ALBAY NOTES
Eminent Domain
“Private property shall not be taken
for public use without just compensation”
It requires that of the government were to
take any private property, it may do so
provided: (1) it is for public use and that (2)
there be a payment for it, which
compensation must be one that is just.
*The power of eminent domain may be exercised even
by private corporations (ex.: public utilities involved
in supplying electricity, water, telecommunications,
rail and air transportation. (The authority to exercise
such is indicated in their franchises.)
The public use requirement is a
flexible and evolving concept influenced by
changing conditions.
*When land has been acquired for public use either by
exercise of eminent domain or by purchase, the former
owner retains no rights in the land. The public use may
be abandoned, or the land may be devoted to a
different use, without any impairment of the estate or
title acquired, or any reversion to the former owner.
*Local Government have the authority to seize private
land and turn the property over to private developers
for economic development.
To compensate is to render
something which is equal in value to the
taken or receiver.
*Just compensation means the equivalent for the value
of the property at the time of its taking.
*The property owner is entitled to compensation only
for what he actually loses, and what he loses only is
the actual value of the property at the time of taking.
Judicial Determination:
Just compensation is to be determined
by the judge (for it is a judicial function), in
accordance with the market value declared by
the owner or administrator or anyone having
legal interest in the property, or such market
values as determined by the assessor,
whichever is lower.
Timely and Prompt Payment:
Property cannot be simply taken in
the meantime and payment to follow some
years or decades later.
*Without prompt payment, compensation cannot be
considered “just”, because the property is made to
suffer the consequences of being immediately
deprived of his land while being made to wait before
actually receiving the amount necessary to cope with
his loss.
*When the payment of compensation is delayed, the
owner of the property is ordinarily entitled to the
award of an additional sum (interest).
*(Where property is acquired by the government and
all that remains is the payment of price) The owner’s
action to collect the price of his property must be
brought within 10 years. OTHERWISE, it would be
barred by the statute of limitations. (Where the
property is taken by the government for public use
without first acquiring title thereto either through
expropriation or negotiated sale) The owner’s action
to recover the land or the value thereof does not
prescribe.
Form or Mode of Compensation:
GR: Just compensation payment for property
taken should be in the form of cash.
XPN: If the exercise of such power would
entail expansive acquisitions to carry out an
important public policy, such as agrarian
reform.
The government has provided for the
payment partly in cash and partly in
government financial instrument (agrarian
reform program)
Parties Entitled to Compensation:
Those who have lawful interest in the
property to be condemned, including
mortgage, a lessee and a vendee in possession
under an executory contract.
Government Grants, Easement, and
Compensation: