Batangas City lot owners win P6-B lawsuit vs PPA

The Supreme Court has ordered the state-run Philippine Ports Authority to compensate 231 residents of Batangas City with P6 billion representing payment for some 185 lots it acquired in 2001 for the construction of Phase 2 of the Batangas Port Zone. In a 24-page decision penned by Associate Justice Angelina Sandoval-Gutierrez, the high court affirmed the rulings of the Court of Appeals and Batangas regional trial court branch 64, which set the expropriation price of the subject lots at P5,500 per square meter. The amount was based on the zonal valuation of real property in Batangas City made by the Bureau of Internal Revenue (BIR) and past sales prices. The high tribunal junked the contention of PPA that the just compensation for the lot owners should be lower than P4,800 per square meter because the subject lots, consisting of 1.3 million square meters, were agricultural lands and are not being used for commercial or industrial purposes. The Court likewise lifted the temporary restraining order it issued on August 7, 2006 enjoining the lower court from implementing its order compelling PPA to pay just compensation to the lot owners. "The trial court is directed to implement its final and executory orders requiring the PPA to pay the respondents the amount of P5,500 per square meter with 12 percent annual interest from the date of expropriation on September 11, 2001 until fully paid," the Supreme Court ruled. Concurring in the decision were Chief Justice Reynato Puno and Associate Justices Renato Corona, Adolfo Azcuna and Cancio Garcia. The high court agreed with the CA's ruling that the PPA's petition for certiorari assailing the trial court's orders has no merit since it was filed beyond the 60-day period. The Supreme Court also sustained the trial court's decision dated November 24, 2004 decision granting the motion of the respondents for immediate payment of deficiency in the zonal valuation from P400 per square meter to P4,250 per square meter. "It is understood that the zonal value per square meter of expropriated lots, classified as industrial, is increased from P400 to P4,250 per square meter. The initial deposit paid by petitioner to respondents shall be deducted from the total amount of just compensation payable to them," the Supreme Court said. The respondents claimed that the zonal value of P400 per square meter of their expropriated lots paid to them was made on the basis of petitioner’s classification of their lots as agricultural. They further said their property is classified as industrial with zonal valuation of not less than P4,250 per square meter based on the BIR’s 1997 zonal valuation of real property in Batangas City; President Aquino’s Executive Orders No. 385 and 431 declaring the subject lots as industrial port zone; and the Comprehensive Land Use and Zoning Plan prepared by the Batangas City Planning and Development Office on May 22, 1993 reclassifying the lots as industrial port zone. Records showed that on October 14, 1999, the PPA filed with the Batangas RTC a complaint for expropriation of 185 lots against the 231 defendants. The PPA alleged in its complaint that there is a necessity to expropriate the lots for the development of Batangas Port Zone Phase II pursuant to the orders issued by then President Aquino. Petitioner claimed that the Land Acquisition Committee for the said project recommended that the market value of the lots be fixed at P336.83 per square meter. The PPA immediately asked the trial court to issue an order placing in its possession the subject properties upon its deposit of an amount equivalent to their assessed value for purposes of taxation. The petitioner also asked the trial court to issue an order fixing the just compensation for the lots. Acting on the PPA’s motion, the trial court issued a writ of possession in favor of PPA upon its payment of P400.00 per square meter. The PPA took over the said properties on September 11, 2001. In determining the just compensation, the trial court grouped the lot owners into three sets, lawyer Reynaldo Dimayacyac was assigned to represent the first group; lawyers Cesar Cruz and Gregorio Ortega for the second group; and lawyer Emmanuel Agustin for the third groups. In their answer to the complaint, the groups prayed that the just compensation should be fixed at P8,000 per square meter. Afterward, the lower court's appointed commissioners submitted a report recommending the amount of P4,800 per square meter as just compensation. On July 10, 2000, the RTC ordered petitioner to pay the group of lawyer Dimayacyac the amount of P5,500 per square meter as just compensation. On August 15, 2000, the trial court issued an order fixing the fair market value of the expropriated lots at P5,500 per square meter. Subsequently, the trial court issued several orders directing PPA to pay respondents just compensation computed at P5,500 per square meter. In its order dated August 17, 2000, the court directed the PPA to pay the respondents represented by lawyer Agustin the total amount of P854,293 million; on August 18, 2000 the trial court ordered agency to pay the group of lawyer Ortega the total amount of P3.38 billion; on August 23, 2000, the trial court ordered the PPA to P1.52 billion to the group of lawyer Agustin and P556.88 million for Pastor Realty Corporation. - GMANews.TV