Professional Documents
Culture Documents
Bustos v CA
Garcia v CA
Rodil Enterprises v CA
Ownership; Every owner has the freedom of disposition over his property—it is an attribute of
ownership, and this rule has no exception.—We rule for RODIL. The owner has the right to
enjoy and dispose of a thing, without other limitations than those established by law. Every
owner has the freedom of disposition over his property. It is an attribute of ownership, and this
rule has no exception. The REPUBLIC being the owner of the disputed property enjoys the
prerogative to enter into a lease contract with RODIL in the exercise of its jus
disponendi. Hence, as lessor, the REPUBLIC has the right to eject usurpers of the leased
property where the factual elements required for relief in an action for unlawful detainer are
present.
Same; Unlawful Detainer; In an action for unlawful detainer the plaintiff need not have been in
prior physical possession.—In an action for unlawful detainer the plaintiff need not have been in
prior physical possession. Respondents have admitted that they have not entered into any lease
contract with the REPUBLIC and that their continued occupation of the subject property was
merely by virtue of acquiescence. The records clearly show this to be the case. The REPUBLIC
merely issued a “temporary occupancy permit” which was not even in the name of the
respondents Bondoc, Bondoc-Esto, Divisoria Footwear or Chua but of respondent
ASSOCIATION. Since the occupation of respondents was merely tolerated by the REPUBLIC,
the right of possession of the latter remained uninterrupted. It could therefore alienate the same
to anyone it chose. Unfortunately for respondents, the REPUBLIC chose to alienate the subject
premises to RODIL by virtue of a contract of lease entered into on 18 May 1992. Resultantly,
petitioner had the right to file the action for unlawful detainer against respondents as one from
whom possession of property has been unlawfully withheld.
Isaguirre v De Lara
Custodio v Corrado
Same; Words and Phrases; For a question to be one of law, it must involve no examination
of the probative value of the evidence presented by the litigants.—Anent the second issue,
petitioner contends that tenancy relationship between him and respondent’s father was amply
supported by evidence. It must be stressed that this is a factual issue requiring re-evaluation and
examination of the probative value of evidences presented which is not proper in a petition for
review on certiorari. Besides, this issue had already been squarely resolved by the Court of
Appeals and we find no impelling reason to set it aside. According to the Court of Appeals, the
milling tickets only showed that they were issued to Crisanto Corrado but did not show whether
such tickets referred to the same lot in question. In petitions for review on certiorari, the
jurisdiction of the Supreme Court in cases brought before it from the Court of Appeals is limited
to reviewing questions of law. For a question to be one of law, it must involve no examination of
the probative value of the evidence presented by the litigants. The findings of fact of the
appellate court are generally conclusive on this Court, which is not a trier of facts.
Abejaron v Nabasa
Javier v Lumontad
Remedial Law; Special Civil Actions; Forcible Entry; In forcible entry, the complaint must
necessarily allege that one in physical possession of a land or building has been deprived of that
possession by another through force, intimidation, threat, strategy or stealth.— As explicated in
the case of Pagadora v. Ilao, 662 SCRA 14 (2011), “[t]he invariable rule is that what determines
the nature of the action, as well as the court which has jurisdiction over the case, are the
allegations in the complaint. In ejectment cases, the complaint should embody such statement of
facts as to bring the party clearly within the class of cases for which [Section 1, Rule 70 of the
Rules of Court] provides a summary remedy, and must show enough on its face to give the court
jurisdiction without resort to parol evidence. Hence, in forcible entry, the complaint must
necessarily allege that one in physical possession of a land or building has been deprived of
that possession by another through force, intimidation, threat, strategy or stealth. It is not
essential, however, that the complaint should expressly employ the language of the law, but it
would suffice that facts are set up showing that dispossession took place under said conditions.
In other words, the plaintiff must allege that he, prior to the defendant’s act of dispossession by
force, intimidation, threat, strategy or stealth, had been in prior physical possession of the
property. This requirement is jurisdictional, and as long as the allegations demonstrate a
cause of action for forcible entry, the court acquires jurisdiction over the subject matter.”
Same; Same; Same; Ejectment; Jurisdiction; Municipal Trial Courts; Even in cases where
the issue of possession is closely intertwined with the issue of ownership, the first level courts
maintain exclusive and original jurisdiction over ejectment cases, as they are given the authority
to make an initial determination of ownership for the purpose of settling the issue of possession.
