Rights in Land Expropriation by the Department of Public Works and Highways (DPWH) in the Philippines

Introduction

In the Philippines, the power of eminent domain—also known as expropriation—allows the government to acquire private property for public use, provided that just compensation is paid to the owner. This power is inherent to the state's sovereignty and is exercised to advance public welfare, such as in infrastructure development. The Department of Public Works and Highways (DPWH), as the primary agency responsible for national infrastructure projects like roads, bridges, highways, and flood control systems, frequently invokes this power to secure rights-of-way (ROW) for its initiatives.

Expropriation by DPWH must balance the government's need for efficient project implementation with the constitutional and statutory rights of property owners. This article comprehensively explores the legal framework, procedures, rights of affected parties, determination of just compensation, and remedies available in cases of land expropriation by DPWH. It draws from the 1987 Philippine Constitution, relevant statutes like Republic Act (RA) No. 10752 (The Right-of-Way Act of 2016), the Civil Code, and established jurisprudence from the Supreme Court of the Philippines.

Legal Basis for Expropriation

Constitutional Foundation

The 1987 Constitution provides the bedrock for eminent domain. Article III, Section 9 states: "Private property shall not be taken for public use without just compensation." This provision ensures that expropriation is not arbitrary and protects property owners from undue deprivation. Additionally, Article XII, Section 18 allows the state to acquire private lands for agrarian reform or other public purposes, reinforcing the public use requirement.

Expropriation must satisfy two essential requisites:

Public Use or Purpose: The taking must benefit the public, such as infrastructure that promotes economic development or public safety. DPWH projects, like national highways, inherently qualify as public use.
Just Compensation: Payment must reflect the fair market value of the property at the time of taking, including any consequential damages or benefits.

Statutory Framework

Republic Act No. 10752 (The Right-of-Way Act of 2016): This is the primary law governing ROW acquisition for national government projects, including those by DPWH. It streamlines the process to reduce delays in infrastructure development while safeguarding owners' rights. Key features include modes of acquisition (negotiated sale or expropriation), standards for just compensation, and relocation assistance for affected informal settlers.
Republic Act No. 8974 (2000): The precursor to RA 10752, it facilitated ROW acquisition but was amended by RA 10752 to address inefficiencies and enhance protections.
Civil Code of the Philippines (RA No. 386): Articles 435–437 outline the general principles of eminent domain, emphasizing that property can only be taken for public utility upon payment of just compensation.
Local Government Code (RA No. 7160): While DPWH handles national projects, local governments may assist in ROW acquisition for complementary local infrastructure.
Other Related Laws: Executive Order No. 1035 (1985) provides procedures for government acquisition of private property, and RA No. 7279 (Urban Development and Housing Act) addresses relocation for informal settlers displaced by expropriation.

DPWH's authority stems from its mandate under Executive Order No. 124 (1987), which designates it as the engineering and construction arm of the government for public works.

Role of DPWH in Expropriation

DPWH initiates expropriation when private land is needed for projects under the Medium-Term Philippine Development Plan or specific infrastructure programs like the Build-Build-Build (now Build Better More) initiative. The process begins with project planning, where DPWH identifies required ROW through surveys and parcellary plans.

DPWH prefers negotiated sales to avoid litigation but resorts to expropriation if negotiations fail. It coordinates with other agencies, such as the Department of Environment and Natural Resources (DENR) for titled lands or the Department of Agrarian Reform (DAR) if agricultural lands are involved.

Rights of Property Owners

Property owners have robust rights under Philippine law to prevent abuse of eminent domain. These include:

Right to Due Process: Owners must receive notice of the intent to acquire their property. Under RA 10752, DPWH must send a written offer via registered mail or personal delivery, detailing the project's purpose, affected area, and offered compensation.
Right to Just Compensation: Compensation must be "just," meaning it covers:
- The fair market value (FMV) of the land.
- Improvements (e.g., buildings, crops).
- Consequential damages (e.g., loss to remaining property).
- Interest at the legal rate (6% per annum) from the time of taking until full payment.
FMV is determined based on current tax declarations, zonal valuations from the Bureau of Internal Revenue (BIR), or appraisals by independent assessors.
Right to Negotiate: Owners can counteroffer during negotiations. If accepted, a Deed of Absolute Sale is executed, and payment is made within 30 days.
Right to Relocation and Assistance: For residential owners or informal settlers, RA 10752 mandates relocation sites with basic services. Business owners may receive disturbance compensation equivalent to net income for up to six months.
Right to Challenge the Taking: Owners can contest the public purpose, necessity, or compensation amount in court. Expropriation is not allowed if the property is already devoted to a public use or if there's a less intrusive alternative.
Right to Immediate Possession by Government: Upon filing the expropriation complaint and depositing 100% of the zonal value (or 15% for agrarian lands), DPWH can take immediate possession via a writ of possession. However, owners retain the right to withdraw the deposit without waiving defenses.
Special Protections:
- Agricultural Lands: Under the Comprehensive Agrarian Reform Law (RA No. 6657, as amended), expropriation requires DAR clearance and prioritizes farmer-tenants' rights.
- Indigenous Lands: Ancestral domains under the Indigenous Peoples' Rights Act (RA No. 8371) require free, prior, and informed consent (FPIC) from indigenous communities.
- Environmental Considerations: Projects must comply with the Environmental Impact Assessment (EIA) system under Presidential Decree No. 1586.

