Corporation (Dominium).

On April 10, 1981, Justa

Kausapin executed an affidavit affirming the conveyance of
the subject property in favor of Enrique D. Hemedes as
embodied in the Kasunduan dated May 27, 1971, and at
the same time denying the conveyance made to Maxima
Hemedes.
On May 14, 1981, Dominium leased the property to its
sister corporation Asia Brewery, Inc. (Asia Brewery) who,
even before the signing of the contract of lease, constructed
two warehouses made of steel and asbestos costing about
P10,000,000.00 each. Upon learning of Asia Brewerys
constructions upon the subject property, R & B Insurance
sent it a letter on March 16, 1981 informing the former of
its owner_______________
6

Rollo of G.R. No. 108472, p. 17.

359

VOL. 316, OCTOBER 8, 1999

359

Hemedes vs. Court of Appeals

ship of the property as evidenced by TCT No. 41985 issued
in its favor and of its right to appropriate the constructions
since Asia Brewery is a builder in bad faith. On March 27,
1981, a conference was held between R & B Insurance and
Asia Brewery but they failed to arrive at an amicable
settlement.
On May 8, 1981, Maxima Hemedes also wrote a letter
addressed to Asia Brewery wherein she asserted that she is
the rightful owner of the subject property by virtue of OCT
No. (0-941) 0-198 and that, as such, she has the right to
appropriate Asia Brewerys constructions, to demand its
demolition, or to compel Asia Brewery to purchase the
land. In another letter of the same date addressed to R & B
Insurance, Maxima Hemedes denied the execution of any
real estate mortgage in favor of the latter.
On August 27, 1981,7 Dominium and Enrique D.
Hemedes filed a complaint with the Court of First Instance
of Binan, Laguna for the annulment of TCT No. 41985
issued in favor of R & B Insurance and/or the reconveyance
to Dominium of the subject property. Specifically, the
complaint alleged that Dominium was the absolute owner