Just Compensation Is Not a Number

When the government takes private property for public use, the Constitution makes a simple promise: just compensation.

Yet in practice, this promise is often reduced to a single, impoverished question—how much?

That question, while important, is incomplete. It explains why disputes over expropriation persist despite decades of jurisprudence. Courts decide cases, agencies follow formulas, appraisers submit reports, and landowners still feel shortchanged. Everyone speaks the language of numbers, but few speak the language of justice.

The problem is not that the law is unclear.
The problem is that just compensation has been mistaken for a price tag.

Why the Debate Never Ends

On paper, the right is settled. The Constitution is clear. The Supreme Court has spoken repeatedly. Yet expropriation cases continue to clog dockets, stall projects, and breed resentment.

Why?

Because valuation is treated as a technical exercise, while justice is treated as a legal conclusion—as if the two were separate worlds.

They are not.

Compensation becomes unjust not only when the amount is wrong, but when payment is delayed, or when valuation is asserted without credible proof. Fairness collapses when any of these failures occur, even if the number looks reasonable on paper.

What is missing is a unifying way of thinking about fairness.

The Forgotten Idea Behind Just Compensation

Long before modern constitutions, the law already understood something essential: when property is taken without consent, the owner must be restored—as nearly as possible—to the position he or she occupied before the taking.

This idea is known as equivalence.

Equivalence does not demand generosity. It demands balance. What is taken must be matched by what is given. Not symbolically, not administratively, but in reality.

Philippine jurisprudence has always carried this idea. Early decisions described compensation as “real, substantial, full, and ample.” Later cases insisted that valuation is a judicial function precisely because courts exist to measure fairness, not convenience.

Yet over time, equivalence became fragmented—broken into separate discussions about market value, interest, valuation dates, and evidence—without ever being named as a single, coherent standard.

Just Compensation Has Three Dimensions

When we read Philippine jurisprudence as a whole, a clear pattern emerges. Just compensation is never assessed along a single axis. It is measured across three inseparable dimensions.

First: Value

Compensation must reflect the real economic value of what was taken.

This does not mean whatever appears on a tax declaration or a zonal valuation table. Those may guide, but they do not decide. What matters is whether the amount truly replaces what the owner lost—whether in market terms or, in some cases, replacement terms.

If the amount cannot restore the owner’s economic position, the taking becomes lawful in form but confiscatory in effect.

Second: Time

Value is not frozen. It decays.

Compensation paid years after a taking—no matter how accurate in theory—arrives diminished. This is why courts have repeatedly treated delay itself as a constitutional injury, and interest not as a penalty, but as a means of restoration.

Prompt payment is not a courtesy. It is part of justice.

Without it, even correct valuation fails equivalence.

Third: Proof

Fairness cannot rest on authority alone.

Valuation must be shown, not merely stated. It must be transparent, verifiable, and capable of surviving cross-examination. This is why courts insist that just compensation is a judicial function: only courts are institutionally equipped to test evidence, expose assumptions, and correct imbalance.

Without credible proof, numbers are just assertions wearing technical language.

Why One Dimension Is Never Enough

These three dimensions—value, time, and proof—are cumulative, not optional.

A fair amount paid too late is unjust.
A prompt payment of an undervalued amount is unjust.
A correct and timely payment based on weak evidence is unjust.

Equivalence fails if any one dimension fails.

This is not a new doctrine. It is the logic already embedded in constitutional jurisprudence, made explicit.

What This Changes

When we stop asking only “How much?” and start asking “Is it equivalent?”, several things change immediately.

Judges gain a disciplined way to evaluate valuation evidence without becoming appraisers.
Appraisers learn how to present authority without overstepping judicial power.
Lawyers argue fairness, not just figures.
Agencies understand that budgeting for expropriation is budgeting for constitutional compliance.
Landowners gain a simple test for justice.

That test is straightforward:

  1. Was the value fair?
  2. Was the payment timely?
  3. Was the valuation proven transparently?

If any answer is no, compensation is not just.

From Numbers to Constitutional Integrity

Just compensation is not about generosity.
It is not about speed.
It is not about administrative ease.

It is about equivalence—the constitutional act of restoring what the State has taken.

