G.R. No. 33434 , December 16, 1930
THE MUNICIPALITY OF TARLAC, PROVINCE OF TARLAC, plaintiff-appellant, vs. TOMAS BESA, administrator of the estate of the deceased Fabiana Salak de Besa, and JOSEFA MAGLANOC, defendants-appellees.

FACTS

The Municipality of Tarlac filed an expropriation case to acquire parcels of land owned by Fabiana Salak de Besa and Josefa Maglanoc for the extension of M.H. del Pilar Street leading to the railroad station. The trial court, based on a committee report, fixed the just compensation at P3.00 per square meter for Salak’s land (3,835 sqm) and P2.25 per square meter for Maglanoc’s land (1,714 sqm). The municipality appealed, contending that the compensation should be drastically reduced to P0.06 and P0.05 per square meter, respectively, arguing that the lands were agricultural and should be valued based on their tax assessment.

ISSUE

What is the proper measure of just compensation for the lands expropriated for a public street?

RULING

The Supreme Court modified the trial court’s decision. It held that just compensation must be based on the market value of the property at the time of expropriation, considering all relevant factors, and not on the tax assessment value. The Court rejected the municipality’s argument that the lands, being declared agricultural for tax purposes, must be valued as such, noting that the lands were adaptable for residential use. It also found that a prior sale at P3.00 per square meter was not a proper basis due to special circumstances (purchase for an ice plant). The most pertinent evidence were the prices (P1.10 per square meter) the municipality itself had paid to other landowners for the right of way for the same street extension project. Considering the benefits (increased value for remaining land) and damages to the landowners, the Court fixed the just compensation at P1.10 per square meter for both properties. The appealed judgment was affirmed with this modification.