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NTC v. Bermuda Development Corp. - G.R. No. 214782 (Case Digest)

NTC v. Bermuda Development Corp. G.R. No. 214782 Case Digest

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66 views2 pages

NTC v. Bermuda Development Corp. - G.R. No. 214782 (Case Digest)

NTC v. Bermuda Development Corp. G.R. No. 214782 Case Digest

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Patrick Damaso
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208. NATIONAL TRANSMISSION CORPORATION v.

BERMUDA DEVELOPMENT
CORPORATION | G.R. No. 214782 | April 3, 2019

PONENTE: CAGUIOA, J
TRIGGER: Respondent filed a case for Unlawful Detainer against petitioner TransCo. MTC ruled in
favor of the respondent. The Supreme Court reversed and held that case filed by a landowner against
a public utility corporation, endowed with the power of eminent domain will not prosper.

DOCTRINE: It is well-settled that a case filed by a landowner for recovery of possession or ejectment
against a public utility corporation, endowed with the power of eminent domain, which has
occupied the land belonging to the former in the interest of public service without prior
acquisition of title thereto by negotiated purchase or expropriation proceedings, will not prosper.

ISSUE: WON the RTC erred in dismissing TransCo's appeal allegedly because it has become moot
and academic with the filing of the expropriation complaint involving the same property subject of the
unlawful detainer case.

CONTENTIONS: -
● Petitioner
○ TransCo takes the position that a case for recovery of possession or ejectment suit
against a public service corporation, endowed with the power of eminent domain, will
not prosper as there can only remain to the owner a right of just compensation.

● Respondent -

FACTS: RULING:

Parties: LOWER COURT RULING


○ RTC
● Petitioner: National Transmission ■ RTC, Branch 24 dismissed Petitioner
Corporation (TransCo) [TransCo's] appeal in the unlawful
detainer case for being "moot and
● Respondent: Bermuda Development academic"
Corporation (BDC)
○ CA
■ The CA dismissed TransCo's petition for
Root of the Case:
review.
● Respondent Bermuda Development ■ The CA reasoned out that it would be
Corporation (BDC) filed a case for circuitous for the CA to require TransCo
Unlawful Detainer against Petitioner to first vacate the subject property
TransCo with the MTC of Cabuyao. covered by Transfer Certificate of Title
● MTC ruled in favor of BDC and ordered No. T-258244 in view of the adverse
petitioner to vacate the subject lot and to judgment in the unlawful detainer case of
play plaintiff the amount of P10.3M as the Municipal Trial Court of Cabuyao
reasonable rental. (MTC), and then soon thereafter, restore
● Petitioner interposed an appeal before the it again in possession of the property on
RTC but while it was pending, respondent account of the writ of possession issued
BDC filed an Urgent Motion for Execution by the RTC, Branch 25, the court where
which was granted. the expropriation case is pending.
● Petitioner [TransCo] filed a Complaint for ● SC RULING
Expropriation of the property subject of ○ YES.
the Unlawful Detainer Case and an ○ It is well-settled that a case filed by a
Urgent Ex-Parte Motion for the Issuance landowner for recovery of possession or
of a Writ of Possession. ejectment against a public utility corporation,
endowed with the power of eminent domain,
which has occupied the land belonging to
the former in the interest of public service
without prior acquisition of title thereto by
negotiated purchase or expropriation
proceedings, will not prosper.

○ Any action to compel the public utility


corporation to vacate such property is
unavailing since the landowner is denied the
remedies of ejectment and injunction for
reasons of public policy and public necessity
as well as equitable estoppel.

○ Pursuant to Republic Act No. 9136 or the


Electric Power Industry Reform Act of 2001,
the National Transmission Corporation
(TransCo or TRANSCO), a government
agency, was created to assume the
electrical transmission functions of the
National Power Corporation and is vested
with the power of eminent domain subject to
the requirements of the Constitution and
existing laws.

○ The subsequent filing by TransCo of the


expropriation proceedings could not have
rendered the unlawful detainer case moot
and academic inasmuch as the MTC erred
in proceeding with the unlawful detainer
case and not dismissing it following the
prevailing jurisprudence.
EXTRA NOTES

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