Vol. 466, August 9, 2005 235
Vol. 466, August 9, 2005 235
Vol. 466, August 9, 2005 235
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* SECOND DIVISION.
236
Jesus Is Lord Christian School Foundation, Inc. vs. Municipality (now City)
of Pasig, Metro Manila
for public use without just compensation.” Furthermore, the due process and
equal protection clauses act as additional safeguards against the arbitrary
exercise of this governmental power.
Same; Local Government Units; The authority to condemn is to be
strictly construed in favor of the owner and against the condemnor—when
the power is granted, the extent to which it may be exercised is limited to the
express terms or clear implication of the statute in which the grant is
contained; The condemnor has the burden of proving all the essentials
necessary to show the right of condemnation.—The exercise of the right of
eminent domain, whether directly by the State or by its authorized agents, is
necessarily in derogation of private rights. It is one of the harshest
proceedings known to the law. Consequently, when the sovereign delegates
the power to a political unit or agency, a strict construction will be given
against the agency asserting the power. The authority to condemn is to be
strictly construed in favor of the owner and against the condemnor. When
the power is granted, the extent to which it may be exercised is limited to
the express terms or clear implication of the statute in which the grant is
contained. Corollarily, the respondent, which is the condemnor, has the
burden of proving all the essentials necessary to show the right of
condemnation. It has the burden of proof to establish that it has complied
with all the requirements provided by law for the valid exercise of the power
of eminent domain.
Same; Same; Requisites for Valid Exercise of the Power of Eminent
Domain by Local Government Units.—The Court declared that the
following requisites for the valid exercise of the power of eminent domain
by a local government unit must be complied with: 1. An ordinance is
enacted by the local legislative council authorizing the local chief executive,
in behalf of the local government unit, to exercise the power of eminent
domain or pursue expropriation proceedings over a particular private
property. 2. The power of eminent domain is exercised for public use,
purpose or welfare, or for the benefit of the poor and the landless. 3. There
is payment of just compensation, as required under Section 9, Article III of
the Constitution, and other pertinent laws. 4. A valid and definite offer has
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237
Jesus Is Lord Christian School Foundation, Inc. vs. Municipality (now City)
of Pasig, Metro Manila
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property for a reasonable price must be made to the owner or his privy. A
single bona fide offer that is rejected by the owner will suffice.
238
Jesus Is Lord Christian School Foundation, Inc. vs. Municipality (now City)
of Pasig, Metro Manila
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239
Jesus Is Lord Christian School Foundation, Inc. vs. Municipality (now City)
of Pasig, Metro Manila
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240
Jesus Is Lord Christian School Foundation, Inc. vs. Municipality (now City)
of Pasig, Metro Manila
is for the public good and there is genuine necessity of public character.
Government may not capriciously choose what private property should be
taken.
Same; Same; The testimony of witnesses that although there were other
ways through which one can enter the vicinity, no vehicle, however,
especially fire trucks, could enter the area except through the property
sought to be expropriated is more than sufficient to establish that there is a
genuine necessity for the construction of a road in the area—absolute
necessity is not required, only reasonable and practical necessity will
suffice.—The respondent has demonstrated the necessity for constructing a
road from E. R. Santos Street to Sto. Tomas Bukid. The witnesses, who
were residents of Sto. Tomas Bukid, testified that although there were other
ways through which one can enter the vicinity, no vehicle, however,
especially fire trucks, could enter the area except through the newly
constructed Damayan Street. This is more than sufficient to establish that
there is a genuine necessity for the construction of a road in the area. After
all, absolute necessity is not required, only reasonable and practical
necessity will suffice. Nonetheless, the respondent failed to show the
necessity for constructing the road particularly in the petitioner’s property
and not elsewhere. We note that the whereas clause of the ordinance states
that the 51-square meter lot is the shortest and most suitable access road to
connect Sto. Tomas Bukid to E. R. Santos Street. The respondent’s
complaint also alleged that the said portion of the petitioner’s lot has been
surveyed as the best possible ingress and egress. However, the respondent
failed to adduce a preponderance of evidence to prove its claims.
