G.R. No. 252946 – 10 February 2021 – Political Law – Constitutional Law – General Principles – Powers of the State – Eminent Domain – Expropriation Proceedings; Procedural Requirement
A complaint for expropriation was filed by the City Government of Mandaluyong against the property of Pagong Realty. It was alleged that the property shall be used for socialized housing. In Compliance with Sec. 19, of the Local Government Code, Mandaluyong deposited Php3,000,000.00, representing 15% of the fair market value based on the current tax declaration of the property, with the trial court. The trial court denied the complaint due to insufficiency of the complaint. The Court of Appeals affirmed the denial.
ISSUE: Whether or not the complaint for expropriation must prosper.
HELD: No. Mandaluyong failed to comply with several requirements. Under R.A. No. 7279 or the Urban Development and Housing Act of 1992, the following is the order of priority as to which land may be used for socialized housing:
(a) Those owned by the Government or any of its subdivisions, instrumentalities, or agencies, including government-owned or controlled corporations and their subsidiaries;
(b) Alienable lands of the public domain;
(c) Unregistered or abandoned and idle lands;
(d) Those within the declared Areas or Priority Development, Zonal Improvement Program sites, and Slum Improvement and Resettlement Program sites which have not yet been acquired;
(e) Bagong Lipunan Improvement of Sites and Services or BLISS sites which have not yet been acquired; and
(f) Privately-owned lands.
Private land such as the land owned by Pagong Realty is the last in the order of priority. Though Mandaluyong alleged in its complaint that (a), (b), and (e) above are unavailable, it made no justification for such claim and no justification why it skipped (c) and (d).
Further, Mandaluyong’s computation of the 15% deposit was based not on the current tax declaration but on the 1993 tax declaration.
Also, it appears that Pagong Realty was willing to sell the property but only if Mandaluyong offers a higher purchase price. Records show that Mandaluyong offered to buy the property at Php3,500.00 per square meter but such amount is lower than the current zonal value. In instances like this, Art. 35 of the Local Government Code requires that the local chief executive must call for a conference with the landowner for the purpose of negotiating the purchase price. This is a mandatory requirement.
The provisions in RA 7279 and Art. 35, of the LGC are mandatory requirements which were meant to protect helpless owners of private property against what may be a tyrannical violation of due process when their property is forcibly taken from them allegedly for public use.
