Land Bank of the Philippines v. Del Moral Inc. G.R No. 187307 14 October 2020 Hernando, J.:

Land Bank of the Philippines v. Del Moral Inc.

G.R No. 187307 14 October 2020 

Hernando, J.:

Second Division:

 

Nature of the Action: This is a Petition challenging the Decision dated and Resolution of the Court of Appeals which affirmed the computation of just compensation by the Regional Trial Court sitting as a Special Agrarian Court (SAC).

Facts:

Del Moral's property was placed under the coverage of agrarian reform program. Land bank of the Philippines (LBP) informed Del Moral of the approval of its monetary in relation to the property placed under agrarian reform. However, Del Moral found the assigned valuation to be grossly inadequate and unreasonable low. Thus, it filed a petition for the proper determination of just compensation before the Regional Trial Court (RTC). It rendered decision computing the just compensation based on the recent fair market value of the property, instead of using the prevailing factors at the time of the taking. In addition, it awarded Del Moral P90 million as temperate damages and PhP10 million as nominal damages.

LBP and DAR moved for reconsiderations but were denied. Thus, prompted to appeal with the Court of Appeals. However, CA affirmed the RTC's computation for just compensation but reduced the award for temperate and nominal damages to P10 million and P1 million, respectively. 

Thus, LBP moved for reconsideration but the same was denied also. Hence, this petition.

Issue:

Whether the awards for temperate and nominal damages, as well as the legal interest imposed, are proper.

Ruling:

Yes. But only the award of temperate is proper. Likewise, legal interest can be imposed.

Regarding the award of temperate and nominal damages, we hold that temperate or moderate damages may be recovered if pecuniary loss has been suffered but the amount cannot be proved with certainty from the nature of the case. The trial and appellate courts found that Del Moral was unable to use productively the 102 hectares of its landholdings after it was deprived of its possession in 1972. With the passage of time, it is, however, impossible to determine Del Moral's losses with any certainty. Thus, considering the particular circumstances of this case, the award of P10 million as temperate damages is reasonable.

Although res judicata applies in this case, for the greater interest of justice, nominal damages of P1 million should be deleted as temperate and nominal damages are incompatible and thus, cannot be granted concurrently. We affirm the imposition of legal interest of six percent (6%) per annum from the time this judgment becomes final and executory until this judgment is wholly satisfied.