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Case Digest: Heirs of Feliciano, Jr. vs. Land Bank of the Philippines | G.R. No. 215290 | Jan 11, 2017

Heirs of Feliciano, Jr. vs. Land Bank of the Philippines 




G.R. No. 215290 | Jan 11, 2017


PERLAS-BERNABE, J


FACTS:

The case involves a petition brought forth by the heirs of Pablo Feliciano, Jr. to ascertain the correct just compensation for their expropriated agricultural land—a 300-hectare parcel located in Camarines Sur. Initially, in 1972, a portion of the land was categorized as un-irrigated riceland and consequently included under the Comprehensive Agrarian Reform Program (CARP). The Department of Agrarian Reform (DAR) appraised the land at P1,301,498.09, which the Feliciano heirs contested. Following administrative proceedings, the Office of the Provincial Agrarian Reform Adjudicator evaluated the land's value at P4,641,080.465 or an average of P34,302.375 per hectare. The Land Bank of the Philippines (LBP) then filed a petition for just compensation determination before the Regional Trial Court (RTC), initially dismissed but eventually reinstated. The Feliciano heirs subsequently transferred their rights to Victoria Alda Reyes Espiritu. The RTC directed the LBP to reevaluate the land, ultimately settling on a just compensation of P7,725,904.05. Additionally, the RTC ordered the LBP to pay Espiritu the aforementioned amount, deducting sums previously disbursed to the Feliciano heirs, and to render 12% annual interest on any outstanding balance of the just compensation. Both parties sought reconsideration, to no avail. The Court of Appeals (CA) upheld the just compensation at P7,725,904.05, with legal interest fixed at 12% per annum from July 1, 2009, until the decision's finality. The CA reasoned that DAR Administrative Orders were no longer relevant and determined the land's value based on July 1, 2009, values. While the CA initially ruled for continuous 12% interest, it later modified its decision, asserting that the LBP is only accountable for 12% annual interest from July 1, 2009, until the payment date.

ISSUE:

Whether the CA's determination of just compensation is correct.

RULING:

The Court remanded the case back to the Regional Trial Court (RTC) with specific directives for the determination of just compensation, adhering to the guidelines outlined in the decision. The RTC is instructed to calculate the just compensation based on the value of the property at the time of its expropriation, taking into account the factors enumerated in Section 17 of Republic Act No. 6657, which governs the Comprehensive Agrarian Reform Program (CARP). Additionally, the RTC must provide clear reasoning for any deviations from the prescribed factors and formula in its valuation process. Furthermore, the Court clarified the applicable interest rate to be applied in this case.

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