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GR No. 182209

2012-10-03

LAND BANK OF PHILIPPINES v. EMILIANO R. SANTIAGO

LEONARDO-DE CASTRO, J.

The Court has allowed the grant of interest in expropriation cases where there is delay in the payment of just compensation.[55] In fact, the interest imposed in case of delay in payments in agrarian cases is 12% per annum and not 6%[56] as "the imposition x x x [is] in the nature of damages for delay in payment which in effect makes the obligation on the part of the government one of forbearance."[57]

GR No. 168105

2011-07-27

LAND BANK OF PHILIPPINES v. SEVERINO LISTANA

VILLARAMA, JR., J.

The valuation of property in expropriation cases pursuant to R.A. No. 6657 or the Comprehensive Agrarian Reform Law, is essentially a judicial function which is vested in the RTC acting as Special Agrarian Court and cannot be lodged with administrative agencies such as the DAR.[20] Section 57 of said law explicitly states that: SEC. 57. Special Jurisdiction. - The Special Agrarian Courts shall have original and exclusive jurisdiction over all petitions for the determination of just compensation to landowners, and the prosecution of all criminal offenses under this Act. The Rules of Court shall apply to all proceedings before the Special Agrarian Courts, unless modified by this Act.

GR No. 171840

2011-04-04

LAND BANK OF PHILIPPINES v. DEPARTMENT OF AGRARIAN REFORM

VILLARAMA, JR., J.

Under Section 1 of Executive Order No. 405, series of 1990, petitioner LBP is charged with the initial responsibility of determining the value of lands placed under land reform and the just compensation to be paid for their taking. Through a notice of voluntary offer to sell (VOS) submitted by the landowner, accompanied by the required documents, the DAR evaluates the application and determines the land's suitability for agriculture. The LBP likewise reviews the application and the supporting documents and determines the valuation of the land. Thereafter, the DAR issues the Notice of Land Valuation to the landowner. In both voluntary and compulsory acquisitions, wherein the landowner rejects the offer, the DAR opens an account in the name of the landowner and conducts a summary administrative proceeding. If the landowner disagrees with the valuation, the matter may be brought to the RTC, acting as a special agrarian court.[20]

GR No. 164195

2010-10-12

APO FRUITS CORPORATION v. LAND BANK OF PHILIPPINES

BRION, J.

We subsequently upheld Republic's 12% per annum interest rate on the unpaid expropriation compensation in the following cases: Reyes v. National Housing Authority,[19] Land Bank of the Philippines v. Wycoco,[20] Republic v. Court of Appeals,[21] Land Bank of the Philippines v. Imperial,[22] Philippine Ports Authority v. Rosales-Bondoc,[23] and Curata v. Philippine Ports Authority.[24]

GR No. 164195

2009-12-04

APO FRUITS CORPORATION v. CA

BERSAMIN, J.

In Land Bank of the Philippines v. Wycoco,[17] however, the Court came to explicitly rule that interest is to be imposed on the just compensation only in case of delay in its payment, which fact must be sufficiently established. Significantly, Wycoco was moored on Article 2209, Civil Code, which provides: Article 2209. If the obligation consists in the payment of money and the debtor incurs in delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the interest agreed upon, and in the absence of stipulation, the legal interest, which is six per cent per annum. (1108)

GR No. 165428

2009-11-25

LAND BANK OF PHILIPPINES v. TERESITA PANLILIO LUCIANO

PERALTA, J.

Under Section 1 of E.O. No. 405, series of 1990, the Land Bank of the Philippines is charged with the initial responsibility of determining the value of lands placed under land reform and the just compensation to be paid for their taking. Through a notice of voluntary offer to sell (VOS) submitted by the landowner, accompanied by the required documents, the DAR evaluates the application and determines the land's suitability for agriculture. The LBP likewise reviews the application and the supporting documents and determines the valuation of the land. Thereafter, the DAR issues the Notice of Land Valuation to the landowner. In both voluntary and compulsory acquisitions, wherein the landowner rejects the offer, the DAR opens an account in the name of the landowner and conducts a summary administrative proceeding. If the landowner disagrees with the valuation, the matter may be brought to the RTC, acting as a special agrarian court. This, in essence, is the procedure for the determination of just compensation.[29]

GR No. 164631

2009-06-26

LAND BANK OF PHILIPPINES v. RENE RALLA BELISTA

PERALTA, J.

