G.R. No. 124795 - FORFOM DEVELOPMENT CORPORATION, VS. PHILIPPINE NATIONAL RAILWAYS. D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, premises considered, judgment is hereby rendered in favor of plaintiff and against defendant ordering the latter to pay the former the following: Just compensation of the subject real properties consisting of 100,128 square meters and covered by TCT Nos. T-34387, T-34384 and T-34386 at P10.00 per square meter, with legal interest from the time of actual taking of plaintiff's real properties until payment is made by the defendant; The amount of P4,480,000.00 as unearned income of plaintiff from 1972 up to the current year, and thereafter, the amount of P224,000 yearly, with legal interest until payment is made; Actual damages in the amount of P150,000 corresponding to sugarcane crops and mango trees destroyed or damaged as a result of the unlawful taking of plaintiff's real properties, with legal interest until payment is made; The amount of P100,000 as and for attorney's fees; The amount of P150,000 for litigation expenses plus the costs of this suit. Plaintiff's claim for recovery of possession and the other prayers in the complaint are hereby dismissed for want of merit. [31] The trial court found that the properties of Forfom were taken by PNR without due process of law and without just compensation. Although the power of eminent domain was not exercised in accordance with law, and PNR occupied petitioner's properties without previous condemnation proceedings and payment of just compensation, the RTC ruled that, by its acquiescence, Forfom was estopped from recovering the properties subject of this case. As to its right to compensation and damages, it said that the same could not be denied. The trial court declared that P10.00 per square meter was the fair and equitable market value of the real properties at the time of the taking thereof. Not contented with the decision, both parties appealed to the Court of Appeals by filing their respective Notices of Appeal. [32] PNR questioned the trial court's ruling fixing the just compensation at P10.00 per square meter and not the declared value of P0.60 per square meter or the fair market value of P1.25 paid to an adjacent owner. It likewise questioned the award of actual damages and unearned income to Forfom. On 24 April 1996, the appellate court disposed of the case as follows: WHEEFORE, the decision appealed from is hereby AFFIRMED insofar as (1) it denies plaintiff's claim for recovery of possession and (2) it awards just compensation at the rate of P10.00 per square meter which defendant must pay to plaintiff, but with legal rate of interest thereon hereby specifically fixed at six (6) percent per annum starting from January of 1973 until full payment is made. However, the appealed decision is MODIFIED in the sense that plaintiff's claim for damages is DENIED for lack of merit. No pronouncement as to costs. [33] Except for the deletion of the award of damages, attorney's fees and litigation expenses, the appellate court agreed the with trial court. We quote: There is no dispute that d