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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
May-2010 Jurisprudence                 

  • [G.R. No. 21924, May 12, 2010] SING JUCO, PLAINTIFF AND APPELLANT, VS. BENJAMIN CUAYCONG, AGATON TONGOY AND MARIANO RAMOS, DEFENDANTS AND APPELLEES.

  • [G.R. No. 47864 : May 12, 2010] GAUDENCIO C. HIQUIANA ET AL., PETITIONERS-APPELLEES, VS. ISMAEL L. VELOSO, ETC., RESPONDENT-APPELLANT.

  • [G.R. No. 174719 : May 05, 2010] HEIRS OF MARIO PACRES, NAMELY: VALENTINA VDA. DE PACRES, JOSERINO, ELENA, LEOVIGILDO, LELISA, AND LOURDES ALL SURNAMED PACRES, AND VEÑARANDA VDA. DE ABABA, PETITIONERS, VS. HEIRS OF CECILIA YGOÑA, NAMELY BAUDILLO YGOÑA YAP, MARIA YAP DETUYA, JOSEFINA YAP, EGYPTIANA YAP BANZON, AND VICENTE YAP[1] AND HILARIO RAMIREZ, RESPONDENTS.

  • [G.R. No. 164703 : May 04, 2010] ALLAN C. GO, DOING BUSINESS UNDER THE NAME AND STYLE "ACG EXPRESS LINER," PETITIONER, VS. MORTIMER F. CORDERO, RESPONDENT. [G.R. No. 164747] MORTIMER F. CORDERO, PETITIONER, VS. ALLAN C. GO, DOING BUSINESS UNDER THE NAME AND STYLE "ACG EXPRESS LINER," FELIPE M. LANDICHO AND VINCENT D. TECSON, RESPONDENTS.

  • [G.R. No. 175200 : May 04, 2010] NATIONAL HOUSING AUTHORITY, PETITIONER, VS. THE DEPARTMENT OF AGRARIAN REFORM ADJUDICATION BOARD AND MATEO VILLARUZ, SUBSTITUTED BY HIS HEIRS, NAMELY, SONIA VILLARUZ, MARGARITA VILLARUZ AND CARLOS H. VILLARUZ, RESPONDENTS.

  • [G.R. No. 181068 : May 04, 2010] PEOPLE'S AIR CARGO AND WAREHOUSING CO., INC, PETITIONER, VS. HONORABLE FRANCISCO G. MENDIOLA, IN HIS CAPACITY AS PRESIDING JUDGE OF THE REGIONAL TRIAL COURT OF PASAY CITY, BRANCH 115, AND CATHAY PACIFIC AIRWAYS, LTD., RESPONDENTS.

  • [G.R. No. 187049 : May 04, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. LITO MACAPANAS Y ECIJA, ACCUSED-APPELLANT.

  • [G.R. No. 191550 : May 04, 2010] HENRY "JUN" DUEÑAS, JR., PETITIONER, VS. HOUSE OF REPRESENTATIVES ELECTORAL TRIBUNAL AND ANGELITO "JETT" P. REYES, RESPONDENTS.

  • [G.R. No. 180062 : May 05, 2010] GOVERNMENT SERVICE INSURANCE SYSTEM, PETITIONER, VS. BOARD OF COMMISSIONERS (2ND DIVISION), BOARD OF COMMISSIONERS OF THE HOUSING AND LAND USE REGULATORY BOARD (HLURB) HLURB NATIONAL CAPITAL REGION FIELD OFFICE, SPOUSES MARCELINO H. DE LOS REYES AND ALMA T. DE LOS REYES, AND NEW SAN JOSE BUILDERS, INC., RESPONDENTS.

