SPOUSES BATERNA VS. NATIONAL TRANSMISSION CORPORATION
- G.R. Number: G.R. No. 276920
- Promulgated: 2026-01-21
Doctrine
## Facts of the Case The National Transmission Corporation (TRANSCO) filed a Complaint for expropriation against spouses Quirino Roni T. Baterna and Marites M. Baterna (spouses Baterna) for two parcels of land in Iloilo City, totaling 5,185 square meters. TRANSCO alleged that its predecessor, National Power Corporation (NPC), constructed steel towers and transmission lines across these properties in 1979 and 1995. After unsuccessful mediation, the RTC granted spouses Baterna's motion for TRANSCO to deposit the zonal valuation, leading to a deposit of PHP 6,688,650.00. The RTC subsequently formed a Board of Commissioners, which estimated the fair market value of the expropriated land at PHP 20,740,000.00. Spouses Baterna also raised the issue of "dangling areas," portions of their property rendered unusable by the transmission lines. The RTC later granted TRANSCO a Writ of Possession and ordered the Board of Commissioners to assess the "dangling areas," which were valued at PHP 21,584,000.00. The RTC, in its May 29, 2020 Order, approved both reports, ordering TRANSCO to pay PHP 20,740,000.00 for the directly affected properties (less deposit), and PHP 21,584,000.00 for the "dangling areas," with 12% interest. TRANSCO appealed to the Court of Appeals (CA), which reversed the RTC's Order. The CA remanded the case for the RTC to determine the exact date of taking (1979 or 1995) and recompute just compensation based on the fair market value or zonal value at that time. It also limited consequential damages for "dangling areas" to 50% of the BIR zonal valuation and revised the legal interest rate. The CA further directed a recalculation of commissioners' fees and awarded exemplary damages and attorney's fees to spouses Baterna due to TRANSCO's prolonged possession without proper expropriation. TRANSCO's motion for reconsideration was denied, leading to the present petition before the Supreme Court. ## Issues 1. Whether a valid taking of the subject properties occurred in 1979 and 1995, and consequently, whether just compensation should be computed based on the date of taking (1979 and 1995) or the date of filing of the Complaint (December 12, 2014). 2. Whether consequential damages for the "dangling areas" should be limited to 50% of the BIR zonal valuation. 3. Whether the CA correctly ordered the reconvening or reconstitution of the Board of Commissioners. ## Decision / Rationale **Issue 1:** The Court determined that a **valid taking** of the subject properties occurred in 1979 and 1995 when the transmission lines were installed. This is based on the requisites of taking established in **Republic v. Vda. de Castellvi**, which include entrance upon private property for more than a momentary period, under color of legal authority, for public use, and in a way that ousts the owner of beneficial enjoyment. The construction of permanent transmission lines constitutes an indefinite occupation and impairs normal use, thus depriving beneficial enjoyment. TRANSCO's authority stems from Republic Act No. 9136 in relation to Republic Act No. 10752, as amended by Republic Act No. 12289. The Court affirmed that the **reckoning point for just compensation** is the date of taking (1979 and 1995), not the date of filing the complaint. This follows Rule 67, Section 4 of the Rules of Court, which mandates valuation "as of the date of the taking of the property or the filing of the complaint, whichever came first." The Court distinguished this case from exceptions like **National Power Corporation v. Heirs of Sangkay** and **National Power Corporation v. Saludares**, which involved extraordinary circumstances that prevented landowners from timely asserting their rights. Here, the installation was open and known to petitioners. To address the inequity of delayed payment, the Court applied the **"present value formula"** to the fair market value at the time of taking. This formula, derived from **Republic v. Spouses Nocom** and **Heirs of Jose Mariano…