JESUS IS LORD CHRISTIAN SCHOOL FOUNDATION, INC. (JILCSFI) vs.

MUNICIPALITY (now CITY) OF PASIG, METRO MANILA

Facts: The Municipality of Pasig needed an access road, it was planned to pass through where 60 to 70
houses, mostly made of light materials, were located. The property bought by JILCSFI from the Ching-
Cuanco family was one of those whose portion will be taken for the road.
JILCSFI allegedly bought the property 2 months before the SB of Pasig issued an ordinance
authorizing the municipal mayor to initiate expropriation proceedings to acquire the said property and
appropriate the fund therefor. The ordinance stated that the property owners were notified of the
municipality’s intent to purchase the property for public use as an access road but they rejected the offer.
The LGU filed the expropriation proceedings against the Ching-Cuanco family 5 months after
JILCSFI bought the property. The LGU also caused the annotation of a notice of lis pendens at the dorsal
portion of the TCT under the name of the JILCSFI which had purchased the property. The Ching-Cuanco’s
raised the defense that the land was already sold to JILCSFI. JILCSFI filed a motion to intervene upon
notice.
JILCSFI argues that no valid offer was made and that the property can no longer be expropriated
because it plans to make a place for public purposes (the construction of a place for religious worship and
a school for its members).
Issues:
1. Did the LGU comply with the requirement, under Section 19 of the Local Government Code, of a
valid and definite offer to acquire the property prior to the filing of the complaint?

2. Will the argument that the property is already intended to be used for public purposes be a defense
against expropriation?

3. Does the LGU have to comply with the requirement of road-of-way in the Civil Code?
Ruling:
1. No, the LGU failed to comply with the requirement of a valid and definite offer. (See also
Requisites for the valid exercise of the power of eminent domain by a local government unit)
The Supreme Court ruled that :
[T]he respondent failed to prove that before it filed its complaint, it made a written definite
and valid offer to acquire the property for public use as an access road. The only evidence adduced
by the LGU to prove its compliance with Section 19 of the Local Government Code is the
photocopy of the letter purportedly bearing the signature of Engr. Jose Reyes, to only one of the
co-owners, Lorenzo Ching Cuanco.
An offer is a unilateral proposition which one party makes to the other for the celebration
of a contract. It creates a power of acceptance permitting the offeree, by accepting the offer, to
transform the offeror’s promise into a contractual obligation. Corollarily, the offer must be
complete, indicating with sufficient clearness the kind of contract intended and definitely stating
the essential conditions of the proposed contract. An offer would require, among other things, a
clear certainty on both the object and the cause or consideration of the envisioned contract.

The LGU offered the letter only to prove its desire or intent to acquire the property for a
right-of-way. The document was not offered to prove that the respondent made a definite
and valid offer to acquire the property. Even if the letter was, indeed, received by the co-
owners, the letter is not a valid and definite offer to purchase a specific portion of the property
for a price certain. It is merely an invitation for only one of the co-owners, Lorenzo Ching
Cuanco, to a conference to discuss the project and the price that may be mutually
acceptable to both parties.
2. No. “We reject the contention of the petitioner that its property can no longer be expropriated by
the respondent because it is intended for the construction of a place for religious worship and a
school for its members.”

A historical research discloses the meaning of the term "public use" to be one of constant
growth. As society advances, its demands upon the individual increases and each demand is a
new use to which the resources of the individual may be devoted. … for "whatever is
beneficially employed for the community is a public use." (Seña v. Manila Railroad Co.)

Chief Justice Enrique M. Fernando states: The taking to be valid must be for public use.
There was a time when it was felt that a literal meaning should be attached to such a requirement.
Whatever project is undertaken must be for the public to enjoy, as in the case of streets or parks.
Otherwise, expropriation is not allowable. It is not so any more. As long as the purpose of the
taking is public, then the power of eminent domain comes into play. As just noted, the constitution
in at least two cases, to remove any doubt, determines what is public use. One is the expropriation
of lands to be subdivided into small lots for resale at cost to individuals. The other is the transfer,
through the exercise of this power, of utilities and other private enterprise to the government. It is
accurate to state then that at present whatever may be beneficially employed for the general welfare
satisfies the requirements of public use.

Chief Justice Fernando, writing the ponencia in J.M. Tuason & Co. vs. Land Tenure
Administration, has viewed the Constitution a dynamic instrument and one that "is not to be
construed narrowly or pedantically so as to enable it to meet adequately whatever problems the
future has in store." Fr. Joaquin Bernas, a noted constitutionalist himself, has aptly observed that
what, in fact, has ultimately emerged is a concept of public use which is just as broad as "public
welfare."

3. No, the LGU does not have to comply with the requirement of road-of-way under the Civil
Code.

The subject property is expropriated for the purpose of constructing a road. The respondent
is not mandated to comply with the essential requisites for an easement of right-of-way under the
New Civil Code. Case law has it that in the absence of legislative restriction, the grantee of
the power of eminent domain may determine the location and route of the land to be taken
unless such determination is capricious and wantonly injurious. Expropriation is justified so
long as it is for the public good and there is genuine necessity of public character. Government
may not capriciously choose what private property should be taken.

The LGU has demonstrated the necessity for constructing the access road. The witnesses,
who were residents of Sto. Tomas Bukid, testified that although there were other ways through
which one can enter the vicinity, no vehicle, however, especially fire trucks, could enter the area
except through the newly constructed Damayan Street. This is more than sufficient to establish
that there is a genuine necessity for the construction of a road in the area. After all, absolute
necessity is not required, only reasonable and practical necessity will suffice.