—Verily, ejectment cases fall within the original and exclusive jurisdiction of the first level
courts by express provision of Section 33(2) of Batas Pambansa Blg. 129, in relation to Section
1, Rule 70, of the Rules of Court. Even in cases where the issue of possession is closely
intertwined with the issue of ownership, the first level courts maintain exclusive and original
jurisdiction over ejectment cases, as they are given the authority to make an initial determination
of ownership for the purpose of settling the issue of possession. It must be clarified, however,
that such adjudication is merely provisional and would not bar or prejudice an action between the
same parties involving title to the property. It is, therefore, not conclusive as to the issue of
ownership.
Civil Law; Family Law; Property Relations; Conjugal Partnership; The Family Code
provisions were also made to apply to already existing conjugal partnerships without prejudice
to vested rights.—The Family Code took effect on August 3, 1988. Its Chapter 4 on Conjugal
Partnership of Gains expressly superseded Title VI, Book I of the Civil Code on Property
Relations Between Husband and Wife. Further, the Family Code provisions were also made to
apply to already existing conjugal partnerships without prejudice to vested rights. Thus: Art.
105. x x x The provisions of this Chapter shall also apply to conjugal partnerships of gains
already established between spouses before the effectivity of this Code, without prejudice to
vested rights already acquired in accordance with the Civil Code or other laws, as provided
in Article 256. (n)
Same; Same; Same; Same; In contrast to Article 173 of the Civil Code, Article 124 of the Family
Code does not provide a period within which the wife who gave no consent may assail her
husband’s sale of the real property; It simply provides that without the other spouse’s written
consent or a court order allowing the sale, the same would be void.—In contrast to Article 173
of the Civil Code, Article 124 of the Family Code does not provide a period within which the
wife who gave no consent may assail her husband’s sale of the real property. It simply provides
that without the other spouse’s written consent or a court order allowing the sale, the same would
be void. Article 124 thus provides: “Art. 124. x x x In the event that one spouse is
incapacitated or otherwise unable to participate in the administration of the conjugal
properties, the other spouse may assume sole powers of administration. These powers do
not include the powers of disposition or encumbrance which must have the authority of the
court or the written consent of the other spouse. In the absence of such authority or
consent, the disposition or encumbrance shall be void. x x x”
Saluday v People
Same; Same; Same; Right to Privacy; The prohibition of unreasonable search and seizure
ultimately stems from a person’s right to privacy.—The prohibition of unreasonable search and
seizure ultimately stems from a person’s right to privacy. Hence, only when the State intrudes
into a person’s expectation of privacy, which society regards as reasonable, is the Fourth
Amendment triggered. Conversely, where a person does not have an expectation of privacy or
one’s expectation of privacy is not reasonable to society, the alleged State intrusion is not a
“search” within the protection of the Fourth Amendment.
Same; Same; Same; The reasonableness of a person’s expectation of privacy must be
determined on a case-to-case basis since it depends on the factual circumstances surrounding
the case.—Indeed, the reasonableness of a person’s expectation of privacy must be determined
on a case-to-case basis since it depends on the factual circumstances surrounding the case. Other
factors such as customs, physical surroundings and practices of a particular activity may
diminish this expectation. In Fortune Express, Inc. v. Court of Appeals, 305 SCRA 14 (1999), a
common carrier was held civilly liable for the death of a passenger due to the hostile acts of
armed men who boarded and subsequently seized the bus. The Court held that “simple
precautionary measures to protect the safety of passengers, such as frisking passengers and
inspecting their baggages, preferably with nonintrusive gadgets such as metal detectors,
before allowing them on board could have been employed without violating the passenger’s
constitutional rights.” In Costabella Corp. v. Court of Appeals, 193 SCRA 333 (1991), a
compulsory right-of-way was found improper for the failure of the owners of the dominant estate
to allege that the passageway they sought to be reopened was at a point least prejudicial to the
owner of the servient estate. The Court thus explained, “[c]onsidering that the petitioner operates
a hotel and beach resort in its property, it must undeniably maintain a strict standard of security
within its premises. Otherwise, the convenience, privacy, and safety of its clients and patrons
would be compromised.” Similarly, shopping malls install metal detectors and body scanners,
and require bag inspection as a requisite for entry. Needless to say, any security lapse on the part
of the mall owner can compromise public safety.
Same; Same; Same; A person’s expectation of privacy is diminished whenever he or she
enters private premises that are accessible to the public.—Concededly, a bus, a hotel and beach
resort, and a shopping mall are all private property whose owners have every right to exclude
anyone from entering. At the same time, however, because these private premises are accessible
to the public, the State, much like the owner, can impose nonintrusive security measures and
filter those going in. The only difference in the imposition of security measures by an owner and
the State is, the former emanates from the attributes of ownership under Article 429 of the Civil
Code, while the latter stems from the exercise of police power for the promotion of public safety.