In Land Bank of the Philippines v. Wycoco,[7] the Court upheld the RTC's jurisdiction over Wycoco's petition for determination of just compensation even where no summary administrative proceedings was held before the DARAB which has primary jurisdiction over the determination of land valuation. The Court held:In Land Bank of the Philippines v. Court of Appeals, the landowner filed an action for determination of just compensation without waiting for the completion of DARAB's re-evaluation of the land. This, notwithstanding, the Court held that the trial court properly acquired jurisdiction because of its exclusive and original jurisdiction over determination of just compensation, thus -

GR No. 175422

2009-03-13

ALLIED BANKING CORPORATION v. LAND BANK OF PHILIPPINES

CHICO-NAZARIO, J.

While the determination of just compensation is essentially a judicial function which is vested in the RTC acting as Special Agrarian Court,[12] nevertheless, this Court disregarded the determination of just compensation made by the RTC in Land Bank of the Philippines v. Spouses Banal,[13] Land Bank of the Philippines v. Celada,[14] and in Land Bank of the Philippines v. Lim,[15] when, as in this case, the judge gravely abused his discretion by not taking into full consideration the factors enumerated in the agrarian law and further detailed by the DAR administrative order implementing the same.

GR No. 180557

2008-09-26

HEIRS OF ROQUE F. TABUENA v. LAND BANK OF PHILIPPINES

YNARES-SATIAGO, J.

Section 11. Land Valuation and Preliminary Determination and Payment of Just Compensation. The decision of the Adjudicator on land valuation and preliminary determination and payment of just compensation shall not be appealable to the Board but shall be brought directly to the Regional Trial Courts designated as Special Agrarian Courts within fifteen (15) days from receipt of the notice thereof. Any party shall be entitled to only one motion for reconsideration. (Underlining for emphasis)[25]

GR No. 172410

2008-04-14

REPUBLIC v. HOLY TRINITY REALTY DEVELOPMENT CORP.

CHICO-NAZARIO, J.

The TRB reminds us that there are two stages[11] in expropriation proceedings, the determination of the authority to exercise eminent domain and the determination of just compensation. The TRB argues that it is only during the second stage when the court will appoint commissioners and determine claims for entitlement to interest, citing Land Bank of the Philippines v. Wycoco[12] and National Power Corporation v. Angas.[13]

GR NO. 171941

2007-08-02

LAND BANK OF PHILIPPINES v. LUZ LIM

CARPIO MORALES, J.

The amount determined by the RTC would be the basis of the interest income on the cash and bond deposits due respondents from the time of the taking of the property up to the time of actual payment of just compensation.[40]

GR NO. 157753

2007-02-12

LAND BANK OF PHILIPPINES v. JUAN H. IMPERIAL

QUISUMBING, J.

Such being the case, it is inequitable to determine the just compensation based solely on the formula provided by DAR A.O. No. 13, as amended. Thus, we return to the guidelines provided under P.D. No. 27 and E.O. No. 228 since the same remained operative despite the passage of Republic Act No. 6657.[19] On this score, E.O. No. 229,[20] which provides for the mechanism of Rep. Act No. 6657, specifically states: "(P)residential Decree No. 27, as amended, shall continue to operate with respect to rice and corn lands, covered thereunder. ...."[21] However, since just compensation embraces not only the correct determination of the amount to be paid to the owners of the land, but also its payment within a reasonable time from the taking of the land,[22] we think that the appellate court correctly imposed an interest in the nature of damages for the delay. In line with current jurisprudence,[23] we set the legal interest at 12% per annum. To this extent, we agree that we should modify the appellate court's ruling.

GR NO. 164195

2007-02-06

APO FRUITS CORPORATION v. CA

CHICO-NAZARIO, J.

Land Valuation and Preliminary Determination and Payment of Just Compensation. - The decision of the Adjudicator on land valuation and preliminary determination and payment of just compensation shall not be appealable to the Board but shall be brought directly to the Regional Trial Courts designated as Special Agrarian Courts within fifteen (15) days from receipt of the notice thereof. Any party shall be entitled to only one motion for reconsideration. (Emphasis supplied.) The next question now crops up, who shall determine just compensation? It is now settled that the valuation of property in eminent domain is essentially a judicial function which is vested with the RTC acting as Special Agrarian Court. The same cannot be lodged with administrative agencies[69] and may not be usurped by any other branch or official of the government.[70]

GR NO. 164876

2006-01-23

LAND BANK OF PHILIPPINES v. LEONILA P. CELADA

YNARES-SANTIAGO, J.

In the same vein, there is no merit to petitioner's contention that respondent failed to exhaust administrative remedies when she directly filed the petition for determination of just compensation with the SAC even before the DARAB case could be resolved. The issue is now moot considering that the valuation made by petitioner had long been affirmed by the DARAB in its order dated April 12, 2000. As held in Land Bank of the Philippines v. Wycoco,[25] the doctrine of exhaustion of administrative remedies is inapplicable when the issue is rendered moot and academic, as in the instant case.