  • [G.R. No. 141508 : May 05, 2010] ROBERTO S. BENEDICTO AND TRADERS ROYAL BANK, PETITIONERS, VS. MANUEL LACSON, A & A MONTELIBANO HIJOS, INC., ROBERTO ABELLO, DOMINADOR AGRAVANTE, LUISA ALANO, ALEXANDER FARMS, INC., ANGELA ESTATE, INC., GUILLERMO AND DOROTHY ARANETA, LETECIA ARANETA, ARCEO RAMOS & SONS, INC., SPOUSES GEORGE & LOURDES ARGUELLES, ASOSACION DE HACENDEROS DE SILAY-SARAVIA, INC. (AHSSI), SALVADOR BAUTISTA, BJB AGRO-INDUSTRIAL CORP., EUGENIO BAUTISTA, LUZ RAMOS BAYOT, CYNTHIA BENEDICTO, EVA BENEDICTO, LEOPOLDO BENEDICTO, MARY JANE BENEDICTO, FLORO BONGCO, FRANCISCO BONGCO, GERARDO BONGCO, MAXCY BORROMEO, QUIRICO CAMUS, CELSO AGRO INDUSTRIAL CORP., JULIA SO DE UYCHIAT, ARTURO UYCHIAT, LUIS UYCHIAT, ELISE UYCHIAT, CIRO LOCSIN AGRICULTURAL CORPORATION, CLAMONT FARMS, INC., SAGRARIO CLAPAROLS, JAIME CLAPAROLS, CLAUDIO LOPEZ, INC., RAMON CLEMENTE, SPOUSES ROMY CONLU AND ASUCENA DIASATA, SPOUSES CORNELIO AND DOLORES CONSING, LOPE CONSING, SPOUSES RAFAEL AND JULIETA CONSOLACION, BALCONER CORDOVA, CONSOLING CORDOVA, RAFAEL COSCULLUELA, CLK AGRO DEVELOPMENT CORP., EMILIO CUAYCONG, JR., SPOUSES JOSE ROBERTO AND PATRICIO CUAYCONG, ROMELI CUAYCONG, SONYA CUAYCONG, FELIPE DALIMO-OS, UBERTA DALIMO-OS, DELARICA REALTY, DOLL AGRICULTURAL CORP., DR. ANTONIO LIZARES CO., INC., SPOUSES BONIFACIO AND URBANA DUJON, ELAR AGRO INDUSTRIAL CORP., ELCEE FARMS, INC., ESTATE OF FERNANDO ERENETA, SPOUSES BENJAMIN AND TERESITA ESTACIO, EUSEBIO INCORPORATED, FARMLAND INCORPORATED, FELICIA AGRI DEVELOPMENT CORP., FELISA AGRI CORPORATION, SPOUSES ROLANDO AND NELLY FERMIN, FERTI-ACRES AGRI-CULTURAL CORPORATION, FRANCISCO JAVIER LACSON Y HERMANOS, GAMBOA HERMANOS, INC., HONORATO GAMBOA, ESTATE OF REMEDIOS GAMBOA, ANTONIO GASTON, HEIRS OF GERARDO GASTON, ESTATE OF JOSE MA. GASTON, VICTOR MA. GASTON, JOSE MA. GASTON, JOSE MA. GOLEZ, ANTONIO GONZAGA, ERNESTO GONZAGA, JESUS GONZAGA, LUIS GONZAGA, GONZAGA REAL ESTATE ENTERPRISES, INC., ROBERT GONZAGA, GREEN SOILS AGRICULTURE, INC., ESTATE OF REMEDIOS L. VDA. DE GUINTO, WARLITO USTILO, G.V. & SONS, INC., ENCARNACION HERNAEZ, SPOUSES MIGUEL AND CECILIA MAGSAYSAY, ADELINO HERNANDEZ, SPOUSES ABELARDO AND EMILY HILADO, SPOUSES ALFREDO AND TERESITA HILADO, RAMON HILADO, SPOUSES REMO AND ELSIE HINLO, SPOUSES DANILO AND NIMFA HINLO, MA. CRISTINA HOJILLA, DIOSDADO AND DIONISIO HOSALLA, JALIMONT REALTY, INC., ALBERTO AND BENJAMIN JALANDONI, DANIEL JALANDONI, JALKK CORPORATION, LEONOR JAVELLANA, ERIBERTO JESENA, PISON JESUSA AND SISTERS, JISARA AGRI DEVELOPMENT CORPORATION, J.H. TAMPINCO AGRICULTURAL CORP., LILIA LOPEZ DE JISON, ROBERTO JISON, JOMILLA AGRO INDUSTRIAL VENTURES, INC., BENIGNA JONOTA, JOSEFINA RODRIGUEZ AGRICULTURAL CORP., JT ALUNAN AGRI. CORP., ANTONIO JUGO, SPOUSES JUANITO JUMILLA AND SANTAS DALIMO-OS, ESTATE OF CASILDA JUSTINIANI, SPOUSES ALEJANDRO AND ANTONIO KANA- AN, AGUSTIN KILAYCO, SPOUSES RODOLFO AND EMMA LACSON, EMMANUEL LACSON, ESTATE OF ERNESTO LACSON, LACSON HERMANOS, INC., ESTATE OF FELIPE LACSON, MANUEL LACSON, ESTATE OF MANUELA VDA. DE LACSON, PEDRO LACSON, RAMON LACSON, SR., TERESA LACSON, RODRIGO LACSON, LACTOR ESTATE DEVELOPMENT CORP., LIBERTINO AGUTANG, CARMEN CONSING