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[CITY OF MANILA v. J. C. RUYMANN ET AL.](https://www.lawyerly.ph/juris/view/c1276?user=fbGU2WFpmaitMVEVGZ2lBVW5xZ2RVdz09)
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[ GR No. 24414, Jan 15, 1926 ]

CITY OF MANILA v. J. C. RUYMANN ET AL. +

DECISION

48 Phil. 611

[ G.R. No. 24414, January 15, 1926 ]

THE CITY OF MANILA, PLAINTIFF AND APPELLANT, VS. J. C. RUYMANN ET AL., DEFENDANTS AND APPELLANTS.

D E C I S I O N

OSTRAND, J.:

This action was originally brought by the City  of  Manila on March 26, 1914, for the expropriation  of the so called Hacienda de Pinugay,  embracing 3,043 hectares of land and situated in the municipality of Antipolo, Province of Rizal.

By authority of Act  No. 648 of the Philippine Commission,  the Civil Governor of the Philippine  Islands, on July 26, 1904, issued  Executive  Order No.  33  reserving some 90 square  miles of the watershed of the Mariquina river in the Province of Rizal for the protection of the water supply system of the City of Manila.  Before the issuance of said Executive  Order, the Philippine  Commission, on May  10, 1904, passed  Act  No. 1150 which among other things provided that "ordinances enacted  for the purpose of protecting the purity of the water  supply  of  Manila shall  apply to and be  enforced  over all territory within the drainage area of such water supply or  within one hundred  meters of any reservoir,  conduit, canal, aqueduct, or pumping station  used in connection with the city water service."

The Hacienda de Pinugay was then the property of the heirs of one Robert Wilson and was situated within the limits of the  reservation.   On November 3,  1908,  subsequent to the establishment of the  reservation,  the defendants  J. C.  Ruymann  and H.  G. Farris  bought the hacienda from Wilson's widow, the value of the consideration,  consisting partly in Manila real estate,  being worth over  P18,000  according to the defendants' estimate; the plaintiff places the value at P8,678.

On August 17, 1911, the City of Manila, by virtue of its charter and under the provisions of Act No. 1150, passed Ordinance No. 149 prescribing regulations for the prevention of the  contamination  of the Miriquina river and its tributary streams.  The enforcement of the  regulations was carried out partly by the Constabulary and partly by reservation  guards appointed by the city and, in course of time, led to friction  with the defendants' tenants some of whom were arrested for bathing in the streams.  The defendants complained that by  reason  of the trespasses and  interference of the agents of the city, their tenants were frightened away from the hacienda and, on February 17, 1914, an  action  was brought  in  the Court  of  First Instance of Manila in which the herein defendants asked for a writ of  injunction against  the city and for  damages in the sum of P100,000.   In its  decision of the case  that court, Judge Crossfield presiding, said among other things:
"The City of Manila undoubtedly is endeavoring to  protect its citizens against the use  of impure water, and its action in  that  regard should not meet with  objection, but in order to do so within its rights, it should exercise the right of eminent domain which it may have over the  land in question, even though beyond its geographical limits.

*       *       *      *      *      *      *      *

"While the  defendant is not warranted in trespassing upon plaintiffs' lands and preventing plaintiffs from the ordinary  use  and control  of  them, yet for the  purposes hereinbefore  stated,  there  may  be some justification  in what it has done, though such justification will  cease  to exist unless defendant should promptly proceed  to exercise any  power which it  may have in  order to  carry out the purposes  referred to.

"I am of the opinion that there  is no question but that the plaintiffs are entitled to have defendant restrained from trespassing upon  their premises,  or performing any act which shall prevent  them from  the ordinary exercise  of care and custody over their property.  I am also of the opinion that an opportunity should be given  the defendant to take the necessary steps looking to obtain the possession and control over the lands  in question by legal  procedure.

"Let judgment be entered  restraining  the defendant from,  through its  officers, agents, or employees, or any other person in its behalf, entering upon the land herein-before described  according to the plan thereof,  as appears from  the map marked 13, attached to the record herein, or from interfering in any way with plaintiffs' entry thereupon  through themselves or their agents or tenants or employees, or from in any way interfering with the use and occupation by the plaintiffs of the land in question, within the ordinary, reasonable limits of rightful use and occupation for  agricultural or other purposes to which the  lands are adapted.