Same; Same; Due Process; Ocular Inspections; An ocular inspection is
part of the trial as evidence is thereby received and the parties are entitled
to be present at any stage of the trial—where the property owner was not
notified of any ocular inspection of the property, any factual finding of the
court based on the said inspection has no probative weight.—As correctly
pointed out by the petitioner, there is no showing in the record that an ocular
inspection was conducted during the trial. If, at all, the trial court conducted
an ocular inspection of the subject property during the trial, the petitioner
was not notified thereof. The petitioner was, therefore, deprived of its right
to due process. It bears stressing that an ocular inspection is part of the trial
as evidence is thereby received and the parties are
241
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Jesus Is Lord Christian School Foundation, Inc. vs. Municipality (now City)
of Pasig, Metro Manila
The Antecedents
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242
2
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2
conflagration. Likewise, the residents
3
in the area needed the road
for water and electrical outlets. The municipality then decided to
acquire 51 square meters out of the 1,791-square meter property of
Lorenzo Ching Cuanco, Victor Ching Cuanco and Ernesto Ching
Cuanco4 Kho covered by Transfer Certificate of Title (TCT) No. PT-
66585, which is abutting E. R. Santos Street.
On April
5
19, 1993, the Sangguniang Bayan of Pasig approved an
Ordinance authorizing the municipal mayor to initiate expropriation
proceedings to acquire the said property and appropriate the fund
therefor. The ordinance stated that the property owners were notified
of the municipality’s intent to purchase the property for public use as
an access road but they rejected the offer.
On July 21, 1993, the municipality filed a complaint, amended on
August 6, 1993, against the Ching Cuancos for the expropriation of
the property under Section 19 of Republic Act (R.A.) No. 7160,
otherwise known as the Local Government Code. The plaintiff
alleged therein that it notified the defendants, by letter, of its
intention to construct an access road on a portion of the property but
they refused to sell the same portion. The plaintiff appended to the
complaint a photocopy
6
of the letter addressed to defendant Lorenzo
Ching Cuanco.
The plaintiff deposited with the RTC 15% of the market value of
the property based on the latest tax declaration covering the
property. On plaintiff’s motion, the RTC issued a writ of possession
over the property sought to be expropriated. On November 26, 1993,
the plaintiff caused the annotation of a notice of lis pendens at the
dorsal portion of TCT No. PT-
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243
8
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8
In their answer, the defendants claimed that, as early as February
1993, they had 9
sold the said property to JILCSFI as evidenced by a
deed of sale bearing the signature of defendant Ernesto Ching
Cuanco Kho and his wife.
When apprised about the complaint, JILCSFI filed a motion for
leave to intervene as defendant-in-intervention,
10
which motion the
RTC granted on August 26, 1994.
In its answer-in-intervention, JILCSFI averred, by way of special
and affirmative defenses, that the plaintiff’s exercise of eminent
domain was only for a particular class and not for the benefit of the
poor and the landless. It alleged that the property sought to be
expropriated is not the best portion for the road and the least
burdensome to it. The intervenor filed a crossclaim against its co-
defendants for 11
reimbursement in case the subject property is
expropriated. In its amended answer, JILCSFI also averred that it
has been denied the use and enjoyment of its property because the
road was constructed in the middle portion and that the plaintiff was
not the real party-in-interest. The intervenor, likewise, interposed
counterclaims
12
against the plaintiff for moral damages and attorney’s
fees.
During trial, Rolando Togonon, the plaintiff’s messenger,
testified on direct examination that on February 23, 1993, he served
a letter of Engr. Jose Reyes, the Technical Assistant to
_______________
7 Id., at p. 56.
8 Id., at p. 21.
9 Exhibits “2” and “3.”
10 Id., at p. 24.
11 Records, p. 26.
12 Id., at pp. 31-32.
244
met accidents while walking along the bridge. Because of this, they
requested Mayor Vicente Eusebio to construct a road therein. He
attested that after the construction14of the cemented access road, the
residents had water and electricity.
Augusto Paz of the City Engineer’s Office testified that,
sometime in 1992, the plaintiff constructed a road perpendicular
from E. R. Santos Street to Sto. Tomas Bukid; he was the Project
Engineer for the said undertaking. Before the construction of the
road, the lot was raw and they had to put filling materials so that
vehicles could use it. According to him, the length of the road which
they constructed was 70 meters long and 3 meters wide so that a fire
truck could pass through. He averred that there is no other road 15
through which a fire truck could pass to go to Sto. Tomas Bukid.