Necessarily, a person’s expectation of privacy is diminished whenever he or she enters private
premises that are accessible to the public.
Same; Same; Same; The constitutional immunity against unreasonable searches and
seizures is a personal right, which may be waived.—Doubtless, the constitutional immunity
against unreasonable searches and seizures is a personal right, which may be waived. However,
to be valid, the consent must be voluntary such that it is unequivocal, specific, and intelligently
given, uncontaminated by any duress or coercion. Relevant to this determination of voluntariness
are the following characteristics of the person giving consent and the environment in which
consent is given: (a) the age of the consenting party; (b) whether he or she was in a public or
secluded location; (c) whether he or she objected to the search or passively looked on; (d) his or
her education and intelligence; (e) the presence of coercive police procedures; (f) the belief that
no incriminating evidence will be found; (g) the nature of the police questioning; (h) the
environment in which the questioning took place; and (i) the possibly vulnerable subjective state
of the person consenting.
ANDAMO V IAC
Unlawful Detainer; The only question that the courts must resolve in an unlawful detainer case
is who between the parties is entitled to the physical or material possession of the property in
dispute.—The only question that the courts must resolve in an unlawful detainer case is who
between the parties is entitled to the physical or material possession of the property in dispute.
The main issue is possession de facto, independently of any claim of ownership or possession de
jure that either party may set forth in his pleading.
Same; Section 16, Rule 70 of the Rules of Court allows the courts to provisionally
determine the issue of ownership for the sole purpose of resolving the issue of physical
possession.—Section 16, Rule 70 of the Rules of Court allows the courts to provisionally
determine the issue of ownership for the sole purpose of resolving the issue of physical
possession. Otherwise stated, when the question of possession cannot be resolved without
deciding the issue of ownership, the issue of ownership is to be resolved only to determine the
issue of possession.
Same; In an action for forcible entry and detainer, if plaintiff can prove prior physical
possession, he may recover such possession even from the owner.—In an action for forcible
entry and detainer, if plaintiff can prove prior physical possession in himself, he may recover
such possession even from the owner, but, on the other hand, if he cannot prove such prior
physical possession, he has no right of action for forcible entry and detainer even if he should be
the owner of the property.
Same; The summary character of the proceedings in an action for forcible entry or
unlawful detainer is designed to quicken the determination of possession de facto in the interest
of preserving the peace of the community.—The summary character of the proceedings in an
action for forcible entry or unlawful detainer is designed to quicken the determination of
possession de facto in the interest of preserving the peace of the community, but the summary
proceedings may not be proper to resolve ownership of the property. Consequently, any issue on
ownership arising in forcible entry or unlawful detainer is resolved only provisionally for the
purpose of determining the principal issue of possession.
SURFACE RIGHTS
US V CAUSBY
Brief Fact Summary. Respondents claim that their property was taken, within the meaning of
the Fifth Amendment, by the regular army and navy aircraft flights over their house and chicken
farm.
Synopsis of Rule of Law. The airspace is a public highway, but if the landowner is to have the
full enjoyment of his land, he must have exclusive control over the immediate reaches of the
enveloping atmosphere.
The flight of aircraft is lawful unless at such a low altitude as to interfere with the then existing
use to which the land, or the space over the land, is put by the owner, or unless so conducted as
to be imminently dangerous to persons or property lawfully on the land. Subject to that right of
flight, ownership of the space above the land is declared to be vested in the various owners of the
land beneath and a Constitutional taking may be found.
REP V KABACAN
Civil Law; Property; Ownership; Rights over lands are indivisible, the ownership of land
extends to the surface as well as to the subsoil under it.—In National Power Corporation v.
Ibrahim, et al., 526 SCRA 149 (2007), we held that rights over lands are indivisible, viz.:
[C]onsequently, the CA’s findings which upheld those of the trial court that respondents owned
and possessed the property and that its substrata was possessed by petitioner since 1978 for the
underground tunnels, cannot be disturbed. Moreover, the Court sustains the finding of the lower
courts that the sub-terrain portion of the property similarly belongs to respondents. This
conclusion is drawn from Article 437 of the Civil Code which provides: ART. 437. The owner of
a parcel of land is the owner of its surface and of everything under it, and he can construct
thereon any works or make any plantations and excavations which he may deem proper, without
detriment to servitudes and subject to special laws and ordinances. He cannot complain of the
reasonable requirements of aerial navigation. Thus, the ownership of land extends to the surface
as well as to the subsoil under it. xxx xxx xxx Registered landowners may even be ousted of
ownership and possession of their properties in the event the latter are reclassified as mineral
lands because real properties are characteristically indivisible. For the loss sustained by such
owners, they are entitled to just compensation under the Mining Laws or in appropriate
expropriation proceedings. Moreover, petitioner’s argument that the landowners’ right extends to
the sub-soil insofar as necessary for their practical interests serves only to further weaken its
case. The theory would limit the right to the sub-soil upon the economic utility which such area
offers to the surface owners. Presumably, the landowners’ right extends to such height or depth
where it is possible for them to obtain some benefit or enjoyment, and it is extinguished beyond
such limit as there would be no more interest protected by law.
