STATUTORY CONSTRUCTION Cases

Contents
Caltex vs. Palomar (G.R. L-19650, 09/29/1966).......................................................................................2
RIZAL COMMERCIAL BANKING CORPORATION v. IAC, GR No. 74851, 1999-12-09...................................2
LITO CORPUZ v. PEOPLE, GR No. 180016, 2014-04-29.....................................................................2
The Director of Lands, Petitioner Vs. Court of Appeals and Teodoro Abistado, substituted by
Margarita, Marissa, Maribel, Arnold and Mary Ann, all surnamed Abistado, Respondents....................2
SECRETARY OF DEPARTMENT OF PUBLIC WORKS v. SPS. HERACLEO AND RAMONA
TECSON, GR No. 179334, 2013-07-01.....................................................................................................2
STATUTORY CONSTRUCTION Cases

Caltex vs. Palomar (G.R. L-19650, 09/29/1966)

FACTS:

Caltex conceived a promotional scheme which will increase its patronage for oil products called “Caltex Hooded Pump Contest.”
The contest calls for participants to estimate the number of liters a hooded gas pump at each Caltex station will dispense during a
specified period. To participate, entry forms are only needed which can be made available upon request at each Caltex station. No
fee is required to be paid nor purchase has to be made prior to participating. Foreseeing the extensive use of mails to publicize the
promotional scheme, Caltex made representations with the postal authorities to secure advanced clearance for mailing. Caltex,
through its counsel, posited that the contest does not violate anti-lottery provisions of the Postal Law. The Postmaster General
Palomar declined the grant of the requested clearance. Caltex sought a reconsideration. Palomar maintained that if the contest
was pursued, a fraud order will be issued against Caltex. Thus, this case at bar.

ISSUES:

1. Whether or not the petition states a sufficient cause of action for declaratory relief
2. Whether or not the proposed contest violates the Postal Law

RULINGS:

The Court held that the petition states a sufficient cause of action for declaratory relief since it qualifies for the 4 requisites on
invoking declaratory relief available to any person whose rights are affected by a statute to determine any question of
construction or validity. To the petitioner, the construction hampers or disturbs its freedom to enhance its business while to the
respondent, suppression of the petitioner’s proposed contest believed to transgress the law he has sworn to uphold and enforce is
an unavoidable duty.

Likewise, using the rules of Statutory Construction in discovering the meaning and intention of the authors in a case clouded with
doubt as to its application, it was held that the promotional scheme does not violate the Postal Law in that it does not entail
lottery or gift enterprise. Using the principle “noscitur a sociis’, the term under construction shall be understood by the words
preceding and following it. Thus, using the definitions of lottery and gift enterprise which both has the requisites of prize, chance
and consideration, the promo contest does not clearly violate the Postal Law because of lack of consideration.

RIZAL COMMERCIAL BANKING CORPORATION v. IAC, GR

No. 74851, 1999-12-09

Facts:
On October 26, 1984, RCBC requested the Provincial Sheriff of Rizal to extra-judicially foreclose its real
estate mortgage on some properties of BF Homes. A notice of extra-judicial foreclosure sale was issued
by the Sheriff on October 29, 1984, scheduled on November 29,... 1984, copies furnished both BF Homes
(mortgagor) and RCBC (mortgagee).
On motion of BF Homes, the SEC issued on November 28, 1984 in SEC Case No. 002693 a temporary
restraining order (TRO), effective for 20 days, enjoining RCBC and the sheriff from proceeding with the
public auction sale. The sale was rescheduled to January 29, 1985.
On January 25, 1985, the SEC ordered the issuance of a writ of preliminary injunction upon petitioner's
filing of a bond. However, petitioner did not file a bond until January 29, 1985, the very day of... f the
auction sale, so no writ of preliminary injunction was issued by... the SEC.
On February 5, 1985, BF Homes filed in the SEC a consolidated motion to annul the auction sale and to
cite RCBC and the sheriff for contempt.