Manuel Tembrevilla, the Fire Marshall, averred that he had seen
the new road, that is, Damayan Street, and found that a fire truck
could pass through it. He estimated the houses in the area to be
around 300 to 400. Tembrevilla
16
also stated that Damayan Street is
the only road in the area.
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245
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The RTC held that, as gleaned from the declaration in Ordinance No.
21, there was substantial compliance with the definite and valid offer
requirement of Section 19 of R.A. No. 7160, and that the
expropriated portion is the most convenient access to the interior of
Sto. Tomas Bukid.
Dissatisfied, JILCSFI elevated the case to the CA on the
following assignment of errors:
_______________
22 Exhibit “3.”
23 Exhibit “5.”
24 Exhibit “1.”
25 Exhibit “2.”
26 Rollo, pp. 58-59.
247
In a Decision
28
dated March 13, 2001, the CA affirmed the order of
the RTC. The CA agreed with the trial court that the plaintiff
substantially complied with Section 19 of R.A. No. 7160,
particularly the requirement that a valid and definite offer must be
made to the owner. The CA declared that the letter of Engr. Reyes,
inviting Lorenzo Ching Cuanco to a conference to discuss with him
the road project and the price of the lot, was a substantial
compliance with the “valid and definite offer” requirement under
said Section 19. In addition, the CA noted that there was also
constructive notice to the defendants of the expropriation
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27 CA Rollo, p. 46.
28 Rollo, p. 13.
29 Id., at pp. 10-11.
248
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249
_______________
250
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251
_______________
40 Chan v. Maceda, Jr., G.R. No. 142591, 30 April 2003, 402 SCRA 352.
41 Heirs of Alberto Suguitan v. City of Mandaluyong, G.R. No. 135087, 14 March
2000, 328 SCRA 137.
42 City of Manila v. Chinese Community of Manila, 40 Phil. 349 (1919).
252
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SEC. 19. Eminent Domain.—A local government unit may, through its chief
executive and acting pursuant to an ordinance, exercise the power of
eminent domain for public use, or purpose, or welfare for the benefit of the
poor and the landless, upon payment of just compensation, pursuant to the
provisions of the Constitution and pertinent laws; Provided, however, That
the power of eminent domain may not be exercised unless a valid and
definite offer has been previously made to the owner, and such offer was not
accepted: Provided, further, That the local government unit may
immediately take possession of the property upon the filing of the
expropriation proceedings and upon making a deposit with the proper court
of at least fifteen percent (15%) of the fair market value of the property
_______________
43 District Board of Trustees of the Daytona Beach Community College v. Allen, 428 So.2d
704 (1983).
44 Pequonnock Yacht Club, Inc. v. City of Bridgeport, 259 Conn. 592, 790 A.2d 1178 (2002).
45 City of Birmingham v. Brown, 241 Ala. 203, 2 So.2d 305 (1941).
46 Gordon v. Conroe Independent School District, 789 S.W.2d 395 (1990).
253
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The Court declared that the following requisites for the valid
exercise of the power of eminent domain by a local government unit
must be complied with:
ARTICLE 35. Offer to Buy and Contract of Sale.—(a) The offer to buy
private property for public use or purpose shall be in writing. It shall specify
the property sought to be acquired, the reasons for its acquisition, and the
price offered.
(b) If the owner or owners accept the offer in its entirety, a contract of
sale shall be executed and payment forthwith made.
(c) If the owner or owners are willing to sell their property but at a
price higher than that offered to them, the local chief executive
shall call them to a conference for the purpose of reaching an
agreement on the selling price. The chairman of the appropriation
or finance committee of the sanggunian, or in his absence, any
member
_______________
254
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48 Wampler v. Trustees of Indiana University, 241 Ind. 449, 172 N.E.2d 67 (1961).
49 Pequonnock Yacht Club, Inc. v. City of Bridgeport, supra.
50 Casino Reinvestment Development Authority v. Katz, 334 N.J. Super 473, 759
A.2d 1247 (2000).
51 Tolentino, Arturo M., Commentaries and Jurisprudence on the Civil Code of the
Philippines, Volume IV, 1991 Edition, p. 448.
