RULE 67

Rules of Court

E X P RO P R I ATIO N

Austria, 2D
REVIEW!
What is “eminent domain”?
•  Ultimate right of the sovereign power to appropriate any
property within its territorial sovereignty for a public
purpose
•  Power to take specific private property for public use upon
payment of just compensation (fair market value)

WHAT MAKES A
VALID TAKING?
1) Expropriator entered the private property with a warrant
2) Entry was NOT only momentary
3) Private property would be devoted for public use
4) Owner of the property was deprived of the beneficial
ownership of the property (this is the time of the taking, as
discussed in our Consti 2 class J )
 RA 7160
1991 LOCAL GOVERNMENT CODE
•  Section 19. Eminent Domain. - A local government unit may,
through its chief executive and acting pursuant to an ordinance,
exercise the power of eminent domain for public use, or purpose or
welfare for the benefit of the poor and the landless, upon payment
of just compensation, pursuant to the provisions of the Constitution
and pertinent laws: Provided, however, That the power of eminent
domain may not be exercised unless a valid and definite offer has
been previously made to the owner, and such offer was not
accepted: Provided, further, That the local government unit may
immediately take possession of the property upon the filing of the
expropriation proceedings and upon making a deposit with the
proper court of at least fifteen percent (15%) of the fair market value
of the property based on the current tax declaration of the property
to be expropriated: Provided, finally, That, the amount to be paid
for the expropriated property shall be determined by the proper
court, based on the fair market value at the time of the taking of the
property.
•  The concept of eminent domain is manifested in
expropriation proceedings.
•  Expropriation is commenced by a verified complaint.
(See ROC 67 Sec. 1 for contents of the complaint J )
•  Since expropriation is incapable of pecuniary estimation,
it falls within the jurisdiction of the RTC where the
property or a part of it is situated.
•  Expropriation is only necessary if the owner is unwilling
to sell or does not agree to the sale price of the
property.
What happens after the complaint
for expropriation has been filed?
DEPOSIT (Sec.2)
•  Complaint filed è Due notice to defendant èPlaintiff has
right to take or enter upon possession of real property if he
deposits with government depositary amount equivalent to
the assessed value (generally in money, see sec. 2) è Court
orders sheriff/proper officer to place plaintiff in possession of
the property and sheriff/officer submits a report to the Court
and serves copies to parties

•  A deposit renders the plaintiff to be ordered in possession of

the subject property. The purpose of a deposit is to advance
payment to the owner should the court decide in favor of the
plaintiff, and it also acts as an indemnity against the damage
sustained by the owner, in case the court decides in favor of
the defendant.
•  Note: If personal property is involved = value provisionally
ascertained
 Defenses and Objections (S.3)
NO OBJECTIONS OR DEFENSES
What to file Notice of appearance and
and serve manifestation
Period to file Time stated in the summons
Contents Manifestation to the effect that he
has no objection or defense;
Specifically designating or
identifying the property in which he
claims to be interested
Prohibitions
WITH OBJECTIONS OR DEFENSES
Answer to the complaint
Specifically designating or
identifying the property in which he
claims to have an interest, state the
nature and extent of the interest
claimed, and adduce all his
objections and defenses to the
taking of his property
NOTE: ALL objections and
defenses to the complaint or any
allegation therein must be included,
otherwise those not included are
deemed waived.
Counterclaim, cross-claim, third
party complaint in any pleading
 ORDER OF EXPROPRIATION (S.4)
•  This is issued when:
(1) the defendant’s objections and defenses have been overruled
(2) defendant raised no defense or objection
(3) di siya pinanindigan (no party appeared to defend)

•  The court issues an order of expropriation declaring that the

plaintiff has a lawful right to take the property sought to be
expropriated.

•  RE: APPEAL The final order may be appealed, but this appeal does
not prevent the court from determining the just compensation to be
paid. As stated in Sec. 11, if the appellate court determines that the
defendant has no right of expropriation, then the RTC will be
ordered to restore defendant’s property and have plaintiff pay
damages.