"The judgment thus ordered will not be executed before the 25th day of March, 1914; and not then, if in the meantime the defendant shall have taken the proper legal steps to exercise  its right  and control over the land described by purchase thereof or by the exercise of the right of eminent  domain."
No appeal was  taken from this decision and upon  the expiration of the term fixed  therein the city instituted the present action for the expropriation of the hacienda.  The defendants  filed their answer and the  court ordered  the deposit  by the plaintiff  of  the sum  of P13,090, the assessed value of the land, to enable the plaintiff to take immediate possession  of  property.  The money was duly deposited by the plaintiff, who nevertheless now maintains that it never took  actual possession of the land.  As we shall presently see, this court has already decided that the plaintiff  did take possession and the plaintiff's contention in that respect need,  therefore, not be here considered.

On  February 24,  1915,  the  Governor-General  issued Executive Order No. 33  modifying the boundary lines of the reservation so  as to  exclude therefrom the Hacienda de  Pinugay.  As a consequence thereof, the  plaintiff presented a motion  for the dismissal  of the  expropriation proceedings and, on April 27, 1915, the Court of  First Instance issued an order dismissing the case upon  payment of the costs of suit and of the fees of  the commissioners of  valuation, without prejudice to the defendants' right to bring another action for damages.   The plaintiff paid the bill of costs and the fees of the  commissioners and, on July 21, 1915,  the  court declared  the case  definitely dismissed.  From that order the defendants appealed to this court.

In its decision upon appeal, this  court said among other things:
"This appeal presents three questions of law.  They are: (1) May the petitioner, in an action of expropriation, after t he has been placed in possession of  the property and before the termination of  the action, dismiss his  petition?  (2) In case said action  is  dismissed,  may the  defendant  recover damages growing out of the action and said possession of the plaintiff? and  (3)  May said damages be ascertained as  an incident in the principal action, or must the defendant  submit  to the  dismissal of the  action and commence an independent action for damages?

"Upon the second question, whether or not the defendant should be entitled to damages, if any had been occasioned by  the abandonment of the  proceedings by the plaintiff, must, we think, depend upon the question whether or not  any damages had been caused.  Upon  that question, whether damages may at all be recovered in cases  like the present,  the authorities  are  again in great  conflict.  A careful examination  of  the decisions upon  that question, we think, will show that the result has been due to the fact that no damages had been occasioned, rather  than to the rule that no damages could be recovered.  We think the rule which should be established in cases  like the  present is no different from the rule in any  other case where one party causes damage to  another.  In this  jurisdiction, the petitioner,  upon  the  presentation of his petition,  the ascertainment of the value of the property in question, and the deposit of said value with the proper official, is justified in  taking  possession of the land being expropriated.  In the present case the petition was presented, a value was fixed upon the land, the deposit was made, and the plaintiff took actual possession of the land, thereby causing the defendant to quit the possession of the same, to remove his animals and machinery  therefrom, and to cease to exercise any right or control over the same.  The plaintiff remained in possession  of the land for some time prior to the presentation of his motion to dismiss his action.  To deny defendant at least the right to prove that he had been dam aged by  such  dispossession would be  to  deny him  the right to prove, in  any case, that he had been damaged by the dispossession of his property by another.   Whether or not he has been damaged is a question of proof.  He is entitled, at least,  to an opportunity  to  present proof upon that question.

"Therefore, and for the reasons hereinbefore given, it is hereby ordered and decreed that the judgment of the lower court be affirmed, reserving to the defendants the right, before a final judgment is rendered in the court below, and within a period of twenty  days  after the return of the record to the lower court and notice thereof, to  present their claim for damages, either as an incident to the present action  or in a separate action. And without any finding as to costs, it is so ordered."   (City of Manila vs. Ruymann, 37 Phil., 421.)
Upon the return of the case to the Court of First Instance, the defendants elected to treat the determination of the damages as an incident  to  the expropriation case and, on May 24, 1918, filed a cross-complaint asking damages in the sum of P150,000.