When equivalence is respected, expropriation becomes legitimate governance.
When it is ignored, even lawful takings lose their moral authority.

Justice, in the end, is not measured by how much was paid—but by whether what was taken was truly replaced.

The Price of Fairness: Rethinking Just Compensation in Philippine Expropriation Law

When government takes private property for public use, the Constitution guarantees one thing: just compensation.
But what exactly is “just”?

In Philippine jurisprudence, this question has sparked more than a century of debate. From the early 1900s to today’s agrarian and infrastructure cases, the Supreme Court has wrestled with one timeless principle — that fairness means equivalence.

From Payment to Parity

The power of eminent domain is one of the most profound expressions of state authority. It allows the government to acquire land for public welfare — roads, bridges, and social reform. Yet this power is tempered by an equally powerful right: that property owners must be made whole.

This idea is rooted not in economics alone, but in law and philosophy.
Roman jurists called it restitutio in integrum — restoring a person to their original condition. Over centuries, this became the principle of equivalence, the legal duty to return an equal value for what was taken.

In 1915, the Philippine Supreme Court expressed this in Manila Railroad Co. v. Velasquez:

“Compensation means an equivalent for the value of the property taken… it must be real, substantial, full, and ample.”

Those words have guided generations of expropriation cases — from the distribution of farmlands to the construction of expressways.

The Three Dimensions of Fairness

My research, titled “Restoring the Whole: Just Compensation in Philippine Agrarian and Right-of-Way Law ” shows how the Supreme Court has built an evolving framework for justice in takings. It rests on three interconnected dimensions:

1. Economic Equivalence

The amount must equal the true market or replacement value of the property.
In Republic v. Vda. de Castellvi (1974) and Pasay v. Arellano University (2025), the Court held that assessor’s values or zonal prices are not controlling — only credible, market-based evidence counts.

2. Temporal Equivalence

Justice delayed is value denied.
In Apo Fruits v. Land Bank (2010), the Court ruled that prompt payment is an element of just compensation. If payment is delayed, interest becomes a constitutional right, not a mere penalty.

3. Evidentiary Equivalence

Fairness requires truth.
Courts demand credible proof — not presumptions or formulas — to ensure that compensation reflects real economic conditions. As Mandaue Realty (1996) declared, valuation “cannot rest on speculation or administrative fiat.”

Together, these dimensions form the doctrine I call Judicial Equivalence:
the judiciary’s active role in ensuring that the owner’s loss equals the State’s gain.

Why This Matters

At stake is not merely money, but trust in justice.
When land is taken for reform or progress, owners must see that the law gives back its full worth. Otherwise, expropriation becomes confiscation by another name.

The Supreme Court’s modern rulings — from Small Landowners (1989) to Pasay v. Arellano (2025) — show a growing recognition that just compensation is a constitutional act of restoration, not a fiscal transaction. It ensures that progress does not trample property rights, and that social justice remains anchored in fairness.

Toward a Fairer Future

To strengthen this balance, the study proposes three reforms:

  1. Codify judicial standards into a single Expropriation Code reflecting modern jurisprudence.
  2. Create a registry of court-accredited appraisers to enhance valuation integrity.
  3. Integrate law and valuation education — because justice and economics should speak the same language.

The law must remember that fairness has a price — and that price is equivalence.
When the State takes, it must also give — fully, promptly, and truthfully.

Legal Consequences of Practicing Beyond Professional Scope

Public trust and professional integrity are safeguarded through strict regulations governing the practice of various professions. These laws not only define the scope of each profession but also impose penalties on individuals who operate beyond their authorized expertise or practice without proper credentials. Such provisions ensure that only qualified professionals render services, protecting the public from unqualified practitioners.

For real estate practitioners, the Real Estate Service Act (RA 9646) serves as the primary regulatory framework. Individuals who practice real estate services without a valid license or perform tasks outside their professional scope face severe penalties. These include fines ranging from ₱100,000 to ₱5,000,000 and/or imprisonment of two to four years. This law underscores the importance of licensing in real estate services, ensuring that only accredited professionals appraise properties and guide clients through transactions.

