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Francia, Jr. vs. Municipality of Meycauayan

The petition assailing the issuance of a writ of possession in an expropriation case was denied, the Supreme Court ruling that prior determination of public purpose is not a condition precedent for the writ. Under Section 19 of Republic Act No. 7160, a local government unit may immediately take possession of the property sought to be expropriated upon filing the complaint and depositing with the court at least 15% of the fair market value based on the current tax declaration. The Municipality of Meycauayan sought to expropriate petitioners' property for a public terminal, and the trial court issued a writ of possession after the required deposit, a procedure upheld by the appellate court and ultimately affirmed.

Primary Holding

The issuance of a writ of possession in an expropriation suit by a local government unit does not require a prior judicial determination of public purpose, as the law only conditions immediate possession on the filing of a sufficient complaint and the deposit of at least 15% of the property's fair market value based on the current tax declaration.

Background

The Municipality of Meycauayan, Bulacan, sought to expropriate a 16,256-square-meter property owned by petitioners situated at the junction of the North Expressway, Malhacan-Iba-Camalig road, and MacArthur Highway. The municipality intended to establish a common public terminal for utility vehicles and a weighing scale for heavy trucks. Petitioners opposed the expropriation, contending that the property was developed—with a Caltex gasoline station and a hollow blocks factory—and that the municipality's offer price of ₱2,333,500 was inadequate.

History

  1. Municipality of Meycauayan filed a complaint for expropriation in the RTC of Malolos, Bulacan, Branch 16.

  2. RTC issued an order on November 8, 2004, granting the writ of possession upon deposit of 15% of the fair market value and appointing commissioners.

  3. RTC denied petitioners' motion for reconsideration on January 31, 2005.

  4. Petitioners filed a petition for certiorari in the Court of Appeals, alleging grave abuse of discretion for lack of a hearing on public purpose.

  5. CA partially granted the petition on July 28, 2005, nullifying the order of expropriation but upholding the writ of possession.

  6. CA denied petitioners' motion for partial reconsideration.

  7. Petitioners filed a Petition for Review on Certiorari with the Supreme Court.

Facts

  • Expropriation Complaint: On February 6, 2003, respondent Municipality of Meycauayan filed a complaint to expropriate petitioners' 16,256-square-meter property, pursuant to Municipal Ordinance No. 2002-14, to establish a common public terminal and weighing scale for heavy trucks.
  • Petitioners' Opposition: Petitioners answered that the property was not idle land but was developed, containing a Caltex gasoline station and a hollow blocks factory, thus rendering the offer price of ₱2,333,500 (or ₱111.99 per square meter) insufficient.
  • RTC Ruling: After trial, the RTC ruled that the expropriation was for a public purpose, as the terminal would improve vehicular traffic flow, and the property was the best site due to its accessibility. The RTC issued an order allowing immediate possession upon deposit of 15% of the fair market value based on the current tax declaration and appointed commissioners for assessment.

Arguments of the Petitioners

  • Necessity of Hearing on Public Purpose: Petitioners argued that the RTC committed grave abuse of discretion in issuing the November 8, 2004 and January 31, 2005 orders without conducting a hearing to determine the existence of a public purpose.
  • CA Error in Upholding Writ: Petitioners maintained that the CA erred in upholding the RTC's stance that prior determination of public purpose was unnecessary for the issuance of a writ of possession.

Issues

  • Writ of Possession: Whether a prior judicial determination of public purpose is a condition precedent to the issuance of a writ of possession in an expropriation case filed by a local government unit.

Ruling

  • Writ of Possession: Prior judicial determination of public purpose is not a condition precedent to the issuance of a writ of possession. Under Section 19 of Republic Act No. 7160, a 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 15% of the fair market value based on the current tax declaration. The law does not require a hearing on public purpose before the writ may be issued.

Doctrines

  • Eminent Domain by Local Government Units (Conditions for Writ of Possession) — A local government unit may immediately take possession of the property sought to be expropriated upon the concurrence of two conditions: (1) the filing of a complaint for expropriation sufficient in form and substance in the proper court, and (2) the deposit with the said court of at least 15% of the fair market value of the property based on the current tax declaration. The determination of a public purpose is not a condition precedent to the issuance of a writ of possession.

Key Excerpts

  • "The law does not make the determination of a public purpose a condition precedent to the issuance of a writ of possession."

Precedents Cited

  • Robern Development Corporation v. Judge Quitain, 373 Phil. 773 (1999) — Followed for the conditions required before a local government unit may enter into possession of the property sought to be expropriated.
  • Biglang-awa v. Hon. Bacalla, 399 Phil. 308 (2000) — Followed similarly regarding the requisites for an LGU's immediate possession.
  • City of Iloilo v. Legaspi, G.R. No. 154614, 25 November 2004 — Followed for the specific holding that the determination of public purpose is not a condition precedent to the issuance of a writ of possession.
  • City of Manila v. Serrano, 412 Phil. 754 (2001) — Cited in City of Iloilo as the origin of the rule dispensing with prior determination of public purpose for the writ of possession.

Provisions

  • Section 19, Republic Act No. 7160 (Local Government Code of 1991) — Authorizes local government units to exercise the power of eminent domain for public use, purpose, or welfare. Applied to mandate that immediate possession is warranted upon filing the expropriation complaint and depositing at least 15% of the fair market value based on the current tax declaration, dispensing with the need for a prior hearing on public purpose.
  • Rule VI, Art. 36, Rules and Regulations Implementing RA 7160 — Reiterates the statutory condition that an LGU may immediately take possession upon filing of expropriation proceedings and deposit of at least 15% of the fair market value.

Notable Concurring Opinions

Chief Justice Reynato S. Puno, Associate Justice Antonio T. Carpio, Associate Justice Adolfo S. Azcuna, Associate Justice Teresita J. Leonardo-De Castro.