LA'O, JOSE LA'O, JULIA LA'O, LA SALVACION AGRICULTURAL CORP., ENRIQUE LEDESMA, LEDESMA HERMANOS, INC., JESUS LEDESMA, SPOUSES JOSE MA. AND EVA LEDESMA, LEGA FARMS, CORP., ESTATE OF ANASTACIO LEGARDE, LIMJAP-ALUNAN AGRI, JESUS LIZARES, JOSE LIZARES, LUIS LIZARES, NILO LIZARES, SR. AND JR., SPOUSES JOSE AND PERLA LIZARES, ROBERTO LIZARES, ANTONIO LOCSIN, FEDERICO LOCSIN, JR., SPS. ROBERT AND JEAN MARIE WINEBURGER, ESTATE OF JOSE LOCSIN, OSCAR LOCSIN, SPOUSES JOSE MA. AND MARGARITA LOCSIN, VICENTE LOCSIN, LONOY AGRICULTURAL CORP., DOLORES LOLITA VDA. DE LOPEZ, FORTUNATO LOPEZ, NER LOPEZ, ESTATE OF NIEVES LOPEZ, POMPEYO LOPEZ, ROSENDO LOPEZ, ARTURO DE LUZURIAGA, CLAUDIO DE LUZURIAGA, CATALINA VDA. DE MAKILAN, BENITO MALAN, BASILIO MANALO, MANCY & SONS, INC., MANILAC AGRO COMMERCIAL CORP., SPOUSES MANUEL AND LUISA MANOSA, JULIO AND GENEVIEVE MAPA, MAPLE AGRI-CORP., INC., MARLAND AGRICULTURAL CORP., MARVIA & CO., INC., ANTONIO MENDOZA, BERNARDO MENDOZA, JR., SPOUSES BERNARDO AND ROSARIO MENDOZA, MALAURIE AGRICULTURAL DEVELOPMENT CORP., HEIRS OF MANUEL AND CEFERINO MONFORT, ESTATE OF MANUEL MONFORT, JR., SPOUSES EMILIO AND LINDA MONTALVO, MONTILLA SISTERS AGRICULTURAL CORP., ANTONIO MONTINOLA, NIEVES AGRO-INDUSTRIAL DEVELOPMENT CORP., MAMERTO DE OCA, O. LEDESMA & CO., INC., HEIRS OF MERCEDES PABIANA, TEODULO PABIANA, ESTATE OF ROSARIO PALENZUELA, ESTATE OF ENCARNACION PANLILIO, JOSE PASCUAL, JOHNNY DE LA PENA, ANICETA PERDIGUEROS, AQUILES PERDIGUEROS, LUISA PEREZ, CRISTINA PERTIERRA, PHISON FARMS, INC., ESTATE OF JOSEFINA PICCIO, PISON-LOCSIN KAUTURAN, NICOLAS POLINARIO, PUYAS AGRO, INC., ESTATE OF LEONOR DE LA RAMA, LUIS RAMA, RAMON DE LA RAMA AGRO DEVELOPMENT CORP., REMO RAMOS, BENJAMIN RAMOS, MARIANO RAMOS, SPOUSES ENRIQUE AND TERESITA REGALADO, SPS. JOSE MA. AND AMELIA REGALADO, MANUEL REGALADO, AQUILINO REONIR, RHE & SONS AGRO INDUSTRIAL CORP., ROAM AGRICULTURAL CORP., AMANDO ROBILLO, ROMALUX AGRI FARMS, INC., LETECIA DEL ROSARIO, MANUEL DEL ROSARIO, EULALIA ROSELLO, ROSENDO H. DE LA RAMA & CO., BIBIANO SABINO, SPOUSES REINHARDT AND CORAZON SAGEMULLER, PEDRO SAJO, SPOUSES AQUILES AND MA. CRISTINA SAJO, SAN ANTONIO FARMS, JOSE MA. SANTOS, MARCELINO SAUSI, STA. CLARA ESTATE, INC., SPOUSES FRANCISCO AND JULITA SERRIOS, ANTONIO SIAN, SIASON- DITCHING AGRO INDUSTRIAL CORP., SPOUSES LUCRECIO SORIANO AND LIBERATA DALIMO- OS, IMELDA TAMPINCO, T. GENSOLI & CO., TINIHABAN AGRICULTURAL CORP., SPOUSES LINO AND THELMA TOLEDO, FRANCISCO TORIANO, GODOFREDO TORIANO, LUCRECIO TORIANO, MOISES TORIANO, TOTA, INC., DEMOCRITO TRECHO, JESUSA TRECHO, PABIO TRECHO, RUFINO TRECHO, ESTATE OF FLORENTINO TREYES, ESTATE OF VICTOR TREYES, FERNANDO TREYES, LILIA TREYES, SOCORRO TUVILLA, FRANCIS TUVILLA, SPS. JOE MARIE AND VICTORIA TUVILLA, JOSE URBANOZO, JR., ESTATE OF ROSARIO VALENCIA, EDUARDO DE VENECIA, VICTORIAS MILLING, CO., INC., SPOUSES EDSEL AND RITA VILLACIN, JOSEFA VILLAERA, VILLALAYA AGRO DEVELOPMENT, SERAFIN VILLANUEVA, IRVING VILLASOR, DOMINICIANO VINARTA, ROSENDO AND CANDIDO VINARTA, BERNARD YBIERNAS, ESTRELLA YBIERNAS, SPOUSES CARLOS AND EDITH YLANAN, BENITO YOUNG, SPOUSES RENATO AND VICTORIA YULO, AND JESUS YUSAY, RESPONDENTS.

