Landbank of The Philippines V Orilla G.R. NO. 157206 June 27, 2008 Topic: Principle of Prompt Payment in Just Compensation Facts
Landbank of The Philippines V Orilla G.R. NO. 157206 June 27, 2008 Topic: Principle of Prompt Payment in Just Compensation Facts
Landbank of The Philippines V Orilla G.R. NO. 157206 June 27, 2008 Topic: Principle of Prompt Payment in Just Compensation Facts
FACTS
Respondents spouses Placido and Clara Orilla were owners of a parcel of land in Bohol containing an
area of 23.3416 hectares. On November 1996, spouses received a notice of land valuation and
acquisition informing them of the compulsory acquisition of the 21.1289 hectares of their landholdings
pursuant to the Comprehensive Agrarian Reform Law. The notice also informed the respondents that
they shall be paid an amount of Php 371, 154.99 as just compensation. However, respondents rejected
the offer and asked the Provincial Department of Agrarian Reform Adjudication Board (Provincial
DARAB) to re-assess and determine the amount of just compensation. Unfortunately, PDARAB affirmed
the initial valuation. Respondents then filed an action for the determination of just compensation before
the Special Agrarian Court in Tagbilaran City. On November 20, court rendered a decision fixing the just
compensation for the subject property at Php 1,479, 023.00. A notice of appeal was filed by the
petitioner, which was countered by the respondents by filing a motion for execution pending appeal.
Court granted the latter, which ordered the petitioner to deposit the aforementioned amount with any
accessible bank immediately. In light of this court order, the petitioner filed another special civil action
for certioriari and prohibition with prayer for issuance of a temporary restraining order and/or
preliminary injunction. Nevertheless, on July 29, 2002 a decision assailed that the granting of execution
was consistent with justice, fairness, and equity as respondents had been deprived of the used and
possession of such property. On the same year, the decision of SAC with regard to the amount fixing the
just compensation was set aside on the ground that there was no insufficient basis to support the land
valuation. Yet, it reaffirmed the decision of immediate payment of the respondents regardless if the case
was still pending.
ISSUES
Whether or not the Spouses Orilla were entitled to the execution pending appeal of the compensation
fixed by SAC based on the principle of prompt payment of just compensation
HELD
Yes, the court ruled that without prompt payment, compensation cannot be considered as “just” as the
property owner was made to suffer the consequence of being immediately deprived of his land while
being made to wait for a decision that can last for many years. Therefore, petitioner LBP was ordered to
release the amount of Php 371, 154.99 to the respondents—the initial amount of valuation. Whatever
amount that may be in deficient shall be delivered upon finality of decision.