On February 13, 1985, the SEC in Case No. 002693 belatedly issued a writ of preliminary injunction
stopping the auction sale which had been conducted by the sheriff two weeks earlier.
On March 13, 1985, despite SEC Case No. 002693, RCBC filed with the Regional Trial Court, Br. 140,
Rizal (CC 10042) an action for mandamus against the provincial sheriff of Rizal and his deputy to compel
them to execute in its favor a certificate of sale of the auctioned... properties.
On April 8, 1986, the IAC rendered a decision, setting aside the decision of the trial court, dismissing the
mandamus case and suspending issuance to RCBC of new land titles
Issues:
STATUTORY CONSTRUCTION Cases

Petitioner did not commit extrinsic fraud

SEC Case No. 2693 cannot be invoked to suspend Special Civil Case No. 10042, and for that matter, the
extra-judicial foreclosure of the real estate mortgage in petitioner's favor... the basis for the suspension
thereof did not exist so as to adversely affect the validity and regularity... thereof.
The Regional Trial court had jurisdiction to take cognizance of Special Civil Case No. 10042.
The Regional Trial court had jurisdiction over Special Civil Case No. 10042."

Ruling:
We find the motion for reconsideration meritorious.
The issue of whether or not preferred creditors of distressed corporations stand on equal footing with all
other creditors gains relevance and materiality only upon the appointment of a management committee,
rehabilitation receiver, board, or body.
It is thus adequately clear that suspension of claims against a corporation under rehabilitation is counted
or figured up only upon the appointment of a management committee or a rehabilitation receiver.
The majority ruling in our 1992 decision that preferred creditors of distressed corporations shall, in a way,
stand on equal footing with all other creditors, must be read and understood in the light of the foregoing
rulings. All claims of both a secured or unsecured... creditor, without distinction on this score, are
suspended once a management committee is appointed. Secured creditors, in the meantime, shall not be
allowed to assert such preference before the Securities and Exchange Commission. It may be stressed,
however, that... this shall only take effect upon the appointment of a management committee,
rehabilitation receiver, board, or body, as opined in the dissent.
In fine, the Court grants the motion for reconsideration for the cogent reason that suspension of actions
for claims commences only from the time a management committee or receiver is appointed by the SEC.
Petitioner RCBC, therefore, could have rightfully, as it did, move... for the extrajudicial foreclosure of its
mortgage on October 26, 1984 because a management committee was not appointed by the SEC until
March 18, 1985.
WHEREFORE, petitioner's motion for reconsideration is hereby GRANTED.

LITO CORPUZ v. PEOPLE, GR No. 180016, 2014-04-29

Facts:
petitioner Lito Corpuz (petitioner), seeking to reverse and set aside the Decision... finding the... petitioner
guilty beyond reasonable doubt of the crime of Estafa under Article 315, paragraph (1), sub-paragraph (b)
of the Revised Penal Code.
Private complainant Danilo Tangcoy and petitioner met at the Admiral Royale Casino in Olongapo City
sometime in 1990
Private complainant was then engaged in the business of lending money to casino players... upon hearing
that the former had some pieces of jewelry for... sale, petitioner approached him on May 2, 1991 at the
same casino and offered to sell the said pieces of jewelry on commission basis.
Private complainant agreed, and as a consequence, he turned over to petitioner the following items: an
18k diamond ring for men; a... woman's bracelet; one (1) men's necklace and another men's bracelet, with
an aggregate value of P98,000.00, as evidenced by a receipt of even date. They both agreed that
petitioner shall remit the proceeds of the sale, and/or, if unsold, to return the same items, within a... period
of 60 days.
STATUTORY CONSTRUCTION Cases