The plaintiff in its  answer denies the principal allegations of the cross-complaint and sets up as special defenses: (1)  That it never had actual  possession of the  land  and had limited its acts to the carrying out of sanitary regulations and to the protection of the city water supply against contamination, and (2)  that under section  2430 of the Administrative Code, the city cannot be held liable for damages or  injuries to persons or  property arising from the failure of the Municipal Board, or any city officer, to enforce the provisions of the charter of the city, or any other law or ordinance, or from negligence of said board or other officers while enforcing or attempting to enforce the same. Upon trial, the court below held that considering that, the defendants' claim for damages was presented as an incident to the expropriation proceedings, no damages  could be  awarded  neither for  the period preceding  the  institution of said proceedings on March 26,  1914, nor for the period subsequent  to the  dismissal of the action by the Court of First Instance.  Judgment was rendered in  favor of the defendants and against the plaintiff for the sum  of P3,384.50, as damages sustained by the defendants during the period from March 26, 1914, until July, 1915, with the costs.  From this judgment both parties appeal.

The plaintiff-appellant assigns as errors:
"(1)  That the court erred in declaring that the city took possession of the defendants' property  sought to be expropriated ; (2)  that it likewise erred in awarding the defendants damages; and  (3) that it erred in declaring that the plaintiff,  and not  the  Metropolitan  Water  District, was responsible for such damages as the defendants might have suffered."
The first assignment of error was decided adversely  to the plaintiff's contention  in the case  of City of Manila vs. Ruymann  (37 Phil., 421), and the second assignment will be considered in connection with the  defendants' appeal.

The third  assignment is  clearly without merit; the Metropolitan Water District  has assumed liability for certain contractual obligations of  the city, but cannot be held  liable in damages for the torts of the latter.

The defendants  in their brief on appeal  insist that they should have been  awarded  damages in  the total sum of P520,367 upon the following items:
1. For loss in the sale of 48 carabaos
P2,880.00
2. For loss in the sale of 5 horses
375.00
3. For loss in the sale of 32 head of swine
460.00
4. For loss in the sale of 70 goats
130.00
5. For loss of fowls
120.00
6. For loss of wire fencing
855.00
7. For damages suffered by the defendants from 1911 to April, 1914
21,250.00
8. For damages suffered by defendants for the years 1916 and 1917
45,500.00
9. For the year 1914
22,740.00
10. For the year 1915
22,740.00
11. For damages on account of the burning of houses and contents
12,777.00
12. For damages to roads, trails, dikes and irrigation ditches
2,300.00
13. For damages arising from the forced sale of defendants' plantation
350,000.00
14. For attorneys' fees.
15,000.00
15. For damages from loss of advances and destruction of business
23,240.00
   
  Total
520,367.00

Upon the first  item the court allowed the sum of P900 and items Nos. 2, 3, 4,  5 and 6 were allowed in full.  The court further allowed the sum of ?251.10 for loss of palay in 1914  and  P293.40 for palay lost  in 1915.   All  other claims were rejected.

In our opinion, the court did not err  in rejecting items Nos. 7 and 15; it is self-evident that in  this action  only damages arising out of the expropriation  proceedings can be considered  and  that the plaintiff cannot here be held liable for damages for acts occurring before such proceedings were commenced.

The lower court found that the  damages referred to in items Nos. 9 and  10 amounted only to P544.50 and its estimate is probably as nearly correct as it was possible to make it, taking into consideration the general unreliability of the evidence.

As to item No. 11,  the defendants are undoubtedly entitled to damages for  the loss of the houses which burned down during the time the plaintiff held possession of the land; the houses  were part of the property to be expropriated and upon the  dismissal of the proceedings, it was the plaintiff's duty to return the buildings to the defendants, or in  default thereof, to pay damages.   But we fail to see upon what  ground the plaintiff can be held liable in damages for the loss of the personal property stored in the houses;  such  property was  not the subject of the expropriation proceedings and the defendants must be held to have left it on the land at their own risk.  It is possible that the defendants are  entitled for  damages  upon some of the other items, but their evidence is so unsatisfactory that it is impossible to arrive at any exact estimate of their losses.  In fact, we feel  justified in saying that the only thing clearly  shown by  the testimony of their principal witness is a remarkable disregard for the truth.

Considering the record as a whole, the majority of this court is of the opinion that the defendants should be allowed a total  amount of P10,000, in full satisfaction of the damages  suffered by them through the aforesaid expropriation proceedings.

The judgment appealed from is therefore  modified by increasing the amount of the defendants' recovery to the Total sum of P10,000,  with interest at 6 per cent per annum from May 24, 1918,  the date of the filing of the cross complaint.  No costs will be allowed.   So ordered.

Avanceña,  C.  J., Johnson, Street, Malcolm, Villamor, Johns, and Romualdez, JJ., concur.

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