
complaint shall: Reason: It is an action incapable of
(1) State with certainty the right and pecuniary estimation.
purpose of expropriation;
NOTE: Where the right of the plaintiff to
expropriate is conferred by law, DEFENSES AND OBJECTIONS
complaint does not have to state with [Sec. 3, Rule 67]
certainty the right of expropriation
[Manila Railroad Co. v. Mitchel (1923)]
No Objection to With Objection
(2) Describe the real or personal or Defense to or Defense
property sought to be expropriated; Against Taking Against Taking
What to file and what to serve
(3) Join defendants All persons owning Notice of Answer to the
or claiming to own, or occupying, any appearance and complaint
part thereof or interest therein, showing manifestations
separate interest of each defendant, as Period to file
far as practicable; Time started in the summons
Contents
(4) Make the following averments, if (1) Manifestation (1) Specifically
needed: to the effect that designating/
he has no identifying the
(a) If title appears to be in the Republic, objection or property in which
although occupied by private individuals defense; he claims to have
(b) If title is otherwise obscure or an interest in;
doubtful so that plaintiff cannot with (2) Specifically
accuracy or certainty specify who the designating/ (2) Nature and
real owners are [Sec. 1, Rule 67] identifying the extent of the
property in which interest; and
SERVICE OF SUMMONS; WHO MAY he claims to be
BE DEFENDANTS Interested. (3) ALL his
objections and
Are not limited to the owners of the defenses to the
property condemned. They include all complaint or any
other persons owning, occupying or allegation therein
claiming to own the property.
Prohibited
COURT WITH JURISDICTION Counterclaim,
 crossclaim, third
party complaint in
any pleading
REMEDY WHEN SOME DEFENSES
ARE OMITTED
1. If the answer omits some
defenses, the remedy, in order to
prevent a waiver of those defenses not
allege, is to seek leave to amend the
answer within ten (10) days from filing
thereof.
2. In ordinary civil actions, an
amendment of the pleading could be a
matter of right, and no leave is required,
as long as the amendment is made
before the service of a responsive
pleading.
WAIVER OF DEFENSES OR FAILURE
TO ANSWER; EFFECT
The defendant who does not file an
answer, will not totally lose his standing
in court.
He/she may present evidence as to the
amount of the compensation to be paid
for his property, and share in the
distribution of the award.
WHEN AN ANSWER IS NOT
REQUIRED
If the defendant has no objection or
defense to the action or to the taking of
his property.
Instead, he may file and serve the a:
a. Notice of appearance; and
b. Manifestation to the fact that he
has no objection or defense to the
taking of his property, within the time
stated in the summons.
EFFECT OF MAKING THE REQUIRED
DEPOSIT
Deposit having been made, the court
shall order the sheriff or other proper
officer to place the plaintiff in
possession of the property involved and
promptly submit a report to the court.
Copies of the report are to be served to
the parties. (Sec. 2, Rule 67)
Note: Prior hearing is required before
immediate possession can be granted to
the plaintiff.
This merely requires notice to the
defendant and the making of the
required deposit.
PURPOSE OF DEPOSIT
It serve as an advance payment to the
owner of the property should the court
decide in favor of the plaintiff, and
should it be otherwise, the deposit shall
serve as indemnity against damage is higher, and
which the owner may have sustained. value of
(Visayan Refining Company v. Camus improvement
Paredes, 40 Phil. 550, 563) and/or
structures
using
ENTRY UPON THE PROPERTY replacement
Rule 67 RA 8974 cost method
As to Expropriation Only when
Scope in general, national
for both real government
and personal expropriates ORDER OF EXPROPRIATON
properties real property [Sec. 4, Rule 67]
for national
government Order of expropriation is the order
infrastructure declaring that the plaintiff has lawful
projects right to take the property.

