2020-21 The Law Pertaining to the State and Its Relationship with Its Citizens, Q3

A law is passed which provides that when the Department of Public Works and Highways expropriates property for the government infrastructure projects, it will have the sole and exclusive authority to determine the price to be paid as compensation to the landowner, which amount shall be no more than the assessed value of the property used for real property taxation. Is this provision of law valid? Explain briefly.

Quick check

Is a statutory provision giving DPWH exclusive authority to determine just compensation capped at tax assessed value valid?

Under Article III, Section 9 of the 1987 Constitution, what is required when private property is expropriated for public use?

What is the legal character of administrative guidelines or statutory formulas established for expropriation valuation?

Why is capping expropriation compensation at the property's tax assessed value unconstitutional?

Which branch of government possesses ultimate constitutional authority to determine just compensation in eminent domain cases?

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1. Just Compensation Concept
Under Article III, Section 9 of the 1987 Constitution, private property shall not be taken for public use without just compensation. Just compensation is defined as the full and fair equivalent of the property taken from its owner by the expropriator at the time of taking. The measure is not the taker's gain, but the owner's loss. To be just, compensation must be paid without unreasonable delay and reflect the fair market value of the property, taking into account its location, accessibility, real estate market conditions, and actual utility at the time of expropriation.

2. Inherent Judicial Function
The determination of just compensation in eminent domain cases is inherently and exclusively a judicial function. Executive agencies and the Legislature may enact preliminary standards or guidelines to assist in property valuation for expropriation projects. However, administrative findings and statutory formulas remain purely advisory upon the courts. Any legislative enactment or administrative rule that purports to make executive valuation final, conclusive, or binding upon the judiciary violates the constitutional principle of separation of powers. Courts retain the ultimate constitutional prerogative to determine fair market value.

3. Invalid Expropriation Limits
Statutory provisions that fix executive valuation as the sole basis for compensation or impose mandatory caps, such as limiting payment to the assessed tax value, are unconstitutional. Assessing real property taxes involves administrative considerations distinct from determining fair market value during expropriation proceedings. Precluding judicial assessment of property value strips landowners of due process and deprives courts of their constitutional authority. Laws attempting to divest trial courts of their jurisdiction to fix just compensation encroach upon judicial power and violate constitutional guarantees protecting private property.

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