RIGHT OF ACCESSION
ROSARIO V LIM
Civil Law; Property; Ownership; Accession; The accessory follows the principal, that is, the
ownership of the property gives the right by accession to everything which is produced thereby,
or which is incorporated or attached thereto, either naturally or artificially.—Neither can
Alfonso lean on the supposed tax declarations in his name as these are not conclusive evidence
of ownership unlike a certificate of title which indicates true and legal ownership by the
registered owners. Thus, Articles 448 and 546 of the Civil Code find no application in this case,
but the doctrine that the accessory follows the principal, that is, the ownership of the property
gives the right by accession to everything which is produced thereby, or which is incorporated or
attached thereto, either naturally or artificially. Verily, the RTC aptly held that preponderance of
evidence must shift in favor of petitioners and the contested properties should necessarily form
part of Brigida’s estate.
ACCESSION DISCRETA
DACLISON V BAYTION
Civil Law; Property; Accretion; The following requisites must concur in order for an
accretion to be considered, namely: (1) that the deposit be gradual and imperceptible; (2) that it
be made through the effects of the current of the water; and (3) that the land where accretion
takes place is adjacent to the banks of rivers.—Baytion’s contention that he owns that portion by
reason of accretion is misplaced. Article 457 of the New Civil Code provides: To the owners of
lands adjoining the banks of rivers belongs the accretion which they gradually receive from the
effects of the current of the waters. In other words, the following requisites must concur in order
for an accretion to be considered, namely: (1) that the deposit be gradual and imperceptible; (2)
that it be made through the effects of the current of the water; and (3) that the land where
accretion takes place is adjacent to the banks of rivers.
Same; Same; Same; Alluvion; Alluvion must be the exclusive work of nature and not a
result of human intervention.—In the case at bench, this contested portion cannot be considered
an accretion. To begin with, the land came about not by reason of a gradual and imperceptible
deposit. The deposits were artificial and man-made and not the exclusive result of the current
from the creek adjacent to his property. Baytion failed to prove the attendance of the
indispensable requirement that the deposit was due to the effect of the current of the river or
creek. Alluvion must be the exclusive work of nature and not a result of human intervention.
Furthermore, the disputed property cannot also be considered an improvement or accession.
Article 445 of the Civil Code provides: Art. 445. Whatever is built, planted or sown on the land
of another and the improvements or repairs made thereon, belong to the owner of the land,
subject to the provisions of the following articles.
LBP V PEREZ (No doctrine from escra related to property) (reader discretion advised)
IGNACIO V HILARIO
Ejectment; Unlawful Detainer; In actions for unlawful detainer, possession that was
originally lawful becomes unlawful upon the expiration or termination of the defendant’s right
to possess, arising from an express or implied contract.—In actions for unlawful detainer,
possession that was originally lawful becomes unlawful upon the expiration or termination of the
defendant’s right to possess, arising from an express or implied contract. In other words, the
plaintiff’s cause of action comes from the expiration or termination of the defendant’s right to
continue possession. The case resulting therefrom must be filed within one year from the date of
the last demand.
Same; Same; To show a cause of action in an unlawful detainer, an allegation that the
defendant is illegally withholding possession from the plaintiff is sufficient.—To show a cause of
action in an unlawful detainer, an allegation that the defendant is illegally withholding
possession from the plaintiff is sufficient. The complaint may lie even if it does not employ the
terminology of the law, provided the said pleading is couched in a language adequately stating
that the withholding of possession or the refusal to vacate has become unlawful. It is equally
settled that the jurisdiction of the court, as well as the nature of the action, is determined from the
averments of the complaint.
Same; Same; This court has consistently held that those who occupy the land of another at
the latter’s tolerance or permission, without any contract between them, are necessarily bound
by an implied promise that the occupants will vacate the property upon demand. A summary
action for ejectment is the proper remedy to enforce this implied obligation.—This Court has
consistently held that those who occupy the land of another at the latter’s tolerance or
permission, without any contract between them, are necessarily bound by an implied promise
that the occupants will vacate the property upon demand. A summary action for ejectment is the
proper remedy to enforce this implied obligation. The unlawful deprivation or withholding of
possession is to be counted from the date of the demand to vacate.