For writ of Government Government When Issued

possession is required to is required to
to issue make make It is issued when:
preliminary immediate (1) Objections or defenses against the
deposit payment to right of plaintiff to expropriate are
owner upon overruled; or
filing of (2) No party appears to defend the case
complaint
Contents of the Order
Amount of Equal to Equal to the
payment assessed market value (1) That the plaintiff has a lawful right
or deposit value of real of the to take the property sought to be
property for property as expropriated;
purposes of stated in the (2) For the public use or purpose
taxation tax described in the complaint; and
declaration or (3) Upon payment of just compensation:
Current
relevant (a) To be determined as of
zonal value of the date of taking, or
BIR, (b) The filing of the complaint,
whichever whichever came first.
REMEDY OF DEFENDANT
Order of condemnation is final, not
interlocutory. Hence, it is appealable.
NOTE: Appeal shall not prevent court a
quo from determining just
compensation.
EFFECTS OF THE ORDER
(1) Plaintiff not permitted to dismiss or
discontinue the proceeding, except on
such terms as the court deems just and
equitable; and
(2) Order forecloses any further
objections to the right to expropriate,
including the public purpose of the
same. [Robern Development
Corporation v. Quitain, G.R. No. 135042
(1999)]
Multiple appeals are permitted in
expropriation. An appeal may be taken
from the order authorizing expropriation
and, thereafter, another appeal on the
judgment on the just compensation to
be paid. Thus, the reglementary period
to appeal shall be 30 days and a record
on appeal shall be required for each of
the permissible appeals [REGALADO]
ASCERTAINMENT OF JUST
COMPENSATION
- The order of expropriation, as far
as the court is concerned, settled
the issue to the right of
expropriation and proprietary of
the public use or purpose
NEXT VITAL ISSUE: Determination of
Just Compensation.
Appointment of Commissioners:
1. Upon the rendition of the order of
expropriation, the court shall
appoint not more than three (3)
commissioners to ascertain the
compensation to be paid to the
owner of the property.
2. Objections to the appointment
may be made within 10 days
from service of the order of
appointment of the
commissioners to the parties.
3. This shall be resolved within 30
days after all the commissioners
shall have received copies of the
objections.
- The appointment of
commissioners to ascertain just
compensation for the property
sought to be taken is a
MANDATORY requirement in
expropriation cases.
- The appointment of
commissioners to ascertain just
compensation for the property
sought to be taken is a
MANDATORY requirement in
expropriation cases.
-
Q: Are the findings of commissioners
may be disregarded?
A: Yes, the trial court may substitute its
own estimate of the value only for a
valid reason, 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.
TN: Trial court with the aid of the
commissioners is a substantial right that
may not be done away with capriciously
or for no reason at all. ( National Power
Corporation v. Dela Cruz, 514 SCRA 56,
69-70)
Proceedings by Commissioners
(Sec. 6, Rule 67, Rules of Court)
- Evidence may be introduced by
either party in the hearing before
the commissioners and argue
their case either by themselves or
by counsel.
- In ascertaining the
compensation, the commissioners
shall assess the consequential
damages to the property not
taken and deduct from such
consequential damages the
consequential benefits to be
derived by the owner from the
public use or purpose of the
property taken.
- In no case shall the consequential
benefits assessed exceed the
consequential damages nor shall
the owner be deprived of the
actual value of his property so
taken.
-
JUDGEMENT AS TO
COMPENSATION
- The court, after hearing, may
either accept the report, set aside
the same, or accept the report in
part and reject the same in part.
Guidelines for the Proper
Determination of Just
Compensation:
1. Just compensation must be
valued at the time of the taking
of the property expropriated, or
the time when the owner was
deprived of the use and benefit
of his property;
2. Interest may be awarded as may
be warranted by the
circumstances of the case; and
3. Just Compensation must be
arrived at pursuant to the
guidelines set forth in Sec.17 of
RA 6657 and outlined in a
formula provided in DAR A.O. No.
5.
SECTION 17. Determination of
Just Compensation. — In determining
just compensation, the cost of
acquisition of the land, the current value
of like properties, its nature, actual use
and income, the sworn valuation by the
