G.R. No. 175176 , October 17, 2008.
National Power Corporation, petitioner, vs. Santa Loro Vda. de Capin and Sps. Julito Quimco and Gloria Capin, respondents.

FACTS

Petitioner National Power Corporation (NAPOCOR), a government corporation with the power of eminent domain, expropriated portions of respondents’ lands in Carmen, Cebu, for its 230 KV Leyte-Cebu Interconnection Project. Respondents granted “Permission to Enter” upon NAPOCOR’s representation that it would pay just compensation. After constructing transmission towers and lines in 1996, NAPOCOR imposed restrictions on land use, depriving respondents of income. NAPOCOR paid respondents only ₱8,015.90 and ₱5,350.49, respectively. Respondents later discovered other landowners in the same area who resisted expropriation or entered into compromise agreements were paid ₱448.30 to ₱450.00 per square meter. Respondents filed a Complaint for Rescission of Agreement, Recovery of Possession, Removal of Tower and Transmission Lines, and Damages. During pre-trial, the parties agreed the sole issue was the determination of just compensation for the 3,199-square-meter portion taken. Respondents filed a Motion for Summary Judgment. Despite extensions, NAPOCOR failed to file its Comment. The Regional Trial Court (RTC) granted summary judgment, ordering NAPOCOR to pay ₱448.33 per square meter or ₱1,434,207.67 total, with interest. The RTC later modified the interest rate to 6% per annum from filing of complaint and 12% per annum from finality until satisfaction. The Court of Appeals affirmed the RTC. NAPOCOR elevated the case via Petition for Review on Certiorari.

ISSUE

1. Whether the Court of Appeals erred in upholding the propriety of summary judgment in determining just compensation.
2. Whether the Court of Appeals erred in affirming the finding that the total area affected is 3,199 square meters.
3. Whether the Court of Appeals erred in ruling that a prior expropriation case (Civil Case No. DNA-379) provided sufficient basis for fixing fair market value at ₱448.33 per square meter.
4. Whether the Court of Appeals erred in not ruling that under NAPOCOR’s Charter, respondents are only entitled to simple easement fees.

RULING

The Supreme Court denied the petition and affirmed the assailed Court of Appeals Decision.
1. On the propriety of summary judgment, the Court ruled it was appropriate. The parties, during pre-trial, conceded the taking of 3,199 square meters and agreed the only issue was determining just compensation. NAPOCOR failed to file its Opposition to the Motion for Summary Judgment despite extensions. There was no genuine issue as to any material fact, making summary judgment proper.
2. On the area affected, the Court found no reversible error. The area of 3,199 square meters was based on respondents’ documentary evidence, including affidavits and sketch plans. NAPOCOR, in its Motion for Extension, admitted it was verifying the area’s correctness and indicated it might join the Motion for Summary Judgment upon confirmation. It never contested the area thereafter.
3. On the fair market value, the Court upheld the use of the valuation in Civil Case No. DNA-379 (₱448.33 per square meter) as basis. The property in that case was adjacent to respondents’ lands, of the same locality and classification. Just compensation must be the fair market value at the time of taking, and the consistent valuation in the same area for the same project provided a sufficient and equitable basis.
4. On the claim that respondents are only entitled to easement fees under NAPOCOR’s Charter, the Court ruled that the imposition of restrictions amounting to a deprivation of beneficial use constitutes a taking of the property itself, not a mere easement. Respondents lost substantial income and use of their land. Therefore, they are entitled to full compensation for the land’s fair market value, not merely a 10% easement fee. The constitutional mandate of just compensation prevails over the charter provision.