Expropriation by LGUs | Eminent Domain | THE BILL OF RIGHTS

Expropriation by Local Government Units (LGUs) under the Bill of Rights (Eminent Domain)

Eminent Domain and Constitutional Framework: Eminent domain is the inherent power of the state to take or appropriate private property for public use upon payment of just compensation. It is anchored in the Bill of Rights, specifically under Article III, Section 9 of the 1987 Philippine Constitution, which states:

"Private property shall not be taken for public use without just compensation."

This provision applies to both national and local governments, including Local Government Units (LGUs). The power of eminent domain, while inherent to the State, is delegated to LGUs under Republic Act No. 7160 (the Local Government Code of 1991) and other relevant laws.

Legal Framework Governing LGU Expropriation Powers:

1. Local Government Code of 1991 (RA 7160)

   • Section 19 of the Local Government Code provides the authority for LGUs to exercise the power of eminent domain. It explicitly grants provinces, cities, municipalities, and barangays the power to expropriate private property for public use, upon the determination of necessity, and with the observance of certain procedural safeguards.

   • The LGU's power to expropriate must be exercised:

     • For public use, purpose, or welfare, or for the benefit of the poor and the landless;
     • Through an ordinance enacted by the Sangguniang Panlalawigan, Sangguniang Panlungsod, Sangguniang Bayan, or Sangguniang Barangay, as the case may be.

2. Essential Elements for the Exercise of Eminent Domain by LGUs: LGUs must meet certain requirements before they can validly expropriate property:

   • Public Use: The expropriation must be for a public purpose, such as the construction of public infrastructure (e.g., roads, schools, markets) or for projects benefiting the public at large, including low-cost housing for the poor.

   • Necessity: The LGU must establish the necessity of the expropriation. This means that the property being taken is essential for the public purpose intended and that there is no viable alternative.

   • Just Compensation: The LGU must pay the property owner just compensation. This is the fair market value of the property, determined by the court, and must be paid before the LGU takes possession of the property, except in cases allowed by law.

   • Due Process: LGUs are bound by procedural due process requirements, ensuring that property owners are given notice, a chance to be heard, and just compensation before the property is taken.

3. Judicial Confirmation Required:

   • The power of eminent domain is not self-executing. LGUs cannot take private property without judicial approval. After the passage of an ordinance authorizing expropriation, the LGU must file a petition in the Regional Trial Court (RTC) in the jurisdiction where the property is located.

   • The court will then determine the propriety of the expropriation and the amount of just compensation.

   • LGUs are required to deposit an amount equivalent to the fair market value of the property, as assessed by the Bureau of Internal Revenue (BIR), before taking possession of the property. This deposit ensures that the property owner is secured of initial compensation pending final determination by the court.

Judicial Process in Expropriation by LGUs:

1. Filing of Petition:

   • After the ordinance is passed, the LGU files a verified complaint for expropriation before the RTC. The complaint must state the public use or purpose of the expropriation, describe the property, and identify the owners.

   • The LGU must attach a copy of the ordinance authorizing the expropriation and an offer letter made to the property owner, if applicable.

2. Issuance of a Writ of Possession:

   • Once the LGU makes a deposit equivalent to 100% of the property's value as assessed by the BIR or an independent appraiser, the court issues a writ of possession, authorizing the LGU to take immediate possession of the property, even if the expropriation case is still pending.

   • However, if the owner challenges the validity of the expropriation, the court must resolve the challenge before issuing the writ of possession.

3. Determination of Just Compensation:

   • The court appoints a commission composed of three competent and disinterested persons, one of whom may be nominated by the property owner and one by the LGU, to ascertain the fair market value of the property.

   • The commission conducts an evaluation of the property, considering factors such as the property's current use, location, and market value.

4. Final Judgment on Compensation:

   • After hearing the commissioners’ report and any objections from the parties, the court determines the final amount of just compensation. The LGU must then pay the balance, if any, based on the court's judgment.

5. Effect of Abandonment or Discontinuance:

   • If an LGU decides to abandon or discontinue the expropriation, the property owner is entitled to recover the property, and any deposits or payments made must be returned. In case the LGU has already taken possession, it must restore the property to the owner or provide additional compensation for damages suffered by the owner due to the partial expropriation.

Limitations and Safeguards on LGU Expropriation:

1. Requirement of Prior Negotiation:

   • Before an LGU resorts to expropriation, it is mandated to make an offer to purchase the property. Expropriation should be a last resort if a voluntary sale cannot be negotiated.

2. Protection of Certain Properties:

   • Publicly-owned properties such as those used for national defense, military installations, and public buildings, or those owned by the National Government, are exempt from expropriation by LGUs.

   • Private cemeteries, places of worship, and educational institutions are also generally protected from expropriation, unless the property is no longer used for such purposes.

3. Expropriation of Agricultural Lands:

   • Special rules apply to agricultural lands under the Comprehensive Agrarian Reform Law (CARL) and related laws. Expropriation of these lands must be consistent with the national agrarian reform program and is subject to the Department of Agrarian Reform’s (DAR) approval if it involves lands covered by agrarian reform.

   • The expropriation of agricultural lands for urban development must comply with specific zoning and land use regulations.

4. Expropriation for Housing and Urban Development:

   • Under Republic Act No. 7279 (Urban Development and Housing Act of 1992), LGUs are empowered to expropriate idle or underutilized lands for socialized housing purposes, particularly for the benefit of the poor and homeless. Such expropriation must follow the guidelines set forth in the law, particularly in terms of land valuation, prioritization, and relocation.

5. Judicial Review:

   • The courts retain the power of judicial review to determine whether the LGU has complied with the requisites of expropriation, including necessity, public use, and just compensation. Property owners have the right to challenge the legality of the expropriation in court.

6. Public Consultation and Participation:

   • While not always a legal requirement, public consultation and participation may be advisable in cases where the expropriation affects communities or raises significant public interest. LGUs are encouraged to involve stakeholders to avoid opposition and ensure the transparency of the expropriation process.

Conclusion:

Expropriation by LGUs is a potent tool for local governments to implement infrastructure projects and social programs for public benefit, but it is tempered by constitutional limitations and legal safeguards to protect private property rights. These include strict adherence to the requirements of public use, just compensation, and due process, all under the watchful eye of the courts. LGUs must exercise this power cautiously and responsibly, ensuring that the rights of property owners are balanced against the needs of the greater community.