Dear Atty. Gab,

Musta Atty! I hope you can shed some light on a problem I’m facing. My name is Maria Hizon, and I own a 2-hectare parcel of agricultural land in Barangay San Isidro, Batangas, which I inherited from my parents. It’s primarily riceland, but we were hoping to maybe develop a small portion for rest houses in the future since it’s quite scenic.

Recently, representatives from the National Grid Corporation (NGC) approached me. They informed me that they need to construct high-voltage transmission lines for a major power project, and these lines will pass directly over a significant section of my property, about 7,000 square meters. They are offering to pay me for a ‘right-of-way easement’.

Here’s my concern: they are only offering an amount equivalent to 10% of the property’s current market value, based on the tax declaration. They cited some law saying that’s the maximum they need to pay for just an easement since they aren’t ‘buying’ the land outright. However, these will be massive towers and high-tension wires! I feel like having those lines overhead will severely limit what I can do with that portion of my land. I probably won’t be able to plant certain crops, definitely can’t build anything under them, and honestly, I worry about the safety and the drastic drop in the land’s overall value, not just the affected strip. It feels like I’m losing the use of that land entirely, not just granting passage. Is this 10% rule absolute? Is it fair compensation when the impact seems so significant? I’m really confused about my rights here. Thank you po.

Sincerely,
Maria Hizon

Dear Maria,

Thank you for reaching out. I understand your concern regarding the National Grid Corporation’s plan to construct transmission lines over your property and their offer of compensation based on a 10% calculation. This is a common issue faced by landowners when essential public projects require the use of private property.

The core issue here revolves around the concept of just compensation in eminent domain proceedings, particularly when an easement, like a right-of-way for transmission lines, is imposed. While the government, through agencies like NGC, has the right to acquire such easements for public use, the compensation must be ‘just’. Crucially, the determination of what constitutes just compensation is fundamentally a judicial function. Legislative formulas, like the 10% rule you mentioned, are generally considered mere guidelines and are not binding on the courts, especially if they prevent fair payment for the owner’s loss.

Understanding Your Rights When Public Infrastructure Affects Your Land

The situation you described involves the exercise of the power of eminent domain, which is the inherent right of the State (or entities authorized by it, like power corporations) to take private property for public use, provided that just compensation is paid to the owner. This power is enshrined in our Constitution to ensure that individual property rights yield to the greater public good, but not without fair recompense.

Often, for projects like transmission lines, the acquiring entity seeks only an easement of right-of-way, which is a legal right to pass through or use property owned by another for a specific purpose. The argument is usually that since ownership remains with you, you are only entitled to a fraction of the value. However, Philippine jurisprudence has consistently recognized that the determination of just compensation cannot be rigidly confined by legislative formulas.

“Legislative enactments, as well as executive issuances, fixing or providing for the method of computing just compensation are tantamount to impermissible encroachment on judicial prerogatives. Thus they are not binding on courts and, at best, are treated as mere guidelines in ascertaining the amount of just compensation.”

This principle underscores that courts have the final say on what constitutes fair payment. The 10% limitation, often cited based on laws like Section 3A of Republic Act No. 6395 (governing the National Power Corporation, a precursor or counterpart to entities like NGC), has been repeatedly scrutinized by the Supreme Court. While the law might suggest such a cap for easements where the principal use of the land isn’t impaired, the reality of high-voltage transmission lines often tells a different story.

The key definition of just compensation is “the full and fair equivalent of the property taken from its owner by the expropriator. The measure is not the taker’s gain, but the owner’s loss.” The crucial question becomes: does the imposition of this right-of-way easement effectively deprive you of the normal use and enjoyment of your property? If the presence of high-tension wires perpetually restricts your ability to use the land for its intended purpose (agriculture, potential development), introduces safety hazards, or significantly diminishes its market value, then the courts have often treated such easements as equivalent to a taking of the property itself.

The Supreme Court has held in similar cases involving transmission lines that since the high-tension electric current passing through will perpetually deprive the property owners of the normal use of their land, it is only just and proper to require the expropriator to recompense them for the full market value of their property.

Therefore, the argument that you should receive only 10% because it’s merely an ‘easement’ may not hold water if the practical effect is a significant deprivation of your property rights. You are entitled to the full market value of the affected portion if the easement effectively constitutes a taking.

Determining this full market value involves considering various factors: the property’s classification, location, size, shape, the selling price of similar lands in the vicinity, tax declarations, and potential uses. Importantly, any valuation must be based on concrete evidence. Courts often appoint commissioners to help assess the property, but their findings must be supported by documentation.

A commissioners’ land valuation which is not based on any documentary evidence is manifestly hearsay and should be disregarded by the court. Valuations require support like sworn declarations, tax documents, zonal valuations, or documented market sales data.

Furthermore, the value should generally be determined as of the date the expropriation complaint was filed or the date of actual taking, whichever occurred first. Any subsequent appreciation (or depreciation) unrelated to the project itself is usually not considered.

Practical Advice for Your Situation

• Document Everything: Keep meticulous records of all communications, notices, and offers received from NGC. Note dates, times, and names of representatives you speak with.
• Gather Evidence of Value: Collect documents showing your property’s value around the time NGC initiated contact or filed any action. This includes your updated Tax Declarations, and if possible, evidence of recent sales prices of comparable properties nearby (deeds of sale, realtor listings).
• Detail the Impact: Clearly list and document how the transmission lines will limit your current and future use of the affected land and potentially the remaining area (e.g., inability to build, restrictions on crop height, safety concerns affecting usability, visual blight impacting future development value). Photographs can be helpful.
• Do Not Assume 10% is Final: Understand that the 10% offer based on their interpretation of the law is likely a starting point for negotiation and can be challenged. It is not necessarily the final legally mandated amount.
• Seek Independent Appraisal: Consider getting an independent appraisal of your property’s fair market value, both for the affected portion and any potential decrease in value (consequential damages) to the remaining part.
• Consult a Lawyer Experienced in Expropriation: Navigating eminent domain proceedings can be complex. Engaging a lawyer specializing in land issues or expropriation can help protect your rights and ensure you present the strongest case for fair compensation.
• Prepare for Court Action: If negotiations fail, NGC will likely file an expropriation case. Be prepared to present your evidence of value and the impact of the easement to the court and any appointed commissioners.

The determination of just compensation is a constitutional right, ensuring fairness when private property is taken for public benefit. While statutes provide guidelines, they cannot override the judicial power to determine the true and fair value based on evidence. Given the significant impact high-voltage lines typically have, arguing for the full market value of the affected land is a well-established position in Philippine jurisprudence.

Hope this helps!

Sincerely,
Atty. Gabriel Ablola

For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.