Claim for Unpaid Right-of-Way Compensation from DPWH Region IV-A

Claim for Unpaid Right-of-Way (ROW) Compensation from the DPWH Region IV-A

A practitioner's one-stop guide, Philippine setting


1. Constitutional & Policy Foundations

Provision Key takeaway
Art. III, §9, 1987 Constitution Private property may be taken for public use only upon payment of just compensation.
Art. XII, §2 (National Economy & Patrimony) Recognises State power of eminent domain, balanced by owners’ right to be made whole.
EO No. 292 (Admin. Code) Vests DPWH with mandate to acquire ROW for national infrastructure.

2. Core Statutes & Issuances

  1. R.A. 10752 – “The Right-of-Way Act” (2016)

    • Repealed R.A. 8974 & EO 1035.
    • Sec. 5 requires DPWH to tender 100 % of BIR zonal value + replacement cost of improvements & crops before taking possession.
    • Sec. 6–9 detail negotiation, expropriation, and provisional payments.
  2. IRR of R.A. 10752 (DPWH Department Order (D.O.) 65-16; amended by D.O. 148-17 & 28-23)

    • Creates Regional ROW Task Force (RROW-TF) and Project ROW Committees.
  3. Rules of Court, Rule 67 (Expropriation) – governs judicial actions when negotiation fails.

  4. R.A. 8762 (Retail Tax incentives), BIR Rev. Regns. 13-18 – tax treatment of ROW sales.

  5. COA Circular 2020-001 – documentary standards for money claims vs. government.


3. DPWH Region IV-A at a Glance

Unit Function in ROW matters
Regional Office (Calamba City, Laguna) Policy implementation, fund release, oversight of district offices.
RROW-TF Screens, evaluates, endorses payment requests.
Legal Division Drafts deeds, clears titles, appears in court.
15 District Engineering Offices (DEOs) Initial field validation, community coordination, inventory of improvements.

Provinces covered: Cavite, Laguna, Batangas, Rizal, Quezon (CALABARZON).


4. Why Compensation Remains Unpaid

  • Legacy projects (pre-R.A. 10752) where land was occupied without formal acquisition.
  • Defective/untitled lands awaiting judicial titling or DENR confirmation.
  • Heirship disputes or unsettled estates.
  • Budget realignments causing lapsed SAROs/NCAs.
  • Audit suspensions due to missing proofs of ownership or tax clearances.
  • Pending expropriation cases—payment is stayed until court valuation attains finality.

5. Administrative Avenue: Step-by-Step

Stage What claimant must do Where
1. Letter-Request Address to the Regional Director, DPWH IV-A citing project name, lot number, area, date of entry, unpaid amount. Regional Office
2. Documentary Package • TCT/OCT or DENR Certification if untitled
• Latest tax declaration & tax clearance
• SPA/Extrajudicial Settlement (if heirs)
• ID pictures, sketch plan, photos of improvements
• Sworn computation of damages (crops, structures) DEO → RROW-TF
3. Verification & Appraisal DPWH/Land Bank or independent appraiser inspects & pegs Current FMV (Sec. 7, IRR). On-site
4. Negotiation Conference Owner may accept offer via Deed of Sale & Quitclaim; otherwise proceeds to expropriation. DEO/Regional
5. Processing of Payment RROW-TF endorses to Central Office-ROW Task Force → Budget Division → Cashier; payment through Land Bank Managers’ Check. Manila → Calamba
6. Release & Registration Owner signs Acknowledgment Receipt; DPWH registers Deed to transfer title to Republic. Registry of Deeds

Timeline target per D.O. 65-16: 90 days from complete submission to payment release.


6. If Administrative Route Stalls

  1. Money Claim before the COA

    • File verified petition (Sec. 4, Rule V, 2009 COA Rules).
    • Attach all DPWH endorsements, proof of taking, valuation reports.
    • COA may award, reduce, or deny; decision appealable to SC via Rule 64.
  2. Judicial Action for Just Compensation

    • Case: Republic v. Cagunlei (G.R. 24711, 24 Jan 2022) – courts may fix value higher than zonal value if evidence supports.
    • Venue: RTC acting as Special Agrarian Court in province where land lies.
    • Prescription: Action must be filed within 10 years from actual taking (Art. 1145 Civil Code). For takings before 2011, laches not prescription is the usual defence.
    • Interest: Courts routinely impose 6 % p.a. from taking until full payment (NPC v. Heirs of Sangkay, G.R. 175176, 19 Oct 2021).
  3. Petition for Mandamus

    • Where DPWH has made final valuation & approved funding but refuses to release, owner may sue to compel ministerial payment.