The period expired without petitioner remitting the proceeds of the sale or returning the pieces of
jewelry. When private complainant was able to meet petitioner, the latter promised the former that he
will pay the value of the said items entrusted... to him, but to no avail.
(5th) day of July 1991... accused, after having received from one Danilo Tangcoy, one (1) men's diamond
ring, 18k, worth P45,000.00;... one (1) three-baht men's bracelet, 22k, worth P25,000.00; one (1) two-baht
ladies' bracelet, 22k, worth P12,000.00, or in the total amount of Ninety-Eight Thousand Pesos
(P98,000.00), Philippine currency, under expressed obligation on the part of said accused to remit the...
proceeds of the sale of the said items or to return the same, if not sold, said accused, once in possession of
the said items, with intent to defraud, and with unfaithfulness and abuse of confidence, and far from
complying with his aforestated obligation, did then and there... wilfully, unlawfully and feloniously
misappropriate, misapply and convert to his own personal use and benefit the aforesaid jewelries (sic) or
the proceeds of the sale thereof, and despite repeated demands, the accused failed and refused to return
the said items or to remit the... amount of Ninety- Eight Thousand Pesos (P98,000.00), Philippine
currency, to the damage and prejudice of said Danilo Tangcoy in the aforementioned amount.
January 28, 1992, petitioner, with the assistance of his counsel, entered a plea of not guilty. Thereafter,
trial on the merits ensued.
The prosecution, to prove the above-stated facts, presented the lone testimony of Danilo Tangcoy. On the
other hand, the defense presented the lone testimony of petitioner, which can be summarized, as follows:
Petitioner and private complainant were collecting agents of Antonio Balajadia, who is engaged in the
financing business of extending loans to Base employees. For every collection made, they earn a
commission. Petitioner denied having transacted any business with... private complainant. However, he
admitted obtaining a loan from Balajadia sometime in 1989 for which he was made to sign a blank
receipt. He claimed that the same receipt was then dated May 2, 1991 and used as evidence against him
for the supposed agreement to sell... the subject pieces of jewelry, which he did not even see.
WHEREFORE, finding accused LITO CORPUZ GUILTY beyond reasonable doubt of the felony of
Estafa under Article 315, paragraph one (1), subparagraph (b) of the Revised Penal Code;
The case was elevated to the CA, however, the latter denied the appeal of petitioner and affirmed the
decision of the RTC, thus:
Issues:
A. THE HONORABLE COURT OF APPEALS ERRED IN CONFIRMING THE ADMISSION AND
APPRECIATION BY THE LOWER COURT OF PROSECUTION EVIDENCE, INCLUDING ITS
EXHIBITS, WHICH ARE MERE MACHINE COPIES, AS THIS VIOLATES THE BEST EVIDENCE
RULE;
B. THE HONORABLE COURT OF APPEALS ERRED IN AFFIRMING THE LOWER COURT'S
FINDING THAT THE CRIMINAL INFORMATION FOR ESTAFA WAS NOT FATALLY
DEFECTIVE ALTHOUGH THE SAME DID NOT CHARGE THE OFFENSE UNDER ARTICLE 315
(1) (B) OF THE REVISED PENAL CODE IN THAT -
1. THE INFORMATION DID NOT FIX A PERIOD WITHIN WHICH THE SUBJECT [PIECES OF]
JEWELRY SHOULD BE RETURNED, IF UNSOLD, OR THE MONEY TO BE REMITTED, IF
SOLD;
2. THE DATE OF THE OCCURRENCE OF THE CRIME ALLEGED IN THE INFORMATION AS
OF 05 JULY 1991 WAS MATERIALLY DIFFERENT FROM THE ONE TESTIFIED TO BY THE
PRIVATE COMPLAINANT WHICH WAS 02 MAY 1991;
C. THE HONORABLE COURT OF APPEALS ERRED IN AFFIRMING THE LOWER COURT'S
FINDING THAT DEMAND TO RETURN THE SUBJECT [PIECES OF] JEWELRY, IF UNSOLD, OR
REMIT THE PROCEEDS, IF SOLD AN ELEMENT OF THE OFFENSE WAS PROVED;
D. THE HONORABLE COURT OF APPEALS ERRED IN AFFIRMING THE LOWER COURT'S
FINDING THAT THE PROSECUTION'S CASE WAS PROVEN BEYOND REASONABLE DOUBT
ALTHOUGH -
STATUTORY CONSTRUCTION Cases