  • [G.R. No. 143591 : May 05, 2010] TEODORO C. BORLONGAN, JR., CORAZON M. BEJASA, ARTURO E.MANUEL, JR., ERIC L. LEE, P. SIERVO H. DIZON, BENJAMIN DE LEON, DELFIN C. GONZALES, JR., AND BEN YU LIM, JR., PETITIONERS, VS. MAGDALENO M. PEÑA AND HON. MANUEL Q. LIMSIACO, JR., AS JUDGE DESIGNATE OF THE MUNICIPAL TRIAL COURT IN CITIES, BAGO CITY, RESPONDENTS.

  • [G.R. No. 163267 : May 05, 2010] TEOFILO EVANGELISTA, PETITIONER, VS. THE PEOPLE OF THE PHILIPPINES, RESPONDENT.

  • [G.R. No. 172708 : May 05, 2010] PEOPLE OF THE PHILIPPINES, APPELLEE, VS. JOSEPH AMPER Y REPASO, APPELLANT.

  • [G.R. No. 178087 : May 05, 2010] COMMISSIONER OF INTERNAL REVENUE, PETITIONER, VS. KUDOS METAL CORPORATION, RESPONDENT.

  • [G.R. No. 184800 : May 05, 2010] WONINA M. BONIFACIO, JOCELYN UPANO, VICENTE ORTUOSTE AND JOVENCIO PERECHE, SR., PETITIONERS,VS. REGIONAL TRIAL COURT OF MAKATI, BRANCH 149, AND JESSIE JOHN P. GIMENEZ, RESPONDENTS.

  • [G.R. No. 181847 : May 05, 2010] PUBLIC ESTATES AUTHORITY NOW PHILIPPINE RECLAMATION AUTHORITY, PETITIONER,VS. ESTATE OF JESUS S. YUJUICO, REPRESENTED BY BENEDICTO V. YUJUICO AND EDILBERTO V. YUJUICO; AND AUGUSTO Y. CARPIO, RESPONDENTS.

  • [G.R. No. 187556 : May 05, 2010] PLANTERS DEVELOPMENT BANK, PETITIONER, VS. JAMES NG AND ANTHONY NG, RESPONDENTS.

  • [G.R. No. 187200 : May 05, 2010] GOLDEN ACE BUILDERS AND ARNOLD U. AZUL, PETITIONERS,VS. JOSE A. TALDE, RESPONDENT.

  • [G.R. No. 148892 : May 06, 2010] LAND BANK OF THE PHILIPPINES, PETITIONER, VS. LUZ L. RODRIGUEZ, RESPONDENT.

  • [A.M. No. 09-9-163-MTC : May 06, 2010] RE: CASES SUBMITTED FOR DECISION BEFORE HON. TERESITO A. ANDOY, FORMER JUDGE, MUNICIPAL TRIAL COURT, CAINTA, RIZAL.

  • [G.R. No. 170515 : May 06, 2010] MARMOSY TRADING, INC. AND VICTOR MORALES, PETITIONERS, VS. COURT OF APPEALS, NATIONAL LABOR RELATIONS COMMISSION, HON. LABOR ARBITER ELIAS H. SALINAS AND JOSELITO HUBILLA, RESPONDENTS.

  • [G.R. Nos. 180772 and 180776 : May 06, 2010] LAND BANK OF THE PHILIPPINES [LBP], PETITIONER, VS. DOMINGO AND MAMERTO SORIANO, RESPONDENTS.

  • [G.R. No. 179038 : May 06, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. JOSEPH SERRANO AND ANTHONY SERRANO,ACCUSED-APPELLANTS.

  • [G.R. No. 186134 : May 06, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. JOEL ROA Y VILLALUZ, ACCUSED-APPELLANT.

  • [G.R. No. 189402 : May 06, 2010] LIGAYA SANTOS AND ROBERT BUNDA, PETITIONERS, VS. DOMINGO I. ORDA, JR., RESPONDENT.

