G. Expropriation (Rule 67; RA 10752, as amended by RA 12289)

Expropriation

It is a process by which the power of eminent domain is carried out; taking of privately owned property by the government under eminent domain.

Incapable of Pecuniary Estimation

An expropriation suit is incapable of pecuniary estimation. An expropriation suit does not involve the recovery of a sum of money. Rather, it deals with the exercise by the government of its authority and right to take private property for public use. Hence, jurisdiction over expropriation proceedings is lodged with the RTC. (Barangay San Roque v. Heirs of Pastor, G.R. No. 138896, 2000)

MATTERS TO ALLEGE IN COMPLAINT FOR EXPROPRIATION

An expropriation proceeding is commenced by the filing of a verified complaint which shall:

• State with certainty the right of the plaintiff to expropriation and the purpose thereof;
• Describe the real or personal property sought to be expropriated; and
• Join as defendants all persons owning or claiming to own, or occupying, any part of the property or interest therein showing as far as practicable the interest of each defendant.
• If the plaintiff cannot with accuracy identify the real owners, averment to that effect must be made in the complaint. (Sec 1, Rule 67)

Note: When the right of the plaintiff to expropriate is conferred by law, the complaint does not have to state with certainty the right of expropriation.

Requisites for the Local Government to Validly Exercise Eminent Domain

• An ordinance is enacted by the local legislative council authorizing the local chief executive, in behalf of the LGU, to exercise the power of eminent domain or pursue expropriation proceedings over a particular private property;
• The power of eminent domain is exercised for public use, purpose or welfare, or for the benefit of the poor and the landless;
• There is payment of just compensation, as required under Section 9, Article III of the Constitution, and other pertinent laws; and
• 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. (Municipality of Parañaque v. V.M. Realty Corporation, G.R. No. 127820, 1998)

Where to Deposit

The deposit shall be made with the authorized government depositary, i.e., depository bank (PNB). (Sec. 2, Rule 67).

Note: This system of payment does not apply in the acquisition of right-of-way, site or location for any national government infrastructure project through expropriation.

System of Deposit; When Governed by R.A. 8974

RA 8794 provides for a more favorable to the property owner than the procedure provided in Rule 67. RA 8974 applies in instances when the national government expropriates property for ‘national government infrastructure projects’ only.

Thus, for other purposes, the assessed value standard and the deposit prescribed in Rule 67 continues to apply. (Republic v. Gingoyon, G.R. No. 166429, 2005)

Difference between Rule 67 and R.A. No. 8974

With Objections – Serve Answer

If a defendant has objections to the filing of or the allegations in the complaint, he shall serve his answer within the time stated in the summons. (Id.)

Contents of Answer

• The answer shall specifically designate or identify the property in which he claims to have an interest;
• State the nature and extent of the interest claimed; and
• Adduce all his objections and defenses to the taking of his property. (Id.)

No counterclaim, cross-claim or third-party complaint shall be alleged or allowed in the answer or any subsequent pleading. (Id.)

Motion to dismiss is not permitted in a complaint for expropriation. (Masikip v. City of Pasig, G.R. No. 136349, 2006)

A defendant waives all defenses and objections not so alleged but the court, in the interest of justice, may permit amendments to the answer to be made not later than 10 days from the filing thereof. (Sec. 3, Rule 67)

However, at the trial of the issue of just compensation, whether or not a defendant has previously appeared or answered, he may present evidence as to the amount of the compensation to be paid for his property, and he may share in the distribution of the award. (Id.)

ORDER OF EXPROPRIATION

The order of expropriation forecloses any further objections to the right to expropriate, including the public purpose of the same.

The court will then proceed to resolve the matter of just compensation.

Such final order sustaining the right to expropriate the property may be appealed by any party aggrieved thereby. Such appeal, however, shall not prevent the court from determining the just compensation to be paid.

Note: Expropriation is one of the actions wherein multiple appeals are permitted. An appeal may be taken from the order of expropriation which authorizes the expropriation. Another appeal may lie against the judgment on the just compensation to be paid.

Since multiple appeals are permitted, the reglementary period to appeal shall be 30 days and a record on appeal shall be required for each of the permissible appeals.

After the rendition of such an order, the plaintiff shall not be permitted to dismiss or discontinue the proceeding except on such terms as the court deems just and equitable. (Sec. 4, Rule 67)

Judicial Review of the Exercise of Eminent Domain; Limitations

Judicial review of the exercise of eminent domain is limited to the following areas of concern:

• The adequacy of the compensation;
• The necessity of the taking; and
• The public use character of the purpose of the taking. (Masikip v. City of Pasig, G.R. No. 136349, 2006)

Action Upon the Report

Upon the expiration of the period of 10 days referred to in the preceding section, or even before the expiration of such period but after all the interested parties have filed their objections to the report or their statement of agreement therewith, the court may, after hearing:

• Accept the report and render judgment in accordance therewith; or
• For cause shown, it may recommit the same to the commissioners for further report of facts; or
• It may set aside the report and appoint new commissioners; or
• It may accept the report in part and reject it in part; and
• It may make such order or render such judgment as shall secure to the plaintiff the property essential to the exercise of his right of expropriation, and to the defendant just compensation for the property so taken. (Sec. 8, Rule 67)

When Title in Expropriation Becomes Vested

• Personal property - upon payment of just compensation;
• Real property - upon payment of just compensation AND registration. (Secs. 10 and 13, Rule 67)