G.R. No. 187423 - LANDBANK OF THE PHILIPPINES, VS. EDNA MAYO ALCANTARA AND HEIRS OF CRISTY MAYO ALCANTARA.R E S O L U T I O N - Supreme Court E-Library

Ruling

WHEREFORE, in view of the foregoing considerations, the valuation of [respondents'] property by the Land Bank in the amount of P1,210,252.96 based on the income approach is hereby set aside and valuation therefor based on the fair market value, is fixed at P2,267,600.00 for the 22.6762 hectares as the just compensation for [respondents'] property. The amount shall earn interest reckoned from the notice of land valuation and acquisition on February 9, 1998. [33] LBP filed a motion for reconsideration. [34] It was denied. In the order denying the motion, the SAC gave a more detailed presentation of the rationale behind its ruling. We thus quote the order in full: Before the [c]ourt is [d]efendant Land Bank's motion for reconsideration of this [c]ourt's decision finding just compensation for [respondents'] property in the amount of P2,267,600.00 from Land Bank's finding of P1,210,252.96, on the main contention that the Decision does not conform with Administrative Order No. 5, series of 1998 of the DAR, nor Sec. 17 of R.A. 6657. The formula under DAR A.O. No. 5, series of 1998 states: LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10) Where: LV = Land Value CNI = Capitalized Net Income CS = Comparable Sales MV = Market Value per Tax Declaration The above formula shall be used if all the three factors are present, relevant and applicable. The [c]ourt finds however that the land subject of this case is no longer productive, as the trees are over 100 years old and are more productive if utilized as coconut lumber that as a matter of fact the property at present has been converted or part thereof converted into a subdivision. The [c]ourt finds therefore, that gauged by the above formula, the CNI (capitalized net income) and comparable sales (CS) are not present, and therefore, the formula cannot be considered relevant nor applicable. On the other hand, Sec. 17 of R.A 6657 provides as follows: Sec. 17. Determination of Just Compensation . In determining just compensation, the cost of acquisition of the land, the current value of like properties, its nature, actual use and income, the sworn valuation by the owner, the tax declarations, and assessments made by the government assessors, should be considered. The social and economic benefits contributed by the farmers and the farmworkers and by the Government to the property as well as the non-payment of taxes or loans secured from any government financing institution on the said land, shall be considered as additional factors to determine its valuation. Kapasiyahan Blg. 4 of Barangay Tamisian closely approximates the requirement of "current value of like properties" specified above, testified to by Nelia Cortez, Municipal Assessor of Tiaong, Quezon, for no less than 21 years. The [c]ourt finds her testimony forthright and unbiased and finds that she has a working knowledge of the duties and functions of her office as she cites the revisions of tax declarations and their specific dates. Her testimony, however, th