  • [G.R. No. 189602 : May 06, 2010] HEIRS OF ALFREDO ZABALA, REPRESENTED BY MENEGILDA ZABALA, ROLANDO ZABALA, MANUEL ZABALA, MARILYN ZABALA, AND ADELINA ZABALA, PETITIONERS, VS. HON. COURT OF APPEALS, VICENTE T. MANUEL AND/OR HEIRS OF VICENTE T. MANUEL, RESPONDENTS.

  • [G.R. No. 191771 : May 06, 2010] LIBERAL PARTY, REPRESENTED BY ITS PRESIDENT MANUEL A. ROXAS II AND SECRETARY GENERAL JOSEPH EMILIO A. ABAYA, PETITIONER, VS. COMMISSION ON ELECTIONS, NACIONALISTA PARTY, REPRESENTED BY ITS PRESIDENT MANUEL B. VILLAR AND NATIONALIST PEOPLE'S COALITION, ALLEGEDLY REPRESENTED BY ITS CHAIRMAN FAUSTINO S. DY, JR., RESPONDENTS.

  • [G.R. No. 191846 : May 06, 2010] TEOFISTO GUINGONA, JR., BISHOP LEO A. SORIANO, FE MARIA ARRIOLA, ISAGANI R. SERRANO, AND ENGR. RODOLFO LOZADA, CORONA, VS. COMMISSION ON ELECTIONS, RESPONDENT.

  • [G.R. No. 160718 : May 12, 2010] ANUNCIO C. BUSTILLO, EMILIO SUMILHIG, JR., AND AGUSTIN BILLEDO, JR., PETITIONERS, VS. PEOPLE OF THE PHILIPPINES, RESPONDENT.

  • [G.R. No. 170956 : May 12, 2010] FELISA R. FERRER, PETITIONER, DOMINGO CARGANILLO, SERGIO CARGANILLO, SOLEDAD AGUSTIN AND MARCELINA SOLIS, RESPONDENTS.

  • [G.R. No. 180050 : May 12, 2010] RODOLFO G. NAVARRO, VICTOR F. BERNAL, AND RENE O. MEDINA, PETITIONERS, VS. EXECUTIVE SECRETARY EDUARDO ERMITA, REPRESENTING THE PRESIDENT OF THE PHILIPPINES; SENATE OF THE PHILIPPINES, REPRESENTED BY THE SENATE PRESIDENT; HOUSE OF REPRESENTATIVES, REPRESENTED BY THE HOUSE SPEAKER; GOVERNOR ROBERT ACE S. BARBERS, REPRESENTING THE MOTHER PROVINCE OF SURIGAO DEL NORTE; GOVERNOR GERALDINE ECLEO VILLAROMAN, REPRESENTING THE NEW PROVINCE OF DINAGAT ISLANDS, RESPONDENTS.

  • [G.R. No. 178202 : May 14, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. NORMAN SITCO AND RAYMUNDO BAGTAS (DECEASED), ACCUSED-APPELLANTS.

  •  





     
     

    [G.R. Nos. 180772 and 180776 : May 06, 2010]   LAND BANK OF THE PHILIPPINES [LBP], PETITIONER, VS. DOMINGO AND MAMERTO SORIANO, RESPONDENTS.

     
    SECOND DIVISION

    [G.R. Nos. 180772 and 180776 : May 06, 2010]

    LAND BANK OF THE PHILIPPINES [LBP], PETITIONER, VS. DOMINGO AND MAMERTO SORIANO, RESPONDENTS.

    D E C I S I O N


    PEREZ, J.:

    For consideration is a Petition for Review on Certiorari under Rule 45 of the Rules of Court filed by the Land Bank of the Philippines (LBP) seeking the annulment of the Decision[1] dated 9 October 2007 and the Resolution[2] dated 12 December 2007 issued by the Court of Appeals in CA-G.R. SP Nos. 89005 and 89288.

    The controversy is hinged on the determination of just compensation for land covered by the Comprehensive Agrarian Reform Program (CARP).

    First, the antecedents.