52 Black’s Law Dictionary, 5th Edition, p. 976.
255
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256
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58 Orquiola v. Court of Appeals, G.R. No. 141463, 6 August 2002, 386 SCRA 301.
59 Records, p. 57.
257
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the original of the said letter. But Togonon testified that he merely
gave the letter to a lady, whom he failed to identify. He stated that
the lady went inside the store of Lorenzo Ching Cuanco, and later
gave the letter back to him bearing the signature purportedly of one
Luz Bernarte. However, Togonon admitted, on cross-examination,
that he did not see Bernarte affixing her signature on the letter.
Togonon also declared that he did not know and had never met
Lorenzo Ching Cuanco and Bernarte:
Q And after you received this letter from that lady, what did you do
afterwards?
A I brought it with me, that letter, and then I went to Caruncho.
Q So, [M]r. Witness, you are telling this Honorable Court that this
letter intended to Mr. Lorenzo was served at Pasig Trading which
was situated at No. 18 Alkalde Jose Street on February 23, 1993?
A Yes, Ma’am.
ATTY. TAN:
That is all for the witness, Your Honor.
COURT:
_______________
60 Id., at p. 38.
61 Records, p. 41.
258
A Yes, Sir.
Q This Luz Bernarte, do you know her?
A I do not know her.
Q As a matter of fact, you did not see Mrs. Bernarte even once?
A That is correct.
Q And as a matter of fact, [M]r. Witness, you did not see Mrs. Luz
Bernarte affixing her signature on the bottom portion of this
demand letter, marked as Exh. “C-2”?
62
A Yes, Sir.
Even if the letter was, indeed, received by the co-owners, the letter
is not a valid and definite offer to purchase a specific portion of the
property for a price certain. It is merely an invitation for only one of
the co-owners, Lorenzo Ching Cuanco, to a conference to discuss
the project and the price that may be mutually acceptable to both
parties.
There is no legal and factual basis to the CA’s ruling that the
annotation of a notice of lis pendens at the dorsal portion of
petitioner’s TCT No. PT-92579 is a substantial compliance with the
requisite offer. A notice of lis pendens is a notice to the whole world
of the pendency of an action involving the
_______________
259
made a definite and valid offer to all the co-owners of the property,
aside from the letter of Engr. Reyes, the declaration in the ordinance
is not a compliance with Section 19 of R.A. No. 7160.
The respondent contends, however, that the Ching Cuancos,
impliedly admitted the allegation in its complaint that an offer to
purchase the property was made to them and that they refused to
accept the offer by their failure to specifically deny such allegation
in their answer. This contention is wrong. As gleaned from their
answer to the complaint, the Ching Cuancos specifically denied such
allegation for want of sufficient64 knowledge to form a belief as to its
correctness. Under Section 10, Rule 8 of the Rules of Court, such
form of denial, although not specific, is sufficient.
_______________
63 Los Baños Rural Bank, Inc. v. Africa, G.R. No. 143994, 11 July 2002, 384
SCRA 535.
64 Section 10, Rule 8 of the Rules of Court provides:
Section 10. Specific denial.—A defendant must specify each material allegation of fact the
truth of which he does not admit and whenever practicable, shall set forth the substance of the
matters upon which he relies to support his denial.
260
Public Necessity
. . . A historical research discloses the meaning of the term “public use” to be one of
constant growth. As society advances, its demands upon the individual increases and
each demand is a new use to which the resources of the individual may be devoted. .
. . for “whatever is beneficially employed for the community is a public use.”
The taking to be valid must be for public use. There was a time when it was felt
that a literal meaning should be attached to such a requirement. Whatever project is
undertaken must be for the public to enjoy, as in the case of streets or parks.
Otherwise, expropriation is not allowable. It is not so any more. As long as the
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purpose of the taking is public, then the power of eminent domain comes into play.
As just noted, the constitution in at least two cases, to remove any doubt, determines
what is public use. One is the expropriation of lands to be subdivided into small lots
for resale at cost to individuals. The other is the transfer, through the exercise of this
power, of utilities and other private enterprise to the government. It is accurate to
state then that at present whatever may be benefi
_______________
Where a defendant desires to deny only a part of an averment, he shall specify so much of it
as is true and material and shall deny only the remainder. Where a defendant is without
knowledge or information sufficient to form a belief as to the truth of a material averment made
in the complaint, he shall so state, and this shall have the effect of a denial. (Emphasis
supplied)
65 G.R. No. 106440, 29 January 1996, 252 SCRA 412.
261
cially employed for the general welfare satisfies the requirements of public use.
