SC orders NPC to pay landowner to pay landowner on expropriated property in 2002

February 21, 2009, 6:50pm

The Supreme Court (SC) has ordered the National Power Corporation (NPC) to pay a Pampanga landowner of the full value of his property that was expropriated in 2002 for the construction of transmission lines in the lahar affected areas in the province.

In a decision written by Justice Dante O. Tinga, the SC remanded the case of Benjamin Ong Co, owner of a 575-square-meter-land in Bacolor town, to the San Fernando City regional trial court (RTC) for the appointment of a new set of commissioners who would determine the full value of the expropriated property.

"The Regional Trial Court of San Fernando Pampanga is directed to conduct, complete and resolve the further proceedings with deliberate dispatch," the SC ordered.

The trial court had declared valid the expropriation of Ong’s property and ordered NPC to pay R1.17 million with interest of six percent starting from April 15, 2002.

On appeal to the Court of Appeals (CA), the appellate court affirmed the trial court’s ruling and directed NPC to pay the full value of the property. It directed the trial court to appoint a new set of commissioners for the determination of just compensation.

In its SC case, NPC wanted a reversal of the CA decision claiming that the law allows the payment only of an easement fee equivalent to 10 per cent of the market value of the property. To comply with the law, NPC said it was willing to pay an easement fee of 10 percent of the market value of the property to be used for the installation of power transmission lines.

But the SC said the construction of transmission lines will definitely limit and deprive the owners of the normal use of the land and NPC is thus liable to pay Ong the full market value of the property and not merely a 10 per cent easement fee.

At the same time, the SC pointed out that the value of just compensation should be reckoned on the date of the taking of the property or the filing of the complaint for expropriation, whichever came first. (Rey G. Panaligan)