    Domingo and Mamerto Soriano (respondents) are the registered owners of several parcels of rice land situated in Oas, Albay. Out of the 18.9163 hectares of land[3] owned by the respondents, 18.2820 hectares were placed under the Operations Land Transfer and the CARP pursuant to Presidential Decree No. 27[4] and Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform Law.[5]

    The LBP[6] pegged the value of 18.0491 hectares of land at P482,363.95[7] (P133,751.65 as land value plus P348,612.30 incremental interest), while the remaining 0.2329 hectare was computed at P8,238.94.[8] Not satisfied with the valuation, respondents, on 23 November 2000, instituted a Complaint[9] for judicial determination of just compensation with the Regional Trial Court of Legazpi City,[10] sitting as a Special Agrarian Court (SAC). Respondents alleged that they are entitled to an amount of not less than P4,500,000.00 as just compensation.[11]

    On 21 February 2005, the SAC rendered a judgment, ordering LBP to pay the respondents P894,584.94. The dispositive portion reads:

    ACCORDINGLY, the just compensation of the 18.0491 hectares of irrigated riceland is P133,751.79, plus increment of 6% per annum computed annually beginning October 21, 1972, until the value is fully paid, and of the 0.2329 hectare of rain fed riceland is P8,238.94 plus 12% interest per annum, beginning August 17, 1998, until the value is fully paid or a total of P894,584.94 as of this date. Land Bank is ordered to pay the landowners Domingo Soriano and Mamerto Soriano said amount/land value in accordance with law.[12]

    The SAC applied the formula prescribed under Executive Order No. 228 in determining the valuation of the property, i.e., Land value = Average Gross Production x 2.5 x Government Support Price. It likewise granted compounded interest pursuant to Department of Agrarian Reform (DAR) Administrative Order No. 13, series of 1994, as amended by DAR Administrative Order No. 2, series of 2004.

    Both parties disagreed with the trial court's valuation, prompting them to file their respective appeals with the Court of Appeals. The appellate court, however, affirmed the judgment of the trial court. It also upheld the award of compounded interest, thus:

    In the case at bar, the subject lands were taken under PD 27 and were covered by Operation Land Transfer, making the aforecited Administrative Order applicable. Hence, the Petitioners SORIANOs are entitled to the 6% compounded interest per annum from the date of taking on 21 October 1972 until full payment of the just compensation.[13]

    LBP moved for reconsideration but it was denied by the Court of Appeals on 12 December 2007.

    LBP filed the instant petition seeking to nullify the appellate court's decision and resolution, particularly the amount awarded to respondents as just compensation.

    Basic is the tenet that since respondents were deprived of their land, they are entitled to just compensation. Under Executive Order No. 228, the formula used to compute the land value is:

    Land value = Average Gross Production (AGP) x 2.5
    x Government Support Price (GSP)

    With the passage of Republic Act (R.A.) No. 6657 or the CARL in 1988, new guidelines were set for the determination of just compensation. In particular, Section 17 provides, thus:

    Determination of Just Compensation. — In determining just compensation, the cost of acquisition of the land, the current value of like properties, its nature, actual use and income, the sworn valuation by the owner, the tax declarations, and the assessment made by government assessors shall be considered. The social and economic benefits contributed by the farmers and the farmworkers and by the Government to the property as well as the non-payment of taxes or loans secured from any government financing institution on the said land shall be considered as additional factors to determine its valuation.

    Consequently, two divergent formulae arose which prompted the Court to come up with a categorical pronouncement that, if just compensation is not settled prior to the passage of Republic Act No. 6657, it should be computed in accordance with the said law, although the property was acquired under Presidential Decree No. 27. The fixing of just compensation should therefore be based on the parameters set out in Republic Act No. 6657, with Presidential Decree No. 27 and Executive Order No. 228 having only suppletory effect.[14]

    In the instant case, while the subject lands were acquired under Presidential Decree No. 27, the complaint for just compensation was only lodged before the court on 23 November 2000 or long after the passage of Republic Act No. 6657 in 1988. Therefore, Section 17 of Republic Act No. 6657 should be the principal basis of the computation for just compensation. As a matter of fact, the factors enumerated therein had already been translated into a basic formula by the DAR pursuant to its rule-making power under Section 49 of Republic Act No. 6657. The formula outlined in DAR Administrative Order No. 5, series of 1998 should be applied in computing just compensation, thus:

    LV = (CNI x 0.6) + (CS x 0.3) + (MV x 0.1)

    Where: LV = Land Value
    CNI = Capitalized Net Income
    CS = Comparable Sales
    MV = Market Value per Tax Declaration[15]

    As much as this Court would like to determine the proper valuation based on the formula cited above, the records of this case are bereft of adequate data. To write finis to this case, we uphold the amount derived from the old formula. However, since the application of the new formula is a matter of law and thus, should be made applicable, the parties are not precluded from asking for any additional amount as may be warranted by the new formula.