Same; Same; Unless inconsistent with Rule 70, the provisions of Rule 18 on pre-trial
applies to the preliminary conference. Under section 4 of this Rule, the nonappearance of a
party may be excused by the showing of a valid cause.—Unless inconsistent with Rule 70, the
provisions of Rule 18 on pretrial applies to the preliminary conference. Under Section 4 of this
Rule, the nonappearance of a party may be excused by the showing of a valid cause; or by the
appearance of a representative, who has been fully authorized in writing to enter into an amicable
settlement, to submit to alternative modes of dispute resolution, and to enter into stipulations or
admissions of facts and of documents.
Same; Same; Respondents have the right to appropriate—as their own—the building and
other improvements on the subject lots, but only after (1) refunding the expenses of petitioners or
(2) paying the increase in value acquired by the properties by reason thereof. They have the
option to oblige petitioners to pay the price of the land, unless its value is considerably more
than that of the structures—in which case, the petitioners shall pay reasonable rent.—
Respondents have the right to appropriate—as their own—the building and other improvements
on the subject lots, but only after (1) refunding the expenses of petitioners or (2) paying the
increase in value acquired by the properties by reason thereof. They have the option to oblige
petitioners to pay the price of the land, unless its value is considerably more than that of the
structures—in which case, petitioners shall pay reasonable rent.
ESMAQUEL V COPRADA
Ejectment; Unlawful Detainer; In unlawful detainer cases, the possession of the defendant was
originally legal, as his possession was permitted by the plaintiff on account of an express or
implied contract between them.—In unlawful detainer cases, the possession of the defendant was
originally legal, as his possession was permitted by the plaintiff on account of an express or
implied contract between them. However, defendant’s possession became illegal when the
plaintiff demanded that defendant vacate the subject property due to the expiration or termination
of the right to possess under their contract, and defendant refused to heed such demand. The sole
issue for resolution in an unlawful detainer case is physical or material possession of the property
involved, independent of any claim of ownership by any of the parties. Where the issue of
ownership is raised by any of the parties, the courts may pass upon the same in order to
determine who has the right to possess the property. The adjudication is, however, merely
provisional and would not bar or prejudice an action between the same parties involving title to
the property. Since the issue of ownership was raised in the unlawful detainer case, its resolution
boils down to which of the parties’ respective evidence deserves more weight.
Same; Same; Land Titles; As against the respondent’s unproven claim that she acquired a
portion of the property from the petitioners by virtue of an oral sale, the Torrens title of the
latter must prevail; It is an age-old rule that the person who has a Torrens title over a land is
entitled to possession thereof.—In the present case, respondent failed to present evidence to
substantiate her allegation that a portion of the land was sold to her in 1962. In fact, when
petitioners sent a letter to the respondent, demanding her to vacate the subject property, the
respondent, in reply to the said letter, never mentioned that she purchased the subject land in
1962. If the sale really took place, the respondent should have immediately and categorically
claimed that in her letter response. Clearly therefore, respondent’s submission that there was an
oral sale is a mere afterthought. On the other hand, it is undisputed that the subject property is
covered by Transfer Certificate of Title No. T-93542, registered in the name of the petitioners.
As against the respondent’s unproven claim that she acquired a portion of the property from the
petitioners by virtue of an oral sale, the Torrens title of petitioners must prevail. Petitioners’ title
over the subject property is evidence of their ownership thereof. It is a fundamental principle in
land registration that the certificate of title serves as evidence of an indefeasible and
incontrovertible title to the property in favor of the person whose name appears therein.
Moreover, the age-old rule is that the person who has a Torrens title over a land is entitled to
possession thereof.
Same; Same; Builders in Good Faith; Where a party’s occupation of the subject property
was by mere tolerance, she has no right to retain its possession under Article 448 of the Civil
Code—it is well settled that both Article 448 and Article 546 of the New Civil Code, which allow
full reimbursement of useful improvements and retention of the premises until reimbursement is
made, apply only to a possessor in good faith, i.e., one who builds on land with the belief that he
is the owner thereof; Persons whose occupation of a realty is by sheer tolerance of its owners
are not possessors in good faith.—In respondent’s Answer filed before the MCTC, she claimed
that since she was able to build a structure on the subject lot with the prior permission from the
owner, she is a builder in good faith and thus entitled to be reimbursed the necessary and useful
expenses under Articles 546 and 548 of the Civil Code of the Philippines. Without such
reimbursement, she has the right of retention over the property and she cannot just be ejected
from the premises. Respondent’s argument does not hold water. Since respondent’s occupation
of the subject property was by mere tolerance, she has no right to retain its possession under
Article 448 of the Civil Code. She is aware that her tolerated possession may be terminated any
time and she cannot be considered as builder in good faith. It is well settled that both Article 448
and Article 546 of the New Civil Code, which allow full reimbursement of useful improvements
and retention of the premises until reimbursement is made, apply only to a possessor in good
faith, i.e., one who builds on land with the belief that he is the owner thereof. Verily, persons
whose occupation of a realty is by sheer tolerance of its owners are not possessors in good faith.
