Sagrada Orden v Nacoco GR L-3756 Ponente: Justice Labrador Facts: The land in question originally belongs to the plaintiff.

However, during the Japanese occupation, the land was forcibly acquired for a sum of money by a Japanese corporation with its title registered upon its name. After liberation, the Alien Property Custodian(APC) of the U.S. took control over the said land. The land was first occupied by a certain company under a custodian agreement with the APC, and when it vacated the property it was occupied by the defendant herein. The plaintiff soon made claim to the said property before the APC, but as this was denied, it brought an action in court which results in the return of the property to the plaintiff, ejection of the defendant from the land, and a right to recover from the defendants the rentals for its occupation on the premises from the date it occupied the land to the date it vacated it. Hence, the defendant contests these rental claims as it interposes the defense that it occupied the property in good faith, under no obligation to pay rentals. Issue: Whether or not the defendant is obliged to pay rentals to the plaintiff during its occupation of the land despite the inexistence of such obligation prior to the questioned claim Held: If defendant is liable at all, its obligations, must arise from any of the four sources of obligations, namely, law, contract or quasi-contract, crime, or negligence. Defendant is not guilty of any offense at all, because it entered the premises and occupied it without any agreement to pay any rentals with the permission of the entity which had the legal control and administration thereof, the Alien Property Administration. Neither was there any negligence on its part.