	GR No. 182209 2012-10-03	LAND BANK OF PHILIPPINES v. EMILIANO R. SANTIAGO LEONARDO-DE CASTRO, J.
The Court has allowed the grant of interest in expropriation cases where there is delay in the payment of just compensation.[55] In fact, the interest imposed in case of delay in payments in agrarian cases is 12% per annum and not 6%[56] as "the imposition x x x [is] in the nature of damages for delay in payment which in effect makes the obligation on the part of the government one of forbearance."[57]
	GR No. 168105 2011-07-27	LAND BANK OF PHILIPPINES v. SEVERINO LISTANA VILLARAMA, JR., J.
The valuation of property in expropriation cases pursuant to R.A. No. 6657 or the Comprehensive Agrarian Reform Law, is essentially a judicial function which is vested in the RTC acting as Special Agrarian Court and cannot be lodged with administrative agencies such as the DAR.[20] Section 57 of said law explicitly states that: SEC. 57. Special Jurisdiction. - The Special Agrarian Courts shall have original and exclusive jurisdiction over all petitions for the determination of just compensation to landowners, and the prosecution of all criminal offenses under this Act. The Rules of Court shall apply to all proceedings before the Special Agrarian Courts, unless modified by this Act.
	GR No. 171840 2011-04-04	LAND BANK OF PHILIPPINES v. DEPARTMENT OF AGRARIAN REFORM VILLARAMA, JR., J.
Under Section 1 of Executive Order No. 405, series of 1990, petitioner LBP is charged with the initial responsibility of determining the value of lands placed under land reform and the just compensation to be paid for their taking. Through a notice of voluntary offer to sell (VOS) submitted by the landowner, accompanied by the required documents, the DAR evaluates the application and determines the land's suitability for agriculture. The LBP likewise reviews the application and the supporting documents and determines the valuation of the land. Thereafter, the DAR issues the Notice of Land Valuation to the landowner. In both voluntary and compulsory acquisitions, wherein the landowner rejects the offer, the DAR opens an account in the name of the landowner and conducts a summary administrative proceeding. If the landowner disagrees with the valuation, the matter may be brought to the RTC, acting as a special agrarian court.[20]
	GR No. 164195 2010-10-12	APO FRUITS CORPORATION v. LAND BANK OF PHILIPPINES BRION, J.
We subsequently upheld Republic's 12% per annum interest rate on the unpaid expropriation compensation in the following cases: Reyes v. National Housing Authority,[19] Land Bank of the Philippines v. Wycoco,[20] Republic v. Court of Appeals,[21] Land Bank of the Philippines v. Imperial,[22] Philippine Ports Authority v. Rosales-Bondoc,[23] and Curata v. Philippine Ports Authority.[24]
	GR No. 164195 2009-12-04	APO FRUITS CORPORATION v. CA BERSAMIN, J.
In Land Bank of the Philippines v. Wycoco,[17] however, the Court came to explicitly rule that interest is to be imposed on the just compensation only in case of delay in its payment, which fact must be sufficiently established. Significantly, Wycoco was moored on Article 2209, Civil Code, which provides: Article 2209. If the obligation consists in the payment of money and the debtor incurs in delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the interest agreed upon, and in the absence of stipulation, the legal interest, which is six per cent per annum. (1108)
	GR No. 165428 2009-11-25	LAND BANK OF PHILIPPINES v. TERESITA PANLILIO LUCIANO PERALTA, J.
Under Section 1 of E.O. No. 405, series of 1990, the Land Bank of the Philippines is charged with the initial responsibility of determining the value of lands placed under land reform and the just compensation to be paid for their taking. Through a notice of voluntary offer to sell (VOS) submitted by the landowner, accompanied by the required documents, the DAR evaluates the application and determines the land's suitability for agriculture. The LBP likewise reviews the application and the supporting documents and determines the valuation of the land. Thereafter, the DAR issues the Notice of Land Valuation to the landowner. In both voluntary and compulsory acquisitions, wherein the landowner rejects the offer, the DAR opens an account in the name of the landowner and conducts a summary administrative proceeding. If the landowner disagrees with the valuation, the matter may be brought to the RTC, acting as a special agrarian court. This, in essence, is the procedure for the determination of just compensation.[29]
	GR No. 164631 2009-06-26	LAND BANK OF PHILIPPINES v. RENE RALLA BELISTA PERALTA, J.
In Land Bank of the Philippines v. Wycoco,[7] the Court upheld the RTC's jurisdiction over Wycoco's petition for determination of just compensation even where no summary administrative proceedings was held before the DARAB which has primary jurisdiction over the determination of land valuation. The Court held:In Land Bank of the Philippines v. Court of Appeals, the landowner filed an action for determination of just compensation without waiting for the completion of DARAB's re-evaluation of the land. This, notwithstanding, the Court held that the trial court properly acquired jurisdiction because of its exclusive and original jurisdiction over determination of just compensation, thus -
