USUFRUCT (INSURANCE)

VDA. DE
ALBAR VS
CARANDANG
By: Marielle Reynoso
 ISSUE
Whether or not the usufruct included
the building and the land?

W/N the usufructuary (FABIE) or the

naked owner (VDA DE ALBAR) should
undertake the reconstruction?

W/N the usufructuary should pay the

real estate taxes?
 APPLICABLE
RULES

ART 603 , OLD ART 517, OLD LOPEZ V FABIE V

CIVIL CODE CIVIL CODE CONSTANTINO GUTIERREZ
Usufruct is extinguished If the usufruct is When the land and DAVID
only by the total loss of constituted on immovable building belong to the All the acts of
the thing subject of the property + building, and same owner, the earning administration were
encumbrance the building should be of the building (through vested in the
destroyed, the rent) is considered an usufructuary
usufructuary shall have a earning of both the land
right to make use of the and building.
land and materials.
 DONYA ROSARIO FABIE Y
GREY DIED
On the will:
Rosario Grey Vda. de Albar et al - naked
owners BUILDING BURNED DOWN
Josefa Fabie - usufruct
Only the walls and other improvements
were left

CHINAMAN OFFERED TO
LEASE PROPERTY
The parties executed a temporary agreement

VDA DE ALBAR
COMMENCED PRESENT
TIMELINE OF ACTION

EVENTS
ANALYSIS
PERTINENT PROVISION OF THE WILL
(AS PROVIDED BY GOOGLE
TRANSLATE)

I go to my minor goddaughter Maria Josefa de la Paz

Fabie, in lifetime usufruct the income of the farms
located in Santo Cristo street. . . and on Ongpin
Street, Numbers 950 to 956 of the District of Santa
Cruz, Manila.

Lego a mi ahijada menor de edad Maria Josefa de la Paz Fabie, en

usufructo vitalicio las rentas de las fincas situadas en la calle Santo
Cristo . . . y en la calle Ongpin, Numeros 950 al 956 del Distrito de
Santa Cruz, Manila.
ARGUMENTS
PROVISION A LIFE
SHOULD BE USUFRUCT ON
INTERPRETED BOTH THE
AS ONLY A LIFE RIGHT OF BUILDINGS
USUFRUCT ON USUFRUCT AND THE BY VIRTUE OF
THE RENTALS WAS LANDS HER RIGHT OF
OF THE EXTINGUISHED USUFRUCT,
Former cannot be
BUILDINGS
separated from the she has the exclusive
The right of
Once destroyed, the latter right to cede the
usufructuary was
usufruct is limited to the legal property by lease and
extinguished. interest on the value to receive the full
of the lot and the rental value
materials.
CONCLUSION
MAIN ISSUE
Yes, the usufruct included the building and the land

" When both land and building belong to the same owner, as in this case, the rents on the
building constitute an earning of the capital invested in the acquisition of both land and
building. There can be a land without a building, but there can be no building without land.
The land, being an indispensable part of the rented premises cannot be considered as having
no rental value whatsoever."

Since the usufruct has not been extinguished by the destruction of the
building and the usufruct is for life as in this case, it is but fair that the
usufructuary continue to enjoy the use of the land and the materials
that may have been left by the fire or to the use of the new building
that may be constructed on the land. To hold otherwise would be to
affirm that the usufruct has been extinguished. 25
CONCLUSION
OTHER ISSUES:
It is the wisdom and discretion of the usufructuary who, to all intents and purposes is deemed as the administrator
of the property. This was already clarified in a previous case.

The real estate taxes paid by Josefa in her capacity as usufructuary for several years previous to the present
litigation should be paid by her, as she did, instead of by vda. de Albar, not only because she is the only recipient of
all the benefits of the property but because she bound herself to pay such taxes in a formal agreement

JUDGMENT IN FAVOR OF USUFRUCT