Guidelines in determining just compensation

In the case of Spouses Mercado v. Landbank,[1] the Supreme Court reminded the RTC to observe the following guidelines for the proper determination of just compensation

(1) Just compensation must be valued at the time of taking of the property expropriated, or the time when the owner was deprived of the use and benefit of his property;[2](2) Interest may be awarded as may be warranted by the circumstances of the case;[3] and

(3) Just compensation must be arrived at pursuant to the guidelines set forth in Section 17 of RA 6657 and outlined in a formula provided in DAR A.O. No. 5. If the RTC finds these guidelines inapplicable, it must clearly explain the reasons for deviating therefrom and for using other factors or formula in, arriving at the reasonable just compensation for the property expropriated.[4]

[1] G.R. No. 196707, June 17, 2015.

[2] Department of Agrarian Reform v. Spouses Diosdado Sta. Romana and Resurreccion O. Ramos.

[3] Id.

[4] Land Bank of the Philippines v. Yatco Agricultural Enterprises, supra note 44 at 382-383.

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