NAPOCOR V. CA (REMEDIAL)

Issue: At what point should the value of the land subject of expropriation be computed: at the time of taking or at the time of the filing of the complaint for eminent domain?

Normally, the time of the taking coincides with the filing of the complaint for expropriation. Hence, many rulings of this Court have equated just compensation with the value of the property as of the time of filing of the complaint.

The general rule however admits of an exception where this Court fixed the value of the property as of the date it was taken and not at the date of the commencement of the expropriation proceedings.

In the old case of Provincial Government of Rizal v. Caro de Araullo, the Court ruled that ..."the owners of the land have no right to recover damages for this unearned increment resulting from the construction of the public improvement (lengthening of Taft Avenue from Manila to Pasay) for which the land was taken. To permit them to do so would be to allow them to recover more than the value of the land at the time when it was taken, which is the true measure of the damages, or just compensation and would discourage the construction of important public improvements.

In Municipality of La Carlota v. Spouses Felicidad Baltazar and Vicente Gan, Justice Fernando said ..."the owner as is the constitutional intent, is paid what he is entitled to according to the value of the property so devoted to public use as of the date of taking. From that time, he had been deprived thereof. He had no choice but to submit. He is not, however to be despoiled of such a right. No less than the fundamental law guarantee is just compensation. It would be an injustice to him certainly if from such a period, he could not recover the value of what was lost. There could be on the other hand, injustice to the expropriator if by a delay in the collection, the increment in price would accrue to the owner. The doctrine to which this Court has been committed is intended precisely to avoid contingency fraught with unfairness."