563 - Vda. De Ouano, et al. v.

RP, 9 February 2011

Title
ANUNCIACION VDA. DE OUANO et al v. THE REPUBLIC OF THE PHILIPPINES, THE MACTAN-CEBU INTERNATIONAL
AIRPORT AUTHORITY

Topic
Mutual compensation
Eminent domain right to reconveyance

Facts
In 1949 National Airport Corporation(NAC) predecessor of MCIAA pursued a program through eminent domain for
expansion of Lahug Airport in Cebu city which later on bought the land of herein petitioners with the right to
repurchase.

Soon in 1991, MCIAA transferred to Lahug airport, but there is no expansion from the date of program up to the
present.

The petitioners herein file in RTC for the reconveyance of since the primary purpose that they agreed to sell their
parcel of land is for public use but it was not actually happened.
The RTC ruled in favor of Ouanos ordering to restore the possession and ownership of the lands.
Upon motion for reconsideration of MCIAA contending that Ouano has no having found any reversionary
condition.
Upon appeal of the petitioner to Court of appeal, it affirmed the RTC’s decision
Hence, the petition.

Issue
Whether or not abandonment of Lahug Airport for public use of the subject property entitles the petitioners to
reacquire them.

Ruling

Yes, MCIAA can be compelled by the former landowners to reconvey the parcels of land to them, otherwise, they
would be denied the use of their properties upon a state of affairs that was not conceived nor contemplated when
the expropriation was authorized.

The lot owners Ouanos can demand the reconveyance of their old properties after the payment of the
condemnation price.

With respect to the element of public use, the expropriator should commit to use the property pursuant to the
purpose stated in the petition for expropriation filed, failing which, it should file another petition for the new
purpose. If not, it is then incumbent upon the expropriator to return the said property to its private owner
In accordance with Art. 1187 of the Civil Code on mutual compensation, MCIAA may keep whatever income or
fruits it may have obtained from the parcels of land expropriated. In turn, the Ouanos need not require the
accounting of interests earned by the amounts they received as just compensation.

WHEREFORE, the petition in G.R. No. 168770 is GRANTED. Mactan-Cebu International Airport Authority is ordered
to reconvey subject Lot No. 763-A to petitioners Anunciacion vda. de Ouano, Mario P. Ouano, Leticia Ouano Arnaiz,
and Cielo Ouano Martinez.