The Court had, on February 17, 2003, determined the Wally family to be the rightful owners of a real property in Iyebukel, Koror.
The property was taken from its owners during the Japanese occupation of Palau and was passed unto the Trust Territory of the Pacific Islands administration. In the 1960s, a school was built on the property. Since then the school – now George B. Harris Elementary School – has remained operated on the property for over thirty years.
The national government, on October 18, 2005 filed a condemnation case – the power of the government to legally seize a citizen‘s private property or rights to a property with due monetary compensation, but without the owner’s consent – to obtain the title to the property.
The Court had accepted the national government’s appraisal of the property and ordered that it pays the land owners $285,345.69 – the sum of the area of the property multiplied by $28.60 and 3 percent annual interest beginning on February 17, 2003 to March 17, 2007.
The Wallys filed an appeal that the Court had erroneously ruled based on its application 35PNC§318, which provides for an applicable 3 percent interest rate.
In reviewing the merits of the Wallys’ appeal and the national government’s arguments, the Appellate Court, on November 10, reversed the judgment of the Trial Court.
The Wallys’ case was remanded – sent back to the Trial Court. Further proceedings on this case will ensue to determine the appropriate and applicable rate interest that would factor into the “just compensation” of the Wallys property.
