G.R. No.

60077 January 18, 1991

NPC v Gutierrez

MAIN TOPIC – EMINENT DOMAIN

I. FACTS
 The National Power Corporation (NPC), in accordance with the Commonwealth Act No. 120, is invested with the power
of eminent domain for the purpose of pursuing its objectives, which among others is the construction, operation, and
maintenance of electric transmission lines for distribution in the Philippines.
 In the case at bar, NPC will need to construct its 230 KV Mexico-Limay transmission lines. However, by doing so, it
needs to pass through the lands belonging to Matias Cruz, Heirs of Natalia Paule and spouses Misericordia Gutierrez and
Ricardo Malit.
 NPC initiated negotiations with the owners of the subject lots for the acquisition of right of way easements, however it
was unsuccessful. Hence, NPC was forced to file eminent domain proceedings against the said lot owners.
 The RTC then, for the purpose of determining the fair and just compensation due to the lot owners, assigned three (3)
commissioners comprised of one representative for NPC, one representative for the spouses Malit and Gutierrez, and one
from the court, who were given authority to receive evidence, conduct ocular inspection of the premises and prepare
appraisal report indicating the fair and just compensation to be paid to the said lot owners.
 Due to an amicable settlement, the case of Heirs of Natalie Pule was dismissed while the case against Matias Cruz was
decided thereafter; leaving the case of spouses Ricardo Malit and Misericonia Gutierrez unresolved.
 Accordingly, the commissioners submitted their individual reports:
o For NPC: the commissioner assessed an easement fee of P1.00 per sqm of the 760 sqm lot.
o For the spouses: the commissioner assesed an easement fee of P10.00 per sqm amounting to P7,600.
o From the court: the commissioner assessed and easement fee of P5.00 per sqm of the 760 sqm lot.
 NPC urged the court to consider their commissioner’s assessment while the spouses rejected and dissented to both the
recommended price of the NPC and the court’s representatives.
 Hence, the RTC adopted the ‘P10.00 per sqm’ assessment of the defendant and ordered the NPC to pay the spouses 7,600
pesos as just and reasonable compensation for the right-of-way easement of the affected area.
 Upon a motion for reconsideration by NPC, the RTC modified their decision and reduced the amount from P10.00 per
sqm to P5.00 per sqm.
 Dissatisfied with the decision of the trial court, NPC appealed to the CA, which said court affirmed the decision of the the
RTC.
 Hence, the petition before the SC.

II. ISSUE
 W/N the acquisition of a mere right-of-way is an exercise of the power of eminent domain contemplated by law.

III. HELD
 Yes
 The SC held that after the right of way easement, the spouses will be deprived of their proprietary rights since they will
not be able to plant any crops higher than three (3) meters. Moreover, the electrical currents that will be conveyed
through the transmission lines will place in danger the life and limbs of the spouses. And while the NPC only pays the fee
to the spouses once, the latter shall continually pay the taxes due on said affected portion of their property.
 Therefore, considering the nature and effect of the installation of the transmission lines, which will deprive the spouses of
the ordinary use of their land, as well as the right-of-easement is considered a taking as cited by the SC under
jurisprudence, the acquisition of a mere right-of-way is indeed, an exercise of the power of eminent domain.

IV. DISPOSITIVE PORTION

 WHEREFORE, the assailed decision of the Court of Appeals is AFFIRMED.

V. DOCTRINE
 Eminent Domain – the acquisition of a mere right-of-way is an exercise of the power of eminent domain if the taking will
deprive the owner of the ordinary use of his property.

Ponente: Mendoza, J.

Digest Maker: LJ Tiam