Power of Eminent Domain

City of Manila vs Chinese Community of Manila

Facts: City of Manila presented a petition in CFI praying that certain lands
be expropriated for the purpose of constructing a public improvement
(extension of Rizal Avenue). Chinese community claims that it is the
owner of the of parcels of land in the petition, other defendants said that
there was no necessity existed for the expropriation and the land in
question was a cemetery covered by monuments and should not be
converted into a street. The lower court ruled that the said public
improvement was not necessary on the particular-strip of land in question.
Plaintiff herein assailed that they have the right to exercise the power of
eminent domain and that the courts have no right to inquire and
determine the necessity of the expropriation. Thus, the same filed an
appeal.

Issue: Whether or not the courts may inquire into, and hear proof of the
necessity of the expropriation.

Held: The courts have the power of restricting the exercise of eminent
domain to the actual reasonable necessities of the case and for the
purposes designated by the law. The moment the municipal corporation or
entity attempts to exercise the authority conferred, it must comply with
the conditions accompanying the authority. The necessity for conferring
the authority upon a municipal corporation to exercise the right of
eminent domain is admittedly within the power of the legislature. But
whether or not the municipal corporation or entity is exercising the right in
a particular case under the conditions imposed by the general authority, is
a question that the courts have the right to inquire to.

Republic v PLDT
Facts:

PLDT entered into an agreement with RCA Communications Inc., an

American corporation, whereby telephone messages coming from the US
and received by RCAs domestic station, could automatically be
transferred to the lines of PLDT, and vice versa.

The plaintiff through the Bureau of Telecommunications, after

having set up its own Government Telephone System, by utilizing its own
appropriation and equipment and by renting trunk lines of the PLDT,
entered into an agreement with RCA for a joint overseas telephone
service.

Alleging that plaintiff is in competition with them, PLDT notified the

former and receiving no reply, disconnected the trunk lines being rented
by the same; thus, prompting the plaintiff to file a case before the CFI
praying for judgment commanding PLDT to execute a contract with the
Bureau for the use of the facilities of PLDTs telephone system, and for a
writ of preliminary injunction against the defendant to restrain the
severance of the existing trunk lines and restore those severed.

ISSUE:

Whether or not the defendant PLDT can be compelled to enter into

a contract with the plaintiff.

HELD:

x x x while the Republic may not compel the PLDT to celebrate a

contract with it, the Republic may, in the exercise of the sovereign power
of eminent domain, require the telephone company to permit
interconnection of the government telephone system and that of the
PLDT, as the needs of the government service may require, subject to the
payment of just compensation to be determined by the court.