At the time respondent built the improvements on the premises in 1945, she knew that her
possession was by mere permission and tolerance of the petitioners; hence, she cannot be said to
be a person who builds on land with the belief that she is the owner thereof.
Civil Law; Property; Builder in Bad Faith; Petitioners, as the owners of the land, have the
right to appropriate what has been built on the property, without any obligation to pay
indemnity therefor; and that respondents have no right to a refund of any improvement built
therein, pursuant to Articles 449 and 450 of the Civil Code.—We hold that petitioners, as the
owners of the land, have the right to appropriate what has been built on the property, without any
obligation to pay indemnity therefor; and that respondents have no right to a refund of any
improvement built therein, pursuant to Articles 449 and 450 of the Civil Code: Art. 449. He who
builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown
without right of indemnity. Art. 450. The owner of the land on which anything has been built,
planted or sown in bad faith may demand the demolition of the work, or that the planting or
sowing be removed, in order to replace things in their former condition at the expense of the
person who built, planted or sowed; or he may compel the builder or planter to pay the price of
the land, and the sower the proper rent. Art. 451. In the cases of the two preceding articles, the
landowner is entitled to damages from the builder, planter or sower.
Same; Same; Same; Necessary Expenses; Pursuant to Article 452 of the Civil Code, a
builder in bad faith is entitled to recoup the necessary expenses incurred for the preservation of
the land.—Pursuant to Article 452 of the Civil Code, a builder in bad faith is entitled to recoup
the necessary expenses incurred for the preservation of the land. The CA correctly ruled that
respondents in this case are similarly entitled to this reimbursement. However, being builders in
bad faith, they do not have the right of retention over the premises.
PECSON V CA
Property; Ownership; Builder in Good Faith; Art. 448 of the Civil Code does not apply to
a case where the owner of the land is the builder, sower, or planter who then later loses
ownership of the land by sale or donation.—By its clear language, Article 448 refers to a land
whose ownership is claimed by two or more parties, one of whom has built some works, or sown
or planted something. The building, sowing or planting may have been made in good faith or in
bad faith. The rule on good faith laid down in Article 526 of the Civil Code shall be applied in
determining whether a builder, sower or planter had acted in good faith. Article 448 does not
apply to a case where the owner of the land is the builder, sower, or planter who then later loses
ownership of the land by sale or donation.
Same; Same; Same; The provision of Art. 448 on indemnity may be applied by analogy to a
case where one loses the ownership of the land on which he earlier built an apartment.—
Elsewise stated, where the true owner himself is the builder of works on his own land, the issue
of good faith or bad faith is entirely irrelevant. Thus in strict point of law, Article 448 is not
apposite to the case at bar. Nevertheless, we believe that the provision therein on indemnity may
be applied by analogy considering that the primary intent of Article 448 is to avoid a state of
forced co-ownership and that the parties, including the two courts below, in the main agree that
Articles 448 and 546 of the Civil Code are applicable and indemnity for the improvements may
be paid although they differ as to the basis of the indemnity.
GOOD FAITH
HEIRS OF MARIANO V CITY OF NAGA
Civil Law; Property; Builders in Bad Faith; Petitioners, as hereditary successors of the
registered owners of the subject property, have the right to appropriate what has been built on
the property, without any obligation to pay indemnity therefor, and the City has no right to a
refund of any improvement built therein.—The foregoing circumstances ineluctably show that
the City knew of a substantial flaw in its claim over the subject property. The proposed donation
was conditioned on the award of the construction contract to the Subdivision. By its Resolution
No. 89, the City accepted the proposal with all its conditions. Thus, the City could not have been
unaware that by awarding the same construction contract to Sabaria, it no longer had any cause
to continue occupying the subject property as the condition for the proposed donation had not
been satisfied. Accordingly, it should have vacated the subject property. However, it stayed on
and allowed Sabaria to undertake the construction. Furthermore, Macario’s September 17, 1959
and May 14, 1968 letters showed that Mayor Imperial had proposed that the Naga City
government would just buy the subject property from him and Gimenez. Said letters also
indicated that Macario had long been waiting for the City to act on this proposal but the latter
had not taken any action. The City, in the meantime, continued to enjoy possession of the subject
property and subsequently allowed other government agencies to build their offices in the
premises.