    On to the more pertinent issue. LBP assails the imposition of 6% interest rate on the 18.0491 hectares of lot valued at P133,751.65. It avers that the incremental interest due to the respondents should be computed from the date of taking on 21 October 1972, not up to full payment of just compensation but up to the time LBP approved the payment of their just compensation claim and a corresponding deposit of the compensation proceeds was made by the bank. LBP relies on the provisions of DAR Administrative Order No. 13, series of 1994, as amended, which substantially provides that "the grant of 6% yearly interest compounded annually shall be reckoned from 21 October 1972 up to the time of actual payment but not later than December 2006." LBP stresses that under said Administrative Order, time of actual payment is defined as the date when LBP approves the payment of the land transfer claim and deposits the compensation proceeds in the name of the landowner in cash and in bonds. In sum, LBP posits that the appellate court departed from the express provision of DAR Administrative Order No. 13, as amended, by imposing an interest to be reckoned from the time of taking up to the actual payment of just compensation.[16]

    Respondents counter that the award of interest until full payment of just compensation was correctly adhered to by the lower courts in line with the Court's ruling in Land Bank of the Philippines v. Imperial,[17] which found it inequitable to determine just compensation based solely on the formula provided by DAR Administrative Order No. 13, as amended. According to respondents, the award of interest until full payment of just compensation is to ensure prompt payment. Moreover, respondents claim that the date LBP approves the payment of the land transfer claim and deposits the proceeds in the name of the landowner is not tantamount to actual payment because on said date, the release of the amount is conditioned on certain requirements.[18]

    This issue has already been raised before the Court of Appeals by LBP, first, in its petition for review and, second, in its motion for reconsideration. The Court of Appeals, however, neglected to give a definitive ruling on the issue of computation of interest and merely echoed the trial court's ruling that respondents are entitled to the 6% compounded interest per annum from the date of taking on 21 October 1972 until full payment of just compensation.

    At any rate, we cannot subscribe to the arguments of LBP.

    Section 4, Article XIII of the 1987 Constitution, mandates that the redistribution of agricultural lands shall be subject to the payment of just compensation. The deliberations of the 1986 Constitutional Commission on this subject reveal that just compensation should not do violence to the Bill of Rights, but should also not make an insurmountable obstacle to a successful agrarian reform program. Hence, the landowner's right to just compensation should be balanced with agrarian reform.[19]

    Administrative Order No. 13, as amended, was issued to compensate those who were effectively deprived of their lands by expropriation. LBP relies on said Administrative Order to justify its own computation of interest. A literal reading of this Administrative Order seems to favor LBP's interpretation with respect to the period covered by the interest rate. We quote the relevant portion of the Administrative Order:

    The grant of six percent (6%) yearly interest compounded annually shall be reckoned as follows:

    3.1 Tenanted as of 21 October 1972 and covered under OLT

    - From 21 October 1972 up to the time of actual payment but not later than December 2006

    3.2 Tenanted after 21 October 1972 and covered under OLT

    -From the date when the land was actually tenanted (by virtue of Regional Order of Placement issued prior to August 18, 1987) up to the time of actual payment but not later than December 2006

    Time of actual payment - is the date when the Land Bank of the Philippines (LBP) approves payment of the land transfer claim and deposits the compensation proceeds in the name of the landowner (LO) in cash and in bonds. The release of payment can be claimed by the landowner upon compliance with the documentary requirements for release of payment.[20]

    However, as embodied in its Prefatory Statement, the intent of the Administrative Order was precisely to address a situation "where a number of landholdings remain unpaid in view of the non-acceptance by the landowners of the compensation due to low valuation. Had the landowner been paid from the time of taking his land and the money deposited in a bank, the money would have earned the same interest rate compounded annually as authorized under banking laws, rules and regulations."[21] The concept of just compensation embraces not only the correct determination of the amount to be paid to the owners of the land, but also payment within a reasonable time from its taking. Without prompt payment, compensation cannot be considered "just" inasmuch as the property owner is made to suffer the consequences of being immediately deprived of his land while being made to wait for a decade or more before actually receiving the amount necessary to cope with his loss.[22] To condition the payment upon LBP's approval and its release upon compliance with some documentary requirements would render nugatory the very essence of "prompt payment." Therefore, to expedite the payment of just compensation, it is logical to conclude that the 6% interest rate be imposed from the time of taking up to the time of full payment of just compensation.

    Certainly, the trend of recent rulings bolsters this interpretation. In Forform Development Corporation v. Philippine National Railways,[23] the Philippine National Railways was directed to file the appropriate expropriation action over the land in question, so that just compensation due to its owner may be determined in accordance with the Rules of Court, with interest at the legal rate of 6% per annum from the time of taking until full payment is made. The Court in Manila International Airport Authority v. Rodriguez[24] ordered just compensation for the portion of respondent's lot actually occupied by the runway, with interest thereon at the legal rate of 6% per annum from the time of taking until full payment is made.