7. Valuation Principles

Basis Statute / Doctrine Notes
Market Value (MV) Art. 1256 Civil Code; Export Processing Zone v. Dulay (149 SCRA 305) MV at date of taking, free from effects of project.
BIR Zonal Value R.A. 10752, Sec. 5 Floor—not ceiling—of DPWH’s initial offer.
Replacement Cost Sec. 3(j), IRR New construction cost less depreciation; no salvage deduction for crops.
Disturbance Compensation Rule VI, IRR ≤ 10 % of MV for tenants & occupants.

8. Tax & Fee Treatment

  • Capital Gains Tax & DST on Deed of Sale exempt (R.A. 10752, Sec. 10).
  • Transfer fees (RD, LGU) chargeable to DPWH.
  • Owner pays documentary stamp only if the land is donated.

9. Special Scenarios

Situation Added Requirement / Remedy
Accelerated Widening (road already paved) Photographs and barangay certification that road existed before taking.
Ancestral Domain NCIP Free & Prior Informed Consent compliance; Certificate of Ancestral Domain Title (CADT).
Agrarian Reform Beneficiaries DAR clearance; payment subject to CARP lien release.
No title (tax-declared) Court-sanctioned deposit of compensation in favour of “Unknown Owners”; subsequent claim allowed with proof.
Informal Settler Families (ISFs) Entitlement to Resettlement or Financial Assistance under R.A. 10752 Sec. 8 & Socialized Housing Rules.

10. Practical Tips for Claimants

  1. File early – interest stops accruing once DPWH makes valid tender.
  2. Insist on separate valuation for improvements—often overlooked.
  3. Secure a COA endorsement concurrently; COA rulings bind DPWH accountants.
  4. Monitor SARO/NCA issuance in DBM website; lapsed allotments must be revalidated.
  5. Keep field photos with geotags; courts give weight to contemporaneous evidence of taking.
  6. When heirs are many, execute One-Time SPA naming a single attorney-in-fact to avoid repetitive notarisation costs.

11. Recent Jurisprudence Snapshot (relevant to Region IV-A)

Case G.R. No. Ratio
DPWH v. Bañaga (Cavite) 252176, 01 Feb 2024 DPWH cannot plead lack of funds; constitutional duty is non-negotiable.
Republic v. Suntrust (Tagaytay) 245998, 07 Nov 2023 Just compensation pegged at fair market value, BIR zonal is only guide.
Heirs of de la Cruz v. DPWH (SLEX TR4, Laguna) 256702, 18 Mar 2025 Interest of 6 % applies even when owner delayed filing due to ongoing negotiation, absent waiver.

12. Checklist of Core Documents

Ownership Tax/Financial ROW-Specific
TCT/OCT or ancestral domain proofs Tax dec., Barangay tax clearance Accomplished ROW Claim Form (DPWH-R-IV-A No. 01)
SPA/Estate settlement BIR Certification of zonal value Approved plan & lot data sheet (LMB/RED)
IDs, community tax cert. Landbank enrolment form Photos of improvements w/ timestamp

13. Timeline & Prescription Matrix

Date of Taking Action Last Day to Sue for Compensation*
≤ June 30 2015 File court action (Rule 67) June 30 2025 (10-year rule)
July 1 2015 – today Negotiate per R.A. 10752 then, if needed, expropriate 10 yrs from actual entry date
If owner merely seeks release of money already adjudged, Mandamus No strict prescriptive period; laches applies

*Prescription suspended while formal negotiation is ongoing (SC in Republic v. Mupas, Apr 2021).


14. Common Pitfalls & How to Avoid Them

Pitfall Counter-measure
Submitting photocopies of title Present owner’s duplicate and certified copy to Registrar for verification.
Unpaid real-property taxes Settle before submission; arrears can be deducted from compensation.
Multiple heirs filing separately Consolidate via SPA to prevent double payment red-flags.
Relying solely on assessor’s value Commission your own appraisal to challenge undervaluation.
Missing property index maps Request from DENR NAMRIA or LGU Engineering Office early.

15. Flowchart Summary (textual)

  1. Owner files claim ➜ 2. DPWH verifies & appraises ➜ 3a. Deed of sale signed → payment OR 3b. Disagreement → RTC expropriation ➜ 4. Judgment → COA approval → release.

16. Conclusion

Claiming unpaid right-of-way compensation in DPWH Region IV-A combines constitutional guarantees, statutory entitlements, and rigorous administrative audit. Success hinges on (a) complete, credible documentation; (b) awareness of procedural timelines; and (c) readiness to escalate—from negotiation, to COA, to the courts—while interest ticks in the owner’s favour. When strategically navigated, the process culminates in full, lawful payment and an updated public title—achieving both public infrastructure delivery and private justice.


Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.