1. THE PRIVATE COMPLAINANT TESTIFIED ON TWO (2) VERSIONS OF THE INCIDENT;

2. THE VERSION OF THE PETITIONER ACCUSED IS MORE STRAIGHTFORWARD AND
LOGICAL, CONSISTENT WITH HUMAN EXPERIENCE;
3. THE EQUIPOISE RULE WAS NOT APPRECIATED IN AND APPLIED TO THIS CASE;
4. PENAL STATUTES ARE STRICTLY CONSTRUED AGAINST THE STATE.
Ruling:
This Court finds the present petition devoid of any merit.
The factual findings of the appellate court generally are conclusive, and carry even more weight when
said court affirms the findings of the trial court, absent any showing that the findings are totally devoid of
support in the records, or that they are so glaringly erroneous as... to constitute grave abuse of discretion.
[4] Petitioner is of the opinion that the CA erred in affirming the factual findings of the trial court. He
now comes to this Court raising both procedural and substantive issues.
According to petitioner, the CA erred in affirming the ruling of the trial court, admitting in evidence a
receipt dated May 2, 1991 marked as Exhibit "A" and its submarkings, although the same was merely a
photocopy, thus, violating the best evidence rule. However, the... records show that petitioner never
objected to the admissibility of the said evidence at the time it was identified, marked and testified upon
in court by private complainant. The CA also correctly pointed out that petitioner also failed to raise an
objection in his
Comment to the prosecution's formal offer of evidence and even admitted having signed the said receipt.
The established doctrine is that when a party failed to interpose a timely objection to evidence at the time
they were offered in evidence, such objection shall be... considered as waived.[5]
Another procedural issue raised is, as claimed by petitioner, the formally defective Information filed
against him. He contends that the Information does not contain the period when the pieces of jewelry
were supposed to be returned and that the date when the crime... occurred was different from the one
testified to by private complainant. This argument is untenable. The CA did not err in finding that the
Information was substantially complete and in reiterating that objections as to the matters of form and
substance in the
Information cannot be made for the first time on appeal.
It is true that the gravamen of the crime of estafa under Article 315, paragraph 1, subparagraph (b) of the
RPC is the appropriation or conversion of money or property received to the prejudice of the... owner[6]
and that the time of occurrence is not a material ingredient of the crime, hence, the exclusion of the period
and the wrong date of the occurrence of the crime, as reflected in the Information, do not make the latter
fatally defective.
The CA ruled:
Finally, the opinion advanced by Chief Justice Maria Lourdes P. A. Sereno echoes the view that the role
of the Court is not merely to dispense justice, but also the active duty to prevent injustice. Thus, in order
to prevent injustice in the present controversy, the Court... should not impose an obsolete penalty pegged
eighty three years ago, but consider the proposed ratio of 1:100 as simply compensating for inflation.
Furthermore, the Court has in the past taken into consideration "changed conditions" or "significant
changes in... circumstances" in its decisions.
Similarly, the Chief Justice is of the view that the Court is not delving into the validity of the substance of
a statute. The issue is no different from the Court's adjustment of indemnity in crimes against persons,
which the Court had previously adjusted in light of... current times, like in the case of People v. Pantoja.
[47] Besides, Article 10 of the Civil Code mandates a presumption that the lawmaking body intended
right and justice to prevail.
With due respect to the opinions and proposals advanced by the Chief Justice and my Colleagues, all the
proposals ultimately lead to prohibited judicial legislation. Short of being repetitious and as extensively
discussed above, it is truly beyond the powers of the Court... to legislate laws, such immense power
belongs to Congress and the Court should refrain from crossing this clear-cut divide. With regard to civil
STATUTORY CONSTRUCTION Cases

