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    REP V V. LIM

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    Jossa Reyes
    The government expropriated two lots owned by the Denzons in 1938 for military purposes but failed to pay the just compensation amount of P4,062.10 that was awarded by the court in 1940. In 1964, the successors in interest of the Denzons, Valdehueza and Panerio, mortgaged one of the lots to Vicente Lim but later defaulted. Lim foreclosed on the mortgage and obtained the title in his name. In 1992, Lim filed to quiet title to the property. The Supreme Court ruled in favor of Lim, finding that while owners cannot recover possession for non-payment of compensation, the government's failure to pay within 5 years of the judgment allows the owners to

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    REP V V. LIM

    Uploaded by

    Jossa Reyes
    20 views2 pages
    The government expropriated two lots owned by the Denzons in 1938 for military purposes but failed to pay the just compensation amount of P4,062.10 that was awarded by the court in 1940. In 1964, the successors in interest of the Denzons, Valdehueza and Panerio, mortgaged one of the lots to Vicente Lim but later defaulted. Lim foreclosed on the mortgage and obtained the title in his name. In 1992, Lim filed to quiet title to the property. The Supreme Court ruled in favor of Lim, finding that while owners cannot recover possession for non-payment of compensation, the government's failure to pay within 5 years of the judgment allows the owners to

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    REP v V. LIM (1)

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    The government expropriated two lots owned by the Denzons in 1938 for military purposes but failed to pay the just compensation amount of P4,062.10 that was awarded by the court in 1940. In 1964, the successors in interest of the Denzons, Valdehueza and Panerio, mortgaged one of the lots to Vicente Lim but later defaulted. Lim foreclosed on the mortgage and obtained the title in his name. In 1992, Lim filed to quiet title to the property. The Supreme Court ruled in favor of Lim, finding that while owners cannot recover possession for non-payment of compensation, the government's failure to pay within 5 years of the judgment allows the owners to

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    20 views2 pages

    REP V V. LIM

    Uploaded by

    Jossa Reyes
    The government expropriated two lots owned by the Denzons in 1938 for military purposes but failed to pay the just compensation amount of P4,062.10 that was awarded by the court in 1940. In 1964, the successors in interest of the Denzons, Valdehueza and Panerio, mortgaged one of the lots to Vicente Lim but later defaulted. Lim foreclosed on the mortgage and obtained the title in his name. In 1992, Lim filed to quiet title to the property. The Supreme Court ruled in favor of Lim, finding that while owners cannot recover possession for non-payment of compensation, the government's failure to pay within 5 years of the judgment allows the owners to

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    REPUBLIC v VICENTE LIM

    GR No. 161656 June 29, 2005


    En Banc Sandoval-Gutierrez, J

    FACTS
    On Sept. 5, 1938, the government instituted an action for expropriation with the CFI of
    Cebu involving two lots of the Banilad Friar Land Estate in Lahug, Cebu City for the
    purpose of establishing a military reservation for the Phil Army.

    After depositing P9,500.00 with the PNB, pursuant to the order of the court, the
    government took possession of the lots. Thereafter, on May 14, 1940, the CFI rendered
    a decision ordering the government to pay the lot owners the sum of P4,062.10 as just
    compensation.

    The Denzon, the lot owners appealed with the CA, but it was dismissed and an Entry of
    Judgment was made on April 5, 1948.

    In 1950, one of the heirs of the Denzons, Jose Galeos filed with the National Airports
    Corp a claim for rentals for the two lots, but it “denied knowledge of the matter.”
    Another heir, Nestor Belocura, brought the claim to the Office of Pres. Garcia who
    instructed the Civil Aeronautics Administration and the Secretary of National Defense to
    expedite action on said claim. On Sept. 16, 1961, Lt. Cabal rejected the claim but
    expressed willingness to pay the appraised value within a reasonable time.

    However, payment was not effected, thus, on Sept. 20, 1961, Francisca Valdehueza and
    Josefina Panerio who were the successors in interest filed with the same CFI an action
    for recovery of possession with damages.

    On Nov. 9, 1961, the lots were registered under their name with annotation, "subject to
    the priority of the National Airports Corporation to acquire said parcels of land, Lots 932
    and 939 upon previous payment of a reasonable market value."

    On July 31, 1962, the CFI decided in their favor for failure of the government to pay.
    However, they were ordered to execute a Deed of Sale in favor of the Government, with
    the expropriation amount adjusted. They appealed the CFI’s decision, but the same was
    denied.

    They appealed with the Court which affirmed the CFI’s decision that they were still the
    registered owners in view of the government’s failure to pay just compensation.
    However, they were not entitled to recover possession, but only to the just
    compensation awarded by the Court.

    In 1964, Valdehueza and Panerio mortgaged one of the lots to Vicente Lim as security
    for their loans. They defaulted in paying, thus, Lim foreclosed the mortgage and had the
    title transferred to his name.

    On Aug. 20, 1992, Lim filed for quieting of title with the Cebu City RTC which rendered a
    favorable decision.

    ISSUE
    Whether or not the Government could still invoke expropriation in the given case.

    RULING
    No. While the prevailing doctrine is that "the non-payment of just compensation does
    not entitle the private landowner to recover possession of the expropriated
    lots, however, in cases where the government failed to pay just compensation within
    five (5) years from the finality of the judgment in the expropriation proceedings, the
    owners concerned shall have the right to recover possession of their property. This is in
    consonance with the principle that "the government cannot keep the property and
    dishonor the judgment."

    The five-year period limitation will encourage the government to pay just compensation
    punctually. This is in keeping with justice and equity. After all, it is the duty of the
    government, whenever it takes property from private persons against their will, to
    facilitate the payment of just compensation. In Cosculluela v. Court of Appeals, the Court
    defined just compensation as not only the correct determination of the amount to be
    paid to the property owner but also the payment of the property within a reasonable
    time. Without prompt payment, compensation cannot be considered "just."

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