	GR No. 175422 2009-03-13	ALLIED BANKING CORPORATION v. LAND BANK OF PHILIPPINES CHICO-NAZARIO, J.
While the determination of just compensation is essentially a judicial function which is vested in the RTC acting as Special Agrarian Court,[12] nevertheless, this Court disregarded the determination of just compensation made by the RTC in Land Bank of the Philippines v. Spouses Banal,[13] Land Bank of the Philippines v. Celada,[14] and in Land Bank of the Philippines v. Lim,[15] when, as in this case, the judge gravely abused his discretion by not taking into full consideration the factors enumerated in the agrarian law and further detailed by the DAR administrative order implementing the same.
	GR No. 180557 2008-09-26	HEIRS OF ROQUE F. TABUENA v. LAND BANK OF PHILIPPINES YNARES-SATIAGO, J.
Section 11. Land Valuation and Preliminary Determination and Payment of Just Compensation. The decision of the Adjudicator on land valuation and preliminary determination and payment of just compensation shall not be appealable to the Board but shall be brought directly to the Regional Trial Courts designated as Special Agrarian Courts within fifteen (15) days from receipt of the notice thereof. Any party shall be entitled to only one motion for reconsideration. (Underlining for emphasis)[25]
	GR No. 172410 2008-04-14	REPUBLIC v. HOLY TRINITY REALTY DEVELOPMENT CORP. CHICO-NAZARIO, J.
The TRB reminds us that there are two stages[11] in expropriation proceedings, the determination of the authority to exercise eminent domain and the determination of just compensation. The TRB argues that it is only during the second stage when the court will appoint commissioners and determine claims for entitlement to interest, citing Land Bank of the Philippines v. Wycoco[12] and National Power Corporation v. Angas.[13]
	GR NO. 171941 2007-08-02	LAND BANK OF PHILIPPINES v. LUZ LIM CARPIO MORALES, J.
The amount determined by the RTC would be the basis of the interest income on the cash and bond deposits due respondents from the time of the taking of the property up to the time of actual payment of just compensation.[40]
	GR NO. 157753 2007-02-12	LAND BANK OF PHILIPPINES v. JUAN H. IMPERIAL QUISUMBING, J.
Such being the case, it is inequitable to determine the just compensation based solely on the formula provided by DAR A.O. No. 13, as amended. Thus, we return to the guidelines provided under P.D. No. 27 and E.O. No. 228 since the same remained operative despite the passage of Republic Act No. 6657.[19] On this score, E.O. No. 229,[20] which provides for the mechanism of Rep. Act No. 6657, specifically states: "(P)residential Decree No. 27, as amended, shall continue to operate with respect to rice and corn lands, covered thereunder. ...."[21] However, since just compensation embraces not only the correct determination of the amount to be paid to the owners of the land, but also its payment within a reasonable time from the taking of the land,[22] we think that the appellate court correctly imposed an interest in the nature of damages for the delay. In line with current jurisprudence,[23] we set the legal interest at 12% per annum. To this extent, we agree that we should modify the appellate court's ruling.
	GR NO. 164195 2007-02-06	APO FRUITS CORPORATION v. CA CHICO-NAZARIO, J.
Land Valuation and Preliminary Determination and Payment of Just Compensation. - The decision of the Adjudicator on land valuation and preliminary determination and payment of just compensation shall not be appealable to the Board but shall be brought directly to the Regional Trial Courts designated as Special Agrarian Courts within fifteen (15) days from receipt of the notice thereof. Any party shall be entitled to only one motion for reconsideration. (Emphasis supplied.) The next question now crops up, who shall determine just compensation? It is now settled that the valuation of property in eminent domain is essentially a judicial function which is vested with the RTC acting as Special Agrarian Court. The same cannot be lodged with administrative agencies[69] and may not be usurped by any other branch or official of the government.[70]
	GR NO. 164876 2006-01-23	LAND BANK OF PHILIPPINES v. LEONILA P. CELADA YNARES-SANTIAGO, J.
In the same vein, there is no merit to petitioner's contention that respondent failed to exhaust administrative remedies when she directly filed the petition for determination of just compensation with the SAC even before the DARAB case could be resolved. The issue is now moot considering that the valuation made by petitioner had long been affirmed by the DARAB in its order dated April 12, 2000. As held in Land Bank of the Philippines v. Wycoco,[25] the doctrine of exhaustion of administrative remedies is inapplicable when the issue is rendered moot and academic, as in the instant case.

LAND BANK OF PHILIPPINES v. FELICIANO F. WYCOCO