In the field of agriculture and engineering, the Agricultural and Biosystems Engineering Act (RA 10915) regulates the work of agricultural and biosystems engineers (ABEs). Unauthorized practice under this law can lead to penalties of ₱100,000 to ₱500,000 or imprisonment of six months to five years, or both. This highlights the critical role ABEs play in ensuring the safe and efficient development of agricultural systems and infrastructure.

Similarly, the Philippine Mechanical Engineering Act (RA 8495) protects the mechanical engineering profession from unauthorized practice. Violators face fines between ₱50,000 and ₱200,000 or imprisonment of six months to six years, or both. Mechanical engineers handle critical tasks such as designing industrial machinery and evaluating technical systems, which require specialized skills.

For architects, the Architecture Act (RA 9266) prescribes fines ranging from ₱100,000 to ₱5,000,000 or imprisonment of six months to six years for practicing without proper licensure or exceeding the defined scope. The same is true for electrical engineers under the Electrical Engineering Law (RA 7920), which penalizes violations with fines of ₱10,000 to ₱50,000 or imprisonment of six months to five years or both.

These penal provisions serve as a warning to professionals and non-professionals alike. Practicing outside the bounds of expertise and licensure can have serious legal consequences. The overlapping and specialized nature of modern industries—such as real estate, engineering, and agriculture—demands that professionals adhere strictly to their defined roles. Collaboration among experts in their respective fields ensures comprehensive and credible outcomes without compromising public welfare.

By staying within the bounds of their profession, licensed practitioners not only avoid hefty fines and imprisonment but also contribute to upholding the credibility and standards of their industry. For the public, these laws provide assurance that they are engaging with qualified professionals, fostering trust and confidence in professional services across sectors.

On BBM’s Right of Way Policy Proposition

President BBM’s recent proposition to return to a previous system for handling right of way issues, where the government would pay only 15 percent of the property value upfront and resolve any subsequent valuation disputes in court, has significant implications not only for landowners but also for the general public.

Key infrastructure flagship projects currently facing right of way (ROW) issues include the Cagayan de Oro Diversion Road Extension, the Davao City Bypass Construction Project, the Samal Island-Davao City Connector Bridge, the Light Rail Transit-1 Cavite Extension Project, and the EDSA Greenways Project.

One of the primary motivations behind President BBM’s proposal is to expedite infrastructure projects. Projects could proceed without delay by taking possession of the property with an initial 15 percent payment and allowing valuation disputes to be settled later. This could lead to quicker completion of essential infrastructure such as roads, bridges, and public utilities, benefiting the public by improving transportation, connectivity, and access to services.

However, this expedited process might come at a cost. The reliance on courts to resolve valuation disputes can increase the judicial system’s burden, potentially causing delays in other legal proceedings. Additionally, the cost of prolonged litigation could ultimately be borne by taxpayers, increasing public expenditure.

The public perception of the government’s commitment to fair and just practices could be affected. If the policy unfairly favors infrastructure development at the expense of property owners’ rights, it could lead to public dissent and erode trust in government institutions. Ensuring a transparent and fair process is crucial for maintaining public confidence.

Efficient and timely infrastructure development can have positive economic impacts, such as stimulating investment, creating jobs, and boosting economic growth. Improved infrastructure enhances the overall business environment, making it easier for companies to operate and expand. However, if the process is perceived as unjust, it might deter investment, particularly in real estate and property development sectors, due to concerns about property rights and fair compensation.

The rapid acquisition of property for infrastructure projects can lead to community displacement. This has social implications, as displaced families and communities may face significant challenges in finding new homes, jobs, and adjusting to new environments. Ensuring that displaced individuals are adequately compensated and supported through the transition is essential to mitigate these impacts.

A system that prioritizes quick project completion over fair compensation may disproportionately affect vulnerable populations. Lower initial compensation could exacerbate the financial instability of low-income families and marginalized communities. Ensuring equitable treatment for all property owners, regardless of their socio-economic status, is critical for social justice.

Therefore, President BBM’s proposal to modify the right-of-way process has the potential to accelerate infrastructure development, benefiting the public through improved services and economic growth. However, it also raises significant concerns about legal and financial burdens, public trust, social impacts, and equity. A balanced approach that maintains fairness, transparency, and support for affected individuals is essential to ensure that the benefits of infrastructure projects are realized without compromising the rights and welfare of property owners and the broader community.