The proposal, however, was never brought to fruition by the City. It cannot, thus, be said that the
City was of an honest belief that it had a valid right to the subject property or that its actions had
not overreached the landowners. Accordingly, it cannot be considered to have acted in good
faith. Articles 449 and 450 of the Civil Code provide: Art. 449. He who builds, plants or sows in
bad faith on the land of another, loses what is built, planted or sown without right of indemnity.
Art. 450. The owner of the land on which anything has been built, planted or sown in bad faith
may demand the demolition of the work, or that the planting or sowing be removed, in order to
replace things in their former condition at the expense of the person who built, planted or sowed;
or he may compel the builder or planter to pay the price of the land, and the sower the proper
rent. Thus, petitioners, as hereditary successors of the registered owners of the subject property,
have the right to appropriate what has been built on the property, without any obligation to pay
indemnity therefor, and the City has no right to a refund of any improvement built therein.
Same; Same; Same; The rightful possessor in an unlawful detainer case is entitled to the
return of the property and to recover damages, which refer to “rents” or “the reasonable
compensation for the use and occupation of the premises,” or the “fair rental value of the
property” and attorney’s fees and costs.—The rightful possessor in an unlawful detainer case is
entitled to the return of the property and to recover damages, which refer to “rents” or “the
reasonable compensation for the use and occupation of the premises,” or the “fair rental value of
the property” and attorney’s fees and costs. More specifically, recoverable damages are “those
which the plaintiff could have sustained as a mere possessor, or those caused by the loss of the
use and occupation of the property.”
LEVISTE MNGMT SYS INC. V LEGASPI TOWERS
Civil Law; Accession; Builders in Good Faith; It is recognized in jurisprudence that, as a
general rule, Article 448 on builders in good faith does not apply where there is a contractual
relation between the parties.—It is recognized in jurisprudence that, as a general rule, Article
448 on builders in good faith does not apply where there is a contractual relation between the
parties. Morever, in several cases, this Court has explained that the raison d’être for Article 448
of the Civil Code is to prevent the impracticability of creating a state of forced co-ownership:
The rule that the choice under Article 448 of the Civil Code belongs to the owner of the land is in
accord with the principle of accession, i.e., that the accessory follows the principal and not the
other way around. Even as the option lies with the landowner, the grant to him, nevertheless, is
preclusive. The landowner cannot refuse to exercise either option and compel instead the owner
of the building to remove it from the land. The raison d’être for this provision has been
enunciated thus: Where the builder, planter or sower has acted in good faith, a conflict of rights
arises between the owners, and it becomes necessary to protect the owner of the improvements
without causing injustice to the owner of the land. In view of the impracticability of creating a
state of forced co-ownership, the law has provided a just solution by giving the owner of the land
the option to acquire the improvements after payment of the proper indemnity, or to oblige the
builder or planter to pay for the land and the sower the proper rent. He cannot refuse to exercise
either option. It is the owner of the land who is authorized to exercise the option, because his
right is older, and because, by the principle of accession, he is entitled to the ownership of the
accessory thing.
Same; Same; Same; Articles 448 and 546 of the Civil Code on builders in good faith are
therefore inapplicable in cases covered by the Condominium Act where the owner of the
land and the builder are already bound by specific legislation on the subject property (the
Condominium Act), and by contract (the Master Deed and the Bylaws of the condominium
corporation).—In the case at bar, however, the land belongs to a condominium corporation,
wherein the builder, as a unit owner, is considered a stockholder or member in accordance with
Section 10 of the Condominium Act, which provides: SECTION 10. Whenever the common
areas in a condominium project are held by a condominium corporation, such corporation shall
constitute the management body of the project. The corporate purposes of such a corporation
shall be limited to the holding of the common areas, either in ownership or any other interest in
real property recognized by law, to the management of the project, and to such other purposes as
may be necessary, incidental or convenient to the accomplishment of said purposes. The articles
of incorporation or bylaws of the corporation shall not contain any provision contrary to or
inconsistent with the provisions of this Act, the enabling or master deed, or the declaration of
restrictions of the project. Membership in a condominium corporation, regardless of whether it is
a stock or non-stock corporation, shall not be transferable separately from the condominium unit
of which it is an appurtenance. When a member or stockholder ceases to own a unit in the project
in which the condominium corporation owns or holds the common areas, he shall automatically
cease to be a member or stockholder of the condominium corporation. The builder is therefore
already in a co-ownership with other unit owners as members or stockholders of the
condominium corporation, whose legal relationship is governed by a special law, the
Condominium Act. It is a basic tenet in statutory construction that between a general law and a
special law, the special law prevails. Generalia specialibus non derogant. The provisions of the
Civil Code, a general law, should therefore give way to the Condominium Act, a special law,
with regard to properties recorded in accordance with Section 4 of said Act. Special laws cover
distinct situations, such as the necessary co-ownership between unit owners in condominiums
and the need to preserve the structural integrity of condominium buildings; and these special
situations deserve, for practicality, a separate set of rules. Articles 448 and 546 of the Civil Code
on builders in good faith are therefore inapplicable in cases covered by the Condominium Act
where the owner of the land and the builder are already bound by specific legislation on the
subject property (the Condominium Act), and by contract (the Master Deed and the Bylaws of
the condominium corporation). This Court has ruled that upon acquisition of a condominium
unit, the purchaser not only affixes his conformity to the sale; he also binds himself to a contract
with other unit owners.
