GR 150936; (August, 2004) (Digest)
G.R. No. 150936 , August 18, 2004
NATIONAL POWER CORPORATION, petitioner, vs. MANUBAY AGRO-INDUSTRIAL DEVELOPMENT CORPORATION, respondent.
FACTS
The National Power Corporation (NPC) initiated expropriation proceedings to acquire an easement of right-of-way over a portion of respondent Manubay Agro-Industrial Development Corporation’s land for its Leyte-Luzon HVDC Power Transmission Project. NPC sought only an easement, contending that compensation should be limited to an easement fee not exceeding ten percent of the land’s market value, as prescribed by Section 3-A of its charter, Republic Act No. 6395 , as amended. The Regional Trial Court (RTC), however, fixed just compensation at P550 per square meter, ordering NPC to pay the full market value for the 22,961.71-square-meter area affected. The RTC reasoned that the installation of high-voltage transmission lines imposed a permanent limitation on the land’s use, effectively constituting a “taking” equivalent to an expropriation of the land itself. The Court of Appeals affirmed the RTC’s decision.
ISSUE
Whether just compensation for the easement of right-of-way should be a simple easement fee under NPC’s charter or the full market value of the property affected.
RULING
The Supreme Court denied NPC’s petition and affirmed the lower courts’ rulings. The Court held that the acquisition of an easement for high-tension transmission lines is not a mere limitation on the property but a permanent imposition that deprives the owner of its normal use. This constitutes a “taking” under the power of eminent domain. While RA 6395 provides a guideline, the determination of just compensation is a judicial function. The statutory provision for an easement fee is not absolute or conclusive. The nature and effect of the easement must be considered. In this case, the transmission lines would perpetually restrict the land’s utility, endanger lives, and diminish its value. Consequently, the owner is entitled to compensation equivalent to the full market value of the property, as this reflects the monetary equivalent of the property taken. The award of P550 per square meter, based on the commissioners’ reports and the land’s condition and potential, was deemed proper just compensation.