KNECHT
KNECHT
KNECHT
145254 July 20, 2006 Corona, J. FACTS: Municipality of Cainta filed a complaint for expropriation against PCIB and Rose Packing in the RTC of Antipolo. The complaint alleged that Rose Packing owned a parcel of land in Brgy. Santo Domingo, Cainta Rizal which was foreclosed by PCIB in whose name it was registered. The requested expropriation was due to the Sangguniang Bayan resolution which sought to purchase the land for the purpose of it being the site of the municipal administration compound. Another Sanggnuniang Bayan Resolution was issued, the said resolution called for the condemnation of said land in the event that negotiations for its voluntary sale would fail. The negotiation did fail, hence, the complaint for expropriation. Thereafter, Rose Packing moved to dismiss the complaint for failure to state a cause of action. Subsequently it filed for a supplemental motion which elucidates further her reasons for dismissing the complaint. In the said motion it alleged that it never received a formal offer to purchase from the municipality. It also averred that it could no longer be sued in view of its dissolution in 1986. It added that the property sought to be expropriated was under litigation and its expropriation would only complicate matters. The RTC-Antipolo denied Rose Packings motion to dismiss the expropriation case and subsequently ordered the Municipality of Cainta to deposit 10% of the provisional value of the property pursuant to the mandate of PD 1533. ISSUE: Whether the Court erred in ordering the Municipality of Cainta to deposit 10% of the provisional value of the property. HELD: YES. There has been an erroneous reliance to PD 1533 in this case. In Export Processing Zone Authority v. Dulay, PD 1533 has already been declared unconstitutional. Moreover, the exercise of the power of eminent domain by a local government unit is now governed by Section 19 of Republic Act 7160. For properties under expropriation, the law now requires the deposit of an amount equivalent to fifteen percent (15%) of the fair market value of the property based on its current tax declaration.