By Peter G. Jimenea
A thing clamors for its owner
On February 12, 2010, the Supreme Court (SC), Second Division, in its decision reminded the Iloilo City Government of its abuse of authority by initiating the seizure of a private property without just compensation to its lawful-owner.
The decision is reflected in G.R. No. 168967 entitled; “The Iloilo City Government represented by Mayor Jerry Trenas vs. Hon. Lolita Contreras-Besana, Presiding Judge of the Regional Trial Court, Br. 32 and Elpidio Javellana, Respondents.”
The Court said; “It is arbitrary and capricious for the government to initiate expropriation proceedings, seize a person’s private property, allow the order of expropriation to become final and executory yet, failed to justly compensate its owner for over 25 years.”
The lot in question since 1983, is situated behind the La Paz High School, in La Paz District, Iloilo City. It is owned by Elpidio Javellana who mortgaged the property to Southern Negros Development Bank prior the initiated expropriation proceedings of the city government.
The Court continues “This is government at its most high-handed irresponsible, and should be condemned in the strongest possible terms. For its failure to compensate the land-owner, the Iloilo City government is liable for damages.”
It started when the city/petitioner filed a complaint for eminent domain against Javellana and Southern Negros Development Bank, the latter as mortgagee. The two parcels of land are to be used as a school site for La Paz Public High School as planned by the city government on September 1981.
The property in its Tax declaration has a value of P60 per square meter or a total value of P43,560.00 for the two lots. But the owner asserted that the fair market value of his property is at P220 per square meter. The expropriation proceedings continued until the Court ruled in city/petitioner’s favor.
A Writ of Possession was issued to petitioner sometime in 1985 and was able to take possession of the property for a ten percent the price deposited in the name of the lot owner as certified by the city treasurer. On April 17, 2000, Javellana sought to withdraw the deposit, for the expropriated property but he discovered that there was none as certified by the Phil. Nat’l. Bank.
As there was no payment, Javellana filed a complaint against the city government for Recovery of Possession, Fixing, Recovery of Rental and Damages on April 2, 2003. Counsel for the city asserted Javellana could no longer recover his property as it is now in public used, only payment for the same can be claimed.
An Appraisal Committee was created by the Court to study the fair market value of the property. On November 25, 2003, Javellana asked the city government to deposit P254,000 equivalent to 10% of the fair market value of the property, determined by the Appraisal Committee in 2001 at the time the parties were negotiating for a settlement.
The case dragged for seven years. On February 12, 2010, the SC ruled that the city government should be held liable for damages for taking a private property without payment of just compensation. The prolonged occupation by a government agency of that property without expropriation proceedings undoubtedly entitled the landowner to damages.
Such loss entitles Javellana adequate compensation in the form of actual or compensatory damages with 6% legal interest on the value of land at the time of taking up until fully paid by government. The interest “runs as a matter of law and follows from the right of the landowner to be placed in good position as money can accomplish from date of taking.
The non-payment of the property in possession and without the benefit of expropriation proceedings or exerting efforts to ascertain ownership of the lot by negotiating with the owner are wanton and irresponsible acts which should be suppressed and corrected. (612 SCRA 458) God knows….. see the title!
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