Supreme Court affirms CA ruling on road lot

CEBU, Philippines - The Supreme Court denied the Cebu City government’s petition seeking to nullify the Court of Appeals’ ruling which ordered the city to pay 12 percent legal interest per annum on an unpaid balance for a road lot purchased in 1993.

Court records showed that the city already paid P20.8 million as just compensation for the two parcels of lot owned by spouses Apolonio and Blasa Dedamo which was used as an access road leading to the Cebu Business Park.

It was learned that on September 17, 1993 the city filed a civil case before the Regional Trial Court (RTC) for eminent domain over Dedamo’s property and immediately took possession of the two lots after depositing P51,156 with the bank.

The court-appointed panel of commissioners, which included a representative of the city, later recommended P20,826,339 as just compensation for the lot.

The court did not specify in its decision that the city is obliged to pay interest to the lot owner prompting the Dedamo couple to elevate the matter to the Court of Appeals.

According to the Appellate Court, the city is only obliged to pay 12 percent legal interest of the unpaid balance from the time the decision awarding just compensation became final and executory on September 20, 2002 until it was fully paid on December 23, 2003.

The Court of Appeals denied the lot owner’s manifestation and motion to order the city to pay the 12 percent legal interest of the unpaid balance to be computed from the time of actual taking of the property up to the date of payment of the just compensation.

The Supreme Court affirmed the Appellate Court’s decision.  (FREEMAN)