•  NO TURNING BACK. After the order is rendered, the plaintiff is not

permitted to dismiss or discontinue the proceeding except on
terms the court deems as equitable.
 1987  Cons*tu*on,  Ar*cle  3,  Sec*on  9  
“Private  property  shall  not  be  taken  for  
public  use  without  just  compensa-on.”  
 JUST COMPENSATION
•  Full and fair equivalent of the property being
taken from its owner by the expropriator
•  Determined as of the date of taking of the
property, or the filing of the complaint,
whichever came first
•  Measurement: Owner’s loss, not taker’s gain.
To compensate is to render something which is
equal in value to that taken or received.
 (Municipality of Biñan v. Hon. Garcia, 1989)

Determination of the plaintiff’s authority (plaintiff is

the one applying for the expropriation) to exercise
the power of eminent domain and the propriety of
the exercise in the context of the facts.

This results in either:

èOrder of dismissal of action
èOrder of condemnation declaring that the
expropriation is proper and legal

Determination of just compensation

This results in either:
èConducted with the assistance of not more than 3
commissioners
èThe order fixing compensation is also final and
appealable
How to ascertain the compensation
(s. 5 & 6)

•  Court appoints not more than 3 disinterested

and competent persons as commissioners to
ascertain and report to court just compensation
for property sought to be taken

•  Evidence may be introduced by the parties to

the commissioners and after due notice to the
parties, may measure the property and its
surroundings. Either party may argue the case.
 More on the commissioners
(s. 7 & 8)
•  Commissioners shall make a full and accurate report to the court of
all their proceedings. Proceedings will only be effective until the
court accepts their report and renders judgment in accordance with
the commissioner’s recommendations.

•  Court may (1) render judgment or (2) recommit the same to the
commissioners for further report of facts, or (3) may set aside the
report and appoint new commissioners, or (4) may accept the
report in part and reject it in part.

•  Court may make such order or render such judgment as shall secure
to the plaintiff the property essential to the exercise of his right of
expropriation.

•  BTW, fees of the commissioners are taxed as part of the costs of the
proceedings (Sec. 12 J ) Plaintiff bears the burden unless appeal is
taken by the defendant.
IN CASE OF UNCERTAIN
OWNERSHIP OR CONFLICTING
CLAIM (s.9)
•  Court may order any sums awarded as
compensation for the property to be paid to the
court for the benefit of the person adjudged in
the same proceeding
•  Judgment shall require payment of the sums to
either defendant or the court before the plaintiff
can enter or retain the property
 •  Plaintiff can now enter upon the
property and appropriate it for the
public use as defined in the judgment

•  If defendant refuses to accept payment

èPayment deposited in court, has
same effect as actual payment to
defendant
 OTHER PROVISIONS
•  Sec. 13: Judgment of expropriation
proceeding: State w/ description particular
property/interest expropriated, nature of
public use for which it is expropriated
*For real estate = certified copy of judgment
recorded with registry of deeds

•  Sec. 14: Guardian/ad litem of a minor may

aperform any act re: rexpropriation for
property belonging to a minor or a person
judicially declared to be incompetent
Zaballero v. NHA
•  Partial payment of the expropriated
amount may be done before the trial on
the merits. The rationale for a preliminary
deposit, so to speak, is that it serves as a
form of pre-payment and provides an
indemnity against damages.

•  The Government may be compelled to

pay in excess of the law’s limits regarding
just compensation because its
determination is a judicial function.
Presidential Decrees and the like only
serve as mere guidelines as to the amount
of the compensation.
 Municipality of binan
v. judge garcia

In actions for eminent domain, the period for

appeal from an order of condemnation is 30
days, counted from the notice of order.

NOT 15 days, because like in actions for

partition, an action for eminent domain has 2
stages (see handout) and multiple appeals
are allowed by law (no less than 2) for the
action.
 NHA v. Heirs of Guivelondo

REMEMBER: An order of condemnation or dismissal is

final.

If the case has been decided and the judgment already

final and executory, an action for expropriation cannot be
dismissed by the plaintiffs. It is arbitrary and capricious for
a government agency to initiate expropriation
proceedings, seize a person’s property, allow judgment of
the court to become final and executory and then refuse to
pay on the ground that there are no appropriations for the
property earlier taken and profitably used.