QUIETING OF TITLE
INC V PONFERRADA
Civil Law; Property; Quieting of Titles; In an action for quieting of title, the complainant is
seeking for “an adjudication that a claim of title or interest in property adverse to the claimant
is invalid, to free him from the danger of hostile claim, and to remove a cloud upon or quiet title
to land where stale or unenforceable claims or demands exist.”—In an action for quieting of
title, the complainant is seeking for “an adjudication that a claim of title or interest in property
adverse to the claimant is invalid, to free him from the danger of hostile claim, and to remove a
cloud upon or quiet title to land where stale or unenforceable claims or demands exist.” Under
Articles 476 and 477 of the Civil Code, the two indispensable requisites in an action to quiet title
are: (1) that the plaintiff has a legal or equitable title to or interest in the real property subject of
the action; and (2) that there is a cloud on his title by reason of any instrument, record, deed,
claim, encumbrance or proceeding, which must be shown to be in fact invalid or inoperative
despite its prima facie appearance of validity.
Civil Law; Quieting of Titles; In Baricuatro, Jr. v. Court of Appeals, 325 SCRA 137
(2000), an action for quieting of title is essentially a common law remedy grounded on equity.—
The action filed by Spouses Tappa was one for quieting of title and recovery of possession.
In Baricuatro, Jr. v. Court of Appeals, 325 SCRA 137 (2000), an action for quieting of title is
essentially a common law remedy grounded on equity, to wit: x x x Originating in equity
jurisprudence, its purpose is to secure “. . . an adjudication that a claim of title to or an interest in
property, adverse to that of the complainant, is invalid, so that the complainant and those
claiming under him may be forever afterward free from any danger of hostile claim.” In an
action for quieting of title, the competent court is tasked to determine the respective rights of the
complainant and other claimants, “. . . not only to place things in their proper place, to make the
one who has no rights to said immovable respect and not disturb the other, but also for
the benefit of both, so that he who has the right would see every cloud of doubt over the property
dissipated, and he could afterwards without fear introduce the improvements he may desire,
to use, and even to abuse the property as he deems best. x x x.” (Emphasis in the original) In our
jurisdiction, the remedy is governed by Articles 476 and 477 of the Civil Code, which state: Art.
476. Whenever there is a cloud on title to real property or any interest therein, by reason of any
instrument, record, claim, encumbrance or proceeding which is apparently valid or effective but
is in truth and in fact invalid, ineffective, voidable, or unenforceable, and may be prejudicial to
said title, an action may be brought to remove such cloud or to quiet the title. An action may also
be brought to prevent a cloud from being cast upon title to real property or any interest therein.
Art. 477. The plaintiff must have legal or equitable title to, or interest in the real property which
is the subject matter of the action. He need not be in possession of said property.
Same; Same; The rule that for an action to quiet title to prosper, two (2) indispensable requisites
must concur, namely: (1) the plaintiff or complainant has a legal or an equitable title to or
interest in the real property subject of the action; and (2) the deed, claim, encumbrance or
proceeding claimed to be casting cloud on his title must be shown to be in fact invalid or
inoperative despite its prima facie appearance.—For an action to quiet title to prosper, two
indispensable requisites must concur, namely: (1) the plaintiff or complainant has a legal or an
equitable title to or interest in the real property subject of the action; and (2) the deed, claim,
encumbrance or proceeding claimed to be casting cloud on his title must be shown to be in fact
invalid or inoperative despite its prima facie appearance of validity or legal efficacy.