Republic of the Philippines v. Arlene R. Soriano

Summary

The Supreme Court partially granted DPWH's petition challenging the RTC's award of interest and consequential damages in an expropriation case for the NLEX Harbor Link Project. The Court deleted the interest award since DPWH deposited the full compensation amount before taking the property, showing no delay. It also eliminated consequential damages because the entire property was expropriated, leaving no remaining portion to suffer impairment. Regarding tax liabilities, the Court ordered the property owner to pay capital gains tax as the seller's obligation under tax law, but required DPWH to pay documentary stamp tax, transfer tax, and registration fees consistent with its own Citizen's Charter policy. The decision clarifies the distinction between delayed and timely compensation in eminent domain proceedings and establishes clear guidelines for tax responsibility allocation between government and private parties in expropriation cases.