Procedure for Expropriation

The process under RA 10752 is divided into modes:

Mode 1: Negotiated Sale

DPWH offers to buy based on BIR zonal value or tax declaration.
If no agreement within 30 days, proceed to expropriation.

Mode 2: Expropriation

Filing of Complaint: DPWH files an expropriation case in the Regional Trial Court (RTC) where the property is located, with the Solicitor General representing the government.
Deposit and Writ of Possession: Court issues a writ after deposit, allowing DPWH to enter the property.
Determination of Just Compensation: Court appoints commissioners (one from government, one from owner, one neutral) to assess value. The court decides based on evidence, including market data and expert testimony.
Payment and Transfer: Upon final judgment, full payment is made, and title transfers to the government.
Appeal: Either party can appeal to the Court of Appeals and Supreme Court.

The entire process aims to be expedient, with RA 10752 imposing timelines to prevent delays.

Determination of Just Compensation

Just compensation is judicially determined if negotiations fail. Key principles from jurisprudence:

Fair Market Value: The price a willing buyer would pay a willing seller (Republic v. Vda. de Castellvi, G.R. No. L-20620, 1979).
Factors Considered: Location, size, improvements, potential use, and comparable sales.
Consequential Damages/Benefits: Deduct benefits (e.g., increased value of remaining land) from damages.
Interest: 12% per annum on the balance if payment is delayed (pre-2013 cases used 12%; now 6% under BSP Circular No. 799).
Taxes: Capital gains tax and documentary stamp tax are borne by the government under RA 10752.

In cases like DPWH v. Spouses Tek (G.R. No. 203735, 2016), the Supreme Court emphasized that compensation must be based on value at the time of taking, not filing.

Remedies and Challenges for Property Owners

Owners can:

File a motion to dismiss the expropriation complaint if requisites are unmet.
Seek annulment of the writ of possession if the deposit is insufficient.
Claim higher compensation through counterclaims or separate actions for inverse condemnation if property is taken without proceedings.
Pursue administrative remedies, like complaints with the DPWH or Ombudsman for irregularities.
In extreme cases, file for certiorari if there's grave abuse of discretion.

Common challenges include undervaluation, delays in payment, and displacement without adequate relocation. Jurisprudence, such as City of Manila v. Chinese Community (G.R. No. L-14355, 1919), invalidates takings without genuine public necessity.

Case Law Highlights

Manosca v. Court of Appeals (G.R. No. 106440, 1994): Expanded "public use" to include historical preservation.
NPC v. Court of Appeals (G.R. No. 113194, 2000): Affirmed that just compensation includes interest from taking.
Secretary of DPWH v. Spouses Tecson (G.R. No. 179334, 2015): Clarified that zonal values are not conclusive but evidentiary.
Forfom Development Corp. v. Philippine National Railways (G.R. No. 124795, 2008): Stressed the need for actual public purpose over speculative ones.

Challenges and Reforms

Expropriation by DPWH often faces delays due to litigation, overlapping claims, or resistance from owners. RA 10752 addressed this by allowing partial payments and expedited court processes. However, issues persist with informal settlers and environmental impacts.

In practice, DPWH has implemented guidelines like Department Order No. 34 (2017) for ROW acquisition, emphasizing transparency and stakeholder consultation.

Conclusion

Land expropriation by DPWH exemplifies the tension between public infrastructure needs and private property rights in the Philippines. While the government holds the power of eminent domain, it is circumscribed by constitutional safeguards, statutory procedures, and judicial oversight to ensure fairness. Property owners are entitled to due process, just compensation, and remedies against abuse. Understanding these rights empowers affected individuals to engage effectively in the process, contributing to equitable development. For specific cases, consulting legal experts or relevant government agencies is advisable.

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