NONETHELESS, THE LGU FAILED TO SHOW THE NECESSITY FOR

CONSTRUCTING THE ROAD PARTICULARLY IN JILCSFI’S PROPERTY AND NOT
ELSEWHERE. We note that the whereas clause of the ordinance states that the 51-square meter
lot is the shortest and most suitable access road to connect Sto. Tomas Bukid to E. R. Santos Street.
The LGU’s complaint also alleged that the said portion of JILCSFI’s lot has been surveyed as the
best possible ingress and egress. However, the LGU failed to adduce a preponderance of evidence
to prove its claims.
 The trial court claimed to have made an ocular inspection to determine such necessity but
as correctly pointed out by JILCSFI, there is no showing in the record that an ocular inspection
was conducted during the trial. If, at all, the trial court conducted an ocular inspection of the subject
property during the trial, the petitioner was not notified thereof. The petitioner was, therefore,
deprived of its right to due process. It bears stressing that an ocular inspection is part of the trial
as evidence is thereby received and the parties are entitled to be present at any stage of the trial.
Consequently, where, as in this case, the petitioner was not notified of any ocular inspection of the
property, any factual finding of the court based on the said inspection has no probative weight.
The findings of the trial court based on the conduct of the ocular inspection must, therefore, be
rejected.

IN LIGHT OF ALL THE FOREGOING, the petition is GRANTED. The Decision and
Resolution of the Court of Appeals are REVERSED AND SET ASIDE. The RTC is ordered to
dismiss the complaint of the respondent without prejudice to the refiling thereof.
Eminent Domain: Nature and Scope
The right of eminent domain is usually understood to be an ultimate right of the sovereign power
to appropriate any property within its territorial sovereignty for a public purpose. The nature and scope of
such power has been comprehensively described as follows:
… It is an indispensable attribute of sovereignty; a power grounded in the primary duty of
government to serve the common need and advance the general welfare. Thus, the right of eminent domain
appertains to every independent government without the necessity for constitutional recognition. The
provisions found in modern constitutions of civilized countries relating to the taking of property for the
public use do not by implication grant the power to the government, but limit the power which would,
otherwise, be without limit. Thus, our own Constitution provides that "[p]rivate property shall not be taken
for public use without just compensation." Furthermore, the due process and equal protection clauses act
as additional safeguards against the arbitrary exercise of this governmental power

Strict Construction and Burden of Proof

The exercise of the right of eminent domain, whether directly by the State or by its authorized
agents, is necessarily in derogation of private rights. It is one of the harshest proceedings known to the
law. Consequently, when the sovereign delegates the power to a political unit or agency, a strict
construction will be given against the agency asserting the power. The authority to condemn is to be
strictly construed in favor of the owner and against the condemnor. When the power is granted, the
extent to which it may be exercised is limited to the express terms or clear implication of the statute in
which the grant is contained.
Corollarily, the respondent, which is the condemnor, has the burden of proving all the essentials
necessary to show the right of condemnation. It has the burden of proof to establish that it has complied
with all the requirements provided by law for the valid exercise of the power of eminent domain.
The grant of the power of eminent domain to local government units is grounded on Section 19 of R.A.
No. 7160
SEC. 19. Eminent Domain. – A local government unit may, through its chief executive and acting
pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose, or
welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant
to the provisions of the Constitution and pertinent laws; Provided, however, That the power of
eminent domain may not be exercised unless a valid and definite offer has been previously made
to the owner, and such offer was not accepted: Provided, further, That the local government unit
may immediately take possession of the property upon the filing of the expropriation proceedings
and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair market
value of the property based on the current tax declaration of the property to be expropriated:
Provided, finally, That the amount to be paid for the expropriated property shall be determined by
the proper court based on the fair market value at the time of the taking of the property.

Requisites for the valid exercise of the power of eminent domain by a local government
unit:
1. An ordinance is enacted by the local legislative council authorizing the local chief executive, in
behalf of the local government unit, to exercise the power of eminent domain or pursue
expropriation proceedings over a particular private property.
2. The power of eminent domain is exercised for public use, purpose or welfare, or for the benefit
of the poor and the landless.
3. There is payment of just compensation, as required under Section 9, Article III of the
Constitution, and other pertinent laws.
4. A valid and definite offer has been previously made to the owner of the property sought to be
expropriated, but said offer was not accepted.
 The purpose of the requirement of a valid and definite offer to be first made to the owner is
to encourage settlements and voluntary acquisition of property needed for public purposes in order
to avoid the expense and delay of a court action. The law is designed to give to the owner the
opportunity to sell his land without the expense and inconvenience of a protracted and expensive litigation.
This is a substantial right which should be protected in every instance. It encourages acquisition without
litigation and spares not only the landowner but also the condemnor, the expenses and delays of litigation.
It permits the landowner to receive full compensation, and the entity acquiring the property, immediate
use and enjoyment of the property. A reasonable offer in good faith, not merely perfunctory or pro forma
offer, to acquire the property for a reasonable price must be made to the owner or his privy. A single bona
fide offer that is rejected by the owner will suffice.
The expropriating authority is burdened to make known its definite and valid offer to all the owners
of the property. However, it has a right to rely on what appears in the certificate of title covering the land
to be expropriated. Hence, it is required to make its offer only to the registered owners of the property.
After all, it is well-settled that persons dealing with property covered by a Torrens certificate of title are
not required to go beyond what appears on its face.