indemnity, as elucidated before, this refers to civil liability which is awarded to the offended party as a
kind of monetary... restitution. It is truly based on the value of money. The same cannot be said on
penalties because, as earlier stated, penalties are not only based on the value of money, but on several
other factors. Further, since the law is silent as to the maximum amount... that can be awarded and only
pegged the minimum sum, increasing the amount granted as civil indemnity is not proscribed. Thus, it
can be adjusted in light of current conditions.
Considering that the amount of P98,000.00 is P76,000.00 more than the P22,000.00 ceiling set by law,
then, adding one year for each additional P10,000.00, the maximum period of 6 years, 8 months and 21
days to 8 years of prision mayor minimum would be increased by 7... years. Taking the maximum of the
prescribed penalty, which is 8 years, plus an additional 7 years, the maximum of the indeterminate
penalty is 15 years.
One final note, the Court should give Congress a chance to perform its primordial duty of lawmaking.
The Court should not pre-empt Congress and usurp its inherent powers of making and enacting laws.
While it may be the most expeditious approach, a short cut by... judicial fiat is a dangerous proposition,
lest the Court dare trespass on prohibited judicial legislation.
WHEREFORE, the Petition for Review on Certiorari dated November 5, 2007 of petitioner Lito Corpuz
is hereby DENIED. Consequently, the Decision dated March 22, 2007 and Resolution dated September 5,
2007 of the Court of Appeals, which affirmed with... modification the Decision dated July 30, 2004 of the
Regional Trial Court, Branch 46, San Fernando City, finding petitioner guilty beyond reasonable doubt of
the crime of Estafa under Article 315, paragraph (1), sub-paragraph (b) of the Revised Penal Code, are
hereby
AFFIRMED with MODIFICATION that the penalty imposed is the indeterminate penalty of
imprisonment ranging from THREE (3) YEARS, TWO (2) MONTHS and ELEVEN DAYS of prision
correccional, as minimum, to FIFTEEN (15) YEARS of reclusion temporal as... maximum.
Pursuant to Article 5 of the Revised Penal Code, let a Copy of this Decision be furnished the President of
the Republic of the Philippines, through the Department of Justice.

The Director of Lands, Petitioner Vs. Court of Appeals and Teodoro

Abistado, substituted by Margarita, Marissa, Maribel, Arnold and
Mary Ann, all surnamed Abistado, Respondents.
G.R. No. 102858, July 28, 1997

Facts: Teodoro Abistado, private respondent, Filed a petition for original registration of his title over 648
square meters of land under P.D. No. 1529 or the Property Registration Decree. The application was
docketed as Land Registration Case (LRC) No. 86 and assigned to Branch 44 of the Regional Trial Court
of Mamburao, Occidental Mindoro. During the pendency of the case, Teodoro Abistado died and was
substituted by his children - Margarita, Marissa, Maribel, Arnold, and Mary Ann, all surnamed Abistado,
who were all represented by their aunt Josefa Abistado, ad litem ( act in which a lawsuit has a
representative in behalf of children not capable of representation.)

Land Registration Court dismissed the petition for want of jurisdiction in compliance with the mandatory
provision requiring publication of initial public hearing in a newspaper of general circulation. Records
show that applicants failed to comply with P.D. No. 1529 Section 23 (1) requiring publication of notice of
initial hearing in a newspaper of general circulation.
Initial public hearing was only published in the Official Gazette.

The case was elevated to the Court of Appeals which granted the application and ordered the registration
of title to Teodoro Abistado, since publication in a newspaper of general Circulation is merely procedural,
STATUTORY CONSTRUCTION Cases

hence dispensable. The Director of Land, represented by the Solicitor General, elevated this case to the
Supreme Court.

Issue: Whether or Not the Director of Land is correct that the publication of Notice of Initial hearing in a
Land Registration Case is mandatory.

Held: Yes. Section 23 of P.D. No. 1529 shall be followed requiring a publication once both in the Official
Gazette and newspaper of general circulation. The Land Registration Case is an in Rem proceeding,
meaning the applicant must prove his title over the land against all persons concerned, who might have
interest to right in the property and should effectively be invited in the court to prove why the title should
not be granted.

Such provision used the term "shall" which indicated that it is mandatory.
When the law speaks in clear and categorical language, there is no room for interpretation, vacillation, or
equivocation, there is room only for application.

Thus. Supreme Court affirmed the decision of the Lower Court dismissing the petition for registration of
Land Title to the respondents.

SECRETARY OF DEPARTMENT OF PUBLIC WORKS v. SPS.