owner, the tax declarations, and
assessments made by the government
assessors shall be considered. The social
and economic benefits contributed by
the farmers and the farmworkers and by
the Government to the property as well
as the non-payment of taxes or loans
secured from any government financing
institution on the said land shall be
considered as additional factors to
determine its valuation.
The following rules and regulations
are hereby promulgated to govern the
valuation of lands subject of
acquisition whether under voluntary
offer to sell (VOS) or compulsory
acquisition (CA). llcd
A. There shall be one basic
formula for the valuation of lands
covered by VOS or CA:
LV = (CNI x 0.6) + (CS x 0.3) + (MV
x 0.1)
Where: LV = Land Value
CNI = Capitalized Net Income
CS = Comparable Sales
MV = Market Value per Tax
Declaration
APPEAL FROM THE JUDGEMENT AS
TO COMPENSATION
- The judgement rendered by the
court as to the just compensation
may be appealed from but the
appeal shall not have the effect
of delaying the right of the
plaintiff to enter the property and
appropriate the same for public
use or purpose.
Q: What if the appellate court
determines that the plaintiff has no right
of expropriation?
A: The judgment shall be rendered
ordering the RTC to restore the property
to the defendant and determine the
damages which he may have substances
by reason of the possession taken by
the plaintiff.
TN: It is not only the judgment of the
court as to the compensation which is
appealable; the previous order of
expropriation is also appealable.
WHEN TO ASCERTAIN JUST
COMPENSATION
National Power Corporation v.
Diato-Bernal, 638 SCRA 660, 669
“It is settled that just compensation is
to be ascertained as of the time of the
taking, which usually coincides with the
commencement of the expropriation
proceedings. Where the institution of
the action precedes entry into the
property, the just compensation is to be
ascertained as of the time of the filing of
the complaint.”
Under Sec. 19 of the LGC, the amount
to be paid for the expropriation of the
property shall be determined based on
the fair market value at the time of the
taking of the property.
XPN: Inverse Condemnation
Proceedings
Inverse Condemnation
- A term used to describe a
situation in which the
government takes private
property but fails to pay the
compensation required by law to
the property’s owner has to sue
to obtain the required just
compensation.
PAYMENT OF JUST COMPENSATION
- The payment shall consist of the
amount fixed in the judgment
including the legal interest from
the taking of possession of the
property (Sec. 10 Rule 67, Rules
of Court)
Defendant Declines: The same shall be
ordered deposited in court and such
deposit shall have the same effect as
actual payment thereof to the defendant
or to the person ultimately adjudged
entitled thereto.
PAYMENT IN CASE OF UNCERTAIN
OWNERSHIP
- If the ownership of the property
takes us uncertain, or there are
conflicting claims to any part
thereof, the court may order that
the sum representing the
compensation for the property be
paid to the court. (Sec. 9, Rule
67, Rules of Court)
RIGHT OF PLAINTIFF AFTER
JUDGEMENT AND PAYMENT
1. Enter upon the property
expropriated;
2. Appropriate the same for the
public use or purpose defined in
the judgment; or
3. Retain possession already taken
in accordance with Sec. 2 of Rule
67.
RULE IF PAYMENT IS REFUSED
- If the defendant and his counsel
absent themselves from the
court, decline to receive the
 amount tendered, the same shall use or purpose for which the
be ordered deposited in court. property is expropriated. When
The deposit shall have the same the property expropriated is real
effect as actual payment to the estate, a certified copy of such
defendant or the person judgement shall be recorded in
ultimately adjudged entitled the Registry of Deeds of the
thereto. (Sec. 10, Rule 67, Rules place where the property is
of Court) situated.

NON-PAYMENT OF JUST
COMPENSATION

- Non-payment of just
compensation does not
automatically entitle the private
landowner to recover possession
of the expropriated lots.

TN: In cases where the government

failed to pay just compensation within
five (5) years from the finality of
judgment in the expropriation
proceedings, the owners concerned shall
have the right to recover the possession
of their property.

RECORDING OF THE JUDGMENT

AND ITS EFFECT

- The judgment entered in

expropriation proceedings shall
state definitely the particular
property or interest expropriate,
which shall be adequately
described.

- The judgment shall also state

definitely the nature of the public