LUCIANO BRIONES vs.

JOSE
MACABAGDAL, et. al
G.R. No. 150666. August 3, 2010
 FACTS:

Spouses Macabagdal purchased from

Vergon Realty Lot No. 2-R  located in

Vergonville Subdivision.
 FACTS:

On the other hand, Briones is the

owner of Lot No. 2-S, which is

adjacent to Lot No. 2-R.

 FACTS:

Sometime in 1984, after

obtaining the necessary

building permit and approval,

Briones  constructed a house

on Lot No. 2-R  which they

thought was Lot No. 2-S.

 FACTS:

After being informed of the

mix up by Vergon, Spouses

Macabagdal  immediately

demanded Briones to

demolish the house and

vacate the property.

 FACTS:

Briones, however, refused to heed their

demand.

Thus, Spouses Macabagdal  filed an

action to recover ownership and

possession of the said parcel of land

with the RTC of Makati City.

Ruling of the RTC
The RTC ruled in favor of Spouses Macabagdal  and

found that Briones’ house was undoubtedly built on Lot

No. 2-R. 

to remove the improvements they have made

on the disputed property or

to pay Spouses Macabagdal the prevailing

price of the land as compensation

Ruling of the CA
On appeal, the CA affirmed the RTC’s

finding.
Thereafter, Briones went to the Supreme

Court to challenge the said decision.

They  insist that they are builders in

good faith and relied with full
confidence in the reputation of

Vergon’s agents when they pointed the

wrong property to them.

ISSUE:

WON, the Briones are builders in good faith and

hence the options mandated under Article 448

must be dispensed with

RULING:

The Briones are builders in good faith.

By being builders in good faith, Article 448 of

the Civil Code shall govern.
The owner of the land on which anything has

been built, sown or planted in good faith, shall

have the right:

to appropriate as his own the works, sowing or

planting, after payment of the indemnity

provided for in Articles 546 and 548, or

to oblige the one who built or planted to pay the

price of the land, and the one who sowed, the

proper rent.
However, the builder or planter cannot be

obliged to buy if its value is

the land

considerably more than that of the building

or trees.

In such a case, he shall pay reasonable rent, if

the owner of the land does not choose to

appropriate the building or trees after proper

indemnity.
The parties shall agree upon the terms of the

lease and in case of disagreement, the court

shall fix the terms thereof.
Article 448 covers cases in which the builders,
sowers or planters believe themselves to be

owners of the land or, at least, to have a claim of

title thereto.
The builder in good faith can compel the
landowner to make a choice between:
appropriating the building by paying the

proper indemnity; or

obliging the builder to pay the price of the

land.
 DOCTRINE

The choice belongs to the owner of the

land, a rule that accords with the
principle of accession.
 DOCTRINE

Even if the option lies with the landowner,

the grant to him, nevertheless, is
preclusive. He must choose one.
 DOCTRINE

It is only if the owner chooses to sell his land,

and the builder or planter fails to purchase it
where its value is not more than the value of
the improvements, that the owner may
remove the improvements from the land. 
 Right to Indemnification
Articles 546 and 548

Moreover, Briones  have the right to be indemnified for

the necessary and useful expenses they may have made on

the subject property under Articles 546 and 548.

 Right to Indemnification
Articles 546 and 548

Necessary Expenses
It shall be refunded to every possessor; but only the

possessor in good faith may retain the thing until he has

been reimbursed therefor.

 Right to Indemnification
Articles 546 and 548

Useful Expenses

It shall be refunded only to the possessor in good faith with

the same right of retention, the person who has defeated

him in the possession having the option of refunding the

amount of the expenses or of paying the increase in value

which the thing may have acquired by reason thereof.

 Right to Indemnification
Articles 546 and 548

Expenses for Pure Luxury or Mere Pleasure

It shall not be refunded to the possessor in good faith; but

he may remove the ornaments with which he has

embellished the principal thing if it suffers no injury thereby,

and if his successor in the possession does not prefer to

refund the amount expended.

IN THE CASE AT BAR

Spouses Macabagdal have the following options:

to appropriate the house on the subject land after

payment to Briones of the appropriate indemnity or

to oblige petitioners to pay the price of the land.

IN THE CASE AT BAR

If its value is considerably more than the value of the

structures, in which case Briones  shall pay reasonable

rent.
 This case must be REMANDED to the RTC

which shall conduct the appropriate

proceedings:

Depra vs.
assess the respective values of the improvement
Dumlao and of the land, as well as the amounts of

G.R. No. L-57348 reasonable rentals and indemnity

fix the terms of the lease if the parties so agree

determine other matters necessary for the

proper application of Article 448, in relation to

Articles 546 and 548, of the Civil Code

CONCLUSION
The choice  between (1) appropriating the

building or (2) obliging the builder to pay the

price of the land belongs to the owner of the

land -  a rule that accords with the principle of

accession.
CONCLUSION
Such grant afforded to him is

preclusive. Hence, he cannot compel the owner

of the building to remove the building from the

land without first exercising either option.

CONCLUSION
A builder in good faith has the right to be
indemnified for the necessary and useful
expenses  they may have made on the subject
property as provided under Articles 546 and 548

of the Civil Code.