HERACLEO AND RAMONA TECSON, GR No. 179334, 2013-07-
01
Facts:
This is a petition for review on certiorari under Rule 45 of the Rules of Court, assailing the Court of
Appeals (CA) Decision[1] dated July 31, 2007 in CA-G.R. CV No. 77997. The assailed decision affirmed
with modification the
Regional Trial Court (RTC)[2] Decision[3] dated March 22, 2002 in Civil Case No. 208-M-95.
Respondent spouses Heracleo and Ramona Tecson (respondents) are co-owners of a parcel of land with
an area of 7,268 square meters located in San Pablo, Malolos, Bulacan and covered by Transfer
Certificate of Title (TCT) No. T-43006[4] of the Register of
Deeds of Bulacan.
Said parcel of land was among the properties taken by the government sometime in 1940 without the
owners' consent and without the necessary expropriation proceedings and used for the construction of the
MacArthur Highway... letter[6] dated December 15, 1994, respondents demanded the payment of the fair
market value of the subject parcel of land.
Petitioner Celestino R. Contreras (petitioner Contreras)
District Engineer of the First Bulacan Engineering District of... petitioner Department of Public Works
and Highways (DPWH),... offered to pay the subject land at the rate of P0.70 per square meter per
Resolution of the Provincial Appraisal Committee (PAC) of Bulacan
Unsatisfied... respondents demanded for... the return of their property or the payment of compensation at
the current fair market value.[8]... respondents filed a Complaint[9] for recovery of possession with
damages against petitioners, praying that they be restored to the possession of the subject parcel of land
and that they be paid attorney's fees.
STATUTORY CONSTRUCTION Cases

Respondents claimed that the subject parcel of land was assessed at P2,543,800.00.[11]... petitioners
moved for the dismissal of the complaint
Instead of filing their Answer, petitioners moved for the dismissal of the complaint
On June 28, 1995, the RTC issued an Order[13] granting respondents' motion to dismiss based on the
doctrine of state immunity from suit.
respondents' claim includes the recovery of damages... there is no doubt that the suit is against the State
for which... prior waiver of immunity is required.
appellate court did not agree with the RTC and found instead that the doctrine of state immunity from suit
is not applicable... the recovery of compensation is the only relief available to the landowner
To deny such... relief would undeniably cause injustice to the landowner.
petitioner Contreras, in fact, had earlier offered the payment of compensation although at a lower rate.
the CA reversed and set aside the dismissal of the complaint and, consequently, remanded the case to...
the trial court for the purpose of determining the just compensation to which respondents are entitled to
recover from the government.
The Branch Clerk of Court was initially appointed as the Commissioner and designated as the Chairman
of the Committee that would determine just compensation... the case was later referred to the PAC for the
submission of a recommendation report on the... value of the subject property
In its appeal before the CA... petitioners raised the issues of prescription and laches... the CA brushed
aside on two grounds... first, that the issue had already been raised by petitioners when the case was
elevated before the CA in CA-G.R.
Although it was... not squarely ruled upon by the appellate court as it did not find any reason to delve
further on such issues... petitioners did not assail said decision barring them now from raising exactly the
same issues... the issues proper for resolution had been laid down in... the pre-trial order which did not
include the issues of prescription and laches.
while recognizing the rule that the just... compensation should be the reasonable value at the time of
taking which is 1940
Petitioners insist that the action is barred by prescription having been filed fifty-four (54) years after the
accrual of the action in 1940.
The instant case stemmed from an action for recovery of possession with damages filed by respondents
against petitioners.
, the RTC summarized the issues raised by the defendants... the pre-trial order explicitly defines and
limits the issues to be tried and controls the subsequent course of the action unless modified before trial to
prevent manifest injustice
Issues:
doctrine of state immunity from suit is not applicable
In its appeal before the CA, petitioners raised the issues of prescription and laches... the same can no
longer be further considered... the compensation would be paid only today... undisputed that the subject
property was taken by petitioners without the benefit of expropriation proceedings for the construction of
the MacArthur Highway. After the lapse of more than fifty years,... whether or not the plaintiffs were
entitled to just compensation... whether or not the valuation would be based on the corresponding value at
the time of the taking or at the time of the filing of the action... whether or not the plaintiffs were entitled
to damages. Nowhere did the pre-trial order indicate that prescription and laches... were to be considered
in the adjudication of the RTC... this case is not novel.
. The concept of just... compensation does not imply fairness to the property owner alone
Ruling:
the recovery of compensation is the only relief available to the landowner.
STATUTORY CONSTRUCTION Cases

