Commissioner of Public Highways vs. Burgos (Consti1)

Commissioner of Public Highways, petitioner, vs. Hon. Francisco P. Burgos, in his capacity as Judge of the Court of First Instance of Cebu City, Branch II, and Victor Amigable, respondents.

March 31, 1980

De Castro, J:

Facts:

• On 1924, the government took private respondent Victor Amigable's land for road-right-of-way purpose.
• On 1959, Amigable filed in the Court of First Instance a complaint to recover the ownership and possession of the land and for damages for the alleged illegal occupation of the land by the government (entitled Victor Amigable vs. Nicolas Cuenco, in his capacity as Commissioner of Public Highways and Republic of the Philippines).
• Amigable's complaint was dismissed on the grounds that the land was either donated or sold by its owners to enhance its value, and that in any case, the right of the owner to recover the value of said property was already barred by estoppel and the statute of limitations. Also, the non-suability of the government was invoked.
• In the hearing, the government proved that the price of the property at the time of taking was P2.37 per square meter. Amigable, on the other hand, presented a newspaper showing that the price was P6.775.
• The public respondent Judge ruled in favor of Amigable and directed the Republic of the Philippines to pay Amigable the value of the property taken with interest at 6% and the attorney's fees.

Issue:

• Whether or not the provision of Article 1250 of the New Civil Code is applicable in determining the amount of compensation to be paid to private respondent Amigable for the property taken.

Held:

• Not applicable.

Ratio:

• Article 1250 of the NCC provides that the value of currency at the time of the establishment of the obligation shall be the basis of payment which would be the value of peso at the time of taking of the property when the obligation of the government to pay arises. It is only when there is an agreement that the inflation will make the value of currency at the time of payment, not at the time of the establishment, the basis for payment.
• The correct amount of compensation would be P14,615.79 at P2.37 per square meter, not P49,459.34, and the interest in the sum of P145,410.44 at the rate of 6% from 1924 up to the time respondent court rendered its decision as was awarded by the said court should accordingly be reduced.