G.R. No.

L-40411 August 7, 1935

DAVAO SAW MILL CO., INC., plaintiff-appellant,

vs.

APRONIANO G. CASTILLO and DAVAO LIGHT & POWER CO., INC., defendants-appellees.

Facts:

The sawmill company is a holder of a lumber concession in the Philippines. It operates a sawmill in
Davao, however, the land it occupies belonged to another person. Through a contract of lease, the
sawmill company erected a building which housed their machinery. The contract stipulated that upon its
expiry, all the buildings and improvements introduced in the property by the second party shall pass to
the exclusive ownership of the first party. The same shall be the case when the second party shall
abandon the land leased before the period of expiration.

Issue:

What is the nature of the machinery which is described in the complaint?

Ruling:

The machinery described in the complaint is a movable property thus it is personal in nature. A
machinery which is movable only becomes immovable when an owner places it in his own plant or lot
for use in connection therewith, and not when a tenant, usufructuary, or any person having only
temporary right, unless such person acted as an agent of the owner.

Judgement affirmed, costs against appellant.