    LBP also proffers that just compensation pertaining to the 0.2329 hectare valued at P8,238.94 with no pronouncement as to interest per the Department of Agrarian Reform Adjudication Board (DARAB) decision has already attained finality, hence, it cannot be modified.[25]

    Anent the DARAB decision relating to the 0.2329 hectare, suffice it to say that the determination of just compensation is a judicial function.[26] The DAR's land valuation is only preliminary and is not, by any means, final and conclusive upon the landowner or any other interested party. In the exercise of their functions, the courts still have the final say on what the amount of just compensation will be.[27] Hence, we sustain the computation reached by the trial court.

    WHEREFORE, the petition is DENIED. The Decision dated 9 October 2007 and the Resolution dated 12 December 2007 of the Court of Appeals in CA-G.R. SP Nos. 89005 and 89288 are hereby AFFIRMED without prejudice to the right of the parties for additional claims that may arise in the application of DAR Administrative Order No. 5, series of 1998 in relation to R.A. No. 6657.

    SO ORDERED.

    Carpio, (Chairperson), Corona*, Del Castillo and Abad, JJ., concur.

    Endnotes:


    * Per Resolution dated 25 June 2008, Associate Justice Renato C. Corona is designated an additional member in place of Associate Justice Arturo D. Brion, who was then the Director of Land Bank of the Philippines.

    [1] Penned by Associate Justice Myrna Dimaranan Vidal, and concurred in by Associate Justices Jose L. Sabio, Jr. and Noel G. Tijam.

    [2] Rollo, pp. 86-87.

    [3] As stipulated in the pre-trial orders dated 14 January and 16 March 2004. CA rollo, pp. 122-127.

    [4] Entitled "Decreeing The Emancipation Of Tenants From The Bondage Of The Soil Transferring To Them The Ownership Of The Land They Till And Providing The Instruments And Mechanism Therefor."

    [5] Rollo, p. 44.

    [6] Land Bank of the Philippines is a government banking institution designated under Section 64 of Republic Act No. 6654 as the financial intermediary of the agrarian reform program of the government. (See Land Bank of the Philippines v. De Leon, G.R. No. 164025, 8 May 2009). Under Section 1 ofExecutive Order No. 405, series of 1990, the Land Bank of the Philippines is charged with the initial responsibility of determining the value of lands placed under land reform and the just compensation to be paid for their taking.(See Land Bank of the Philippines v. Luciano, G.R. No. 165428, 25 November 2009).

    [7] Rollo, p. 43.

    [8] Per Department of Agrarian Reform Adjudication Board Decision dated 7 May 2000. Rollo, p. 22.

    [9] Id. at 194-198.

    [10] Presided by Judge Henry B. Basilla.

    [11] Rollo, p. 197.

    [12] Id. at 173.

    [13] Id. at 30.

    [14] Land Bank of the Philippines v. Heirs of Eleuterio Cruz, G.R. No. 175175, 29 September 2008, 567 SCRA 31, 37-38; Land Bank of the Philippines v. Heirs of Angel T. Domingo, G.R. No. 168533, 4 February 2008, 543 SCRA 627, 638-639.

    [15] Land Bank of the Philippines v. Celada, G.R. No. 164876, 23 January 2006, 479 SCRA 495, 508.

    [16] Rollo, pp. 48-51.

    [17] G.R. No. 157753, 12 February 2007, 515 SCRA 449.

    [18] Rollo, p. 372.

    [19] Land Bank of the Philippines v. Dumlao, G.R. No. 167809, 27 November 2008, 572 SCRA 108, 124.

    [20] Rollo, p. 358.

    [21] Id. at 359.

    [22] Land Bank of the Philippines v. Orilla, G.R. No. 157206, 27 June 2008, 556 SCRA 103, 117.

    [23] G.R. No. 124795, 10 December 2008, 573 SCRA 350.

    [24] G.R. No. 161836, 28 February 2006, 483 SCRA 619.

    [25] Rollo, p. 54.

    [26] Land Bank of the Philippines v. J.L. Jocson, G.R. No. 180803, 23 October 2009; Land Bank of the Philippines v. Kumassie Plantation Company, Inc., G.R. Nos. 177404 and 178097, 25 June 2009; National Power Corporation v. Bongbong, G.R. No. 164079, 3 April 2007, 520 SCRA 290, 307; Land Bank of the Philippines v. Natividad, G.R. No. 127198, 16 May 2005, 458 SCRA 441, 450-451.

    [27] Land Bank of the Philippines v. Dumlao, supra note 19 at 128.

    [G.R. Nos. 180772 and 180776 : May 06, 2010]   LAND BANK OF THE PHILIPPINES [LBP], PETITIONER, VS. DOMINGO AND MAMERTO SORIANO, RESPONDENTS.


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