Chief Justice Fernando, writing the ponencia in J.M. Tuason & Co. vs.
Land Tenure Administration, has viewed the Constitution a dynamic
instrument and one that “is not to be construed narrowly or pedantically so
as to enable it to meet adequately whatever problems the future has in
store.” Fr. Joaquin Bernas, a noted constitutionalist himself, has aptly
observed that what, in fact, has ultimately emerged is a concept of public
use which is just as broad as “public welfare.”
Petitioners ask: But “(w)hat is the so-called unusual interest that the
expropriation of (Felix Manalo’s) birthplace become so vital as to be a
public use appropriate for the exercise of the power of eminent domain”
when only members of the Iglesia ni Cristo would benefit? This attempt to
give some religious perspective to the case deserves little consideration, for
what should be significant is the principal objective of, not the casual
consequences that might follow from, the exercise of the power. The
purpose in setting up the marker is essentially to recognize the distinctive
contribution of the late Felix Manalo to the culture of the Philippines, rather
than to commemorate his founding and leadership of the Iglesia ni Cristo.
The practical reality that greater benefit may be derived by members of the
Iglesia ni Cristo than by most others could well be true but such a peculiar
advantage still remains to be merely incidental and secondary in nature.
Indeed, that only a few would actually benefit from the expropriation of
property, does not necessarily diminish the essence and character of public
use.
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The petitioner asserts that the respondent must comply with the
requirements for the establishment of an easement of right-of-way,
more specifically, the road must be constructed at the point least
prejudicial to the servient state, and that there must be no adequate
outlet to a public highway. The petitioner asserts that the portion of
the lot sought to be expropriated is located at the middle portion of
the petitioner’s entire parcel of land, thereby splitting the lot into
two halves, and making it impossible for the petitioner to put up its
school building and worship center.
262
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70 Manotok v. National Housing Authority, G.R. No. L-55166, 21 May 1987, 150
SCRA 89.
71 See City of Manila v. Chinese Community of Manila, supra, where the Court
noted that the record contains no proof of the necessity of opening the same through
the cemetery; Manotok v. National
263
the ordinance states that the 51-square meter lot is the shortest and
most suitable access road to connect Sto. Tomas Bukid to E. R.
Santos Street. The respondent’s complaint also alleged that the said
portion of the petitioner’s lot has been surveyed as the best possible
ingress and egress. However, the respondent failed to adduce a
preponderance of evidence to prove its claims.
On this point, the trial court made the following findings:
. . . The contention of the defendants that there is an existing alley that can
serve the purpose of the expropriator is not accurate. An inspection of the
vicinity reveals that the alley being referred to by the defendants actually
passes thru Bagong Taon St. but only about one-half (1/2) of its entire
length is passable by vehicle and the other half is merely a foot-path. It
would be more inconvenient to widen the alley considering that its sides are
occupied by permanent structures and its length from the municipal road to
the area sought to be served by the expropriation is considerably longer than
the proposed access road. The area to be served by the access road is
composed of compact wooden houses and literally a slum area. As a result
of the expropriation of the 51-square meter portion of the property of the
intervenor, a 3-meter wide road open to the public is created. This portion of
the property of the intervenor is the most convenient access to the interior of
Sto. Tomas Bukid since it is not only a short cut to the interior of the Sto.
Tomas Bukid but also an easy path for vehicles entering the 72
area, not to
mention the 3-meter wide road requirement of the Fire Code.
_______________
Housing Authority, supra, where the Court observed that there is no showing as to
why the properties involved were singled out for expropriation or what necessity
impelled the particular choices or selection.
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264
——o0o——
_______________
73 Ricardo J. Francisco, Evidence, 3rd ed., 1996, p. 52, citing Benton v. State, 30
Ark. 329; Denver Omnibus & Cab Co. v. War Auction Co., 47 Colo. 446, 1076 Pac.
1073.
265
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