WHEREFORE, premises considered, the Department of Public Works and Highways or its duly assigned
agencies are hereby directed to pay said Complainants/Appellants the amount of One Thousand Five
Hundred Pesos (P1,500.00) per square meter for the lot subject matter of... this case in accordance with
the Resolution of the Provincial Appraisal Committee dated December 19, 2001.
On appeal, the CA affirmed the above decision with the modification that the just compensation stated
above should earn interest of six percent (6%) per annum computed from the filing of the action on
March 17, 1995 until full payment.
the CA brushed aside on two grounds... the same can no longer be further considered. As to the propriety
of the property's valuation as determined by the PAC and adopted by the RTC
CA found it necessary to deviate from the general rule.
it would be obviously unjust and inequitable if respondents would be compensated based on the value of
the property in 1940... which is P0.70 per sq m... the appellate court found it just to award compensation
based on the value of the property at the time of payment.
therefore, adopted the RTC's determination of just compensation of P1,500.00 per... sq m as
recommended by the PAC
CA further ordered the payment of interest at the rate of six percent (6%) per annum reckoned from the
time of taking, which is the filing of the complaint on March 17, 1995
As aptly noted by the CA, the issues of prescription and laches are not proper issues for resolution as they
were not included in the pre-trial order. We quote with approval the CA's ratiocination
The Court thus determined the landowners' right to the payment of just compensation and, more
importantly, the amount of just... compensation
The Court has uniformly ruled that just compensation is the value of the property at the time of taking that
is controlling for purposes of compensation.
The reason for the rule has been clearly explained in Republic v. Lara, et al.,[38] and repeatedly held by
the Court in recent cases, thus:... x x x "[T]he value of the property should be fixed as of the date when it
was taken and not the date of the filing of the proceedings."
Both the RTC and the CA recognized that the fair market value of the subject property in 1940 was
P0.70/sq m... it should, therefore, be used in determining the amount due respondents instead of the
higher value which is P1,500.00.
premises considered, the petition is PARTIALLY GRANTED
The Court of Appeals Decision dated July 31, 2007 in CA G.R. CV No. 77997 is MODIFIED... the
valuation of the subject property owned by respondents shall be P0.70 instead of
Pl,SOO.OO per square meter, with interest at six percent (6%) per annum from the date of taking in 1940
instead of March 17, 1995, until full payment.
Principles:
first, that the issue had already been raised by petitioners when the case was elevated before the CA in
CA-G.R
Although it was... not squarely ruled upon by the appellate court as it did not find any reason to delve
further on such issues... the issues proper for resolution had been laid down in... the pre-trial order which
did not include the issues of prescription and laches.
while recognizing the rule that the just... compensation should be the reasonable value at the time of
taking which is 1940... t it would be obviously unjust and inequitable if respondents would be
compensated based on the value of the property in 1940... which is P0.70 per sq m... the compensation
would be paid only today.
Laches is principally a doctrine of equity which is applied to avoid recognizing a right when to do so
would result in a clearly inequitable situation or in an injustice.
STATUTORY CONSTRUCTION Cases

there is nothing inequitable in giving due course to respondents' claim

Neither shall prescription bar respondents' claim following the long-standing rule "that where private
property is taken by the Government for public use without first acquiring title thereto either through
expropriation or negotiated sale, the owner's action to... recover the land or the value thereof does not
prescribe.
When a property is taken by the government for public use, jurisprudence clearly provides for the
remedies available to a landowner
The owner may recover his property if its return is feasible... if it is not, the aggrieved owner may demand
payment of just compensation for the... land taken.
it should, therefore, be used in determining the amount due respondents instead of the higher value which
is P1,500.00.
The concept of just... compensation does not imply fairness to the property owner alone.
Compensation must be just not only to the property owner, but also to the public which ultimately bears
the cost of expropriation.
petitioners had been occupying the subject property for more than fifty years without the benefit of
expropriation proceedings
In taking respondents' property without the benefit of expropriation proceedings and without payment of
just compensation... petitioners clearly... acted in utter disregard of respondents' proprietary rights which
cannot be countenanced by the Court.